NATIONS must eventually move beyond survival and aim for transformative growth.

Pakistan, rich in human capital, again opts for caution.

The new federal budget prioritizes fiscal discipline and IMF compliance over bold reform.

Aiming to reduce the fiscal deficit from 5.9% to 3.9% of GDP, it leans on a record Rs1.5 trillion provincial surplus, 50% higher than last year.

While this aligns with the $7bn IMF programme and ensures a smooth September review, it limits space for structural reform and investment in productivity.

The focus remains on short-term stability rather than long-term economic transformation, missing the opportunity to address chronic issues like low growth, weak exports and industrial stagnation that continue to hold back Pakistan’s potential.

To its credit, the government has provided some income tax relief to salaried individuals, funded largely through Rs1 trillion in savings from lower domestic interest rates.

Additionally, concessions were granted to the influential real estate sector, indicating how fiscal room is often captured by vested interest groups rather than redirected to sectors that generate value, productivity, and global relevance.

But what is missing from this document is more profound than what it contains.

There is no blueprint here for the transformation of Pakistan’s economic foundations.

The nation has waited decades not just for a budget, but for a moment, a strategic pivot that redefines our economic priorities, diversifies our export base, and unleashes........

© Pakistan Observer