‘Budget fell short of meeting expectations of industrial sector’

ISLAMABAD: Reacting to the federal budget, President of the Islamabad Industrial Association Omais Khattak said the budget fell short of meeting the expectations of the industrial sector. He added that the relief the business community was hoping for did not materialise.

While large-scale industry has received an exemption from the super tax, small industry has not been given any relief. The increase in levies will raise the cost of doing business for the industry. Instead of reducing withholding tax, it has been increased for non-filers.

The reforms announced for the FBR are welcome, but their implementation will be crucial, he added. “The announcement to eliminate customs duties in the budget is also positive, but we will have to see how much reduction is actually made,” Khattak remarked.

The government had promised improvements to the business environment, but no clear announcement was made in this regard. The increase in salaries and pensions is welcome, but it does not keep pace with inflation.

Copyright Business Recorder, 2026