ISLAMABAD
\nFinance Minister Muhammad Aurangzeb is unveiling the annual federal budget on Tuesday, expected to balance growth, austerity, and taxation, during a National Assembly session chaired by Speaker Sardar Ayaz Sadiq.
\nAs soon as the session began, opposition members started chanting anti-government slogans.
\nAt the beginning of his speech, the finance minister said: \u201cThis budget is being presented at a historic time when the nation showed unity [and] determination,\u201d he said, mentioning the recent Pak-India conflict.
\n\u201cThe spirit with which we protected our national sovereignty, we need to ensure our financial security in the same way,\u201d he stressed.
\nHe continued through the noisy session: \u201cPakistan has now achieved economic stability and is moving towards a Pakistan that is prosperous\u201d.
\nThe minister highlighted the current account surplus, remittances and the stability of the rupee while also mentioning the positive reports from international credit rating agencies Moody\u2019s and Fitch that upgraded Pakistan\u2019s rating.
\nThe federal budget for fiscal year 2026 has a total outlay \u2014 the sum of expenditures and net lending of funds \u2014 of Rs17.573 trillion, representing a 6.9 per cent decrease from the previous year\u2019s budget.
\nAurangzeb said that it was unavoidable to aim for a 14pc tax-to-GDP ratio and added that achieving the national targets was \u201cimpossible without the transformation of the Federal Board of Revenue (FBR).\u201d
\nThe government has set an ambitious tax collection target for the FBR at Rs14,131 billion, an 8.95pc increase from last year\u2019s goal.
\nDetailing that transformation, the minister listed B2B e-voicing, AI-based audit selection systems for sales and income tax, e-billing and faceless audits, and a new central control unit to centralise data collection, among other steps.
\nExpanding upon the results, he said 390,000 high-value non-filers of tax were identified through data integration, with Rs300m recovered. The minister further highlighted that there was a 100pc increase in the number of tax filers, taking the revenues to Rs105bn.
\n\u201cFor the first time, the IMF (International Monetary Fund) has acknowledged Rs389bn revenues through law enforcement,\u201d he said.
\nHe also took a jibe at those \u201cwho were raising alarm about a mini-budget\u201d, adding that no such move had been taken by the government.
\nThe finance czar said that there was a 31pc reduction in electricity prices, as well as 50pc reduction in prices for protected consumers.
\nMentioning the privatisation of distribution companies, he said: \u201cProfessional boards have been cleared of political corruption.\u201d
\nThe minister went on to announce that the government had made plans to \u201cprocure cheap energy\u201d. Noting the closure of costly power plants and reforms in the oil and gas sector, he said Turkish and other international companies were willing to invest in Pakistan.
\nHe mentioned the $5bn investment pledge by Reko Diq and pointed out fuel price deregulation aimed to promote competition.
\n\u201cGold mines in Reko Diq are a key part of our future. The plan\u2019s feasibility study was completed in January,\u201d he noted.
\n\u201cWe expect $71bn in cash flows [as well as] $7bn in tax and $8bn in royalties,\u201d he said, terming the project a \u201cgame changer\u201d.
\nRegarding the fiscal deficit, the government aims for a lower target of 3.9pc of the GDP \u2014 or Rs5,037bn \u2014 from last fiscal year\u2019s target of 5.9pc.
\nDetailing the steps to be taken under the National Tariff Policy, Aurangzeb said additional customs duties will come to an end in four years, regulatory duties will end in five years, Customs Act\u2019s Schedule 5 will also be eliminated in five years, and customs duty will be structured in slabs, with the maximum being 15pc.<\/p>\n
\u201cTariff reforms will be applied step by step so that businesses can adjust and challenges are reduced. This will apply to all economic areas, including pharma, IT, telecom, textile and engineering.\u201d
\nQuoting the World Bank, Aurangzeb informed the NA that these instruments would lower the tariffs, bringing them to the same level as Vietnam and Indonesia.
\nHe then spoke about improving debt management and said: \u201cOur economy has been stuck in debt for two decades, paying back loans. Our debt-to-GDP ratio was 74pc two years ago. But now, it is below 70pc. We will lower it further.
\n\u201cWe are diversifying debt products, the Sukuk bond has been started and launching products is being considered.\u201d
\nThe minister stressed that reforms in loss-making state-owned enterprises were underway, along with steps being taken to reduce fiscal strain and invite investment.
\n\u201cWe will complete PIA (Pakistan International Airlines) and Roosevelt Hotel transactions this year,\u201d he asserted.
\nOn pension reforms, the minister highlighted that the increase in pensions had been \u201clinked\u201d to the Consumer Price Index (CPI).
