THIS is with reference to the report “Austerity budget offers ‘crumbs’ for relief” (June 11). The budget for the 2025-26 fiscal, worth Rs17.57 trillion, shows a massive fiscal deficit of Rs6.4 trillion. While the tax relief for salaried individuals is minimal, it will still be largely welcomed in the spirit of something being better than nothing. However, the overall impact of the budget is likely to be seriously negative on Pakistan’s lower, lower-middle and middle-income segments of the population.

The most worrying elements are the petroleum and carbon levies announced in the budget. These will lead to a rise in fuel prices, directly affecting trans-portation and carriage costs. This, in turn, will lead to an immediate increase in the prices of daily necessities, like food, vegetables and basic household items. For people already battling inflation, the budget has brought more worry than relief.

But government employees, especially the senior ones, and parliamentarians are once again the main beneficiaries. They have been granted salary increases, special allowances, and various exemp-tions, further widening the gap between the elite and the struggling majority.

Moreover, the huge budgetary deficit means the government will have to continue to rely on external loans or indirect taxation in the near future. This is bound to add to the burden on the shoulders of the masses.

A fair budget must protect the majority, not reward the privileged few. Our policies must reflect the realities of those who live hand-to-mouth. Else, it is pointless to even hope for any meaningful change.

Wasif Khaliq Dad
Rawalpindi

Published in Dawn, June 13th, 2025