The Sarhad Chamber of Commerce and Industry (SCCI) on Friday urged the Khyber Pakhtunkhwa government to introduce measures promoting ease of doing business and industrial growth for economic stability and sustainable development, rather than placing additional burdens on already taxed businesses, in the forthcoming provincial budget.
SCCI Budget Proposals
In its budget proposals, the SCCI called for the abolition of the Infrastructure Development Cess (IDC) on exports, elimination of property tax in industrial estates, reduction in professional tax, determination of social security contributions and minimum wages in line with provincial economic conditions, reduction in property tax rates on commercial markets and locality factors, rationalization of the KPRA sales tax and other provincial taxes, and the provision of special grants for SME development across the province.
Infrastructure and Industrial Policy
The chamber’s office-bearers unanimously called for practical measures to improve and upgrade infrastructure and facilities in existing industrial estates. They also stressed the need for a long-term industrial policy aimed at investment retention in Khyber Pakhtunkhwa. They emphasized modernization and the provision of advanced facilities at border stations to enhance connectivity and trade with regional countries.
One-Window Facilitation
The SCCI also sought the establishment of a one-window facilitation service and special initiatives to improve the business environment and accelerate industrial growth. These recommendations are part of the chamber’s pre-budget document titled “Industrial Revival, Job Creation and Investment Retention in Khyber Pakhtunkhwa,” submitted ahead of the provincial budget for the fiscal year 2026-27, according to an SCCI budget proposal document cited in a press release.
Tax Reforms and Labour Market
Through its budget proposals, the SCCI made an urgent call for labour market reforms, workers’ welfare, and human capital development. The chamber highlighted multiple overlapping provincial levies and taxes, including stamp duty, capital value tax, and Tehsil Municipal Administration (TMA) charges, particularly the dual property tax imposed on industrial estates. It called for their modification and rationalization through comprehensive taxation and fiscal reforms.
Local Government Taxation
Similarly, the SCCI stressed the need to reform the local government taxation system through the introduction of a uniform tax structure across all TMAs, digitization of tax collection and record-keeping systems, and the establishment of a one-window municipal facilitation mechanism.
Infrastructure Development Cess
The proposal document highlighted the business community’s concerns regarding the Infrastructure Development Cess on exports, describing it as a significant financial burden on industries, exporters, importers, and transit trade operators in Khyber Pakhtunkhwa. The chamber recommended its complete abolition to boost provincial exports.
Construction and Mining Sectors
The SCCI also emphasized the need for proactive measures to revive the construction industry and develop the mining and minerals sector. Key recommendations included increasing domestic and foreign investment in mining, promoting value-added mineral exports, generating employment in mining regions, enhancing industrial activity, increasing provincial revenue, and improving the utilization of indigenous natural resources.
Funding for Economic Zones
The chamber further recommended allocating additional funds to the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) and the Small Industries Development Board (SIDB) for infrastructure development and facility upgrades in Industrial Estate Hayatabad, Small Industrial Estate Kohat Road Peshawar, economic zones, and other industrial estates under the next Annual Development Programme (ADP).
Special Economic Zones
The SCCI proposed the establishment of special economic zones, small industrial estates, commercial markets and bazaars, industrial clusters, and business hubs throughout the province.
SCCI President's Remarks
SCCI President Junaid Altaf said the chamber expects the provincial budget to prioritize industrial competitiveness, productive investment, employment generation, labour productivity enhancement, investment retention, and ease of doing business rather than focusing on short-term revenue maximization. He expressed hope that facilitation-oriented governance, policy predictability, regulatory efficiency, and institutional coordination would remain central pillars of the province’s economic transformation.
The SCCI chief reaffirmed the chamber’s commitment to engaging with the provincial government and underscored the importance of meaningful public-private collaboration, stakeholder consultation, and institutional partnerships in developing pragmatic, investment-oriented, and growth-driven economic policies capable of delivering sustainable prosperity to Khyber Pakhtunkhwa.
