Bold Moves in Budget 2025‑26: Pakistan’s Tug‑of‑War

In a high‑stakes session at the National Assembly, Finance Minister Muhammad Aurangzeb unveiled the FY26 budget, striking a delicate balance between growth, austerity, and taxation. With a total outlay of Rs17.6 trillion, the budget aims to fuel 4.2 percent GDP growth, even as defence spending soars by over 20 percent.

Aurangzeb spotlighted key initiatives: Rs39.5 billion for the Higher Education Commission, Rs9.8 billion to establish 11 Daanish Schools, and investments in agriculture under the National Seed Policy 2025 and National Agri Technology Policy 2025. Millions will benefit from electric wheelchairs, laptops, and audiovisual aids.

A major highlight is the embrace of deregulation: privatisation of power distribution companies and fuel price adjustments to boost competition. The project at Reko Diq stands out, with a $5 billion investment readying to deliver $71 billion in cash flows, $7 billion in tax, and $8 billion in royalties. Overseas Pakistanis will see enhanced support through online services and quotas, with remittances already hitting $31.2 billion—a 31 percent jump.

However, the PTI, led by Secretary General Sheikh Waqqas Akram and MP Zartaj Gul, lambasted the budget as “public‑crushing.” Even Prime Minister Shehbaz Sharif stepped in, questioning elites on their contributions compared to the salaried class. The stage is set: can this budget power Pakistan forward?