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THEY all look the same and for good reason. Every budget over the past 10 years (and more) is pretty much the same with minor differences usually in the gimmickry being advanced in the name of a ‘revenue plan’. And it will be no different this time round when the budget for FY27 is announced.
There is a simple reason for this. A little more than a decade and a half ago Pakistan finally abandoned its last attempt to try and get serious tax reform through. Since then, successive governments have been rolling out various gimmicks, from amnesty schemes to ‘point of sale machines’ to do something that cannot be done with gimmicks. They are trying to document the growing services sector of the economy with these gimmicks, which is like trying to measure the ocean with a teacup.
Consider a little perspective first. Since the 1980s, the single fastest-growing sector of the economy has been services. It was slightly less than half of Pakistan’s GDP back in those days. Today, it is touching 60 per cent while the shares of industry and agriculture have shrunk. But today, services contributes less than 40pc of total revenues while the share of manufacturing can be as high as 55pc.
