ISLAMABAD – Federal Finance Minister Muhammad Aurangzeb on Friday presented the federal budget of over Rs18.77 trillion in the National Assembly, outlining major economic indicators, fiscal priorities, and relief measures for various sectors.
In his budget speech, the finance minister expressed gratitude to coalition partners and said it was an honour to present the government’s third budget. He said Pakistan’s success in “Bunyanum Marsoos” had marked a “bright chapter” in history, adding that the world now acknowledges Pakistan’s defence capabilities. He also stated that several countries are interested in acquiring Pakistan’s fighter aircraft.
Highlighting foreign relations, Aurangzeb referred to the Pakistan–Saudi Arabia defence agreement, saying it had further strengthened the brotherly ties between the two countries.
On the economic front, the minister said large-scale manufacturing recorded growth of 6.1 per cent, while the services sector grew by 4.1 per cent. He said the size of the economy had reached $452 billion, describing it as a milestone, and added that per capita income had increased from $1,751 to $1,901.
He said foreign exchange reserves had risen from $4 billion three years ago to over $17 billion, sufficient to cover around three months of imports. Remittances, he added, stood at $38 billion during the first 11 months of the current fiscal year and were expected to exceed $41 billion annually.
Aurangzeb said defence remained a top priority, with Rs3 trillion allocated for security needs, while Rs1.071 trillion had been earmarked for civil administration. He said the total current expenditure was estimated at Rs17.495 trillion.
He announced a 7 per cent increase in salaries and pensions of government employees and proposed a 10 per cent rise in the minimum wage. He also said the Benazir Income Support Programme (BISP) would receive Rs838 billion, a 17 per cent increase from last year.
For development, Rs3.675 trillion has been allocated under the national development programme, including Rs1 trillion federal and Rs2.224 trillion provincial development spending. Infrastructure projects, water schemes, energy initiatives, housing, IT exports, and industrial incentives were also highlighted in the budget speech.
The finance minister said FBR’s tax-to-GDP ratio had reached 10.3 per cent, while the fiscal deficit had reduced from 7.8 per cent of GDP in June 2023 to a projected 4 per cent by the end of the current fiscal year.
He further proposed tax relief measures for salaried individuals, reduction in withholding taxes on property transactions, and changes in super tax slabs, while maintaining levies on banks, oil and gas exploration companies, and fertiliser sectors.
The budget documents showed total federal expenditures at Rs18.771 trillion, including Rs8.054 trillion for debt servicing, Rs1.169 trillion for pensions, Rs3 trillion for defence, and Rs1.091 trillion for subsidies.
The federal development programme was set at Rs1.050 trillion, while FBR’s tax collection target was estimated at Rs15.264 trillion.
