An untenable approach

The government has dropped hints that the upcoming budget may not feature any raise in salaries and pensions – suggesting a lack of consideration for the economic pressures facing the salaried sector. The Federal Minister of State for Finance has, in a recent statement, cited IMF commitments for the government's inability to offer any fiscal relief to the masses. The statement underscores how disconnected policymakers remain from the harsh economic realities confronting average citizens. It speaks of the hollowness of the dispensation in addressing economic woes despite tall claims of achieving financial stability, improving forex reserves and restoring confidence of the lenders.

The masses are rather in for another bombshell of taxation. The provinces have been asked to generate an additional Rs400 billion, as the federation has to extract another Rs268 billion from petroleum development levy – something that would send the prices, already in excess of Rs400 per litre, even higher. Likewise, our products, lacking competitiveness in the international market, have resulted in our exports dropping by 6.25% to $25.21 billion during the July-April period of FY26. Imports, on the other hand, have crossed the $50 billion mark in the first 10 months of the ongoing fiscal, reflecting an increase of over 9 per cent. That obviously has an impact on the prices of essentials that are conveniently getting out of the common man's reach.

The laissez-faire approach of the government has emboldened elite capture – remember, $22 billion per annum are usurped in the country, according to World Bank estimates. No wonder, a further 10% of the populace has fallen below the poverty line. With more than 10 million stunted children, 26 million out of school kids, 7% unemployed individuals and 53% souls devoid of drinking water, the fabric of nationhood is in tatters. Last but not least, the government's austerity is no less than a mockery as the mighty and the powerful hold sway over state resources. The least that is desired is to protect the downtrodden from the dictates of the lenders.