Islamabad, June 10, 2025 — Economic Stability: Pakistan’s newly ratified federal budget for FY2026 champions economic durability, with the Federal Cabinet rolling out essential overhauls to fortify financial momentum. The approval of a 6% pay raise for public sector staff and a 7% pension increment reflects this forward-moving approach. Furthermore, Finance Minister Muhammad Aurangzeb has formally submitted the Finance Bill to the National Assembly for final consent.
Driving Fiscal Advancement with Structural Overhauls
To launch the fiscal year with renewed energy, Finance Minister Aurangzeb spotlighted the significance of collective determination and national growth. Building on gains from the country’s recent stabilization, he encouraged citizens to rally behind a shared vision of durable affluence.
Importantly, promising metrics—including a current account surplus, enhanced foreign remittances, a steady rupee, and credit rating boosts from Moody’s and Fitch—underscore mounting external trust.
In pursuit of a 14% tax-to-GDP ratio, the government has assigned the Federal Board of Revenue (FBR) a revenue objective of Rs14,131 billion, marking an 8.95% climb from last year. To achieve this, the FBR will implement AI-powered audit selections, non-interactive inspections, and digital invoicing mechanisms to improve integrity and accuracy.
Stimulating Growth Through Strategic Sector Initiatives
Shifting to energy policy, authorities are focusing on affordable energy sourcing and foreign capital infusion, especially from Turkish investors. A highlight in this space, the Reko Diq mining initiative, anticipates $71 billion in future net returns, complemented by $7 billion in taxation and $8 billion in royalties from a $5 billion capital commitment.
In parallel, the agriculture sector, contributing 34% to the GDP, demonstrated resilience with Rs2.64 billion in earnings for FY24-25. To amplify productivity, the administration is finalizing two transformative blueprints: the National Seed Policy 2025 and the National Agri Technology Policy 2025, both designed to catalyze modernization and competitiveness.
Setting a Path Toward Sustainable Expansion And Economic Stability
Looking toward FY26, Pakistan estimates GDP growth at 4.2%, with agricultural output anticipated to rise by 4.5%. While inflation may rise to 7.7%, compared to 5.5% the prior year, the fiscal deficit is forecast to shrink to 3.9% of GDP (Rs5,037 billion), a notable improvement from 5.9%—highlighting the government’s careful stewardship.
Altogether, through the deployment of cutting-edge systems, revenue-enhancing strategies, and sector-targeted planning, the administration is crafting a comprehensive roadmap for long-term economic stability and inclusive advancement. With this cohesive effort, Pakistan is charting a clear course toward a secure, growth-driven tomorrow.
Also See : Federal Budget 2025-26: NA, Senate Sessions on June 10
