Finance ministry says report on Dar being handed budget-making process 'misleading, incorrect'

Lead

Pakistan's Ministry of Finance has rejected a media report claiming that Deputy Prime Minister and Foreign Minister Ishaq Dar was handed responsibility for the country's budget-making process. In a statement issued Thursday, the ministry called the report by The Express Tribune "misleading" and "factually incorrect."

The denial follows a story published by The Express Tribune that said the prime minister had assigned the budget-making role to Dar after finding the initial work "below par." The report, which cited a government notification, claimed that a Dar-led committee would finalize roughly Rs215 billion to Rs230 billion in new taxes and have the final say on tax relief.

The Finance Ministry's statement said such an interpretation "does not reflect the actual mandate or functioning" of the committee. It emphasized that the Prime Minister's initiative to form a review committee is a routine step to ensure thorough policy review.

Coverage Comparison

As of this writing, the official denial—issued by Pakistan's finance ministry—has been covered by Dawn, the country's leading English-language daily. Two articles from Dawn, published Thursday, report the same core facts: a summary of the ministry's clarification, a mention of Prime Minister Shehbaz Sharif forming a Dar-led committee, and a note that Minister of Finance Muhammad Aurangzeb is part of the committee. Both articles share the same framing: a government denial of a report, focusing on the ministry's official statement. No independent reporting confirming the original Express Tribune story has yet surfaced in the available sources.

Key Claims

The main claim, echoed in both Dawn articles, is that the Finance Ministry has strongly rejected the Express Tribune's portrayal of the committee as being in charge of the budget. The ministry's statement specifically says the story incorrectly depicts a "handover" of budget-making responsibility, or a "sidelining" of Finance Minister Aurangzeb. This interpretation, the ministry says, is "factually incorrect."

Another claim from the ministry is that while Prime Minister Shehbaz Sharif has constituted a committee led by Dar, its mandate is limited to reviewing and analyzing tax policy proposals from the Tax Policy Office—a unit under the Finance Division. The committee is tasked with finalizing new taxes and tax relief, with a reported target of Rs 215 to 230 billion in new revenues.

Finance Minister Aurangzeb is indicated as a member of the committee, according to one of the reports, underscoring that the minister is not excluded from the process. Additionally, multiple articles mention that a separate committee on enforcement measures has been formed, led by Ahad Khan Cheema, to refine revenue administration and enforcement proposals.

The ministry also strongly rejected the claim that budget decision-making has effectively moved out of the finance ministry's headquarters, the Q Block. The statement says the committee's role is supportive, not authoritative.

Perspectives

Government/Institutional Perspective: The Ministry of Finance's declaration is explicit: the committee is a high-level review body, not a decision-making entity that replaces the Finance Division. It insists that the Prime Minister of Pakistan only wanted a deeper review. The committee's name—the "Prime Minister's Committee for Tax Policy Review"—was part of the official notification.

Journalistic Interpretation (As presented by The Express Tribune, according to Dawn reports): The original story interpreted the prime minister's notifications as implying that Dar and Cheema now effectively control the budget process, with Dar getting the decision-making authority on taxes and relief. The second committee, led by Cheema, was suggested to handle enforcement.

Potential Gap: The available reports do not include an official response from the Prime Minister's Office, nor a statement from the Brad Dar or Ahad Cheema. It also does not include an independent analysis of the committee's mandate—whether it is an ordinary budgeting step or a sign of a shift in power is unclear. Without the original Express Tribune text, it is not possible to fully evaluate whether the news outlet's interpretation had evidence or if the ministry's denial mischaracterizes the role.

Contextual Note

This is not the first time that Pakistani political circles have seen tension between the Finance Minister and the Deputy Prime Minister (who is also a former finance minister) over budget and economic policy. However, the current statement from the finance ministry clarifies that the current finance minister's authority perceives as being intact. The exact scope of the new committee—whether it can override the finance minister—has not been publicly discussed.

As was the case at the time of publishing, no separate reaction to the government has been released. This article will be updated if more information becomes available.