PBF urges growth-focused budget in light of regional, economic situation

KARACHI: The Pakistan Business Forum (PBF) has urged the government to present a growth-focused budget in light of the current regional and economic situation.

PBF President Khawaja Mehboob ur Rehman stressed that the upcoming budget must prioritize economic stability instead of just revenue generation. He warned that imposing more taxes could lead to an economic slowdown and harm long-term national interests. A budget that focuses only on meeting tax targets without addressing business and inflation concerns could worsen public and industrial stress.

PBF also highlighted concerns over the government’s reported plan to increase petroleum levy up to Rs100 per litre from July 1. Additionally, further taxation on electricity is being considered, which the forum believes will severely restrict economic activity. These measures, if implemented, could burden the already strained business sector and reduce industrial productivity. The forum believes such policies could discourage investment and delay recovery from the ongoing economic crisis. Businesses are already facing rising operational costs and shrinking margins.

According to the Pakistan Business Forum, the government is also considering increasing tax targets by Rs2,000 billion in the new fiscal year. This figure, in their view, is unrealistic given the fragile state of the economy. Such a heavy tax burden would be unfair to the business community, which is already dealing with inflation and uncertainty.

The forum recommended that the budget avoid new taxes and instead focus on relief for businesses and consumers. A more balanced approach could protect jobs and stabilize market conditions.

The upcoming budget, scheduled to be announced on June 10, should provide direct support to the business environment and offer genuine inflation relief.

The forum proposed reducing development expenditures and diverting those resources towards defence and economic recovery. They emphasized that the Ministry of Finance must acknowledge the exceptional nature of current challenges. Both the general public and national institutions cannot bear further inflation or instability. A responsible, supportive budget is essential for sustaining national strength.

Copyright Business Recorder, 2025