Karachi: The Chairman of the National Business Group Pakistan, Mian Zahid Hussain, has voiced significant concerns regarding the current federal budget, emphasizing that the business community's reservations must be addressed to prevent economic stagnation.

Leading figures in the business sector have characterized the budget as imbalanced and detrimental to growth, urging swift governmental intervention. Zahid Hussain, speaking on behalf of various trade associations and industrialists, criticized the budget for failing to reduce production costs, boost exports, and promote investment.

A key criticism is the additional tax burden of 2,500 billion rupees placed on those already within the tax net, coupled with increased levies on electricity, gas, and petroleum, which are expected to escalate industrial costs. Taxes on solar panels and online businesses, along with the continuation of the super tax, have further intensified market uncertainty.

Zahid Hussain stressed the need for a revised budget crafted in consultation with the private sector. He warned against sacrificing the $600 billion economy for a mere 500 billion rupees in tax enforcement, emphasizing the necessity of a balanced strategy to achieve ambitious tax collection and economic growth targets.

The decline of large-scale industries is a pressing issue, with the industrial sector witnessing a continuous downturn. The sugar industry, in particular, is cited as a major concern, with production falling significantly compared to the previous year. Other sectors, including cement, steel, chemicals, and electronics, are also experiencing downturns.

Zahid Hussain expressed disappointment over the maintained interest rate, which he believes has discouraged the business community. He highlighted that key sectors like automobiles, textiles, and pharmaceuticals are stagnating, calling for urgent support to prevent further deterioration and to foster future economic revival.

Affordable electricity, accessible financing, and a comprehensive industrial policy are deemed critical for economic stability. Zahid Hussain concluded that improved production facilities and sustainable growth in export-oriented industries are essential to reversing the current economic trends.