The upcoming federal budget needs to focus on long-term economic development rather than short-term stabilization. Economic experts at a discussion hosted by the Institute of Policy Studies (IPS) emphasized the importance of boosting exports, ensuring food security, promoting investment, and reducing inequality. They warned that without political will and structural reforms, the country may continue to face stagflation and rising poverty.

Dr. Zafar ul Hasan highlighted the risk of higher food inflation due to rising imports of consumer goods and warned of a potential policy rate hike. He noted existing challenges with data availability, fragmented institutions, and a worsening balance-of-payments crisis linked to stagnant exports. Dr. Shahid Naeem pointed out rising poverty and inequality, citing ineffective social protection programs and elite capture.

Dr. Shujaat Farooq criticized the budget’s ineffectiveness and the lack of alignment with long-term development plans. Mehtab Haider stressed the reliance on the salaried class for tax revenues amid ongoing stagflation and criticized the IMF’s uniform stabilization approach. He called for political will to implement essential reforms and a focus on the informal economy.

Dr. Ahmad Zubair concluded by urging the need for innovative economic strategies, resource transfers, and addressing governance issues to improve per capita income and economic sovereignty.