• Finance minister wraps up Senate debate on budget; says trade bodies’ proposals also considered
• Small shopkeepers to be brought into tax net; FBR reforms aim to minimise human intervention
• Says customs duties cut in different categories; no new taxes imposed on IT sector
• PPP senator criticises budget over burden on poor, questions FBR performance
• MQM lawmaker slams Sindh govt over Karachi water crisis, poor health, education conditions
ISLAMABAD: Finance Minister Muhammad Aurangzeb on Thursday said Pakistan missed its GDP growth target due to global and regional conditions, as he wrapped up the Senate debate on the next fiscal year’s budget.
Mr Aurangzeb told the House that extensive discussions had been held on all aspects of the budget with senators and representatives of various chambers and trade organisations. “Some proposals of trade bodies were also included,” he said.
For documentation of the economy, he said a scheme was being introduced to bring small shopkeepers into the tax net with minimal compliance burden. He said the government was carrying out fundamental changes in the structure of the Federal Board of Revenue.
“Human intervention in FBR’s role is being minimised and the system is being digitised,” he said, adding that the reforms were aimed at helping the nation “stand on its own feet”.
Referring to recent floods in three provinces, the finance minister said the government had the resources to cope. “We faced flood conditions in three provinces of the country. We had the resources, so we did not go for international aid,” he said.
Announcing key concessions, Mr Aurangzeb said advance tax on the export sector had been abolished to improve cash flow for exporters.
He added that markup rates on various financing schemes had been reduced and customs duties had been cut in different categories.
For the IT sector, he said no new taxes had been imposed. “We are taking steps to provide a better ecosystem for freelancers and arranging training to improve their professional skills,” he said.
The move is in line with the Senate committee’s recommendation to extend IT tax incentives for 10 years.
On agriculture, Mr Aurangzeb said the government was simplifying loan disbursement for small farmers. He announced that Rs10bn had been earmarked for the Youth Loan Scheme for the agriculture sector.
To reduce input costs, the minister said tax on the import of agricultural machinery had been abolished.
‘FBR never meets targets’
Speaking earlier, PPP Senator Waqar Mehdi launched a scathing critique of the latest budget in the Senate, saying the finance ministry “has perhaps never spent a day with a poor person” and questioning whether the budget truly considered the plight of low-income households.
The senator said the salaried and low-income classes braced for impact every June. “When June comes, the poor class gets scared,” he said.
He highlighted the burden on motorcycle users, who form the backbone of daily commuting for millions. “Around 30 million motorcycles are used in the country. If even two litres of petrol are used daily, the monthly expense comes to Rs22,000,” Mr Mehdi said.
Mr Mehdi also targeted the FBR’s performance. “FBR never meets its target. Provinces collect more revenue than that. If FBR is not doing its job, bring in a better economic team,” he said.
The PPP senator also raised the issue of water scarcity in Sindh. “There are huge water problems in Sindh. The province has never received its share of water. In Badin, Dadu, Larkana, even the fields are not getting enough water,” he said.
MQM Senator Khalida Ateeb criticised the Sindh government over Karachi’s water shortage and the state of health and education sectors.
Highlighting civic issues, she said Karachi’s water supply had been abandoned to profiteers. “Karachi has been left at the mercy of the tanker mafia,” she said.
“With extreme regret, I say that the Sindh government itself does not want the people of Karachi to get relief,” she alleged. “Forget Karachi, the condition of schools across Sindh is bad and there are serious health problems.”
She cited the rabies vaccine shortage as an example of the crisis. “In Sindh’s hospitals, there isn’t even a vaccine for dog bites. The situation is extremely deplorable,” she said.
Dog bite cases and rabies remain a public health concern in Sindh, with repeated reports of vaccine shortages at public hospitals.
The MQM senator said all issues directly linked to the public must be addressed. “Attention should be paid to all these problems because these are issues directly linked to the people,” she said. However, she lamented that the rulers “perhaps don’t even want the people to get facilities and sit peacefully to think about the country’s situation”.
Published in Dawn, June 19th, 2026