PM Shehbaz terms federal budget 'people-friendly', hopes it will promote an 'export-oriented' economy

Lead

Prime Minister Shehbaz Sharif has defended the federal budget for fiscal year 2026-27 as "people-friendly" and expressed hope that it will steer Pakistan toward an "export-oriented" economy, even as the opposition criticized key spending decisions. The budget, which was approved by the federal cabinet and presented to parliament, comes amid signs of economic stabilization but also lingering public hardship.

Speaking at a meeting with women parliamentarians from his PML-N party, PM Shehbaz said the budget would benefit ordinary citizens once peace is restored in the region, according to a statement from his office. He also highlighted measures to empower women and increase their inclusion in the mainstream, calling it a "top priority" for the government.

Coverage Comparison

Dawn, Pakistan's leading English-language daily, reported the prime minister's remarks across multiple articles covering the cabinet meeting, the budget presentation, and the subsequent parliamentary debate. While the coverage consistently quoted PM Shehbaz's optimistic framing, it also gave prominence to opposition criticism during the National Assembly's opening day of budget debate.

The budget debate, which formally began on a Saturday, was dominated by political speeches rather than detailed fiscal analysis, according to Dawn. Opposition Leader Mehmood Khan Achakzai delivered a lengthy speech criticizing the government's decision to freeze development allocations for provinces, arguing it would harm health and social sectors.

Key Claims

• PM Shehbaz said the government had to impose taxes in the past two budgets due to "national and IMF requirements" to stabilize the economy, acknowledging that "the common man had to face many difficulties due to it."
• He reported that inflation had declined to single-digit from 38 per cent over two years, before a slight increase due to the Middle East conflict, and that the policy rate had dipped to 11 per cent from 22.5 per cent but was later raised because of the US-Iran war.
• The budget proposes taxes on social media earnings and a fixed tax scheme for small traders, according to the prime minister's meeting with women parliamentarians.
• PM Shehbaz affirmed the government's commitment to developing all provinces, citing projects in Balochistan including solar panel distribution to farmers and the Reko Diq project.
• The prime minister also stressed the need for "strong" security, saying "no nation can handle its matters, let alone make progress, if its security is not strong and invincible."

Perspectives

The government's perspective, as articulated by PM Shehbaz, is that the budget is relief-oriented and pro-growth, with the prime minister thanking the 240 million citizens for their patience during recent inflationary pressures. He framed the budget as a step toward a stable economy and expanded progress avenues.

The opposition's viewpoint, led by Mehmood Khan Achakzai, contends that freezing provincial development funds will undermine health and social services. In his response, PM Shehbaz defended the approach, saying all provinces would benefit from collective progress and that "even a house cannot function without financial and social justice."

The prime minister also renewed an offer for talks with the opposition, suggesting that while political differences exist, there is consensus on national unity. He noted, "Each one can have their politics and vision, but one thing that this House will always attest to is that we are here if Pakistan is."