Finance Minister Muhammad Aurangzeb formally addressed the National Assembly in Islamabad to conclude the extensive, days-long parliamentary debate on the federal budget. During his address, the finance minister systematically rejected the various procedural objections raised by opposition lawmakers, clarifying that allegations regarding structural discrepancies within the official budget documentation were entirely based on incorrect technical interpretations. He assured the house that the fundamental macroeconomic frameworks, including the gross domestic product calculations and core economic indicators, had been thoroughly vetted and approved by the National Accounts Committee, an institutional body that maintains equal representation from all four provinces, the federal administration, and relevant economic statistical bodies.
The finance czar expressed gratitude to the members of the National Assembly for their energetic participation in the legislative review, offering specific praise to Opposition Leader Mehmood Khan Achakzai for his critical oversight. He also commended the leadership of Senator Saleem Mandviwala and MNA Naveed Qamar, who head the standing committees on finance in the Senate and National Assembly, respectively. Aurangzeb noted that these specialized committees reviewed the initial budgetary frameworks with high sincerity and forwarded constructive recommendations for improvement, confirming that several of these parliamentary suggestions will be officially written into the final version of the Finance Bill 2026.
Presenting a positive assessment of the country’s broader macroeconomic trajectory, the finance minister emphasized that key commercial sectors are demonstrating continuous stability. He pointed out that large-scale manufacturing industries are currently operating smoothly, the national current account remains in a surplus position, and overall export performance is on an upward trajectory. Notably, information technology exports have experienced a substantial twenty percent surge. Furthermore, the minister revealed that the state apparatus has accumulated an additional fourteen billion dollars in tax revenue over the previous two fiscal years, classifying this mobilization drive as a historic milestone for the country’s fiscal collection system.
Highlighting the vital role of the agrarian landscape, the federal minister reinforced that the agriculture sector serves as the absolute backbone of the national economy. To insulate primary producers from rising credit costs, the government has finalized a specialized financial package worth three hundred billion rupees to disburse interest-free loans to smallholder farmers. This targeted credit intervention is structurally designed to provide direct financial relief and operational capital to approximately seven hundred fifty thousand small-scale growers across the country, enhancing crop yields and ensuring food security. The minister attributed this ongoing stabilization to the strategic economic direction instituted by Prime Minister Shehbaz Sharif during the previous fiscal period.
The total financial outlay for the fiscal year 2026 27 stands at an aggregate of 18,771 billion rupees. According to the state’s expenditure breakdown, the largest individual budgetary allocation is directed toward sovereign mark-up and debt service payments, which consume 8.054 trillion rupees. This is followed by a three trillion rupee allocation for national defense and one trillion rupees dedicated to the federal Public Sector Development Programme. For the upcoming financial year, the economic planners have established a formal economic growth target of four percent, while the average national inflation rate is mathematically projected to decelerate and hover around 8.2 percent.
Prior to the finance minister wrapping up the session, opposition parliamentarians presented a series of alternative fiscal recommendations aimed at lowering the general cost of living. JUI-F MNA Aliya Kamran advocated strongly for a reduction in the advance income tax levied on telecommunication services under Section 236 of the Income Tax Ordinance, proposing a drop from fifteen percent down to eight percent to enhance digital connectivity. She also backed a general sales tax reduction on essential food items, lifesaver medicines, and agricultural inputs, while calling for structured limits on the petroleum levy. Concurrently, PTI Chairman Gohar Ali Khan called for the establishment of a permanent, well-funded national disaster risk fund to improve climate resilience, while MNA Asad Qaiser opposed a proposed nine percent tax on raw tobacco crops, arguing that the tax burden should instead be shifted entirely toward finished tobacco manufacturers and cigarette products.
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