Business leaders propose tax cuts, export growth plan and five-year economic roadmap
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday presented its proposed “Shadow Budget” for the fiscal year 2026-27 at the FPCCI Regional Office in Lahore, describing it as Pakistan’s first comprehensive alternative economic policy framework.
Speaking at the ceremony, FPCCI President Atif Ikram Sheikh said that, for the first time in the country’s history, the FPCCI had presented a Shadow Federal Budget, Shadow Economic Survey, Tax Policy and Administration Reforms, and a Five-Year Development Plan together.
He said the chamber was not merely offering recommendations but presenting a complete, integrated and practical alternative economic roadmap aimed at determining Pakistan’s future economic direction. He termed the initiative unique because it combines industrial relief measures, a clear investment promotion strategy, a comprehensive export growth roadmap, economic documentation reforms and a revenue-neutral growth model within a single framework.
The event was attended by FPCCI Regional Chairman and Vice President Zaki Aijaz, United Business Group patron-in-chief SM Tanveer, Economic Policy and Business Development Think Tank patron-in-chief Bashir Jan Mohammad, Chairman Dr Gohar Ejaz and CEO Ahmed Nawaz Sukhera.
FPCCI officials and representatives of the Economic Policy and Business Development Think Tank proposed a five-year plan targeting GDP growth of 8.5 percent and an increase in per capita income from $1,900 to $2,900.
Dr Gohar Ejaz stated that the recommendations have been prepared to assist the government in achieving economic growth and improving GDP performance. He noted that Pakistan’s exports currently stand at around $30 billion, terming it unfortunate given the country’s economic potential. He said the proposals were purely in the national interest and aimed at strengthening the economy.
He further appreciated the role of the Prime Minister and the Field Marshal in improving Pakistan’s global image and said that, if the recommendations are implemented, Pakistan could move towards a zero trade deficit within five years. Dr Ejaz described the shadow budget document as highly beneficial for economic planning and reform.
He said that they would submit their documents and suggestions to the authorities.
“You need to hear the concerns of the private sector for better economy,” he said, adding that they needed inclusive policy.
SM Tanveer said that the shadow budget includes a comprehensive five-year economic development plan designed to support sustainable growth. Ahmad Nawaz Sukhera also stressed that the private sector will expand under these proposals, leading to increased employment opportunities, and urged the authorities to facilitate ease of doing business.
Ahmad Nawaz Sukhera said that housing incentives and related concessions identified in the shadow budget would help strengthen the domestic economy and generate new employment opportunities in the housing sector. He added that a five-year economic development plan has been presented in the shadow budget aimed at long-term stability and growth.
The proposed framework also suggested reducing the General Sales Tax from 18 percent to 15 percent and lowering the maximum tax rate for salaried individuals from 35 percent to 20 percent. Other proposals included reducing interest rates and the dollar value, eliminating the country’s $40 billion trade deficit, and increasing exports from the current $30 billion to $80 billion over the next few years.
Addressing taxation reforms, the speakers stressed the need to expand the tax net, saying the number of taxpayers should increase from three million to 100 million to ensure sustainable economic growth. They also recommended a 35 percent increase in the defence budget and a 23 percent rise in pensions.
The business leaders further called for simplifying the tax return form and reducing it to a single-page document to encourage greater public participation in the tax system.
