PAKISTAN'S BUDGET: A BATTLE TO PLUG HOLES

Governance failure and fiscal fire-fighting leave little room for development or reform

- BY SAJJAD ASHRAF | Special to Gulf News

Pakistan's 2025-2026 delayed budget presentation now likely on June 10 underscores deep economic uncertainty.

Dictated by the IMF and living from one tranche to the next, Pakistan has the distinction of being IMF's best customer - 24 times since 1958, and most notably without significant reforms to improve public governance.

According to the Express Tribune, Pakistan with major contraction in agriculture - historically a lifeline for the economy, has missed its growth targets for the fiscal year. Production of important crops has declined by 13.49 per cent, compelling the country to increase grain imports. The Ministry of Finance estimates that wheat import alone will cost over $1 billion — a crippling figure for an import-dependent, dollar-strapped economy. This is the state of the land once considered a 'granary' of the sub-continent.

Exports stagnant

Pakistan's exports have remained stagnant between $25 billion and $30 billion during the last decade, causing structural imbalance making the economy reliant on the IMF.

Pakistan's foreign exchange reserves, therefore, remain fragile, propped up not by trade surpluses or investment inflows, but by buying from the local market - a record over $9 billion in the past year to remain afloat, disclosed Jameel Ahmed, the State Bank Governor — and the goodwill of friendly nations such UAE, China, and Saudi Arabia.