Key economic sectors: LCCI disappointed over lack of broader relief
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) acknowledged some positive measures in the federal budget 2025-26 but expressed disappointment over the lack of broader relief for key economic sectors. Following Finance Minister Muhammad Aurangzeb's budget speech, LCCI leaders addressed a press conference, stating that while some of their demands were met, the business community had expected more substantial measures to stimulate investment, industrial growth, small and medium enterprises (SMEs), and agriculture.
LCCI President Mian Abuzar Shad, along with Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, and former office-bearers including Mian Anjum Nisar, Muhammad Ali Mian, Ali Hussam Asghar, and Faheem ur Rehman Sahgal, shared their insights on the budget. A significant number of executive committee members and market association presidents also attended the conference.
Mian Abuzar Shad noted that the increased defense budget was a necessary step but argued that further increments should have been made. He welcomed relief measures for the construction sector and appreciated the higher allocation for water projects, though he stressed that even greater funding was needed given current challenges.
Shad highlighted that the LCCI's long-standing demand for simplified tax returns had been accepted. While the super tax was reduced, he described the cut as insignificant and called for a more substantial reduction. He praised the imposition of taxes on the Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA), a measure the LCCI had long advocated for.
He pointed out that 45 government entities are being merged or abolished but emphasized the need to divest all loss-making public sector enterprises. Other positive steps included tax reductions in the real estate sector, lower duties on property transactions, the establishment of Daanish University, and measures to curb sales tax evasion. Bringing e-commerce into the tax net was also commended as a good decision.
However, Shad expressed concern over under-invoicing and Afghan trade, which he claimed had cost Pakistan Rs. 25 trillion over the past 15 years. He also criticized unchecked petroleum imports for negatively impacting foreign exchange reserves. Additionally, he voiced disappointment over the absence of specific measures to support SMEs.
Engineer Khalid Usman criticized the budget for lacking a clear growth strategy. He stated that the minor tax relief for salaried individuals was insufficient and called for further reductions. He also argued that taxing petroleum products would discourage the documented economy.
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
7 hours ago
- Business Recorder
Budget: LCCI urges govt to address concerns ahead of NA debate
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to ensure immediate consultations with the business community to address concerns before the National Assembly finalizes the Federal Budget 2025-26 where it would be presented for debate. LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry in a statement called for urgent revisions. They said the government had projected GDP growth at 4.2 percent, up from the current 2.7 percent. They said the budget overlooks systemic flaws. 'The growth estimates ignore ground realities, high cost of doing business, energy shortages and inconsistent policies which are affecting industrial output. The government must revisit these projections to avoid fiscal shortfalls later.' The LCCI office-bearers said the debt servicing still consumed a significant portion of the budget. Mian Abuzar Shad said that IMF-mandated subsidy cuts which would hurt low-income groups. They added that the imposition of an 18 percent sales tax on imported solar panels has also drawn sharp criticism. They said that this move contradicts Pakistan's renewable energy goals, adding 'instead of taxing solar imports, the government should incentivize local manufacturing and R&D to reduce dependence on foreign products.' Mian Abuzar Shad said that below the mark allocations would affect health, education and infrastructure. They said that slashing social sector funding for short-term fiscal adjustments will harm long-term growth. The government must rebalance allocations to prioritize human development. The LCCI office-bearers said the business community was not satisfied on taxation measures at all and there was a dire need of revisiting these with the consultation of stakeholders. They said the growth and tax targets should be revised realistically, focusing on expanding the tax net rather than overburdening existing taxpayers. They demanded of the government to prioritize the construction of new water reservoirs and the modernization of existing infrastructure to address Pakistan's worsening water crisis. With agriculture contributing nearly 24 percent of GDP and employing over 37 percent of the labour force sustainable water management is essential for economic stability. They said the work on Diamer-Bhasha Dam and other pending projects must be fast-tracked to enhance water storage capacity. They also suggested that the Public-private partnerships (PPP) should be encouraged to secure funding and expertise. LCCI President Mian Abuzar Shad said the funds should be allocated for rainwater harvesting in arid zones to reduce reliance on groundwater, adding the industries should be incentivize to adopt water recycling plants. LCCI President warned that without urgent action, Pakistan could face severe water shortages by 2030, crippling agriculture and industry. He said 'we need immediate investments in reservoirs, or our economy will suffer irreversible damage.' The LCCI office-bearers said the funds for health and education should be increased to ensure sustainable development. They said the government should formulate a clear solar policy with consistent subsidies, net-metering rules, and support for local manufacturing. The LCCI President urged the government to engage in immediate dialogue with stakeholders to address those concerns. He said the budget in its current form would risk stifling economic recovery. 