Rabbani rejects ‘IMF-sponsored’ budget, terms finance minister ‘mere reader’

ISLAMABAD: Former Chairman Senate Mian Raza Rabbani rejected the Federal Budget, stating that the “IMF-sponsored” budget had been announced by the finance minister, who was merely a “reader” of the document. “In terms of relief for the common man, the budget provides only lip service and peanuts in terms of practical relief,” he said in a statement on Wednesday while rejecting the federal budget for the next fiscal year, 2025-26.

Raza Rabbani pointed out 13 shortcomings the budget suffers from, among other shortcomings. First, Raza Rabbani said that this budget has been passed on the basis of the last NFC, which was announced in 2010. Second, he said that no minimum wage has been fixed, and it remains static at Rs. 37,000; the minimum wage should be at least Rs. 50,000 per month. Third, he said that the income tax relief given to the salaried class amounts to naught. Fourth, he said that the 10% pay increase given to government servants is insufficient, particularly when in the recent past the ruling elite has increased their own salaries manifold. Fifth, Rabbani pointed out that the 7% increase in pensions, keeping in mind the rising cost of living, is insufficient. Sixth, he stated that at the behest of the IMF, the car manufacturing industry has been unduly brought under a heavy tax regime. Seventh, Raza Rabbani pointed out that relief has been provided to the compardo capitalists in terms of construction and real estate. Eighth, he said that no provision has been made to improve unemployment. The former chairman said that the common man will be hit with the new tax on online shopping. He said that the health allocation has been cut by 16%.

He pointed out that there is no noticeable increase in education. He said that a 10% power bill surcharge is to be added and pointed out that the government looks to collect Rs 1.468 trillion in the next year through the petroleum levy.