Regressive Tax Burden Ismail criticizes the budget’s approach of loading taxes onto wages and farmers. Quoting from his appearance on Dunya News, he argues that “our farmers are suffering” and that a “tax‑heavy” budget penalizes the salaried class without addressing the elite or boosting export capacity en.wikipedia.org+8dunyanews.tv+8dawn.com+8.
Missed Opportunity for Spending Cuts Former Finance Minister laments that the government failed to reduce its own expenditures, preferring to squeeze citizens via taxes rather than implementing austerity or trimming civil‑bureaucratic perks .
No Structural or Growth Reforms The critique highlights a glaring absence of long-term strategy to curb inefficiencies—no tax-net expansion, privatization of loss-making SOEs, or incentives for boosting exports—points previously emphasized during the 2024 budget debates youtube.com+10dunyanews.tv+10en.wikipedia.org+10.
Flawed IMF Negotiations He cautions that government mismanagement and failure to implement IMF‑recommended steps—like reducing line losses, adjusting tariffs, or improving fiscal governance—are stalling critical inflows and weakening macroeconomic stability youtube.com+2dunyanews.tv+2reuters.com+2.
đź”® What This Means for Pakistan
Short-term pain, long-term uncertainty: Prioritizing immediate tax revenue over structural reforms may provide temporary relief but jeopardizes sustainable growth.
IMF support is hanging: Continued lag in reforms risks delaying the next IMF tranche, impacting foreign reserves and framing global confidence.
Public discontent brewing: Burdening the salaried and farming classes without benefiting them could trigger backlash just when economic optimism is emerging from recent inflation lows dawn.com.
Reform inertia may cost dearly: Pakistan faces a strategic decision—to risk economic stagnation or commit to meaningful reform.
