Budget 2026-27: LCCI sees positives, urges growth-oriented reforms

Business leaders have described the Federal Budget 2026-27 as balanced, noting that it includes several positive steps aimed at economic stabilisation and improved documentation. However, they stressed that stronger emphasis is still required on investment-driven growth, industrial expansion and job creation. Reacting to the budget, LCCI office-bearers appreciated multiple relief measures introduced by the government. At the same time, they pointed out that several key sectors essential for long-term economic progress still require greater policy attention. They observed that the budget does not present a detailed strategy for the development of industry, small and medium enterprises (SMEs), agriculture and the information technology sector — all of which play a vital role in exports, investment and employment generation. It also raised concerns that the Rs109 billion allocation for dams and water reservoirs may fall short of addressing Pakistan’s growing water security challenges. LCCI representatives further highlighted the ambitious tax collection target of Rs15.264 trillion, stressing that revenue goals should be achieved by expanding the tax base rather than increasing pressure on existing taxpayers. They also recommended that alongside social protection programmes, more investment should be directed toward skills development and human capital to ensure sustainable employment opportunities. They welcomed measures such as the abolition of Section 7E, reduction in property transaction taxes, lower tax rates for salaried individuals, cuts in export-related levies, and steps to improve tax administration and documentation. Faheem Ur Rehman Saigol said the budget reflects the government’s commitment to fiscal discipline and macroeconomic stability. He noted that initiatives to facilitate taxpayers, improve documentation and encourage investment are positive developments. Still, he stressed the need for stronger policies to accelerate industrial output, boost exports