A respected business leader and former president of the Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt stated on Thursday that the newly announced budget aligns with the pressing demands of the time. However, he expressed concern over the limited relief extended to the public and the salaried class.
He stated that, in light of the extraordinary economic pressures, stringent IMF conditions, rising global tensions, and ongoing Indian hostilities, the federal budget addresses necessary defense, fiscal, and strategic considerations.
In a statement issued today, Shahid Rashid Butt said that the increase in the defense allocation was inevitable, as the prevailing regional situation, a resurgence in terrorism, India’s water aggression, and emerging unconventional threats have made national security the foremost priority. The 21 percent hike in the defense budget reflects the state’s seriousness in safeguarding its sovereignty and survival.
He added that the revenue target has been ambitiously raised by 18.7 percent to Rs 14.13 trillion despite a shortfall of Rs 1.07 trillion in the current fiscal year. Despite repeated claims of expanding the tax net, industrial units operating in tribal areas have not been fully brought under the tax framework.
It is crucial that the concerns of the business community, particularly the controversial tax on the emerging solar energy sector, are addressed with sincerity.
He acknowledged the positive aspects of the budget, including incentives for the revival of the industry and construction sectors, which could help stimulate economic activity. Nonetheless, he criticized the reduction in the higher education budget from Rs 65 billion to Rs 39.5 billion, calling it equivalent to cutting investment in future generations. Similarly, he noted that an allocation of only Rs 2.38 billion for climate change mitigation is insufficient, given the gravity of the crisis.
Shahid Rashid Butt emphasized that the budget-making process is just the beginning. To ensure the successful implementation of fiscal measures, we need not just political stability and national consensus, but also a constructive dialogue. He urged all political parties to refrain from criticism for its own sake and instead work collaboratively with the government to improve the budget in the national interest. Only through such collective effort, he said, can Pakistan move towards economic self-reliance, national security, and sustained development.
