Pakistan's top business chamber welcomed targeted tax relief measures in the federal budget 2026-27 but said the government must now move beyond macroeconomic stabilization toward sustained industrial and export-led growth. The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) said the budget reflected partial progress but fell short of the structural reforms needed. ### What did FPCCI say about the Pakistan budget 2026-27? FPCCI president Atif Ikram Sheikh acknowledged encouraging signs of economic stability, including GDP growth of 3.7% and a fiscal deficit of 0.7% of GDP. But he said the federal budget must do more than balance revenues and expenditures. It must guide Pakistan's transition from stabilization to robust economic growth, he added. ### Which budget measures did FPCCI welcome? The federation said several of its pre-budget recommendations were incorporated into the PKR 18.7 trillion budget. Among the measures it welcomed were the abolition of the Capital Value Tax on foreign assets and the removal of the Federal Excise Duty on international business class travel. FPCCI also praised changes to the super tax, including its abolition across six income slabs up to PKR 500 million, a reduction in the rate from 10% to 8% for higher incomes, and a full waiver for exporters. The removal of a surcharge on salaried individuals and across-the-board income tax reductions also drew support. Other welcomed measures included the extension of a 0.25% final tax rate on IT exports until June 2029, a 50% cut in withholding tax rates for filers in the construction sector, a new 1% fixed sales tax scheme for retailers with annual sales below PKR 200 million, and a revised 1.25% minimum tax for exporters. ### What concerns did FPCCI raise about the budget? Despite welcoming several measures, Sheikh said broader economic indicators remained troubling. He said the investment-to-GDP ratio stood at 14.38% while the savings rate had declined to 14.13%. Urban poverty had risen from 11% to 17%, which he said reflected weakening business activity across the country. FPCCI also flagged the Federal Board of Revenue's tax collection target of PKR 15.2 trillion, a 17% increase over the previous year, and a petroleum levy target of PKR 1.7 trillion, up 18%. The federation warned both targets risked stoking inflation, particularly given high international oil prices. ### What proposals did FPCCI say were left out of the budget? The federation said several of its key demands were not addressed in the budget speech. These included restoring the Final Tax Regime for exporters, reducing corporate and turnover tax rates, eliminating the minimum tax regime and further tax, withdrawing the repeal of Section 8B of the Sales Tax Act, and expanding digitalization across the economy. Sheikh said the budget's measures sent mixed signals on industrialization, job creation and higher growth. He called on the government to prioritize productivity enhancement, export diversification and reducing the cost of doing business in the next phase of reforms. FPCCI said it would not issue a final assessment immediately. It plans to conduct a detailed review of the Finance Bill over 48 hours in consultation with chambers, trade associations and other stakeholders before releasing a comprehensive response.

KARACHI – Former Vice President of the Federation of Pakistan Chambers of Commerce & Industry(FPCCI) and Secretary General of the ruling Businessmen Panel at FPCCI, Khurram Ijaz, has urged the Sindh Government to allocate billions of rupees collected under the Infrastructure Cess towards the development of Karachi’s deteriorating infrastructure. He emphasized that if these funds […] The post Khurrum Ijaz demands allocation of infrastructure cess funds for Karachi’s infrastructure appeared first on Daily Pakistan English News.

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Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Business community condemns negative propaganda against Pakistan's GSP+ status – Full Analysis. Senior vice president says status was secured through strict compliance with all required regulations FPCCI officials addresses a press conference in Karachi. SCREENGRAB The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday strongly condemned what its members described as a "negative propaganda campaign" against the country's status for the European Union’s Generalised Scheme of Preferences Plus (GSP Plus) scheme, warning that no one would be allowed to conspire on such a sensitive issue.

FPCCI and pseb to form joint working group to help exploit IT export potential.

LAHORE/ISLAMABAD: The business community on Monday gave a mixed response to the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 11.5 per cent, with some backing the move while others called for further cuts to revive investment and industrial activity. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed disappointment over the decision of the SBP’s Monetary Policy Committee (MPC) to maintain the policy rate at 11.5pc, saying trade and industry are in dire need of some breathing space amid the current stagnation-prone economic environment. The apex trade body has termed the decision as highly contractionary and counterproductive — warning that holding the benchmark interest rate at an oppressive level will continue to severely stifle economic activity and undermine industrial revival efforts across the country. “Monetary policy was the only, but potent, tool available to the authorities to provide some relief at the moment, but it remained unutilised,” it added. FPCCI President Atif Ikram Sheikh said the business community had demanded a reduction in the policy rate to single-digit to help bring down the exorbitant cost of doing business. He elaborated that the central bank’s overly cautious approach directly contradicts current economic realities — and, denying much needed support to trade & industry as trade deficit has climbed by 18.1pc in July-August 2026 on year-on-year basis. He maintained that the industry is currently battling an existential crisis driven by elevated energy tariffs, burgeoning petroleum prices, geo-economic uncertainty, and sky-high financing costs, direc­tly resulting in stagnating industrialisation across the country. The Overseas Investors Chamber of Commerce and Industry (OICCI) termed the SBP’s decision to keep the policy rate unchanged at 11.5pc a prudent and balanced approach in the current economic environment. It said that while inflation and core inflation remained elevated, stronger foreign exchange reserves, robust remittances and an uneven industrial recovery supported the case for avoiding further tightening at this stage. The decision provides businesses with policy continuity and some space for investment planning; however, the pause should not be seen as a substitute for reforms, the OICCI said. The chamber urged the government to reinforce monetary stability through fiscal discipline, energy-cost rationalisation, tax predictability, expedited tax refunds and faster ease-of-doing-business reforms so that macroeconomic stability could translate into stronger competitiveness, investment and sustainable private-sector-led growth. The Rawalpindi Chamber of Com­merce and Industry supported the MPC’s decision to maintain the policy rate at 11.5pc, saying global inflationary pressures arising from the conflict in the Middle East involving Iran had pushed up international energy and commodity prices. As a net importer of fuel, Pakistan remains directly exposed to these shocks. “In such an environment, a steady hand on monetary policy protects the stability that has been achieved with considerable effort over the past two years,” RCCI President Usman Shaukat said in a statement issued on Monday. The Korangi Association of Trade and Industry President Muhammad Ikram Rajput expressed that high interest rates were slowing the recovery of industrial activity, new investment and the export sector. _Published in Dawn, September 15th, 2026_

