The Ministry of Finance on Thursday firmly dismissed reports claiming that the responsibility for preparing the federal budget for the fiscal year 2026–27 had been transferred to Deputy Prime Minister Ishaq Dar. It emphasized that the budget-making process continues to be led by Finance Minister Muhammad Aurangzeb and the Finance Division.
In an official clarification, the ministry rejected assertions that the Finance Division had been sidelined due to allegedly substandard initial work on the budget. It reiterated that the preparation of the federal budget remains firmly within the Ministry of Finance’s jurisdiction.
Notably, the ministry highlighted that the budget formulation is ongoing under the direct supervision of the finance minister, who also serves on a high-level committee recently established by Prime Minister Shehbaz Sharif to oversee fiscal matters.
The statement was issued following media reports suggesting that the government had assigned Dar to supervise the budget process through a committee tasked with reviewing and refining tax proposals developed by the Tax Policy Office. The ministry stressed that such reports gave a misleading impression of discord within the government.
It underscored that the federal budget is a collective constitutional responsibility conducted under the cabinet’s oversight, with the Ministry of Finance maintaining its central and constitutional role in the process.
Meanwhile, Pakistan and the International Monetary Fund (IMF) have initiated discussions regarding the upcoming budget as the government works to finalize fiscal measures and reforms aligned with its IMF programme.
In its inaugural meeting, the committee directed the Federal Board of Revenue (FBR) to implement advanced digital systems, including artificial intelligence-based tools, aimed at detecting tax evasion, under-reporting, and fraudulent tax returns.
The government is targeting approximately Rs15.3 trillion in tax revenue for the next fiscal year. Officials revealed that new taxes amounting to around Rs215 billion are under consideration, alongside relief measures for selected sectors.
Under the IMF agreement, Pakistan is obligated to introduce fiscal measures totaling about Rs430 billion, which include Rs215 billion in new taxes and an additional Rs215 billion through enhanced enforcement and compliance efforts.
