HYDERABAD: A rapidly growing population remains a fundamental challenge to Pakistan’s economic prospects despite positive fiscal measures announced in the federal budget for 2026-27, said Hyderabad-based Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Executive Committee member Adeel Siddiqui on Saturday.

Commenting on the federal budget, Mr Siddiqui welcomed several relief measures, including a 3pc to 6pc reduction in income tax for the salaried class, a cut in super tax for large companies from 10pc to 8pc, and its complete abolition for small and medium enterprises (SMEs).

However, he argued that the country’s rapidly increasing population posed a serious threat to long-term economic growth.

He questioned whether the economy could prosper while the population continued to expand at a fast pace, adding that the answer was “an emphatic no”.

Mr Siddiqui said Pakistan’s exports had remained stagnant in the $25bn-$30bn range for the past two decades. He noted that the exports-to-GDP ratio had declined from 16pc to 10pc, foreign direct investment (FDI) had fallen by 44pc, unemployment stood at 7.1pc, leaving 5.9 million people without jobs, and the savings rate had dropped to a 30-year low of 6pc.

Describing two decades of stagnant exports as unacceptable, he stressed the need to diversify beyond textiles into information technology, pharmaceuticals, engineering and high-value agriculture. He called for the declaration of a national export emergency.

Mr Siddiqui said millions of Pakistanis entered the job market every year, but the economy was failing to generate enough opportunities. While acknowledging that the relief measures were positive, he maintained they were insufficient to absorb the expanding workforce.

He said macroeconomic stability was being celebrated as an end in itself rather than serving as a platform for structural transformation. Stability without sustainable growth, he warned, would prove to be a “false dawn” for a country whose population was growing faster than its economy.

Mr Siddiqui urged the government to treat population planning as a national security issue, cautioning that economic gains would be eroded by population growth if the matter was not addressed urgently.

Published in Dawn, June 21st, 2026