Business leaders have described the Federal Budget 2026-27 as balanced, noting that it includes several positive steps aimed at economic stabilisation and improved documentation.
However, they stressed that stronger emphasis is still required on investment-driven growth, industrial expansion and job creation.
Reacting to the budget, LCCI office-bearers appreciated multiple relief measures introduced by the government. At the same time, they pointed out that several key sectors essential for long-term economic progress still require greater policy attention.
They observed that the budget does not present a detailed strategy for the development of industry, small and medium enterprises (SMEs), agriculture and the information technology sector — all of which play a vital role in exports, investment and employment generation.
It also raised concerns that the Rs109 billion allocation for dams and water reservoirs may fall short of addressing Pakistan’s growing water security challenges.
LCCI representatives further highlighted the ambitious tax collection target of Rs15.264 trillion, stressing that revenue goals should be achieved by expanding the tax base rather than increasing pressure on existing taxpayers. They also recommended that alongside social protection programmes, more investment should be directed toward skills development and human capital to ensure sustainable employment opportunities.
They welcomed measures such as the abolition of Section 7E, reduction in property transaction taxes, lower tax rates for salaried individuals, cuts in export-related levies, and steps to improve tax administration and documentation.
Faheem Ur Rehman Saigol said the budget reflects the government’s commitment to fiscal discipline and macroeconomic stability. He noted that initiatives to facilitate taxpayers, improve documentation and encourage investment are positive developments. Still, he stressed the need for stronger policies to accelerate industrial output, boost exports and drive economic growth.
He added that Pakistan requires a more robust development framework focused on industrialisation, infrastructure, water security, technological advancement and value-added exports, along with stronger incentives for productive sectors to attract investment and generate employment.
Tanveer Ahmad Sheikh emphasised that broadening the tax net is essential for sustainable fiscal management. While appreciating efforts to improve compliance through digitisation and faceless systems, he said undocumented sectors must be integrated into the formal economy to ensure fairness in the taxation system.
Khurram Lodhi noted that although the budget contains encouraging elements, a more comprehensive package for SMEs and industry would have further strengthened business confidence. He called for lower energy costs, easier access to financing and regulatory reforms to enhance Pakistan’s competitiveness in regional and global markets.
The LCCI leadership expressed overall appreciation for the government’s efforts to maintain macroeconomic stability and hoped that the concerns raised by the business community would be considered during parliamentary deliberations on the budget.
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