KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb is set to unveil an International Monetary Fund-backed federal budget for the 2025-26 fiscal year in parliament today, with economists describing it as a delicate balancing act aimed at preserving macroeconomic stability while reigniting growth.
The budget comes a day after the release of the Economic Survey of Pakistan, which showed that the country missed its annual growth target, expanding by 2.7 percent against a goal of 3.7 percent.
Economists say the government is now walking a “tightrope” as it prepares its fiscal roadmap for the coming year.
“The upcoming budget is expected to be fiscally disciplined, aiming to strike a delicate balance between economic stability and inclusive growth,” said Sana Tawfik, head of research at Karachi-based brokerage Arif Habib Limited.
Pakistan’s agriculture sector was a major drag on overall performance in the outgoing fiscal year, growing just 0.56 percent, while the industrial sector, especially large-scale manufacturing, also lagged.
