Karachi, April 22, 2026 — Khurram Ijaz, General Secretary of Businessmen Panel Progressive (BMPP) and former Vice President of Federation of Pakistan Chambers of Commerce and Industry, has called on policymakers to present a production-friendly federal budget for 2026–27, emphasizing the need to revive industrial growth and enhance exports.
Commenting on the initiation of the budget exercise by the Tax Policy Office under the Ministry of Finance, Khurram Ijaz described the separation of tax policy formulation from the Federal Board of Revenue as a “positive and much-needed reform.”
“This is the first time an independent Tax Policy Office is formulating tax proposals purely from a policy perspective, and this step can significantly improve transparency and governance,” he said. “I appreciate the efforts of Director General Tax Policy Office, Najeeb Memon, for actively engaging with the business community.”
Ijaz stressed that the upcoming budget must prioritize strengthening Pakistan’s industrial base. “We need a clear shift towards policies that promote local production and exports. Without reducing the cost of doing business, industrial revival will remain a challenge,” he stated.
Highlighting the challenges faced by the business community, he noted, “High energy tariffs, elevated interest rates, and excessive taxation are squeezing industries. If these issues are not addressed, Pakistan risks further deindustrialization.”
He warned that a growing number of foreign companies are relocating their operations, while local firms are increasingly registering abroad. “This trend is alarming. It not only reduces domestic investment but also leads to job losses. The government must act decisively to restore investor confidence,” he added.
Khurram Ijaz underscored the importance of broadening the tax base to ease pressure on existing taxpayers. “Instead of overburdening compliant businesses, the government should leverage available data to bring untaxed sectors into the net,” he said.
He also called for alignment of the National Tariff Policy with ground realities. “Our industries are already facing high input costs. Tariff structures must be rationalized to support domestic manufacturers,” he emphasized.
To improve tax compliance, Ijaz proposed introducing a simplified tax regime for traders and reviewing the minimum tax system for low-margin sectors. “Ease of compliance is key. A simplified system will encourage more businesses to formalize,” he noted.
Furthermore, he urged authorities to ensure transparency in tax exemptions. “There should be strict monitoring of exemptions granted through SROs to prevent misuse and ensure fairness,” he said.
Ijaz also highlighted concerns regarding tax enforcement practices. “Law-abiding taxpayers should not be subjected to repeated audits and unnecessary actions. Enforcement must be balanced and facilitative, not punitive,” he remarked.
Expressing optimism, Khurram Ijaz concluded, “The Tax Policy Office has an opportunity to introduce meaningful reforms. By simplifying income tax, sales tax, and federal excise laws, eliminating distortions, and closing loopholes, the government can create a competitive and growth-oriented economic environment.”
He emphasized the importance of consultation, adding, “The business community must be taken on board to identify practical challenges and ensure that policy reforms are effective, sustainable, and aligned with economic realities.”