KARACHI: As the government prepares to unveil the federal budget for FY 2025-26, Pakistan’s top business and industry leaders have called for a transparent, stable, and pro-growth fiscal policy. They have urged the government to avoid any surprise measures and instead focus on broad-based tax reforms, relief for the salaried class, and meaningful support for exports and industrial growth.
The Pakistan Business Council (PBC), Overseas Investors Chamber of Commerce and Industry (OICCI), Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Karachi Chamber of Commerce and Industry (KCCI), and Site Association of Industry (SAI) have all presented detailed budget recommendations focused on long-term economic stability.
PBC Calls for Export Growth and Tax Rationalisation
Pakistan Business Council CEO Ehsan Malik emphasized the need to improve the external account and fiscal balance while also strengthening national defence through enhanced export revenues. The PBC has proposed fiscal incentives to accelerate exports and encourage local sourcing of inputs.
Malik called for the gradual withdrawal of the super tax, reduction in corporate tax rates, and elimination of multiple taxation on inter-corporate dividends. He also recommended a cut in the 18% general sales tax (GST), arguing that it promotes tax evasion and hampers business growth. According to him, an improved tax-to-GDP ratio should stem from expanding economic activity, not increased tax pressure on compliant taxpayers.
OICCI Urges Expansion of the Tax Net and Policy Consistency
M. Abdul Aleem, CEO and Secretary General of OICCI, advocated for bold reforms to widen the tax base by ensuring effective tax collection from the trade, services, and agriculture sectors. He echoed calls for tax relief for salaried individuals and a phased reduction in corporate and sales taxes over the next few years.
He urged the government to ensure transparency in policymaking, avoid abrupt changes, and engage all stakeholders in designing tax reforms that are consistent and sustainable.
FPCCI Focuses on Export-Oriented Growth
Saquib Fayyaz Magoon, Senior Vice-President of FPCCI, stressed the importance of strengthening Pakistan’s export sector, especially as the country looks to reduce its reliance on IMF support in the future. He cautioned against imposing new taxes on export-driven industries, warning that such moves would raise production costs and reduce global competitiveness.
KCCI Demands Fair and Transparent Tax Regime
Jawed Bilwani, President of KCCI, highlighted the need for a transparent and predictable tax system that broadens the tax base, removes distortions, and distributes the tax burden more fairly. He underscored the importance of simplifying procedures and eliminating inefficiencies to promote sustained industrial growth.
Bilwani also pointed to the challenges faced by the SME sector, including limited access to finance and a complex regulatory environment. He called for focused policy support to unlock the sector’s potential in employment and innovation.
SAI Advocates Pro-Industry Reforms and GST Harmonisation
Ahmed Azeem Alvi, President of the Site Association of Industry, urged the government to prioritize industrialization and export competitiveness. He recommended capping business income tax at 25%, abolishing the super tax, and rolling back recent controversial amendments to the Income Tax Ordinance.
Alvi also called for harmonisation of GST across provinces, reduction of the standard sales tax rate to 15%, abolition of the additional sales tax, and faster refunds to reduce informality and improve liquidity.
He further urged the government to eliminate tax exemptions in FATA/PATA, reform welfare programs, adopt digital governance systems, and implement a one-window operational framework. Additionally, he demanded the restoration of zero-rated status for export sectors and essential goods to ease the burden on manufacturers and exporters.
