ISLAMABAD: Pakistan Tehreek-i-Insaf (PTI) on Friday rejected the federal budget for fiscal year 2026-27, describing it as “a refined exercise in elite self-preservation” that offered little relief to ordinary citizens.

Finance Minister Muhammad Aurangzeb earlier unveiled the Rs18.8 trillion budget for FY2026-27, announcing total federal expenditure of Rs18,771 billion and setting an economic growth target of 4pc, while describing the budget as anchored in “stabilisation, reform and growth”.

In a statement, PTI Central Information Secretary Sheikh Waqas Akram criticised the budget document, calling it “a refined exercise in elite self-preservation”, presented with “the sincerity of a merchant extolling yesterday’s unsold stock”.

Akram said the government was presenting a 3.7pc growth rate as evidence of economic recovery while comparing its performance with that of the PTI government during the Covid-19 pandemic.

“The previous administration, despite a global pandemic that paralysed economies worldwide, recorded growth approaching 6 percent in its final year while strengthening the current account and remittances,” he said.

He argued that the current government was portraying a more modest economic performance as a major achievement while relying heavily on remittances, external borrowing and factors that, according to him, had little direct impact on people living and working in the economy.

Akram claimed poverty had increased significantly, pushing millions of people below the poverty line.

Read: Budget 2026-27: FinMin projects 4% growth as govt unveils fiscal, tax and reform agenda

“The poorest sections of society are left to manage as best they can, their circumstances worsened by conditions this budget claims to have mastered,” he said, adding that the government had acknowledged the impact of higher oil prices and flood-related losses on households while highlighting targeted subsidies introduced in response.

The PTI leader said the salaried class remained under pressure despite the relief measures announced in the budget.

“The salaried class, already the most heavily taxed segment, finds meeting basic household obligations an exercise in sustained improvisation,” he said.

He maintained that reductions for higher-income groups and the abolition or reduction of super tax for selected businesses primarily benefited those better positioned to withstand economic pressures.

According to Akram, adjustments to construction-related withholding taxes favoured developers rather than addressing the housing needs of the broader population. At the same time, relief for ordinary employees would be quickly eroded by inflation projected at 8.2pc.

He further said that over the past three to four budgets, the government had imposed a range of new taxes, reduced tax rates, withdrawn zero-rating under the Fifth Schedule and eliminated several exemptions.

Also Read: PM Shehbaz says ‘time of prosperity has begun’, terms FY27 budget one of ‘relief’

“Beyond a few minor measures, the budget offers nothing substantive for the common citizen or small businesses,” he said.

Akram also criticised measures affecting small businesses and traders, including the introduction of a new fixed tax regime, the expansion of withholding tax on unregistered purchases, and enhanced production monitoring through digital invoicing.

He alleged that the government was increasingly relying on large-scale, faceless audits and stricter enforcement measures.

“This approach does not aim to broaden the tax base but relies on harassment and coercion of already compliant taxpayers to extract more revenue while ignoring widespread tax evasion,” he said.

The PTI leader further alleged that the budget continued what he described as a pattern of “statistical flexibility and selective historical recollection”.

He claimed the government was attributing positive developments to its own policies while overlooking earlier achievements and criticised what he termed the presentation of regional tensions as a source of strategic advantage and defence export opportunities.

“The presentation of regional tensions as a source of strategic advantage and defence export opportunities, even amid conflict, shows indifference to the human and economic costs borne by ordinary citizens,” he said.

Gohar slams budget as ‘disappointing’

Meanwhile, Party Chairman Barrister Gohar Ali Khan said that the upcoming federal budget would not bring any relief to the public, stressing that it would fail to improve the lives of ordinary citizens.

Speaking to the media, the PTI chairman said the government had “no performance over the past four years” and accused it of continued borrowing instead of reducing expenditures. He said the budget was expected to be “disappointing”, adding that “there will be no relief for the public” in the financial plan.

Barrister Gohar criticised what he described as rising “extravagance and mismanagement” in government spending, saying the economic situation had worsened over time. He added that the budget should have focused on bringing real change in people’s lives, but instead, according to him, it reflected poor priorities.

Barrister Gohra also said efforts were ongoing to arrange a meeting with party founder Imran Khan, but there had been “no positive response” so far.

He remarked that the public was suffering while the government was “asking for informal engagement”, adding that the party did not want “photo sessions” with the prime minister.

The government is set to unveil a massive Rs17.5 trillion (approximately $61 billion) consolidated budget for the fiscal year 2026-27 today to meet strict International Monetary Fund austerity conditions.

The high-stakes spending plan balances fiscal tightening and IMF structural directives while introducing relief measures for the poorest citizens and modest salary bumps for government workers. The budget comes as much of the population continues to feel the effects of the Iran-US war, with no indication that the conflict is easing.

