Fortifying fiscal outlook

The budget reflects a nation’s immediate and long-term fiscal priorities, serving as more than just an accounting document. The current state of Pakistan’s budget suggests that it has become primarily an accounting representation, lacking comprehensive fiscal planning for both the present and the future. There is a prevalent misconception that post-election, all challenges will automatically resolve, and the economy will swiftly recover. The central issue now revolves around how the new government plans to address the crises it has inherited. Furthermore, concerns have arisen about the capability and competence of state institutes in effectively managing these challenges. On the other side, regrettably, none of the mainstream political parties appears adequately equipped or prepared to address Pakistan’s socio-economic issues. Instead of focusing on well-defined ideologies, these parties tend to prioritise shifting narratives, often centred on populist agendas. These changing narratives lack a stable foundation for sustainable economic growth. Let us examine how the state can augment its revenue while concurrently curbing expenditures. On the revenue front, it is notable that Pakistan’s tax collection has diminished from 14 per cent of GDP in the 1980s to a mere 10pc in 2022.