The Federation of Pakistan Chambers of Commerce and Industry has welcomed signs of macroeconomic stabilization in the Federal Budget 2026-27, while urging a stronger shift toward sustained industrial growth and investment-led expansion.
In a post-budget statement, the federation noted that the presentation of the Rs. 18.7 trillion budget reflects policy continuity and improving economic indicators, including moderate GDP growth, a narrowing fiscal deficit, and reduced debt servicing pressures.
The business body stated that the economy has shown progress toward stability, but emphasized that the current phase must now transition from stabilization to long-term growth, productivity enhancement, and export expansion.
The federation acknowledged several government measures aligned with its recommendations, including relief for salaried individuals, adjustments in super tax slabs, removal of certain levies on international travel and foreign assets, and incentives for IT exports and construction-related transactions.
A simplified taxation scheme for small retailers was also noted as a positive step toward formalization of the retail sector.
Despite these measures, concerns were raised over the Federal Board of Revenue’s increased revenue target of Rs. 15.2 trillion and a higher petroleum levy target. The federation warned that aggressive revenue collection goals could add inflationary pressure, particularly in an environment of already elevated energy costs.
It further highlighted gaps in the budget framework, including the absence of key proposals aimed at restoring export tax regimes, reducing corporate tax burdens, eliminating certain minimum tax structures, and broadening digital economic reforms.
The federation stated that investment and savings ratios remain subdued, while rising urban poverty reflects ongoing structural challenges in the economy.
A final assessment of the budget will be issued after detailed consultation with member chambers and trade bodies over the coming days, following a comprehensive review of the Finance Bill.
The business community reiterated its commitment to working with policymakers to support a more competitive, export-driven, and sustainable economic framework.