KARACHI: The Pakistan Business Forum (PBF) has submitted its budget proposals for the fiscal year 2026–27 to the Ministry of Finance, urging the government to adopt a clear and comprehensive strategy to steer the economy toward sustainable growth in the upcoming federal budget.
President of the Pakistan Business Forum, Khawaja Mehboob ur Rehman, stated that the business community is currently facing significant frustration and uncertainty, emphasising the need for immediate, business-friendly measures to restore confidence.
The PBF has strongly recommended the complete abolition of the Super Tax, noting that it was initially introduced as a temporary measure but has effectively become permanent.
The Forum underscored that Pakistan’s cost of doing business is currently estimated to be approximately 34 percent higher than that of regional competitors, making it imperative for the government to introduce targeted reforms to enhance competitiveness and attract investment.
In this context, the PBF emphasised that the upcoming federal budget must prioritise reducing the cost of doing business while ensuring sustainable and equitable revenue generation.
It stressed the need for policy measures that support economic growth, industrial expansion, and improved competitiveness in both domestic and international markets.
To facilitate business activity, the PBF reiterated its recommendation to repeal Sections 37AA, 37B, 14AC, and 14AD of the Finance Bill. It also proposed a gradual reduction in corporate tax rates to provide relief to the business community.
To broaden the tax base and improve documentation of the economy, the Forum suggested the introduction of a fixed monthly tax of PKR 10,000 for traders, with simplified compliance mechanisms, including the option of collection through electricity bills.
The Forum further recommended rationalising taxes and surcharges on electricity bills across domestic, industrial, and commercial sectors to reduce operational costs. It also called for improved access to credit finance, particularly for small and medium enterprises (SMEs) and startups, to promote entrepreneurship and inclusive economic growth.
To support textile exports and revive the agriculture sector, the PBF called for the abolition of sales tax on local cotton seed and oil cake, noting that domestic cotton production has declined sharply from approximately 15 million bales to nearly 5 million bales over the past four decades.
Under the Green Pakistan Initiative, the PBF proposed a seven-year tax holiday for corporate farming to encourage large-scale agricultural investment and bring more land under cultivation.
In the construction sector, the Forum recommended abolishing Section 7E and introducing amendments to Sections 8 and 8B to revive investment.
The PBF also suggested reviewing the continuation of tax exemptions for Fata/Pata, noting that sufficient transitional time has already been provided under previous finance measures.
Additional proposals included restricting non-filers from owning more than three vehicles, implementing effective measures to curb under-invoicing, and enhancing transparency in housing societies by transitioning companies to a public limited structure. According to the PBF, these measures will improve corporate governance, enhance tax collection, and safeguard public investment.
The Pakistan Business Forum expressed hope that the forthcoming federal budget will be business-friendly, growth-oriented, and aligned with the broader objective of economic stability and prosperity.
The forum also conveyed its willingness to engage further with policymakers to discuss these proposals in detail, where required.
Copyright Business Recorder, 2026