Hussain Tariq points out 54% inflation in electricity and asks how those who earn the minimum wage will pay the bills
Pakistan People’s Party (PPP) MNA Hussain Tariq on Sunday termed the direct tax targets, set in the new budget at Rs 6.9 trillion, as “very ambitious and unlikely to be achieved”, and asked Finance Minister Muhammad Aurangzeb to respond to his concerns.
Tariq stated that the budget is not just about numbers, but also about balancing “debit and credit” and providing financial direction to the country’s people. He said the PPP understands budget discussions “on facts and figures,” but the party has always emphasized how the budget affects ordinary citizens.
“If people benefit, that’s fine, but if a budget makes things more expensive, then we think it should be changed,” he said, adding that there have been ongoing discussions within the government on the issue.
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Referring to the targets set by the Federal Board of Revenue (FBR), the MNA noted that a target of Rs 14.131 trillion had been set which, like every year, was not achieved and had to be revised. He said the new target of Rp15.264 trillion represents a 17% increase compared to last year, while inflation has been adjusted to 8%. “Beyond that, how will it adjust?” he questioned, adding that PPP president Bilawal Bhutto Zardari had also pointed out that the FBR sets targets but does not achieve them, after which a “tug of war” begins between the state and the provinces over fiscal responsibilities.
Regarding indirect taxes, Tariq said that all members recognize them as regressive. He pointed to a revised fiscal target of Rp6.5 trillion and said overall a 17% revision has been added.
Furthermore, highlighting inflationary pressures, he said the price sensitive indicator has increased by 14.75%, reflecting a significant impact on the poor. He referred to year-on-year data as of June 4, stating that prices of 51 essential items used by low-income groups have increased.
“I agree that inflation is around 8% overall,” he said, “but there are other pressures as well.” The MNA added that although oil prices have increased due to war-related conditions, electricity inflation has increased by 54% in one year. “If a person earns minimum wage, how will they pay their electricity bills?” -Tariq questioned.
“If you pay the bills, you will not be able to meet the needs of your children,” he said, stressing that citizens should not be left helpless due to external conditions such as war.
The MNA also added that the budget does not appear to provide clear financial direction for the coming years, particularly in terms of job creation and short- and long-term economic policy.
On agriculture, he said he appreciated Minister Rana Tanveer Hussain for his efforts in the national food security sector. He noted that opportunities in areas such as GMOs and gene editing had not been fully exploited in the past, and said policy improvements had been made, but farmers still did not benefit enough to invest in modern machinery.
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He said farming often produces only a 50% profit margin while input costs remain high. Referring to the government’s comments, Tariq said the Finance Minister had stated that agriculture received significant attention last year, but this year there was only limited discussion.
Tariq also mentioned that Rs 117.4 billion was allocated to agriculture, which he described as the backbone of the economy.
The MNA concluded by emphasizing regional equity, saying it should not only be considered at the provincial level but should also extend to investment at the district level, where economic stress is most visible.
