Pakistan budget for 2025-26 to consolidate economic gains, NA told

Business Recorder

21-06-2025

ISLAMABAD: Amid criticism from opposition lawmakers, Minister of State for Finance Bilal Azhar Kayani on Friday said that the budget is aimed at further consolidating economic gains, providing relief to the people, and continuing the reform process.
He said the reforms would also extend to tax fraud investigations, with new safeguards to prevent arbitrary arrests. Under the new policy, arrests during investigations would only occur in cases of sales tax fraud exceeding Rs50 million, and only after approval from a three-member Federal Board of Revenue (FBR) panel.
The opposition lawmakers; however, sharply criticised the budget, saying it lacked vision and heavily favoured the handful elite. They decried the increase in allocations to the Benazir Income Support Programme (BISP), which rose from Rs592 billion to Rs716 billion, arguing it came at the expense of education, whose allocation remains comparatively low.
PTI says 'federal budget favours elite, ignores masses'
The opposition also slammed what they termed a symbolic 10 percent salary raise for government employees and a seven percent hike in pensions for retired government employees. They noted the budget failed to increase the minimum wage, allegedly due to pressure from industrialists.
The Finance Ministry did announce some tax relief for salaried individuals, a promise previously made by Prime Minister Shehbaz Sharif. But opposition members ridiculed the tax relief for those earning above Rs1.2 million annually, calling it a 'cruel joke.'
At the outset of the session, Federal Minister for Finance Muhammad Aurangzeb laid four Statutory Regulatory Orders (SROs) before the House, issued under the Customs Act and Income Tax Ordinance. He confirmed to the speaker that he would conclude the budget debate on Monday.
Several lawmakers belonging to both opposition and treasury participated in the ongoing debate on the Finance Bill for 2025-26, voicing a wide range of concerns and suggestions.
Pakistan People's Party (PPP) MNA Nafeesa Shah called for greater support to the agriculture sector. Saba Talpur echoed this sentiment, urging the government to cut prices of seeds, fertilisers, and pesticides to support farmers.
Junaid Akbar Khan of PTI said the budget had nothing for the people and called attention to sacrifices made by Khyber Pakhtunkhwa in the war on terror.
Agha Rafiullah of PPP demanded that the government review proposed family pension reforms and remove limitations affecting spouses and disabled children.
Sahibzada Hamid Raza of SIC criticised the apparent neglect of health and education sectors in the budget.
Minister for Religious Affairs Muhammad Yousaf described the budget as balanced and praised the government's handling of Hajj arrangements, noting that over 115,000 Pakistani pilgrims participated this year. Saudi Arabia awarded Pakistan for its management, and planning for next year's pilgrimage has already begun, he added.
Qaiser Ahmed Sheikh, Minister for the Board of Investment, said macroeconomic indicators were improving, with inflation falling and remittances rising. He urged all political parties to agree on a Charter of Economy to attract investors.
Minister for Public Affairs Rana Mubashir Iqbal said Rs250 billion had been allocated for Balochistan, including Rs100 billion for road infrastructure and further allocations for dams, agriculture, energy, education, and health.
Minister of State for Religious Affairs and Interfaith Harmony Kesoo Mal Kheal Das stressed that no new taxes had been imposed on agriculture and reaffirmed the government's commitment to completing the Sukkur-Karachi motorway.
Murtaza Mahmud lauded the government's steps toward economic stability, while Pullain Baloch called for tax relief for the public.
Law Minister Azam Nazeer Tarar reiterated Pakistan's stance against Israeli aggression – whether in Gaza, Lebanon, Iran, or elsewhere – stating that the country will continue to oppose and condemn such actions.
Other lawmakers who took part in the debate included Fayyaz Hussain, Azimuddin Zahid, Shaharyar Khan Mahar, Osama Sarwar, Noor Alam, Farah Naz and Zulfiqar Ali, Zahra Wadood.
Copyright Business Recorder, 2025