ISLAMABAD: Former PML-N leaders Shahid Khaqan Abbasi and Misftah Islamil, who have recently formed their own party, criticised the federal budget on Monday for lacking reforms and burdening the salaried class.

At a news conference, the two leaders demanded that the government cut its expenses, stop smuggling, and increase exports by incentivising industrialists.

The two leaders urged the government to review the budget and roll back punitive measures like increasing taxes on the salaried class and allocating Rs500 billion to MNAs for development schemes in their constituencies.

“The budget does not carry any reform agenda, so how will the country move forward,” wondered Mr Abbasi.

Ex-minister says govt blaming IMF for its poor policies; Tarar claims plan in place to cut expenses

He said that instead of cutting its own expenses, the government has imposed more taxes, especially on those already paying multiple taxes. “No method has been adopted to bring non-taxpayers into the tax net and broaden the tax base.”

Criticising the allocation to lawmakers, Mr Abbasi called the scheme “senseless” and said it will make no difference if streets and drains are not paved for another year.

He claimed that non-filers will never pay a 45 per cent tax and instead look for ways to evade taxes.

Criticising tax exemptions on the properties of retired and martyred army officials and civil bureaucrats, he said other people will also seek this exemption and the government will not be able to meet their demand.

“Will the government impose a 65pc tax next year?” he asked with a warning that he is foreseeing a day when the people will stop paying taxes altogether.

Mr Abbasi said Pakistan’s biggest problem is exports which have only increased to $30 billion after 75 years of independence.

“We need to increase it to at least $50 billion,” he said, adding that the Special Investment and Financial Council was formed to facilitate investment, but nothing has happened so far.

Mr Abbasi also claimed that the budget did not include plans to privatise loss-making entities like Pakistan Railways and power distribution companies.

Speaking on the occasion, Mr Ismail, the former finance minister, said the government has bla­med the IMF for its wrong policies.

“Does the IMF ask the government to allocate Rs600bn in funds for MNAs? Does it stop the government from taxing the agriculture sector and the elite class? Does the IMF force the government to increase gas and electricity tariffs?” he asked.

Tarar responds to criticism

While replying to his former party colleagues, Information Minister Attaullah Tarar told a news conference that the impression of Rs500bn funds allocated to MNAs is “wrong”.

He claimed that the government is working on a reform agenda and the process of dissolving the Pakistan-Public Works Department (Pak-PWD) has started in a bid to cut expenses.

While talking about other measures to reduce the current expenditure, Mr Tarar said no cabinet member, including the prime minister, is drawing salary or availing perks and privileges.

“Miftah Ismail and Khaqan Abbasi should have lauded the government’s efforts to improve the economy as reserves have increased to $9 billion,” he added.

Published in Dawn, July 2nd, 2024