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Hindustan Times
11-06-2025
- Business
- Hindustan Times
Pak hikes defence spending by 20% in budget amid tense relations with India
Pakistan on Tuesday increased its defence budget by 20 per cent, allocating PRs. 2,550 billion (USD 9 billion) for the fiscal year 2025-26, amid tensions with India. Finance Minister Muhammad Aurangzeb presented the PRs. (Pakistani Rupees) 17,573 billion worth federal budget for the fiscal year 2025–26 in the National Assembly. He also presented the budget document as a finance bill in the National Assembly. In his speech, the minister said that the government has 'decided to allocate PRs. 2,550 for the defence of the country'. He didn't provide any further details about the defence spending as traditionally the defence budget is not discussed by the parliament. Last year, the government allocated PRs. 2,122 billion for defence, reflecting a 14.98 per cent increase over PRs. 1,804 billion budgeted for the fiscal year 2023-24. 'This budget is being presented at a historic time when the nation showed unity [and] determination,' the minister said at the start while mentioning the recent Pak-India conflict. Tensions between India and Pakistan escalated after the April 22 Pahalgam terror attack, with India carrying out precision strikes on terror infrastructure in Pakistan and Pakistan-occupied Kashmir on May 7. The on-ground hostilities from the Indian and Pakistan sides that lasted for four days ended with an understanding of stopping the military actions following talks between the directors general of military operations of both sides on May 10. The defence sector expenses are the second-biggest component of the annual expenditure after the debt payments. The government allocated PRs. 8,207 billion for debt servicing, which constitutes the single biggest expense. The increase in the defence expenditure is expected to get the broad support of the lawmakers during the budget debate and voting on the finance bill. Aurangzeb also announced a 4.2 per cent GDP growth target for the economy which is higher than the 2.7 per cent achieved in the current year ending on June 30. He said that debt and interest servicing would cost PRs. 8,207 billion. Other key expenses include PRs. 971 billion for civil administration, PRs. 1,186 billion for subsidies, PRs. 1,055 billion for pensions and PRs. 1,000 billion for the Public Sector Development Programme. He said that the target for inflation was 7.5 per cent and the fiscal deficit target was 3.9 per cent as the government also announced to contain the deficit and achieve a primary surplus. The minister said that the government has set an ambitious tax collection target for the Federal Board of Revenue at PRs. 14,131 billion, an 8.95 per cent increase from last year's goal. Aurangzeb said that the main success of the government was that inflation was reduced to 4.7 per cent in the outgoing fiscal whereas it was 29.2 per cent two years ago, while the government achieved a current account surplus of USD 1.5 billion. He said the forex reserves will touch USD 14 billion by the end of the year and remittances were expected to reach USD 38 billion.
Economic Times
10-06-2025
- Business
- Economic Times
Pakistan Budget FY26: From GDP to fiscal deficit, capital expenditure, here's how it stands against India
Pakistan unveiled its FY26 federal budget, reducing spending by 7% to $62 billion. The nation targets 3.6% growth. Fiscal deficit aims for 3.9% of GDP. Capital expenditure is set at Pakistan Rs 17.57 trillion. Nominal GDP growth is projected at 4.2% for 2025-26. This follows a 2.7% growth this fiscal year. The government aims to stabilize the economy. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads After facing major blows following tensions with India, Pakistan announced its federal budget for FY26 on Tuesday, shrinking overall spending by 7% with growth target at 4.2% for the fiscal Pakistan's growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and 6.0% growth is expected in 2025, according to the Asian Development India bombed nine terror sites of Pakistan, the country in its Budget FY26 increased its defence expenditure by 20%. The government of Pakistan Prime Minister Shehbaz Sharif presented a budget that allocated $9 billion for defence spending in debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the economic survey, which indicated that the cash-strapped country's economy is likely to grow by 2.7 per cent this minister Nirmala Sitharaman announced that the fiscal deficit for FY25 is projected at 4.8% of GDP, with a target of 4.4% for the other hand, Pakistan has set a target of 3.9% of its capital expenditure of India was lowered to Rs 10.18 lakh crore from Rs 11.11 lakh crore estimated earlier for FY25. Pakistan on Tuesday set it at PRs 17.57 Budget 2025-26, India has set a nominal GDP growth target of 10.1% for FY26, slightly above the 9.7% achieved in the previous fiscal. Sharif's government has projected 4.2% economic growth in 2025-26. Growth in Pakistan this fiscal year is likely to be 2.7%, against an initial target of 3.6% set in the budget last debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the economic survey, which indicated that the cash-strapped country's economy is likely to grow by 2.7 per cent this the first nine months of the current fiscal year, the government's debt increased to PRs (Pakistani Rupees) 76,000 billion, including PRs 51,500 billion from local banks and PRs 24,500 billion in loans from external sources, according to the document, which comes a day before the presentation of the a press conference after launching the economic survey, Aurangzeb said the GDP growth in 2023 was -0.2pc, which rose to 2.5pc in Pakistan Finance Minister said that the forex reserves as of June 30, 2024, were $9.4 billion, which was a remarkable recovery from 2023 when Pakistan was down to two weeks of import cover. He said foreign exchange reserves rose to $16.64 billion in 2025.
