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Minister hints Field Marshal lauds strategic Foresight oF planning at raising defence budget due to regional political leadership during Marka-e-haq security situation Sunday, 25 May, 2025 I 27 Ziquad, 1446
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COAS ACKNOWLEDGES UNWAVERING ROLE OF YOUTH AND MEDIA IN COUNTERING INDIAN DISINFORMATION CAMPAIGN
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RAWALPINDI
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GEN MUNIR HOSTS DINNER TO HONOUR POLITICAL LEADERSHIP, STEADFAST COMMITMENT OF ARMED FORCES, AND INDOMITABLE SPIRIT OF PEOPLE DURING OPERATION BUNYANUM MARSOOS
STAFF REPORT
HIEF of Army Staff Field Marshal Asim Munir on Saturday lauded the strategic foresight of the country’s political leadership during Marka-e-Haq that ensured the country’s success in Operation Bunyan-um-Marsoos against India, according to the military’s media wing. According to a press release issued by the Inter-Services Public Relations (ISPR), while hosting a dinner, the army chief expressed profound gratitude to the political leadership for their strategic foresight during Marka-e-Haq and lauded the seamless inter-services coordination that ensured operational success in Operation Bunyanum Marsoos. Field Marshal Munir also acknowledged the unwavering role of the youth and media in countering the disinformation campaign waged by India, describing them as a “steel wall” against malign propaganda. Earlier this week, the government
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promoted Gen. Munir to the rank of field marshal in recognition of his “strategic leadership and decisive role” in defeating India during the military confrontation between the two countries that culminated with a US-mediated ceasefire. Field marshal is the highest rank in armies modeled after the British Army. In Pakistan, it was awarded only once before, to General Mohammad Ayub Khan in 1959. President Asif Ali Zardari and Prime
Minister Shehbaz Sharif formally decorated the army chief with the rank of field marshal at a ceremony held at the presidency earlier this week. “The COAS also commended the outstanding contributions of Pakistani scientists, engineers, and diplomats, whose professionalism and resolve proved critical during the conflict,” the press release said. “The dinner was hosted to honor the political leadership, steadfast commitment
of the armed forces, and the indomitable spirit of the people demonstrated during Marka-i-Haq and Operation Bunyanum Marsoos,” it added. According to the ISPR, the distinguished participants of the event included President Asif Ali Zardari, Prime Minister Muhammad Shehbaz Sharif, Deputy Prime Minister/Foreign Minister, the Senate Chairman, the National Assembly Speaker, Federal Ministers, Governors, Chief Ministers, Chairman Joint Chiefs of Staff Committee, air and naval staff chiefs, senior leadership of major political parties, high-ranking government officials, and senior officers from the three services. “Participants paid tribute to the sagacious leadership that steered the nation through a defining moment, hailed the courage and sacrifice of the armed forces, and commended the resolute patriotism of the Pakistani people,” it added. “The evening stood as a powerful affirmation of national unity and the collective resolve to advance with renewed strength and cohesion,” the press release said.
LAHORE
STAFF REPORT
Federal Minister for Planning Development & Special Initiatives Ahsan Iqbal on Saturday hinted at raising the defense budget for the upcoming fiscal year 202526 following the recent escalation with India and New Delhi’s suspension of decade-long water-sharing Indus Water Treaty. The minister was talking with reporters after meeting a delegation at the Institution of Engineers Pakistan (IEP), led by its Secretary General Engr Ameer Zameer in Lahore. The planning minister declared that the budget had not been delayed due to any pressure from the International Monetary Fund (IMF), but Prime Minister Shehbaz Sharif’s upcoming visit to friendly nations and the Eidul Azha holidays. “We had very good meetings and negotiations with the IMF and as you’ve seen, they acknowledged our government’s efforts”, the minister asserted, adding the main reason behind the delay in budget was the PM’s five-day visit to friendly countries … and Eid after that. Earlier this month, the minister had announced that the federal budget would be presented on June 2, however, Adviser to the Finance Minister Khurram Schehzad said yesterday that the budget would be presented on June 10, while the Pakistan Economic Survey would be released a day earlier. “We decided to present the budget after Eid so that we can easily convene a meeting of parliament afterwards,” he added. Iqbal said that the government wants to minimise the burden on the general public, but noted that defence spending would increase to protect Pakistan’s sovereignty.
Govt expected to unveil Rs16.9tr FY26 budget, marking 11% cut in outlay PROFIT
STAFF REPORT
The federal government is expected to present a Rs16.9 trillion budget for fiscal year 2025– 26, down by 10.6% or Rs2 trillion from the Rs18.9 trillion budgeted for FY25, according to a report by Arif Habib Limited (AHL). The cut is primarily driven by a signifi-
cant decline in debt servicing costs, as the State Bank of Pakistan’s policy rate has halved to 11% from 22% last June, leading to a drop in markup payments to Rs8.5 trillion from Rs9.8 trillion previously budgeted. “The upcoming budget is likely to be more balanced, focusing on fiscal discipline and targeted relief,” said AHL Head of Research Sana Tawfik, while speaking to Busi-
ness Recorder. AHL forecasts a fiscal deficit of Rs6.2 trillion in FY26, with gross revenues estimated at Rs17.8 trillion. After provincial transfers of Rs8.04 trillion and a provincial surplus of Rs950 billion, net federal revenues are projected to align with these deficit estimates. FBR revenues for FY26 are projected at Rs14.3 trillion, reflecting a modest rise
driven by new taxation measures including: n GST on petroleum products at 3% n Income tax on retailers and wholesalers n Withdrawal of tax exemptions for FATA/PATA regions The tax-to-GDP ratio is expected to improve to 11.3%, up from 10.3% in FY25. AHL also estimated the federal PSDP at Rs1.1 trillion and PDL collection at Rs1.4 trillion.
On the expenditure side, the government is budgeting current expenditures at Rs16.2 trillion, thanks to the lower interest burden. However, a dip in non-tax revenue, notably from lower expected SBP profits (Rs1.5 trillion), could strain fiscal space. AHL projects GDP growth at 3.6% in FY26, up from an estimated 2.68% in FY25, with average inflation seen rising to 6.29%.