Business Community Demands Transition from Stabilization to Growth Model in the Upcoming Budget Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President of The Federation of Pakistan Chambers of
Commerce & Industry (FPCCI), has stressed that FPCCI’s comprehensive Shadow Budget for
the fiscal year 2026-27 represents the collective wisdom of the business, industry and trade
community of Pakistan.

Mr. Atif Ikram Sheikh highlighted that FPCCI strongly urges the federal government to
incorporate its policy recommendations to ensure the upcoming budget is fundamentally driven
by the objective of economic growth rather than customary revenue growth and stabilization
emphasis.

Mr. Atif Ikram Sheikh maintained that adopting a growth-centric approach is the only viable path
to mitigating Pakistan’s macroeconomic challenges, reducing the critical expansion in the trade
deficit, and providing much-needed relief to an industrial sector currently crippled by surging
energy costs and high interest rates.

FPCCI Chief explained that broadening the tax base remains the most critical structural reform
required to shift Pakistan away from its chronic reliance on inflationary indirect taxes and the
over-taxation of existing corporate sectors. A sustainable expansion of the tax net must move
beyond coercive enforcement against registered taxpayers; and, instead focus on bringing new
taxpayers into the formal economy through digitization, data integration, and targeted incentives,
he added.

Mr. Atif Ikram Sheikh pointed out that total taxes on industrialists are up to 65% when all types
of taxes are accounted for – which shall be brought down in the range of 35-40% in the
upcoming Federal Budget 2026-27 to enable us to compete in the international market; and,
contribute aggressively to the national economy and export earnings.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, elaborated that by leveraging advanced data analytics
to identify high-income non-filers and simplifying, streamlining compliance procedures for small
and medium enterprises (SMEs), the government can distribute the fiscal burden more equitably.
Mr. Saquib Fayyaz Magoon highlighted that the federal budget must shift its focus from
aggressive revenue collection to facilitating a broad-based economic revival. He stated that
sustainable growth requires a modern approach, specifically through strategic national
investments in emerging technologies; including, Artificial Intelligence and the widespread
rollout of 5G technology to make Pakistani industries globally competitive.

Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, pointed out that regional
industries are facing an unprecedented liquidity constraint. He expressed that a high-interest-rate
environment severely restricts the operational capacity of businesses across the province. He
urged the Ministry of Finance to incorporate FPCCI’s recommendations; which outline
actionable steps to reduce manufacturing costs and create a genuinely business-friendly
environment that can spur industrialization and job creation across Sindh and the rest of the
country as well.

The FPCCI leadership unanimously concluded that the proposals outlined in the Shadow Budget
offer a pragmatic, industry-backed roadmap. They warned that ignoring these stakeholder-driven
recommendations in the finalized Federal Budget would risk further economic stagnation and
industrial closures.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General