KARACHI: President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has described the federal government’s; Rs 18.771 trillion budget for fiscal year 2026-27 as a positive step toward restoring business confidence, reviving industrial activity, and promoting economic growth.
However, he emphasized that the budget’s success would ultimately depend on effective implementation, industrial facilitation, and tangible measures to enhance exports.
Rajput noted that the government has set ambitious targets of Rs15.264 trillion in tax revenue and Rs5.336 trillion in non-tax revenue. Given the prevailing economic conditions and Pakistan’s position as one of the highest-cost production environments in the region, achieving these targets would be a significant challenge, he said.
He stressed that sustainable economic growth requires expanding the tax base and documenting the economy rather than imposing additional burdens on existing taxpayers.
Welcoming the allocation of Rs10 billion for Karachi’s K-IV Bulk Water Supply Project, Rajput said Karachi remains the industrial and economic lifeline of Pakistan but has suffered for decades from inadequate infrastructure and basic public services. He remarked that the timely completion of the K-IV project is not only critical for Karachi but also for the national economy.
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However, he expressed concern that the budget lacks a clear policy framework for highways and broader infrastructure development.
Given Karachi’s contribution to industrial output, investment, and national revenue, he urged the federal government to allocate additional resources for the city’s development projects.
The KATI president also welcomed the abolition of the 9 percent surcharge on salaried individuals and the reduction in income tax slabs, describing these measures as positive for economic activity. He further appreciated the increase in the minimum wage but argued that the budget largely overlooks measures aimed at increasing industrial profitability and promoting industrialization across the country.
Rajput described the proposed reduction in super tax and the abolition of Capital Value Tax (CVT) on foreign assets as major relief measures for the business community.
He noted that the complete elimination of super tax on income up to Rs500 million and the reduction of the tax rate from 10 percent to 8 percent on higher incomes had long been key demands of the industrial sector. The reduction in super tax is expected to encourage investment, lower business costs, and support industrial expansion, ultimately generating positive impacts on employment and national income, he noted.
Commenting on the export sector, he acknowledged that the budget contains certain positive measures for exporters but cautioned that tax relief alone would not be sufficient to achieve substantial export growth.
He called on the government to reduce energy costs for industry, ensure timely payment of export refunds, strengthen export financing schemes, and introduce industrial reforms aimed at lowering production costs and improving competitiveness in international markets.
Copyright Business Recorder, 2026
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