Islamabad (TDI): The National Assembly on Thursday approved the Rs17.6 trillion worth budget along with Rs463 billion new taxes. The approval came despite persistent objections from opposition lawmakers, who demanded greater transparency and public consultation before the bill’s passage.
Lawmakers passed the Finance Bill 2025 after incorporating several revisions. Roughly half of the suggestions made by the finance committees of both the National Assembly and Senate made it into the final version. Proposals from opposition members, however, were dismissed in their entirety.
Speaking to lawmakers, PPP Chairman Bilawal Bhutto Zardari explained why his party was supporting the federal budget. He highlighted an increase of 20 per cent in the allocation for the Benazir Income Support ProÂgraÂm (BISP), a flagship initiative originally envisioned by former prime minister Benazir Bhutto.
Bilawal also praised revisions in tax policy, including the doubling of the annual income threshold for tax exemption, from Rs600,000 to Rs1.2 million and a reduction in sales tax on solar panels from 18% to 10%, a demand raised by PPP members. He further welcomed a decision to restrict the Federal Board of Revenue’s authority to arrest individuals during tax investigations, stating that detentions would now require proof of fraud and would be bailable.
On the other hand, Pakistan Tehreek-e-Insaf (PTI) Chairman Barrister Gohar Ali Khan denounced the budget, calling it disastrous. He warned that the country was heading toward an economic crisis akin to Sri Lanka’s, with failing agriculture and industry, and blamed the government for lacking meaningful reforms.
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He took particular issue with the expansion of the BISP budget from Rs313 billion to more than Rs700 billion, questioning whether the increased funds would be distributed equitably. He also called out new FBR powers related to auditor appointments, claiming they contravened the Constitution.
Other PTI leaders echoed these criticisms. Malik Aamir Dogar questioned the legitimacy of the government’s mandate to approve the budget, accusing it of crafting the plan in consultation with the IMF rather than the people. Muhammad Atif Khan criticized what he called unjustified tax hikes by a government that, in his view, lacked an electoral mandate.
Aliya Kamran of JUI-F condemned what she described as rampant tax evasion and poor governance within the FBR. PTI’s Shandana Gulzar accused the government of misrepresenting economic indicators and pushing through harmful economic policies.
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Speaking directly to the PPP chairman, PTI’s Ali Muhammad Khan urged him to advocate for the common man and stand against new vehicle taxes, including those on cars with engine capacities as low as 850cc.
Mobeen Arif, also from PTI, suggested the budget vote be postponed to allow for broader public engagement.
Senior politician Latif Khosa raised concerns over the country’s rising debt burden, warning that future generations were being financially shackled. He pointed out that nearly 50% of the population now lived below the poverty line.
The opposition also objected to what they saw as excessive enforcement powers granted to the FBR, claiming these could lead to misuse and harassment under the guise of tax enforcement.
Prime Minister Shehbaz Sharif attended the session and held discussions with leaders from both treasury and opposition benches, including Bhutto Zardari.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
