Finance Minister Aurangzeb presents FY2026-27 budget amid opposition protest in National Assembly

ISLAMABAD: Minister for Finance and Revenue Muhammad Aurangzeb on Friday presented the federal budget for FY2026-27 in the National Assembly amid noisy protests by opposition lawmakers and uncertainty linked to the ongoing conflict in the Middle East.

The budget was presented shortly after Prime Minister Shehbaz Sharif approved the proposals during a special meeting of the federal cabinet at Parliament House.

At the start of the session, National Assembly Speaker Ayaz Sadiq asked the finance minister to present the budget as PTI lawmakers staged a protest and chanted slogans.

The session witnessed noisy scenes, with opposition members carrying placards and posters, while treasury lawmakers welcomed Prime Minister Shehbaz Sharif by thumping desks.

Turning to the economy, Aurangzeb said large-scale manufacturing recorded growth of 6.1% during the ongoing fiscal year, while the services sector expanded by 4.1%.

He said Pakistan’s economy had reached $452 billion, describing it as a new milestone, while per capita income increased from $1,751 to $1,901.

The finance minister said the Iran-US conflict had pushed up global oil prices, creating pressure on household budgets. He said prices would have been much higher if the government had passed the full impact of the shock on to consumers.

Aurangzeb said the policy rate had recorded a significant reduction over the past two years as part of broader economic stabilisation efforts.

He told the National Assembly that foreign exchange reserves, which stood at $4 billion three years ago, had risen to more than $17 billion and were now sufficient to cover three months of imports.

The finance minister also highlighted remittance inflows, saying overseas Pakistanis had sent $38 billion in the previous fiscal year. He said remittances had already reached $38 billion during the first 11 months of the current fiscal year and were expected to exceed $41 billion by year-end.

PM says budget prioritises public welfare

According to the Prime Minister’s Office, the premier signed the budget documents after the cabinet’s approval and said the budget had been prepared with “great diligence and sincerity”, with the welfare and prosperity of the people given priority.

Shehbaz Sharif said taxes had to be imposed to stabilise economic distortions that had accumulated over many years and to create room for national development.

He acknowledged that taxation measures would place additional burdens on citizens and thanked the people of Pakistan for enduring inflation with patience. He noted that inflation had fallen from a peak of 38%, while the policy rate had declined from 22.5% to 11%, although recent regional tensions had complicated efforts to reduce borrowing costs further.

“Our main economic indicators are in front of you,” the prime minister said, adding that despite multiple challenges, the economy had stabilised and was expected to accelerate after the implementation of the government’s third budget.

The premier stressed that economic development required a strong security framework and called for the rapid construction of dams and water reservoirs, as well as greater investment in indigenous energy resources, including solar power and battery storage.

Shehbaz Sharif also thanked coalition partners, including the Pakistan Peoples Party (PPP), Muttahida Qaumi Movement (MQM), Istehkam-e-Pakistan Party (IPP), Balochistan Awami Party (BAP), Pakistan Muslim League (Q) (PML-Q) and Pakistan Muslim League (N) (PML-N), for supporting the government’s economic agenda.

He said the federal government had held extensive consultations with Punjab, Sindh, Balochistan and Khyber Pakhtunkhwa over the past six weeks regarding the federation’s financial requirements.

Referring to the recent National Economic Council meeting, Shehbaz Sharif said all four provinces had unanimously approved the national development plan, describing the consensus as an example of national unity and economic coordination.

Separately, the prime minister held a telephone conversation with Nawaz Sharif and briefed him on the budget proposals. According to officials, the PML-N president directed the government to provide maximum possible relief to the public and emphasised the need to contain inflation.

Shehbaz Sharif also met an MQM delegation led by MQM Convener and Federal Minister for Education and Professional Training Khalid Maqbool Siddiqui. The delegation included Federal Minister for National Health Services Syed Mustafa Kamal and MNAs R. Javed Hanif, Farooq Sattar and Aminul Haque.

Senior cabinet members, including Planning Minister Ahsan Iqbal, Law Minister Azam Nazeer Tarar, Economic Affairs Minister Ahad Khan Cheema, Information Minister Attaullah Tarar and Adviser to the Prime Minister Rana Sanaullah, also attended the meeting.

According to the Prime Minister’s Office, discussions focused on the upcoming federal budget and the country’s political and economic situation, with the government reaffirming its commitment to continued cooperation with MQM in the national interest.