The government will propose measures to raise revenue and cut spending while shielding the nation’s poorest.

Under pressure to meet austerity conditions from the International Monetary Fund, Finance Minister Muhammad Aurangzeb will submit a delayed Rs17.5 trillion ($61-billion) spending plan for the fiscal year starting next month in the National Assembly.

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday stressed the importance of the country having “strong” security, as he spoke about the budget-making process.

He made the remarks during a federal cabinet meeting that approved the budget, which is now expected to be tabled in the parliament. “Today, we are presenting the third budget of our government,” the premier noted.

“There were definitely a lot of challenges while preparing this budget. I believe that no nation can handle its matters, let alone make progress, if its security is not strong and invincible,” the prime minister stressed.

He added, “We have to build water reservoirs and dams [as well as] work with speed on indigenous energy resources, which include solar panels, wind, and batteries.”

The prime minister mentioned that “measures for tax relief and economic progress” will be proposed in the budget.

Noting that the government had “lengthy discussions” with the International Monetary Fund (IMF) during the budget-making process, PM Shehbaz said he had a 30 to 45-minute-long phone call with its Managing Director Kristalina Georgieva, who hailed Pakistan’s economic progress.

He noted that the PML-N had “very detailed conversations” with its ally PPP, which were “successful”. He also thanked other coalition allies for their “unconditional” support.

The prime minister highlighted that the Centre remained engaged in “comprehensive interaction” with the four provinces over the past one and a half months.

“They were told how the centre needs additional funds,” he said, terming the dialogue with the provinces “very meaningful”.

The PML-N and the PPP had agreed to cut development and other expenditures at all tiers of the federation and jointly create similar, but higher, fiscal space next year for additional “strategic needs”.

As a result, the freeze on allocations for provincial development programmes will continue for a specific period beyond one year, according to Finance Minister Muhammad Aurangzeb.

During his address, PM Shehbaz appreciated PML-N President Nawaz Sharif, calling him his “leader”, and Punjab Chief Minister Maryam Nawaz for “showing a big heart for the pressing needs of the federal government”.

“They said that they stood ready to extend support to the federal government in challenges in defence and water security,” he remarked.

The prime minister then recalled his team had “several” meetings with the Sindh leadership, which also cooperated. He thanked President Asif Ali Zardari and PPP Chairman Bilawal Bhutto-Zardari for their “decision in the best interest of the country”.

PM Shehbaz also thanked Balochistan CM Sarfraz Bugti’s “big-heartedness” and KP CM Sohail Afridi’s “positive sentiments”.

“There can be no grander demonstration of national unity, solidarity, and cohesion than this,” he remarked.

The premier acknowledged that “despite our best efforts”, the government had to impose taxes in the past two budgets due to the “national and IMF requirements so that the economy […] could be stabilised and the avenues for progress could be expanded”.

The prime minister added: “Definitely, the common man had to face many difficulties due to it, and I, on my own and the cabinet’s behalf, would like to thank the 240 million people of Pakistan who tolerated the inflation with patience.”

PM Shehbaz highlighted that inflation had declined to single-digit from 38 per cent in the past two years, before increasing slightly due to the ongoing Middle East conflict. He further highlighted that the policy rate had also dipped to 11pc from 22.5pc during the period, but had to be raised due to the impacts of the US-Iran war.

“Today, our economy is stable, and we should hope that with this third budget, […] the wheel of our economy will pick up pace on the condition that we collectively work hard around the clock and stand ready to fulfil our responsibilities,” he emphasised.

At the outset of his address, PM Shehbaz said he attended the funeral prayers of “martyrs who sacrificed their lives in the line of duty”, which included two Christians.

“It was a heart-wrenching scenario that brought tears to every eye,” he said, recalling his meeting with the families of the martyred personnel.

ISLAMABAD: Delegations of the PPP and the PML-N met in Gilgit-Baltistan to discuss proposals for forming a government in the region after the recent elections, the parties said on Thursday.

The PPP is all set to form a government in the region after it gained 11 out of 24 seats in the Gilgit-Baltistan Legi­slative Assembly, according to unofficial results (Forms-47) of the June 7 elections.

Key leaders of the PPP and the PML-N, which secured six seats, met in Gilgit to hold detailed deliberations on proposals related to the formation of the upcoming GB government.

In its statement, the PPP claimed a “major breakthrough” in the process, saying that the parties decided to present the proposals for government formation to their respective central leadership.

It said the discussions also pertained to political cooperation, along with various national and domestic issues.

The PPP delegation asserted that the people of GB had given it the mandate by “making it the largest party”, its statement said.

The party leaders stated that all decisions on government formation will be made keeping in view democratic principles, political consultations and public interests.

