- The Senate is debating a 200% increase in gasoline prices.
- The government defends a fuel subsidy program of 129 billion rupees.
- Pakistan is targeting a revenue of Rs13tr for FY27.
Senator Muhammad Aurangzeb, Minister of Finance, said on Wednesday that the economic survey would be presented tomorrow (Thursday), paving the way for the next federal budget 2026-27 and outlining key fiscal indicators and performance over the past year.
The economic survey, the pre-budget document, would provide a comprehensive overview of the country’s economic performance, including GDP growth, tax revenues, sectoral trends in key industries and other major fiscal and macroeconomic indicators for the outgoing financial year.
The Finance Minister today announced the date for the presentation of the economic study in a Senate session, while briefing lawmakers on developments related to the Middle East conflict and its continuing economic implications.
During a debate on a motion regarding the rise in petrol prices, Senator Mohsin Aziz said petrol prices had increased by 200%, criticizing the government’s policy on fuel prices and subsidies and raising concerns over the burden imposed on consumers.
He argued that although the government had reduced jet fuel prices, the relief had not been extended to ordinary consumers, adding that public finances were under pressure as public spending continued without reduction and oil tax revenues were not used for the benefit of the public.
Responding to lawmakers, Aurangzeb said that at the start of the Middle East conflict, it was unclear whether the conflict would last a week or a month, adding that it had now lasted for three and a half months with lingering economic effects.
He said the government initially decided to pass on the burden of petrol price but later provided Rs 129 billion in subsidies over three weeks, a move which also drew criticism from stakeholders.
The finance minister said the subsidies were funded by cuts to the Public Sector Development Program (PSDP), adding that 5.4 billion rupees had already been disbursed, including support for 800,000 motorcycle users and more than 4 billion rupees to farmers under targeted relief measures.
He added that even if the conflict was resolved immediately, its economic impact could linger into next year.
Aurangzeb said Pakistan was targeting 13 trillion rupees in revenue for the current fiscal year and noted that, unlike in 2022, the country had not made international appeals following the floods, instead managing its losses through domestic resources.
He also said the oil tax had always existed and stressed that commitments related to the tax were always part of the government’s broader fiscal framework.
The federal budget for the financial year 2026-27 is likely to be presented in the National Assembly on June 12, Parliamentary Affairs Minister Tariq Fazal Chaudhry said on Tuesday.
This announcement marks a new adjustment to the budget calendar. The federal government had previously decided to present the budget on June 10 after delaying it to June 5 due to consultations with coalition partners and discussions on the proposed budget measures.
Budget session plan
In another development today, a meeting of parliamentary leaders was held in Islamabad under the leadership of National Assembly Speaker Ayaz Sadiq, where arrangements for the upcoming budget session were discussed.
The budget session is expected to continue uninterrupted from June 12 until its approval, without weekly holidays, including Saturdays and Sundays, parliamentary sources said. PK Press Club News.
The government aims to secure approval of the budget before Ashura, with a target of completion by June 23 or 24, they added.
The sources said that if the approval is delayed, the session will continue without holidays, except Ashura, while additional grants will be considered later.
