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.
\nThe dialogue on \u2018Strengthening Fiscal Policies for Inclusive and Sustainable Development: Advancing Child and Gender-Responsive Public Investments\u2019 was jointly organized by the Ministry of Planning, Development and Special Initiatives, UNICEF Pakistan and Sustainable Development Policy Institute (SDPI), said a press release.
\nThe dialogue, which mainly focused on aligning Pakistan\u2019s fiscal strategy with inclusive growth goals, brought together key government officials, economists, development partners, and civil society representatives to deliberate on reorienting fiscal frameworks toward equity, sustainability, and inclusive growth.
\nThe speakers said that with a budget deficit of over 6.8% of the GDP and debt levels exceeding 70%, there is an urgent need to safeguard and expand investments in health, education, nutrition, and social protection. Despite tax revenues below 10% of the GDP, they said, development for children and marginalized groups cannot be delayed.
\nInsights from UNICEF\u2019s 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 1.8% of GDP.
\nAnchored in the government\u2019s Uraan Pakistan programme \u2014 specifically the equity and empowerment pillar \u2014 the speakers called for targeted fiscal shifts toward inclusive and people-centered development. Key priorities include digital literacy, green skills, education access, and civic engagement, especially for women, youths, and underserved communities.
\nThe dialogue featured one plenary and three panel sessions with open-floor participation, exploring both the challenges and solutions in aligning public finance with inclusive development goals.
\nIn his opening remarks, Dr Abid Qaiyum Suleri, the Executive Director of SDPI, said that Pakistan is navigating two IMF programmes \u2014 the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) \u2014 with contrasting objectives. While the EFF focuses on reducing energy circular debt and raising energy prices, the RSF emphasizes green technology and climate resilience. \u201cThis paradox presents both challenges and opportunities,\u201d Dr Suleri said and urged the policymakers to integrate climate tagging into development to empower girls and adolescents through climate-aligned and inclusive fiscal planning.
\nSharmila Rasool, the UNICEF Representative in Pakistan, emphasized the importance of human capital in a rapidly changing global environment. \u201cPakistan\u2019s Human Capital Index stands at 0.41, which suggests that only 41% of children will reach their full potential,\u201d she said. Ms Rasool called for bringing about urgent reforms in tax equity and public expenditure. She noted that Pakistan\u2019s regressive tax system unfairly burdens the poorest while shielding the elites. She reaffirmed the UNICEF\u2019s commitment to supporting Pakistan\u2019s efforts to align spending with equity, especially for children and adolescents.
\nDelivering the keynote address on behalf of the Federal Minister for Planning, Dr. Muhammad Ali Talpur, Joint Chief Economist, Ministry of Planning, highlighted that under the Uraan Pakistan, fiscal policy must be a tool for social justice. \u201cOur fiscal decisions must uplift those most underserved \u2014 especially children, women, and low-income families,\u201d he said, adding that fiscal policy is also social policy, he announced the formation of a high-level technical working group to explore reallocation strategies, identify new fiscal opportunities, and reinforce Pakistan\u2019s commitment to inclusive development under the Sustainable Development Goals (SDGs).
\nThe first panel discussion titled Social Sector Public Investments in Provinces \u2014 Challenges & Opportunities was initiated by Dr Lutf ur Rehman, the Director Research, Planning and Development Department, Government of Balochistan. He presented the province\u2019s challenges, including dysfunctional girls\u2019 schools and inadequate spending on children\u2019s services. He also stressed the need for targeted investments to uplift marginalized populations.
\nPir Aimal, the Assistant Chief IDS, Planning and Development Department, Government of Khyber Pakhtunkhwa, highlighting the geopolitical challenges in the tribal regions, said that the province prioritizes social sector financing under the 5Es-based Uraan Pakistan programme. A representative from the Sindh Government shared that post-flood reconstruction efforts are being directed toward social protection, education, and healthcare. The upcoming provincial budget aims to balance disaster recovery with long-term social investment.
\nAyesha Javaid from the Ministry of Finance, chaired the second panel on Understanding the Macroeconomic Context \u2014 Tax Justice, Debt Management, and Fiscal Constraints. She mentioned that for the first time, Pakistan\u2019s federal budget is gender responsive. She acknowledged the extensive institutional efforts needed to incorporate gender into fiscal planning.
\nDr Ashfaq Hassan Khan, the Head of the NUST Policy Studies Department, presenting a critical economic analysis, stressed that Pakistan\u2019s budget deficit is driven by soaring interest payments and that the current monetary policy, particularly high interest rates, is unsustainable. He advocated for a freeze on new infrastructure projects and called for immediate privatization of loss-making state enterprises to relieve fiscal pressure.
\nTobias Becker, the World Bank representative, 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.
\nDuring the third session on Leveraging Alternative Financing Opportunities to Create Fiscal Space for Public Services, Dr Sajid Amin Javaid, the Deputy Executive Director at SDPI, underscored that gender is often treated as a residual issue in financial policy. He called for a dedicated public finance and social investment framework that incorporates gender, climate, and private sector financing. \u201cWe need a body focused on mobilizing social investments and modernizing our industrial and regulatory systems,\u201d he suggested.
\nSaima Bashir, the Member of Social Sector, Planning Commission, thanked the participants for their robust engagement and highlighted key macroeconomic indicators showing recovery. \u201cReal GDP growth stands at 2.38%, and inflation has eased significantly. However, poverty remains high, and 25.6 million children are still out of school,\u201d she noted. Ms Bashir emphasized that inclusive fiscal reform is not a cost but an investment. A high-level working group will be convened to explore reallocations and alternative financing models targeting children, youths, and women.<\/p>\n","protected":false},"excerpt":{"rendered":"
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 on \u2018Strengthening Fiscal Policies for Inclusive and Sustainable Development: Advancing Child and Gender-Responsive Public Investments\u2019 was jointly […]<\/p>\n","protected":false},"author":2,"featured_media":479933,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-479912","post","type-post","status-publish","format-standard","has-post-thumbnail","category-national"],"yoast_head":"\n