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ISLAMABAD: In a significant shift under the Federal Budget 2025-26, the government has revised the eligibility criteria for buying cars and property, softening its earlier stance that restricted high-value purchases by individuals with insufficient declared assets.
Previously, the government had proposed a blanket ban on economic transactions—such as purchasing vehicles, plots, or investing in securities—by individuals whose declared assets did not justify such expenditures. However, widespread public concern led to a policy shift in the finalized version of the budget.
Under the revised rules, the ineligibility clause will no longer apply to vehicle purchases if the car’s value is up to Rs7 million, allowing more middle-class consumers to make such transactions without scrutiny over asset declarations.
For real estate, the updated eligibility criteria now state that the restriction will only apply to purchases of residential property exceeding Rs50 million and commercial plots exceeding Rs100 million. These thresholds aim to differentiate between everyday property transactions and high-value investments.
Additionally, the restriction on banking activity will only be enforced if an individual’s annual cash flow across all bank accounts exceeds Rs100 million, and for stock market investments, the ineligibility will only apply if cumulative investment surpasses Rs50 million in a fiscal year.
These changes in the Federal Budget 2025-26 reflect the government’s acknowledgment that its earlier policy disproportionately impacted economic activity. Authorities believe that Pakistan’s wealthiest 5% are more likely to evade taxes, while 95% of the population lacks the financial capacity for high-value investments. The revised criteria aim to encourage legitimate financial transactions while ensuring tax compliance among the affluent.
