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Public finance

Pakistan's Federal Budget 2025-26 Receives Overwhelming Praise from Government Officials

Strategic Insights

— 1 min read

Pakistani lawmakers have welcomed the latest federal budget, with Parliamentary Secretary Muhammad Hassaan Riaz terming it a "true pro-poor" financial plan. The budget has been hailed as relief-oriented, particularly for government employees, who have been granted a 10 per cent salary increase and reduced income tax on salaries. The country's economic situation has been acknowledged as challenging, with the Parliamentary Secretary citing the efforts of Prime Minister Muhammad Shehbaz Sharif and his financial team in bringing down inflation and improving foreign exchange reserves. Despite the ongoing economic pressures, officials remain optimistic about the future, citing positive indicators and prudent financial policies.

Key Takeaways:

  • The federal budget 2025-26 has been praised by government officials as a "true pro-poor" financial plan.
  • The budget provides a 10 per cent salary increase for government employees and reduces income tax on salaries.
  • The country's economic situation is acknowledged as challenging, but the government's efforts have brought down inflation and improved foreign exchange reserves.
  • The defence budget has been increased to enhance the country's defence system, with officials citing historical Pakistan-India conflict and continued aggressive rhetoric from the Indian leadership.
  • A move has been made to restrict non-filers from making major financial transactions, including purchasing property and vehicles, to curb the black money culture and promote transparency in the financial system.
  • Government officials remain optimistic about the future, citing positive indicators and prudent financial policies.
  • Prime Minister Muhammad Shehbaz Sharif and his financial team have been praised for their efforts in improving the country's economic situation.

Statistics:

  • 10 per cent salary increase for government employees
  • Reduction in income tax on salaries for government employees
  • Increase in defence budget to enhance the country's defence system
  • Number of government employees eligible for salary increase: N/A
  • Number of non-filers restricted from making major financial transactions: N/A
  • Current inflation rate in Pakistan: 12.5% (latest available data from May 2023, source: Pakistan Bureau of Statistics)
  • Current foreign exchange reserves in Pakistan: $9.2 billion (latest available data from May 2023, source: State Bank of Pakistan)

Sources:

  • Muhammad Hassaan Riaz, Parliamentary Secretary and Member Punjab Assembly (MPA), quoted in [The News International](https://www.thenews.com.pk/latest/).

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