Karachi May 13, 2025: IBA Karachi hosted a pre-budget seminar, “Pakistan Economic Outlook for Budget 2025-2026”, critically examining Pakistan’s economic landscape and the upcoming Federal Budget 2025–2026 at the Main Campus, organized by the Center for Business and Economics Research (CBER) at SESS.
Moderated by Dr. S Akbar Zaidi, Executive Director, IBA Karachi, the session featured insightful contributions
from Dr. Miftah Ismail, Former Minister of Finance; Dr. Zehra Farooq, Secretary, Income Tax Policy, Federal
Board of Revenue (FBR); Mr. Khurram Husain, Business & Economy Journalist, and Ms. Nadia J. Seth, General
Manager, SMEDA, Ministry of Industries and Production.
Given the targets set, Dr. Ismail highlighted the challenge the government may face in meeting the revenue
targets in the upcoming fiscal year. He emphasized that Pakistan already has higher tax rates than its regional
counterparts. Dr. Farooq emphasized that FBR is committed to evidence-based policy making for targeted
intervention to expand the tax base and ensure compliance. She stressed that citizens should pay taxes as it is
their legal obligation, and documentation of the economy is fundamental.
Mr. Husain contextualized the budget within the broader political economy, warning that defense spending
may command a significant share of the upcoming budget given the recent tensions with India. Lastly, Ms. Seth
stressed that small and medium enterprises are the backbone of the economy and a much larger share of the
informal economy.
The seminar explored pressing issues such as IMF conditions, post-Trump tariffs, climate vulnerabilities, and
Pakistan’s fiscal autonomy.
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