HYDERABAD: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concern over the sales tax hike on hybrid vehicles, from 8.5 per cent to 25pc, and warned that this short-sighted policy would hurt consumers and cripple the auto industry. In a statement issued on Saturday, Adeel Siddiqui, a member of the FPCCI Executive Committee, noted that tax concessions on hybrid vehicles expired on June 30 and with no new auto policy notified in time, the Federal Board of Revenue restored the general sales tax rate of 25pc on hybrid electric vehicles and plug-in hybrid vehicles. He said that this represented a massive increase from earlier preferential rates of 8.5pc for hybrids up to 1800cc and 12.75pc for those above 1800cc. So, he said, the auto industry was in chaos and automakers have temporarily halted production and stopped issuing invoices because they do not know which sales tax rate to apply. > Calls for notifying new auto policy immediately He said that a production halt affected thousands of workers, vendors, and transporters, as well as factory workers, who were losing work and wages due to this policy vacuum. He stated that Pakistan’s energy security was at risk, as it imports about 80pc of its petroleum products, making transport electrification a matter of national security. He said that the government was discouraging fuel-efficient vehicles and keeping the country dependent on expensive imported fuel by making hybrids more expensive. Secondly, he said, investor confidence was eroding, and policy uncertainty was damaging it in new-energy vehicle projects. He said that policy remained regressive, wondering why the government was increasing taxes on hybrids — which offer lower running costs and reduced fuel consumption — while reportedly considering tax relief on vehicles priced above Rs10m. He said that this sends a confusing signal about the government’s policy priorities. He called for an immediate rollback of 25pc sales tax on hybrid vehicles, or at least a reduction to 18pc until the new auto policy was finalised. He demanded that Auto Policy 2026-31 should be notified without delay to provide clarity and stability to the industry. He stressed the need for a phased transition to clean energy with incentives tied to local manufacturing and technology transfer. He said that current policy was a self-inflicted wound that would slow Pakistan’s transition to fuel-efficient vehicles, increase fuel import costs, and damage the auto industry at a time when it was showing signs of recovery. He said that it was high time to act before damage was done to Pakistan’s automotive sector and energy security. _Published in Dawn, August 16th, 2026_

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) signed a Memorandum of Understanding on Thursday to strengthen bilateral trade. The agreement was signed in Islamabad during the closing ceremony of the 10th session of the Pakistan-Iran Joint Trade Committee. #### What is the agreement between Pakistan and Iran? The MoU commits FPCCI and ICCIMA to promoting barter trade, strengthening business-to-business linkages, and expanding industrial cooperation and investment. It also aims to facilitate bilateral trade agreements and activate joint border markets. Both sides set a shared target of raising bilateral trade to $10 billion. #### Who signed the Pakistan-Iran trade MoU? Atif Ikram Sheikh, President of FPCCI and holder of several regional chamber roles including the ECO Chamber presidency and SCO Business Forum deputy chairmanship, signed on Pakistan's behalf. Hossein Pirmoazzen, Vice President of ICCIMA, signed for Iran. The Joint Trade Committee session itself was co-chaired by Pakistan's Commerce Minister Jam Kamal Khan and Iran's Minister for Industry, Mines and Trade, Dr Mohammad Atabak. #### What did the two-day trade committee session cover? Over two days, both sides held detailed discussions on expanding bilateral trade and economic cooperation, reaching key understandings across multiple sectors. They agreed on a comprehensive roadmap to address challenges facing business communities in both countries. At the session's conclusion, the two commerce ministers signed agreed minutes documenting the outcomes of the talks. ### Who attended the MoU signing ceremony? The ceremony drew a wide range of officials from both countries. Pakistan's delegation included FPCCI Vice President Tariq Khan Jadoon and Karim Aziz Malik, In-charge of the FPCCI Capital Office. Iran's delegation included Ambassador Dr Reza Amiri Moghadam, chamber presidents from Kerman and Zahedan, and commission chairmen from the Tehran Chamber covering trade facilitation, energy and transportation, along with several company executives and Iran Chamber officials. ### What did FPCCI's president say about the trade deal? Sheikh described the Joint Trade Committee session as a historic milestone in Pakistan-Iran economic relations. He reaffirmed the Pakistani business community's commitment to working with Iranian counterparts to reach the $10 billion bilateral trade target. He welcomed the governments' plan to address border-related trade issues and said stronger FPCCI-ICCIMA collaboration would open new opportunities for trade, investment, and regional economic integration.