Islamabad, May 27, 2025 – The upcoming federal budget will prioritize long-term economic transformation over short-term fiscal balancing, according to Finance Minister Muhammad Aurangzeb. In his latest address at a public event in Islamabad, the minister emphasized that the next federal budget will act as a strategic policy document designed to align with Pakistan’s long-term economic goals, rather than focusing solely on traditional revenue and expenditure targets.
Aurangzeb stated that the upcoming budget is being structured with a broader vision in mind, marking a shift away from conventional fiscal planning. Instead, it will place strong emphasis on sustainable economic reform, institutional restructuring, and macroeconomic resilience. The finance minister underscored the need for strategic planning that promotes consistency, investor confidence, and policy continuity.
Highlighting recent improvements in the economy, Aurangzeb noted that Pakistan’s economic output has now crossed the $400 billion mark—a key psychological and financial milestone for the country. This achievement, he said, reflects the beginning of a wider economic recovery that is gaining recognition from the international community. He credited the country’s macroeconomic stabilization efforts, despite numerous internal and external challenges, for this progress.
Aurangzeb further emphasized that the government remains fully committed to a comprehensive agenda of structural reforms. These reforms will be focused on several critical areas, including tax system modernization, energy sector improvements, restructuring of State-Owned Enterprises (SOEs), and rationalization of federal government expenditures. These efforts are designed to reduce fiscal deficits and promote efficient public sector management.
One of the major themes of the budget will be promoting export-led growth, which the finance minister described as essential for creating a robust and sustainable economic foundation. He indicated that the government is working on removing structural bottlenecks that hinder exports, particularly in the textile and IT sectors, which are considered high-potential areas for Pakistan’s future trade performance.
The government’s push for privatization will also be a significant component of the budgetary and policy framework. Aurangzeb reaffirmed the administration’s resolve to expedite the privatization process of underperforming SOEs. He noted that a faster privatization timeline will contribute to reducing the burden on the national exchequer while improving the efficiency of critical services and sectors.
In terms of governance reforms, the rationalization of federal departments is expected to play a role in minimizing redundancy, improving service delivery, and cutting operational costs. This is part of a broader effort to make the government leaner and more responsive to the economic needs of the country.
As the federal budget for fiscal year 2025–26 approaches, stakeholders from the private sector, donor agencies, and financial institutions will be closely observing the government’s policy direction. With a renewed focus on long-term goals, this budget may serve as a turning point in how Pakistan envisions and executes its economic strategy in the years ahead.