NA approves Rs9.95tr in demands for grants

Express Tribune

3 days ago

The National Assembly on Wednesday completed the approval process for demands for grants pertaining to ministries, divisions and various federal departments.
In total, the lower house of parliament, which met under the chairmanship of Speaker Sardar Ayaz Sadiq, approved 136 demands for grants amounting to Rs9,951.22 billion for 33 federal ministries and divisions.
Meanwhile, over 750 cut motions moved by the opposition were rejected by majority vote.
Finance Minister Senator Muhammad Aurangzeb, while winding up the debate, said that independent data validated by global rating agencies and reputable surveys shows a significant rise in consumer confidence, reaching its highest level since 2022.
He highlighted that Pakistan's macroeconomic stability was improving, with inflation declining, policy rates reduced, foreign exchange reserves increasing, and the national currency showing signs of stability.
He emphasised that the recent boost in public confidence is not based on government statistics but on independent assessments.
Aurangzeb stated that the country's tax-to-GDP ratio was projected to increase to 10.4 percent by the end of the current fiscal year, compared to 8.8 percent last year.
He acknowledged that throughout the year, speculation about looming debt crises and repeated calls for "mini-budgets" were widespread, but said these forecasts have proven exaggerated, as recent indicators show a more resilient and adaptive economic environment.
He further added that federal expenditure this year was expected to increase by less than 2 percent, a stark contrast to the 10 to 13 percent growth seen in past years. Key reasons for this include the decline in debt servicing costs due and lower policy rates.
Commenting on the government's cost-cutting measures, he remarked, "Gone are the days when the prime minister used to come and go from the office in a helicopter. Expenditures have to be reduced from the top."
The minister said that major reforms are currently underway at the Federal Board of Revenue (FBR) aimed at improving transparency and reducing human intervention in the tax collection process.
Speaking on tax policy in the former FATA region, he clarified that the matter is not related to any particular province. He explained that income tax in the area remains exempted, while sales tax is being implemented gradually and progressively.
"This is an ongoing process and all relevant stakeholders have been engaged. There should be no misconception that decisions were made without consultation," he stated.
Senator Aurangzeb also spoke about the alignment of development priorities under the Public Sector Development Programme (PSDP).
He said, the federal PSDP stands at Rs1 trillion, the combined Annual Development Plans (ADPs) across all provinces amount to more than Rs4 trillion, underscoring the importance of coordinated development planning at all levels of government.
The assembly approved 14 demands for grants amounting to Rs 3.55 trillion for the Finance Division to meet various expenditures for the fiscal year ending June 30, 2026.