The upcoming Federal Budget should prioritize sustainable economic growth rather than focusing solely on revenue generation, according to former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Hanif Lakhani.
Lakhani urged the government to incorporate recommendations submitted by trade associations, chambers of commerce, and business organizations across the country while finalizing the Federal Budget 2026-27.
Federal Budget Should Promote Economic Growth
Speaking on economic priorities, Hanif Lakhani said the primary objective of the Federal Budget should extend beyond revenue collection and short-term economic stability.
He emphasized that policymakers should focus on creating conditions that encourage long-term investment, industrial expansion, and sustainable economic development.
According to him, practical policy measures are needed to strengthen business confidence and support productive sectors of the economy.
Business-Friendly Tax System Essential
Lakhani stressed that simplifying the tax structure and making it more business-friendly are critical steps toward boosting economic activity.
He stated that a transparent and efficient taxation system can help attract both domestic and foreign investment while reducing compliance burdens on businesses.
The former FPCCI vice president noted that the government must move beyond policy discussions and implement practical reforms that directly benefit the business community.
Affordable Energy Needed for Industry
One of the key recommendations for the Federal Budget is the provision of affordable electricity, gas, and other energy sources to the industrial sector.
Lakhani said high energy costs continue to increase production expenses and reduce the competitiveness of Pakistani manufacturers in international markets.
He emphasized that lowering the cost of doing business would help industries expand production, improve exports, and create new employment opportunities.
Export Competitiveness Must Be Strengthened
The business leader highlighted the importance of supporting exporters through policies that reduce operational costs and improve market competitiveness.
According to him, achieving export targets requires a comprehensive strategy that includes affordable energy, easier access to raw materials, and a favorable business environment.
He added that export-led growth remains essential for improving Pakistan’s economic performance and foreign exchange earnings.
Expanding the Tax Net Instead of Imposing New Taxes
Lakhani suggested that the government should avoid placing additional tax burdens on existing taxpayers.
Instead, he recommended expanding the tax base by bringing more individuals and businesses from the undocumented economy into the formal taxation system.
He argued that broadening the tax net would increase government revenues while ensuring a more equitable distribution of tax responsibilities.
Review of Duties and Industrial Costs Proposed
Among his recommendations, Lakhani called for a review of customs duties and regulatory duties to facilitate the import of raw materials and industrial machinery at lower costs.
He said reducing import costs for essential industrial inputs would support manufacturing activities and encourage investment in productive sectors.
Such measures, he noted, could contribute significantly to industrial growth and economic expansion.
Special Incentives for Key Economic Sectors
Lakhani also advocated targeted incentives for sectors with strong growth potential, including information technology, agriculture, construction, and export-oriented industries.
He said these sectors have the capacity to generate employment, attract investment, and contribute significantly to national economic growth.
Providing sector-specific support through the Federal Budget could help accelerate development and improve economic performance across multiple industries.
Expanding Tax Base Remains a Major Challenge
Commenting on tax reforms, Hanif Lakhani acknowledged that expanding the tax net will remain one of the biggest challenges facing the Federal Board of Revenue (FBR).
However, he expressed confidence that under the leadership of the current FBR chairman, meaningful progress can be achieved in broadening the taxpayer base.
According to him, successful implementation of tax reforms would help reduce pressure on existing taxpayers while improving revenue collection and strengthening the country’s fiscal position.
Business Community Seeks Practical Economic Reforms
The business community continues to call for policies that encourage investment, reduce operational costs, and support economic growth.
Lakhani concluded that a growth-oriented Federal Budget focused on tax reform, industrial development, export promotion, and business facilitation would help strengthen Pakistan’s economy and create a more sustainable path toward long-term prosperity.
