he federal budget announced last week was front-loaded as expected. What was not expected was that the measures that can hurt the rich would be so diluted and the measures that hurt the poor would be fully incorporated.

The salaried people mainly belonging to the middle class, for instance, have been disappointed as their income tax liabilities will nearly double next year. The highest income tax slab that the IMF had proposed was dropped to protect the richest.

The minimum salary for an unskilled worker has been enhanced by Rs 5,000 per month to Rs 37,000. However, it is well known that hardly 10 percent of the workers actually get the legal minimum wage. The rest are employed as contract workers and denied job security and minimum wage protection. There is simply no protection for housemaids or those employed at shops.

The salaries of government servants have been enhanced by 15-25 percent. An employee, drawing Rs 250,000 per month, for instance, will get an increment of Rs 37,500 per month, which is more than the minimum wage for an unskilled worker. The impact of enhanced salaries for the government servants will be around Rs 1 trillion (this includes both federal and provincial government employees.)

Inflation was reported to have dropped to 11 percent in May. However, the 12-month average was still over 24........

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