Islamabad: Analysts have positively assessed the government’s budget for the fiscal year 2025-26, emphasizing its potential to provide relief amidst ongoing global challenges. Dr. Hassan Daud Butt, an economist, highlighted that the budget was presented during Pakistan’s ongoing IMF program, limiting the capacity to offer substantial relaxations to the public. He noted that global conflicts, such as those between Iran and Israel, and Russia and Ukraine, have indirect implications for Pakistan due to the interconnected nature of the global economy. Despite these challenges, Dr. Butt described the budget as encouraging, noting measures like the gradual reduction of tax rates for the salaried class and adjusted import slabs. However, he expressed concern over the 18% tax on solar panels and advocated for a public debate to highlight the budget’s positive aspects.

According to Radio Pakistan, Hamayun Iqbal Shami, an international relations analyst, described the budget as traditional, neither favoring nor disadv
antaging the public, similar to budgets from previous administrations. He pointed out signs of economic improvement, including reduced inflation, increased remittances, and notable GDP growth. However, Shami mentioned the weak performance of Pakistan’s large-scale manufacturing and agricultural sectors. He highlighted the constraints imposed by the IMF program, such as high tax rates, with the corporate tax rate at approximately 49%, which he believes hinders investment. Shami suggested that reducing tax rates could attract more investments and business activities, drawing comparisons to countries like Dubai.