ISLAMABAD (PEN) : Finance Minister Muhammad Aurangzeb announced on Monday that the federal government plans to introduce “bold measures” in the upcoming budget for the fiscal year 2025-26, aiming to set a long-term strategic course for Pakistan’s economy.
Speaking at an event organized by Karandaaz Pakistan and the Pakistan Banks Association (PBA), Aurangzeb emphasized that the forthcoming budget is not merely a financial document but a tool for defining Pakistan’s economic trajectory.
“We are going to bring some bold measures during the budget for FY2025-26,” Aurangzeb stated. “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.”
Budget Date and Economic Survey
The federal budget for FY2025-26 is scheduled to be presented on *June 10, 2025, while the **Pakistan Economic Survey 2024-25* will be released a day earlier, on *June 9*.
Defence Spending and Regional Tensions
Amid recent escalations with India, Aurangzeb acknowledged a proposed *Rs2.8 trillion defence budget*, citing a “war-like situation” as justification.
“These are very tense moments. The entire nation has rightly celebrated the way our armed forces and political leadership have stood up against the aggression,” he remarked.
IMF Engagement and Structural Reform
Addressing concerns over Pakistan’s engagement with the International Monetary Fund (IMF), Aurangzeb revealed that efforts were made to obstruct discussions over key financial tranches.
“There was no stone left unturned in terms of ensuring that the meeting \[with the IMF] does not happen… However, we are beyond that, and our case was discussed and decided on merit,” he said.
He stressed the importance of national unity not only in defense matters but also in economic reform, calling for sustained commitment to structural changes.
“We have achieved macroeconomic stability in yesteryears… but we have squandered the opportunity,” Aurangzeb noted, warning against short-term, consumption-led growth that could trigger balance-of-payments crises.
Simplifying Tax Filing for Salaried Class
Aurangzeb announced a significant move to simplify tax return filing for salaried individuals, stating that most do not hold complex portfolios and are burdened by overly complicated forms.
“We are trying to bring it down to nine items—five on the wealth and four on the income tax side,” he said, targeting implementation by *September*.
State-Owned Enterprises and PIA Transaction
The finance minister admitted shortcomings in state-owned enterprise (SOE) reforms, especially in the past year, but reiterated the government’s commitment to progress.
“This is one area where we did not do well last year,” he conceded, adding that the *Pakistan International Airlines (PIA)* privatization process had been relaunched with hopes for a successful outcome.
Debt Management and Fiscal Outlook
Aurangzeb highlighted that *debt servicing costs have decreased by Rs1 trillion* in the current fiscal year. He said the government plans to modernize its *Debt Management Office* in the next financial cycle.
Looking ahead, he stressed that continued reform would place Pakistan on a sustainable growth path.
Vision 2047: Addressing Population and Climate
Pakistan’s economy has surpassed *\$400 billion, but Aurangzeb cautioned that achieving the target of a *\$3 trillion economy by 2047** depends on managing two critical challenges: population growth and climate change.
“Four out of the six points under the 10-year Country Partnership Framework signed with the World Bank deal with climate and population,” he added.
