Karachi: The Lasbela Chamber of Commerce and Industry (LCCI) has called on the federal government to implement comprehensive reforms in taxation, energy, trade, and investment policies in the upcoming Budget 2026-27. The Chamber emphasized that these reforms are crucial for stimulating industrial growth, attracting investment, and enhancing business confidence in Pakistan.
According to Salt Manufacturers Association of Pakistan, the LCCI stated that the country's economic revival hinges on establishing a competitive and predictable business environment. The Chamber's recommendations align with the government's objectives of promoting industrialization and creating employment opportunities. They proposed a multi-year macroeconomic stabilization framework with clear targets for inflation and fiscal deficit reduction, alongside a transparent foreign exchange policy to ensure consistency and boost investor confidence.
On the taxation front, the chamber suggested halting ad hoc tax measures and gradually reducing corporate tax rates to align with regional economies. They also advocated for rationalizing withholding taxes, simplifying the tax system, and implementing time-bound dispute resolution mechanisms to facilitate both domestic and foreign investors.
To attract foreign direct investment (FDI), the LCCI recommended targeted incentives for export-oriented industries and sectors such as high-value manufacturing, pharmaceuticals, agro-processing, and mineral value addition. The Chamber also called for fast-track, one-window approval services for major investment projects.
Expressing concerns about high energy costs, the LCCI advised competitive long-term power purchase agreements, timely subsidies for vulnerable industrial units, and the accelerated adoption of renewable energy solutions to lower electricity tariffs for businesses.
The Chamber emphasized the importance of strengthening exports through quicker duty drawback and tax refund mechanisms, modernizing ports and customs operations with digitalization and continuous services, and pursuing preferential market access agreements with key trading partners.
To improve access to finance, the LCCI suggested credit guarantee schemes, refinance facilities for exporters, and broader availability of SME and green financing instruments. It also urged the government to allocate resources for SME incubators, industrial cluster development, and special industrial zones with streamlined land allotment procedures.
Moreover, the LCCI highlighted the necessity of workforce development and technological advancement, recommending tax credits for employee training programs, industry-academia research grants, and incentives for automation and digital transformation. The Chamber also called for increased public investment in broadband infrastructure, tax incentives for environmentally sustainable and digital initiatives, and reforms in public procurement procedures to ensure timely payments to suppliers and SME contractors.
Finally, the Chamber urged the government to publish impact assessments of major fiscal measures and adopt outcome-based budgeting to enhance the effectiveness and transparency of industrial support programs.