India Today
09-06-2025
- Business
- India Today
Pakistan's debt increased to PKR 76,000 billion, economic survey reveals
Pakistan's debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the economic survey, which indicated that the cash-strapped country's economy is likely to grow by 2.7 per cent this Minister Muhammad Aurangzeb, who released the Economic Survey 2024-25 Monday, said Pakistan's economy has been on the path to recovery for the last two years, and the process was further stabilised and strengthened in the current fiscal survey is a key pre-budget document highlighting the economic performance of the government in the fiscal year 2024-25. Pakistan's financial year begins on July 1. In the first nine months of the current fiscal year, the government's debt increased to PRs (Pakistani Rupees) 76,000 billion, including PRs 51,500 billion from local banks and PRs 24,500 billion in loans from external sources, according to the document, which comes a day before the presentation of the a press conference after launching the economic survey, Aurangzeb said the GDP growth in 2023 was -0.2pc, which rose to 2.5pc in 2024."This year, we announced a 2.7pc growth for 2025. This is a gradual recovery and the right way to go about it is to focus on sustainable growth,' he also placed Pakistan's recovery within the broader global context, noting that the global GDP growth has reached 2.8 per next fiscal year will be a turnaround story,' he said, setting the tone for a budget expected to aim for IMF compliance, increased revenue, and growth-focused macroeconomic indicators, Aurangzeb said the current account recorded a surplus of USD 1.9 billion during July–April FY25, driven by strong IT exports, which were about USD 3.5 billion.'Remittances are projected to reach USD 37–38 billion by year-end, up from USD 27 billion two years ago,' he about macroeconomic indicators, the minister said, 'public debt and debt-to-GDP ratio was 68 per cent, which is now 65 per said forex reserves as of June 30, 2024, were USD 9.4 billion, which was a remarkable recovery from 2023 when Pakistan was down to two weeks of import said foreign exchange reserves rose to USD 16.64 billion in 2025, boosted by improved economic indicators and renewed investor confidence. Of the total reserves, the State Bank of Pakistan held USD 11.5 billion, while commercial banks retained USD 5.14 said that the increase follows improved credit ratings, with Fitch upgrading Pakistan's sovereign rating from CCC+ to B- with a stable minister announced plans to privatise 24 state-owned enterprises (SOEs) in the coming year, after curbing annual losses of Rs800 said that the size of Pakistan's economy increased to USD 411 billion in the current fiscal year, which was USD 372 billion in the previous fiscal survey showed that Pakistan's literacy rate remained at 67 per cent, with Punjab having the highest literacy rate at 66 per cent. Sindh had a literacy rate of 57.5 per cent, Khyber Pakhtunkhwa had 51 per cent, and Balochistan had a literacy rate of 42 per showed that exports were USD 27.3 billion while imports USD 48.6 National Assembly Speaker Ayaz Sadiq approved the schedule for the upcoming sessions to present and discuss the federal budget for 2025– to the approved schedule, the budget will be presented in the National Assembly on June 10. The assembly would remain in recess on June 11 and 12, and the budget debate would commence on June general discussion on the budget will continue until June 21, and the debate will formally conclude on the same June 23, the National Assembly will hold a discussion on the charged expenditures for the fiscal year 2025–26, which will be followed by debates and voting on Demands for Grants and Cut Motions on June 24 and Finance Bill 2025 will be taken up for approval by the National Assembly on June 26, while Supplementary Grants and other related matters will be discussed and voted on June InMust Watch
Hindustan Times
09-06-2025
- Business
- Hindustan Times
Pakistan's debt increases to PRs 76,000 billion