'We hope the government will act on our recommendations before it's too late,' he added. He said that as the National Assembly prepares to debate the budget, policymakers must incorporate feedback from the business community to ensure a balanced and growth-oriented fiscal plan. Meanwhile, Sardar Usman Ghani, Central Chairman of Pakistan Hardware Merchants Association, while rejecting the decision to impose 18 percent tax on imported solar panels in the current budget, has warned that the move would cause irreparable damage to the process of generating cheap and clean electricity. He said it was incomprehensible that the Minister of Finance had given that explanation to protect the local solar panel manufacturing industry, firstly the solar panel industry was almost non-existent in Pakistan and secondly, that move would significantly increase the prices of solar panels. The protection to industry at the cost of public is not a step towards right direction. Public representatives in the government and opposition parties do not allow it to be approved in the budget. Copyright Business Recorder, 2025
Business Recorder
8 hours ago
- Business Recorder
Absence of Certificate of Origin: Hundreds of trucks stuck at Torkham border
ISLAMABAD: Over 750 vehicles, loaded with soapstone and coal, imported from Afghanistan have been stuck at Torkham border since last two weeks due to absence of Certificate of Origin, importers and officials confirmed. The officials deployed at Torkham said that they had been directed by the high-ups not to clear the soapstone and coal loaded vehicles, imported from across the border without presenting a Certificate of Origin (COO). The purpose of the imposition of fresh regulations implemented recently was to confirm the real origin of the product, they added. Torkham border reopened after 27 days The unexpected restriction introduced by the custom officials multiplied miseries of importers and other trading communities, clearing agents and transporters said. All Torkham Clearing Agents Association President Mujib Shinwari, while talking to Business Recorder on telephone, said that without their consultation, the Customs Department made mandatory the production of Certificate of Origin. He said that it was considered an obligatory document during the clearing process of soapstone and coal, imported from Afghanistan, stating it was unfair to the business community. The Customs officials should clear the stranded hundreds of loaded trucks through the previous clearing system and then convene a joint meeting of all the stakeholders to sort out an acceptable solution for the matter, he suggested. Shinwari, however, disclosed that earlier Customs Department had exempted vehicles from presenting such document. He maintained that sudden implementation of the new regulation will certainly suffer Pak-Afghan bilateral trading. Because of the new Customs rule, drivers of the stranded vehicles were badly suffering and most of them spent Eid-ul-Azha on the Landi-Kotal–Torkham road, he pointed out. Copyright Business Recorder, 2025
Express Tribune
8 hours ago
- Express Tribune
Traders seek urgent consultation
Listen to article The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to ensure immediate consultations with the business community to address their concerns before the National Assembly finalises the federal budget for 2025-26. LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry in a statement called for urgent revisions. They said that the government has projected GDP growth at 4.2%, up from the current 2.7%, adding that the budget overlooks systemic flaws. The growth estimates ignore ground realities, high cost of doing business, energy shortages and inconsistent policies which are affecting industrial output. "The government must revisit these projections to avoid fiscal shortfalls later." The LCCI office-bearers said that debt servicing still consumes a significant portion of the budget and the IMF-mandated subsidy cuts will hurt low-income groups. The imposition of 18% sales tax on imported solar panels has also drawn sharp criticism. They said that this move contradicts Pakistan's renewable energy goals. Instead of taxing solar imports, the government should incentivise local manufacturing and R&D activity to reduce dependence on foreign products. Mian Abuzar Shad said that below-the-mark allocations would affect healthcare, education and infrastructure. Apart from that, slashing social sector funding for short-term fiscal adjustments will harm long-term growth. "The government must rebalance allocations to prioritise human development."
