The National Assembly approves demands for grants amounting to Rs9.95 trillion.
On Wednesday, the National Assembly finalized the approval process for grant requests related to ministries, divisions, and various federal departments.
The lower house of parliament, chaired by Speaker Sardar Ayaz Sadiq, accepted 136 grant requests totaling Rs9,951.22 billion for 33 federal ministries and divisions.
Simultaneously, over 750 cut proposals proposed by the opposition were dismissed by a majority vote.
Finance Minister Senator Muhammad Aurangzeb, while winding up the debate, said that independent data validated by global rating agencies and reputable surveys shows a significant rise in consumer confidence, reaching its highest level since 2022.
He emphasized that Pakistan’s macroeconomic stability was enhancing, characterized by decreasing inflation, lowered policy rates, rising foreign exchange reserves, and indications of stability in the national currency.
He emphasised that the recent boost in public confidence is not based on government statistics but on independent assessments.
Aurangzeb indicated that the nation’s tax-to-GDP ratio is anticipated to rise to 10.4 percent by the conclusion of the current fiscal year, up from 8.8 percent the previous year.
He acknowledged that throughout the year, speculation about looming debt crises and repeated calls for “mini-budgets” were widespread, but said these forecasts have proven exaggerated, as recent indicators show a more resilient and adaptive economic environment.
He further added that federal expenditure this year was expected to increase by less than 2 percent, a stark contrast to the 10 to 13 percent growth seen in past years. Key reasons for this include the decline in debt servicing costs due and lower policy rates.
Commenting on the government’s cost-cutting measures, he remarked, “Gone are the days when the prime minister used to come and go from the office in a helicopter. Expenditures have to be reduced from the top.”
The minister announced that significant reforms are presently being implemented at the Federal Board of Revenue (FBR) to enhance transparency and minimize human involvement in the tax collection process.
Speaking on tax policy in the former FATA region, he clarified that the matter is not related to any particular province. He clarified that income tax in the region is still exempt, however sales tax is being introduced incrementally and systematically.
“This is an ongoing process and all relevant stakeholders have been engaged. There should be no misconception that decisions were made without consultation,” he stated.
Senator Aurangzeb also spoke about the alignment of development priorities under the Public Sector Development Programme (PSDP).
He said, the federal PSDP stands at Rs1 trillion, the combined Annual Development Plans (ADPs) across all provinces amount to more than Rs4 trillion, underscoring the importance of coordinated development planning at all levels of government.
The assembly approved 14 demands for grants amounting to Rs 3.55 trillion for the Finance Division to meet various expenditures for the fiscal year ending June 30, 2026.
