Finance Minister Muhammad Aurangzeb said the upcoming federal budget will aim to ease the tax burden on salaried individuals and will include pension reforms. Speaking at an event in Islamabad and later to journalists, he stressed the need for national unity on the economic front.

Aurangzeb stated that the government was committed to supporting Pakistan’s armed forces, noting, “This is not just a need of the armed forces, but a need of the country.”

He alleged that India had attempted to derail Pakistan’s loan programme at the IMF Board by trying to prevent a meeting from being held and the agenda from being discussed. However, he added that Pakistan’s case was eventually taken up on merit.

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The minister said Pakistan had met all targets set by the IMF, and failure to do so would have caused serious complications. “We will continue implementing the IMF programme,” he assured.

Aurangzeb confirmed that the IMF mission had returned after “constructive discussions,” adding that Pakistan enjoyed the Fund’s full support. He said virtual discussions with the IMF would continue this week.

Commenting on public speculation, he said no decision had yet been made regarding the salaries of civil and military employees.’

Addressing the topic of pension reform, the finance minister said, “People are asking what’s happening on the pension reform front. I want to tell them that work is underway.” He explained that financial discipline would be essential to reduce borrowing and ease the debt burden.

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Aurangzeb said that global observers were satisfied with Pakistan’s macroeconomic stability, and the government was committed to long-term reforms. He noted that the budget must go beyond balancing revenues and expenditures and instead serve as a strategic tool.

He also said that Pakistan would restructure its debt system and modernize the debt management office. “We will continue the current reform process,” he stated, listing key areas such as taxation, energy, state-owned enterprises, and federal restructuring as central to sustainable growth.

The minister added that Pakistan’s economic performance had surprised many globally, and the recent decline in interest rates had positively impacted the economy. He said the government would also accelerate the privatization of state-owned enterprises.

Finance minister highlights the need of ‘Strategic Approach’

Speaking at an event in Islamabad, Aurangzeb stated, “We are going to bring some bold measures during the budget because the budget is not just about revenue and expenditure but has to provide the strategic direction where the economy is and where it is heading.”

He emphasized the need to change the “DNA” of the economy, highlighting the importance of structural reforms. “It’s our full effort to make this document more strategic, rather than just making the math work,” he added.

Aurangzeb noted a significant reduction in debt servicing costs, stating they had decreased by a trillion rupees. He also mentioned plans to restructure and reorganise the debt management office along modern lines in the coming year.

Addressing the country’s reliance on imports, he pointed out the resulting foreign exchange issues and balance of payment crises. “We go running back to the lenders as the last resort, the reason why we are in the 24th IMF programme,” he remarked.

The finance minister reaffirmed the government’s commitment to structural reforms, including taxation, digitalisation of the Federal Board of Revenue (FBR), and rightsizing the federal government. He mentioned that these efforts would be implemented in phases rather than through a “big bang” approach.

Last year, Aurangzeb presented a federal budget with a total outlay of Rs18.9 trillion, aligning with IMF guidelines. The upcoming budget announcement has been postponed to June 10 as discussions with the IMF continue.