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Aurangzeb Promises Bold, Strategic Federal Budget for FY2025-26 Amid Ongoing IMF Talks
FM Aurangzeb calls Budget 2025-26 “strategic,” not just numbers. Promises bold reforms: debt office revamp, FBR digitalisation. Budget delayed to June 10 amid IMF talks.
ND
by News Desk
2025-05-26
Aurangzeb Promises Bold, Strategic Federal Budget for FY2025-26 Amid Ongoing IMF Talks

Finance Minister Muhammad Aurangzeb on Monday signaled a shift in Pakistan’s fiscal direction, announcing that the upcoming federal budget for FY2025-26 would be a "strategic document" aimed at long-term reform rather than a mere numbers exercise.

Speaking at an event in Islamabad, Aurangzeb said the budget would provide “strategic direction” for the economy rather than simply focusing on revenue and expenditure. The announcement comes as the government continues high-level policy talks with the International Monetary Fund (IMF), which began on May 19 and remain inconclusive.

Due to ongoing negotiations with the IMF, the government has postponed the federal budget presentation to June 10.

“The DNA of the economy has to change,” Aurangzeb said. “We are going to bring some bold measures during the budget. It’s not just about making the math work — although of course we must do that — but about where the economy is and where it's going.”

He revealed that Pakistan’s debt servicing cost had declined by Rs1 trillion, and further reforms are in the pipeline. “Next year, we aim to restructure and reorganize our debt management office according to international best practices,” he added.

Aurangzeb acknowledged Pakistan’s chronic dependency on imports and the recurring balance of payments crises, citing them as reasons for the country’s repeated reliance on IMF support — now in its 24th programme.

He stressed the need for structural reforms, particularly in the Federal Board of Revenue (FBR). The government, he said, is committed to revamping the taxation system through improvements in people, processes, and technology, and furthering FBR digitalisation.

On the public sector front, Aurangzeb confirmed that rightsizing the federal government remains a priority, but will be executed in phased waves, not through abrupt measures.

Last year, Aurangzeb presented his first federal budget with a total outlay of Rs18.9 trillion, closely aligned with IMF guidance. The government had aimed to broaden the tax base to relieve the burden on existing taxpayers.

For the ongoing fiscal year, Pakistan’s total revenue was budgeted at Rs17,815 billion, with net revenue standing at Rs10,377 billion after provincial transfers — a nearly 49% increase from the previous year.

As the government prepares to unveil its new economic roadmap, all eyes remain on the outcome of the IMF negotiations — seen as pivotal to both budget finalization and economic stability.

 
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