Protect consumers
Why this matters: local context for readers following news across Pakistan and the region.
THE federal budget for 2026-27 contains several welcome measures, particularly the tax relief extended to the salaried class and incentives aimed at supporting economic activity. However, the reported taxation measures amounting to around Rs650 billion raises serious concerns due to their likely impact on the prices of essential commodities used by millions of Pakistanis every day. According to reports, the new tax measures are expected to affect nearly three dozen essential items, including milk, dairy products, edible oil, ghee and agricultural pesticides. While revenue generation remains a legitimate objective, taxation on basic necessities risks placing an additional burden on consumers who are already struggling to manage their household budgets. The recently released Economic Survey paints a worrying picture. It indicates that the consumption of milk and meat has declined, largely because many families can no longer afford these essential sources of nutrition. This trend is alarming in a country where nutritional challenges already exist. Any measure that further increases the prices of milk and dairy products is likely to reduce consumption even more, adversely affecting public health, particularly among children. Similarly, edible oil and ghee prices are already on the higher side. Additional taxation will inevitably be passed on to consumers, making these everyday necessities even more expensive. The burden of such increases falls disproportionately on low and middle-income households whose incomes have not kept pace with the rising cost of living. The government has repeatedly highlighted the achievement of economic stability and there is no denying that key economic indicators have shown improvement. However, the true test of stability lies in whether ordinary citizens can feel its benefits in their daily lives. Economic gains will have limited meaning if essential commodities continue to move beyond the reach of the common man. At the same time, attentio