Pakistan's Prime Minister, Shabaz Sharif, recently unveiled a national budget sparking widespread dismay and the threat of significant protests. The budget, met with resistance from both opposition parties and coalition partners, signals a period of increased political tension and economic hardship for the country.
Unpopular Tax Hikes and Questionable Allocations
The budget sets an ambitious tax revenue target of 13 trillion rupees ($47 billion), a nearly 40% increase that is expected to burden ordinary citizens and businesses alike. This move comes after years of pressure from international sponsors to increase tax collection and address the country's persistent budget deficits.The budget also proposes increased taxes on exports, including textiles, a major source of government revenue. This decision has been met with criticism, as it could discourage competitive production and exacerbate the ongoing foreign exchange crisis. Additionally, the budget fails to address the issue of taxing agriculture, a sector dominated by wealthy landowners and powerful political figures.
Meanwhile, defence spending has increased, despite the economic strain on the population. The budget allocates 2.2 billion Pakistani rupees to defence, not including a rise in pensions. This increase has drawn criticism, particularly in Pakistan-occupied Kashmir, where residents are taxed but lack representation in the parliament that determines their budget allocation.
Provincial Disparities and Climate Concerns
The budget has also highlighted disparities in resource allocation among provinces. Balochistan, the largest province and home to significant gas and resource reserves, receives only 9% of the total provincial share, while Punjab receives over 51%. This allocation is based on population size rather than revenue generation, further fueling discontent among Balochistan residents.Pakistan's vulnerability to climate change is another major concern. The Economic Survey notes that the country's recent economic recovery is largely due to increased wheat and rice production, both water-intensive crops. However, Pakistan is now the 15th most water-stressed country globally and could face water scarcity by 2035. Recurring floods threaten to become an annual occurrence, jeopardizing the country's development goals.
A Call for Cooperation and Climate Action
Addressing these challenges will require a multi-faceted approach. Pakistan must confront its water scarcity issues and invest in climate-resilient agriculture. Additionally, the country needs to foster trust and cooperation with its neighbors, particularly India, to jointly address the shared threat of climate change.Some experts argue that Pakistan should reconsider its policies in Afghanistan and India and work towards building regional trust. This could open doors for increased trade and collaboration on climate solutions, ultimately benefiting the entire South Asian region.
Pakistan's 2024 budget has laid bare the country's deep-seated economic and political challenges. As the nation grapples with rising discontent, it is crucial for the government to address the concerns of its citizens and take decisive action to mitigate the impacts of climate change.
By fostering regional cooperation and prioritizing sustainable development, Pakistan can pave the way for a more prosperous and resilient future.
