Muhammad Ali

Words from Lahore. Capturing the beauty & chaos of life in words. Books 📚, thoughts 💭 & chai-fueled ideas ☕

[Muhammad Ali @Aleejam4]

Pakistan’s Federal Budget 2026-27: A Closer Look at Its Strengths and Shortcomings

The federal government unveiled the Rs18.77 trillion budget for the fiscal year 2026-27 on June 12, just days ago. Presented by Finance Minister Muhammad Aurangzeb, this budget comes at a time when Pakistan is trying to balance economic stabilization under the IMF program with some relief for ordinary citizens. It sets a modest 4% GDP growth target, aims for 8.2% inflation, and keeps the fiscal deficit at 3.6% of GDP. While it offers some targeted relief, particularly for the salaried middle class, critics argue it falls short on bold reforms needed for meaningful growth and poverty reduction. 

Positive Aspects: Where It Tries to Deliver Relief and Stability

One of the more noticeable wins is the tax relief for salaried individuals. The government has adjusted income tax slabs, bringing down rates for middle-income earners—for instance, lowering the effective burden in slabs around Rs2.2 to 3.2 million annually to something like 20%. This should put a bit more money back in the pockets of many office-going Pakistanis who have been feeling the pinch for years. 
Government employees and pensioners also get a roughly 7% salary and pension increase, which, though modest, provides some cushion against rising costs. There’s also the welcome move to zero out taxes on sanitary pads, a small but meaningful step toward making essential items more affordable for women. 
On the macro front, the budget sticks closely to IMF expectations. By targeting a primary surplus and controlling the deficit, it helps maintain investor confidence and keeps foreign reserves stable. Defence spending has been hiked by 18% to around Rs3 trillion, reflecting the serious security challenges the country faces in the region. For sectors like exports, IT, and pharmaceuticals, there are some incentives—such as duty exemptions on raw materials for medicines—which could support job creation and foreign exchange earnings. 
The Public Sector Development Programme (PSDP) stands at Rs1 trillion, with priorities in water, transport, energy, and digital projects. Youth initiatives, including the Rs18 billion-plus PM Youth Programme, aim to channel some resources toward the younger population. Overall, this feels like a “prudent” budget designed to avoid fiscal blowouts and keep the IMF program on track. 

Drawbacks and Criticisms: The Areas That Raise Concerns

Despite these measures, the budget has drawn significant criticism. A major issue is the squeeze on development spending. With debt servicing eating up a huge chunk—nearly 43% of the budget in interest payments alone—and defence taking another large slice, there’s limited room left for long-term investments that could drive real growth and create jobs. Many economists worry that capping federal PSDP at Rs1 trillion will slow infrastructure progress and hurt provincial development. 
The revenue target of Rs15.26 trillion for FBR is ambitious, and a big part of it relies on indirect taxes and higher petroleum levies. This often translates into higher fuel and transport costs that eventually hit the common man’s pocket. While salaried classes get some relief, the broader tax net remains narrow, with limited efforts to bring in big agriculturists or retailers effectively. Opposition parties, particularly PTI, have called it “pro-rich” and insufficient for the poor, pointing to persistent high poverty levels (around 28-29%) and low allocations for education and health. 
Implementation is another big question mark. Past budgets have set optimistic targets only for reality to fall short due to external shocks, weak governance, or political instability. Structural problems—like high energy costs, inconsistent policies, and low private investment—aren’t tackled head-on here. The modest 4% growth target reflects caution but also highlights how the economy remains stuck in a low-growth cycle. 

[Muhammad Ali @Aleejam4]

@analyst_bat 静かな優しさが一番強いと思いました。

[Saad Kaiser 🇵🇰 @TheSaadKaiser]

Israel who? Netanyahu who? Banda Ruk Nahi Raha! 🔥 Congratulations everyone, Chachu did it! 🇵🇰

[Muhammad Ali @Aleejam4]

@fifaworldcup_es This is incredible🔥

[محمد بن عبدالرحمن @MBA_AlThani_]

نرحب بالتوصل إلى اتفاق حول مذكرة التفاهم بين الولايات المتحدة الأمريكية والجمهورية الإسلامية الإيرانية، ونتقدم بالشكر للأشقاء في جمهورية باكستان الإسلامية، ولجميع الأطراف الإقليمية والدولية التي أسهمت في تهيئة الظروف للوصول إلى هذا التفاهم، ونتطلع إلى أن تنخرط كافة الأطراف في المفاوضات المقبلة بروح إيجابية وبنّاءة، تسهم في ترسيخ هذا التقدم والبناء عليه.

