LAHORE – The business community welcomed the overall federal budget for FY-2025- 26 but criticised the government for neglecting women, Special Economic Zones [expansion of industry and economic reforms in it.
The business community stated that many important sectors and areas have been either completely neglected or partially ignored.
“The women and their development have been completely neglected,” said FPCCI Vice President Qurrat ul Ain.
Ms Qurrat ul Ain said overall, the budget is reasonable, but many areas have been neglected.
Seh said, “The women are more important than 50 per cent of the whole population. And the authorities should have announced some policies to empower them so that they could play an important role in the national economy,”.
She stated that the Special Economic Zones have also not been given much importance in this budget.
She contended that “Expansion of industry is important for economic growth and development,”. Similarly, she was of the view that the salaried class received some relief, and the pension was increased, but the business community should have been supported.
“Unless you support the private sector, you cannot achieve the target and economic goals. Their inclusion is very important,”. She went on to say that the removal of the FED on real estate is a better step, and the middle-class citizens would feel some relief.
Thus, she said, an 18% tax on the import of solar panels is not good.
“In my view, the budget, overall, is good, but women should have been given some importance. The CM of Punjab is a woman. Women are also playing important roles in every sector, so the policies should have been announced for them,”.
Muhammad Ahmad, President of the Gold & Gems Art Promotion Council of Pakistan and Chairman
Lahore Division Sarafa & Jewellers Association/Owner M/s Gold & Gold Craft, said that there is no relief for the ordinary citizens.
“There is no relief for the common people in this budget. There is no relief in the petrol sector while the rich and elite class have been favoured in this budget,”.
On other hand, Lahore Chamber of Commerce and Industry in a press conference following the federal budget 2025-26 speech, stated that while several of their demands were accepted, the business community had expected broader relief measures to boost investment, industrial growth, small and medium enterprises (SMEs) and the agricultural sector.
LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former presidents Mian Anjum Nisar and Muhammad Ali Mian, retired Senior Vice President Ali Hussam Asghar, and former Vice President Faheem ur Rehman Sahgal addressed the conference. A large number of executive committee members and market association presidents were also present.
LCCI President Mian Abuzar Shad stated that the increase in the defence budget was a necessary step, but further increments should have been made. He welcomed the relief for the construction sector. He appreciated the higher allocation for water projects, although he emphasised that even more funds should have been allocated, given the current challenges.
He said that the LCCI’s long-standing demand for simplified tax returns had been accepted. While the super tax was reduced, the cut was insignificant and should have been more substantial. Shad praised the imposition of taxes on FATA/PATA, a measure the LCCI had long advocated for.
He mentioned that 45 government entities are being merged or abolished, but stressed 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 a good decision.
He stated that under-invoicing and Afghan trade have cost Pakistan Rs. 25 trillion over the past 15 years, while unchecked petroleum imports are negatively impacting the country’s foreign exchange reserves. He expressed disappointment over the lack of measures for small and medium-sized enterprises (SMEs).
Engineer Khalid Usman criticised the budget for lacking a clear growth strategy. He said the minor tax relief for salaried individuals was insufficient and called for further reductions. Taxing petroleum products, he argued, would discourage the documented economy.
Shahid Nazir Chaudhry stated that policies formulated without stakeholder consultation cannot be beneficial.
Mian Anjum Nisar said the budget should have focused on promoting investment. The allocations for industry, agriculture and water resources were too low and the cost of doing business remains unaddressed. The existing tax base is being overburdened.
Muhammad Ali Mian pointed out that local taxes were not reduced, electricity prices remained unchanged and questioned why the FBR’s discretionary powers were increased amid automation.
Faheem ur Rehman Sahgal emphasised that the budget should have been prepared in consultation with the trader community.
