Finance minister defends economic statistics, highlights 3.7% GDP growth, record remittances and ongoing tax reforms
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb has strongly rejected criticism of Pakistan’s GDP calculations and national economic data, asserting that all statistics are compiled according to internationally recognised standards and established methodologies.
Wrapping up the general debate on the Federal Budget 2026-27 in the National Assembly, the minister defended the credibility of official economic figures and described the budget as a balanced, growth-oriented and stability-focused financial plan prepared under the leadership of Prime Minister Shehbaz Sharif.
GDP calculations follow international standards
Responding to concerns raised by some lawmakers regarding alleged discrepancies in economic data, Aurangzeb said there had been no change in the methodology used to calculate national accounts.
He explained that the Pakistan Bureau of Statistics continues to compile economic data under the United Nations System of National Accounts (SNA 2008), using 2015-16 as the base year.
According to the minister, Pakistan recorded real GDP growth of 3.7 per cent in FY2025-26, measured at constant prices in line with globally accepted standards.
He added that national accounts are reviewed and approved by the National Accounts Committee, which includes representatives from federal and provincial governments, the State Bank of Pakistan, academia and other institutions.
Economy estimated at $452 billion
Aurangzeb said Pakistan’s nominal GDP for FY2025-26 is estimated at approximately $452 billion, calculated using prevailing market prices and average exchange rates.
He further stated that per capita income estimates are based on gross national income figures and population data derived from the 2023 population census.
The minister said the government’s economic strategy remains focused on achieving sustainable, export-led and inclusive growth while improving productivity and creating employment opportunities.
Stronger economic indicators highlighted
Highlighting recent economic performance, Aurangzeb said Large-Scale Manufacturing (LSM) registered growth of around 6.5 per cent, the highest expansion recorded in four years.
He also noted that Pakistan’s current account remained in surplus for 11 consecutive months, reflecting improving macroeconomic stability and stronger external sector performance.
According to the minister, workers’ remittances reached a record monthly level of $4.25 billion, with total remittances expected to exceed $41 billion by the end of the fiscal year.
The finance minister further revealed that information technology exports grew by nearly 20 per cent and are projected to surpass $4.5 billion, while Pakistani freelancers contributed approximately $1.6 billion in foreign exchange earnings.
Tax reforms and digital transformation
Aurangzeb said ongoing tax reforms are designed to broaden the tax base rather than place additional burdens on existing taxpayers.
He highlighted several initiatives, including the separation of tax policy from tax administration and the implementation of a technology-driven tax operating model based on automation, artificial intelligence and faceless systems.
The minister said these reforms would improve transparency, reduce direct interaction between taxpayers and officials and minimise opportunities for corruption and harassment.
He claimed that governance improvements and tax reforms had generated nearly $14 billion in additional tax revenue over the past two years.
Agriculture and housing support measures
On the agriculture front, Aurangzeb said the government had distributed Rs300 billion in interest-free financing under the Zarkhez programme, benefiting around 750,000 small farmers.
He added that support initiatives covering fertilisers, farm machinery, agricultural insurance and cold storage infrastructure were being expanded.
The minister also highlighted growing agricultural cooperation with China, noting that more than 800 Pakistani farmers, students and agricultural graduates had received specialised training in modern farming techniques.
In addition, he pointed to the government’s “Apna Ghar” housing initiative, which aims to stimulate construction activity and create employment opportunities.
Call for national consensus
Aurangzeb said the budget includes relief measures such as increases in salaries, pensions and minimum wages, along with digital services for pensioners through facial recognition-based life verification using the Pak-ID application.
He also noted that taxes had been reduced or eliminated on several essential healthcare products, including contraceptives and life-saving medicines.
Concluding his speech, the finance minister stressed that national consensus remains essential for sustaining Pakistan’s economic recovery and reform agenda.
He urged political parties, businesses and other stakeholders to support policies aimed at achieving long-term economic stability, sustainable growth and greater prosperity for the country.
