Pakistan’s fast-growing population is a major challenge for the country’s economic future, even though the federal budget for 2026-27 includes some positive financial measures, said Hyderabad-based Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Executive Committee member Adeel Siddiqui.
While commenting on the budget, Adeel Siddiqui appreciated several relief steps, such as a 3% to 6% cut in income tax for salaried people, a reduction in super tax for large companies from 10% to 8%, and the removal of super tax for small and medium enterprises (SMEs).
However, he said that the rapidly increasing population is a serious threat to long-term economic growth.
He questioned whether the economy can grow while the population keeps increasing so quickly, and answered that it cannot.
Mr Siddiqui said Pakistan’s exports have stayed almost the same, between $25 billion and $30 billion, for the past 20 years. He added that exports as a share of GDP have fallen from 16% to 10%, foreign direct investment has dropped by 44%, unemployment is 7.1%, leaving 5.9 million people jobless, and the savings rate has fallen to a 30-year low of 6%.
He said it is unacceptable that exports have not grown in two decades and stressed the need to expand into sectors like IT, pharmaceuticals, engineering, and high-value agriculture. He also called for a national export emergency.
He added that millions of people enter the job market every year, but the economy is not creating enough jobs for them. He said the relief measures are good but not enough to support the growing workforce.
Adeel Siddiqui also said that economic stability is being treated as an end goal instead of a base for real structural reform. He warned that stability without real growth is a “false hope” for a country whose population is increasing faster than its economy.
He urged the government to treat population planning as a national security issue, warning that economic progress could be undone if population growth is not controlled.
