Shahid Khaqan Abbasi, former Prime Minister and leader of Awam Pakistan Party, strongly criticized Pakistan’s tax system. He said the system is not based on justice, and the recent budget proves it cannot work. Speaking alongside former Finance Minister Miftah Ismail, Abbasi called the budget outdated and unchanged from the past 30 years. He said the government tries to cover expenses by adding new taxes and borrowing more money, instead of controlling costs.
Abbasi warned that if the Federal Board of Revenue (FBR) system does not improve, investors will take their money out of the country. He said the government’s strategy increases financial deficits but harms the poor the most. Over the past four years, taxes have risen sharply, and inflation has worsened due to higher energy prices. He added that unemployment and poverty have also grown, while the government failed to provide any relief to citizens.
He criticized government officials for raising their own salaries by huge amounts. Minister salaries increased by 188%, and members of the National Assembly raised theirs by 400%. Abbasi called this move unfair, especially as many people in the country live in extreme poverty. He said nearly half of Pakistan’s population is poor, with over 40 million suffering from severe poverty, while politicians focus on their own benefits.
Abbasi also condemned the government’s taxes on everyday items like poultry, which will generate billions in revenue but burden poor families. He blamed political ties for poor economic decisions, such as exporting sugar while imports increase at higher prices, causing huge losses to consumers. Furthermore, pensioners were taxed more, and taxes on investment profits were raised, adding to public hardship.
Shahid Khaqan Abbasi urged the government to reform the tax system completely. He questioned how companies can grow if 62% of their income goes to taxes. He said high interest payments now exceed defense spending, and corruption wastes billions. He stressed that the government must reduce expenses, improve transparency in tax collection, and stop burdening the poor with unfair taxes to ensure economic growth.