PBF slams budget for ignoring agriculture

KARACHI: The Pakistan Business Forum (PBF) criticised the federal budget for FY2025-26, warning it offers no meaningful relief for the agriculture sector or business community, and risks fuelling inflation through aggressive revenue targets.

“The agriculture sector has once again been ignored,” said PBF Chief Organiser Ahmad Jawad in a post-budget statement. “How does the government plan to achieve 4.5 per cent growth when farmers, who already delivered 0.56 per cent growth this year, are left unsupported?”

Jawad said the budget lacks a roadmap for export-led growth. He called the minimal reduction in super tax “disappointing”, and criticised the Finance Bill for retaining controversial provisions such as Sections 14AC, 14AD, and 37AA. He warned that Rs14.1 trillion tax collection target -- up nearly 9.0 per cent from the previous year -- could stoke inflation and hinder business activity. “The FBR has been given unchecked powers while there is no visible plan to broaden the tax net,” he added.

The PBF also opposed an increase in the petroleum levy and rejected the introduction of a carbon tax. Jawad said the business community had hoped for lower power tariffs of 9 cents/unit, but instead, the government plans to take a Rs1.25 trillion loan to resolve circular debt -- interest on which would be passed on to consumers via power bills.

He further questioned the allocation of over Rs8 trillion to provinces, suggesting that provincial governments -- particularly Punjab, which holds a cash surplus -- should contribute to national development and defence. “This budget disappoints those expecting structural reforms after 18 months of macroeconomic stabilisation,” said Jawad. “There is not much here to signal a shift towards sustainable growth.”Still, the PBF welcomed the reduction in federal excise duty and withholding tax in the property sector, and acknowledged improvements in the regulatory duty regime.