Pakistan's debt has increased to PRs 76,000 billion in the first nine months of the current fiscal year, according to the economic survey, which indicated that the cash-strapped country's economy is likely to grow by 2.7 per cent this year. Finance Minister Muhammad Aurangzeb, who released the Economic Survey 2024-25 Monday, said Pakistan's economy has been on the path to recovery for the last two years, and the process was further stabilised and strengthened in the current fiscal year. The survey is a key pre-budget document highlighting the economic performance of the government in the fiscal year 2024-25. Pakistan's financial year begins on July 1. In the first nine months of the current fiscal year, the government's debt increased to PRs (Pakistani Rupees) 76,000 billion, including PRs 51,500 billion from local banks and PRs 24,500 billion in loans from external sources, according to the document, which comes a day before the presentation of the budget. Addressing a press conference after launching the economic survey, Aurangzeb said the GDP growth in 2023 was -0.2pc, which rose to 2.5pc in 2024. "This year, we announced a 2.7pc growth for 2025. This is a gradual recovery and the right way to go about it is to focus on sustainable growth,' he said. He also placed Pakistan's recovery within the broader global context, noting that the global GDP growth has reached 2.8 per cent. "The next fiscal year will be a turnaround story,' he said, setting the tone for a budget expected to aim for IMF compliance, increased revenue, and growth-focused reforms. Highlighting macroeconomic indicators, Aurangzeb said the current account recorded a surplus of $1.9 billion during July–April FY25, driven by strong IT exports, which were about $3.5 billion. 'Remittances are projected to reach $37–38 billion by year-end, up from $27 billion two years ago,' he said. Talking about macroeconomic indicators, the minister said, 'public debt and debt-to-GDP ratio was 68 per cent, which is now 65 per cent. He said forex reserves as of June 30, 2024, were $9.4 billion, which was a remarkable recovery from 2023 when Pakistan was down to two weeks of import cover. He said foreign exchange reserves rose to $16.64 billion in 2025, boosted by improved economic indicators and renewed investor confidence. Of the total reserves, the State Bank of Pakistan held $11.5 billion, while commercial banks retained $5.14 billion. He said that the increase follows improved credit ratings, with Fitch upgrading Pakistan's sovereign rating from CCC to B- with a stable outlook. The minister announced plans to privatise 24 state-owned enterprises (SOEs) in the coming year, after curbing annual losses of Rs800 billion. Aurangzeb said that the size of Pakistan's economy increased to USD 411 billion in the current fiscal year, which was USD 372 billion in the previous fiscal year. The survey showed that Pakistan's literacy rate remained at 67 per cent, with Punjab having the highest literacy rate at 66 per cent. Sindh had a literacy rate of 57.5 per cent, Khyber Pakhtunkhwa had 51 per cent, and Balochistan had a literacy rate of 42 per cent. It showed that exports were $27.3 billion while imports $48.6 billion. Meanwhile, National Assembly Speaker Ayaz Sadiq approved the schedule for the upcoming sessions to present and discuss the federal budget for 2025–26. According to the approved schedule, the budget will be presented in the National Assembly on June 10. The assembly would remain in recess on June 11 and 12, and the budget debate would commence on June 13. The general discussion on the budget will continue until June 21, and the debate will formally conclude on the same day. On June 23, the National Assembly will hold a discussion on the charged expenditures for the fiscal year 2025–26, which will be followed by debates and voting on Demands for Grants and Cut Motions on June 24 and 25. The Finance Bill 2025 will be taken up for approval by the National Assembly on June 26, while Supplementary Grants and other related matters will be discussed and voted on June 27.
