BUDGET 2025-26: Amid cash crunch, Senate panel proposes tax cuts, salary hikes

As the government struggles to balance its revenue and expenses, the Senate Standing Committee on Finance and Revenue has recommended a 50 per cent increase in government employees’ salaries, raise in pensions, removal of import duties on solar panels and a significant cut in levies on small vehicles. The committee, chaired by Senator Saleem Mandviwalla, has put forward more than 200 recommendations, including 48 general proposals, 133 changes to the Finance Bill 2025 and 21 related to the Public Sector Development Programmes. The recommendations were presented in the upper house on Saturday and subsequently forwarded to the National Assembly for consideration. The recommendations only have an advisory value and the government is not bound to follow them.