Karachi: President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has expressed a mixed response to the federal government's Rs18.771 trillion budget for the fiscal year 2026-27, acknowledging its potential to boost economic growth while underscoring the need for effective implementation and additional funding for Karachi's development. According to Korangi Association of Trade and Industry, Rajput articulated concerns about the ambitious tax revenue targets set by the government, citing Pakistan's challenging economic environment as a significant hurdle to achieving these objectives.

Rajput commended the allocation of Rs10 billion for Karachi's K-IV Bulk Water Supply Project, emphasizing its critical importance not only for the city but also for the national economy. He stressed that despite Karachi's pivotal role in Pakistan's industrial and economic landscape, the city continues to grapple with inadequate infrastructure and public services. He urged the federal government to allocate more resources to address these longstanding issues, highlighting the absence of a comprehensive policy framework for highways and broader infrastructure.

While welcoming tax relief measures such as the abolition of the 9 percent surcharge on salaried individuals and the reduction in income tax slabs, Rajput pointed out that the budget falls short of addressing the industrial sector's profitability and broader industrialization efforts. He also acknowledged the proposed reduction in super tax and the elimination of Capital Value Tax (CVT) on foreign assets as significant relief measures for businesses, which could lead to increased investment and industrial expansion.

On the export front, Rajput noted that while the budget includes some positive measures, further actions are needed to lower energy costs and improve export competitiveness. He called for timely export refunds, enhanced export financing schemes, and industrial reforms to reduce production costs. Despite these observations, Rajput concluded that the budget holds promise for both industry and the public, contingent on the government's ongoing commitment to industrial policy and infrastructure investment.