The budget has been approved by the National Assembly, demonstrating a commendable display of unity from the coalition partners. Initially, there were reservations in the House when the budget debate began, giving the impression that the finance bill would face significant challenges before passing. Instead, after raising their respective concerns, the parties decided not to exacerbate matters or fuel political instability. This display of political sanity by the government’s coalition partners – the Pakistan Peoples Party and the Muttahida Qaumi Movement – is noteworthy.

This budget is laden with taxes and comes with warnings of worsening inflation as the state fills projected revenue gaps with indirect taxes. It was a tough decision and far from ideal, but the government had little choice but to adopt this heavy taxation budget. Nevertheless, in the long run, these tough decisions will pay off, leading to economic stability alongside an International Monetary Fund bailout. The budget’s implementation will ideally expand the tax base, a structural reform that Pakistan has struggled to achieve. After receiving approval from the National Assembly, the budget will also need to pass through the Senate. The upcoming fiscal year, starting June 1st, will be tough and challenging. Seeing unity prevail in the National Assembly over the budget is encouraging, as it prevents this important matter from becoming controversial and delayed. The House should carry this spirit forward and pass much-needed legislation aimed at reforming different sectors.

Pakistan’s economy has suffered immensely due to political polarization. Economic reforms can only thrive in a stable political environment. Therefore, it is imperative to set aside narrow reservations and contribute to the greater national cause. The coalition members have done their part by approving the budget, and now the finance bill will move towards execution.