The National Assembly completed the approval process for demands for grants related to ministries, divisions, and federal departments on Wednesday, approving a total of Rs9,951.22 billion for 33 federal ministries and divisions.
The session, chaired by Speaker Sardar Ayaz Sadiq, saw the rejection of over 750 cut motions moved by the opposition.
The assembly approved 14 demands for grants totaling Rs3.55 trillion for the Finance Division to meet various expenditures for the fiscal year ending June 30, 2026.
The House also approved Rs356.8 billion for the Interior Ministry, Rs34.05 billion for the Ministry of National Food Security and Research, and Rs1.74 billion for the Ministry of Human Rights.
In total, 14 grant demands were related to the Finance Ministry, six to the Interior Ministry, three to the Ministry of National Food Security and Research, and five to the Ministry of Human Rights.Â
Finance Minister Senator Muhammad Aurangzeb, while concluding the debate, pointed to independent data validated by global rating agencies, showing a significant rise in consumer confidence, reaching its highest level since 2022. He stressed that Pakistan’s macroeconomic situation was improving, citing declining inflation, lower policy rates, increased foreign exchange reserves, and currency stability.
Aurangzeb also projected that the country’s tax-to-GDP ratio would rise to 10.4% by the end of the fiscal year, up from 8.8% last year. Despite widespread speculation about a potential debt crisis, he said recent economic indicators demonstrated resilience.
Regarding federal expenditure, Aurangzeb noted an expected increase of less than 2%, a stark contrast to the previous years’ growth rates of 10-13%, due to lower debt servicing costs and reduced policy rates.
On cost-cutting measures, the minister emphasized that the government is committed to reducing expenditures, stating, “Gone are the days when the prime minister used to come and go from the office in a helicopter.”
He also outlined major reforms underway at the Federal Board of Revenue (FBR), aimed at improving transparency and minimising human intervention in tax collection.
On the tax policy for the former FATA region, Aurangzeb clarified that income tax exemptions remain in place, while sales tax is being progressively implemented. He reassured that all relevant stakeholders were consulted in the decision-making process.
Aurangzeb further emphasised the alignment of development priorities under the Public Sector Development Programme (PSDP), noting that the federal PSDP stands at Rs1 trillion, with combined provincial Annual Development Plans (ADPs) exceeding Rs4 trillion.
