Pakistan Announces USD67.5B Budget with Defense Boost
Finance Minister Muhammad Aurangzeb delivered the budget address before the National Assembly amid a backdrop of loud opposition protests, pointing to a series of economic milestones achieved in spite of mounting regional and global headwinds.
"The size of Pakistan's economy has increased to $452 billion, a new milestone," the minister told parliament.
Aurangzeb reported that GDP expanded by 3.7% during the outgoing fiscal year — the fastest pace of growth in four years — though the figure narrowly missed the government's 4% target. Large-scale manufacturing surged 6.1% and the services sector grew 4.1%, both marking their strongest showing in four years.
Per capita income climbed to $1,901, up from $1,751 the previous year, while foreign exchange reserves soared from roughly $4 billion three years ago to over $17 billion. Workers' remittances hit $38 billion in the first 11 months of the current fiscal year, he added.
On the spending side, the government earmarked approximately 3 trillion rupees ($10.8 billion) for defence — a relatively modest increase — while trimming development expenditure. Federal public-sector employees would receive a 7% salary increase under the proposed plan.
Looking ahead, the government has set a GDP growth target of 4% and an inflation target of 8.2% for the July 2026–June 2027 fiscal year.
Prime Minister Shehbaz Sharif, speaking ahead of the budget presentation, underscored that national security remained a cornerstone of economic progress, calling for expanded investment in water reservoirs, dams, and accelerated development of renewable energy — particularly solar and wind.
Yet the picture was not without shadows. Official figures revealed that unemployment climbed to 7.1% from 6.3% over the past four years, underscoring the persistent challenge of job creation as Pakistan works to consolidate its recovery and sustain long-term growth momentum.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
