ISLAMABAD: Political figures on Sunday criticised the proposed budget for the upcoming financial year and economic policies of the government, arguing that Pakistan’s financial challenges cannot be resolved without fundamental reforms, institutional stability and the rule of law.
They claimed that investors were discouraged by political instability and frequent changes in government policies. They also claimed that political vendettas, arrests and lack of trust in the political process undermined investors’ confidence and stopped economic growth.
They were speaking at a seminar “Awaam Pakistan Budget Seminar” held at the National Press Club.
President Awaam Pakistan Party and former prime minister Shahid Khaqan Abbasi said the government was spending more on running its affairs than on development projects. He noted that development expenditures were approximately Rs1 trillion, while administrative and operational expenses exceeded Rs2.2 trillion.
Say financial challenges cannot be resolved without fundamental reforms, institutional stability and rule of law
“Around 20 per cent of government spending is consumed in running the government. Pakistan’s public debt continues to rise and that the burden of interest payments is expected to further increase next year. Nearly Rs3 trillion is currently being spent on debt servicing, placing pressure on the national budget,” he said.
Rejecting the government’s claim of providing Rs360 billion as relief to the public, Mr Abbasi said that in the budget an additional tax of Rs2.46 trillion had been imposed.
He described the past four years as one of the worst economic periods in Pakistan’s history and said the country’s current economic crisis would not be easy to overcome.
The former premier also alleged that there were structural imbalances in Pakistan’s fiscal system.
He said the federal government was financially weak while the provinces control a larger share of resources. He said provincial spending and corruption were resulting in the waste of national resources.
He said despite reviewing budgets since 1988, he had seen little fundamental change in the country’s financial management. He noted that the International Monetary Fund was continuing to press Pakistan to reduce its expenditures and start reforms.
Addressing the investment climate, Mr Abbasi said economic progress was impossible without the rule of law. He added that political vendettas, arrests and lack of trust in the political process undermined investor confidence and hindered economic growth.
He said transparent elections, institutional reforms and policy continuity were essential for Pakistan’s future.
Awaam Pakistan Party Secretary General Miftah Ismail said it will be Prime Minister Shehbaz Sharif’s fifth budget. Apart from him, only Zulfikar Ali Bhutto presented four budgets during his tenure.
He said that from 2000 to 2018, poverty generally declined. However, from 2018 to the present, poverty has increased significantly. “Today, both the poverty rate and the number of people living in poverty are among the highest in recent years. Around 29pc of Pakistanis are living below the poverty line. Nearly 30pc of Pakistanis are living in extreme deprivation. A person with resources or income below Rs8,500 a month may struggle to afford even basic food requirements, including two meals a day,” he added.
Pakistan Tehreek-i-Insaf (PTI) Secretary General Salman Akram Raja said that the budget was nothing but an “economic emergency” for Pakistan and all the claims regarding economic development were incorrect. He said that the loans on Pakistan were continuously increasing. He suggested investing in human capital to compete with the global market.
Tehreek Tahafuz Ayeen-i-Pakistan (TTAP) leader Mustafa Nawaz Khokhar said almost all political parties had ruled in Pakistan but economic situation could not be changed. “During last year, 27 million people went below the poverty line. As per economic survey we have failed these 27 million people and now overall 70 million people are below the poverty line,” he added.
Dr Zafar Mirza, former Special Assistant to Prime Minister on Health, spoke about the “deplorable” health indicators in Pakistan and suggested that special focus be given to health of the masses.
He said for the past 75 years, Pakistan has largely neglected human development. “Both civilian governments and military regimes share responsibility for this situation. Over the last 12 years, Pakistan’s Human Development Index (HDI) ranking and performance have continued to decline. When it comes to health, Pakistan is facing a serious public health crisis.
The situation is alarming across all major population groups. The condition of children’s health is particularly concerning. Pakistan continues to have one of the highest child mortality rates in the world. Among women, nearly 49pc suffer from anemia, reflecting widespread nutritional and health challenges,” he said.
Dr Mirza said mental health indicators were also worrying, with a growing burden of depression, anxiety and other psychological disorders.
“Non-communicable diseases are rising rapidly as well. Roughly one in four adults is affected by Type 2 diabetes, while a large proportion of people over the age of 40 suffer from high blood pressure.
Published in Dawn, June 15th, 2026