Finance Bill 2025 Faces Criticism for Neglecting Youth

Policy analysts and youth advocates have voiced concerns over the federal government’s Finance Bill 2025. They claim it neglects Pakistan’s youth by not including specific programs or financial incentives, despite young people representing over 60% of the population.

The Finance Bill, which details the government’s taxation and spending plans for the fiscal year 2025–26, lacks explicit allocations for youth job creation, entrepreneurial endeavors, skill enhancement, or tax benefits for students.

Economist’s Perspective

Ahmed, a senior economist, stated, “There are no customized initiatives that directly tackle the unemployment issues confronting young individuals. Given that over two million young people join the workforce each year, the lack of organized support systems is a major lapse.”

Government Response

During the post-budget press briefing on Wednesday, Finance Minister Aurangzeb acknowledged the significant demographic of Pakistan’s youth and emphasized the government’s wider strategy.

“The government must foster a supportive environment for young people,” the minister declared, recognizing the $400 million that freelancers contributed to the economy in the previous year.

He further noted that the private sector must spearhead this initiative, highlighting the bill’s broader economic changes and digital modernization initiatives as indirect catalysts.

However, critics contend that the supportive environment is still largely unclear in financial terms.

Indirect Benefits via Education Sector

The bill does offer tax breaks to a few private universities and nonprofit educational organizations.

However, analysts believe these measures are outdated and do little to increase youth access to reasonably priced or skills-based education. There has been no formal announcement of direct finance or tax relief for technical and vocational training, which is widely regarded as crucial for resolving the skills gap in the labor market.

The government has designated Rs39.488 billion for the Higher Education Commission (HEC) in 2025-26, a decrease from Rs61.115 billion in the previous fiscal year under the Public Sector Development Programme (PSDP), which serves as the primary tool for enhancing the nation’s socio-economic circumstances.

Digital Reforms

While the Finance Bill 2025 implements considerable reforms to e-commerce taxation and digital tracking systems, including compliance standards for online markets and payment intermediaries, it does not offer financial rewards or startup support for small digital vendors, freelancers, or youth-run businesses.

A consultant in the startup ecosystem commented, “There is increased enforcement, but no matching support for the entrepreneurs fueling Pakistan’s digital economy. This could discourage youth participation instead of encouraging formalization.”

Policy experts recommend that the government could have implemented:

  • Tax exemptions or reduced corporate taxes for businesses led by young people.
  • Special registration procedures for digital freelancers.
  • Specific subsidies or employment incentives for businesses that hire young employees.
  • National entrepreneurship development grants or incubator programs.

Instead, the budget emphasizes enforcement, including clauses allowing the Federal Board of Revenue (FBR) to freeze bank accounts and restrict property transfers of non-filers.

Wider Ramifications

Observers note that the absence of fiscal measures focused on youth highlights a disconnect between demographic urgency and policy formulation. According to one analyst, “A budget that fails to invest in its youth is at odds with the country’s long-term economic requirements.”

The Finance Bill 2025 is presently being discussed in Parliament and is anticipated to be approved by the end of June.