Chemical-makers for structural reforms, forward-looking policy framework
LAHORE: The Pakistan Chemical Manufacturers Association (PCMA) has formally expressed its observations regarding the Federal Budget 2025–26, calling for comprehensive structural reforms and a forward-looking policy framework to strengthen Pakistan's $16 billion chemical sector — a critical enabler of all manufacturing sectors including textiles, leather, Plastics, pharmaceuticals, agriculture, and packaging.
PCMA Chairman Haroon Ali Khan, in his official statement, acknowledged positive budgetary like intent to revive Large Scale Manufacturing, taking notice of misuse of tax incentives for FATA/PATA which is adversely hurting the legitimate manufacturing business and elimination of ACDs.
However, he expressed deep concern over the lack of a coherent policy framework for the chemical industry, noting that high energy costs, prolonged GST refund delays, excessive tax burden on legitimate businesses, frequent changes in Policy and misuse of Export Facilitating Scheme are deeply hurting the domestic industries providing raw materials to export oriented sectors such as textile chemicals, leather chemicals & resins etc. These impediments continue to hinder growth.
He further added that elimination of 5th Schedule by 2030 will have devastating effects on local industry, especially Chemicals.
The Association also expressed alarm over the expanded discretionary powers granted to the Federal Board of Revenue (FBR).
Haroon Ali Khan emphasized the need for digital reforms and taxpayer facilitation before enforcing coercive measures that could harm business confidence.
PCMA also urges the government to officially designate the chemical industry as a 'strategic sector', ensuring preferential land and utility access, and to establish a one-window platform for environmental and licensing approvals, along with national R&D support programmes.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
36 minutes ago
- Business Recorder
PM for early finalisation of Pakistan's EVs Policy 2025
LAHORE: Prime Minister Shehbaz Sharif Saturday asked the authorities concerned for early finalization of the 'Electric Vehicles Policy 2025' in consultation with all stakeholders. He passed these directions while chairing a meeting, here on Saturday, to review the policy framework for the promotion of the electric vehicles industry in the country. During the meeting, the draft of the Electric Vehicles Policy 2025 was discussed in detail. Emphasized the need for swift and priority-based measures to promote electric motorcycles, scooters, three-wheelers, cars, and buses across Pakistan, the premier underscored the importance of setting up charging infrastructure, including charging stations and battery swapping facilities, to support the expansion of the EV ecosystem. He also called for facilitating enhancement of the local manufacturing capacity of electric two-wheelers and three-wheelers. Sindh govt allocates budget for EV taxis, scooters in FY26 The meeting was attended by Federal Ministers Rana Tanveer Hussain, Ahad Khan Cheema, Muhammad Aurangzeb, Special Assistant to PM Haroon Akhtar Khan and concerned senior government officials. Copyright Business Recorder, 2025
Business Recorder
40 minutes ago
- Business Recorder
PM for early finalisation of Pakistan's EV Policy 2025
LAHORE: Prime Minister Shehbaz Sharif Saturday asked the authorities concerned for early finalization of the 'Electric Vehicles Policy 2025' in consultation with all stakeholders. He passed these directions while chairing a meeting, here on Saturday, to review the policy framework for the promotion of the electric vehicles industry in the country. During the meeting, the draft of the Electric Vehicles Policy 2025 was discussed in detail. Emphasized the need for swift and priority-based measures to promote electric motorcycles, scooters, three-wheelers, cars, and buses across Pakistan, the premier underscored the importance of setting up charging infrastructure, including charging stations and battery swapping facilities, to support the expansion of the EV ecosystem. He also called for facilitating enhancement of the local manufacturing capacity of electric two-wheelers and three-wheelers. Sindh govt allocates budget for EV taxis, scooters in FY26 The meeting was attended by Federal Ministers Rana Tanveer Hussain, Ahad Khan Cheema, Muhammad Aurangzeb, Special Assistant to PM Haroon Akhtar Khan and concerned senior government officials. Copyright Business Recorder, 2025
Business Recorder
2 hours ago
- Business Recorder
ABC lauds govt for presenting ‘forward-looking' budget
KARACHI: The American Business Council of Pakistan (ABC) appreciates the Government's efforts in presenting a forward-looking Federal Budget 2025-26, which includes encouraging steps to support industrial growth, streamline tariffs, promote digital enforcement, and foster an export-led economy. Measures such as the rationalization of customs duties, removal of certain regulatory barriers, and enhanced digitalization to curb tax evasion reflect the Government's commitment to facilitating business and improving economic efficiency. ABC is also grateful to the Government of Pakistan for accommodating some of our proposals in the Budget 2025-26, which we believe will contribute to further stability in the economy and reinforce investor confidence. While these initiatives are promising, ABC believes that certain aspects of the budget may merit further review to fully unlock Pakistan's investment potential. The increase in withholding taxes on services, the introduction of new levies on digital transactions, and the phased withdrawal of incentives for renewable energy could create unintended cost pressures for businesses, particularly in emerging and sustainability-focused sectors. Additionally, the proposed levy of Rs. 2.5 per litre on petrol and diesel will likely place an additional cost burden on both businesses and consumers, potentially fuelling inflation and increasing operational expenses. Furthermore, while we acknowledge the tax relief extended to the salaried class, we feel that this relief is still limited and should be further enhanced to genuinely ease the financial burden on the working population. We also respectfully suggest that the reduction in super tax should be more substantial and applied across the corporate sector, rather than being restricted to businesses within a specific turnover range. Broadening this relief would better support Pakistan's ambition to encourage investment and growth across industries. ABC remains committed to working alongside the Government of Pakistan to support policies that drive sustainable, inclusive economic development and foster a competitive business environment. Copyright Business Recorder, 2025
