Iqra University today hosted its sixth annual budget policy session titled “Economic Outlook and Budget 2025-26 Expectations: Under Post-Conflict Scenario”, drawing attention to Pakistan’s evolving economic landscape in the wake of ongoing regional challenges and structural economic pressures.
The high-profile event, held from 12:00 PM to 2:00 PM at the university’s main campus, brought together distinguished economic experts, including Mr. Shabbar Zaidi, Dr. Mian Zahid Hussain, Mr. Abdul Qadir Memon, Engineer MA Jabbar, and Mr. Majyd Aziz Balagamwal. The session was moderated by Mr. Muhammad Yasir and aimed to dissect the implications of the upcoming federal budget and broader fiscal trends in a post-conflict context.
Opening the discussion, the Business Administration Dean Dr. Zaki Rashidi in his welcome address, framed the national economic dilemma: “We are at the critical juncture of economic stability… how are we going to stabilise, when we are in a conflict situation?” This underscored the urgency for grounded fiscal strategies that address both immediate economic concerns and long-term sustainability.
Key topics explored during the panel included:
IMF Conditionalities: Panellists acknowledged that while Pakistan’s engagement with the IMF provides essential financial support, the program’s rigid conditions, particularly around tax and fiscal reforms, may constrain domestic policy autonomy and impact social spending. A balanced, negotiated approach was advocated to maintain sovereignty while ensuring macroeconomic discipline.
Tax Reforms and Structural Overhaul: Experts emphasised the urgent need to broaden Pakistan’s tax base and improve compliance through digitalisation, transparency, and a shift away from over-reliance on indirect taxes. A recurring theme was that genuine reform must target systemic inefficiencies without stifling growth.
The Changing Nature of the Budget: Critiquing external influence over national fiscal planning, Mr. Majyd Aziz wittily noted, “The budget that used to come, we used to call it Islamabad Babu Budget. Now, Washington IMF Babu Budget is coming.” He illustrated how the nation’s fiscal agenda has grown increasingly shaped by international institutions, often at the cost of local priorities.
The Iceberg Theory of the Economy: In highlighting the gap between visible economic indicators and underlying systemic challenges, Mr. Majyd likened the current crisis to an iceberg: “Only 10% of economic problems are visible; 90% lie beneath the surface.” Persistent issues like smuggling, under-invoicing, and outdated labour laws continue to undermine confidence and productivity.
Reliance on External Aid: The discussion acknowledged Pakistan’s rising dependence on countries such as China, Saudi Arabia, and the UAE due to the imbalance between national income and expenditure. Experts stressed the necessity of increasing exports, restructuring state-owned enterprises, and adjusting electricity pricing to reduce this reliance.
Despite the challenges, there was cautious optimism. Iqra University’s Vice Chancellor, Dr. Nassar Ikram stated, “Pakistan’s recent positive macroeconomic indicators suggest a turning point that could support greater financial stability and growth. However, these potential gains are contingent upon consistent policy and strategic clarity.”
This annual budget talk series at Iqra University has become a vital forum for thought leadership and constructive dialogue on Pakistan’s fiscal future. With a cross-section of voices from the public and private sectors, it aims to contribute actionable insights to national policymaking and economic reform.
