The federal cabinet has reviewed the finance minister’s budget speech ahead of the upcoming budget presentation. Officials said some changes may still be made after cabinet members raised additional demands during the meeting.
A majority of ministers reportedly called for higher salary increases in line with inflation. The current budget includes a proposed 7% increase in salaries and pensions for government employees.
PPP to Participate in Budget Session
The Pakistan Peoples Party (PPP) has decided not to boycott the budget session. However, according to a spokesperson, party chairman Bilawal Bhutto Zardari will not attend the meeting, although some party members will be present.
The party said it will remain part of the budget process in the national interest.
PM Highlights Economic Improvement
Prime Minister Shehbaz Sharif told the cabinet that inflation has dropped from 38% to single digits over the past two years. He also said the policy rate has come down from 22.5% to 11%.
He added that despite global challenges, Pakistan’s economy remains stable and the upcoming budget aims to support further growth.
Focus on Security, Energy and Water
The prime minister stressed that economic development is not possible without strong national security. He also highlighted the need for new water reservoirs and investment in renewable energy sources like solar and wind power.
He said major investment will be required in energy storage systems and related infrastructure to ensure long-term stability.
Talks With Provinces on Resources
Shehbaz Sharif said detailed discussions were held with all four provinces over the past one and a half months regarding resource distribution and development funding.
He said Punjab, Sindh, Balochistan, and Khyber Pakhtunkhwa were all briefed, and the dialogue was positive and constructive. He thanked provincial leaders for their cooperation and support.
IMF Engagement and Economic Reforms
The prime minister praised the government’s economic team for negotiations with the International Monetary Fund (IMF). He said he personally spoke with the IMF managing director, who expressed satisfaction with Pakistan’s economic progress.
He added that the budget will include tax relief measures and steps to support economic growth.
CPEC 2.0 and Future Projects
Referring to his recent visit to China, the prime minister said discussions on CPEC 2.0 were encouraging. The next phase will focus on agriculture, artificial intelligence, IT, minerals, special economic zones, and highway development projects.
Coalition Support for Budget
The prime minister said allied political parties, including PPP, MQM-P, Istehkam-e-Pakistan Party, and others, have supported the budget process, helping finalize the proposals ahead of presentation.
