ISLAMABAD: Finance Minister Muhammad Aurangzeb on Monday revealed that the government is working on a “strategic” and reform-driven federal budget for fiscal year 2025-26, aiming to go beyond the traditional approach of simply balancing revenues and expenditures.
Speaking at an event in Islamabad, Aurangzeb said that Pakistan’s economy needs a fundamental shift. “The DNA of the economy must change,” he noted, emphasizing that the upcoming budget would include bold policy measures to set a long-term direction for economic stability.
Pakistan is currently engaged in high-level talks with the International Monetary Fund (IMF), which began on May 19. These discussions are focused on fiscal planning and reforms. With negotiations still underway, the government has decided to postpone the budget announcement until June 10.
The minister highlighted that debt servicing costs have declined by Rs1 trillion and that the government is planning to modernize the Debt Management Office to meet international standards. He acknowledged Pakistan’s recurring balance of payments crisis, citing the country’s overreliance on imports and external loans as root problems.
Aurangzeb also stressed the government’s commitment to structural reforms, particularly in tax collection and public spending. He reaffirmed plans for the digitalisation of the Federal Board of Revenue (FBR) and rightsizing the federal government in phases. “We’re not doing a big bang approach but a wave-by-wave reform,” he said.