LAHORE: Business and industry associations delivered mixed verdicts on the federal budget, with textile exporters hailing a number of tax and financing measures as supportive of investment and export whereas poultry and plastic manufacturers voiced concerns over burdensome taxation and policy inconsistencies.
The Pakistan Textile Exporters Association (PTEA) termed the budget balanced and growth-oriented, saying it reflected the country’s economic realities and contained measures that could stimulate industrial activity and support sustainable growth.
Chairman Sohail Pasha appreciated the government’s efforts to support economic recovery, industrial expansion and ease of doing business. He said the budgetary measures would strengthen investor confidence, encourage business expansion and generate employment, while ultimately benefiting lower-income segments of society.
He said improving macroeconomic indicators, stable remittances inflows and rising economic confidence were expected to support stronger GDP growth in the coming years.
Welcoming the abolition of super tax for entities with income up to Rs500 million and the reduction in tax collection on export proceeds from 2 per cent to 1.25pc, he said the measures would provide much-needed relief to exporters, improve liquidity, encourage investment and support export-led growth.
Vice-Chairman Ameer Ahmad also welcomed the elimination of the 0.25pc Export Development Surcharge and the reduction in the markup rate under the Export Facilitation Scheme from 9pc to 4.5pc, describing the steps as timely and encouraging for the export sector.
In contrast, the Pakistan Poultry Association (PPA) expressed disappointment, saying the sector had received no meaningful fiscal relief despite repeated assurances from the government.
In a joint statement, PPA Chairman Abdul Basit, Vice-Chairman Malik Muhammad Sharif and senior members Dr F.M. Sabir and Khaleeque Arshad warned that the continuation of taxes on key inputs would raise poultry prices, discourage investment, weaken export competitiveness and threaten food security.
The association urged the government to review several taxation measures, including the Rs10 federal excise duty on every day-old chick and the 18pc sales tax on processed chicken, arguing that the latter discouraged investment in modern processing facilities and made hygienic, value-added products less affordable for consumers.
Meanwhile, All Pakistan Federation of Trade Unions (APFTU) General Secretary Khurshid Ahmad in a statement on Saturday said the budget had completely ignored the difficulties confronting labourers, poor citizens and retired employees.
He expressed concern over the imposition of taxes on milk, dairy products, cooking oil, ghee and agricultural pesticides.
Khurshid Ahmad said the salary increase announced in the budget was inadequate when compared with the prevailing rate of inflation.
Highlighting broader economic challenges, he said Pakistan needed to reduce its dependence on foreign loans to achieve sustainable economic growth.
Published in Dawn, June 14th, 2026