Pakistan’s business community has voiced mistrust over the upcoming FY27 budget, warning that export earnings could decline further under a tax-heavy policy framework. Industry leaders urged the government to adopt an export-led growth strategy instead of focusing primarily on ambitious revenue targets. The demands come days before the federal budget announcement, a key event for businesses, investors and taxpayers.
Speaking at a press conference in Karachi, FPCCI Senior Vice President Saquib Fayyaz Magoon said the private sector had submitted proposals aimed at accelerating exports and economic growth. He argued that Pakistan could raise annual exports to $50-60 billion if industries received competitively priced energy, lower taxes and affordable financing. He also called for stronger consultation with business representatives during the budget-making process.
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Business leaders warned that existing policies were increasing the cost of doing business and discouraging exporters. According to FPCCI figures, exports fell 5.6% to $27.9 billion during the first 11 months of FY26. Magoon cautioned that exports could decline by another 20-30% in FY27 if policymakers failed to address structural challenges. He maintained that the government should prioritise production, import substitution and export incentives.
Among the key proposals were a reduction in General Sales Tax to 15% from 18%, removal of the Super Tax on industries and a cut in interest rates to single digits. The business community also sought incentives for new exporters, rationalisation of tax policies and reforms to investment regulations. Industry representatives further recommended increasing workers’ wages by 10-15% to help offset inflationary pressures.
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Meanwhile, businessmen highlighted concerns about policy inconsistency and weak trust between taxpayers and tax authorities. They urged the government to provide a stable long-term policy environment to encourage investment and industrial expansion. Other recommendations included raising the monthly tax-free income threshold for salaried individuals to Rs100,000 and lowering the maximum income tax rate. The business community said a predictable and growth-oriented budget would be essential for boosting exports and economic confidence.