Addressing lawmakers, the finance minister expressed gratitude to coalition partners, calling it an honour to present the government’s third budget. His speech combined policy details with geopolitical remarks, reflecting both economic direction and strategic messaging.

He referred to what he described as  success in Bunyan-ul-Marsoos,  adding that Pakistan had delivered a strong response to India in the previous year. He further stated that Pakistan’s military strength is now widely recognised internationally, claiming that several countries have shown interest in incorporating Pakistani fighter jets into their defence systems.

Defence Ties and Regional Diplomacy Highlighted

Muhammad Aurangzeb also highlighted Pakistan’s recently strengthened defence cooperation with Saudi Arabia, describing the agreement as a reinforcement of longstanding brotherly ties between the two countries.

He said Pakistan carries a  sacred and heavy responsibility  in maintaining regional partnerships and stressed that defence collaboration with Saudi Arabia reflects deepened strategic trust.

Key Budget Figures Revealed

According to official budget documents, the total federal budget has been estimated at Rs18.77 trillion, with major allocations distributed across debt servicing, defence, pensions and subsidies.

The largest share goes to interest payments on debt, with Rs8.05 trillion allocated for servicing loans—continuing to reflect the heavy fiscal burden of public borrowing.

Pension expenditure is estimated at Rs1.169 trillion, including Rs822 billion for military pensions and Rs272 billion for civil pensions.

Defence spending has been projected at Rs3 trillion, underscoring the government’s continued emphasis on security expenditure.

Subsidies are estimated at Rs1.091 trillion, while civil government operational expenses stand at around Rs1.071 trillion.

An allocation of Rs430 billion has been set aside for emergency-related expenditures, reflecting contingency planning within the fiscal framework.

Overall current expenditure is projected at Rs17.495 trillion, leaving limited fiscal space for development-oriented spending.

Development and Revenue Targets

The federal Public Sector Development Programme (PSDP) has been set at Rs1.05 trillion, indicating investment in infrastructure and development projects.

On the revenue side, the Federal Board of Revenue (FBR) has been tasked with a tax collection target of Rs15.264 trillion, a key figure that will determine the government’s ability to manage its fiscal deficit.

A Budget Defined by Balance and Pressure

The budget reflects a familiar challenge for Pakistan’s economy: balancing high recurring expenditures with limited fiscal flexibility. With debt servicing consuming the largest share of resources, the government faces continued pressure to expand its revenue base while maintaining economic stability.

As debate continues in parliament, the budget is expected to face scrutiny from opposition parties and economic analysts over its growth assumptions, expenditure priorities, and ability to deliver meaningful relief to citizens.