ISLAMABAD: The National Assembly witnessed a heated debate on Monday over the federal budget, revealing sharp political and economic divisions. The government defended its stringent stabilization measures, while opposition and coalition members condemned the fiscal plan as a harsh “IMF budget” that neglects the needs of the poor.
Pakistan Muslim League-Nawaz (PML-N) lawmaker Tahira Aurangzeb emphasized that economic recovery hinges on national unity. She stated that political stability is crucial to resolving the country’s challenges, noting that the past three years were lost to political turmoil. Aurangzeb highlighted how sit-ins and lockdowns severely damaged the economy and allowed adversaries to exploit internal conflicts.
She commended the military leadership for safeguarding national defense against India but stressed that without political harmony, rapid economic progress remains unattainable. The government, she added, had to make difficult decisions to prevent a default.
Supporting this view, PML-N member Shumaila Rana presented positive economic data, noting that Pakistan’s gross domestic product (GDP) grew from $335 billion to $452 billion, achieving a 3.5 percent growth rate despite global challenges. She praised the abolition of federal excise duties and property taxes on solar panels as “people-friendly policies.” Rana also strongly criticized the opposition Pakistan Tehreek-e-Insaf (PTI), dismissing their past agricultural initiatives and accusing them of fostering political incivility, targeting women on social media, and orchestrating the violent May 9, 2023 riots against military sites, including the Corps Commander’s House in Lahore.
As opposition members protested vocally, Federal Minister for Law and Parliamentary Affairs Azam Nazeer Tarar sought to ease concerns about rising costs by highlighting internal austerity efforts. He pointed out that the fuel allowance for federal ministers had been cut by half, from 400 liters to 200 liters, and invited debate on this reduction.
Criticism also emerged from within the ruling coalition. Pakistan People’s Party (PPP) lawmaker Shahida Rehmani sharply criticized the budget’s structural weaknesses. She argued that collecting Rs117 per liter in petroleum levy was not an achievement and that the heaviest tax burden fell on ordinary citizens, salaried workers, and indirect taxpayers. Rehmani warned that the industrial sector is collapsing or relocating abroad due to high power, gas tariffs, and production costs.
She further cautioned that 93 percent of state funds are consumed by recurring expenditures, mainly debt servicing, leaving little for social welfare, human rights, or democratic institutions. Rehmani also raised concerns about the agricultural sector, noting that rising fertilizer prices and climate change had reduced wheat yields by 15 maunds (approximately 600 kg) per acre, with no relief packages or research funding forthcoming.
The debate intensified when Sunni Ittehad Council/PTI lawmaker Shahram Khan Tarki mocked the finance team’s disconnect from public realities. He pointed out that the finance minister’s poverty line threshold of Rs8,765 ($31) per month is lower than the cost of his imported mineral water and coffee. Tarki argued that under the current regime, a poor person cannot afford even one meal a day and questioned the benefits of IMF involvement if the public continues to suffer. He warned that the tax burden cannot be increased further as there is no capacity left.
National security and regional issues also surfaced during the debate. Independent lawmaker from Khyber Pakhtunkhwa Noor Alam Khan criticized Defence Minister Khawaja Asif for suggesting a lack of national consensus against militancy. Khan asserted that the Pashtun community strongly opposes terrorism, with police and civilians sacrificing alongside the military daily. He also condemned the neglect of Balochistan in regional budget allocations while his province faces urgent security challenges.
Khan directed his criticism at the treasury benches, demanding immediate structural relief from IMF-driven inflation. He lamented the absence of ministers to address grievances and challenged the Federal Board of Revenue’s performance. Khan described the budget as an IMF budget rather than a Pakistani one, condemning soaring electricity and fuel prices that benefit Independent Power Producers (IPPs). He accused financial managers of exploiting the poor and called for affordable flour, electricity, and fuel instead of more debt.
The budget debate is set to continue throughout the week, with the government facing significant challenges in reconciling opposition demands and coalition dissatisfaction before the final vote.
