Pakistan Information Minister Defends FY27 Budget, Invites Opposition to Economic Charter Amidst Criticism

Information Minister Attaullah Tarar recently invited the opposition to sign a Charter of Economy (CoE) and defended the federal budget for fiscal year 2026-27 (FY27). Speaking in the National Assembly, Tarar characterized the government's economic policy as "sagacious" and the proposed budget as "friendly and relief-oriented." He noted that the budget includes a proposal to abolish the super tax, which Prime Minister Shehbaz Sharif had approved. Tarar also highlighted an increase in revenue and foreign remittances, urging the opposition to appreciate the government's decisions, including its efforts for peace in the Middle East, and asserted that the economy is "on the right track."

The government had presented the FY27 budget on June 12, outlining relief measures for the salaried, corporate, real estate, and export sectors. While focusing on enforcement measures over new taxes, it also proposed taxes on social media earnings and a fixed tax scheme for small traders and shopkeepers.

In response, PTI leader Asad Qaiser stated that his party would be willing to sign a Charter of Democracy to ensure an independent election commission and judiciary. He accused the information minister of distorting facts and denied that PTI had written anything "against Pakistan" to the International Monetary Fund (IMF). Qaiser claimed that all budgetary proposals originated from the IMF and contended that farmers in Punjab would face losses of Rs2.2 trillion due to insufficient relief for the agricultural sector. He also alleged that 90 companies had exited Pakistan, halting investments, and that tobacco farmers in Khyber Pakhtunkhwa had been heavily taxed, leading to a 390% increase.

Qaiser further argued that the Centre owed Khyber Pakhtunkhwa Rs434 billion in outstanding dues while simultaneously asking the province to pay Rs175 billion in tax. He pointed out that trade with Afghanistan had been closed for the past year, resulting in export losses, and warned of potential youth radicalization due to increasing joblessness in the province. Additionally, he expressed concern that PTI founder Imran Khan remained unable to meet his family in jail.

PTI's Amir Dogar criticized the budget as "anti-people," claiming that Rs4,365 billion in petroleum levy had been imposed in the last three months. He deemed the Rs103 billion allocated for new dams as insufficient and asserted a lack of relief for investors and measures to promote the agricultural sector. Dogar also demanded the creation of a South Punjab province and decried that the key PTI leadership had been sentenced in "baseless" cases and that the speeches of opposition members in the Parliament were blacked out.

PPP leader Sharmila Faruqui also argued that the FY27 budget offered no significant relief for the common citizen. She highlighted that the salaried class, who paid Rs550 billion in taxes last fiscal year, received only Rs50 billion in relief in the new budget. Faruqui questioned the government's poverty threshold and pointed out the absence of significant provisions for youth, who comprise 68% of the country's population. She also noted that despite Rs224 billion allocated for the National Highways Authority, only Rs10 billion was earmarked for the Sukkur-Hyderabad Motorway, suggesting the project would not launch in the current fiscal year.

(Source: Dawn Pakistan)