Overview
Pakistan’s Finance Minister Muhammad Aurangzeb presented Pakistan’s Federal Budget for FY2025–26, amounting to Rs. 17.57 trillion on June 10, 2025, which was approved by the National Assembly on June 26, 2025, after a clause-by-clause review led by Speaker Ayaz Sadiq. Despite opposition calls for broader public consultation, the Finance Bill was passed with minor amendments, reflecting the government’s resolve to press ahead with reforms. President Asif Ali Zardari later signed it into law on June 30, 2025, cementing its immediate implementation.[1]
The budget reflects the government’s attempt to balance fiscal consolidation with the need for social protection and economic revival. At its core, the budget targets GDP growth of 4.2%, seeks to curb inflation to 7.5%, and aims to reduce the fiscal deficit to 3.9% of GDP. A primary surplus of 2.4% has been projected for the third consecutive year, underscoring a focus on fiscal discipline. Non-tax revenues are projected at Rs. 5.1 trillion, supported by privatisation and levies, while overall expenditure is capped at Rs. 17.57 trillion. Defence spending has been set at Rs. 2.55 trillion, constituting 14.5% of the total outlay, while debt servicing will consume nearly half the federal budget. Though 6.9% smaller than the previous year’s budget, the emphasis lies on efficiency, streamlining, and sustainability.[2]
