Aurangzeb chairs virtual meeting: Trade bodies flag high costs, liquidity crunch and policy uncertainty

ISLAMABAD/LAHORE: Representatives of trade bodies on Thursday highlighted the persistent challenges that businesses are facing, including high costs of doing business, liquidity constraints, policy uncertainty, and infrastructure bottlenecks, and urged the government to prioritize reforms in the upcoming budget to restore competitiveness and support sustainable economic growth.

The recommendations and proposals were shared during a virtual meeting chaired by Federal Minister for Finance and Revenue Muhammad Aurangzeb with presidents and senior office-bearers of Chambers of Commerce and business entities from across the country. The discussions focused on the prevailing economic situation, upcoming budget priorities, and avenues for strengthening economic recovery and growth.

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The meeting, which lasted nearly 90 minutes, was also attended by Minister of State for Finance Bilal Azhar Kayani, along with senior officials from the Finance Division, Revenue Division, and Tax Policy Office.

Opening the session, the Finance Minister welcomed the participants and appreciated their continued engagement with the government. He highlighted Pakistan’s growing prominence on the global stage amid evolving regional dynamics and underscored the importance of maintaining regular and structured dialogue with the business community. He noted that the interaction was particularly timely as he prepares for important engagements with international financial institutions and global counterparts, and emphasized the need to gather first-hand insights from key economic stakeholders.

The minister explained that the purpose of the meeting extended beyond discussions on taxation and the upcoming budget, focusing equally on identifying practical and forward-looking ideas to leverage current opportunities for enhancing trade, attracting investment, and promoting sustainable economic growth.

He noted that Pakistan had entered the recent challenging phase from a position of relative macroeconomic stability, supported by fiscal discipline and strengthened external buffers, and reaffirmed the government’s commitment to maintaining economic resilience while ensuring inclusive and durable recovery.

Highlighting recent economic developments, the minister pointed to improvements in fiscal management, fulfillment of external obligations, and targeted support measures for vulnerable segments. He emphasized that economic recovery is grounded in strengthening fundamental economic indicators and institutional discipline, achieved in partnership with the private sector.

He further encouraged participants to share actionable proposals to capitalize on emerging opportunities, particularly in trade facilitation, logistics, and regional connectivity, including the growing potential of Pakistan as a transshipment and investment hub.

Following the Minister’s remarks, the floor was opened for discussion, with participants presenting a broad range of proposals and recommendations aimed at supporting economic activity and enhancing competitiveness. The discussion focused on improving the overall business environment, facilitating exports, strengthening productivity, and aligning policy frameworks with regional benchmarks.

Minister of State for Finance Bilal Azhar Kayani, in his remarks towards the conclusion of the meeting, appreciated the constructive input from the business community and reaffirmed the government’s commitment to continued engagement.

He noted that many of the proposals were aligned with the government’s reform agenda and emphasized the importance of prioritizing measures that deliver maximum economic impact within available fiscal space, while ensuring practical and implementable solutions.

Senior officials from the Tax Policy Office and Federal Board of Revenue also briefed participants on the ongoing consultative process, assuring that proposals received from chambers were being carefully evaluated to formulate balanced and effective policy measures. They reiterated that continuous stakeholder engagement would remain central to shaping a responsive and growth-oriented budget.

Lahore Chamber President Faheem ur Rehman Saigol congratulated the government for raising Pakistan’s economic profile. He stressed that the government should address the rising shipping charges with the shipping companies and noted that remittances from GCC countries may decline, which requires review. He proposed that banks above a certain profit threshold be obligated to open branches in Central Asian countries, citing the potential of the market.

Jawed Balwani highlighted the need for Pakistan to negotiate with the United States to lower tariffs. He said the increasing cost of doing business is a major challenge and urged that freight rates be decreased. Atif Ikram from FPCCI called for the abolition of Section 7E to promote the real estate sector, restoring the final tax regime for exporters, promoting SMEs, and increasing the FBR threshold from Rs 250 million to Rs 350 million.

Usman Shaukat of RCCI asked for further relief in the current period, lowering policy rates, enhancing regional connectivity and trade, providing tax incentives to promote exports and import substitution, and introducing a real estate support package. Zubair Motiwala emphasized reducing the cost of doing business to promote exports and suggested a comparative analysis of Pakistan’s business costs with regional countries.

Bilal Kayani noted that the government is trying to increase the tax net through better policy initiatives. Hamid Ateeq highlighted that the Prime Minister has asked government departments to submit proposals to promote the real estate sector.

Copyright Business Recorder, 2026