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Express Tribune
16 hours ago
- Business
- Express Tribune
Debate opens in Senate amid fierce criticism
The budget debate in the Senate commenced with a blistering criticism from Opposition Leader Shibli Faraz, who blasted the government's economic policy, calling the budget "controversial by birth" and a reflection of incompetence and unprofessionalism. "This is the fourth budget of this installed regime, and it has broken all previous records of misgovernance," Faraz said, accusing the government of fabricating data and manipulating figures. "The numbers in this budget seem compromised ... it's a statistical deception. In the past, budget figures were never questioned, but this time doubts are widespread," he added. Faraz went on to say the current budget had "shattered the foundations" of Pakistan's already fragile economy. Referring to the controversial February 8 elections, he alleged that just as the government had manipulated numbers, it was playing the same game with the budget. He lamented that in Punjab, farmers were forced to dump wheat on the roads, calling it a failure of the state to protect agriculture. "They've destroyed the agriculture sector and stifled industry. How can growth happen when even Letters of Credit (LCs) aren't being opened?" he said. "There is no coherent policy for industrial development, only discouragement." "This is an IMF-dictated, anti-people budget. We've heard the 'South Asian Tiger' fantasy before. It's time to stop selling old fables," said Faraz, while lambasting the planning minister for "insultingly linking PTI with India". "PTI is not an anti-state party," he said. "How can a country progress when people can't even access the internet?" He denounced the government as a product of "Form-47 legitimacy", saying true representatives would never have presented such a budget. Shibli Faraz said that 61 million people fell below the poverty line post-2022 and that unemployment had surged by 14 million. He noted the lack of foreign direct investment and even remarked that "the Afghan currency is now stronger than the Pakistani rupee". He slammed the imposition of taxes on stationery and questioned the government's understanding of public priorities, citing the number of out-of-school children and deteriorating public services. Meanwhile, Finance Minister Muhammad Aurangzeb briefed the Senate Finance Committee on the budget, pushing back against the opposition's accusations. He revealed that India's director at the IMF Board had tried to delay Pakistan's recent funding approval, but "despite Indian objections, $700 million was approved". Aurangzeb asserted that Pakistan had met World Bank benchmarks and that the IFC had approved additional financing. "We expect policy rates to enter single digits this fiscal year," he added, saying fiscal and structural reforms, particularly in SOEs and energy, were showing results. He acknowledged that privatisation targets had not been met this year but expressed optimism for the next fiscal. "We have tried to reduce the burden on the salaried class and cut transaction taxes in the construction sector," Aurangzeb said. "On agricultural tax, the IMF has agreed to our stance following the prime minister's directive."
Express Tribune
4 days ago
- Business
- Express Tribune
PTI tears into 'elite-driven' budget
The Pakistan Tehreek-e-Insaf (PTI) rejected the federal budget 2025-26 both inside and outside the National Assembly on Tuesday, calling it an "IMF-dictated budget" that lacks public legitimacy and launching a two-pronged attack: an aggressive protest on the assembly floor and a pointed press conference soon after. The finance minister's second consecutive budget speech kicked off under fire, with the opposition benches erupting into noisy protest from the get-go. As Finance Minister Muhammad Aurangzeb began unveiling the budget, PTI lawmakers rose to their feet, banged budget books on their desks, blew whistles, and held up posters calling for the release of former prime minister Imran Khan. Throughout the presentation, they chanted slogans against the government, branding the budget illegitimate and anti-people. Undeterred by the uproar, the finance minister pressed on, while treasury members donned headphones to tune out the opposition's noise. Prime Minister Shehbaz Sharif, who entered the house amid the commotion, remained seated and unflinching, as ruling party lawmakers formed a protective cordon around him to avoid any direct clash with the protesting members. Opposition Leader in the National Assembly Omar Ayub Khan led from the front, setting the tone for a coordinated protest and ensuring every PTI lawmaker played their part. Remaining on his feet throughout the session, he repeatedly slammed the budget book on his desk and signalled to fellow members to stay engaged. Lawmakers tore papers and flung them into the air at intervals. After the initial outburst, opposition members moved en masse toward the area between the speaker's desk and the prime minister's seat, continuing their chorus of slogans without letting up. The disruption echoed the tense scenes from last year's budget session, when the finance minister's maiden speech faced an equally turbulent reception from PTI-turned-Sunni Ittehad Council lawmakers. Then as now, the protests included loud chanting, desk-slamming, paper-tearing and close proximity to the PM's seat, prompting treasury members to act as a human shield. Shortly after the session, senior PTI leaders, including NA opposition leader Omar Ayub, PTI Central Information Secretary Sheikh Waqas Akram, PTI Secretary General Salman Akram Raja and Leader of Opposition in Senate Shibli Faraz, addressed a joint press conference, reiterating their categorical rejection of the budget. "This is not a people's budget; it's an IMF budget designed to serve elite interests," the opposition leader said. Ayub questioned the government's economic claims, particularly the projected GDP growth of 2.7%, and sarcastically asked: "Who counted the donkeys and did they differentiate between the four-legged and two-legged ones?" He dismissed the budget as detached from reality, pointing to deepening inequality, inflation and declining industrial output. PTI information secretary was more scathing, calling the budget "economic gallows" for the people, saying it was not a budget for the nation rather a public execution plan. He further said that PTI considers this a "Leela budget" - implying the budget is a farce that ultimately sacrifices common people like goats at slaughter while the elite's interests are protected. He questioned the logic behind token relief for the salaried class and warned that the development allocations were unrealistic and insincere. Opposition leader in the Senate, Shibli Faraz, added that the government had broken all previous records of elitist budgeting. The opposition leader in the Senate said