The Spirit of a Budget Should Be Economic Growth and Public Prosperity, But…?

The debate and noise surrounding Pakistan’s Budget 2026-27 has finally come to an end. Prior to the budget’s approval, the MQM placed conditions, stating that if their governor in Sindh was not reinstated, they would not vote in favor of the budget. Meanwhile, the PPP continued negotiations over the NFC Award and, according to Bilawal Bhutto, attempts were being made to steal his party’s mandate in Gilgit-Baltistan. As a result, he initially excused his party from participating in the budget session.

MQM, however, ultimately had little choice but to continue working within the coalition framework. The government, on the other hand, could not afford to ignore the concerns of the PPP, being a major coalition partner. The Deputy Prime Minister and other leaders of PML-N spent considerable time trying to reconcile differences with disgruntled allies. When those efforts seemed unsuccessful, Interior Minister Mohsin Naqvi, known for handling difficult situations, stepped in. If he could help bring Iran to the negotiating table, resolving issues within the coalition was a comparatively easier task. Within minutes of his meeting with Bilawal Bhutto, the PPP chairman appeared in the National Assembly along with all his party members—a welcome development.

The opposition, regardless of which party occupies that role, is expected to make noise and criticize the government. After all, every Member of Parliament receives approximately PKR 730,000 per month, including benefits and allowances. This is official and publicly available information, excluding development funds and other privileges. With 323 members in the National Assembly, the monthly cost borne by taxpayers is approximately PKR 230 million. Eventually, this assembly approved the federal budget.

Budgets are essentially a game of numbers, often beyond the understanding of ordinary citizens. Most people only realize the impact of a budget when they visit markets and discover that the prices of everyday necessities have increased dramatically. While the opposition celebrates these hardships politically, it often amplifies public grievances for its own advantage.

I recall meeting former Prime Minister Nawaz Sharif in Jeddah shortly after he became Prime Minister in 2013. During our meeting at his residence, I asked him about his government’s economic policy. He replied that they were making every effort to improve the economy. Former Finance Minister Ishaq Dar was also present, and Mr. Sharif asked him to provide further details. Mr. Dar responded with an extensive explanation filled with statistics and economic figures.

After listening for some time, I respectfully told Mr. Sharif that my question had been simple and that he had already answered it by saying that the government had a plan to improve the economy. However, the complicated figures were beyond my understanding, and if they were difficult for me, how could ordinary citizens understand them? I jokingly remarked that Mr. Dar had effectively left us “following the red taillight of a truck.” We all laughed, and I thanked him for his explanation.

The same trend continues in Budget 2026-27. Through statistical presentations and economic jargon, the Finance Minister and other government officials attempt to reassure the public. However, these assurances carry little weight because people have become increasingly aware that meaningful relief cannot be expected from the current system. They listen to official statements but pay little attention to them.

One major reason for public disillusionment with political leadership is that politicians rarely allow their personal or group interests to be affected. Whenever sacrifices are required, ordinary citizens are often the first to bear the burden. A clear example is the country’s continued dependence on loans from the International Monetary Fund (IMF), while domestic borrowing also continues to rise. New loans are frequently taken simply to repay old ones, pushing the country deeper into debt.

Unless bold and effective economic policies are adopted, Pakistan risks becoming a nation permanently dependent on borrowing. The Finance Minister’s recent press conference revealed much about the government’s seriousness regarding economic reforms. He noted that a neighboring country had achieved a growth rate exceeding 8 percent while still facing unemployment challenges. He further stated that even if Pakistan achieved 8 percent growth, the rapidly increasing population—growing by approximately 2.5 percent annually and potentially reaching 400 million—would continue to create economic pressures.

While the Finance Minister is correct in highlighting population growth as a challenge, the larger issue remains the unequal distribution of resources and the insensitivity of the elite class. On one hand, highly paid government officials enjoy free housing, vehicles, fuel, electricity, and numerous privileges. On the other hand, individuals working two jobs and earning only forty or fifty thousand rupees per month face increasing financial pressure.

The Finance Minister’s remarks gave the impression that the government is largely unconcerned with the hardships ordinary citizens face. While officials claim that the economy is improving, those improvements are not visible in the lives of average Pakistanis. The benefits appear to be reaching the elite more than the general public. If the well-being of the privileged class is taken as the standard, then perhaps the country is indeed progressing.

For genuine improvement in people’s lives, the ruling class must develop a better understanding of public problems. Unfortunately, there is little indication that such awareness will emerge in the foreseeable future.

Economic growth rests upon several key pillars. The first is tax reform. Pakistan has a very small tax base relative to its population. Expanding the tax net and ensuring that all sectors contribute fairly to the national treasury is essential. A more equitable distribution of the tax burden would provide the government with greater resources for development projects.

The second pillar is export growth. Countries that prosper economically are those that successfully sell goods and services in international markets. Pakistan must focus not only on textiles but also on information technology, pharmaceuticals, engineering products, and agriculture. The country’s young IT professionals and freelancers have the potential to earn billions of dollars in foreign exchange.

Investment promotion is another critical area. Consistency, transparency, and the rule of law are essential for attracting both domestic and foreign investors. Investors seek stable policies and a favorable business environment. Pakistan’s Special Economic Zones and industrial parks can become major drivers of investment if managed effectively.

Agriculture remains the backbone of Pakistan’s economy. The use of modern seeds, improved irrigation systems, agricultural research, and easier access to financing for farmers can significantly increase productivity. A stronger agricultural sector would enhance food security and boost exports.

Equally important is the need to combat corruption, smuggling, and the waste of public resources. Strong accountability mechanisms and transparent management of national assets would improve development outcomes and restore public trust.

Overseas Pakistanis can also play a vital role in national development. If the government provides secure and profitable investment opportunities, expatriates could contribute not only through remittances but also through direct investment in the country’s economy.

Ultimately, a budget should be designed to provide relief and opportunities for the people. The true measure of a budget is not the complexity of its numbers but its ability to improve the lives of ordinary citizens.