The ritual of preparing and presenting Federal Budget proposals begins in the Chambers, Trade Associations,
Service Providers, as well as Professionals, months before the “B-Day” in Parliament. Year in and year out,
the tradition continues, culminating in the proposals being presented to the Minister of Finance. At the
same time, expensive colored advertisements in the newspapers APPEAL by various Associations to the
decision makers to save their sector from impending disaster. Business leaders and Professionals make it a
point to do intensive lobbying in Islamabad, incurring millions in airfare, hotels, food and transportations.
The optimism and hope balloon of nearly all of them is generally gets pricked as soon as the Budget is
announced because most of their efforts have again gone into the swamp. Meanwhile, sitting comfortably
in Clubs and in drawing rooms, are the elite capture and vested interests who have months before the
Budget presentation, already settled their demands and achieved their objectives through their influence in
various Ministries and in the political dispensation. The movers and shakers confidently and without
remorse, jeer and snigger at the efforts of leaders of these trade bodies and Professionals. They know that
they have the critical mass, and they know how to protect, promote, and project their vested interests.
The business leadership, primarily due to its own fault, has been divided like never before. Those external
forces who wanted this situation have succeeded beyond any doubt. Business leaders are relegated to
making Welcome Addresses, presenting plaques, and singing high praises of people who are guests of trade
organizations. Lunches and dinners, laudatory phrases, photo-ops, and making irrelevant statements are
the tools employed to lobby people who matter. Former State Bank of Pakistan Governor, Dr Ishrat Hussain,
once very candidly warned the business community about the perils of this approach. He has been proven
right, so many times.
This year, the business leadership must counsel the Opposition in Parliament to cool down and understand
the complexities and events that would be incorporated in the Budget. Political point scoring on nonessential issues must be discouraged. Notwithstanding this, it is the fundamental right of Parliamentarians
to agitate proposals such as unwarranted allocations for pork barrel projects that are primarily beneficial
for Treasury Bench members, or for white elephant initiatives, or wasteful non-development expenditures.
The ruckus and free-for-all which are the hallmark of the Budget session must be restrained. It should be a
consensus national Budget, for times are difficult.
The private sector should also lavish accolades to Finance Minister Muhammad Aurangzeb for his efforts,
especially when external as well as domestic fireworks are impacting daily. To some extent, the 2025-26
Budget would take into account the imperatives of national security, with absolutely no thanks to Modi’s
belligerence. He has to deal with serious IMF conditionalities, political instability and deep polarization,
electricity, gas, fuel prices, and increasing poverty, all strong, menacing and foreshadowing factors that
must be addressed. The Finance Minister must accept pragmatic proposals from the private sector, even if
these proposals dent to some extent the revenue collection. Both the Finance Minister and the private
sector must be on the same page. SIFC can increase its outreach and get all stakeholders moving uniformly
in the right direction.
This should also be the Year of Youth. Can a nerdy Pakistani start a business, find capital at a reasonable
price that doesn’t tie his hands, not have to take VIP partners, not have tax collectors take him to the
cleaners, not have petty government functionaries hound and harass him, doesn’t fall victim to extortionists
and street criminals, and sincerely have recourse to honest courts in the event of commercial disputes?
When the answer is yes, Pakistan is getting close to being a competitive state. The exodus of talent must be
discouraged, and the Finance Manager can be the motivating force through the Budget.
There should now be a well-planned strategy to move away from traditional budget making, taxing the
already taxed, turning a blind eye to corruption, controlling under-invoicing, mis-declaration, and
smuggling, and reliance on indigenous resources. The last few years were akin to the movement of the
ocean for trade and industry. The restless ups and downs, the forceful waves and ebbing of the tide, and
the mariner’s safety signals and the lifeguard’s red warnings to stay away from the high seas aptly describe
the economy of Pakistan. 2025 could be considered as a defining moment in chartering the future course of
Pakistan’s economic survival and economic prosperity. This is the hope. All these years, Pakistan has been
in a state of plus ca change, plus c’est la meme chose. (The more things change, the more they stay the
same).
BY : Majyd Aziz.
(The writer is former President of
Karachi Chamber of Commerce and Industry)
