LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has termed the Federal Budget 2026-27 a balanced budget that includes several positive measures for economic stabilisation and documentation. However, it emphasised the need for a greater focus on investment-led growth, industrial expansion and employment generation.
LCCI President Faheem Ur Rehman Saigol, Senior Vice President Tanveer Ahmad Sheikh and Vice President Khurram Lodhi, while reacting to the budget, appreciated a number of relief measures announced by the government. However, they pointed out that several key sectors critical to Pakistan’s long-term economic growth require greater attention.
They observed that the budget lacks a comprehensive roadmap for the growth of industry, SMEs, agriculture and the IT sector, which are among the country’s key drivers of exports, investment and job creation.
The LCCI office-bearers also expressed concern that the allocation of Rs109 billion for dams and water reservoirs may not be sufficient to address Pakistan’s growing water security challenges. Referring to the ambitious tax collection target of Rs15.264 trillion, they stressed that revenue objectives should primarily be achieved through the expansion of the tax base rather than by increasing the burden on existing taxpayers.
They suggested that, alongside social protection initiatives, greater investment should be made in skills development and human capital to create sustainable employment opportunities.
The LCCI office-bearers welcomed the abolition of Section 7E, the reduction in property transaction taxes, lower tax rates for salaried individuals, the reduction of export-related taxes, and various initiatives aimed at improving tax administration and documentation.
LCCI President Faheem Ur Rehman Saigol said that the budget reflects the government’s commitment to fiscal discipline and economic stability. He added that measures aimed at facilitating taxpayers, improving documentation and encouraging investment are steps in the right direction. However, he observed that Pakistan now needs policies capable of accelerating economic growth, increasing industrial output and enhancing export competitiveness.
Senior Vice President Tanveer Ahmad Sheikh said that broadening the tax net remains essential for sustainable fiscal management. He appreciated efforts to improve compliance through digitisation and faceless systems, but emphasised that undocumented sectors should be brought into the formal economy to ensure a fair and equitable taxation system.
Vice President Khurram Lodhi said that while the budget contains several encouraging measures, a more comprehensive package for SMEs and industry would have further strengthened business confidence.
He stressed the need for lower energy costs, affordable financing and regulatory reforms to improve Pakistan’s competitiveness in regional and global markets.
Copyright Business Recorder, 2026
Comments