that budgets have been made for the ruling class for decades, but this year's budget has broken all previous records of elite budgeting. Criticising the government, Faraz said: "When such legislation and budget-making takes place in Parliament, it is not just undemocratic but hostile to the country's interest." Faraz also noted that the Afghan currency had appreciated more than the Pakistani rupee, calling it an indicator of the government's failure. "When a government comes to power through Form-47s, it lacks the trust needed for serious reform," he said, warning that economic manipulation without legitimacy would not bring progress. Addressing the media, Faraz condemned the government's handling of inflation and taxation, particularly for salaried individuals. He remarked that the salaried class was being relentlessly squeezed, stating, "as much blood as can be drawn from them is being drawn." He questioned how a country could progress while functioning on what he described as "IMF crutches". Faraz also criticised the state's response to peaceful demands from government employees, noting that when government workers began protesting for their rights, the entire Red Zone of Islamabad was sealed off. "Those who ask for their lawful rights are treated as if they are doing something wrong," he said. PTI secretary general Salman Akram Raja described the document as one that "makes the rich richer and the poor poorer," saying the salaried class and poor people were burdened further. All leaders also reiterated their demand for the release of PTI founder Imran Khan and his wife, describing their incarceration as illegal and politically motivated. They called the ongoing legislative process illegitimate and demanded the restoration of constitutional order, public mandate and rule of law. Earlier, the protest in the assembly followed a detailed strategy discussion in PTI's parliamentary party meeting, held hours before the session. The party rejected the 2025-26 budget outright, terming it a continuation of policies dictated by the IMF. Lawmakers reiterated their stance that the current government had no mandate to present the budget, arguing that it was formed through manipulated election results and did not reflect the will of the people. In its official statement, the PTI parliamentary party declared that the government had no legal or moral authority to legislate on behalf of the public. "This is an IMF budget, not a people's budget," the party said, vowing to resist its passage at every forum, including both the National Assembly and Senate. It condemned the economic hardships faced by ordinary citizens, stating that while the poor were crushed under inflation, the ruling elite continued their lavish lifestyles unchecked. The party also expressed strong disapproval of NA Speaker Sardar Ayaz Sadiq's conduct, accusing him of acting as a partisan figure rather than a neutral custodian of the House. Lawmakers demanded that the speaker act according to his constitutional role rather than serving party interests. It was also decided in the meeting that a privileged motion would be moved if opposition speeches continued to be censored on national broadcasts. PTI lawmakers further resolved to raise the issue of media blackout on their speeches in the assembly and to protest outside if necessary.
Business Recorder
4 days ago
- Business
- Business Recorder
Small traders term budget ‘conventional fiscal document'
KARACHI: The newly unveiled federal budget for the fiscal year 2025-26 has drawn sharp criticism from the small traders' community, who have labelled it as a 'conventional fiscal document', lacking vision, innovation, and inclusivity. The budget, they argue, remains tethered to the constraints of the International Monetary Fund (IMF) without offering any real roadmap for sustainable economic revival. Speaking to Business Recorder on Tuesday, Mehmood Hamid, President of the All Pakistan Organisation of Small Traders and Cottage Industry, termed the federal budget an unfruitful economic exercise that fails to address the core issues plaguing the small and medium enterprise (SME) sector. He warned that the government's increasing dependency on the IMF for fiscal support is eroding national economic sovereignty and threatening long-term growth prospects. Mehmood Hamid criticised the coalition government for prioritising IMF-dictated austerity measures over home-grown economic solutions. 'There is no comprehensive policy framework to revive domestic commerce or incentivize entrepreneurship,' he remarked. 'Instead, the emphasis appears to be on widening the tax net without providing structural relief or sectoral support.' He expressed concern over enhanced powers being granted to the Federal Board of Revenue (FBR), saying that such empowerment, without parallel accountability and transparency, could lead to overregulation, harassment of small businesses, and potential capital flight. 'The business community is already overburdened. Aggressive revenue collection measures will only discourage investment and enterprise,' he said. The trade leader called on both federal and provincial governments to adopt a policy of fiscal austerity by curbing non-developmental expenditures. 'There is an urgent need to cut all symbolic and luxury-oriented state expenditures,' he said, citing lavish government protocols, elite entitlements, and discretionary funds for high-ranking officials such as the President, Prime Minister, and Chief Ministers. 'Fiscal discipline must begin at the top,' he said. 'If the state demonstrates frugality, it would send a strong signal to the markets and help in restoring macroeconomic confidence.' The SME sector, often described as the backbone of Pakistan's economy, continues to be overlooked in federal fiscal planning, he lamented. Despite its role in employment generation and contribution to GDP, the sector has not received targeted tax relief, concessional financing, or energy subsidies that could catalyze industrial productivity. 'If small traders, SMEs, and the cottage industry are incentivized and protected, they can bolster the industrial value chain, which in turn benefits the larger corporate sector,' he said. 'But there is little to no mention of sector-specific interventions in the budget.' On the issue of power outages, particularly in Karachi, Mehmood Hamid likened the role of K-Electric (KE) to that of a colonial monopoly, describing it as a 'modern-day East India Company.' He decried daily electricity load-shedding of up to eight hours in key commercial districts of the old city, warning that it is stifling productivity and undermining business viability, particularly amid the ongoing heatwave. 'Energy insecurity has a direct impact on industrial output. Without reliable power supply, no economy can thrive,' he said, pointing to the adverse effects of inconsistent energy provision on urban economic zones. Copyright Business Recorder, 2025
