Islamabad, June 14, 2024 – The Policy Research Institute of Market Economy, supported by the Friedrich Naumann Foundation (FNF) Pakistan, convened a post-budget roundtable where leading voices from research institutes, academia, and government gathered to analyze Pakistan’s fiscal policies and upcoming budget allocations. The discussion aimed to provide insights into the economic implications of these decisions.

Dr. Ali Salman, Executive Director of PRIME, highlighted the need for a coherent fiscal strategy amidst current economic challenges. “The budgetary measures require scrutiny,” remarked Dr. Salman. “There appears to be a departure from our research-driven approach advocating
streamlined tax policies and sector-neutral budget allocations.”

Key concerns included tax exemptions totaling 3.9 trillion rupees, impacting revenue targets and fiscal sustainability. Experts stressed the urgency of a uniform tax regime to stimulate economic growth and combat the shadow economy, which currently represents approximately 40% of Pakistan’s GDP.

Dr. Manzoor Ahmad, former Ambassador to WTO, noted discrepancies in trade policies and customs tariffs. “The budget’s emphasis on import substitution could hinder Pakistan’s integration into global markets,” he cautioned. “We must align with global economic trends and adopt policies promoting competitiveness and innovation.”

Dr. Nadia Tahir, Economist, expressed concerns about sector-specific impacts, particularly within healthcare and education. “Unbalanced tax measures risk undermining sectors critical to Pakistan’s socio-economic development,” she cautioned.

Dr. Mahmood Khalid emphasized the need for clarity and accountability in fiscal planning. “The budget lacks a coherent long-term perspective,” noted Dr. Khalid. “Targets set in previous years have not been met, reflecting a disconnect between policy objectives and outcomes. The absence of a comprehensive 13th five-year plan exacerbates this issue, leaving us without a clear roadmap for sustainable fiscal management.”

He further highlighted issues such as tax exemptions disproportionately impacting revenue collection, concealment of public sector debts and liabilities, and circular flows of government funds that undermine transparency. “The budget’s reliance on charging expenditures limits
flexibility in fiscal management,” Dr. Khalid added.

The roundtable also addressed transparency in budgetary processes, advocating clearer disclosures on debts and contingent liabilities. Experts called for proactive governance and evidence-based policymaking to effectively navigate Pakistan’s economic challenges. 

The event concluded with a consensus on the need for continued dialogue between policymakers, researchers, and stakeholders to shape inclusive economic strategies. Participants emphasized fostering transparency and accountability in fiscal decisions to strengthen Pakistan’s economic resilience.

For further inquiries or information on the outcomes of the roundtable discussion, please contact Mr. Farhan Zahid at +92 331 522 6825