Commerce Desk
ISLAMABAD: A high-level delegation of the business community, comprising Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), and Mian Zahid Hussain, Chairman Policy Advisory Board of FPCCI, held a cordial and highly constructive meeting with the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb Khan. The crucial meeting, which took place at the Finance Minister’s office in Islamabad on April 30, 2026, was also attended by Dr. Najeeb, Director General of Tax Policy, and other senior officials of the ministry. The core agenda focused on formulating a business-friendly Federal Budget for fiscal year 2026-2027 and resolving pressing issues related to the Federal Board of Revenue (FBR) taxes.
During the extensive deliberations, the business leadership apprised the Finance Minister of the acute challenges facing the industrial and commercial sectors in the current economic climate. Mr. Atif Ikram Sheikh highlighted that recent macroeconomic indicators present a mixed picture, requiring cautious policy interventions by the federal government. While international financial institutions project a modest Gross Domestic Product (GDP) growth recovery to 3.5 percent for 2026, the sharp resurgence in the consumer price index, which pushed the national inflation rate to 10.9 percent in April 2026, remains a severe headwind. This inflation directly impacts consumer purchasing power and significantly multiplies industrial production costs. Furthermore, the persistent burden of elevated energy tariffs, combined with stringent monetary policies and high borrowing rates, is steadily eroding the global competitiveness of Pakistani exports.
Mian Zahid Hussain underscored the urgent need for a paradigm shift in the national taxation machinery and the FBR’s operational framework. Mian Zahid Hussain noted that continuously squeezing existing taxpayers to meet the government’s aggressive revenue-collection targets is entirely counterproductive to sustainable industrial growth and to expanding the Pakistani economy from 405 billion dollars to its actual potential. Instead, he proposed that the upcoming federal budget must strongly focus on broadening the tax net horizontally, bringing historically untaxed and under-taxed sectors into the formal economy, and introducing a fair and equitable tax regime across the board. The business leaders collectively emphasized that formulating a truly growth-oriented budget is the only viable path forward to generate mass employment, revive stagnant industrial zones, boost export volumes, and build reliable fiscal buffers against ongoing global economic uncertainties.
Dr. Najeeb, Director General of Tax Policy, shared the government’s perspective on the FBR’s ongoing digitization and structural reform initiatives aimed at plugging revenue leakages and seamlessly facilitating genuine taxpayers. The discussion specifically focused on rationalizing import duties on raw materials, addressing the glaring anomalies in the standard sales tax regime, and ensuring the timely processing of tax refunds through FASTER, which frequently causes severe liquidity crunches, especially for SME exporters.
The President FPCCI and Chairman Policy Advisory Board of FPCCI submitted actionable proposals for the incoming budget, demanding simplified tax filing procedures, digitalisation of the business transactions and the immediate elimination of discretionary powers held by tax officials to curb administrative harassment.
Federal Finance Minister Mr. Aurangzeb Khan assured the delegation that the federal government is fully cognizant of the business community’s grievances and is committed to implementing business-friendly fiscal policies. He reiterated that the Prime Minister’s broader economic vision heavily relies on private-sector-led growth, and the upcoming Federal Budget will reflect this collaborative approach. The Minister appreciated the highly constructive suggestions put forward by Mr. Atif Ikram Sheikh and Mian Zahid Hussain, promising that their comprehensive recommendations regarding tax rationalization and export facilitation would be given serious consideration during the finalization of the upcoming Finance Bill. The meeting concluded on a positive and hopeful note, with both sides agreeing to maintain continuous liaison to steer Pakistan toward long-term economic stability and prosperity.
