The National Assembly has unanimously approved Rs. 3 trillion for the armed forces in defence budget allocation. Lawmakers cleared 125 demands for grants for the 2026-27 fiscal year. Therefore, this paved the way for passing the Rs. 18.77 trillion federal budget.
This defence budget allocation passed without a single objection. Additionally, no cut motions were moved against it. So it cleared the house smoothly compared to other contested items in the session.
The lower house is scheduled to pass the budget on Tuesday, June 23. Meanwhile, supplementary grants will follow on June 24. The approved demands also cover expenditures across ministries, divisions, and government departments.
The Assembly also approved Rs. 661.27 billion for the energy sector. This includes Rs. 578.84 billion for the Power Division and Rs. 1.11 billion for the Petroleum Division. Additionally, lawmakers approved Rs. 76.61 billion in external development loans for the Power Division.
Several other major allocations passed as well. These included Rs. 1,162 billion for pensions and Rs. 2,504 billion for grants and subsidies. Meanwhile, the Federal Board of Revenue received Rs. 85.6 billion, while other development expenditures got Rs. 231.08 billion.
Multiple institutions also secured funding approvals. These included the Cabinet Division, the Prime Minister’s Office, and the National Disaster Management Authority. Furthermore, the Special Technology Zone Authority, the Board of Investment, and the Higher Education Commission also received funding. Additionally, so did the National Assembly, the Senate, and ministries covering climate change, commerce, communications, information technology, health, railways, science and technology, and water resources.
Power Minister Sardar Awais Ahmad Khan Leghari defended the government’s performance in the energy sector. He said the fiscal burden had declined from Rs. 1,287 billion in FY25 to Rs. 893 billion. Moreover, he expects it to fall further to Rs. 700 billion.
Leghari also addressed circular debt directly. He said it had dropped by Rs. 780 billion, down from Rs. 2.4 trillion. Meanwhile, losses at power distribution companies fell from Rs. 591 billion to Rs. 335 billion.
According to Leghari, revised agreements with Independent Power Producers will save Rs. 3.5 trillion in future liabilities. Additionally, he said that 76 percent of electricity generation now comes from indigenous sources. Furthermore, a Rs. 50 billion program has launched to eliminate economic load shedding by June next year.
Finance Minister Muhammad Aurangzeb wrapped up the debate on a confident note. He expressed certainty that the government would meet its revenue targets next fiscal year. Also, he said no new taxes had been introduced, and Rs. 450 billion had been recovered through litigation.
Aurangzeb also highlighted improving macroeconomic indicators. These included economic growth of 3.7 percent and historically high primary surpluses. Additionally, he pointed to current account surpluses in both the current and previous fiscal years.
However, opposition lawmakers pushed back strongly. They argued the budget offered little relief to ordinary citizens. Moreover, they said poverty levels had worsened and questioned the effectiveness of reforms at the Federal Board of Revenue. Finally, they accused the government of increasing the burden on existing taxpayers instead of expanding the tax base.
