Finance Minister Muhammad Aurangzeb on Saturday dismissed opposition criticism of the federal budget, saying claims of irregularities were based on a misreading of official figures and procedures.
Wrapping up the National Assembly’s extended budget debate, he said key economic data, including GDP figures, had been presented before the National Accounts Committee, which includes representatives from all provinces, federal institutions and relevant bodies. He maintained that this process ensured transparency and collective oversight in preparing national economic indicators.
Aurangzeb acknowledged that lawmakers had raised concerns during the debate, but said the overall budget-making process remained open and consultative. He also thanked parliamentarians from both sides for their participation, including Opposition Leader Mehmood Khan Achakzai, Senate Finance Committee Chairman Saleem Mandviwala and National Assembly Finance Committee Chairman Naveed Qamar.
He said standing committees had carefully reviewed budget proposals and sent recommendations for improvement, some of which would be incorporated into the Finance Bill 2026.
On the economic situation, the finance minister said industrial activity was continuing smoothly, the current account had recorded a surplus, and exports were showing improvement. He added that IT exports had increased by 20 percent. He also claimed that the government had generated $14 billion in additional revenue over the past two years, which he described as the highest increase since 1988.
Highlighting the agriculture sector, Aurangzeb said it remained the backbone of the economy. He announced that Rs300 billion in interest-free loans were being provided to small farmers, benefiting around 750,000 growers across the country. He said these measures were part of efforts to support rural livelihoods and strengthen production.
The finance minister further said the economic direction set by Prime Minister Shehbaz Sharif in the previous budget had helped stabilise key indicators. He noted that the federal budget for financial year 2026–27 stands at Rs18,771 billion, with major allocations including Rs8.054 trillion for mark-up payments, Rs3 trillion for defence, and Rs1 trillion for development spending.
For the upcoming fiscal year, the government has set a growth target of 4 percent, while inflation is projected at 8.2 percent.
Meanwhile, opposition lawmakers urged the government to adopt Senate-backed recommendations aimed at providing public relief. These included calls to reduce taxes on telecom services, lower GST on essential goods, and improve subsidies for low-income electricity users. Lawmakers also pushed for reforms in the energy sector to address circular debt and capacity payments, along with greater transparency in the petroleum levy.
Separately, concerns were raised over disaster preparedness, with calls for a permanent, jointly funded national disaster management system following recent floods.
Opposition members also objected to proposed taxes on tobacco crops, arguing that farmers should be protected while taxation should focus on finished products instead.
Read next: Budget 2026-27: Punjab govt announces huge relief for workers
