‘First-ever’ shadow budget unveiled by FPCCI
The FPCCI unveiled Pakistan's first shadow budget for 2026-27, proposing comprehensive economic reforms including tax cuts, export boosts, and an expanded tax net to achieve ambitious growth targets.
- Proposed tax reforms and ambitious economic growth targets.
- Strategies to boost exports and attract investment.
- Plans for expanding the tax net and simplifying tax forms.
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday presented the country’s first-ever shadow budget for the fiscal year 2026-27 at the FPCCI Regional Office here.
The policy documents were jointly unveiled by FPCCI President Atif Ikram Sheikh, Regional Chairman and Vice President Zaki Aijaz, United Business Group patron-in-chief SM Tanveer, Economic Policy and Business Development (EPBD) Think Tank patron-in-chief Bashir Jan Mohammad, Chairman Dr Gohar Ejaz, and CEO Ahmed Nawaz Sukhaira.
Speaking at the ceremony, FPCCI President Atif said that for the first time in Pakistan’s history, the FPCCI had introduced a complete set of alternative economic policy documents, including a shadow federal budget, shadow economic survey, tax policy and administration reforms and a five-year development plan.
He stated that the initiative was not limited to offering recommendations, but instead the FPCCI presented a comprehensive, integrated and practical alternative economic frameworks aimed at reshaping Pakistan’s economic direction through a serious and structured approach.
According to the documents, the proposed framework includes industrial relief measures, strategies to attract investment, a roadmap to boost exports, plans for economic documentation and reforms and a revenue-neutral growth model — all consolidated within a single policy framework.
The representatives of FPCCI and the Economic Policy and Business Development Think Tank outlined ambitious economic targets for the next five years, including raising Pakistan’s GDP growth rate to 8.5 percent and increasing per capita income from USD1,900 to USD2,900.
Among the key proposals, the Shadow Budget recommended reducing the General Sales Tax (GST) from 18 percent to 15 percent and lowering the maximum tax rate for salaried individuals from 35 percent to 20 percent. The roadmap also calls for reducing interest rates and stabilizing the US dollar, while aiming to eliminate the country’s USD40 billion trade deficit.
The FPCCI and EPBD representatives said the shadow documents, prepared with the consultation and input of chambers, economists, and former bureaucrats, envisioned a stronger economy and greater prosperity for the people of Pakistan. They said it was unfortunate that country’s exports had remained stagnant at around USD30 billion over the past four years and stressed the need to increase them to USD80 billion by the year 2031.
The business leaders also highlighted that citizens had deposited nearly USD60 billion in banks over the past two years and earned interest income, urging the government to focus on expanding the tax net. They proposed increasing the number of taxpayers from existing 3 million to 100 million, warning that sustainable economic growth would not be possible otherwise.
The shadow budget further recommended a 35 percent increase in the defense budget and a 23 percent increase in pensions. The FPCCI officials also called for simplifying tax return forms, suggesting they should be reduced to a single-page document to encourage wider compliance.
Copyright Business Recorder, 2026
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