Pakistan’s leading business body has urged the federal government to move away from a stabilization-driven economic approach and adopt a growth-oriented strategy in the upcoming Budget 2026-27, arguing that long-term economic recovery depends on industrial expansion, export growth, and a more competitive business environment.
Speaking on behalf of the business community, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said the organization’s “Shadow Budget” for 2026-27 represents consolidated proposals from industry, trade, and business stakeholders across the country. He called for these recommendations to be reflected in the federal budget, with a stronger focus on economic expansion rather than narrow revenue targets.
He said Pakistan’s current economic challenges require policies that stimulate production, reduce structural imbalances, and improve export competitiveness. According to him, high energy costs and elevated borrowing rates continue to restrict industrial activity and investment.
The FPCCI chief emphasized that meaningful tax reform is essential for economic stability. He stressed the need to expand the tax base through digitization, improved data integration, and incentives that encourage undocumented sectors to enter the formal economy, rather than increasing pressure on existing taxpayers.
He added that the effective tax burden on industry remains significantly high and suggested it be rationalized to improve competitiveness, attract investment, and support export-led growth.
FPCCI Senior Vice President Saquib Fayyaz Magoon said the government should use advanced data systems to identify high-income non-filers while simplifying tax compliance for small and medium enterprises. He added that the upcoming budget should prioritize investment in emerging technologies, including artificial intelligence and 5G infrastructure, to strengthen industrial productivity and global competitiveness.
FPCCI Vice President and Regional Chairman Sindh Abdul Mohamin Khan highlighted liquidity constraints faced by businesses, noting that high interest rates are limiting expansion and job creation. He called for policy measures aimed at reducing production costs and improving the overall business climate.
The FPCCI leadership said its Shadow Budget provides a comprehensive roadmap for economic revival, industrial growth, and export expansion. It warned that failure to incorporate key recommendations could deepen economic slowdown and further strain industrial operations across the country.
