4 days ago
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FPCCI offers mixed reaction to budget
ISLAMABAD/ KARACHI: The business community of the country has expressed mixed reaction on the presentation of federal budget 2025-26, saying the government has totally ignored women entrepreneurs.
Speaking at a press conference simultaneously from Islamabad, Karachi and Lahore, the leaders of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) led by Atif Ikram Sheikh, president FPPCI, overall appreciated the budget proposals, adding that the business community will give detailed reaction within the next few days after detailed study and review of the budget.
The FPPCI representatives said the government in some sectors has provided relief and some sectors have all together been ignored. Education sector is also ignored; exporters should also be facilitated as an estimated Rs2,500 billion deficit is on the cards and enhancing exports is one of the key factors to bridge the budget deficit. They said that the government has also ignored infrastructure of Information Technology (IT) sector. They; however, appreciated the government for taxing e-commerce, saying this is a good tax which will help promote local online business platforms.
FPCCI President Sheikh, while welcoming the budgetary proposals, said that the government has accepted most of the demands and proposals regarding relief in taxation, measures to reduce power prices, and taking steps for ease of doing business.
He; however, said that since the inflation has reached the lowest level; therefore, the government should have announced reducing the rate of interest from the present 12 percent level to 6-7 percent, which is critical to boost commercial activities.
A reduction in super tax from one per cent to 0.5 per cent is also appreciable, as well as, a reduction in stamp duty on property from four per cent to 2.5 per cent.
Sheikh said that earmarking a hefty Rs716 billion budget for the Benazir Income Support Programme (BISP) to help around 10 million households of marginalised segment will help reduce the poverty level. He said that the FPPCI in the next few days will give a detailed reaction after detailed consultation with all the sectors.
The FPPCI president said that the government needs to pay serious attention towards Large Scale Manufacturing (LSM) which has shown negative growth during out going financial year, saying that the growth of LSM will increase employment. He said that overall business community was satisfied with the performance of national economy with 2.7 percent GDP growth and setting 4.2 percent GDP growth target was also not overestimated. Pakistan has made a good economic recovery, the government needs to take this recovery towards stability, he added.
This year, the size of the economy has exceeded $400 billion for the first time, which is a great achievement, said Sheikh. However, he was of the view that in addition to these achievements, more work is needed on many sectors of the economy. The major decline in large-scale manufacturing in the current fiscal year is worrying, he expressed.
Patron-in-Chief United Business Group (UBG) SM Tanveer also hailed the overall budgetary proposals from providing relief to construction industry to GDP growth but flayed the government for imposing 18 percent tax on solar panels.
He said that the imposition of 18 percent tax on solar panels will increase the cost of solar electricity which at present was the only cheap source of energy for all the segments of the economy from household to industry.
Tanveer also appreciated the government for creation of the National Seed Development and Regulatory Authority (NSDRA), saying in other countries there are a maximum five to six dozens seed supplying and developing companies but in Pakistan at least 1,200 fake seed companies are operating. The government must take stern action against such fake companies which will help increase agriculture productivity.
He also hailed the government for reducing taxes on the salaried class and asked the government to immediate reduce interest rate from 12 percent to 6-7 percent.
The UBG leader stressed the need for a five-year industrial policy and reduction in electricity prices, saying a long-term industrial policy is the only way to put the country on the path of economic development.
Copyright Business Recorder, 2025
