Pakistan budgets offer little relief amid inflation, education spending drops

Pakistan's upcoming budgets for fiscal years 2026-27 signal a continuation of policies that offer minimal relief to fixed-income groups, despite the nation enduring one of its worst periods of inflation. The budgets indicate a lack of concern for ordinary, working-class Pakistanis who have been disproportionately affected by rising prices and stagnant income growth.

Both the expenditure side, through increased prices of goods and services, and the income side, marked by limited opportunities for wage increases due to slow economic growth and higher direct and indirect taxation, have squeezed household finances. The prime minister's recent acknowledgment of the public bearing the brunt of crises, framed poetically as 'faqat wada-i-hoor' (merely a promise of heaven), underscores the disconnect between the government's actions and the public's struggles.

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The budgets for FY26-27 are mostly out and the story they tell is the same as before: they don’t really care about us.

A critical area of concern highlighted is the education budget. The United Nations recommends allocating a minimum of 4% of GDP to education annually. Pakistan, which previously spent slightly below 2% of GDP on education, has seen this figure drop below 1% in recent years. This significant reduction in educational investment raises serious questions about the country's commitment to human capital development.

The budgets appear to prioritize fiscal consolidation over social welfare, leaving vulnerable populations to shoulder the burden of economic recovery. The lack of targeted relief measures and the decline in essential social spending suggest that the government's priorities may not align with the immediate needs of its citizens.

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faqat wada-i-hoor