ISLAMABAD: Prime Minister Shehbaz Sharif on Friday emphasised the need for strong national security as the federal cabinet approved the 2026-27 budget ahead of its presentation in National Assembly.
Addressing a federal cabinet meeting, the prime minister said that no nation could effectively manage its affairs or achieve progress without a robust and invincible security. “Today, we are presenting the third budget of our government,” he said, acknowledging the challenges faced during its preparation.
The prime minister outlined priorities including the construction of water reservoirs and dams, and the development of domestic energy resources, citing solar, wind, and battery technologies.
He also indicated that the budget would propose measures aimed at tax relief, fostering economic growth.
PM Sharif highlighted the government’s ongoing dialogue with the International Monetary Fund (IMF) as part of the budget process. He recounted a 30 to 45-minute phone conversation with IMF Managing Director Kristalina Georgieva, who praised Pakistan’s economic progress.
The prime minister also emphasised extensive consultations with the coalition partners, particularly the Pakistan People’s Party (PPP). “We had very detailed conversations with our ally PPP, which were successful,” he said, thanking other coalition members for their unconditional support.
PM Sharif noted that the federal government had engaged in comprehensive discussions with all four provinces over the past one and a half months to explain the need for additional funds.
He described these dialogues as very meaningful and said the PML-N and PPP had agreed to curtail development and other expenditures at all government levels to create fiscal space for strategic requirements.
During his remarks, PM Sharif acknowledged the support of key political figures, including PML-N President Nawaz Sharif, whom he described as his leader, and Punjab Chief Minister Maryam Nawaz for prioritising federal needs in defence and water security.
He also thanked Sindh leadership, including President Asif Ali Zardari and PPP Chairman Bilawal Bhutto Zardari for cooperating in the interest of the country, and expressed appreciation for the big-heartedness of Balochistan Chief Minister Sarfraz Bugti and the positive sentiments of Khyber Pakhtunkhwa Chief Minister Sohail Afridi. “There can be no grander demonstration of national unity, solidarity and cohesion than this,” he said.
PM Sharif acknowledged that past budgets had imposed taxes due to national and IMF requirements, noting that these measures were necessary to stabilise the economy and expand avenues for growth. He expressed gratitude to Pakistan’s 240 million citizens for enduring inflation with patience.
Highlighting economic indicators, he said inflation had fallen from 38 percent to single digits over the past two years, before rising slightly due to the ongoing Middle East conflict.
He noted that the policy rate had decreased from 22.5 percent to 11 percent but had to be increased due to the impact of the US-Iran war.
“Today, our economy is stable, and we should hope that with this third budget, the wheel of our economy will pick up pace, provided we collectively work hard and fulfil our responsibilities,” he said.
PM Sharif began his address by recalling attending the funeral prayers of personnel who had died in the line of duty, including two Christians. “It was a heart-wrenching scenario that brought tears to every eye,” he said, recalling his meetings with their families.
Copyright Business Recorder, 2026