Gohar Ejaz presents 'shadow budget' ahead of Budget FY2026-27

LAHORE: Former caretaker minister Gohar Ejaz on Monday presented his shadow budget proposals ahead of the announcement of the federal budget for FY2026-27.

In a statement Chairman Economic Policy and Business Development, Gohar Ejaz said, “Every year a ritual to pass budget being performed in June”. “The budget prepared behind the walls of some ministries and less than two weeks’ time given to the Parliament for scrutiny of the budget”, he said.

Gohar Ejaz said that the business community informed after passage of the budget. “They expect the business community to run the wheels of the national economy”.

He said this process of budget making has been failed, as the investment has stopped in the country, “In last three years average two percent economic growth can be achieved. It is not the economic stability, it is a step-by-step decline,” Ejaz said.

Gohar Ejaz said that the government debt has galloped from 19 trillion to 80 trillion in 10 years. “Sixty percent of the budget being spent on debt-servicing”.

He said the taxation system punishing tax holders, the receipts have doubled in five years, tax-to-GDP ratio has reach to 10% as burden being piled up over the salaried and business classes.

Former caretaker minister said that the undocumented economy being run outside the tax net.

Presenting the budget proposals of the Economic Policy and Business Development, Gohar Ejaz suggested reducing the income tax rate from 35% to 20% and corporate tax rate from 29% to 25%. He also proposed reducing the sales tax rate from 18% to 15% in next three years.

While suggesting removal of the non-filer category, he suggested fixing the FBR’s tax collection target at 14,500 billion. He also proposed steps to reduce the government spending by three to four trillion rupees.

Gohar Ejaz also suggested return of expensive loans, ban on constitution of new departments, handing over of the devolved institutions to provinces and expansion of the scope of the single treasury accounts.

Former minister also suggested that the government funds should not be deposited in commercial banks.

He said the meaningful financial reforms are difficult until constitution of the new National Finance Commission Award.

He said that the figures of the shadow budget are based on facts, “challenge them if they are unreal”. He said the business community could not accept the un-consulted decisions and urged for giving heed to the proposals given in the shadow budget.