THERE was widespread speculation and uncertainty surrounding the Federal Budget 2026-27, as there was little hope of meaningful concessions or relief for the salaried and middle classes. This budget was never expected to resolve all of Pakistan’s deep-rooted problems that have accumulated over decades due to inconsistent policies, interruptions in the democratic process a culture of ad hoc decision-making since the country’s inception. It was unrealistic to expect that issues such as poverty, unemployment, illiteracy, fiscal deficits, trade deficit, tax shortfalls, inflation numerous other economic challenges could be addressed through a single budget. However, the government claims that economic stability has been achieved and that the country is now on a steady path toward recovery.

It is an open secret that successive governments have often chosen the easier option of imposing indirect taxes rather than taxing the wealthiest segments of society. This affluent class enjoys a strong presence in Parliament and provincial assemblies and continues to benefit from an unstable political system. Consequently, it may still take years before meaningful relief reaches the poorer sections of Pakistani society. The real challenge was to bring into the tax net those who own multiple palatial houses equipped with every luxury, highly expensive vehicles exceeding 5000cc, valuable properties abroad, large industrial units, vast agricultural estates, extensive real estate holdings major departmental stores. However, governments have repeatedly failed to tax these influential groups effectively due to the absence of an independent accountability system and the persistence of a corrupt political structure.

Does the government have the will, courage institutional capacity to question the sources of wealth from which these assets were acquired? Unfortunately, the system has often provided safe havens through various amnesty schemes introduced from time to time.........

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