Rising population threatens economic gains, says FPCCI official

HYDERABAD: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Executive Committee member Adeel Siddiqui has said Pakistan’s fast-rising population remains a major obstacle to long-term economic progress, despite what he described as positive relief steps in the federal budget for 2026-27.

Commenting on the budget on Saturday, the Hyderabad-based FPCCI representative welcomed a number of fiscal measures. He referred to a 3pc to 6pc reduction in income tax for salaried individuals, a reduction in super tax for large companies from 10pc to 8pc, and the complete removal of super tax for small and medium enterprises.

While appreciating those steps, Siddiqui said population growth continued to cast a shadow over the country’s economic future. He questioned whether the economy could move towards prosperity while the population kept expanding rapidly, and said the answer was an emphatic no.

Concerns over exports, jobs and savings

Siddiqui said Pakistan’s exports had remained stuck between $25 billion and $30 billion for around two decades. He noted that the exports-to-GDP ratio had fallen from 16pc to 10pc, while foreign direct investment had declined by 44pc.

He also pointed to labour market and savings pressures, saying unemployment was at 7.1pc and 5.9 million people were without jobs. According to him, the national savings rate had dropped to a 30-year low of 6pc.

Calling the prolonged stagnation in exports unacceptable, Siddiqui said the country needed to broaden its export base beyond textiles. He identified information technology, pharmaceuticals, engineering and high-value agriculture as sectors that should receive greater focus, and called for a national export emergency.

Call for structural reform

Siddiqui said millions of Pakistanis enter the job market each year, but the economy is not creating enough employment opportunities to absorb them. In his view, the relief measures announced in the budget were helpful but not enough to meet the needs of a growing workforce.

He said macroeconomic stability was being celebrated as an objective in itself, rather than being used as a base for deeper structural change. He warned that stability without durable growth would amount to a false dawn for a country where population growth is outpacing economic expansion.

He urged the government to handle population planning as an issue of national security, saying any economic improvement would be undermined by continued population growth if the matter was not addressed without delay.