Islamabad: The federal budget for 2025-26 has been presented, but questions are arising in the minds of the common Pakistani: Will this budget really provide relief, or will it add more burden? While the Rs 17,600 billion budget promises a 10 percent increase in salaries, the sharp cuts in subsidies, increase in petroleum levy, and expansion of the tax net have worried citizens.
The electricity subsidy is proposed to be reduced from Rs 1,200 billion to Rs 977 billion, which is likely to make electricity more expensive. A plan to increase the petroleum levy from Rs 70 to Rs 100 per liter is under consideration, which may affect the prices of transport and food items.
Freelancers, vloggers, and small business owners are being brought into the regular tax net for the first time. Strict restrictions on non-filers, such as double tax on bank withdrawals.
The government has also allocated money for development projects, such as ML-1, the Karachi Circular Railway, and the establishment of industrial units, but these projects will not bring immediate relief to the common citizen in this era of inflation.
Duty on imported raw materials is being reduced for the industrial sector, while some concessions are also being given in corporate taxes. Despite all these measures, the public is seeing less immediate relief and more burden of indirect taxes.