Economic and policy experts have emphasized the need for longterm strategic planning in the upcoming Federal Budget 202526, urging the government to align fiscal priorities with the Uraan Pakistan fiveyear development plan rather than relying solely on shortterm annual budgetary fixes.
Leading economists and policymakers highlighted the importance of inclusive and sustainable economic development in the face of recurring financial challenges and geopolitical uncertainties.
They were speaking at a seminar titled ‘Federal Budget 202526: Strategic Priorities under Uraan Pakistan and the Shadow of PakistanIndia Tensions’ organized by the Institute of Policy Studies (IPS), Islamabad here on Monday.
The panelists included Dr Waqar Masood Khan, former federal secretary at the Ministry of Finance; Sakib Sherani, former principal economic advisor to the Government of Pakistan; Zafar ul Hassan Almas, former joint chief economist at the Ministry of Planning, Development and Special Initiatives; and Khalid Rahman, Chairman of IPS.
The speakers noted that Pakistan is currently navigating its 14th International Monetary Fund (IMF) program since 1988, underscoring a pattern of reliance on shortterm external support without implementing deeprooted structural reforms.
‘Each IMF arrangement offers temporary relief, but the real challenge lies in sustaining longterm economic growth,’ the experts remarked.
Criticizing the traditional focus on annual budget cycles, the participants called for a forwardlooking 5 to 10year economic vision. They warned that in the absence of comprehensive planning, budgetary decisions risk being reactive, especially amid current tensions with India and unresolved issues such as the Indus Waters Treaty.
They also stressed the need to integrate climate resilience, water resource management, and energy sustainability into fiscal planning, noting these as critical components of both national security and economic development.
While acknowledging positive trends such as declining inflation, a stronger currency, a stable balance of payments, and a recovering stock market, the panelists cautioned that these gains are largely the result of ad hoc measures rather than systemic reforms. They urged the government to institutionalize changes such as pension reforms and regulatory easing for businesses.
‘Stability, not high growth, should be the immediate focus,’ said one speaker, while also maintaining that a 4-5% growth target remains achievable if export performance is improved and business conditions are made more favorable.
The experts noted that the Uraan Pakistan strategy provides a sound framework for progress but lamented its lack of visibility in actual policy execution. They called the upcoming federal budget a critical opportunity to give life to Uraan Pakistan’s objectives-enhancing exports, developing the IT sector, fostering environmental sustainability, and transitioning to green energy.
In his concluding remarks, IPS Chairman Khalid Rahman stressed that Pakistan’s economic challenges are rooted in the political economy, particularly the instability of policymaking.
‘Policy continuity across governments is vital for creating a stable and investorfriendly environment,’ he said, adding that recent improvements should be translated into longterm development that addresses the needs of the wider population. He also highlighted the role of the private social sector in driving both economic and social progress.
The seminar concluded with a consensus that strategic alignment of the budget with longterm plans, particularly Uraan Pakistan, is not only desirable but essential for ensuring Pakistan’s sustained economic resilience and regional competitiveness.