ISLAMABAD: Lawmakers on Saturday reviewed the federal budget for fiscal year 2025–26 and urged the government to provide more relief to the public.
The general discussion in the National Assembly featured members from multiple parties who addressed concerns related to economic growth, tax policy, sectoral development, and social welfare.
Pakistan Peoples Party leader Mirza Ikhtiar Baig said that industry, agriculture, and the services sector are key to long-term economic stability. He acknowledged economic challenges and noted that while reforms are ongoing, the modest GDP growth of 2.6 percent is still affected by inflation, population growth, and rising national debt.
He expressed concern over proposed pension reforms, particularly the withdrawal of posthumous benefits for pensioners’ children after 10 years, saying the change may create financial hardship for families.
Baig also criticized the tax enforcement measures that give arrest powers to income tax officers, saying they could weaken business confidence. He welcomed incentives in the construction and property sectors, including the reduction of withholding tax on property transactions from 4 percent to 2.5 percent, removal of federal excise duty on commercial property transfers, and reduction of stamp duty in Islamabad from 4 percent to 1 percent.
He supported the increase in the defense budget and praised the armed forces, particularly in light of recent hostilities. He also highlighted the record $38 billion in remittances from overseas Pakistanis and advocated for export-led growth through IT and rice sectors.
Pakistan Tehreek-e-Insaf legislator Asad Qaiser urged the government to reconsider its decision to impose new taxes in the former FATA region, citing the sacrifices made during the war on terror. He warned that additional burdens could slow down socio-economic recovery.
He also raised concerns about frequent power outages in Khyber Pakhtunkhwa that have caused damage to home appliances, and he called for more funding for the province under the Public Sector Development Programme.
Qaiser spoke about problems in the tobacco sector, including the absence of a fixed minimum support price, which he said is forcing companies to leave the region. He called for government action to protect farmers.
Muttahida Qaumi Movement leader Dr. Farooq Sattar praised the armed forces for their performance during recent Pakistan-India tensions, and credited national unity and leadership under Field Marshal General Asim Munir. He acknowledged some relief measures for salaried workers but said the middle class continues to face a disproportionate tax burden.
Sattar called for reforms to reduce electricity and gas tariffs and proposed a national economic dialogue to establish a unified Charter of Economy. He said agricultural income should be taxed through a provincial consensus under Article 177 to strengthen Pakistan’s fiscal position with international institutions.
He also condemned Israeli actions and expressed solidarity with Iran during recent regional tensions.
PPP member Syed Naveed Qamar said the federal budget should reflect a broader economic vision and not just a balance sheet. He emphasized that budget allocations must be aligned with policy goals rather than serve political purposes.
