Introduction / Executive Summary

The Government presented the Finance Bill 2025 with the aspiration to “foster competition” and “economic productivity”. The budget followed an economic stabilization achieved under the framework of the International Monetary Fund (IMF). The stabilization achieved on account of falling inflation to 4.61 percent in July-May 2024-25, from 24.5 percent last year; a current account surplus of $1.8 billion from a deficit of $1.57 billion last year; and a primary surplus of 2.2 percent of GDP compared to a surplus of 0.4 percent last year. However, despite this stabilization, economic growth remains weak, with GDP expanding by just 2.68% in FY2025—a figure contested by independent experts, who argue it overstates the real economic momentum.