FCCI hails budget incentives as catalyst for investment, exports revival

FAISALABAD, (APP - UrduPoint / Pakistan Point News - 12th Jun, 2026) President Faisalabad Chamber of Commerce & Industry (FCCI) Farooq Yousaf Sheikh on Friday welcomed the incentives announced in the Federal Budget 2026-27 for the real estate, industrial, export and business sectors, describing them as a significant step towards economic revival, investment promotion and expansion of the tax base while urging the government to allocate greater resources to health and other major social sectors.

Reacting on the federal budget after hearing budget speech on a big screen at FCCI complex, he said that a number of measures introduced by the government would help restore the confidence of business community, accelerate economic activity and strengthen Pakistan’s positive economic image at the international level.

However, he emphasized that additional attention and funding were still required for health and other public welfare sectors to ensure balanced and sustainable development.

He said that the real estate and construction sectors served as the backbone of national economy as dozens of industries were directly or indirectly linked with them.

Whenever the real estate sector gained momentum, its positive effects spread across the entire economy through increased industrial activity, employment generation and investment flows, he added.

He termed the reduction in withholding tax on property transactions to 2.75 percent and the lowering of certain other taxes on the purchase and sale of properties as a positive and far-reaching decision.

These measures would reactivate investment, encourage market participation and stimulate broader economic activity, he added.

The FCCI President said that the business community had long been demanding relief from taxes and financial burdens that were hindering investment and commercial growth.

He appreciated the government for providing relief to important sectors in the budget and commended the Prime Minister, Finance Minister and the economic team for taking practical steps to strengthen the economy.

He said that sustainable economic growth depended on the development of the private sector. Whenever businesses were provided confidence and facilitation, the benefits emerged in the form of higher production, greater employment opportunities and increased national income, he added.

Welcoming the reduction in super tax for exporters from 10 percent to 8 percent, he said that easing the burden on small exporters had been a longstanding demand of the export community.

He said that the government had also reduced certain taxes that were creating obstacles to export growth, which would contribute to improve the competitiveness of Pakistani products in international markets.

He said that Pakistan’s foremost economic priority should be increasing exports and strengthening foreign exchange reserves. In view of intense competition in global markets, the exporters required lower operational costs and better financial facilities. The reduction in super tax and other incentives would provide encouragement to exporters and help boost export-oriented economic activities, he added.

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He also welcomed the abolition of fees on business-class air tickets for business travelers, describing it as a constructive measure to facilitate exporters and industrialists seeking access to international markets.

He said that Pakistani entrepreneurs frequently travelled abroad to explore new opportunities, participate in trade exhibitions and strengthen relations with international buyers, and the new facilitation would support those efforts.

He termed the reduction in taxes on credit card transactions an important step towards promoting a documented economy.

He said that modern economies were built on transparent and digital financial systems while excessive taxation in the past had discouraged many people from using banking channels and digital payment methods. The latest measure would enhance financial transparency and simplify business operations, he added.

FCCI President also appreciated the introduction of a fixed tax regime for small traders, saying that confidence-building was imperative for bringing millions of small businesses into the tax net.

He pointed out that the number of taxpayers in Pakistan remained low as compared to the country’s population and economic size.

By engaging traders positively and simplifying taxation procedures, the government could significantly increase voluntary tax compliance and national revenue collection, he added.

Referring to the increase in salaries and pensions of government employees, he described the move as a welcome relief measure in the prevailing inflationary environment.

However, he stressed the need for policies that would reduce production costs for industries and businesses, enabling them to create more jobs and offer better wages to workers.

Commenting on the allocation of over Rs3 trillion for defense, he said that the funding was necessary in view of national security requirements.

He paid tribute to Pakistan’s armed forces for their role in safeguarding national security, stability and the country’s international standing, adding that a secure and stable Pakistan was the foundation of a strong and resilient economy.

He urged the government to capitalize on this improved perception by encouraging both foreign investors and overseas Pakistanis to invest in the country.

He stressed the importance of narrowing the gap in educational facilities between urban and rural areas to ensure equal opportunities for all children.

He urged policymakers to consider increasing allocations for modern hospitals, healthcare facilities and public health initiatives before the budget’s final approval.

Expressing optimism, FCCI President said that the government would seriously consider proposals submitted by the business community and other stakeholders during the budget approval process.

He said that Pakistan’s economic challenges could be overcome through national unity, policy continuity, investment promotion, export growth and sustained attention to critical sectors such as education and health.