Page 4 - CMA Journal (May-June 2025)

President's

Message

Dear Members and Readers,
It is a privilege to present the May–June 2025 issue of Chartered
Management Accountant, centered around the theme “Challenges
to Business Sustainability in Pakistan.”
President's
Message
Pakistan’s economy continues to tread a delicate path toward recovery. The real GDP growth for
FY2024–25 is projected at 2.68%—a slight improvement over the previous year, yet still below
the targeted 3.6%. The overall size of the economy stands at US$411 billion, with per capita
income estimated at US$1,824. While some macroeconomic indicators show signs of stability,
such as easing inflation and a lowered policy rate, persistent structural challenges—rising
business costs, regulatory inconsistencies, and subdued investor confidence—continue to
impede sustainable growth.
The Federal Budget 2025–26 reflects the government’s intent to restore fiscal prudence and
enhance revenue collection. However, its inability to meaningfully expand the tax base remains
a key concern. Major sectors such as retail, real estate, and agriculture still contribute
disproportionately less. Though the FBR’s tax-to-GDP ratio has improved to 11.3% (up from
9.8% last year), achieving the ambitious target of 18% by FY2027–28 will demand bold
structural reforms and broader participation across all sectors of the economy.
A particularly debated proposal in the budget was the FBR’s authority to arrest individuals
suspected of tax fraud. The widespread pushback from the business community prompted the
government to amend this provision and introduce necessary checks and balances—a
testament to the power of dialogue and the importance of inclusive policymaking.
ICMA Pakistan took a proactive and dynamic role in the budget process. We live-streamed the
Federal Budget Speech on June 10, followed just an hour later by a panel of experts presenting
a live analysis. Our comprehensive Budget Commentary 2025–26 was released the very next
day, offering timely insights for members and stakeholders. That same day, ICMA hosted the
National Budget Conference 2025 in Islamabad, featuring renowned economists, senior
policymakers, and professionals for critical discussions and policy feedback.
In recognition of our institutional expertise, I was honored to be nominated to the FBR’s Budget
Anomaly Committee (Technical). This reflects ICMA Pakistan’s growing stature as a trusted
contributor in the national economic discourse.
Furthermore, I am pleased to share that ICMA’s Research and Publications Committee
submitted a set of practical and forward-looking tax proposals to the FBR, seven of which were
adopted by the government. This is a proud moment for the Institute and demonstrates the
value of data-driven, professional advocacy in shaping public policy.
As always, ICMA Pakistan remains committed to promoting financial discipline, transparency,
and economic sustainability across the public and private sectors. I invite our members to
continue supporting this mission with active engagement and thought leadership.

Warm regards,
Ghulam Mustafa Qazi, FCMA
President ICMA

2 ICMA’s Chartered Management Accountant, May-June 2025