LCCI terms federal budget as balanced for economic stability

LAHORE, (APP - UrduPoint / Pakistan Point News - 12th Jun, 2026) Lahore Chamber of Commerce and Industry (LCCI) Friday termed the Federal Budget 2026-27 a balanced budget that contains several positive measures for economic stabilization and documentation, while emphasizing the need for greater focus on investment-led growth, industrial expansion and employment generation.

LCCI President Faheem Ur Rehman Saigol, Senior Vice President Tanveer Ahmad Sheikh and Vice President Khurram Lodhi, while reacting to the budget, appreciated a number of relief measures announced by the government.

The LCCI office-bearers welcomed the abolition of Section 7E, reduction in property transaction taxes, reduction in tax rates for salaried individuals, lowering of export-related taxes and various initiatives aimed at improving tax administration and documentation.

President LCCI Faheem Ur Rehman Saigol said that the budget reflects the government's commitment to fiscal discipline and economic stability. He said that measures to facilitate taxpayers, improve documentation and encourage investment are steps in the right direction. However, Pakistan now needs policies that can accelerate economic growth, increase industrial output and enhance export competitiveness.

He said that the country requires a stronger development agenda focused on industrialization, infrastructure development, water security, technological advancement and value-added exports. He added that greater incentives for productive sectors would help attract investment and create jobs for the growing population.

Senior Vice President Tanveer Ahmad Sheikh said that broadening the tax net remains essential for sustainable fiscal management.

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He appreciated efforts to improve compliance through digitization and faceless systems but emphasized that undocumented sectors should be brought into the formal economy to ensure a fair and equitable taxation system.

Vice President Khurram Lodhi said that while the budget contains several encouraging measures, a more comprehensive package for SMEs and industry would have strengthened business confidence. He stressed the need for lower energy costs, affordable financing and regulatory reforms to improve Pakistan's competitiveness in regional and global markets.

The LCCI office-bearers appreciated the government's efforts to maintain macroeconomic stability and expressed hope that the concerns of the business community would be addressed during the parliamentary budget discussions.

However, they noted that certain key sectors critical to Pakistan's long-term economic growth require greater attention. They observed that the budget should have a roadmap for industrial growth, SMEs, agriculture and the IT sector, which are among the major drivers of exports, investment and job creation.

They further noted the ambitious tax collection target of Rs 15.264 trillion and stressed that revenue objectives should primarily be achieved through expansion of the tax base rather than increasing the burden on existing taxpayers.

The Chamber also suggested that alongside social protection initiatives, greater investment should be made in skills development and human capital to create sustainable employment opportunities.