KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed mixed reactions to the Federal Budget 2026-27, praising certain fiscal measures while voicing concerns about the growing informal economy and the absence of a clear export-driven growth strategy. Other business groups shared similar criticisms, emphasizing the need for more comprehensive reforms to bolster industrial revival and economic expansion.

According to the Overseas Investors Chamber of Commerce and Industry, the budget, introduced by Finance Minister Muhammad Aurangzeb in the National Assembly, set a total federal expenditure of Rs18,771 billion with an economic growth target of 4%. The OICCI commended the budget's structural ambitions and the Federal Board of Revenue's milestone collection of Rs13 trillion. However, the chamber underscored that the bulk of these collections were derived from organized businesses, formal sector companies, and salaried taxpayers, while the informal cash economy swelled by 33% to Rs12 trillion.

The OICCI welcomed the rationalization of the super tax and the reduction in withholding and advance tax on export proceeds. Nonetheless, significant concerns were raised about the lack of tax incentives for the oil refinery sector and the absence of a review of the Minimum Tax on Turnover, which they argue distorts tax burdens.

Chairman Businessmen Group (BMG) Zubair Motiwala critiqued the budget for its lack of a clear strategy for export growth. Despite some positive measures, he expressed disappointment over the Final Tax Regime's restrictions on exporters and the absence of plans to reduce high energy costs, which he believes are crucial for boosting exports.

The SITE Association of Industry (SAI) also reviewed the budget with caution. SAI President Abdul Rehman Fudda noted that while the intent behind the budget was welcome, the pace of reforms was inadequate. The association highlighted unresolved issues such as industrial electricity tariffs, delayed tax refunds, and a burdensome penalty regime, urging the government to address these concerns before the Finance Bill's passage.