Lahore: The Lahore Chamber of Commerce and Industry (LCCI) expressed mixed reactions to the federal budget for 2025-26, acknowledging some achievements while lamenting the absence of broader economic relief measures. The concerns were raised during a press conference held after the budget speech, where LCCI officials voiced their expectations for initiatives to encourage investment, industrial growth, small and medium enterprises (SMEs), and the agricultural sector.
Addressing the media, LCCI President Mian Abuzar Shad noted that although several of their demands were met, the business community had hoped for more extensive budgetary support. Shad stressed the importance of the defense budget increase but argued that further increments were necessary. While welcoming relief measures for the construction sector and increased allocations for water projects, he suggested that even more funding was needed to address current challenges.
The LCCI's call for simplified tax returns was one demand that was met, yet Shad described the reduction in super tax as inadequate. He praised the imposition of taxes on FATA/PATA, a move long advocated by the LCCI, and welcomed the merging or abolition of 45 government entities while urging the divestment of loss-making public enterprises.
Shad also highlighted other positive steps, such as tax reductions in the real estate sector, lower duties on property transactions, the establishment of Daanish University, and measures to curb sales tax evasion. He supported the inclusion of e-commerce in the tax net but expressed concern over the lack of focus on SMEs, citing the detrimental impact of under-invoicing and Afghan trade on the economy.
Senior Vice President Engineer Khalid Usman criticized the budget for its lack of a clear growth strategy and called for more significant tax relief for salaried individuals. Usman warned that taxing petroleum products could discourage economic documentation.
Vice President Shahid Nazir Chaudhry emphasized the importance of stakeholder consultation in policy formulation, while former president Mian Anjum Nisar called for a budget focused on promoting investment, noting insufficient allocations for industry, agriculture, and water resources. Concerns were raised by Muhammad Ali Mian regarding unchanged electricity prices and increased discretionary powers of the FBR amid automation.
Former Vice President Faheem ur Rehman Sahgal reiterated the necessity of preparing the budget in consultation with the trader community, underscoring the broader sentiment among LCCI members for a more inclusive approach to economic policy-making.