Analysis: Budget battles: who really shapes Pakistan's finances?

Pakistan's budget process is a complex tug-of-war shaped by various interest groups, with business organizations and industry bodies actively lobbying policymakers. These groups commission reports, host events, and engage with political leaders and bureaucrats in both formal and private settings to voice their concerns and policy preferences. This mirrors global practices, where influential figures like Elon Musk and Timothy Mellon have significantly backed political campaigns.

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THE budget is a tug-of-war between different interest groups. On one hand, there is explicit lobbying by various business groups and industry bodies that commission reports, hold events and engage policymakers.

However, the distribution of power in Pakistan's policy-making landscape is far less orderly than in many other countries. While wealth is concentrated in relatively few hands, no single player holds absolute power. Instead, policy outcomes emerge from fragmented pressures and negotiations among various stakeholders. This dynamic creates an environment where influence is dispersed, and decisions result from a complex interplay of competing interests.

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These organisations, explains Dr Ali Hasanain, associate professor of economics at Lums, also meet political party leaders and bureaucrats in both formal and private settings to communicate their concerns and policy preferences.

Dr. Ali Hasanain, an associate professor of economics at Lums, explains that this system is broadly in line with how businesses operate globally, where lobbying and formal influence are common. Yet, the Pakistani context presents a unique challenge due to its fragmented power structure. Understanding these dynamics is crucial to comprehending how the country's finances are truly shaped.

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But while lobbying and formal influence exist everywhere, the distribution of power is far less orderly in Pakistan. No single player is all-powerful, though wealth is concentrated in relatively few hands. Instead, policy becomes outcome of fragmented pressure fro