A country reeling from the aftereffects of backbreaking inflation, stagnating incomes and a growing wealth gap needs more than hollow, borderline insulting, “signals” as acknowledgement of its plight. Yet, that is all the government’s proposed budget for the upcoming fiscal year has offered it.
Presenting the budget in the National Assembly, Finance Minister Muhammad Aurangzeb spoke of a “signal” to the public, referring to marginal tax decreases he claimed represented an acknowledgement of the burdens borne by the common man over the past three years. Defending the minimal “relief,” he claimed the government was constrained by resources, and vowed “this was not the destination.”
At best, this is a token gesture. At worst, it is a calculated distraction from the hefty hikes approved for lawmakers, who have no issue taking their piece of the pie, the public be damned.
The federal cabinet meeting that approved the proposed budget simultaneously approved extravagant salary hikes for the Senate chairman and deputy chairman, and the National Assembly speaker and deputy speaker. Over 500% higher than their previous remuneration, the raises outpace not only inflation but also the modest 10% increase proposed for regular government employees. Most glaringly, the federal government has maintained the minimum wage, leaving the country’s most vulnerable workers stranded amid rising costs of living.
There is little surprise about the marginal 2-4% tax relief offered to the salaried class, which both Prime Minister Shehbaz Sharif and the finance minister acknowledge is already heavily burdened and over-taxed. Months of appeals for relief have fallen on deaf ears, with the proposed budget continuing to favor the country’s vast untaxed sectors such as retail and real estate. The obvious unwillingness to broaden the tax base or target entrenched elites sends a clear message: the system is designed to protect the powerful while squeezing the rest.
Amidst these disparities, the finance minister’s signal conveys much, just not equity or reform. Instead, it reflects deep tone-deafness, as the government rewards itself before addressing the basic needs of its citizens. Such decisions not only erode public trust, but also widen a growing disconnect between the rulers and the ruled. They also cast doubt on the seriousness of any commitment to fiscal responsibility or meaningful economic change.
For a nation crying out for real reform, accountability, and shared sacrifice, this budget sends the wrong message. If there is a signal here, it is one of self-interest wrapped in the language of public service. The finance minister need not worry, Pakistan’s public has gotten his message—they have simply recognized it as yet another missed opportunity.