Budget focus draws criticism from lawmakers

ISLAMABAD: The National Assembly and Senate standing committees on finance and revenue on Saturday voiced concern over what they described as the federal budget’s strong emphasis on revenue collection, fiscal tightening and policy experimentation, while offering limited support for economic expansion, investment and employment.

Both parliamentary panels are headed by former finance ministers from the PPP, Syed Naveed Qamar in the National Assembly and Saleem Mandviwalla in the Senate. During the National Assembly committee meeting, Qamar said the FY2026-27 budget remained centered on revenue mobilisation and fiscal consolidation, with comparatively fewer steps aimed at encouraging growth, investment and jobs.

According to an official statement cited in the briefing, Qamar also raised concerns over the continued setting of ambitious tax goals despite repeated shortfalls in collection. He questioned the basis for imposing additional taxes on the public while maintaining large primary surpluses and reducing development spending to meet the requirements of Pakistan’s programme with the International Monetary Fund.

Economists from the private sector informed the committee that the budget had been prepared within the framework of the country’s ongoing IMF arrangement, with fiscal consolidation and the achievement of primary surplus targets as the main policy objectives. The committee was also told that the Federal Board of Revenue had been given a collection target of Rs15 trillion.

Qamar further noted that while the budget contained a series of incremental changes, it did not adequately address deeper structural issues in the economy. The statement added that concern was also expressed over the government’s reliance on enforcement actions instead of expanding the tax net through structural reforms.

At the Senate finance committee, chairman Saleem Mandviwalla said federal budgets had repeatedly introduced new experiments each year, and that many measures adopted over the last decade were later rolled back. He questioned the logic of continuing with steps that had not produced accurate results.

Finance Minister Muhammad Aurangzeb told the meeting that investors needed predictability and consistency in government policy. He said all stakeholders would have to work together to move the economy ahead and announced that economic consultations would continue throughout the year.