ISLAMABAD, JUN 10: Minister for Finance and Revenue Muhammad Aurangzeb is presenting the federal budget for the upcoming fiscal year 2025–26 in the National Assembly today.
The budget session is being held under the chairmanship of NA Speaker Ayaz Sadiq.
Aurangzeb 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.
Speaking on the NA floor, the finance minister said the federal budget being presented at an “extremely important and historic moment,” while praising national unity during recent tensions with India.
“This budget comes at a pivotal time for our nation’s future,” he said, commending the country’s military and political leadership for their “successful handling of recent war-like situation” with India.
“The entire nation demonstrated remarkable unity during the recent Pakistan-India conflict,” Aurangzeb said, extending congratulations to both military and civilian leadership for their “victorious response.”
He noted that Pakistan’s prestige has risen in the international community, while emphasising the government’s renewed focus on economic development through national unity and determination.
The minister highlighted that economic stability has been achieved through structural reforms, noting, “several measures have been implemented to improve the economy.” He credited recent policy actions for bringing “economic stabilisation through reform measures”.
Referring to the recent economic situation, Aurangzeb noted that inflation has come down significantly, while remittances were $36 billion in 10 months.
“Those who were beating the drums about a mini-budget… no mini-budget has come, nor have any additional taxes been imposed,” he added.
‘Achievements under PM Shehbaz’
FBR reforms
Recalling the achievements of Prime Minister Shehbaz-led government, he pointed out reforms in the Federal Board of Revenue (FBR), saying that Pakistan’s tax-to-GDP ratio was only 10%. “It was imperative to increase the ratio to 14%,” he said, adding that achieving the national targets was “impossible without the FBR’s transformation.”
Detailing the transformation, he listed the initiation of digital integration in Pakistan’s economy and tax system, digital production tracking, B2B e-invoicing, AI-based audit selection systems for sales and income tax, e-billing and faceless audits, and a new central control unit to centralise data collection.
Energy reforms
Aurangzeb said the government reduced the electricity rate by up to 31% for industrial sector, renewed agreements with indepedent power producers (IPPs), closed down power plants based on furnace fuel with capacity of 3,000 MW, reorganised the National Grid Company of Pakistan, among other steps.
The minister revealed that the Reko Diq copper and gold mines represent a vital asset for Pakistan’s future, with an expected mining duration of 37 years. The project is projected to generate $75 billion for the national economy, he added.
He further said that infrastructure development linking Port Qasim to Gwadar via road and rail networks is already underway.
Tariff reforms
The minister said under the Comprehensive Tariff Reforms Package, custom duties will be eliminated within four years, regulatory duties will be phased out over five years and Fifth Schedule of the Customs Act 1969 will be abolished within five years.
“Reforms aim to enhance Pakistan’s export competitiveness through streamlined tariff structures,” he added.