Express Tribune
25-05-2025
- Business
- Express Tribune
Government allocates 2,000 MW In first phase for bitcoin mining and AI data centers in landmark digital infrastructure push
The council has also entered into discussions with international Bitcoin mining firms to leverage Pakistan's surplus electricity. PHOTO: PIXABAY Listen to article In a groundbreaking move to transform Pakistan into a global leader in digital innovation, the Government of Pakistan has announced the allocation of 2,000 megawatts (MW) of electricity in the first phase of a national initiative to power Bitcoin mining and Artificial Intelligence (AI) data centres. This ambitious initiative is spearheaded by the Pakistan Crypto Council (PCC)—a government-backed body under the Ministry of Finance—as part of a broader strategy to monetise surplus electricity, create high-tech jobs, attract billions of dollars in foreign direct investment, and generate billions of dollars for the government. Finance Minister Senator Muhammad Aurangzeb stated that this strategic allocation marks a pivotal moment in Pakistan's digital transformation journey, unlocking economic potential by turning excess energy into innovation, investment, and international revenue. Pakistan is uniquely positioned—both geographically and economically—to become a global hub for data centres. As a digital bridge between Asia, Europe, and the Middle East, Pakistan offers the most strategic location in the world for data flow and digital infrastructure. Since the inception of the Pakistan Crypto Council, there has been tremendous interest from global Bitcoin miners and data infrastructure companies. Several international firms have already visited the country for exploratory discussions, and following this landmark announcement, more global players are expected to visit in the coming weeks. Pakistan's underutilised power generation capacity is now being repurposed into a high-value digital asse, according to a statement by the finance ministry. AI data centers and Bitcoin mining operations, known for their consistent and heavy energy usage, provide an ideal use case for this surplus. Redirecting idle energy, especially from plants operating below capacity, allows Pakistan to convert a long-standing financial liability into a sustainable, revenue-generating opportunity. Bilal Bin Saqib, CEO of the Pakistan Crypto Council, emphasised the transformative nature of this initiative. He explained that with proper regulation, transparency, and international collaboration, Pakistan can become a global crypto and AI powerhouse. He added that this energy-backed digital transformation not only unlocks high-value investment but enables the government to generate foreign exchange in USD through Bitcoin mining. Moeover, as regulations evolve, Pakistan can accumulate Bitcoin directly into a national wallet, marking a monumental shift from selling power in Pakistani Rupees (PKR) to leveraging digital assets for economic stability. By offering stable and affordable energy, Pakistan presents a highly competitive environment compared to regional counterparts like India and Singapore, where rising power costs and land scarcity limit scalability. Pakistan's strategic advantage is further underscored by the global context: while AI data centres' demand has soared to over 100GW, global supply remains around 15GW. This massive shortfall creates an unprecedented opportunity for countries like Pakistan with surplus power, land, and an emerging regulatory framework. The country's digital connectivity has also been significantly strengthened by the landing of the world's largest submarine internet cable. The Africa-2 Cable Project, a 45,000-kilometre global network connecting 33 countries through 46 landing stations, has now landed in Pakistan. This milestone enhances Pakistan's internet bandwidth, latency, and resilience through redundant fiber routes, key for ensuring high availability and operational continuity for AI data centers. With a population of over 250 million and more than 40 million crypto users, Pakistan holds immense potential as a regional leader in digital services. Establishing local AI data centers will not only address growing concerns around data sovereignty but will also enhance cybersecurity, improve digital service delivery, and empower national capabilities in AI and cloud infrastructure. These centers are expected to create thousands of direct and indirect jobs, catalysing the development of a skilled workforce in engineering, IT, and data sciences. This announcement marks only the first phase of a broader, multi-stage digital infrastructure rollout. Future developments are expected to include renewable energy-powered facilities—leveraging Pakistan's immense wind (50,000 MW potential in the Gharo-Keti Bandar corridor), solar, and hydropower resources—strategic international partnerships with leading blockchain and AI companies, and the establishment of fintech and innovation hubs. These efforts will be complemented by proposed incentives such as tax holidays, customs duty exemptions on equipment, and reduced taxes for AI infrastructure developers. Pakistan's combination of surplus power, geographic advantage, advanced subsea cable connectivity, renewable energy potential, and a large, digitally engaged population creates a compelling case for becoming a regional epicenter of Web3, AI, and digital innovation. With the right incentives, strategic investments, and collaborative partnerships, Pakistan is positioning itself not only as a destination for global digital infrastructure but also as a sovereign economy that can accumulate digital assets, export digital services, and lead in the next generation of technological transformation.
