Interview with Mr. Khalid Tawab, former Senior Vice President, FPCCI
PAGE: Tell me something about yourself, please.
Khalid Tawab: I have been serving the business community of Pakistan for several decades in various leadership and institutional capacities, with a particular focus on international trade, economic diplomacy, and private-sector development. Currently, I am leading international coordination and engagement for FPCCI, working closely with regional and global economic forums, chambers of commerce, and development institutions. My work revolves around strengthening Pakistan’s trade relations, promoting investment, and facilitating private-sector participation in regional and global markets.
PAGE: Having listened to the Budget Speech, what is your take on the role of the IMF?
Khalid Tawab: The IMF has undoubtedly played an important role in helping Pakistan achieve macroeconomic stability and avoid a serious economic crisis. Fiscal discipline and economic stabilization were necessary to restore confidence in the economy.
However, stabilization should not become an end in itself. The next phase must focus on economic growth, industrial expansion, exports, investment, and employment generation. While the budget reflects IMF-driven fiscal prudence, the business community had expected stronger incentives for exports, industrial development, and investment promotion.
There is a need to reduce the cost of doing business by lowering electricity tariffs, gas prices, petroleum levies, and financing costs. Such measures would enhance industrial competitiveness and support sustainable economic growth.
PAGE: What is your perspective on the FBR revenue collection target for the fiscal year 2026-27?
Khalid Tawab: The revenue target is ambitious and reflects the government’s commitment to improving fiscal performance. However, achieving this target will require broadening the tax base rather than placing additional pressure on existing taxpayers and the documented sector.
The government should focus on documentation of the economy, digitalization of tax administration, and bringing untaxed sectors into the tax net. At the same time, incentives should be introduced for exporters, industrial investors, SMEs, and value-added sectors to encourage economic activity and increase tax revenues naturally through growth.
The business community was also expecting further reduction in interest rates, expansion of export refinance schemes, and easier access to financing for productive sectors.
PAGE: How would you comment on PSDP allocation and the current state of infrastructure?
Khalid Tawab: The PSDP allocation is an important instrument for economic development, employment generation, and investor confidence. However, Pakistan still requires substantial investment in infrastructure, including roads, railways, ports, logistics, industrial zones, energy transmission systems, and water resources.
Infrastructure development plays a vital role in attracting both domestic and foreign investment. Investors require efficient transport systems, reliable energy supplies, modern industrial facilities, and effective public services.
The government should also strengthen one-window facilitation mechanisms for investors to reduce bureaucratic hurdles and the improve ease of doing business. In addition, special security arrangements and investor protection measures should be enhanced to encourage long-term investment in Pakistan.
PAGE: What is your standpoint on Employment, Inflation, Population Growth and Interest Rate in Pakistan?
Khalid Tawab: These issues are closely interconnected. The recent decline in inflation and interest rates is a positive development and should support business activity and investment.
However, Pakistan’s rapidly growing population places increasing pressure on employment opportunities and public services. To absorb new entrants into the labour market, Pakistan requires sustained economic growth of at least 6 to 7 percent annually.
Special attention must be given to SMEs, which are the backbone of the economy and a major source of employment. Dedicated financing facilities, easier access to credit, technical assistance, and capacity-building programs should be provided to SMEs.
Similarly, overseas Pakistanis make a vital contribution to the economy through remittances. Additional incentives should be introduced to encourage remittances through formal banking channels and to attract overseas Pakistanis to invest in productive sectors of the economy.
Further reductions in interest rates, expansion of export refinance facilities, rationalization of energy tariffs, and reduction in petroleum and diesel prices would significantly improve Pakistan’s competitiveness, promote exports, attract investment, and generate employment opportunities.
The budget reflects continued efforts towards economic stabilization, which is encouraging. However, Pakistan must now transition from stabilization to growth. Greater emphasis should be placed on exports, industrialization, investment promotion, SME development, infrastructure expansion, remittance promotion, and reduction in the cost of doing business.
The success of the budget will ultimately be judged by its ability to increase investment, expand exports, create employment opportunities, and improve the living standards of the people. The private sector remains ready to work closely with the government in achieving these national economic objectives.