Finance Minister Muhammad Aurangzeb revealed that the government is preparing a strategic budget for 2025–26 to shift Pakistan’s economic direction, not just balance numbers. Addressing an event in Islamabad, he emphasized bold measures to address long-term structural challenges.
Focus on Economic Transformation
Aurangzeb said the country’s economic “DNA” must change. The upcoming budget, he noted, will provide strategic direction to guide Pakistan’s economy forward. “It’s not just about revenue and expenditure anymore,” he stated. “We’re making a document that sets the course for reform and resilience.”
Budget Announcement Delayed
Pakistan’s high-level budget talks with the International Monetary Fund (IMF), which began on May 19, remain inconclusive. As a result, the government has pushed the federal budget announcement to June 10. The discussions are key to shaping fiscal strategy under the IMF’s ongoing guidance.
Read: Pakistan Open to Talks with India for Regional Peace: PM Shehbaz
Debt Management Overhaul
Aurangzeb reported that debt servicing costs dropped by Rs1 trillion. He shared plans to modernize Pakistan’s debt management office next year, aligning it with global standards. This move aims to improve fiscal efficiency and reduce reliance on external borrowing.
Imports and Boom-Bust Cycles
Highlighting Pakistan’s dependence on imports, Aurangzeb said it leads to foreign exchange shortages and repeated balance-of-payments crises. “This is why we’re in our 24th IMF programme,” he said, warning against continuing the cycle of economic instability.
Tax Reform and Digitalisation
The finance minister reaffirmed the government’s commitment to structural reforms, especially in tax administration. Plans include strengthening the Federal Board of Revenue (FBR) through digital tools and updating people, processes, and technology. He stressed widening the tax base to reduce the burden on current taxpayers.
Public Sector Adjustments
Aurangzeb explained that public sector reforms, including downsizing the federal government, will be introduced gradually. “We’re taking a phased approach, not a big bang,” he said.
Last year’s Rs18.9 trillion budget focused on IMF-aligned goals. The government now aims to craft a forward-looking fiscal roadmap—one rooted in strategy, not short-term fixes.
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