Thrashing around -Author – Khurram Husain

The article explores Pakistan’s fiscal health, likening the current budget to a well-rehearsed act in a theatre of mediocrity. With inflation tamed and a rare moment of political and economic calm, this year presented the perfect opportunity for bold reform but what we got instead was a recycled script of missed chances and burdens unfairly shifted onto those who already comply. Teachers, freelancers, and salaried individuals found themselves paying the price, both literally and metaphorically, while the powerful remained untouched. The government talked a big game about valuing youth and innovation, yet contradicted itself by taxing education supplies and revoking tax rebates from teachers. It was a classic case of giving with one hand and taking with the other, leaving many to feel shortchanged and cynical.

This budget, instead of steering the ship toward meaningful tax reform or broader compliance, clings to old gimmicks and half-measures that have been failing us for over a decade. From amnesty schemes to superficial digital economy taxes, the state is caught in a loop thrashing around in shallow waters, trying to squeeze revenue from a shrinking base while ignoring the elephant in the room: the elite who refuse to pay up. No direction, no vision, and no real accountability. The article doesn’t just call out incompetence; it exposes a state teetering on the edge of fiscal collapse while pretending to tread confidently. If there was ever a time to break the cycle, it was now but the chance has slipped through our fingers once again.

Overview:

This article critically looks Pakistan’s FY2025–26 federal budget, highlighting the state’s continued failure to implement structural tax reforms. Despite economic and political stability, the government introduced regressive tax measures and recycled failed strategies, exacerbating public frustration and fiscal imbalance.

NOTES:

The article lays bare the alarming state of Pakistan’s fiscal mismanagement, emphasizing how the country has once again missed a crucial opportunity for structural reform despite having favorable economic and political conditions. The recently announced budget recycles old, ineffective strategies, placing more burden on the already compliant taxpayers like teachers and salaried individuals, while failing to expand the tax net meaningfully. It highlights the glaring absence of any substantial reform or policy shift, pointing instead to gimmicks like targeting online marketplaces and freelancers without broader systemic change. The withdrawal of tax rebates for teachers and the imposition of taxes on children’s school supplies underscore the regressive nature of the policy. Over the past decade, various schemes such as the RGST attempt in 2009, withholding tax in 2014, and the “Tajir Dost” scheme in 2024 have failed to address core issues, reflecting a pattern of superficial measures and short-term revenue grabs. The article argues that these tactics reveal a state desperately thrashing within its shrinking fiscal space, unable or unwilling to implement bold reforms. The result is a budget that does little to alter the status quo and continues to rely on squeezing more from the few who are already contributing, pushing Pakistan further into economic stagnation.

Related CSS Syllabus Topics:

• Pakistan Affairs: Economic challenges, Public Finance, Governance
• Current Affairs: Budgetary policy, Fiscal reforms, IMF relations
• Governance & Public Policy: Policy implementation, Accountability mechanisms
• Essay/English (Precis & Composition): Economic inequality, Bureaucratic inefficiency

Notes for Beginners:

The article explains that instead of fixing Pakistan’s tax system, the government keeps taxing people who already pay honestly. For example, teachers just lost a tax rebate that helped reduce their financial burden. Meanwhile, people who don’t file taxes or hide income remain untouched. It also talks about schemes from 2014 to 2024 like taxing shopkeepers based on electricity usage, but these efforts didn’t bring in enough money. This kind of unfair policy puts more pressure on good citizens and weakens trust in the system. In simple terms, the government is not solving the root problem of a narrow tax base and is just repeating old ideas that never really worked.

Facts and Figures:

• Pakistani freelancers brought in $400 million in one year
• The 2024 “Tajir Dost” scheme failed to deliver expected results
• Last meaningful tax reform attempt (RGST) was back in 2009
• Various schemes introduced from 2014 to 2024 failed to broaden tax base
• New taxes introduced on teachers, school supplies, and digital transactions

To wrap up, this article doesn’t just criticize a budget, but it also captures a moment where real change was possible, but apathy and short-sightedness won the day. For students and analysts it acts as both a mirror and a warning. Without courage and vision, Pakistan will remain stuck in a vicious cycle of taxing the compliant and appeasing the untouchables.

Difficult Words and Meanings:

• Pious-sounding: superficially virtuous or moral
  • Syn: sanctimonious | Ant: sincere
• Recalcitrant: resisting authority or control
  • Syn: defiant | Ant: compliant
• Mediocrity: the state of being average or below expectations
  • Syn: inferiority | Ant: excellence
• Amnesty: official pardon for offenses, especially tax evasion
  • Syn: reprieve | Ant: penalty
• Viability: ability to function or sustain
  • Syn: sustainability | Ant: failure