Former prime minister Shahid Khaqan Abbasi has criticised the government's reliance on indirect taxation, saying it places an unfair burden on ordinary citizens, who continue to bear the brunt of economic pressures. Speaking at a press conference, he said increasing taxes without addressing fundamental weaknesses in the country's economic structure was adding to existing problems instead of solving them.
Debt Reaches Rs85 Trillion
Abbasi noted that Pakistan’s total debt has climbed to around Rs85 trillion, describing the situation as a major concern for the national economy. He said current economic policies were contributing to a growing debt burden and increasing financial challenges. According to him, meaningful economic reforms are essential, as further tax increases alone cannot offer a lasting solution to the country's economic difficulties.
Warning on Economic Stability
He warned that the rising debt load poses a serious threat to economic stability and said continued financial mismanagement could further worsen the fiscal situation.
Government Defends Budget
Earlier, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb defended the federal budget for 2026-27, saying it reflects Pakistan’s shift from economic recovery towards sustainable growth, with a focus on exports and improving the business environment. Addressing a post-budget press conference alongside Federal Minister for Information and Broadcasting Attaullah Tarar, Minister of State for Finance Bilal Azhar Kayani, senior finance officials and the chairman of the Federal Board of Revenue (FBR), Aurangzeb highlighted measures aimed at strengthening competitiveness, boosting exports and accelerating economic activity.
Progress Towards Growth
Reviewing the country's economic performance, the finance minister said the government had successfully moved beyond the recovery phase discussed last year and was now concentrating on long-term growth. “When we sat here last year, we spoke about economic recovery. Today, I can say that we have made meaningful progress and are now moving towards growth,” he said.
