The Sarhad Chamber of Commerce and Industry (SCCI) on Friday dismissed the federal budget for fiscal year 2026-27 as disappointing, non-investment-oriented, and detached from economic realities, arguing that it offers little relief to businesses while setting what it described as unrealistic growth and revenue targets.
Reacting to the budget speech delivered by Finance Minister Muhammad Aurangzeb in the National Assembly, SCCI President Junaid Altaf said the financial plan had failed to address the concerns of the business community, particularly industries in Khyber Pakhtunkhwa struggling to recover from prolonged economic uncertainty.
“No meaningful measures have been announced for the revival of industries and businesses in Khyber Pakhtunkhwa,” Altaf told reporters at a press conference. “The budget falls short of the expectations of the business community and cannot be termed business-friendly.”
He questioned the government’s ambitious revenue target of Rs15 trillion for the next fiscal year, describing it as “totally unrealistic” when the authorities had struggled to meet the collection targets set for the outgoing year. Altaf also criticised the growth projections contained in the budget, arguing that the targets bore little resemblance to prevailing economic conditions.
“The government has set an ambitious GDP growth target despite failing to achieve its objectives in the current fiscal year. Such projections do not reflect the realities confronting businesses and investors,” he said.
He expressed disappointment over what he described as the absence of a meaningful relief package for Khyber Pakhtunkhwa, particularly the merged tribal districts, saying the allocations proposed for the region were insufficient to address its developmental and economic needs.
The SCCI president further characterised the budget as being heavily influenced by conditions imposed by the International Monetary Fund (IMF), alleging that it offered neither substantial relief to ordinary citizens nor incentives to stimulate business activity.
“The economy cannot be strengthened merely by increasing the tax burden. The need of the hour is to broaden the tax base rather than squeezing existing taxpayers, but the budget fails to address this fundamental issue,” he remarked.
However, Altaf welcomed certain measures announced by the government, including the proposed abolition of the super tax, a longstanding demand of the business community, and the withdrawal of excise duty on anti-cancer medicines.
Responding to questions on trade, he said the prolonged closure of the Torkham border had inflicted significant losses on businesses in the province, describing the crossing as a vital commercial lifeline. He further noted that exports from Khyber Pakhtunkhwa had suffered due to the imposition of a one per cent Provincial Infrastructure Development Cess and warned that similar proposals elsewhere could further undermine export competitiveness. “Such measures create unnecessary hurdles to export growth and should be reviewed immediately,” he said.
Commenting on the government’s plans to privatise power distribution companies and other loss-making state entities, Altaf said the initiative was encouraging. “Institutions such as Pakistan International Airlines and Pakistan Steel Mills have become a burden on the national economy. Their restructuring and privatisation are necessary,” he observed.
He also lamented the absence of incentives for small and medium-sized enterprises (SMEs), describing them as the backbone of the economy and key drivers of employment generation.
Former SCCI president Zahid Shinwari echoed the concerns, saying the budget should have been framed with greater sensitivity to the country’s economic challenges. “Industrial and business growth has stagnated, unemployment is rising and investor confidence remains fragile. Unfortunately, these realities appear to have been ignored,” he said.
Shinwari also questioned the feasibility of the government’s tax collection projections and pointed to discrepancies between inflation figures cited in the budget and assessments issued by the State Bank of Pakistan. Referring to the proposed fixed tax regime for small traders, he argued that the suggested one per cent turnover tax remained excessively high and should be reduced. He stressed that special incentives and targeted measures were essential to strengthen the SME sector and revive economic activity.
SCCI vice-presidents Muhammad Nadeem and Sabir Ahmad Bangash, former presidents Haji Afzal, Malik Niaz, Fuad Ishaq and Mr Faizi, Women Chamber of Commerce and Industry Peshawar President Qurt-ul-Ain, executive committee members, traders and manufacturers were also present at the press conference.