\nPointing out that Pakistan was one of the most vulnerable countries to climate change, the minister underscored the need for foreign assistance in mitigation, noting the IMF\u2019s $1.3bn climate fund.
\nOn social protection, the minister reaffirmed the government\u2019s commitment to helping the underprivileged, stating that Benazir Income Support Programme helped over 11m children go to school.
\nHe added that 1.5m pregnant mothers and children were given funds, while 250,000 were granted training on financial literacy.
\nSpeaking about the digital sector, Aurangzeb noted that Pakistan\u2019s cybersecurity ranking was rising. \u201cThere has been Rs3.1bn in IT exports in the year\u2019s 10 months, which is 21.2pc more than the previous year,\u201d he said.
\nThe minister proposed raising IT exports to $25bn in the next five years.
\nAurangzeb informed the parliament that the Small and Medium Enterprise Development Authority had launched a three-year plan for financing small and medium enterprises.
\nHe said that under the SME risk coverage scheme, 95,000 SMEs had received Rs300bn in funding till May 2025.
\nThe finance minister mentioned that the government\u2019s planned scheme would allow the purchase of cheap houses.
\nOn the topic of overseas Pakistanis, he noted $31.2bn were remitted to Pakistan, recording a 31pc increase of $10bn.
\nHe affirmed that the government was taking steps for overseas Pakistanis, including an online system, civil procedure laws to prevent fraud, a quota in chartered medical schools, and civil awards for the top 15 senders.
\nSpeaking about the agricultural sector, which comprises 34pc of the economy, Aurangzeb said Rs2.64bn were earned in FY24-25, adding that the National Seed Policy 2025 and the National Agri Technology Policy 2025 had been \u201cnearly approved\u201d.
\nAnnouncing the government\u2019s plan to create a \u201ccompetitive economy\u201d, Aurangzeb said that economic growth in the upcoming fiscal year was expected to remain 4.2pc.
\nThe budget deficit is aimed at 3.9pc of the GDP, while the primary surplus would be 2.4pc of the GDP.
\nThe government aims to collect Rs1.413tr in FBR revenues, which would be 18.5pc higher than the outgoing year.
\nHe further said the provinces\u2019 share in the federal revenues would be Rs8.246tr.
\nThe minister also praised the Strategic Investment and Facilitation Council (SIFC) for taking forward \u201cstrategic brownfield and greenfield projects\u201d.
\n\u201cInterprovincial and interfederal connection improved,\u201d he added.
\nReferring again to the recent Pakistan-India conflict, Aurangzeb stressed the need for the country to increase its water reservoirs and ensure water security.
\nUnder the 2018 National Water Policy, he mentioned the goals of 10m-acre increase in water storage, 35pc reduction in water waste and 30pc increase in water-use efficiency.
\nHe detailed that Rs133bn would be allocated for projects, Rs34bn for investment and Rs2bn for 15 key schemes, detailing the breakdown for various dams.
\nRegarding the energy sector, the minister said that the government needed to ensure the provision of cheap energy.
\nHe said that 47 schemes and Rs90.2bn were allocated to the energy sector, including Rs840m for the Tarbela 5th Extension, Rs10.9bn for the Dasu hydel project, Rs3.5bn for the 884MW Suki-Kinari Hydropower Project, and Rs35.7bn for the Momand hydel dam.
\nThe allocations for other power projects included Rs4.4bn for the Allama Iqbal Industrial City grid station, Rs1.1bn for the Quaid-i-Azam Business Park, Rs1.6bn for the 100KVA and 200KVA transformers asset performance management system, Rs2.9bn for the Islamabad Electric Supply Company (IESCO) advanced metering infrastructure, Rs1.8bn for the Multan Electric Power Company (MEPCO) getting, Rs1.9bn for the Hyderabad getting, Rs2.4bn for the Peshawar getting, Rs67.2bn for the Water and Power Development Authority (Wapda) clean electricity scheme, Rs3bn for five energy schemes of Azad Jammu and Kashmir and Gilgit Baltistan, and 1.2bn for GB grids.
\nHe also mentioned the Matiari-Moro-Rahim Yar Khan Transmission Line project to strengthen transmission.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Finance Minister Muhammad Aurangzeb is unveiling the annual federal budget on Tuesday, expected to balance growth, austerity, and taxation, during a National Assembly session chaired by Speaker Sardar Ayaz Sadiq. As soon as the session began, opposition members started chanting anti-government slogans. At the beginning of his speech, the finance minister said: \u201cThis budget …<\/p>\n","protected":false},"author":4,"featured_media":82241,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[75],"tags":[],"class_list":["post-82229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=82229"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82229\/revisions"}],"predecessor-version":[{"id":82249,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/82229\/revisions\/82249"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/82241"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=82229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=82229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=82229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}