Shortly before Eid, our defense forces, valiantly and with tactical brilliance, established our territorial security. Soon after Eid, Finance Minister Aurangzeb will present the federal budget today and the expectation is that it will put us on the path to economic security. Thus, this auspicious Eid-ul-Adha would be the harbinger of enduring National Security.

Economic vulnerabilities have accumulated over the last three decades leading to balance of payments crises, disruption of growth and poor job creation. This has reversed our excellent achievements in improving living standards and poverty reduction. It is time to correct this.

The core vulnerabilities are: a chronic fiscal deficit financed with expensive and unsustainable domestic and foreign borrowing; and an economic structure that produces a surge in imports as growth recovers.

Together, they cause repeated balance of payments crises. We should expect the budget to address these vulnerabilities.

Fiscal consolidation must remain a top budget priority. The IMF programme hinges on this. On the expenditure side, we should expect no untargeted, underfunded subsidies and see continued reduction in waste. On revenue, we should expect fairness, i.e., more untaxed and undertaxed activities brought into the tax net and treated on par with those already paying taxes. This should reduce undue burden on the corporate sector, including on salaries.

The strategic shift we........

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