Karachi, June 14, 2025 – The Union of Small and Medium Enterprises (UNISAME) has expressed deep disappointment over the recently announced fiscal budget 2025-26, stating that the government’s measures are discouraging, regressive, and detrimental to the growth of the SME sector.
Zulfikar Thaver, President of UNISAME, criticized the budget for several anti-SME initiatives, particularly the imposition of 18% sales tax on solar panels. He emphasized that many small and medium enterprises had turned to solar energy to mitigate rising electricity costs. “Instead of encouraging self-reliance through renewable energy, the government has made it unaffordable by taxing solar systems,” he lamented.
Thaver further highlighted the increase in income tax on profits from bank deposits and savings—from 15% to 20%—as another illogical step. “Such measures will only discourage savings and reduce financial security for small business owners,” he said, adding that the policy reflects a lack of understanding of economic fundamentals.
Another major concern raised by UNISAME was the withdrawal of tax exemptions for e-commerce, freelancers, and online startups. “This shortsighted move punishes young, self-employed entrepreneurs who are already struggling with job scarcity and a stagnant industrial sector,” Thaver remarked. He noted that the budget ignores the challenges of self-employment in a weak job market, further marginalizing the digital economy.
Thaver expressed frustration that the government had previously pledged reforms to support the SME sector. “We were promised facilitation, incentives, and support. Instead, this budget has shattered the expectations of millions of SME stakeholders,” he said.
He reiterated that promoting the SME sector is not an act of charity but a responsibility of the state. Given its significant contribution to employment, GDP, exports, and poverty alleviation, the SME sector deserves priority treatment, not neglect.
Calling for immediate corrective measures, Thaver urged Prime Minister Shehbaz Sharif to convene a meeting with his special assistant Haroon Akhtar, the CEO of SMEDA, and the UNISAME Council. The goal would be to discuss strategic interventions for SME marketing, technical support, and technological modernization.
The UNISAME Council stressed that without urgent action, the lost momentum caused by this budget will hurt economic progress, and such neglect of the SME sector will be a costly mistake for the nation.