Anjum Nisar says excessive taxation, policy uncertainty and costly energy are hurting industry, exports and investment
Islamabad
The Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) Businessmen Panel (BMP) has urged the government to announce a business-friendly and growth-oriented Budget 2026-27, warning that additional taxation measures under the upcoming fiscal plan could further slow industrial and commercial activity in the country.
In a statement issued on Saturday, FPCCI former president and BMP Chairman Mian Anjum Nisar said the government should focus on broadening the tax base instead of imposing new taxes on the already documented sectors of the economy.
He observed that the country’s business community, exporters and manufacturers were already facing multiple challenges, including high electricity and gas tariffs, expensive financing, rupee instability, declining purchasing power and shrinking industrial demand. He said that adding more revenue measures in the IMF-backed budget would further increase the cost of doing business and discourage investment.
The BMP chairman said traders, industrialists and exporters across the country were demanding simplification of tax procedures and reduction in compliance costs. He added that a simplified taxation framework would help improve voluntary compliance and restore confidence between taxpayers and revenue authorities.
Referring to the ongoing pre-budget consultations between the government and trade bodies, Anjum Nisar welcomed the engagement process but stressed that the recommendations of chambers, associations and traders should be implemented in practical terms rather than remaining limited to meetings and assurances.
He said the business community wanted the government to introduce an “Asan Tax Scheme” for retailers, wholesalers and small businesses in the upcoming budget to facilitate documentation and reduce unnecessary interaction with tax officials.
According to BMP, the existing taxation system has become overly complex and burdensome for businesses, especially small and medium enterprises (SMEs), which are struggling to survive amid rising operational costs and weak market conditions.
Anjum Nisar said the government must shift its economic priorities from revenue collection alone to industrial revival, export growth and employment generation. He warned that repeated taxation on the same sectors would increase undocumented economic activity and reduce competitiveness of Pakistani products in international markets.
The BMP chairman recalled that in previous years as well, chambers and trade organizations had repeatedly demanded reduction in General Sales Tax (GST), rationalization of customs duties and restoration of investor confidence through policy continuity. He noted that businesses had consistently urged policymakers to avoid abrupt fiscal changes and ensure long-term economic planning.
He further stated that the private sector was the real engine of economic growth and employment generation, but frequent policy shifts and unpredictable taxation had weakened investor sentiment. He emphasized that Pakistan could not achieve sustainable growth without facilitating industries, exporters and commercial enterprises.
The BMP also expressed concern over reports suggesting the government may introduce around Rs230 billion in additional taxes in the upcoming budget.
Anjum Nisar said the same taxpayers and industries could no longer bear the entire burden of national revenue collection, adding that the authorities should instead focus on bringing untaxed sectors into the documentation net.
He called for reduction in corporate tax rates, abolition or rationalization of super tax and simplification of withholding tax procedures to improve industrial competitiveness. He added that high tax rates were encouraging capital flight and discouraging expansion in manufacturing activities.
The BMP chairman also stressed the need for immediate relief to exporters. He supported the demand of the wider business community and FPCCI for restoration of the Final Tax Regime (FTR) for exporters, arguing that its withdrawal had increased documentation burdens, audit complications and compliance difficulties for the export sector.
He said exporters required faster refund payments, uninterrupted energy supply and easier access to raw materials to compete effectively in regional and global markets.
Referring to the latest FPCCI proposals submitted to the Ministry of Finance, Anjum Nisar said the business community had recommended reducing the maximum income tax rate for salaried individuals from 35 percent to 30 percent, abolishing the nine percent surcharge and increasing the non-taxable annual income threshold to Rs1.2 million.
The BMP chairman maintained that economic stability could not be achieved through excessive taxation alone. He said sustainable growth required industrial expansion, export diversification, improved productivity and stronger investor confidence.
He urged the government to ensure that the upcoming federal budget provides incentives for industrialization, export-led growth and SME development instead of imposing additional financial pressure on the productive sectors of the economy.
Anjum Nisar concluded that the business community was ready to cooperate with the government in economic reforms, provided policymaking remained consultative, transparent and growth-oriented.
