Senators Criticize Budget 2025-26, Demand Tax Relief and Solar Reforms
ISLAMABAD – In a heated session of the Senate, lawmakers sharply criticized key elements of Budget 2025-26, with a particular focus on tax policy, energy reforms, and foreign affairs. Senators from across party lines condemned the recent Israeli aggression against Iran and called for greater fiscal relief for Pakistan’s citizens struggling under inflation and economic hardship.
The ongoing debate on the Finance Bill saw Senator Dost Ali Jeesor denounce Israel’s attack on Iran and praise Pakistan’s principled response. He urged the Organization of Islamic Cooperation (OIC) to convene an emergency session to address escalating regional tensions. His sentiments were echoed by other senators, who lauded Bilawal Bhutto Zardari’s role in promoting Pakistan’s diplomatic efforts for peace.
On the domestic front, tax policy remained a central point of contention. Lawmakers condemned the 10% General Sales Tax (GST) on solar panels, arguing it would discourage the adoption of renewable energy among the middle and lower classes. Multiple senators, including Muhammad Aslam Abro and Ahmed Khan, demanded a complete repeal of the solar tax, highlighting solar power’s role in bridging Pakistan’s energy gap and supporting rural electrification.
The senators also expressed frustration over inadequate allocations for major infrastructure projects, especially the long-delayed M-6 Hyderabad–Sukkur Motorway. They warned that insufficient funding would hinder regional connectivity and economic growth in Sindh and Balochistan.
Senator Jam Saifullah Khan went further, linking environmental sustainability with budget priorities, criticizing new taxes on electric and hybrid vehicles. He stressed that such measures contradict Pakistan’s climate goals and called for incentivizing clean transportation.
Senator Rubina Qaimkhani highlighted the disproportionate impact of taxation on the poor and middle class, criticizing the meager 10% salary increase for government employees as insufficient in the face of skyrocketing inflation. She demanded higher budget allocations for education and healthcare, warning that over 270 million children remain out of school and nearly half the population lives below the poverty line.
Senator Abdul Qadir also weighed in on economic strategy, advocating for export-led growth to reduce Pakistan’s reliance on loans and imports. He called for government support to the IT and e-commerce sectors, noting that excessive taxation on digital services could hinder innovation and global competitiveness.
Senator Husna Bano welcomed road development projects for Balochistan but urged the government to address the province’s persistent shortages in gas, electricity, and clean water.
The session concluded with calls for greater transparency in budget formulation, improved consultation with stakeholders, and a broader commitment to economic justice and sustainable growth.
