ISLAMABAD: Pakistan has set a growth target of 4.2 percent for the fiscal year 2025–26, up from an estimated 2.7 percent in the outgoing fiscal year, as the government aims to stabilise the economy and meet key benchmarks set by the International Monetary Fund (IMF).
Finance Minister Muhammad Aurangzeb made the announcement during his budget speech in the National Assembly on Tuesday.
The Finance Minister said, “for a competitive economy” the country is targeting a modest 4.2 percent growth for the coming fiscal year, compared to 2.7 percent expected in the outgoing FY25.
The budget was announced with a total outlay of Rs17.6 trillion, down 7% or Rs1.3 trillion as compared to the Rs18.9 trillion budgeted outlay of FY25.
“We are focused on economic stability and prosperity. We want an economy which is equitable and sustainable,” said Aurangzeb in his speech.
Talking about the outgoing fiscal year, the minister said that the country achieved a surplus of around 2.4 percent of the GDP in FY25, whereas the Consumer Price Index (CPI) rate declined to 4.7 percent.
“We expect a current account surplus of around $1.5 billion this fiscal,” he said, adding that remittance inflows are expected to hit $37-38 billion in FY25.
Aurangzeb, on taxation measures, said that from July onwards, the tax filing process will be simplified.
The finance minister presents the federal budget for the second time as the government seeks to revive the economy, meet the International Monetary Fund (IMF) benchmarks, and provide some relief to the tax-weary masses.
Of the total expenditure, Rs8.2 trillion has been allocated for mark-up payments, accounting for 47 percent of the total government expenditure.
