IT is now official that the Federal budget for the year 2025-26 will be presented before the National Assembly on June 10 and a day earlier Pakistan Economic Survey 2024-25 will be released detailing the economic performance of the country during the outgoing financial year.
Minister for Planning Ahsan Iqbal had stated that the budget will be presented on June 2 but delay of one week is understandable because of ongoing consultations with the International Monetary Fund (IMF) and Eid holidays.
It will be the second budget of Finance Minister Muhammad Aurangzeb, who has, so far, efficiently managed the economy as highlighted by positive economic indicators like exchange rate stability, increasing foreign exchange reserves, stock exchange boom and falling inflation rate.
The Minister is on record making repeated pledges to provide relief to the salaried class and the Prime Minister has been talking about provision of relief to the common man.
There is no reason the commitments will not be honoured but media reports about different aspects of the budgetary consultations with the IMF are not encouraging.
There is more focus on revenue collection than welfare of the layman, which should be a priority for an elected government.
Developmental allocations are vital for accelerating the pace of economic activities but these are reportedly being slashed with the possibility of closure of hundreds of ongoing schemes.
Similarly, there are reports the IMF is not in favour of any salary increase or reduction in tax burden of the salaried class and instead proposals are under consideration to tax pensions.
We hope the Finance Minister will be able to satisfy both the IMF and the general public as for provision of relief to different segments of the society and the need to expand the tax net are concerned.
