Shifting tax burden to public

At first glance, the new budget appears to show no significant tax rate hikes, but the removal of exemptions valued at up to Rs1.6 trillion will heavily impact the public. The budget’s architect has aimed to shift the financial burden onto the general populace while also prioritising the sale of loss-making state-owned enterprises (SOEs). Although the sale of SOEs might help reduce government expenditures, it frequently leads to layoffs, all while the government continues to maintain its perks and privileges, such as free petrol and electricity, without cutting back on spending. The government currently grapples with two major challenges: increasing revenue and reducing expenses. Revenue is crucial, as 94 per cent of the Federal Board of Revenue (FBR) income is allocated for debt servicing. This means the government must borrow funds for current and development expenditures, including the defence budget.