FPCCI Demands Reinstatement of Final Tax Regime (FTR) For Exporters in Federal Budget 2026-27 Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce
& Industry (FPCCI), has officially, as part of the Proposals for the Federal Budget 2026-2027,
strongly advocated for the immediate reinstatement of the Final Tax Regime (FTR) for exporters
of goods. The apex trade body, in its budget proposals, has highlighted that the previous
withdrawal of the FTR has severely hindered the export sector by introducing critical operational
bottlenecks, he added.

Mr. Atif Ikram Sheikh stressed that the removal of FTR has resulted in a significant increase in
compliance requirements and extensive documentation for exporters. Furthermore, this policy
shift has fueled tax-related uncertainty and led to a rise in audit harassment – diminishing the
ease of doing business for the export community.

Mr. Atif Ikram Sheikh emphasized the urgent need for a policy reversal to protect the nation's
economic recovery. The withdrawal of the Final Tax Regime for exporters of goods has
significantly increased compliance requirements, documentation, tax-related uncertainty and
excessive audit hassles. It is our core recommendation to reinstate the FTR for exporters as a full
and final liability to reduce this severe compliance burden on the business community, he added.

Mr. Atif Ikram Sheikh elaborated on the collaborative approach the government must take to
ensure long-term stability. While we strongly recommend reinstating the Final Tax Regime to
ease the burden on our exporters, we also propose that the exact rate of the final tax may be
negotiated with relevant stakeholders to ensure a balanced, growth-oriented revenue model, he
added.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, has explained the necessity for incentivization and
flexibility in taxation frameworks for exporters. To truly boost our national exports, an option
may be provided in the upcoming budget to individual exporters to opt between the Final Tax
Regime (FTR) or the Normal Tax Regime (NTR) as per their convenience and business
structure, he added.

Mr. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, stated that FPCCI
maintains that facilitating exporters through rationalized tax frameworks like the FTR is vital for
sustainable economic growth, expanding the export base and improving Pakistan's international
competitiveness in the export markets vis-a-vis regional competitors.

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