ونؤكد أن دولة قطر ستبقى دائمًا داعمًا ثابتًا لهذه الجهود، ولكل ما من شأنه تعزيز الأمن والاستقرار على المستويين الإقليمي والدولي عبر الحوار والوسائل السلمية.

[🇦🇪 HGS @Sajwani]

Stand with the guy who stands with humanity …

[Muhammad Ali @Aleejam4]

@grok @HamasulGhani @spectatorindex I would like to say, Peace is the real winner here. What do you say @grok

[HAMAS @HamasulGhani]

@spectatorindex @grok who’s the real winner?

And which country played important role in this deal

[Muhammad Ali @Aleejam4]

@StateDept A big sigh for relief for the people around the globe. Peace is the ultimate victory🕊️🤝

[Muhammad Ali @Aleejam4]

@TehranTimes79 @Gharibabadi A triumph of diplomacy that brings hope to the entire world. 🇵🇰🕊️🌍

[Tehran Times @TehranTimes79]

#BREAKING
Tasnim: Deputy Foreign Minister @Gharibabadi: The text of the memorandum of understanding has been finalized and the official signing of the Islamabad memorandum of understanding will take place on Friday in Switzerland.

[Muhammad Ali @Aleejam4]

@MohsinnaqviC42 From Pakistan to the world stage, General Asim Munir’s pivotal role in the US-Iran Peace Deal stands as a beacon of hope. A soldier who chose diplomacy as the ultimate weapon for a safer, more united planet. #cdfforglobalpeace #cdfprideofnation

[Muhammad Ali @Aleejam4]

Historic day for humanity! 🇵🇰🕊️

Heartfelt congratulations to the United States and the Islamic Republic of Iran on reaching this landmark Peace Deal. A triumph of diplomacy over destruction.
Pakistan stands tall with immense pride! Under the visionary leadership of PM Shehbaz Sharif and CDF, our nation has played a pivotal role in bridging divides and forging peace — a true beacon of statesmanship alongside brotherly Qatar, Saudi Arabia, Türkiye and other Muslim nations. Your tireless mediation has rewritten history.

Wishing all parties strength and success as this agreement ushers in a new era of stability and prosperity.

“Peace is not the absence of conflict, but the ability to handle conflict by peaceful means.” — Ronald Reagan

#PakistanForPeace #USIranDeal #cdfprideofnation #peacediplomacyofcdf #Peace

[Muhammad Ali @Aleejam4]

@business From the heart of Asia, Pakistan extended the hand of mediation and showed the world what real statesmanship looks like: bridging oceans of distrust with bridges of hope. #USIranDeal

[Muhammad Ali @Aleejam4]

@SaudiNews50 Let the world see clearly: while critics recycle tired accusations, Pakistan is delivering real results — turning the tide from war to peace between the US and Iran through visionary diplomacy.

[Muhammad Ali @Aleejam4]

@FoxNews In the face of baseless Indian narratives branding Pakistan as a sponsor of terror, our nation has emerged as the architect of peace, bridging the US and Iran and saving the world from wider conflict.
Long Live Pakistan🇵🇰🕊️🤝

[Muhammad Ali @Aleejam4]

@AJENews “Pakistan didn’t just witness history — it helped write ait, guiding warring sides toward peace with wisdom, patience, and unwavering resolve.” 🇵🇰🕊️

[Polymarket @Polymarket]

JUST IN: Pakistan announces a U.S.-Iran peace deal has been reached, with official signing set for June 19 in Switzerland.

[Zahid Gishkori @ZahidGishkori]

Strait of Hormuz is Open now

Deal is Done

#USIranDealDone

[🇸🇦Abdulsalam Saleh @abdulslam2017]

Following intensive negotiations... peace is officially declared. A U.S.-Iran agreement to end military operations immediately and permanently. The official signing will take place on Friday, June 19, in Switzerland.

The Prime Minister of Pakistan thanks Saudi Arabia, Turkey, and Qatar for their contributions to reaching the agreement.

The name that kept coming up in the peace statement: Riyadh. The quiet coordination that has been ongoing since the beginning is culminating today.
The deal is cut!
Netanyahu failed!