Maps
Magazine

POLITICS & POLICY MAKING

Shahid Khaqan Abbasi, Miftah Ismail Slam Budget 2025–26: "Unjust Tax System, 44% Below Poverty Line"
Shahid Khaqan Abbasi says govt’s tax system is unjust, burdens salaried class while raising MPAs/MNAs salaries by 400%. “Even eggs & pensions taxed; poor suffer as elite enjoys perks.”
ND
by News Desk
2025-06-25
Shahid Khaqan Abbasi, Miftah Ismail Slam Budget 2025–26:

Former Prime Minister and Awami Pakistan Party (APP) chief Shahid Khaqan Abbasi has strongly criticized the federal budget for the fiscal year 2025–26, calling it unjust, unsustainable, and burdened with elite privileges while the salaried class bears the brunt.

In a joint press conference with former Finance Minister Miftah Ismail, Abbasi expressed alarm over the sharp increases in salaries and benefits for lawmakers and ministers amid deepening poverty and rising inflation.

"Forty-four percent of the country is now below the poverty line, yet the government increases salaries of ministers by 188% and MPAs/MNAs by 400%. Can’t they reduce their own expenses instead of taking more loans?" Abbasi asked.

A System That Cannot Work

The former prime minister slammed the current tax system, saying it only burdens a few lakh salaried individuals while the rich enjoy exemptions and luxuries.

"The salaried class is paying Rs 600 billion in taxes. And now pensions and fixed income are being taxed too. This system is not based on justice – it cannot work,” he said.

Abbasi further highlighted that government expenditures continue to rise while essential public services remain underfunded. "Even chicken and eggs are taxed now, while billions are spent on government perks," he said.

No Real Change in Budget Approach

Abbasi accused successive governments of presenting the same old traditional budgets focused on figures rather than reforms. He claimed that whether it was the PTI or the current coalition, no structural improvements have been made.

“This is the third budget by this government. It’s no different from those presented 10 or 15 years ago. Nothing changes. Just loans and manipulations,” he remarked.

He also noted that the Petroleum Development Levy (PDL) continues to rise and gas and electricity prices have soared, placing even more pressure on struggling households.

Miftah Ismail: IMF Used Against Poor, Not Elites

Speaking alongside Abbasi, economist and former finance minister Miftah Ismail questioned the selective implementation of IMF policies, saying:

"When it comes to taxing the poor, the IMF is remembered. But when salaries of MPAs and MNAs are increased, IMF is conveniently forgotten."

Miftah also criticized the taxation on basic necessities like eggs, protein, and poultry, saying it disproportionately affects the working and lower-middle class.

Key Points Raised by Abbasi & Ismail:

·       400% salary hike for MPAs/MNAs, 188% for ministers

·       44% of Pakistanis now live below the poverty line

·       Rs 600 billion tax burden on salaried class

·       Gas & electricity prices increased again despite earlier promises

·       Fixed incomes & pensions now face taxation

·       Debt-fueled budgets have become the norm

·       Imports of 750,000 tons of sugar after previous mass exports

·       Call for systemic tax reform, reduction in elite perks

Abbasi concluded that without comprehensive reform, the system will continue to push more Pakistanis into poverty and stall the economy’s growth.

 
Tagged:

Budget2025

MiftahIsmail

TaxJustice

KhaqanAbbasi
Share News: