KARACHI: Chairman of the Pakistan Chemicals and Dyes Merchants Association (PCDMA), Salim Valimuhammad, has criticized the Federal Budget 2026-27, claiming that the government has sidestepped significant proposals from commercial importers and overlooked persistent issues affecting the trading community. According to Pakistan Chemicals and Dyes Merchants Association, Valimuhammad articulated the association's opposition to the continued implementation of the Export Facilitation Scheme (EFS), arguing that the scheme's retention, without adequate safeguards, exacerbates the divide between industrial and commercial importers.

Valimuhammad raised concerns that a substantial volume of goods imported under industrial concessions is reportedly entering the open market, with some importers allegedly exploiting industrial status to import raw materials under favorable conditions and then selling them commercially. This practice, he stated, results in unfair competition against legitimate commercial importers who adhere to full customs duties and tax obligations.

He emphasized that such activities not only inflict financial harm on commercial importers but also deprive the national treasury of essential revenue. Valimuhammad highlighted that commercial importers are obligated to meet all tax and duty requirements, whereas industrial importers benefiting from exemptions often operate with insufficient oversight, enabling misuse of facilities designated for industrial production.

Addressing the budget's tax measures, Valimuhammad acknowledged that while the salaried class received relief, the broader business community and trading sector received minimal support, with tax rates and burdens remaining predominantly unchanged. He remarked that the budget fails to offer necessary incentives to boost commercial activity.

Valimuhammad called for the government to implement a comprehensive system of checks and balances for industrial imports, to ensure that concessionary schemes are utilized appropriately. He underscored that equitable opportunities and a level playing field for all stakeholders are crucial for sustained economic growth.

He cautioned that without government intervention to rectify market distortions, tax discrepancies, and misuse of import concessions, the commercial importing sector will continue to face significant challenges, adversely affecting business operations, tax revenue, and the broader economy.