KARACHI: Leading business representatives have urged the federal government to avoid repeating economic policies that they say have hurt business activity, reduced exports, discouraged investment, and weakened the competitiveness of local industries.
Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Rehan Hanif called on policymakers to incorporate the business community’s recommendations into the upcoming Federal Budget 2026-27. In a joint statement, they said that several fiscal measures introduced over the past two years had failed to deliver the desired results and should serve as a lesson for future policymaking.
The business leaders stated that KCCI had raised concerns about many of these policies before they were implemented, but those warnings were overlooked. As a result, they argued, businesses faced significant challenges, while exports, investment, employment opportunities, and government revenues were negatively affected.
They particularly criticized the government’s decision under the Finance Act 2024 to shift exporters from the Final Tax Regime (FTR) to the Normal Tax Regime (NTR). According to them, the move focused on short-term revenue collection without considering its long-term impact on exports and overall economic growth. They demanded the immediate restoration of the Final Tax Regime for exporters at a one percent tax rate.
The business community also expressed concern over the withdrawal of Export Facilitation Scheme benefits for yarn and fabric. They said the scheme had played a key role in improving the competitiveness of Pakistan’s export sector and warned that removing these incentives could further impact export performance.
Meanwhile, the Lasbela Chamber of Commerce and Industry (LCCI) has also submitted a series of recommendations for the upcoming budget. The chamber urged the government to introduce wide-ranging reforms in taxation, energy, trade, and investment policies to support industrial growth, attract local and foreign investment, and improve business confidence.
According to LCCI, Pakistan’s economic recovery depends on creating a stable, competitive, and predictable business environment. The chamber noted that its proposals are aligned with the government’s stated goals of promoting industrialisation and creating employment opportunities.
LCCI further recommended the introduction of a multi-year macroeconomic stabilisation framework with clear targets for controlling inflation and reducing the fiscal deficit. It also called for a transparent and consistent foreign exchange policy to strengthen investor confidence and ensure long-term economic stability.
