The National Assembly of Pakistan, chaired by Speaker Ayaz Sadiq, has approved the federal budget for the fiscal year 2024-25, worth a staggering Rs18.877 trillion. However, the session was marked by a walkout by the opposition, who felt their concerns were not adequately addressed during the passage of the financial bill.

Despite the opposition’s protest, the assembly passed several contentious amendments, including a significant increase in tax rates on international air travel tickets. Passengers travelling in economy and economy plus classes will now be required to pay an additional tax of Rs12,500 on international tickets. The tax hikes are even more substantial for travellers in business, club, and first-class, ranging from Rs30,000 for the Middle East and Africa to Rs350,000 for travel to North, Central, and South America.

The budget’s approval marks a significant step in the government’s fiscal plan, but it has not been without controversy. The opposition, led by the Pakistan Tehreek-e-Insaf (PTI) and the Sunni Ittehad Council, criticized the budget, labelling it as “IMF-driven” and “harmful to the public.”In addition to the tax hikes on air travel, the National Assembly also approved several other key amendments to the federal budget. These include enhancing the powers of the Federal Board of Revenue (FBR) officers for sales tax audits, allowing them to access all relevant records and data necessary for conducting tax audits. Furthermore, a new tax fraud investigation wing will be established within the FBR to address tax evasion and fraud.

The session also saw the approval of an amendment presented by the Pakistan Peoples Party (PPP) to increase the privileges of parliamentarians, including a hike in the travelling allowance from Rs10 per km to Rs25 per km and the ability to utilize unused air tickets in the following year. This amendment sparked further opposition from the other political parties.

Prime Minister Shehbaz Sharif, in his address to the National Assembly, emphasized the historical significance of the National Finance Commission (NFC) award, recalling his personal involvement in the discussions during the tenure of former Prime Minister Yousuf Raza Gilani and President Asif Ali Zardari.

Overall, the approval of the federal budget for FY 2024-25 has been a contentious and divisive process, with the opposition voicing their concerns and the government pushing through its fiscal agenda despite the criticism.