Meanwhile, the PML-N statement said that “several proposals came under consideration and it was agreed to move forward with the consultation process”.

It noted that the future course of action would be determined after the proposals are reviewed and both parties’ central leadership were taken into confidence.

PPP Secretary General Nayyer Hussain Bukhari, Qamar Zaman Kaira, Sindh Senior Minister Sharjeel Inam Memon and Sindh Local Government Minister Nasir Hussain Shah were part of the PPP delegation.

The main contender for the chief minister’s slot from the PPP, its GB chapter president Advocate Amjad Hussain, was also present.

The PML-N side included Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam and its GB President Hafiz Hafeezur Rehman, also a former chief minister.

As per Forms-47 issued by returning officers from 24 constituencies, the PPP bagged 11 seats in the elections, with the PML-N trailing with six seats.

The candidates backed by the PTI won two seats, and its ally Majlis Wahdat-i-Muslimeen (MWM) was victorious in one seat. Independent candidates secured four seats.

The consolidation of the results has been barred until re-polling at certain polling stations in five constituencies is complete — Skardu-II (GBA-8), Ast­ore-I (GBA-13), Diamer-I (GBA-15), Diamer-II (GBA-16) and Diamer-III (GBA-17).

ISLAMABAD: As tensions persist in Azad Jammu and Kashmir (AJK), Defence Minister Khawaja Asif on Thursday urged the now proscribed Joint Awami Action Committee (JAAC) to let the people of the region decide whether the 12 refugee seats should be abolished.

The regional administration and the JAAC remain at odds over various issues, most notably the committee’s demand to abolish the 12 seats in the region’s Legislative Assembly that are reserved for refugees from Indian-occupied Jammu and Kashmir who settled in mainland Pakistan after 1947.

Speaking on the floor of the National Assembly, the defence minister called on the JAAC to raise the issue in the upcoming elections, scheduled for July 27, and “take the issue to the public”.

He questioned why the group was intent on deciding the issue pre-emptively, suggesting that it might be an attempt to shape the assembly “as per their will”.

Asif noted that Kashmiri refugees settled in Pakistan had paid a “heavy price” to migrate to the country, and that the JAAC had no right to demand the “taking away of their right to vote”.

“The AJK that we have today is due to the sacrifices made by the Pakistan armed forces and people from across the country, not just Kashmiris,” the defence minister said, asserting that 250 million Pakistanis had a “stake” in the region.

He held that there was a story in every Pakistani household of the sacrifices made for the disputed region.

“Does that mean nothing? I do not want to take names, but what have they sacrificed for Kashmir? They do not have any stake, nor have they invested anything in the liberation of Kashmir,” the defence minister said.

The defence czar warned that if people took the law into their own hands, the government could not be expected to “stay silent”.

He also recalled that Kashmiri refugees in his constituency did not have access to basic facilities such as electricity and gas due to uncertainty surrounding their status. However, “we had their status finalised”, he said, reiterating that the way forward was dialogue, not confrontation.

“I wonder if this hatred has been imported from across the line,” Asif said, in an apparent reference to the Line of Control (LoC).

He maintained that the group could not “take away the identity” of Kashmiri refugees, advising that the matter should be resolved in the Legislative Assembly.

“How could you exclude them from the electoral process?” the defence minister said.

Asif remarked that the status “Azad” in AJK had been secured and protected by Pakistanis.

“The word Azad would not have been there if it were not for Pakistan,” he said, adding that the armed forces stationed atop mountains protecting Kashmir were all Pakistanis, including Punjabis, Baloch, Pashtuns and Sindhis.

ISLAMABAD: The Foreign Office on Thursday warned that any deliberate attempt to block water essential to Pakistan’s survival and development would have “far-reaching consequences”.

“Any such act would be treated with utmost seriousness and could possibly amount to an act of war under Article 51 of the UN Charter,” said FO spokesperson Tahir Andrabi during a weekly media briefing while responding to a question about recent remarks by Indian water minister.

A day ago, Indian Minister of Water CR Patil told India’s ANI news agency that “not a single drop of water will go [to Pakistan] in the coming years”.

Patil said that India was “actively working on it” after “directives” from Prime Minister Narendra Modi.

Taking note of the remarks, Andrabi said that “any attempt to block or substantially curtail water that is vital to the livelihood, agriculture and well being of over 25o million Pakistanis would be a deeply irresponsible act”.

He added it would violate established international obligations “concerning transboundary rivers and indeed India’s own bilateral agreement with Pakistan”.

“Pakistan firmly rejects any notion that water can be treated as a political tool or instrument of coercion or a weapon,” he said, emphasising that such an action would be a threat to the regional peace and security in South Asia and beyond.

