FY27 budget aims at export-led growth, economic consolidation: FinMin Aurangzeb

• Finance Minister asserts Rs18.9tr budget targets fiscal discipline and sustained recovery

• Cites manufacturing growth, remittances and IT exports as signs of economic recovery

• Claims current account surplus and rising remittances signal external stability

• FBR reforms and tax base expansion at heart of fiscal strategy

  ISLAMABAD: Pakistan’s proposed budget for fiscal year 2026-27 is designed to accelerate export-led growth and consolidate economic stabilisation achieved over the past two years, Finance Minister Muhammad Aurangzeb said on Saturday as he concluded a parliamentary debate on the government’s fiscal plan.

The Rs18.9 trillion ($67 billion) budget, unveiled on June 10, seeks to maintain fiscal discipline while supporting growth in an economy recovering from a balance-of-payments crisis that pushed Pakistan to the brink of sovereign default in 2023.

Finance Minister Muhammad Aurangzeb delivers winding-up speech during the general debate on the federal budget 2026-27 in the National Assembly, says assembly members’ proposal included in the budget; first dividend of peace agreement announced through reduction in petrol prices,… pic.twitter.com/X17aiy0DOZ

— Pakistan TV (@PakTVGlobal) June 20, 2026

The proposals triggered several days of debate in parliament, with lawmakers raising concerns over taxation measures, revenue collection targets, relief for households and the pace of economic recovery.

“The fundamental goal of our government and this budget is export-led growth, which should be sustainable and inclusive, which should increase productivity and create jobs,” Aurangzeb told the National Assembly during the budget debate.

He said the government believed the economy had moved beyond a stabilisation phase and was now positioned for stronger growth, pointing to improvements in key economic indicators over the past year.

“Today our industry is doing well,” he said, adding that large-scale manufacturing had recorded growth of around 6.5 percent, the highest in four years.

FinMin Aurangzeb said Pakistan’s external account had also remained stable, noting that the country posted a current account surplus during the first 11 months of the current fiscal year, while remittances from overseas Pakistanis were expected to reach $41 billion by year-end.

He also highlighted growth in the technology sector, saying information technology exports had increased by 20 percent during the year and were expected to exceed $4.5 billion, while Pakistani freelancers generated record earnings of $1.6 billion.

The finance minister said the government’s fiscal strategy was aimed at shifting focus from overburdening existing taxpayers to expanding and broadening the tax base.

“We have changed this trend through this budget and have focused on broadening and deepening instead of burdening,” he said, adding that relief had been provided to salaried workers, exporters, industries and small businesses, alongside efforts to improve tax compliance and enforcement.

FinMin Aurangzeb also highlighted ongoing reforms at the Federal Board of Revenue (FBR), saying the government was introducing a new operating model aimed at increasing digitisation, reducing discretionary powers and enhancing transparency in tax administration.

The budget debate comes as Pakistan continues efforts to sustain economic recovery under reforms linked to a $7 billion International Monetary Fund (IMF) programme.

The government has projected economic growth of 4.2 percent for the next fiscal year, saying lower inflation, a stronger external position and rising exports provide a foundation for faster expansion.

The Finance Bill is expected to be approved by parliament before the start of the new fiscal year on July 1.