Defence Minister Khawaja Asif announced on Tuesday that Pakistan’s economy has emerged from a critical phase, likening it to moving out of the “ICU.” He projected that the country could achieve a GDP growth rate between 6% and 7% in the coming years. This statement followed the federal government’s unveiling of an Rs18,771 billion (Rs18.8 trillion) budget for the fiscal year 2026-27, aimed at stabilizing the economy amid fiscal challenges driven by energy costs and regional developments.
During the National Assembly’s debate on the Federal Budget 2026-27, Asif recalled that when the current government took office, Pakistan was on the brink of default. However, through careful economic management, stability has been restored. He expressed confidence that the economy is now on a path toward sustained growth, with the GDP expected to rise significantly within the next one to two years.
The minister also assured the assembly that any reductions in petroleum prices would directly benefit the public. He emphasized the need for a fair and rational taxation system designed to promote voluntary compliance and support the country’s broader economic progress.
In a significant development, Asif highlighted Pakistan’s recent diplomatic successes, attributing these achievements to the leadership of Prime Minister Shehbaz Sharif, Chief of Defence Forces Field Marshal Syed Asim Munir, and the national leadership’s prudent decision-making and diplomacy. Notably, Islamabad secured a historic diplomatic breakthrough when US President Donald Trump announced that Washington had signed a memorandum of understanding with Iran to end the Middle East conflict. Pakistan has played a key mediating role between Tehran and Washington since the conflict escalated on February 28, following US-Israel strikes on Iran.
Addressing the situation in Azad Jammu and Kashmir (AJK), the minister stressed that decisions regarding refugee seats should be determined by the elected assembly and local representatives, rather than influenced by external pressure groups. He condemned attempts by foreign-funded entities to interfere in local politics, noting that all legitimate concerns have been addressed through constitutional and democratic processes.
Asif also opposed proposals that could create ethnic divisions, underscoring Pakistan’s long history of peaceful coexistence among diverse communities while maintaining their cultural identities. He called on lawmakers to refrain from politicizing issues related to national unity and security, urging a focus on collective harmony and stability.
