KARACHI: Mian Zahid Hussain, a prominent figure in Pakistan's business community, has voiced significant concerns over the anticipated direction of the federal budget for the fiscal year 2026-27. He highlighted the need for the national economy to transition towards a sustainable growth model, focusing on industrial growth and exports rather than traditional revenue collection methods.

According to Pakistan Businessmen and Intellectuals Forum, Hussain, who serves as President of the forum as well as holding several other key positions, criticized the government's proposed revenue target of 17.1 trillion rupees and the increase in sales tax and FBR tax targets. He warned that these measures could place undue strain on existing taxpayers and industries, potentially paralyzing business activities.

Hussain cautioned that without shifting economic policies towards productivity and exports, Pakistan's GDP growth targets would remain stagnant. He noted the government's decision to aim for a GDP growth target between 3.5 to 4.2 percent, which falls short of the desired five to six percent growth rate. He stressed the need for relief in import duties, energy prices, and bank markup rates to achieve economic growth.

Hussain also addressed the potential impact of an increased petroleum levy under IMF conditions, predicting a rise in inflation and increased business costs. He advocated for a growth-oriented policy, asserting that indiscriminate tax increases hinder industrial progress and reduce government revenue in the long term.

Furthermore, Hussain suggested that the Public Sector Development Programme should be linked to incentives in the IT, agriculture, and manufacturing sectors to foster employment. He emphasized the importance of expanding the tax net to include untaxed sectors and reducing the burden on manufacturing to enhance Pakistan's export competitiveness.

Hussain concluded by calling for the modernization of tax laws to create a more business-friendly environment, suggesting that digitalization could help increase the Tax-to-GDP ratio. He argued that abandoning outdated methods of tax enforcement would improve economic stability and attract foreign investment.