logo
PTI says ‘federal budget favours elite, ignores masses'

PTI says ‘federal budget favours elite, ignores masses'

Business Recorder14 hours ago

ISLAMABAD: The opposition Pakistan Tehreek-e-Insaf (PTI) on Tuesday sharply criticised the federal budget for 2025-26, branding it 'the worst in the country's history' and accusing the government of favouring the elite while neglecting ordinary citizens.
Leading PTI's charge during the ongoing budget debate in the National Assembly, acting PTI chairman Barrister Gohar Ali Khan criticised the absence of new development projects, accusing the government of failing to introduce economic reforms or curb inflation.
He described the budget as misleading, arguing that the reported 3.5 per cent inflation rate was far from reality. 'If that figure were accurate, the State Bank wouldn't maintain an 11 per cent policy rate.'
Budget 2025-26: Pakistan targets 4.2% growth as Aurangzeb presents proposals 'for a competitive economy'
He compared Pakistan's $62 billion federal budget to India's Uttar Pradesh state, which he claimed had a budget of $97 billion, highlighting inefficiencies and waste in government spending, including the presence of 16 directors general in Customs compared to India's five.
Barrister Gohar proposed tax relief measures, such as exempting individuals earning up to Rs2.2 million annually from income tax and abolishing stamp duty on property in Islamabad.
He strongly opposed a proposed amendment to Section 169, which would require taxpayers to deposit 50 per cent of disputed amounts to obtain stay orders. 'This strips taxpayers of their basic right to appeal,' he said.
Criticising the National Assembly's performance, he claimed it failed to meet even basic legislative standards, often convening for less than half an hour, and called the Rs15 billion allocation for the Assembly excessive compared to India's Rs5 billion for its much larger parliament.
Gohar also criticised Defence Minister Khawaja Asif for his silence when Punjab lawmakers approved a salary increase for themselves. He accused the minister of resorting to political rhetoric only after the issue gained traction in the federal capital, rather than taking any concrete steps to halt what he described as an unjustified pay hike.
He called for an end to what he described as abuse of power and expressed concern over reduced health and education budgets. 'There's not even a mention of artificial intelligence in the recent presented budget,' he regretted, praising the PTI's previous IT sector initiatives, which he claimed played a strategic role in past confrontations with India.
The PTI leader said the budget had been tailored to suit powerful interests, pointing to reduced tariffs on imported vehicles as evidence. He urged the government to adopt a more inclusive approach by considering opposition proposals, citing the example of former Indian Prime Minister Manmohan Singh, who in the 1990s incorporated recommendations from his predecessor Atal Bihari Vajpayee as a gesture of bipartisan cooperation.
In contrast, several lawmakers from the ruling coalition and allied parties defended the budget. Minister for Water Resources Mueen Watto hailed it as 'ideal,' claiming it reflected prudent financial management. He claimed improved economic indicators such as declining inflation, increased foreign reserves, and rising remittances.
Addressing India's decision to suspend the Indus Waters Treaty, he assured lawmakers that Pakistan would safeguard its water rights and announced Rs130 billion for expanding water storage infrastructure, including the Diamer-Bhasha, Mohmand, and Kurram-Tangi dams.
Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam said the budget included relief measures for employees and other vulnerable groups.
Syed Aminul Haq echoed government claims of economic recovery, adding that global financial institutions had recognised Pakistan's fiscal improvements.
However, criticism also emerged from within the House. Lawmakers across parties highlighted areas of concern, particularly under-funding in health and education. Shahida Begum, Shahida Akhtar Ali of JUI-F, and Sehar Kamran expressed dissatisfaction with the low budgetary allocation to these sectors.
'The government should allocate at least four per cent of GDP to education and health,' Akhtar Ali said, also noting that PTV employees had gone unpaid for three months.
Shazia Marri of the PPP rejected the proposed 18 per cent tax on solar panels and the carbon levy, while criticising the government's failure to raise the minimum wage. 'Employees' concerns are being ignored,' she said.
Shahram Khan Tarakai of PTI also opposed the solar panel tax, while Sadiq Ali Memon of PPP demanded it be scrapped and the minimum wage raised to Rs50,000.
Misbah Uddin and Anwar Ali Taj said the tribal districts had been overlooked in the budget and called for an updated Benazir Income Support Programme (BISP) survey to include more deserving beneficiaries.
Syed Hussain Tariq and Abdul Aleem Khan underscored the importance of supporting the agricultural sector and achieving core economic goals.
Mohammad Ahmed Chattha advocated for motorway links to Wazirabad, while Ahmed Saleem Siddiqui proposed developing coastal tourism and the ship-breaking industry. Tehmina Daultana of ruling PML-N urged greater support for women, while Nikhat Shakeel Khan demanded better public transport in Karachi and poverty reduction measures.
Mian Khan Bugti praised the Rs250billion allocation for Balochistan and the focus on connectivity projects. Meanwhile, Muhammad Ilyas Chaudhry pushed for incentives for overseas Pakistanis to invest in the country. Shaista Khan paid tribute to the armed forces and federal leadership for their 'strong response' to Indian aggression, while accusing the PTI-led Khyber Pakhtunkhwa government of corruption and failing to deliver basic services.
Copyright Business Recorder, 2025

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

India markets regulator eases rules for foreign investors who only buy government bonds
India markets regulator eases rules for foreign investors who only buy government bonds

Business Recorder

time39 minutes ago

  • Business Recorder

India markets regulator eases rules for foreign investors who only buy government bonds

