Finance Minister Muhammad Aurangzeb has revealed that the upcoming FY2025-26 budget will be fundamentally different from previous ones – focusing on strategic economic transformation rather than just balancing the books. As high-level talks with the IMF continue in Islamabad, the government has postponed the budget announcement to June 10 to finalize crucial reforms. Aurangzeb emphasized this budget will “change the DNA of Pakistan’s economy” by addressing structural weaknesses that have led to repeated IMF bailouts.
The minister outlined bold measures including modernizing debt management (already saving Rs1 trillion in servicing costs), digitalizing the FBR, and implementing phased rightsizing of government. He acknowledged Pakistan’s chronic issues – import dependency, foreign exchange shortages, and the “boom and bust” cycles that have led to a staggering 24 IMF programs. “We must break this cycle through fundamental reforms, not temporary fixes,” Aurangzeb stated at an Islamabad event.
Unlike previous budgets focused on short-term stabilization, this one aims to provide “strategic direction” for the economy. The minister stressed moving beyond just “making the math work” to implementing policies that will attract investment, boost exports, and reduce reliance on foreign borrowing. However, he cautioned that changes would be implemented gradually rather than through shock therapy to minimize disruption.
With IMF support still under negotiation and tough reforms ahead, analysts are watching whether this budget can finally put Pakistan on a path to sustainable growth. Aurangzeb’s emphasis on structural changes rather than quick fixes suggests a new approach, but implementation will be the real test.