The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has offered a cautiously optimistic response to the federal budget 2025-26, praising several key measures while urging the government to address overlooked areas in the coming months.
Speaking at a simultaneous press conference held in Islamabad, Karachi, and Lahore, FPCCI President Atif Ikram Sheikh said the business community generally appreciates the budget proposals, describing them as a step in the right direction. However, he emphasized that a more detailed analysis would follow after a comprehensive sector-wise review.
Sheikh acknowledged that the government had incorporated many of FPCCI’s recommendations, particularly those related to reducing electricity costs, easing business regulations, and rationalizing taxation. “The budget reflects an intention to support business activity,” he said, “but some areas such as the education and IT sectors remain neglected.”
He applauded the taxation of e-commerce platforms, terming it a “smart move” that would formalize digital trade and strengthen local online businesses. On the fiscal front, he appreciated the government’s allocation of Rs716 billion to the Benazir Income Support Programme (BISP), which he said would benefit nearly 10 million households and help reduce poverty.
However, Sheikh was critical of the high interest rate, arguing that with inflation now under control, the State Bank should cut the policy rate from 12% to around 6–7% to spur investment. He also supported the government’s decision to reduce the super tax and stamp duty on property transactions, calling these measures “positive for real estate and investor sentiment.”
Highlighting economic progress, Sheikh pointed out that Pakistan’s economy has now crossed the $400 billion mark for the first time. While he lauded this milestone, he stressed that the decline in large-scale manufacturing (LSM) was a cause for concern and required urgent intervention. “The budget must address industrial stagnation to prevent job losses and ensure inclusive growth,” he said.
Patron-in-Chief of United Business Group (UBG), SM Tanveer, also praised the overall direction of the budget, especially relief for the construction sector and steps toward GDP expansion. However, he strongly criticized the 18% tax on solar panels, warning that it would make clean energy less affordable and slow progress in energy reform.
Tanveer supported the creation of the National Seed Development and Regulatory Authority (NSDRA) to tackle the proliferation of fake seed companies, calling it a “crucial step for boosting agricultural productivity.”
Both FPCCI and UBG leaders reiterated the urgent need for a five-year industrial policy, lower electricity tariffs, and further reforms to sustain momentum. As the FPCCI continues to evaluate the budget, its final verdict will reflect the collective voice of Pakistan’s business sector.