Civil society groups, economists, labour representatives, and rights activists have strongly criticised Pakistan’s 2026–27 federal budget, calling it an austerity-focused plan that shifts the burden of economic adjustment onto low-income households while failing to adequately address labour rights and gender inequality.

According to a statement shared on X, the Human Rights Commission of Pakistan (HRCP) highlighted remarks made during a seminar where participants warned that the government’s fiscal strategy could deepen existing social and economic inequalities and further reduce living standards for vulnerable groups.

Moderating the discussion, economist Dr Fahd Ali said that cuts in public spending on key sectors such as education, healthcare, nutrition, and social welfare would likely increase socio-economic gaps. He added that declining household consumption and worsening nutrition indicators reflect rising financial pressure on families across the country. He also emphasised the need for stronger enforcement of labour laws, noting that the estimated living wage is far higher than the official minimum wage.

Economist Dr Hadia Majid argued that the budget’s gender equality measures were largely symbolic in nature. She pointed out that responsibility for essential services like education, health, and social protection has effectively been transferred to provincial governments, many of which are already under significant financial strain. Although funding for the Benazir Income Support Programme (BISP) has been increased, she said the support remains inadequate to cover basic nutritional needs.

Dr Majid also noted that tax relief measures in the budget are unlikely to benefit most women, given their limited participation in formal employment. She criticised the lack of structural reforms to improve women’s economic participation, despite ongoing concerns over maternal health, child mortality, and girls’ access to education.

Labour leader and APTUF Secretary General Rubina Jamil accused the government of prioritising spending that offers little relief to working-class citizens. She added that the budget fails to provide meaningful protections for contract workers, domestic workers, agricultural labourers, garment industry employees, pensioners, and workers in hazardous occupations.