INTERVIEW: Mian Anjum Nisar – Budget 2025–26 is directionless, lacks industrial Vision

By The Tribune International Special Correspondent 

Journalist: Thank you, Mian Anjum Nisar, for joining us today.

As a former President of FPCCI and Chairman of PIAF, how do you view the Federal Budget 2025–26?

Mian Anjum Nisar: Thank you for having me. This is a directionless budget. It lacks any roadmap for economic revival, industrialization, or job creation. There’s no long-term planning or clear policy for investors. It’s more of a tax collection document than a development plan.

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Journalist: What are your major concerns with this budget?

Mian Anjum Nisar: First and foremost, the markup rate remains uncompetitive — one of the highest in the region. Secondly, electricity for industries is priced at 12 cents per unit. That’s far too high to sustain industrial competitiveness. Now the government has reduced some Customs Duties and Regulatory Duties (RDs) on raw materials, which might sound business-friendly, but without lowering electricity and interest costs, it can do more harm than good. You’re importing raw materials at a lower cost, but processing them is still too expensive due to high power and finance costs.

Journalist: Isn’t the reduction in taxes on salaries and the 10 per cent public servant raise a positive move?

Mian Anjum Nisar: It’s a small relief, but unfortunately offset by inflationary measures. The oil levy has been increased from Rs 60 to Rs 78 per litre, and a Rs2.50 carbon levy has been imposed. This will hike fuel prices, trigger inflation, and hit purchasing power. The middle and working classes won’t feel much relief.

Journalist: The cabinet and PM aides’ salaries have also seen major increases. What’s your view?

Mian Anjum Nisar: It’s disturbing. Public servants are getting a 10 per cent raise while parliamentarians, advisors, and PM aides are enjoying huge jumps in allowances and perks. This is not austerity. The government should lead by example, but this shows a complete disconnect from public hardship.

Journalist: Any specific industrial concerns?

Mian Anjum Nisar: Absolutely. There’s no plan to promote industrial growth. The budget is silent on SME facilitation, regional competitiveness, or lowering business costs. Without a reduction in markup rates and energy tariffs, you cannot expect industries to thrive or create jobs. There’s no incentive for expansion or new investment.

Journalist: What about agriculture?

Mian Anjum Nisar: The agricultural sector has been ignored. Farmers have received no assurance of support prices, no input subsidies, and no incentive for wheat, cotton, or rice. Agriculture is already struggling and this will push rural economies further into crisis.

Journalist: Is Pakistan doing away with any potential strategic resources?

Mian Anjum Nisar: Yes — water. We are wasting billions of litres of water every year due to lack of storage and planning. Just this one resource, if used sensibly, could be a big game changer. Water conservation, dam construction, and modern irrigation can transform agriculture, improve food security, and even power our energy sector through hydel. Yet this area remains underfunded and underprioritized.

Journalist: Does the budget support green energy or sustainability?

Mian Anjum Nisar: There is a lot of talk, but no action. There is no real investment in green or clean energy. Solar and wind are not incentivized. Nor is there progress on horizontal irrigation or energy-efficient infrastructure. The vision for sustainability is absent.

Journalist: What reforms do you suggest?

Mian Anjum Nisar: Reduce markup and electricity tariffs to competitive levels. Ensure real austerity by trimming non-essential government expenditure. Incentivize exports and manufacturing through policy certainty. Revive agriculture by setting support prices. And treat water as a strategic national asset — invest in its conservation and management.

Journalist: Final thoughts?

Mian Anjum Nisar: This is not a business-friendly or people-friendly budget. It is built on high taxation, inflationary measures, and increased perks for the ruling class. The path forward requires industrial policy, investment facilitation, energy reform, and strategic resource planning. Without that, we’ll remain stuck.

Journalist: Thank you, sir.

Mian Anjum Nisar: Thank you.