KARACHI: President of the Karachi Chamber of Commerce and Industry (KCCI) Rehan Hanif has urged the government to immediately restore the Final Tax Regime (FTR) for exporters, saying that it would boost exports, make Pakistani products more competitive in the global markets, attract new investors to the export sector, create employment opportunities, and ultimately increase government revenue through higher export volumes.
He said that the government should take immediate measures to reduce the cost of doing business in order to support exports and make industries globally competitive. Pakistani exporters, he noted, were currently facing immense pressure due to expensive electricity and gas tariffs, high interest rates, and uncertain policies compared to regional competitors, resulting in reduced industrial activity and declining exports.
He further called for the immediate restoration of the Duty Drawback of Local Taxes and Levies (DLTL) Scheme at its previous incentive rates to ease the financial burden on the export sector.
A former FPCCI vice president and central leader of the Businessmen Forum, Captain Abdul Rasheed Abro, stated that Pakistan’s trade deficit had reached USD32 billion during the first ten months of the current fiscal year. He noted that the export-to-import ratio had declined alarmingly and stressed that exports could be increased by providing facilities and incentives to exporters and reducing production costs.
He expressed the hope that the economic team under the prime minister’s leadership would incorporate the recommendations submitted by the business organizations, the chambers of commerce, and trade associations into the budget.
President of the Federal B Area Trade and Industry Association (FBATI), Sheikh Muhammad Tahseen, submitted a comprehensive letter to the federal finance minister containing several proposals aimed at promoting exports, industrial revival, and business growth.
In his letter, Sheikh Muhammad Tahseen said that global tensions, rising inflation, and economic pressures continue to challenge industries and exports. Therefore, he urged the government to announce a special package in the upcoming budget to revive industrial activities and enhance exports.
The letter called for resolving issues related to sales tax refunds, the Export Facilitation Scheme (EFS), and advance taxes on a priority basis.
It also recommended restoring a simple and stable Final Tax Regime for exporters and providing maximum support and incentives to SMEs and export-oriented units. Sheikh Tahseen further emphasized the urgent need for amendments to sales tax and income tax laws.
Head of the All Pakistan Timber Traders Association, SharjeelGoplani, stated in his budget proposals submitted to the government that timber is a fundamental and essential raw material used extensively in construction, housing projects, furniture manufacturing, boat building, interior works, packaging, logistics, sports goods, and various domestic and export industries.
He pointed out that imported timber is currently subject to 18 percent sales tax along with an additional 3 percent sales tax at the import stage. In the Federal Budget 2026-27, the association has proposed reducing the sales tax rate on timber imports under HS Codes 44.01–44.07 and 44.09 from 18 percent to 10 percent, while completely abolishing the additional 3 percent sales tax imposed at the import stage.
Chairman of the National Business Group Pakistan and member of the FPCCI Policy Advisory Board, Mian Zahid Hussain, in his proposals for the Federal Budget 2026-27, stated that the recommendations submitted to the government include the provision of energy to industries at regionally competitive rates, restoration of the Final Tax Regime (FTR) for exporters, reduction in the corporate tax rate, abolition of super tax, rationalization of withholding taxes under Sections 148 and 153, reduction in turnover tax under Section 113, elimination of the minimum tax regime, prompt payment of refunds, abolition of further tax, and repeal of Section 8B.
Mian Zahid Hussain said that the objective of these recommendations was to restore the confidence of the business community and revive the pace of investment.
He added that these measures could increase Pakistan’s exports by at least USD10 billion, reduce unemployment and poverty, and significantly strengthen the country’s foreign exchange reserves.
Copyright Business Recorder, 2026
Comments