Finance Bill 2025 Grants Tax Exemptions to 50+ Entities (Complete List)

ISLAMABAD: The Finance Bill 2025–26, recently approved by Parliament and now awaiting the signature of President Asif Ali Zardari, introduces more than 50 tax exemptions.

This marks a significant shift from earlier tax credit provisions to full tax waivers for a range of government, charitable, and development organizations.

These exemptions cover:

• Pensions for a former president and his widow
• Government entities, including SBP, WAPDA, FBR Foundation, and PCSIR
• Charity and disaster relief funds, such as the Prime Minister’s COVID-19 Relief Fund-2020 and the PM Special Fund for Terror Victims
• Developmental and educational organizations, like NEST, BEEF, AKDN institutions, and Karandaaz Pakistan
• International and Islamic financial bodies, including IFC, AIIB, ADB, and OIC-affiliated groups
• Military welfare foundations, such as Fauji Foundation, Army Welfare Trust, and Army Officers Benevolent Fund (including Olympic medal awards)

These exemptions are intended to strengthen efforts in charity, education, disaster relief, infrastructure, and rural development, while maintaining fiscal oversight.

List of 50+ Tax-Exempt Entities in Finance Bill 2025–26

#	Exempt Entity
1	Former President’s Pension
2	Former President’s Widow’s Pension
3	State Bank of Pakistan
4	SBP Banking Services Corporation
5	FBR Foundation
6	Pakistan Council of Scientific and Industrial Research (PCSIR)
7	WAPDA
8	Corporatized entities of WAPDA
9	Pakistan Agricultural Research Council
10	Prime Minister’s Special Fund for Terror Victims
11	CM (Punjab) Relief Fund for IDPs of NWFP
12	National Disaster Risk Management Fund
13	Supreme Court – Diamer Bhasha & Mohmand Dams Fund
14	Prime Minister’s COVID‑19 Pandemic Relief Fund‑2020
15	National Endowment Scholarship for Talent (NEST)
16	Securities & Exchange Commission of Pakistan
17	Privatisation Commission of Pakistan
18	Audit Oversight Board
19	SC Water Conservation Account
20	Balochistan Education Endowment Fund (BEEF)
21	Fauji Foundation
22	Army Welfare Trust
23	Public Private Partnership Authority
24	Shaheed Mohtarma Benazir Bhutto Institute of Trauma, Karachi
25	National Memorial Bab-e-Pakistan Trust
26	Pakistan Poverty Alleviation Fund
27	National Rural Support Programme
28	Karandaaz Pakistan (from TY 2015)
29	Institutions of the Aga Khan Development Network (Pakistan)
30	International Finance Corporation (IFC)
31	Asian Infrastructure Investment Bank (AIIB)
32	Saarc Energy Centre
33	Asian Development Bank (ADB)
34	International Islamic Trade Finance Corporation
35	Islamic Corporation for Development of Private Sector
36	ECO Trade and Development Bank
37	Islamic Chamber of Commerce & Industry (OIC)
38	Export‑Import Bank of Pakistan
39	Deposit Protection Corporation
40	WAPDA First Sukuk Company Ltd
41	Pakistan Domestic Sukuk Company Ltd
42	WAPDA Second Sukuk Company Ltd
43	Pakistan International Sukuk Company Ltd
44	Second Pakistan International Sukuk Co. Ltd
45	Third Pakistan International Sukuk Co. Ltd
46	Islamic Naya Pakistan Certificates Co. Ltd (INPCCL)
47	Pakistan Mortgage Refinance Company Ltd
48	Pakistan Global Sukuk Programme Company Ltd
49	Army Officers Benevolent Fund/Beneaved Family Scheme
50	Any Olympic medal monetary award to Pakistani sportspersons
51	PM’s Relief Fund for Floods, Earthquakes & Disasters

 

The tax exemption for the Army Officers Benevolent Fund also covers sums awarded to Pakistan’s Olympic medallists, effective from the tax year 2025.

Why It Matters?

• These exemptions accentuate the government’s commitment to development, welfare, education, and infrastructure sectors.
• They represent a policy shift from tax credits to comprehensive exemptions, simplifying financial support.
• The move is expected to boost charity, disaster relief, financial inclusion, and growth in crucial institutions, while ensuring fiscal discipline.