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Leila Khan

Budget 2026-27, Sacrifice for Some, Not for All

Published on: June 11, 2026 2:53 AM

June 11, 2026 by Leila Khan

As Pakistan approaches Budget 2026-27, citizens are once again being prepared for what has become a familiar national ritual: sacrifice.

The government will speak of fiscal discipline. Revenue targets will dominate the conversation. The need to satisfy lenders, manage debt obligations and stabilise the economy will be cited as justification for difficult decisions. As in previous years, Pakistanis can expect some combination of higher taxes, increased utility costs, rising fuel prices and further pressure on household budgets.

For years, ordinary citizens have borne the cost of economic adjustment. Salaried individuals have seen their tax burden rise while inflation steadily erodes purchasing power. Businesses face growing compliance requirements and increasing operating costs. Families carefully monitor electricity consumption, fuel usage and everyday spending because even modest price increases can upset monthly budgets.

Before asking citizens to tighten their belts once again, the state must show that it is willing to tighten its own.

The public has become accustomed to sacrifice. The real question is whether the government is prepared to make sacrifices of its own.

The issue is not that people oppose taxation. Most citizens understand that governments require revenue to function and public services must be funded. The problem is that taxpayers increasingly struggle to see evidence that the state is exercising the same financial discipline it expects from them.

Every budget season, the debate revolves around how much additional revenue can be collected from existing taxpayers. Far less attention is given to a more fundamental question: how efficiently is public money being spent?

Pakistan’s federal structure includes a vast network of ministries, departments, authorities, commissions, regulatory bodies, autonomous organisations and public-sector entities. Many serve important functions. Others operate in areas where responsibilities overlap, duplication exists, and effectiveness remains difficult to measure.

Successive governments have promised reforms to streamline the public sector. Committees have been formed, reports have been written, and recommendations have been announced. Yet the machinery of government continues to expand while meaningful restructuring remains largely absent.

As a result, many Pakistanis have come to believe that when fiscal pressures arise, the easiest solution is not to reform the state but to ask citizens to contribute more.

That perception deepens when people look at the broader costs of governance.

Official residences, government vehicles, protocol arrangements, administrative overheads, foreign travel, discretionary expenditures and the operational expenses of countless public institutions create the impression of a state insulated from the sacrifices it demands from others.

Whether these expenditures account for a large or small share of total government spending is almost beside the point.

A citizen struggling with higher electricity bills is unlikely to be persuaded by arguments about fiscal necessity if they continue to see waste, inefficiency or privilege within the public sector. A business owner trying to stay afloat amid rising costs will naturally question why private enterprise is expected to become leaner and more efficient while government structures appear largely untouched.

This is no longer just an economic issue. It is a governance issue.

The success of any reform programme depends not only on sound financial logic but also on public trust. Citizens are far more willing to accept difficult measures when they believe the burden is being shared fairly. Conversely, even necessary reforms face resistance when people conclude that sacrifice is being demanded selectively.

The upcoming budget, therefore, presents an opportunity that goes beyond balancing accounts.

It offers the government a chance to demonstrate that fiscal discipline begins at home.

A serious review of overlapping institutions, a transparent assessment of public-sector spending, reductions in non-essential administrative costs and a clear commitment to improving efficiency would send a powerful message. Such measures may not eliminate the fiscal deficit overnight, but they would strengthen something equally important: public confidence.

Pakistan’s economic challenges are real. Revenue must increase, debt obligations must be met, and difficult choices cannot be postponed forever.

But if Budget 2026-27 is to be remembered as a budget of sacrifice, then sacrifice cannot remain a one-way street.

Before asking citizens to tighten their belts once again, the state must show that it is willing to tighten its own.

Only then will the burdens of economic reform be seen not as demands imposed on the public, but as a national effort shared by all.

The writer is a former State Minister for Education and Professional Training, former Member of the National Assembly of Pakistan, Chairperson of the Prime Minister’s Youth Programme and Director at Media Times.

Filed Under: Op-Ed Tagged With: budget

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