Multan Chamber seeks tax-free zone in South Punjab

MULTAN, (APP - UrduPoint / Pakistan Point News - 13th Jun, 2026) While welcoming several measures announced in the Federal budget for FY2026-27,the Multan Chamber of Small Traders and Small Industry has urged the government to establish a tax-free zone in South Punjab and set up a Small Industrial Estate in Multan to promote economic activity,industrialization and employment in the region,here on Saturday.

Reacting to the budget,Senior Vice President(VP),Sheikh Mehboob Elahi termed the budget "largely balanced" but said there was considerable room for improvement.

He expressed disappointment over the government's decision not to reduce petroleum prices despite favourable international market conditions,arguing that elevated fuel costs continued to burden small traders as well as the general public.

Elahi also called for the expansion of the Fixed Tax Scheme, proposing that it be extended beyond retailers to include wholesalers and distributors in order to ensure greater uniformity in the taxation system.

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Highlighting the need for regional economic development,he stressed the importance of establishing tax-free zones in underdeveloped areas of the country.

He specifically demanded the creation of at least one tax-free zone in South Punjab and a Small Industrial Estate in Multan to attract investment and encourage industrial expansion.

He further suggested that industries set up within tax-free zones should be given a defined time-frame for project completion while industrial plots should be allotted on leases of at least 20 years to provide investors with long-term certainty.

The chamber leader also urged the government to increase salaries and pensions in accordance with inflation,maintaining that the announced seven per cent increase was insufficient to offset the rising cost of living.

According to Elahi,targeted incentives for businesses and industry in less-developed regions could help accelerate economic growth, generate employment opportunities and reduce regional disparities.