BENEATH the sugar-coated estimates remain the serious challenges that have been conveniently ignored in the federal budget presented recently. It is tagged on unfeasible collection targets, liberal spending in non-developmental domains, higher imports, more borrowings and excessive reliance on remittances. The concept of self-reliance is missing.

The education sector has been ignored with dismally low allocations. Besides, duties have been lowered on 850cc cars, while there is no relief for the masses using public transport.

Last year, a pay and pension committee was set up to rationalise the growing burden of expenditure on pay/pensions. Strangely, salaries and pensions have been raised, with provinces following the same pattern. The increase will fuel inflation.

The bottom line is that key challenges to the economy have remained unaddressed and cosmetic palliatives have been preferred. It is a banker’s budget and not that of an expert economist.

Arif Majeed
Karachi

Published in Dawn, June 18th, 2021