According to Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh, Pakistan requires a pro-business, investment-amiable, and growth-oriented fiscal policy framework, especially now that the economy is stabilizing and showing potential for growth.

“The budget misses the measures needed to enable the business community to materialise the vision of the prime minister to achieve export-led growth,” said Sheikh. He also cautioned that granting sweeping discretionary powers to tax authorities could harm business and investor confidence,potentially leading to harassment,corruption,and maladministration.

Korangi Association of Trade and Industry (KATI) President Junaid Naqi described the budget as disappointing, stating that it does not meet the needs of the industrial sector or the expectations of the general public.

Business leaders seek review of harsh proposals to boost investor confidence

Mr. Naqi stated that the government is again relying on the industrial sector for fiscal adjustments without providing sufficient relief to offset rising production costs. he added that the budget, fails to restore investor confidence or offer meaningful support to the business community.

Site association of Industry (SAI) President Ahmed azeem Alvi noted that the budget does not adequately address digitalization and one-window reforms, which are essential for improving the ease of doing business.

He also criticized the government for not broadening the tax net while setting ambitious revenue targets.

Energy Costs a Major concern

“Therefore, the government must revisit these projections to avoid fiscal shortfalls later,”

Islamabad Chamber of Commerce and Industry (ICCI) president Nasir Mansoor Qureshi strongly criticized the federal budget 2025-26, calling it anti-industry and heavily favoring Independent Power Producers (IPPs).

He voiced significant concern over the imposition of an 18 per cent sales tax on solar panel imports, viewing it as a deliberate action to benefit IPPs at the expense of industry and clean energy adoption.

Qureshi highlighted that the country currently has surplus electricity that could be provided to industries at concessional rates.

Lahore Chamber of Commerce and Industry President Mian Abuzar Shad urged the government to instantly consult wiht the business community to address their concerns before the National Assembly passes the federal budget.

He mentioned that the government has projected GDP growth at 4.2pc, an increase from the current 2.7pc, but the budget overlooks systemic flaws. Shad believes that the growth estimates disregard the realities on the ground, including the high cost of doing business, energy shortages, and inconsistent policies that are affecting industrial output.

“Therefore,the government must revisit these projections to avoid fiscal shortfalls later,” he stressed.

The Pakistan chemical manufacturers Association (PCMA) has advocated for comprehensive structural reforms and a forward-looking policy framework to strengthen Pakistan’s $16 billion chemical sector, which is a critical enabler of various manufacturing sectors, including textiles, leather, plastics, pharmaceuticals, agriculture, and packaging.