Finance Minister Muhammad Aurangzeb has presented a federal budget worth over Rs18 trillion in the National Assembly. The budget outlines major spending priorities including defence, debt servicing, and development. The announcement came during a heated budget session in Islamabad. The proposals are expected to shape Pakistan’s economic direction for the coming fiscal year.
The finance minister thanked coalition partners and said it was an honour to present the third budget of the government. He highlighted economic progress, including improvements in manufacturing and services growth. Moreover, he said Pakistan’s economy has shown signs of stabilization in recent years. He also pointed to rising foreign exchange reserves and improved financial indicators.
Aurangzeb noted that defence remains a key priority, with Rs3 trillion allocated for security needs. He also highlighted Pakistan’s defence cooperation with Saudi Arabia. In addition, he discussed macroeconomic gains such as lower policy rates and improved remittances. Therefore, the government claims stronger financial stability compared to previous years.
According to budget documents, total federal expenditure is estimated at Rs18.77 trillion. A major share of Rs8.05 trillion is allocated for interest payments on debt. Furthermore, Rs1.05 trillion is set aside for development spending under the PSDP. Pension and subsidies also account for significant portions of the budget.
The budget also sets ambitious revenue targets, with FBR tax collection estimated at over Rs15 trillion. Officials expect continued fiscal reforms to reduce the deficit. Consequently, the government aims to bring the fiscal deficit down to around four percent. The budget will now face parliamentary debate and approval in the coming days.