Finance Minister Senator Muhammad Aurangzeb addressed the National Assembly on Tuesday to conclude discussions on the federal budget for the fiscal year 2025. In his speech, the finance minister emphasized that the budget is crafted around a domestically devised plan aimed at implementing reforms essential to improving Pakistan’s current economic conditions.
A key objective outlined by Aurangzeb is to enhance Pakistan’s tax-to-GDP ratio to 13%, signaling the government’s commitment to bolster revenue generation. He underscored the government’s plans for comprehensive reforms within state-owned enterprises (SOEs) and the energy sector, pivotal areas for economic stability and growth.
Regarding the Public Sector Development Programme (PSDP), Aurangzeb informed the assembly that Rs. 350 billion has been allocated from the total budget of Rs. 1,500 billion. Notably, 81% of the development budget is designated for projects currently in progress, indicating a focus on completing ongoing initiatives.
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The finance minister also highlighted the government’s efforts in combating inflation, pointing to reductions achieved thus far. He expressed the administration’s intent to ensure that the ongoing negotiations with the International Monetary Fund (IMF) lead to a conclusive program, indicating a strategic aim to stabilize Pakistan’s economic standing without further reliance on external assistance.
Aurangzeb additionally mentioned the government’s plans to mitigate the financial burden of pensions and streamline expenditures, aligning with broader fiscal discipline objectives. These measures are intended to foster economic resilience and sustainability, positioning Pakistan for improved fiscal health and development in the years ahead.
