Minister for Finance and Revenue Senator Muhammad Aurangzeb on Thursday apprised the National Assembly Standing Committee on Finance and Revenue that the country’s macroeconomic indicators have shown resilience, which was attributed to the prudent economic policies of the incumbent government.
The minister briefed the committee on the government’s fiscal strategy for the upcoming financial year and shared outcomes of supplementary financial measures implemented during the current year.
During the session, the Finance Minister outlined key structural reforms introduced in Budget 2025-26, emphasizing future policy direction, improved tax compliance, and efforts to streamline the tax system.
He highlighted the government’s achievements in stabilizing the economy, noting improvements in macroeconomic indicators and growing confidence from international financial institutions.
Senator Aurangzeb informed the committee that during the current fiscal year, inflation dropped significantly, from 23.4% to 4.6% over the past year, adding that the interest rates were lowered from a record 22% to 11%.
For the first time in history, Pakistan’s economy surpassed the $400 billion mark, he said, adding that GDP grew by 10.5% compared to the previous year, and the tax revenues rose by 26%, he added.
The meeting was informed that the national debt was reduced in proportion to GDP, and Rs. 1 trillion was repaid ahead of schedule. Remittances are projected to reach $38 billion, with a $10 billion increase over two years.
He said that the exchange rate remained stable, while foreign reserves grew from $9.4 billion to $11.5 billion.
The primary fiscal surplus reached 3% of GDP, the highest in two decades, adding that the current account recorded a $1.9 billion surplus, compared to a $1.3 billion deficit last year.
The minister told the meeting that exports increased by nearly 7%, with IT exports rising by 21%.
These developments, Aurangzeb noted, have been acknowledged by global financial bodies, survey firms, and rating agencies, including Fitch, which upgraded Pakistan’s credit outlook.
“Economic improvement is not the final goal but a step toward a broader vision,” the Finance Minister remarked. “We remain committed to a path of sustainable and inclusive growth”, he remarked.
About Key Government reforms and policy measures, the minister said that reforms in tariffs, taxation, energy, pensions, and privatization sectors were also introduced.
The Finance Minister said that no mini-budget was introduced during the fiscal year, despite opposition claims. He said that expansion of the tax base, with enhanced enforcement reducing leakages was remained on top priority of the government.
He said that in the Federal Budget for the fiscal year 2025-26, tax relief provided to salaried individuals and corporate tax rates were reduced, besides measures were also introduced for to support for the construction sector and launch of affordable housing loans for the middle class.
The minister informed the meeting that no new taxes on agriculture were imposed, whereas the financial support was extended to small businesses.
The Finance Minister informed the committee that over Rs. 700 billion was allocated to the Benazir Income Support Programme, benefiting more than 10 million households.