Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has made a formal appeal for the reinstatement of the Final Tax Regime (FTR) for exporters in the upcoming Federal Budget 2026-2027. The FPCCI contends that the removal of the FTR has created significant challenges for the export sector, as stated by its President, Atif Ikram Sheikh.

According to Federation of Pakistan Chambers of Commerce and Industry, the earlier withdrawal of the FTR has led to an increase in compliance obligations and documentation, causing tax-related uncertainties and enhancing audit-related issues. Mr. Sheikh emphasized that this shift has diminished the ease of doing business for exporters and called for the urgent restoration of the FTR to alleviate these burdens and support the nation's economic recovery.

Mr. Sheikh further explained the necessity of a collaborative approach with the government to ensure stability. He suggested that while reinstating the FTR is crucial, the specific tax rate should be negotiated with stakeholders to create a balanced revenue model. Mr. Saquib Fayyaz Magoon, Senior Vice President of FPCCI, added that offering exporters the option to choose between the FTR and Normal Tax Regime (NTR) in the forthcoming budget could enhance national exports.

Additionally, Mr. Abdul Mohamin Khan, Vice President and Regional Chairman Sindh of FPCCI, highlighted the importance of rationalized tax frameworks like the FTR in promoting sustainable economic growth. He stressed that such measures are essential for expanding the export base and improving Pakistan's competitiveness in international markets compared to regional competitors.