Former Sindh Governor Muhammad Zubair Criticizes Shehbaz Sharif’s Budget for 2024-25

Islamabad [Pakistan], July 3: The former governor of Sindh, Muhammad Zubair, has criticized the budget for the fiscal year 2024-25 introduced by the Shehbaz Sharif-led coalition government. He stated that both direct and indirect taxes have significantly impacted the salaried class, highlighting unequal tax imposition.

Unequal Taxation

During an interview on ARY News’ ’11th hour,’ Zubair expressed his disapproval of the federal government’s uneven taxation policies. He pointed out that salaried individuals are affected by both direct and indirect taxes. ‘If everyone was taxed equally, no one would object,’ Zubair said. He also mentioned that the new budget imposes an extra fee on the salaried class.

Middle Class Concerns

Zubair noted that the middle class and salaried classes, who have historically disliked the Pakistan Muslim League-Nawaz (PML-N) and Pakistan Peoples’ Party (PPP), are not fond of the current administration. He predicted a 20% increase in electricity bill prices, explaining that a bill of PKR 100 today would soon be PKR 120. ‘People do not understand the reason behind the constant increase in bills,’ he said.

Criticism of Government Policies

Zubair argued that the taxes are inefficient because, despite increased taxes, revenue remains the same. He criticized the current administration for failing to cut spending while raising taxes. ‘Where are the tax reforms, where are the energy reforms, where are the issues of privatization of institutions?’ he questioned.

He also criticized the management of distribution businesses’ boards of directors, pointing out that the people chosen two years ago resulted in higher losses, and now the government plans to replace those boards. ‘Two years ago, they boasted about the merits of their appointments. Now, they’re reversing those actions. Who is responsible for this?’ he questioned.

Political Motivations

Zubair accused the government of making damaging decisions driven by political motivations. He reviewed past budgets, noting that the public was burdened in the budget for 2022 with the assurance that things would improve within a year, a pledge repeated in the budget for 2023.

In a deep economic crisis, Pakistan’s parliament recently passed a tax-heavy finance bill for the upcoming fiscal year amid ongoing negotiations for a new International Monetary Fund (IMF) bailout.