Pakistan’s business leaders community has offered a mixed reaction to the federal budget for FY2026-27, welcoming selected tax relief measures while criticizing the absence of a clear roadmap for industrial growth, exports and investment.
Leaders from major trade and industry bodies said the Rs18.7 trillion budget contains some positive steps but falls short of addressing structural challenges facing the economy. Concerns were particularly raised over high energy costs, weak investment levels and the lack of incentives for export-oriented industries.
Federation of Pakistan Chambers of Commerce and Industry President Atif Ikram Sheikh acknowledged measures such as reductions in super tax, relief for salaried individuals, and incentives for exporters and the IT sector. However, he expressed concern over low investment and savings rates, rising urban poverty and ambitious revenue targets that could increase inflationary pressures.
Business leaders also voiced disappointment over the government’s decision not to restore the Final Tax Regime (FTR) for exporters. Several industry representatives argued that the move would have provided greater certainty and ease of doing business for export-oriented sectors.
The Overseas Investors Chamber of Commerce and Industry described the budget as a serious effort under difficult economic circumstances but noted that the tax burden continues to fall heavily on compliant businesses and salaried individuals. Investors also highlighted concerns over delayed tax refunds and the continuation of minimum and alternate minimum taxes.
Meanwhile, representatives of the Karachi Chamber of Commerce and Industry and the SITE Association of Industry said the budget lacks meaningful incentives to boost exports and manufacturing competitiveness. They argued that unresolved issues such as high electricity tariffs, circular debt and taxation challenges continue to hinder industrial growth.
The Lahore Chamber of Commerce and Industry termed the budget balanced for economic stabilisation but stressed the need for stronger support for industry, agriculture, small businesses and the IT sector.
Overall, business leaders agreed that while the budget offers limited relief, it does not provide a comprehensive vision for long-term economic growth and export expansion.