What happened
Government lawmakers used the National Assembly’s general discussion on Wednesday to defend the 2026-27 federal budget as the best possible plan under difficult economic conditions, while opposition members pressed for salary increases, relief measures and greater attention to agriculture, DNA News Agency reported.
Pakistan Peoples Party Parliamentarians lawmaker Shazia Marri said the country faced complex regional and global challenges that required consensus-based policymaking. She criticised the growing burden of indirect taxation and inflation, questioned official poverty indicators, and said the Benazir Income Support Programme should remain free of political influence. She called for Balochistan to benefit more from its natural resources and for action on the salaries and allowances of public-sector employees, particularly security personnel.
PTI Chairman Gohar Ali Khan rejected the budget’s approach, raising governance concerns and calling for institutional reforms. He offered what he described as unconditional cooperation for democracy, constitutional rule and the protection of citizens’ rights, and said his party’s demands included access to legal rights and the resolution of cases involving detained party members. He also criticised inflation, indirect taxation and rising fuel and utility costs. PTI’s economic think tank had earlier released 15-page budget proposals seeking income tax relief and up to Rs500bn in annual spending savings.
Tax relief and imports
The debate came as the government said it had won some concessions on imports but failed to secure others on education. Briefing the Senate Standing Committee on Finance, Commerce Secretary Jawad Paul said the restriction limiting imports to vehicles no more than five years old would be lifted from July, subject to environmental standards, and that an additional regulatory duty on used cars would be cut. However, the Tax Policy Office chief, Najeeb Memon, said the International Monetary Fund had opposed exempting school stationery from sales tax, leaving an 18 per cent levy on pencils, exercise books and similar items in place.
Why it matters
The session underscored the political difficulty of a budget built around fiscal consolidation. Lawmakers from the ruling coalition and the opposition alike focused on the cost of living. PML-N’s Raja Khurram Shahzad pointed to gaps between elite and under-resourced schools in Islamabad, water shortages and pressure on hospitals such as PIMS and Polyclinic. PPP’s Naz Baloch called for inclusive governance in Karachi and more investment in information technology, while Parliamentary Secretary for Water Resources Rana Ansar said a proposed seven per cent salary increase was insufficient amid inflation and warned about taxes on infant nutrition products.
