Pakistan unveils Rs17.573 trillion growth-oriented federal budget

Pakistan Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday unveiled the Rs17.573 trillion growth-oriented federal budget for the fiscal year 2025-26.

- Tariq Butt/Agencies

Presenting the federal budget 2025-26 in the National Assembly, the Finance Minister highlighted that the budget for the upcoming fiscal year was the beginning of the strategy, especially chalked out to promote a competitive economy. “It will help increase foreign exchange reserves, reduce the fiscal payment imbalances, thus promoting the overall economic productivity,” he said. (Dhl=Rs76).

Defence budget was proposed to be increased by 20 per cent with the raise having been necessitated by a recent clash between Pakistan and India. Pakistan will slash overall federal expenditure for fiscal 2025-26 by a hefty 78 to Rs17.57 trillion and targets 4.2pc growth. Certain excessive taxes and duties were cut down on the real estate sector. The budget allocated Rs2.55 trillion to defence, up from Rs 2.12 trillion compared to the last year.

The minister said the government has fixed the annual economic growth target at 4.2% while the inflation rate will remain 7.5% allocated Rs2.55tr for defence, up from Rs 2.12tr compared to last year

Similarly, he said the fiscal deficit is expected to remain at 3.9% of the GDP, while the primary surplus is expected to remain 2.4% of GDP.