ISLAMABAD: Experts at a pre-budget dialogue on Wednesday called for inclusive fiscal reforms in the upcoming budget to empower children and women that get least attention in the fiscal discourse of the country as a residual component.
The dialogue mainly focused on aligning Pakistan’s fiscal strategy with inclusive growth goals.
The speakers said with a budget deficit of over 6.8pc of the GDP and debt levels exceeding 70pc, there is an urgent need to safeguard and expand investments in health, education, nutrition and social protection. Despite tax revenues below 10pc of the GDP, they said, development for children and marginalised groups cannot be delayed.
Say urgent need to safeguard, expand investments in health, education, nutrition, social protection
The conference on ‘Strengthening Fiscal Policies for Inclusive and Sustainable Development: Advancing Child and Gender-Responsive Public Investments’ was jointly organised by the Ministry of Planning, Development and Special Initiatives, Unicef Pakistan and Sustainable Development Policy Institute (SDPI). Government officials, economists, development partners and civil society representatives took part in the dialogue and deliberated on reorienting fiscal frameworks toward equity, sustainability and inclusive growth.
Insights from Unicef’s Public Expenditure Reviews (PERs) revealed a persistent gap between policy commitments and actual social sector allocations, notably in provinces like Sindh where education spending has dropped to 1.8pc of GDP.
Anchored in the government’s Uraan Pakistan programme — specifically the equity and empowerment pillar — the speakers called for targeted fiscal shifts toward inclusive and people-centred development. Key priorities include digital literacy, green skills, education access and civic engagement, especially for women, youths, and under-served communities.
SDPI Executive Director Dr Abid Qaiyum Suleri said Pakistan was navigating two IMF programmes — the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) — with contrasting objectives. While the EFF focuses on reducing energy circular debt and raising energy prices, the RSF emphasises green technology and climate resilience.
“This paradox presents both challenges and opportunities,” Dr Suleri said, urging policymakers to integrate climate tagging into development to empower girls and adolescents through climate-aligned and inclusive fiscal planning.
Unicef Representative Sharmila Rasool emphasised the importance of human capital in a rapidly changing global environment.
“Pakistan’s Human Capital Index stands at 0.41, which suggests that only 41pc of the children will reach their full potential,” she said.
Ms Rasool called for bringing about urgent reforms in tax equity and public expenditure.
She noted that Pakistan’s regressive tax system unfairly burdened the poorest while shielding the elites. She reaffirmed Unicef’s commitment to supporting Pakistan’s efforts to align spending with equity, especially for children and adolescents.
Joint Chief Economist Ministry of Planning, speaking on behalf of Federal Minister for Planning, Dr Mohammad Ali Talpur, highlighted that under the Uraan Pakistan, fiscal policy must be a tool for social justice.
“Our fiscal decisions must uplift those most under-served — especially children, women and low-income families,” he said.
He announced the formation of a high-level technical working group to explore reallocation strategies, identify new fiscal opportunities and reinforce Pakistan’s commitment to inclusive development under the Sustainable Development Goals (SDGs).
Director Research, Planning and Development Department, Government of Balochistan, Dr Lutfur Rehman presented the province’s challenges, including dysfunctional girls’ schools and inadequate spending on children’s services.
He also stressed the need for targeted investments to uplift marginalised populations.
Representative from Khyber Pakhtunkhwa Pir Aimal highlighted the geopolitical challenges in the tribal regions and said the province prioritised social sector financing under the 5Es-based Uraan Pakistan programme.
A representative from the Sindh government shared that post-flood reconstruction efforts were being directed toward social protection, education and healthcare. The upcoming provincial budget aims to balance disaster recovery with long-term social investment.
Ayesha Javaid from the finance ministry mentioned that for the first time, Pakistan’s federal budget was gender responsive. She acknowledged the extensive institutional efforts needed to incorporate gender into fiscal planning.
Head of Nust Policy Studies Department Dr Ashfaq Hassan Khan, presenting a critical economic analysis, stressed that Pakistan’s budget deficit was driven by soaring interest payments and that the current monetary policy, particularly high interest rates, was unsustainable. He advocated for a freeze on new infrastructure projects and called for immediate privatisation of loss-making state enterprises to relieve fiscal pressure.
World Bank representative Tobias Becker presented empirical findings under the Uraan Pakistan, indicating that the poor contribute disproportionately to the tax system while benefiting less from public spending.
He noted excessive subsidies in electricity and tertiary education and urged reorientation toward primary education and equitable subsidy distribution.
SDPI Deputy Executive Director Dr Sajid Amin Javaid underscored that gender was often treated as a residual issue in financial policy. He called for a dedicated public finance and social investment framework that incorporated gender, climate and private sector financing.
“We need a body focused on mobilising social investments and modernising our industrial and regulatory systems,” he suggested.
Member of Social Sector, Planning Commission said: “Real GDP growth stands at 2.38pc and inflation has eased significantly. However, poverty remains high and 25.6 million children are still out of school.”
Ms Bashir emphasised that inclusive fiscal reform was not a cost but an investment. A high-level working group will be convened to explore reallocations and alternative financing models targeting children, youth and women, she added.
Published in Dawn, May 22nd, 2025
