The Pakistan Industrial and Traders Associations Front (PIAF) has warned that several policy inconsistencies in the Federal Budget 2025-26 could significantly hinder industrial recovery and export growth, stressing that the government must take immediate corrective measures to align fiscal priorities with the needs of local producers and exporters.
PIAF Chairman Faheemur Rehman Saigol, accompanied by Senior Vice Chairman Nasrullah Mughal and Vice Chairman Tahir Manzoor Chaudhry, said that while the budget introduces some welcome steps toward documentation and revenue enhancement, it lacks targeted support for industrial revival, especially in the context of rising input costs, weak global demand, and domestic economic uncertainty.
“The government seems focused primarily on meeting revenue targets through indirect taxation and documentation initiatives,” Saigol stated, “but it has overlooked the fundamental issue of how to make production viable in Pakistan. Without reducing the cost of doing business, there can be no sustainable recovery.”
He criticized the absence of relief in power tariffs and financing costs, pointing out that high electricity rates, fuel prices, and interest rates continue to erode the competitiveness of local manufacturers, particularly small and medium enterprises (SMEs). “The government’s silence on energy pricing and industrial financing is disappointing. These are core challenges that affect every sector and must be addressed head-on,” he added.
PIAF noted that although the budget refers to the promotion of digital infrastructure and the rollout of e-invoicing systems, these measures alone cannot ensure economic growth if the productive sector remains suppressed. The leadership urged the government to accompany documentation drives with concrete steps to stimulate industrial output, such as tax incentives for value-added manufacturing, simplified compliance for SMEs, and affordable industrial inputs.
Vice Chairman Tahir Manzoor Chaudhry voiced concern over the lack of allocation for industrial zone development and infrastructure expansion, saying the budget has once again ignored the longstanding demands of manufacturers for improved logistics, power infrastructure, and industrial facilities. “The federal budget must recognise that industry cannot operate in isolation. It needs a functioning ecosystem-roads, power, water, and governance-to thrive,” he stated.
He further pointed out that inflationary pressures, currency depreciation, and higher import costs are making it increasingly difficult for exporters to remain competitive in international markets. “Our industries are being squeezed from all sides-rising costs at home and falling demand abroad. The budget needed to respond with bold support mechanisms, but that clarity is missing,” Chaudhry said.
Senior Vice Chairman Nasrullah Mughal added that while the Export-Import Bank and other financial tools were mentioned in the budget speech, there is no execution plan for how these institutions will be empowered or reformed to meet the actual needs of businesses. “There is a growing trust deficit when it comes to policy delivery. Announcements alone are not enough; we need timelines, transparency, and results,” he said.