Pakistan Budget 2025–26:Pakistan’s 2025–26 budget has been unveiled amid fierce opposition and growing public discontent. While the government claims major strides in inflation control and digitization, critics say the budget is IMF-dictated and detached from ground realities. Here’s a detailed look.
Pakistan Budget 2025–26
Pakistan’s fiscal year 2025–2026 budget was presented in the national parliament under a cloud of intense political friction, with opposition members raising slogans and rejecting the budget outright. The finance minister, while optimistic about the country’s economic direction, highlighted a major achievement—bringing inflation down from 25% to 5% in just two years. However, this optimism has not translated into relief for millions of ordinary Pakistanis who continue to grapple with daily economic struggles.
The opposition was quick to criticize the budget, calling it unfriendly and dictated by the International Monetary Fund (IMF). According to them, there is no relief for the public, and the figures presented are nothing more than a cover-up. They argue that the budget does not reflect the reality on the ground and does little to address the widespread poverty and unemployment across the country.
While the economic report presented by the government shows some positive numbers, such as a 14% rise in agriculture, many question these statistics. Critics argue that major crops underperformed, and rural livelihoods remain under pressure. Furthermore, other key sectors of the economy, such as industrial growth and construction, have suffered noticeable declines. Industries that were forecasted to grow at 4% did not meet expectations, indicating deeper structural issues in the economy.
A central component of the new economic strategy is the digitization of transactions, a requirement pushed by the IMF. The government wants to discourage cash payments and move towards a digital financial system. However, this policy has sparked concerns among low-income workers and rural communities, where digital access is limited and cash remains the primary mode of transaction.
Take the case of Abdul Wahed, a taxi driver in the city, who earns around 600 rupees a day—barely enough to cover his petrol expenses. He fears that if the government begins charging extra for cash transactions as part of its digital push, people like him will be severely impacted. For many in rural Pakistan, who live in abject poverty and have little to no access to digital infrastructure, such a shift is not practical and will only add to their financial burden.
Despite these concerns, the finance minister insisted that the economy is on the path to recovery. He cited key statistics to support his claims, noting that Pakistan’s inflation rate, which peaked at 29% in 2023, fell to 23% last year and currently stands at 4.6%. Additionally, the country’s tax-to-GDP ratio has increased fivefold over the past five years. According to the minister, this improvement is largely due to the ongoing digital transformation that has widened the tax base and improved fiscal oversight.
Still, many Pakistanis remain unconvinced. Rising unemployment, stagnant wages, and the high cost of living continue to plague citizens across the country. The government’s statistics, while promising on paper, have not yet translated into visible change in the lives of ordinary people. For the masses, belief in economic recovery will only come when they begin to see real, positive impacts in their day-to-day existence.
Until then, skepticism toward the budget and the broader economic vision will persist. As the government pushes ahead with its digital and reform agendas, it must balance the expectations of international lenders like the IMF with the urgent and practical needs of its people. The coming year will test whether the promises outlined in the 2025–26 budget can truly deliver meaningful change for Pakistan.
Disclaimer:
This article is based on public reports and official statements as of June 2025. It reflects a summary of economic, political, and social views surrounding Pakistan’s latest federal budget. Views quoted from individuals are their personal opinions.