ISLAMABAD — Finance Minister Muhammad Aurangzeb on Monday announced that the federal government will introduce “bold measures” in the upcoming budget for FY2025–26, which he said will go beyond basic revenue and expenditure figures to lay out a long-term strategic vision for the economy.
“Budget is not just about revenue and expenditure, it has to provide the strategic direction of where the economy is, and where it is heading,” Aurangzeb said at an event organised by Karandaaz Pakistan and the Pakistan Banks Association (PBA) in Islamabad. The federal budget is due to be presented on June 10, 2025, with the Pakistan Economic Survey for FY2024–25 slated for release a day earlier.
Amid rising regional tensions, Aurangzeb also addressed the ongoing security situation, stating that “the entire nation has rightly celebrated the way our armed forces and political leadership have stood up against the aggression,” in reference to escalated hostilities with India.
He revealed that attempts were made to derail Pakistan’s engagement with the International Monetary Fund (IMF), including blocking discussions on the second tranche under the Extended Fund Facility and the $1.3 billion Resilience and Sustainability Facility. “However, we are beyond that, and our case was discussed and decided on merit,” he said.
The finance minister urged for similar national unity on the economic front. He warned against reverting to past mistakes of short-term, consumption-driven policies. “It is easy to get into a sugar rush… but that brings balance of payment and foreign exchange issues,” he noted, adding that structural reforms are essential to break the country’s boom-bust cycle.
On tax reforms, Aurangzeb said the government is working to simplify tax return filings for the salaried class. “Why should 70–80% of the salaried class, who don’t hold income portfolios, have to fill out 140–150 fields? We are bringing it down to just nine—five wealth, four income,” he said, with implementation expected by September.
Acknowledging shortcomings in state-owned enterprise (SOE) reforms, he said the government remains committed to accelerating progress in this area and confirmed the relaunch of the Pakistan International Airlines (PIA) privatisation process.
Aurangzeb added that debt servicing costs have fallen by Rs1 trillion in the current fiscal year, and said the government plans to restructure its debt management office along modern lines in the next fiscal.
Despite challenges, Aurangzeb remained optimistic about the country’s economic trajectory. He said Pakistan’s economy has crossed the $400 billion mark, but warned that to reach the $3 trillion milestone by 2047, the country must address its two biggest threats: unchecked population growth and climate change. He noted that four out of six priorities in the 10-year Country Partnership Framework with the World Bank target these two areas.
