HYDERABAD: Hyderabad SITE Association of Trade and Industry Chairman Zubair Ghangra, Senior Vice President Aamir Shahab and Vice President Esar Kumar, in their detailed and joint response to the federal budget 2026-27, have said that the government’s tariff reforms, improvements in the tax system and some digitalization measures are partially positive developments for the industrial and commercial sector, however, overall this budget appears to fail to meet the country’s real economic needs, industrial development, employment promotion and export expansion goals.
He said that the reduction in the cost of industrial raw materials and machinery through reduction in customs duty, additional customs duty and regulatory duty under the National Tariff Policy 2025-30 is a positive step, while measures such as relief on agricultural machinery, reduction in withholding tax on exports, extension of incentives for IT exports and partial reduction in super tax can be expected to improve the investment climate. However, according to him, these measures are insufficient for real industrial revival as fundamental structural problems still exist.
Office bearers of the SITE Association said that the current budget highlights limited class incentives and administrative reforms rather than the common man and the productive economy. According to them, such measures that are related only to the high-income classes or limited financial activities do not have a wide impact on the overall economy. He said that the business community is currently the most vulnerable to high energy prices, expensive loans and unstable production costs, but the budget has not presented any comprehensive strategy to address these fundamental problems.
Chairman Zubair Ghangra said that the most important factor for industrial development is the cost of energy, but no clear measure has been included to reduce electricity and gas prices. According to him, the industrial zones of Sindh, including Hyderabad division, are constantly facing basic infrastructure problems, but no special package has been unveiled for their improvement, which is regrettable.
Senior Vice President Aamir Shahab said that the main focus of the budget is on revenue collection and increasing compliance, while there is no comprehensive program for industrial expansion, development of SMEs and creation of employment opportunities. He said that the country’s economy is already burdened by debt and this budget also continues to have a huge fiscal deficit and dependence on debt, which is a dangerous trend for long-term economic stability. According to him, the same types of budgets are being presented again and again, which lack basic structural reforms.
Vice President Asar Kumar said that Hyderabad, Kotri and other industrial clusters are facing serious problems in basic infrastructure like roads, water, drainage and industrial facilities, but no significant investment has been included in the budget for these sectors. According to him, without industrial development, neither employment can be created nor can exports increase.
HSATI officials jointly said that while tariff reforms, digital reforms and limited tax relief are welcome, overall the budget reflects a traditional, un-developmental and limited thinking, which is neither sufficient for industrial revival nor provides relief to the common citizen. They said that the country needs a comprehensive economic vision that gives centrality to production, exports, employment and investment. He demanded that the government immediately present a comprehensive industrial and economic package that includes a significant reduction in energy prices, provision of easy and cheap loans to SMEs, improvement of industrial infrastructure, and special incentives for other industrial areas including Hyderabad Division, so that real and sustainable economic growth is possible.
Copyright Business Recorder, 2026