The Senate on Monday witnessed a heated debate on the Budget 2026-27, as treasury members defended the fiscal plan as a pragmatic strategy for economic recovery and long-term growth, while opposition senators expressed concerns over increased taxation, rising inflationary pressures, and limited measures to ease the burden on citizens.
Taking part in the budget debate, Senator Dr Afnan Ullah Khan of PML-N said the budget had been prepared in an exceptionally challenging regional and economic environment and reflected the government’s commitment to sustainable economic growth rather than short-term gains.
He said the government had set a tax collection target of Rs15.264 trillion while pursuing fiscal discipline and structural reforms aimed at ensuring long-term stability.
He said key economic indicators had improved significantly, with inflation declining, foreign exchange reserves increasing and GDP growth recovering.
He said the present government had succeeded in stabilizing the economy despite inheriting serious financial challenges and was now focused on maintaining growth, strengthening public finances and avoiding the boom-and-bust cycles that had affected the economy in the past.
Criticizing the former PTI government, he argued that growth driven by excessive imports was unsustainable and ultimately pushed the country towards financial difficulties.
Senator Nasir Butt of PML-N said that Pakistan was gradually moving towards economic recovery and stability after overcoming serious financial challenges.
He said the government had taken difficult but necessary decisions to steer the country away from economic uncertainty, restore investor confidence and strengthen national institutions.
Referring to Pakistan’s diplomatic efforts, he said the country had earned international recognition for promoting regional peace and stability.
He said that economic indicators were showing improvement and the government was committed to sustaining this momentum through prudent financial management and development initiatives.
He said increased defence allocations were justified in view of prevailing regional challenges and the need to maintain a strong defence capability.
Senator Sarmad Ali of PPP expressed support for the budget despite reservations voiced by his party, saying economic stability should ultimately translate into relief for ordinary citizens.
He hoped that any reduction in international oil prices would be passed on to consumers and stressed the need for greater attention to climate and development challenges.
Senator Shahadat Awan of PPP while taking part in debate said the budget should be judged by its impact on health, food security and agriculture.
He called for higher allocations for the health sector, expansion of the Benazir Income Support Programme (BISP) and stronger support for agricultural research and farmers.
Taking part in debate Senator Jan Muhammad Buledi of National Party said the budget had failed to adequately address the concerns of workers, farmers, students and unemployed youth.
He also raised concerns regarding provincial financial rights and resource distribution and called for effective implementation of the spirit of the 18th Constitutional Amendment.
Senator Dilawar Khan of JUI-F while highlighting difficulties faced by tobacco growers in Khyber Pakhtunkhwa, expressed concern over alleged tax evasion in the cigarette sector.
He urged the government to protect local industry, safeguard farmers’ interests and take effective measures against illicit trade.
Taking part in budget debate, Senator Mohsin Aziz of PTI said the budget was not a people-friendly budget and expressed reservations over its impact on ordinary citizens.
Senator Faisal Javed Khan of PTI said the seven percent increase in salaries was insufficient in view of prevailing inflation and rising living costs. He also referred to welfare initiatives introduced during the tenure of the PTI founder.
Senator Aoun Abbas of PTI expressed concern over rising poverty, indirect taxation and challenges facing the agriculture sector.
He argued that the burden of taxation was falling disproportionately on lower-income groups and called for stronger support for farmers and rural communities.
Senator Kamran Murtaza of JUI-F while taking part in the debate said the Senate’s role in the budget process remained largely limited to making recommendations while the final decisions rested elsewhere.
He expressed concern that elected representatives often lacked the authority required to effectively address the grievances of their constituents.
Referring to the National Finance Commission (NFC) Award, he regretted that a new award had yet to be finalized despite repeated demands over the years.
He said that the budget did not fully reflect the constitutional spirit of resource distribution among the federation and provinces.
He criticized reductions in provincial development resources and warned that continued centralization of financial authority could deepen feelings of deprivation in smaller provinces, particularly Balochistan.
He said constitutional provisions regarding provincial rights should be implemented in letter and spirit and called for a more meaningful debate on issues relating to federalism, governance, development and security.
Later, the house was adjourned to meet again on Tuesday at 12:30 pm.