Pakistan federal budget business impact
The Pakistan Business Forum (PBF) has strongly criticized the newly announced federal budget, calling it disconnected from ground realities. According to PBF Chief Organiser Ahmed Jawad, the agriculture sector—the backbone of Pakistan’s economy—has once again been overlooked.
“This budget ignores farmers and fails to deliver on the Prime Minister’s promises for agricultural growth,” Jawad said. “Without strong policy support, expecting 4.5% growth in agriculture is unrealistic.”
Super Tax Cut Fails to Impress
Business owners had hoped for significant relief in the form of a reduced super tax. Instead, they received only a minimal adjustment.
“This tiny reduction is like adding a drop of water to a dry well,” Jawad remarked. He emphasized that without meaningful tax cuts, businesses will continue to face financial strain.
High Tax Target Could Fuel Inflation
Jawad also warned about the government’s aggressive tax collection target of Rs14,131 billion.
“This tax goal, without expanding the tax base, will increase pressure on current taxpayers and raise inflation,” he said. PBF criticized the absence of a clear strategy to bring untaxed sectors into the net.
Some Regulatory Reforms
Despite broad concerns, the PBF acknowledged some positive steps. The reduction in regulatory duty from 90% to 50% was labeled a “constructive move” that could lower production costs for many industries.
Real Estate Sector Gains Some Relief
The government’s decision to cut Federal Excise Duty and withholding tax in the real estate sector was also welcomed. These steps may help revive property transactions and attract investors.
Call for Strategic Policy Shift
In conclusion, the PBF urged the government to adopt a more strategic, inclusive approach. Without serious reforms, sustainable economic growth will remain out of reach
