The Federation of Pakistan Chambers of Commerce and Industry has welcomed signs of economic stabilization reflected in the Federal Budget 2026-27, while urging a stronger policy shift toward sustained industrial expansion and investment-led growth.
In its post-budget remarks, the federation said the Rs. 18.7 trillion budget signals continuity in economic policy, alongside improving indicators such as moderate GDP growth, a reduced fiscal deficit, and easing debt servicing pressures.
It noted that while the economy is moving toward stability, the next phase must prioritize productivity gains, export expansion, and long-term growth rather than short-term stabilization alone.
The federation acknowledged several government measures aligned with its earlier proposals, including tax relief for salaried individuals, revisions in super tax structures, removal of certain levies on foreign assets and international travel, and incentives supporting IT exports and construction activity.
It also termed the simplified tax regime for small retailers a positive step toward formalizing the retail sector.
However, concerns were expressed over the Federal Board of Revenue’s enhanced revenue target of Rs. 15.2 trillion and an increased petroleum levy target. The federation warned that such aggressive revenue assumptions could add inflationary pressure, especially amid already high energy costs.
It further pointed out missing structural reforms in the budget, including proposals related to export tax regimes, corporate tax reduction, withdrawal of minimum tax mechanisms, and broader digital economy reforms.
The federation also highlighted that investment and savings ratios remain weak, while rising urban poverty reflects deeper structural challenges in the economy.
A final assessment of the budget will be released after consultations with member chambers and trade associations following a detailed review of the Finance Bill.
The business community reiterated its commitment to continued engagement with policymakers to promote a more competitive, export-oriented, and sustainable economic framework.
