Islamabad : Senate session on the federal budget 2025–26, Senator Sherry Rehman, Vice President PPP and Chairperson of the Senate Standing Committee on Climate Change thanked the federal government for making some of changes proposed by the PPP in its taxation measures, especially on solar panels and education grants.
Senator Rehman said “Appreciate the federal government for accepting the PPPs proposals for finally reviewing the cut in the universities grant, which is being restored to 4.6 billion now.
Would have preferred no tax but at least now on solar panels, the tax is reduced from 18% to 10%. It is something the party has pushed back on in forums including the finance committees of both Houses.
We are still pushing for other reforms but on provincial autonomy we thank the federal government for leaving the projects that were with the province of Sindh to stay with the province for implementation.
She also said that the tax on goods procured through digital platforms will be collected by FBR, but not on services. That will stay with the provinces.”
Turning to the climate crisis, Senator Rehman was less sanguine as she said , “We are facing extreme climate risks, economic pressures, and social inequality—the budget should also reflect that urgency in its allocations to face a decade of polycrisis .”
Senator Rehman expressed disappointment over the slashing of Ministry of Climate Change’s budget from Rs. 3.5 billion to Rs. 2.7 billion, warning that this weakens national coordination, mitigation and adaptation, as well as access to global climate finance. The climate ministry will barely get its job done of representing Pakistan in 27 international treaty commitments. Where will it now carve out space for transformational financing ? We have already lost our voice on the Loss and Damage fund we secured with serial hard work and commitments from former FM Bhutto and PM Sharif.
She said Pakistan has to also take the climate crisis as a real emergency, not just a talking point. She raised alarm that Pakistan now topped the global list of climate vulnerable countries on the German Watch Climate Risk Index 2025 report, while also suffering from record temperatures of 50 C plus in the south of the country ,while also facing critical water scarcity. At this inflection point we needed to put our money where our maximum challenges arise.
“We are now among the hottest countries in the world. Halving the climate budget in such conditions could be a dangerous precedent.”
She underscored the over 50% cut in the pollution control budget, the drop in environment protection funds from Rs. 7.2 billion to Rs. 3.1 billion, and the loss of 27,000 hectares of agricultural land each year, with no allocation for rainwater harvesting.
Senator Rehman criticized the imposition of 18% GST on electric and hybrid vehicles.
“Imposing taxes on EVs in a climate emergency is counterproductive.As long as old, smoke-emitting vehicles run on our motorways, air pollution will keep worsening. Currently Air pollution causes 128,000 deaths every year in Pakistan”
“According to the Air Quality Life Index 2024, nearly the entire population of Pakistan breathes toxic air. And the World Bank estimates air pollution costs us 7% of GDP annually.”
Senator Rehman talked about the education sector underscoring that
“Twenty-six million children in Pakistan are still out of school,” Senator Rehman reminded the House. “I am pleased that special attention is being given to youth education in Balochistan and Sindh, but we need a systemic response.”
Addressing wage disparities and regressive taxation , she said
“I would also like to say that while the Prime Minister and Finance Minister have made great efforts to improve tough economic indicators in a resource squeeze between debt, and defence which is needed , we must still raise the minimum wage,”
I am unhappy to see that we raised our own salaries but failed to raise the minimum wage? Why? The common householder is facing hardship greater than we can imagine in the shape of utility bills and high heat. Even now, the minimum wage falls below the global poverty threshold. Those who say wage limits don’t matter because in many cases it goes in implemented is like saying don’t make a good law. Because it never gets implemented enough. Yet big companies have to abide by these standards that the state sets so please let’s look to the bottom of the social pyramid with real lenses.”
She linked the issue of a sudden surge in petrol prices to broader economic stress linked to the global prices of oil.
“Oil prices are already rising after Israel’s war on Iran—which has imposed a ruinous war on Iran. In such tough times, we must stand up for our people, not abandon them to economic hardship.”
Senator Rehman also touched on India’s unilateral suspension of the Indus Waters Treaty during the drought and water scarce conditions in Pakistan, calling it “a weaponization of water in a country which is already water scarce in this year 2025.”
“Pakistan has always desired peace. But India’s decision to treat shared water as a weapon is unprecedented and dangerous,” she said. “When we met leaders in Washington, London, and Brussels, our point was clearly understood.
India has no justification for the unilateral suspension of the Indus Waters Treaty (IWT).We presented a strong case in that delegation.And with everyone we met, our point was understood. We spoke about lasting peace and did not move towards war. Pakistan acted as a responsible and mature nuclear power.
Meanwhile India’s delegation had no clear message at all.”
Senator Rehman closed by acknowledging key contributors to Pakistan’s international advocacy:
“I pay tribute to Prime Minister Shehbaz Sharif, Chairman Bilawal Bhutto Zardari, and the Foreign Office for effectively advocating Pakistan’s case on the global stage. We had productive conversations everywhere and Pakistan’s narrative stood out stronger.”
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
