Budget has failed to provide any relief to agri sector, business community: PBF
'Contrary to Prime Minister Shehbaz Sharif's vision, the agriculture sector has once again been overlooked. With no substantial support, how does the government plan to achieve its 4.5% agricultural growth target?' Jawad questioned.
He noted that in the ongoing fiscal year (2024-25), farmers already delivered with 0.56% growth in response to government's priority, a warning sign that remains unaddressed.
Jawad further criticized the government's economic strategy, pointing out that this is the fourth budget by Shehbaz Sharif's team, yet it shows no roadmap for export-led growth. 'There was an expectation for a significant reduction in super tax, but the relief provided is negligible,' he added.
The PBF also voiced strong objections to certain provisions in the Finance Bill, specifically Sections 14AC, 14AD, and 37AA. 'These measures, along with the new tax collection target of PKR 14,131 billion — a nearly 9% increase from last year will fuel inflation,' Jawad warned. He also criticized the absence of any strategy to broaden the tax net, while the Federal Board of Revenue (FBR) has been granted unchecked powers that may stifle business activity.
Furthermore, the PBF called for a review of the allocation of over PKR 8 trillion to the provinces. 'Provinces should contribute to national development projects and the defence budget. The Punjab government currently enjoys a cash surplus and should return part of it to the federal government,' Jawad suggested.
The forum also rejected the possibility of an increased petroleum levy and opposed the introduction of a carbon levy. Jawad said the business community had hoped the government would announce a reduction in electricity tariffs to 9 cents per unit. Instead, the government plans shall take a loan of PKR 1,250 billion to settle the circular debt and the interest of that loan will be bear by consumers through electricity bills.
Jawad also said that the budget is disappointing for those who thought the economic stability achieved over the last year and a half would encourage implementation of deeper structural reforms for sustainable economic growth.
'There is not much in the budget to give hope for such a structural shift.'
Despite these concerns, the PBF official welcomed the reduction in Federal Excise Duty (FED) and withholding tax in the property sector and acknowledged a significant change in the regulatory duty regime as a positive step.
Copyright Business Recorder, 2025
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