Federal Finance Minister Muhammad Aurangzeb on Wednesday presented the Rs17,573 billion budget for the fiscal year 2025-26 with the total outlay of Rs17,573 billion.
Starting his speech, the finance minister said he was honoured to present second budget for the incumbent government. He thanked Prime Minister Shehbaz Sharif, Bilawal Bhutto Zardari, Khalid Maqbool Siddiqui and others for their support in the budget.
He said the timing of the budget was historic as the whole nation was united against India during the recent tensions.
“This budget comes at a pivotal time for our nation’s future,” he mentioned, praising the nation’s military and political leaders for their “successful handling of war-like situation” with India.
Scenes of pandemonium were observed as soon as the budget session commenced as the opposition members started disrupting the speech of the finance minister.
He said the IMF has shown trust in the reforms undertaken by the incumbent government and those claiming about the minibudget have turned silent now.
As for the energy reforms, the government reduced the electricity prices for the industrial sector upto 31pc. The electricity prices were also reduced for the deserving 10.8 million people.
Earlier, the federal cabinet on Tuesday approved the budgetary proposals for the fiscal year 2025-26.
Chaired by Prime Minister Shehbaz Sharif, the special cabinet committee deliberated on the budget proposals and accorded its approval to the Finance Bill.
The cabinet meeting also okayed the budgetary proposals to be presented before the National Assembly for its onward consideration.
The government has already announced increase in salaries and pensions of its employees, and a likely tax relief for them. The current account deficit for the fiscal year 2025–26 is estimated to be -0.5% of the GDP.
For the upcoming fiscal year, the export target has been set at $35.3 billion, while the import target is set at $65.2 billion. The federal revenue for the next fiscal year is expected to reach up to Rs19.3 trillion.
The FBR’s tax collection target is proposed to be over Rs14 trillion. The target for economic growth has been set at 4.2%. The size of the Public Sector Development Programme (PSDP) is expected to be Rs1 trillion.
In the new budget, it is proposed to allocate Rs8.3 trillion to the provinces under the National Finance Commission (NFC) Award, and Rs2.55 trillion for defense. The budget deficit is estimated to be around Rs6 trillion. A sum of Rs8.5 trillion will be spent on interest payments on debt.
ECONOMIC SURVEY OF PAKISTAN UNVEILED
On Monday, Finance Minister Muhammad Aurangzeb unveiled the Economic Survey for the fiscal year 2024–25, a key pre-budget document that outlines the government’s assessment of the national economy.
Addressing a presser later, the finance minister said that the policy rate had been reduced significantly from 22% to 11%, a strong indicator of stabilizing economic conditions.
“We are moving towards stability,” the minister remarked, adding that he appreciates the constructive steps taken by the caretaker setup.
Discussing macroeconomic performance, the finance minister stated that Pakistan’s GDP growth in the current fiscal year reached 2.7%, a significant rebound from 2023, when the country experienced negative growth.
The finance minister stated that Pakistan experienced a significant increase in the foreign exchange reserves during the current fiscal year, while also implementing crucial structural reforms aimed at transforming the economy’s DNA.
Giving proposals on federal budget for 2025-26, Economic Policy Think Tank Chairman and former commerce minister Dr Gohar Ejaz has said industry should be the top priority, stressing permanent five-year industry and export policy.
In his tweet on the budget proposals, Dr Gohar Ijaz wrote that an interest rate of 6 percent and energy rates of 9 cents per unit for industry are very important.
The maximum tax rate for salaried individuals should be limited to 20 percent.
He said that the super tax should only be applied to corporations whose profits exceed Rs10 billion.
The former federal commerce minister said that the withholding tax on tax filer property buyers discourages homeowners and it should be withdrawn.
It is important to modernise agriculture and ensure productivity, the former finance said.
Source: Dunya News
