ISLAMABAD: Adviser to the Khyber Pakhtunkhwa Chief Minister on Finance Muzzammil Aslam on Monday said the Shehbaz Sharif government was set to present its fifth consecutive budget with the country facing historic levels of unemployment and inflation, and the economy remained stagnant.

Speaking at a news conference at KP House in the capital, Mr Aslam claimed no government in Pakistan’s history had presented five consecutive budgets. Mr Aslam stated that, according to the government, the economic growth rate would reach 3.7 per cent by the end of the current fiscal year, while the target for next year was 4pc. He said the extensive promotion of the Uraan Pakistan initiative had created the impression that the economy would witness significant growth, but nothing had improved.

He said the government had projected inflation at 8.2pc for the next fiscal year. He questioned the government’s claim of 3.7pc economic growth this year when major crops recorded growth of only 0.6pc. He further pointed out that while the government claimed livestock grew by 3.8pc, it simultaneously reported fodder crops registering negative growth of 2.1pc, which, according to him, reflected the credibility of the government’s growth claims.

Mr Aslam said the government was highlighting only a few selected sectors to claim industrial growth. According to official figures, the automobile industry grew by 60pc, auto transport equipment by 40pc, furniture by 20pc, and football manufacturing by 23pc. However, he claimed, electricity generation declined by 10pc.

Muzzammil Aslam questions Centre’s 3.7pc growth claim

He said the federal government also claimed that small-scale industries were growing at 8.5pc, but its own statistics did not match, raising questions about how economic growth could be achieved under such circumstances.

He said the federal government claimed the size of the economy had reached $453 billion, which should result in higher per capita income. However, he noted that data from the Planning Commission indicated the worst levels of unemployment and poverty in the last 21 years. He questioned how such economic expansion could coincide with worsening social indicators.

Mr Aslam said that while an increasing number of people are leaving the country in search of employment opportunities, the government claims to have created 1.8 million jobs. According to government figures, 1.1 million jobs were created in the services sector, 400,000 in industry, and 300,000 in agriculture. He argued that with major crops growing by only 0.6pc and industries facing severe challenges, the government’s employment claims appeared questionable.

He also criticised the government’s trade projections, calling them highly disappointing.

According to him, the government has set an export target of $32.8bn for 2026-27, while Pakistan’s exports had already reached around $32bn in 2022. He questioned how such a modest increase could support claims of strong economic growth, and he also noted that the government projects imports to rise to $70bn.

He further noted that the government had set a remittance target of $42bn. He argued that when a country’s remittance target exceeds its export target, it reflects weaknesses in economic growth and productive capacity.

Mr Aslam said the government had announced a development budget of Rs1.126 trillion, while the total cost of the announced projects stands at Rs10tr. This means that only Rs1.126tr will be allocated against projects worth Rs10tr.

Published in Dawn, June 2nd, 2026