Pakistani Prime Minister Shehbaz Sharif assured leading business figures on Wednesday that the government's upcoming budget would include measures aimed at providing relief to the public. The federal budget for fiscal year 2026-27, scheduled for presentation on June 10, comes at a crucial time for Pakistan's economy as it balances economic recovery with fiscal discipline under a $7 billion International Monetary Fund (IMF) program.
Economic Context and Challenges
While inflation has eased from record highs and foreign exchange reserves have stabilized since Pakistan secured IMF support in 2024, businesses continue to face challenges such as high taxes, elevated energy costs, and weak investment activity. The prime minister's statement followed consultations with prominent industrialists and business leaders ahead of the federal budget.
Government's Economic Strategy
Sharif reiterated Pakistan's commitment to an export-led growth strategy, describing it as the central pillar of the government's economic policy. “We are moving on the path of export-led growth; this is the cornerstone of our economic policy,” he said.
The government also briefed participants on a series of economic reforms, including speeding up resolution of tax disputes through tax tribunal reforms, plans for special commercial courts, and efforts to bring more of the informal economy into the tax net.
Technology and Infrastructure Initiatives
Officials announced that a National AI Transformation Plan is being formulated to modernize the economy, improve productivity, and support future growth sectors. Infrastructure projects aimed at improving trade and logistics were highlighted, including upgrades to Karachi's freight connectivity, work on the M-13 motorway linking Kharian and Rawalpindi, and plans to modernize Pakistan Railways' ML-1 and ML-2 networks to enhance cargo transportation.
Delegation and Recommendations
The visiting delegation included leading industrialists such as Nishat Group Chairman Mian Muhammad Mansha, Arif Habib Group Chairman Arif Habib, Lucky Cement CEO Muhammad Ali Tabba, Systems Limited CEO Asif Peer, Pakistan Business Council Chairperson Zeelaf Munir, Interloop Chairman Musadaq Zulqarnain, and Jazz CEO Aamir Ibrahim.
Business leaders presented recommendations on the budget and broader economic policy, expressing support for efforts to strengthen the economy and improve the investment climate. They emphasized the need to convert macroeconomic stabilization into sustainable, export-led growth through tax reforms, investment incentives, and measures to boost industrial competitiveness.
They also called for a broader tax base to bring more undocumented sectors into the formal economy while reducing the burden on compliant taxpayers and exporters. The business leaders thanked the government for recent reductions in electricity tariffs for industry, efforts to accelerate tax refunds, and measures to promote exports. They welcomed the government's push for digital payments, economic documentation, and tax reforms to improve the ease of doing business.
Pakistan has spent much of the past two years implementing economic reforms under IMF-supported programs, including broadening the tax base, reducing losses in the energy sector, and attracting investment. While the government says these measures have stabilized the economy, businesses continue to press for lower taxes, cheaper energy, and reduced production costs to boost competitiveness, exports, and growth.
