Finance Minister Muhammad Aurangzeb presents Budget 2026-27 in the National Assembly on Friday. — SCREEN GRAB
Finance Minister Aurangzeb presents the Union Budget for the financial year 2026-27, while the opposition interrupts the proceedings with loud chanting
Aurangzeb said, “Mr. Speaker, it is a great honor for me to present the third budget of our government for the financial year 2026-2027 to this upper house”.
“Pakistan and Saudi Arabia have entered into a defense agreement which marks a strategic partnership,” he said.
This budget is being presented at a time when Pakistan has achieved status in the eyes of its people and the world as a country whose voice is heard and whose friendship is desired, he added.
Our defense industry has also become a source of earning valuable currency. This is proof that a strong defense is not only essential for our integrity but can also help the country’s economic development.
He said Pakistan has responded strongly to India’s aggression. India was forced to discuss peace. Our Operation Bunyanum Marsoos was a great success.
Pakistan has achieved massive diplomatic success in recent months and successfully brought the US and Iran to the negotiating table to resolve the regional conflict, he added.
The US and Iranian presidents have repeatedly praised the particularly important role of Prime Minister Shehbaz Sharif and COAS and CDF Field Marshal Syed Asim Munir. This is an unprecedented success which has increased our respect and stature in the comity of nations and our efforts have been appreciated at all levels and forums, he said.
Aurangzeb said Pakistan-China relations remained “an important pillar of the economy” and noted that Pakistan and Saudi Arabia had entered into a defense agreement marking a strategic partnership.
On the economy, he said Pakistan’s economic growth reached 3.7 percent in FY2025-26 despite floods and regional conflicts, while the size of the economy had reached $452 billion.
He said large-scale manufacturing productivity recorded its highest growth in four years, while per capita income had risen to $1,901.
The finance minister said foreign exchange reserves had risen from less than $4 billion three years ago to more than $17 billion, enough for about three months of imports.
When we discussed inflation, Aurangzeb said it was at 7 percent and was expected to come down after easing tensions in the Middle East.
“Due to tensions in the Middle East, inflation has increased, but with the resolution of the conflict, inflation will decrease,” he said.
He said the recent conflict involving Iran had pushed up international petrol and diesel prices and put unexpected pressure on household budgets. However, he said the government had not passed on the full impact to consumers and instead provided a targeted petroleum subsidy of Rs128 billion. during the recent oil crisis.
“The local prices of petrol and diesel did not fully reflect the intense stringency of the international market,” he said.
Aurangzeb also said that Pakistan had returned to the international bond market after four years and raised $750 million through Eurobonds.
He added that Pakistan had entered the Chinese capital market for the first time through a Panda Bond issue where demand exceeded expectations.
The minister said 11 IPOs had been launched in the stock market during the year, while more than 250 companies had started business in Pakistan’s special technology zones.
“Pakistan’s image has improved significantly and its voice is being heard internationally,” he said.
This is a developing story and will be updated further.