MUMBAI: India's markets regulator on Wednesday reduced the regulatory requirements for foreign investors who invest exclusively in the country's government bonds. The Securities and Exchange Board of India's board, which met in Mumbai, also made it easier for state-owned companies to delist their shares from stock exchanges. Foreign investors buying only government bonds need not disclose their investor group details as these securities carry low risk, SEBI said. Foreign buying of Indian shares and bonds are subject to limits and investors have to disclose their investor group details to enable monitoring of the limits. The markets regulator decided to allowed resident and non-resident Indians and so-called overseas citizens to contribute to the corpus of foreign investors who exclusively buy Indian government bonds. At the board meeting, the regulator also allowed founders of startups to retain stock options after the company goes public. India markets regulator fixes weekly derivative expiry days for exchanges, source says Currently, after startups list, founders are designated as shareholders who can influence the company decisions, and cannot hold stock options. The regulator also approved some state-owned companies to delist from stock exchanges without approval from minority shareholders. Shares of many state-owned firms trade at relatively high market prices due to their limited free float, making it financially challenging for the government to buy out minority shareholders and delist the firms, SEBI had said last month. The regulator has now allowed state-owned companies, which have a government shareholding of at least 90%, to delist at a fixed price, which has to be 15% more than the so-called floor price.

Digital sales tax stays with provinces, solar GST cut to 10%: Dar
Digital sales tax stays with provinces, solar GST cut to 10%: Dar

Business Recorder

time2 hours ago

  • Business Recorder

Digital sales tax stays with provinces, solar GST cut to 10%: Dar

Deputy Prime Minister and Foreign Minister, Senator Muhammad Ishaq Dar on Wednesday said that the digital sales tax on services would remain within the jurisdiction of provinces, while the proposed 18% GST tax on solar panels had been reviewed and revised down to 10% following consultations. Speaking in the National Assembly, Senator Dar stated that after detailed discussions with coalition partners and relevant stakeholders, consensus had been reached on resolving several contentious budgetary issues. As part of the revisions, it was agreed that the imposition of digital sales tax on services falls under the constitutional domain of provincial governments. 'The concerns regarding digital taxation were valid. We held in-depth consultations with all stakeholders, including the Federal Board of Revenue (FBR), and it has been decided that the matter will be clearly addressed in the Finance Minister's budget winding-up speech,' he said. Mian Zahid concerned over proposed 18pc tax on solar panels Dar further clarified that the earlier proposal of imposing 18% General Sales Tax (GST) on solar panels had sparked considerable debate. Upon review, it was revealed that 54% of components used in solarization were already taxed under the existing regime, and the 18% tax applied only to the remaining 46%. However, after mutual consultations, we have now proposed reducing the solar GST from 18% to 10%, he announced. He emphasized that tax proposals are essential for revenue generation, and any relief in one area necessitates compensation elsewhere. He pointed out that when the cabinet found the initial proposal of a 6% salary increase for government employees insufficient and raised it to 10%, corresponding budgetary adjustments also had to be made. 'We must move forward collectively. Our approach is rooted in consensus and cooperation,' he said. enter link description here Highlighting another key issue, Dar said it was decided to maintain funding for a proposed university in Sindh under the Public Sector Development Programme (PSDP) at Rs 4.7 billion through the Higher Education Commission (HEC). He also acknowledged valid concerns raised by MNAs regarding the closure of the Public Works Department (PWD) and confirmed that the Pakistan Infrastructure Development Company Limited (PIDCL) would now oversee all federal development projects across provinces. He said, while PIDCL was initially formed for Sindh, its mandate has now been expanded to oversee development projects across all provinces. Senator Dar concluded by reaffirming the government's willingness to address genuine concerns through mutual dialogue and constructive engagement. Meanwhile, Pakistan Peoples Party (PPP) MNA Syed Naveed Qamar thanked Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar for accommodating key PPP and Sindh government budget proposals. Speaking in the National Assembly, Qamar said the government accepted major demands raised by PPP lawmakers during the budget debate. He welcomed the reduction of proposed sales tax on solar equipment from 18% to 10%, aligning with the party's stance. He also acknowledged the government's decision to expand the mandate of the Pakistan Infrastructure Development Company Limited (PIDCL) to all provinces, instead of limiting it to Sindh, effectively addressing another PPP concern.

India audit watchdog to complete probe of Gensol, IndusInd Bank within six months, official says
India audit watchdog to complete probe of Gensol, IndusInd Bank within six months, official says

Business Recorder

time3 hours ago

  • Business Recorder

India audit watchdog to complete probe of Gensol, IndusInd Bank within six months, official says

NEW DELHI: The Financial Reporting Review Board (FRRB) will complete its probe into audit reports of Gensol Engineering and IndusInd Bank within six months, the president of the country's audit watchdog said Monday. 'The FRRB will scrutinise all audit documentation to determine if any issues exist and will submit its report within six months,' said Charanjot Singh Nanda, President of the Institute of Chartered Accountants of India (ICAI). Gensol Engineering is facing regulatory action amid concerns that it may have diverted business funds raised for personal purchases. India's markets regulator in April barred Gensol Engineering's founders from the securities markets, alleging that they routed company funds to related parties and used them for unrelated expenses, treating the company's funds as a 'promoters' piggybank.' Promoters in Indian markets are large shareholders who can influence company decisions. IndusInd Bank CEO quits as accounting lapse triggers management shakeup If the review finds audit reports fail to present a true and fair view, the FRRB may refer the matter to ICAI's disciplinary committee for appropriate action against auditors, Nanda told reporters in New Delhi. Separately, IndusInd Bank disclosed in March that years of incorrect accounting of internal derivative trades led to a $230 million hit to its accounts for the financial year ended March 31. An internal audit of its microfinance business found about $80 million was incorrectly recorded as interest across three quarters, which it reversed in January.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store