The federal budget for 2026-27, may be announced on June 10 or may be delayed further once again appears less a roadmap for progress and more a routine exercise of recycled policies and adjusted figures suiting to only elite of the country. Despite grand claims, it offers little relief to ordinary citizens, instead introducing new burdens under the guise of reform. At its core, the budget reflects a disconnect between policymakers and the realities faced by Pakistanis. Though framed as necessary under international guidance, the outcome remains the same. The rising taxes, shrinking purchasing power, and growing inequality. With an estimated outlay of Rs 17.6 trillion against projected FBR revenues of Rs 14.13 trillion, the Rs 3.47 trillion deficit is likely to be covered through additional taxation. Historically, such gaps are filled not by taxing untapped wealth or improving governance, but by increasing pressure on those already struggling. The claim that Pakistanis do not pay taxes is misleading. While only 3.8 million are registered income tax filers, nearly 90 percent of the population contributes through indirect taxes embedded in everyday expenses. With 32 million electricity connections, 11 million gas consumers,2.7 million PTCL subscribers and over 206 million mobile users, the tax net is far broader than official figures suggest placing a heavier burden on the poor. At the same time, consumption patterns reveal contradictions. In ten months, mobile phone imports reached Rs 455 billion, alongside billions spent on automobiles, despite over $138 billion in external debt and annual interest payments exceeding $4 billion. This raises questions about whether the issue is scarcity or mismanagement. The real problem lies in expenditure. There is little sign of austerity at the top, where lavish perks persist. Senior officials in state-owned entities earn millions monthly, supported by extensive benefits, while legislators and executives remain insulated from public hardship. Such excess is indefensible amid fiscal stress. Reform must begin with discipline: capping salaries at Rs 1 million per month, limiting official vehicles, and enforcing modest transport policies as practically exhibited by former late Prime Minister Muhammad Khan Junejo. Ministers and lawmakers must reduce perks and discretionary spending to demonstrate genuine solidarity. Asset valuation also demands reform. Under-declared property values and unchecked subsidies distort the economy and erode trust. Transparency and enforcement must replace leniency. The principle of living within means has long been ignored. Instead, governments rely on borrowing and taxation to sustain an unsustainable model. Other nations show that disciplined governance and prioritizing public welfare can drive meaningful change. Pakistan’s challenge is not a lack of potential but of direction. The upcoming budget offers a chance to restore credibility by shifting focus from elite protection to public service. Until then, budgets will remain exercises in numbers, not instruments of relief.
As Pakistan approaches the budget cycle, the country finds itself trapped in a familiar and exhausting loop. A persistent fiscal deficit that invariably leads to further taxation on an already burdened citizenry. While the government faces the difficult task of balancing macroeconomic stability under IMF programs, the narrative that “more revenue” is the only solution has become a tired, annual ritual that ignores the elephant in the room: unsustainable government expenditure. The Reality of Our Fiscal “Envelope “The fiscal reality is stark. Debt servicing, alongside the massive, ballooning costs of public sector salaries and unfunded pensions, now consumes the lion’s share of national revenue. The Pension Crisis. National pension spending has surged to roughly Rs 2.2 trillion. Unlike sustainable models, Pakistan’s system is largely unfunded and growing at over 20% annually, creating a ticking time bomb for public finances. When combined, the national bill for salaries and pensions for civil servants, corporations, and other state entities exceeds Rs 6 trillion. This leaves little room for the development spending that is actually required to drive economic growth. Reform Over Taxation Relief cannot come from merely shuffling tax brackets while leaving the underlying architecture of state expenditure intact. True relief for the public requires a paradigm shift: Establish a High-Powered Reform Committee. We need a transparent, merit-based commission tasked with auditing the salary structures across all State-Owned Enterprises (SOEs), autonomous bodies, various authorities, the judiciary, and the armed forces. It is time to replace “Sifarish” (cronyism) and arbitrary pay scales with a standardized, performance-linked compensation framework. Salary structure should be one throughout Pakistan, the Culture of Extensions: Constitutional and top-tier administrative posts should strictly adhere to their tenure limits. Extending terms for even a single day undermines the spirit of institutional integrity and blocks the infusion of fresh, meritocratic talent. Transitioning from the current unsustainable, unfunded model to a contributory pension system is no longer optional-it is a fiscal necessity to prevent total system collapse. Before asking the common man for another rupee in taxes, the state must demonstrate that it has trimmed the fat. This means freezing the growth of the government’s wage bill and consolidating redundant departments. The upcoming budget is a defining moment. If the government continues to rely solely on taxation to cover a deficit fueled by unchecked administrative costs, the economic strain on the public will only deepen. Relief is not found in higher taxes; it is found in the courage to perform major surgery on the state’s own balance sheet.
The performance of FBR has not been exemplary, they remain busy in posting and transfers. They have failed to control real estate business. A house of 120 million is valued at Rs 1.5 crore. Anyone earning more than 10 lakh annually should be taxed as a standard formula
Pakistan stands at a critical juncture where political maturity must replace perpetual confrontation. The recurring cycle of blame and inaction has cost the nation precious time, leaving economic progress stalled and public confidence shaken. In a rapidly evolving global order, unity, discipline, and continuity of policies are no longer choices but necessities. It is imperative that all political forces rise above personal and party interests to work towards a shared national agenda. An All Parties Conference should be convened to address key challenges economic stability, governance reforms, and the fight against terrorism with consensus and commitment. Only through collective resolve, public participation, and an end to divisive politics can Pakistan move forward on the path of stability, security, and sustainable development.
