Business pundits term budget for new fiscal year ‘conventional'

Terming the federal budget for fiscal year 2025–26 “conventional”, the business fraternity on Tuesday expressed mixed views about it.

Minister for Finance and Revenue Muhammad Aurangzeb presented the budget for the upcoming fiscal year with a total outlay of Rs17.57 trillion, setting a 4.2% GDP growth target and announcing relief measures for the salaried class while overall federal expenditure being slashed by 7%.

Speaking to Geo News, renowned industrialist Zubair Motiwala termed the budget proposals for the next fiscal year a “camouflage budget”, saying that the real budget would come from the budget document.

Expressing his displeasure over the budget, the noted industrialist said: “I don’t understand with what mindset the budget was prepared?”

The tax target set for the previous fiscal year could not be met due to the lack of economic growth, he said, adding that he did not find any proposal to increase economic growth in the budget.

The budget did not discuss production cost, exports and rate of gas, he said, adding: “Electricity rates have been reduced but the industry runs on gas.

Former finance minister Miftah Ismail termed the budget reasonable, stating that taxes were lowered on certain products, while at the same time, they were increased for others.

Speaking to Geo News, he said the government also provided a slight break to the salaried class by lowering tax slabs for different income groups.

However, he lamented that no measures were announced to shrink the size of the government and slash expenditures.

Rather than cutting expenditures, the former finance czar said the government increased current expenditures by 17% and allocation for PSDP despite a drop in inflation.

Miftah further said substantial relief measures should have been announced for the salaried class, as the government had the fiscal space and opportunity in the budget.

Topline Security Chief Executive Officer (CEO) Mohammed Sohail said, based on initial assessment, budget FY26 continues the government’s commitment to fiscal consolidation under IMF guidance.

“Fiscal deficit, which was close to 8% a few years ago, is now targeted at 3.9% of GDP—a major improvement driven by stronger tax measures and better expenditure control,” he noted.

He added that maintaining discipline is key to economic stability.

Speaking on Geo News programme “Naya Pakistan”, Prominent industrialist Arif Habib, however, termed the budget “growth oriented” and directed towards “fiscal consolidation”.

Lauding the budget, he said that the budget deficit for the upcoming fiscal year was suggested at 3.9% of the GDP. Two years before, it was 8% of the fiscal deficit. Primary surplus was also impressive.

Lauding the budget, he noted that the deficit for the upcoming fiscal year has been projected at 3.9% of GDP. Two years earlier, the fiscal deficit stood at 8%, he added.

“Primary surplus is also impressive,” Habib added.