Economy sparks verbal duel in NA

Treasury defends relief measures, opp calls budget IMF-driven

ISLAMABAD:

The National Assembly witnessed a heated exchange on Sunday as treasury and opposition lawmakers came face to face, with the government defending the federal budget as a roadmap for economic recovery and the opposition dismissing it as an IMF-dictated document.

Opening the government's defence of the budget in the house, Federal Minister for Information and Broadcasting Attaullah Tarar said the budget had provided substantial relief to salaried individuals and should be acknowledged by the opposition instead of being criticized for political reasons.

Tarar said history would remember the moment when Prime Minister Shehbaz Sharif chose to prioritize the state over politics during one of the country's most difficult economic periods.

"There was a time when people were betting on Pakistan's default. The prime minister stood firm and said he would save the state regardless of the political cost," Tarar said.

He maintained that the government inherited an economy on the brink of collapse and had succeeded in restoring stability through difficult decisions.

According to the minister, salaried employees had received significant relief in the budget, with no income tax on salaries up to Rs50,000 per month and a one percent tax rate on monthly incomes between Rs50,000 and Rs100,000.

He said the government had responded to demands regarding taxation slabs and had attempted to ease the burden on taxpayers. Tarar also accused the opposition of creating an atmosphere of confrontation in the house, recalling scenes in previous years when documents were torn and books burned on assembly desks.

"The opposition should appreciate positive measures when they are taken," he said.

Defending the government's economic policies, Tarar said reforms introduced in the Federal Board of Revenue (FBR) would bring long-term benefits to citizens and establish a fairer taxation system.

"The biggest injustice in the past was that those who paid taxes were carrying the burden of those who did not," he said, adding that nearly 3.6 million retailers remained outside the tax net for years.

He highlighted the digitization of FBR operations and said international organizations, including the Gates Foundation, had supported reform efforts. He argued that engagement with the International Monetary Fund had helped prevent economic collapse and restore confidence in the economy.

"There was a time when the exchange rate fluctuated wildly and businesses could not open letters of credit. Inflation had reached 38 percent. Today, stability has returned and inflation has come down significantly," he said.

Tarar also credited state institutions and the economic team led by Prime Minister Shehbaz Sharif for improving economic indicators. He said foreign exchange reserves had reached $17.2 billion and interest rates had declined substantially from previous highs.

He claimed that enforcement measures undertaken by the Ministry of Finance and FBR had generated an additional Rs800 billion in revenue during the previous fiscal year.

He further pointed to relief measures for the housing sector, including tax reductions for small residential plots and houses and the continuation of low-cost housing initiatives under which loans of up to Rs10 million would be available to deserving families.

The opposition, however, rejected the government's narrative and questioned its claims of economic improvement. Former National Assembly speaker and PTI leader Asad Qaiser described the budget as an IMF budget and accused the government of misrepresenting facts.

Speaking during the debate, Qaiser said the government's claims of relief were disconnected from the realities faced by citizens. "Ninety multinational companies have left Pakistan. Unemployment has increased. Tell us what relief has actually been provided to the people," he said.

Qaiser argued that despite repeated government claims of economic recovery, ordinary Pakistanis continued to struggle with rising costs and declining opportunities. He challenged the treasury benches to identify a single major sector that had received meaningful relief under the budget.

The PTI leader also rejected allegations that his party had acted against national interests and defended PTI's position on judicial independence and democratic governance.

"We have always spoken for Pakistan and presented our point of view honestly," he said.

Qaiser called for a comparison of borrowing under successive governments and questioned the effectiveness of the government's economic policies. He highlighted the plight of farmers, claiming that wheat growers in Punjab suffered losses amounting to Rs2.2 trillion due to government policies.

"The farmer has been devastated. The government must explain how much new investment it has brought into the country and what concrete steps it has taken to provide real relief," he said.

The PTI leader argued that Pakistan's economic challenges could only be addressed through transparent policymaking and political stability.

The exchange triggered interruptions from both sides of the aisle, with lawmakers engaging in heated arguments over economic performance, taxation and governance.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal also entered the debate and accused the PTI government of undermining democratic norms during its tenure.

Responding directly to Qaiser's remarks, Ahsan Iqbal said discussions on the budget should be based on facts rather than political misrepresentation.

He alleged that opposition parliamentarians during the PTI government had struggled to secure production orders for detained lawmakers and accused the former administration of victimizing political opponents through politically motivated cases.

The minister also highlighted development projects undertaken in Swabi, Qaiser's constituency, including the establishment of a university whose foundation stone he said he had personally laid.

Lahore press conference

Addressing a press conference in Lahore, senior PTI leader Sardar Latif Khosa described the financial plan as an IMF-driven, elite-centric budget that would increase hardship for citizens already struggling with inflation and poverty.

Khosa questioned the government's plan to raise FBR revenues to Rs15.264 trillion in the next fiscal year, arguing that the ambitious target would ultimately translate into additional taxes and increased pressure on ordinary Pakistanis.