Finance Minister Aurangzeb Details the 2026-27 National Budget -

ISLAMABAD:

Finance Minister Muhammad Aurangzeb on Friday presented the Federal Budget 2026-27 amid opposition protests and loud chanting in the National Assembly.

Opening his speech, Aurangzeb said it was an honour to present the government’s third budget before the House, adding that Pakistan and Saudi Arabia had concluded a defence agreement marking a strategic partnership.

He said Pakistan’s defence industry was now contributing to foreign exchange earnings, calling it evidence that strong defence also supports economic development.

The minister said Pakistan had responded decisively to Indian aggression, forcing movement toward dialogue, and described Operation Bunyanum Marsoos as a success. He added that Pakistan had played a diplomatic role in facilitating engagement between the United States and Iran, and said international leaders had praised the leadership of Prime Minister Shehbaz Sharif and Field Marshal Asim Munir.

Aurangzeb said Pakistan-China relations remained a key economic pillar and reiterated that Pakistan-Saudi defence ties reflected deeper strategic alignment.

On the economy, he said growth reached 3.7% in FY2025-26 despite floods and regional tensions, with GDP size rising to $452 billion. Per capita income increased to $1,901, while large-scale manufacturing recorded its strongest growth in four years.

He said foreign exchange reserves had risen to over $17 billion from below $4 billion three years ago, covering around three months of imports.

Inflation stood at 7% and was expected to ease as regional tensions subsided, he added, noting that recent Middle East developments had pushed up global fuel prices. The government, however, absorbed part of the impact through a Rs128 billion petroleum subsidy.

Aurangzeb said Pakistan had returned to international capital markets after four years, raising $750 million through Eurobonds and debuting in China’s Panda bond market with oversubscribed demand.

He said 11 IPOs were launched during the year and over 250 firms entered Special Technology Zones, adding that Pakistan’s international image and investor confidence had improved significantly.