Federal Minister for Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, has unveiled the strategic direction and priorities of the Government of Pakistan through the Budget 2025–26, reaffirming the nation's collective resolve to transition from crisis to stability and sustained growth under the vision of URAAN Pakistan and the 13th Five-Year Plan. "This year’s budget," the Minister stated, "is not merely a financial statement; it is a roadmap toward recovery, resilience, and opportunity for all Pakistanis."
Reflecting on the journey from economic despair to macroeconomic stability, Professor Ahsan Iqbal said, “When we assumed office in 2022, we inherited a collapsed economy—not a surplus of goodwill. The rupee was crashing, foreign exchange reserves had dried up, and Pakistan was on the edge of internal default. We were left with no option but to take tough and unpopular decisions, including energy tariff reforms, subsidy rationalization, fiscal tightening, and IMF engagement. Critics called it austerity. In truth, it was rescue.”
He added, “Two years ago, we couldn’t even pay for ongoing development projects. Today, we are paying our defence expenditures and servicing debt obligations from our own resources—and very soon, we will finance our development independently. The GDP growth has rebounded from a negative trajectory to 2.7% in the current year, with a target of 4.2% for 2025–26.”
Highlighting sectoral strategies, the Minister said, “We are targeting 4.5% growth in agriculture through Rs. 4.2 billion investments in crop productivity and livestock, modernization, and mechanization, backed by provincial initiatives such as the Punjab Kissan Card. Industry is projected to grow at 4.3% through lower tariffs, better energy supply, and revitalized construction. The services sector will rise by 4% through IT exports, digitized retail, and expanded digital finance.”
He noted, “Inflation is expected to remain within 7.0% to 7.5% as global oil prices ease and the exchange rate stabilizes. Our remittances, rising exports, and foreign inflows are also supporting this improvement. The world is acknowledging Pakistan’s turnaround.”
Speaking on investor confidence, Ahsan Iqbal stated, “Investor sentiment has dramatically improved. The IMF has approved $1.4 billion under the RSF—first time ever for Pakistan. We’ve completed the SBA programme successfully and received the second tranche under the EFF. International agencies like Fitch and Moody’s have upgraded Pakistan’s outlook. The World Bank signed its first ten-year $20 billion Country Partnership Framework. These are not just endorsements; they are a vote of trust in our reform momentum.”
He emphasized, “Our fiscal deficit has come down from 5.9% to 3.9%. Remittances are expected to hit $38 billion this year. We have controlled Rs. 140 billion in losses from electricity companies, and new exploration and production investments worth $5 billion have been secured.”
“The Budget 2025–26,” the Minister said, “is fully aligned with our five-sector strategy under URAAN Pakistan. We are offering relief to the salaried class and pensioners, simplifying taxation for small businesses, and increasing social protection—BISP’s budget has been raised to Rs. 716 billion. These are citizen-centric priorities.”
He shared that “the 13th Five-Year Plan commits Rs. 17 trillion—Rs. 7 trillion from the federal government and Rs. 10 trillion from provinces. This year’s development outlay of Rs. 4.2 trillion reflects our ambition. Although we had demanded Rs. 1.6 trillion for federal PSDP, only Rs. 1 trillion was approved. This forced us to drop 367 low-impact projects, saving Rs. 2.73 trillion.”
Professor Ahsan Iqbal elaborated that “ongoing federal projects now total Rs. 12.8 trillion, with Rs. 8.5 trillion in throw-forward liabilities. Low allocations increase costs every year due to delays. Our approach is to focus on projects that generate jobs, improve exports, ensure climate resilience, and build human capital.”
He underlined the reform momentum by stating, “We are redesigning our systems through data-driven decision-making, process reengineering, citizen-focused delivery, and a robust monitoring mechanism to plug leakages and inefficiencies.”
Detailing key achievements, the Minister said, “In 2024–25, we completed 280 projects. Health saw seven major completions, including PIMS expansion with 6,600 beds and digital infrastructure. Our olive production success is a prime example of how PSDP is delivering results.”
He reiterated that “this year’s priority is completing what we’ve started and investing where the need is greatest—Balochistan, Gilgit-Baltistan, and merged districts. Rs. 42 billion is being provided for KP’s merged areas under AIP, with significant allocations for solar energy, FATA University, and policing infrastructure.”
Highlighting infrastructure, he announced, “Major projects include Diamer Bhasha Dam (Rs. 33 billion), Mohmand Dam (Rs. 35 billion), Quetta–Karachi Highway (Rs. 100 billion), M-6 Motorway, N-55 Indus Highway, and Eastbay Expressway Phase II. In water and energy, over Rs. 223 billion has been allocated, including 12 hydropower projects and the 1,200 MW Sindh Solar Project. We are building a clean, self-reliant energy future.”
On the social front, he said, “Health allocations are at a record high. Projects like Sheikh Zayd Hospital upgradation and Jinnah Medical Complex will serve over one million patients annually. Digital health is being integrated into new hospitals for greater reach and efficiency.”
On youth and education, the Minister noted, “Danish Schools and new university campuses are being launched in underserved areas like Muzaffargarh and Rajanpur. Over 23,000 IT training slots, 18,000 internships, and 100,000 laptops will prepare our youth for a digital economy. National Centres and the Quantum Valley initiative will place Pakistan on the global tech map.”
Climate and environmental resilience also received attention. “We are funding smart agriculture, green finance, and climate-adaptive infrastructure to tackle floods and droughts. This is crucial for our sustainability,” he said.
He emphasized, “These projects will create thousands of direct and indirect jobs, stimulate local economies, and enhance livelihoods. This is a people’s budget.”
He reaffirmed the government’s commitment to social protection: “We continue to provide targeted subsidies and safety nets to shield the vulnerable. Relief for pensioners and salaried classes is part of our strategy to absorb inflation shocks.”
In conclusion, Federal Minister Ahsan Iqbal said, “Despite resource constraints, this government has laid the foundation for a modern, inclusive, and globally competitive Pakistan. URAAN Pakistan is not just a vision—it is a national mission. Through this budget, we are enabling hope, building opportunity, and ensuring that every Pakistani shares in the promise of progress.”