He said that the responsibility of such a threat “to international peace and security would fall squarely on India’s shoulders”.

The FO spokesperson added that Pakistan’s rights and interests regarding its water resources were non-negotiable.

He said that Pakistan would “vigorously” defend those rights, utilising all available diplomatic, political, legal, economic and other measures consistent with international law and the UN Charter.

“Any deliberate attempt to block water essential to Pakistan’s survival and development would constitute an extremely grave act with far-reaching consequences, as stated at the top leadership level by Pakistan,” Andrabi warned.

Every state had the right of self-defence, she said, adding that Pakistan would take “all necessary measures to safeguard its economy and its vital national interests and lives of 250m people”.

Andrabi called on India to “act responsibly, honour its international commitments and refrain from statements and actions that could further escalate tensions in the region”.

He stated that Pakistan remained committed to safeguarding its interests and “will closely monitor developments on the ground in India-occupied Kashmir and elsewhere from where these water resources emerge”.

Expansion of India’s nuclear arsenal ‘not surprising’

In response to a question over India expanding its nuclear arsenal, as per a recent report by the Stockholm International Peace Research Institute (SIPRI), Andrabi said the finding was not surprising to Pakistan.

“It broadly corroborates concerns that Pakistan has consistently been raising regarding India’s continued vertical proliferation,” he stated, hinting that the findings may not “fully reflect” India’s scale of nuclear arsenal.

The spokesperson noted that Pakistan also remained aware of recent developments in India’s strategic capabilities, including “cannisterisation of the missile systems, expansions of sea-based nuclear-capable submarines and pursuit of increasingly longer-range intercontinental ballistic missile systems that go beyond India’s periphery, neighbourhood or legitimate defence deals”.

Andrabi warned of “grave consequences” for international peace and security in the context of the development.

“These developments enhance operational readiness, complicate crisis stability, and carry implications that extend beyond South Asia,” he remarked.

Andrabi said while Pakistan did not seek an arms race and was “not interested in matching warheads and ammunition by number,” it also remained cognisant of the “evolving security environment”.

He said Pakistan continued to work towards the preservation of “strategic stability and deter any possible Indian aggression,” and urged the international community to “closely monitor” the situation.

“Deployment of India’s nuclear arsenal may affect strategic stability in South Asia and undermine peace and security at the regional and global level,” he cautioned.

In the given context, he said the international community, in particular the suppliers of high technology, should be cognisant of the implications of “advanced technologies and emerging capabilities being incorporated into India’s posture with grave international consequences”.

Release of Pakistani seafarers in Somalia ‘high priority’

On the issue of Pakistani sailors held captive by pirates aboard a vessel off the coast of Somalia, Andrabi said their rescue and safe repatriation remained a “high priority”; however, he also acknowledged that the situation had so far proved to be “difficult and operationally challenging”.

The seamen were taken hostage more than a month ago when pirates hijacked the MT Honour 25 off the southeastern coast of Somalia on April 21. There were 11 Pakistanis among the vessel’s crew, who remain in the pirates’ captivity.

“Sadly, despite our best efforts, we have not been able to secure their release,” Andrabi said of the 11 Pakistani seafarers, but voiced optimism that Pakistan was making “earnest efforts” to secure their release.

“We are engaged with the Somali authorities and the ship owner, both of whom are engaged with the pirates to secure early release,” he said.

He recalled that the Deputy Prime Minister and Foreign Minister Ishaq Dar had been in touch with the Somali Foreign Minister Abdisalam Abdi Ali over the issue.

In a phone call with the Somali FM, DPM Dar had conveyed his “grave concern” about the situation and stressed the need to ensure the early release and safe repatriation of the individuals, Andrabi said.

DPM Dar also urged measures to improve the living conditions of all the captives aboard the vessels.

Dar’s Somali counterpart assured him of the Somali government’s “continued and sincere” efforts to secure the release of the Pakistani individuals.

“Both leaders agreed to remain in close coordination until the matter is resolved,” Andrabi said.

Further elaborating on the steps taken by the government to secure their release, Anbrabi said that the Somali ambassador in Islamabad was called to the Ministry of Foreign Affairs (MOFA) over the issue.

He also recalled that the Pakistani embassy in Djibouti had dispatched teams to the Somali capital Mogadishu and added that authorities were holding “interministerial and inter-departmental meetings” on the issue as well.

“Another important in-person meeting will be held next week here at MOFA,” Andrabi said.

The spokesperson said that the situation was “operationally challenging”.

“They (captives) are held in a part of Somalia which is a semi-autonomous region [..] there are tribal societies and the pirates belong to a certain tribe and the ship owners belong to another tribe.”

He called on the families to exercise patience, vowing that the matter remained a high priority.