Pakistan’s top business body has called on the federal government to move away from an economic stabilization model and adopt a growth focused strategy in the upcoming federal budget, arguing that sustainable economic expansion is essential to address the country’s structural challenges and revive industrial activity.
Speaking on behalf of the business community, Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said the organization’s Shadow Budget for fiscal year 2026-27 reflects the collective recommendations of Pakistan’s business, industrial, and trade sectors.
He urged policymakers to incorporate these proposals into the federal budget and prioritize economic growth over traditional revenue collection targets.
According to the FPCCI president, a growth oriented budget is necessary to tackle Pakistan’s macroeconomic difficulties, narrow the trade deficit, and support industries struggling under the weight of high energy prices and elevated borrowing costs. He emphasized that industrial expansion and export growth cannot be achieved without creating a more competitive business environment.
Sheikh identified tax reform as one of the most important structural measures needed to strengthen the economy. He said Pakistan must broaden its tax base through digitization, data integration, and targeted incentives that encourage undocumented businesses and individuals to enter the formal economy.
He added that the current approach places excessive pressure on existing taxpayers while failing to significantly expand the tax net.
The FPCCI chief further stated that the overall tax burden on industrialists can reach as high as 65 percent when all taxes are considered. He proposed reducing this burden to between 35 percent and 40 percent in the Federal Budget 2026-27 to improve international competitiveness, encourage investment, and strengthen export performance.
Senior Vice President Saquib Fayyaz Magoon said the government should use advanced data analytics to identify high-income non-filers while simplifying compliance procedures for small and medium enterprises.
He stressed that the budget should focus on economic revival through strategic investments in emerging technologies, including Artificial Intelligence and the nationwide rollout of 5G infrastructure, to help Pakistani industries compete more effectively in global markets.
Vice President and Regional Chairman Sindh, Abdul Mohamin Khan, highlighted the liquidity challenges facing businesses across the province. He said the high interest rate environment continues to restrict business activity and investment, making it difficult for manufacturers to expand operations and generate employment.
He urged the Ministry of Finance to adopt FPCCI’s recommendations aimed at reducing manufacturing costs and creating a more business friendly environment. According to him, such measures would support industrial growth, attract investment, and promote job creation across Sindh and other parts of the country.
The FPCCI leadership concluded that its Shadow Budget offers a practical roadmap for economic recovery and industrial growth.
The organization warned that failure to incorporate key business community recommendations into the final budget could deepen economic stagnation and accelerate the closure of industrial units across the country.