Islamabad: The government has announced the Federal Budget for 2025-26 with an ambitious outlay of 17,573 billion rupees, focusing on sustainable economic growth and structural reforms. Presented by Finance Minister Muhammad Aurangzeb in the National Assembly, the budget aims to enhance exports, bolster foreign reserves, and introduce significant economic changes.
The Finance Minister disclosed that net revenue receipts are projected at 11,072 billion rupees, with Federal Board of Revenue (FBR) collections estimated to increase by 18.7 percent to 14,131 billion rupees. Non-tax revenues are set at 5,147 billion rupees, while the budget deficit is anticipated to be 3.9 percent of GDP, with a primary surplus of 2.4 percent of GDP.
Defense spending remains a priority, with 2,550 billion rupees allocated. Civil administration expenditures are earmarked at 971 billion rupees, and pension expenditures at 1,055 billion rupees. Subsidies, particularly for electricity, are allocated 1,186 billion rupees.
The budget includes significant allocations for social welfare programs, with 716 billion rupees designated for the Benazir Income Support Programme (BISP). The Kafalat Programme will expand to assist 10 million families, and educational scholarships will be extended to benefit 12 million students.
A key focus is the National Development Plan, with 4,224 billion rupees allocated. This includes 1,000 billion rupees for the Public Sector Development Programme (PSDP), emphasizing infrastructure and high-impact projects. Major initiatives include road infrastructure, water reservoir projects, and advancements in space science and industrial development.
The budget outlines substantial investments in health and education, with 14.3 billion rupees allocated for key health projects and 39.5 billion rupees for higher education. Special allocations are made for Daanish Schools in underdeveloped areas.
Tax reforms are proposed to promote equality and reduce burdens on the salaried and corporate sectors. The budget introduces measures to enhance the tax base, encourage a cashless economy, and support the housing sector.
In his speech, the Finance Minister emphasized the government’s commitment to sustainable energy, allocating 90.2 billion rupees for energy development schemes, including hydropower projects.
Overall, the budget reflects a strategic approach to achieving sustainable growth, addressing structural constraints, and improving economic resilience.