Islamabad: Economists have expressed approval for the federal budget of the fiscal year 2026-27, indicating that the government has successfully completed the process of economic stabilization in collaboration with the International Monetary Fund (IMF). The budget outlines significant achievements on the economic front, fiscal management, and a roadmap for the country's future economic uplift. Despite financial constraints, the budget proposes substantial relief for the vulnerable segments of society and incentives for industrialization, alongside relief measures for the salaried class amounting to Rs 360 billion.According to Radio Pakistan, the government has introduced a faceless Federal Board of Revenue (FBR) to provide a stress-free tax regime for businesses, which is seen as a positive development. The overall budget is perceived as people-friendly and a step in the right direction, promising a steady inflow of foreign investment. The current number of tax filers stands at approximately 3.5 million, an d the budget measures are expected to expand the tax net considerably. The agriculture sector is highlighted as an area requiring attention for ensuring food security. Additionally, an Iran-US deal is anticipated to positively impact the Pakistani economy.Dr. Abid Rasheed Gill, an economic expert, noted that Prime Minister Shehbaz Sharif has extended a negotiation offer to the opposition for national economic stability. He emphasized the necessity of political stability for attracting foreign and domestic investment, suggesting that political parties should sign a Charter of Economy, similar to the Charter of Democracy, to ensure political stability for at least the next decade. Despite financial constraints limiting incentives for investors and industrialists, the government can enhance service standards and expand the tax net to improve the tax-to-GDP ratio, which is currently low compared to other countries.Economic expert Asif Shahzad remarked on the government's efforts in the agricultural sector and acknowledged the relief provided to the business class, albeit with increased taxes on small cars. He advocated for a simplified tax system and a single form for shopkeepers as positive steps. Shahzad also recommended announcing incentives for taxpayers to broaden the tax net and urged the FBR to adopt a lenient approach towards taxpayers.
