Pakistan’s federal budget for 2026-27 needs a shift from short-term stabilisation to long-term development, according to experts. The discussion was held in Islamabad by the Institute of Policy Studies (IPS) on Tuesday.
Dr Zafar ul Hasan warned that rising imports and food security issues could push inflation to 15 per cent, requiring an additional Rs500-600 billion for debt servicing. He also highlighted fragmented datasets, weak coordination, and limited room for tax increases as risks.
Dr Shahid Naeem pointed out that despite growth improvements, survey data showed increasing poverty and inequality due to elite capture and indirect taxation. He criticized social protection programmes for being siloed and called for better accountability in government institutions.
Dr Shujaat Farooq argued that the budget has become ineffective as a regulatory tool, disconnected from five-year development plans. Most districts contribute nothing to exports, he noted.
Mehtab Haider said the salaried class bears the bulk of the tax burden while wealthy segments remain untaxed. He criticized the IMF’s approach and called for documenting the informal economy in future budgets. Agricultural and retailer taxation exists but is not enforced, requiring political will to fix.
Dr Ahmad Zubair stressed that Pakistan must adopt development-oriented thinking to raise per capita income. He warned that economic sovereignty is eroding due to poor governance, despite high tax collection and mounting inequality.