As Pakistan gears up for the Federal Budget 2025–2026, the Institute of Business Administration (IBA) Karachi convened a high-profile pre-budget seminar titled “Pakistan Economic Outlook for Budget 2025–2026” at its Main Campus. Organized by the Center for Business and Economics Research (CBER) at the School of Economics and Social Sciences (SESS), the event brought together leading experts to critically analyze the country’s economic direction and fiscal priorities.
The session was moderated by Dr. S Akbar Zaidi, Executive Director of IBA Karachi, and featured key insights from Dr. Miftah Ismail, former Finance Minister; Dr. Zehra Farooq, Secretary of Income Tax Policy at the Federal Board of Revenue (FBR); prominent economic journalist Mr. Khurram Husain; and Ms. Nadia J. Seth, General Manager at the Small and Medium Enterprises Development Authority (SMEDA), Ministry of Industries and Production.
Dr. Ismail pointed to the looming difficulty in achieving the government’s ambitious revenue targets, arguing that Pakistan already maintains some of the highest tax rates in the region. Dr. Farooq reaffirmed FBR’s commitment to evidence-based policymaking and emphasized the need for broader tax compliance, framing tax payment as a legal obligation essential to national development.
Mr. Husain offered a political economy perspective, cautioning that rising tensions with India could significantly inflate defense spending in the upcoming budget. Ms. Seth highlighted the crucial role of small and medium enterprises, noting their dominance in the informal sector and their potential to drive sustainable growth.
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The seminar also delved into structural economic challenges, including IMF conditions, the impact of post-Trump global tariffs, climate change vulnerabilities, and concerns about Pakistan’s shrinking fiscal autonomy. The discussion underscored the complex balancing act facing policymakers as they prepare the nation’s financial blueprint for the coming year.