There’s nothing in budget for growth of exports: Suttar

KARACHI: Ismail Suttar, founder chairman Salt Manufacturers Association Pakistan (SMAP) has expressed serious reservations over the federal budget for 2026-27, arguing that the government has failed to introduce measures capable of delivering meaningful growth in exports at a time when the country urgently needs foreign exchange earnings.

Suttar said the budget lacked a coherent roadmap for expanding Pakistan’s export base and addressing challenges confronting manufacturers. He noted that despite repeated assurances of support for the productive sectors, exporters had received little beyond marginal tax adjustments.

According to him, one of the biggest disappointments was the government’s decision not to restore the Final Tax Regime (FTR) for exporters. He said the export sector had sought a straightforward tax framework that would minimise compliance costs and reduce interaction with tax authorities. “Reducing the withholding tax rate while keeping exporters within the normal tax regime does not solve the problem,” he observed. “Businesses need predictability and simplicity, not additional paperwork and procedural complications.”

Suttar warned that Pakistan’s regional competitors were aggressively facilitating exporters through tax incentives, lower production costs and simplified regulations, whereas the latest budget had offered no comparable relief.

Copyright Business Recorder, 2026