KARACHI: Leaders from the trade and industry sector on Thursday expressed that the federal budget has failed to restore investor confidence or provide significant support to the business community. They called on the government to remove harsh and anti-business taxation measures from the Finance Bill before it is passed in parliament.

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh stated the country needs a pro-business, investment-friendly and growth-oriented fiscal policy framework as the economy has stabilised and is poised for growth.

“The budget misses the measures needed to enable the business community to materialise the vision of the prime minister to achieve export-led growth,” he said, adding that sweeping discretionary authorities given to the taxmen would be detrimental to business and investor confidence and will give rise to harassment, corruption and maladministration.

Korangi Association of Trade and Industry (KATI) President Junaid Naqi termed the budget disappointing as it neither meets the requirements of the industrial sector nor fulfils the expectations of the general public.

Business leaders seek review of harsh proposals to boost investor confidence

Mr Naqi said the government has once again placed the weight of fiscal adjustments on the industrial sector without offering sufficient relief to offset rising costs of production. The overall budget fails to restore investor confidence or provide meaningful support to the business community, he added.

Site Association of Industry (SAI) President Ahmed Azeem Alvi said the budget does not adequately address digitalisation and one-window reforms—measures crucial for improving the ease of doing business.

He criticised the government for not expanding the tax net while setting ambitious revenue targets.

Industry needs cheaper energy

Islamabad Chamber of Commerce and Industry (ICCI) President Nasir Mansoor Qureshi strongly criticised the federal budget 2025-26, labelling it as anti-industry and heavily skewed in favour of Independent Power Producers (IPPs).

He expressed deep concern over the imposition of an 18 per cent sales tax on solar panel imports, calling it a deliberate move to benefit IPPs at the expense of industry and clean energy adoption.

He pointed out that the country currently has surplus electricity, which could have been provided to industries at concessional rates.

Lahore Chamber of Commerce and Industry President Mian Abuzar Shad urged the government to hold immediate consultations with the business community to address concerns before the National Assembly passes the federal budget after debate.

He said the government has projected GDP growth at 4.2pc, up from the current 2.7pc, and the budget overlooks systemic flaws. The growth estimates ignore ground realities, high cost of doing business, energy shortages and inconsistent policies, which are affecting industrial output.

“Therefore, the government must revisit these projections to avoid fiscal shortfalls later,” he stressed.

Meanwhile, the Pakistan Chemical Manufacturers Association (PCMA) has called for comprehensive structural reforms and a forward-looking policy framework to strengthen Pakistan’s $16bn chemical sector — a critical enabler of all manufacturing sectors, including textiles, leather, plastics, pharmaceuticals, agriculture, and packaging.

Published in Dawn, June 13th, 2025