ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has stated that the upcoming budget will include measures aimed at economic growth and public relief, but emphasized that meaningful change requires time and cannot be achieved overnight. Speaking to the media, he noted that under Prime Minister Shehbaz Sharif’s leadership, economic stability has been achieved, and the government intends to build on that progress.
Aurangzeb announced the federal budget for fiscal year 2025–26 will be presented in Parliament on Tuesday, June 10. He assured that the budget will include initiatives focused on providing relief to the poor, as well as steps to boost growth.
The finance minister also appreciated the role of the media during past crises, including during the Pakistan-India war, highlighting its importance in shaping public discourse. According to sources, the upcoming federal budget—prepared in consultation with the International Monetary Fund (IMF)—is estimated to be between Rs17.5 trillion and Rs18 trillion. It is expected to include a 10% increase in salaries and pensions for government employees, as well as a 30% disparity allowance for employees from grade 1 to 16. Relief in taxes for public sector workers is also under consideration.
The proposed budget also allocates Rs2,414 billion for defense spending and Rs1,065 billion for federal development projects. A special cabinet session chaired by the Prime Minister will review multiple proposals regarding salary and pension hikes, each with separate financial impact assessments.
Non-tax revenue is projected at Rs2,584 billion, while provinces are expected to contribute a surplus of Rs1,220 billion. The government also plans to secure over $25 billion in foreign loans during the next fiscal year. Around $12 billion of existing loans are expected to be rolled over from friendly countries including Saudi Arabia, China, and the UAE.
Debt servicing is projected to cost the government Rs8,685 billion in the next financial year. Additionally, there is a proposal to exempt the armed forces from the contributory pension scheme. The government’s coalition partners have also advised increasing salaries to provide relief amid inflationary pressures.
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