Budget FY27: PBC welcomes several growth-oriented steps

KARACHI: The Pakistan Business Council (PBC) has welcomed several growth-oriented measures announced in the Federal Budget 2026-27, describing them as clear signals that sustainable, inclusive economic growth is now a priority of the government.

While welcoming these measures, PBC emphasised that sustaining growth will require policy continuity and a continued focus on structural reforms which are imperative.

Commenting on the budget, Dr. Zeelaf Munir, Chairperson, Pakistan Business Council, said, “This budget reflects that the focus is beginning to shift towards sustainable economic growth, which is encouraging for businesses and investors alike. The relief measures announced, despite operating challenges and limited fiscal space, indicate an inclusive effort to support productive economic activity for all segments of society while also maintaining engagement with key stakeholders.

These measures are welcome and meaningful; they should be viewed as necessary first steps rather than the finish line. Consistency of Policy is the key.”

Javed Kureishi, Chief Executive Officer, Pakistan Business Council, said, “This budget sends an important signal that the government is listening to the stakeholders of Pakistan’s formal economy. We are pleased to see movement on the Super Tax, relief for the salaried class, and measures that reduce the tax burden on export proceeds, improving liquidity for exporters. These are issues PBC has consistently highlighted in its discussions with policymakers, so it is encouraging to see meaningful progress on them. We would particularly like to acknowledge the Prime Minister’s personal commitment and the Finance team’s hard work. We hope this collaborative approach continues as the government moves from budget announcements to implementation. A strong partnership between government and industry will be essential to achieving Pakistan’s economic ambitions.”

PBC called on the government to maintain momentum on broadening the tax base by bringing untaxed and undertaxed sectors into the formal economy, thereby reducing the burden on compliant taxpayers.

PBC also urged for accelerated energy sector reforms to bring industrial energy costs closer to regional benchmarks, faster privatisation of loss-making state-owned enterprises, and the adoption of a three-year reform framework that provides businesses with the certainty needed to plan, invest and grow.

Investor confidence will ultimately depend on consistency, predictability, and effective implementation. Businesses need confidence that reforms will continue beyond a single budget cycle. These reforms must remain central pillars of the government’s agenda if Pakistan is to achieve durable and inclusive economic growth.

PBC also acknowledges the hard work and commitment of the government’s economic team throughout the budget process and looks forward to continuing its engagement with policymakers to help advance Pakistan’s economic objectives.

The constructive dialogue between the government and the private sector in the lead-up to the budget is encouraging and reflects a shared commitment to the country’s long-term prosperity.

Pakistan’s long-term economic transformation will depend on sustained reforms, policy continuity, and a shared commitment between government and industry to build a more competitive and prosperous economy.

Copyright Business Recorder, 2026