Lasbela Chamber urges govt to introduce comprehensive reforms

KARACHI: Lasbela Chamber of Commerce and Industry (LCCI) has urged the federal government to introduce comprehensive reforms in taxation, energy, trade and investment policies in the upcoming budget to stimulate industrial growth, attract investment and strengthen business confidence.

The Chamber said Pakistan’s economic revival depended on creating a competitive and predictable business environment, adding that its recommendations were aligned with the government’s stated objective of promoting industrialisation and generating employment opportunities.

The LCCI called for a multi-year macroeconomic stabilisation framework with clearly defined targets for inflation and fiscal deficit reduction, coupled with a transparent foreign exchange policy to ensure policy consistency and investor confidence.

On taxation, the chamber proposed an immediate halt to ad hoc tax measures, gradual reduction in corporate tax rates to bring them in line with regional economies, rationalisation of withholding taxes and simplification of the tax system. It also recommended time-bound dispute resolution mechanisms to facilitate domestic and foreign investors.

To encourage foreign direct investment (FDI), the chamber sought targeted incentives for export-oriented industries, high-value manufacturing, pharmaceuticals, and agro-processing and mineral value-addition sectors. It also advocated fast-track one-window approval services for major investment projects.

Expressing concern over high energy costs, the LCCI recommended competitive long-term power purchase arrangements, timely subsidies for vulnerable industrial units and accelerated adoption of renewable energy solutions to reduce electricity tariffs for businesses.

Lasbela Chamber also highlighted the need to strengthen exports through faster duty drawback and tax refund mechanisms, modernisation of ports and customs operations through digitalisation and round-the-clock services, and the pursuit of preferential market access agreements with key trading partners.

To improve access to finance, it proposed credit guarantee schemes, refinance facilities for exporters and wider availability of SME and green financing instruments. It further urged the government to allocate dedicated resources for SME incubators, industrial cluster development and special industrial zones with streamlined land allotment procedures.

The LCCI also stressed the importance of workforce development and technological advancement, recommending tax credits for employee training programmes, industry-academia research grants and incentives for automation and digital transformation.

The Chamber called for greater public investment in broadband infrastructure, tax incentives for environmentally sustainable and digital initiatives, and reforms in public procurement procedures to ensure timely payments to suppliers and SME contractors.

It further urged the government to publish impact assessments of major fiscal measures and adopt outcome-based budgeting to improve the effectiveness and transparency of industrial support programmes.

Copyright Business Recorder, 2026