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Business Recorder
15 hours ago
- Business
- Business Recorder
FPCCI's BMP says budget lacks strategy to revive economy
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has raised strong concerns over the Federal Budget, calling it a document full of theoretical optimism but lacking the concrete execution strategy required to address Pakistan's deep-rooted economic and industrial challenges. The BMP leadership said the government missed a critical opportunity to push forward structural reforms and provide the private sector with practical relief to overcome prevailing financial hardships, rising production costs, and export stagnation. BMP Chairman and former FPCCI President Mian Anjum Nisar said the budget failed to outline any viable roadmap for industrial expansion, job creation, or meaningful growth in the manufacturing sector. He regretted that instead of facilitating businesses, the budget has prioritised tax revenue goals without fixing fundamental issues affecting productivity and competitiveness. He stressed that Pakistan's economic revival is not possible without the active engagement and support of the business community, which continues to feel sidelined despite repeated promises of stakeholder-driven policy. Nisar criticised the government's excessive reliance on indirect taxation and short-term fiscal tools, warning that such an approach will only widen inequality and hinder long-term economic planning. He pointed out that the government has introduced aggressive tax measures without corresponding reforms in documentation and enforcement, creating fears of harassment among already compliant businesses. He strongly opposed granting tax authorities unchecked powers, such as freezing business accounts without prior notice, terming them anti-business and contrary to the spirit of voluntary compliance and trust-building. He said that the Rs1,000 billion earmarked for development spending is inadequate to meet the pressing infrastructure needs of Pakistan's economy, especially in industrial zones, ports, logistics corridors, and power transmission lines, adding unless these funds are used transparently with strict project prioritisation, they will have minimal impact. He urged the government to revive long-stalled industrial and transport infrastructure projects, which are essential to improving supply chains and reducing the cost of doing business. He also expressed serious disappointment over the continued neglect of value-added sectors, particularly textile, apparel, and light engineering, which are the backbone of Pakistan's export economy. Nisar reiterated the BMP panel's longstanding demand for the revival of the zero-rated regime and the removal of procedural hurdles in sales tax refunds. He noted that working capital remains stuck in refund cycles, which creates a liquidity crisis for exporters already struggling with thin margins and delayed shipments. He called for a complete rethinking of the country's tax strategy. Instead of placing more burdens on the formal sector, the government should broaden the base by targeting untaxed segments and expanding documentation through rational incentives. The business community has long urged for a simplified and predictable tax regime with reduced compliance costs, which remains unmet in the current budget. The panel emphasized that a true economic turnaround can only be achieved through structural reforms, reduced dependency on IMF programs, and the formulation of a long-term industrial policy. It pointed out that over reliance on remittances, foreign loans, and import-based revenues is unsustainable and exposes the country to repeated cycles of crisis. BMP urged the government to shift from short-term fire fighting to institutional capacity-building, export diversification, and innovation-led growth. BMP reaffirmed its commitment to standing with Pakistan's business community and offering constructive solutions, but stressed that the government must match its words with action and work hand in hand with stakeholders to lift the economy from stagnation toward sustainable, inclusive growth. Copyright Business Recorder, 2025
Business Recorder
12-06-2025
- Business
- Business Recorder
Business bodies say budget lacks required incentives to revive struggling industries
LAHORE: Major business bodies have expressed significant reservations about the Federal Budget 2025-26, warning it lacks the strategic vision and incentives needed to revive Pakistan's struggling industries and attract vital investment. The Businessmen Panel (BMP) declared the budget risks pushing the economy further off the recovery path, citing a critical absence of measures to stimulate industrial activity, reduce crippling energy costs, or ease the cost of doing business. While the Pakistan Industrial and Traders Associations Front (PIAF) acknowledged some positive steps like tax simplification, it cautioned that overly optimistic revenue targets and the failure to address core issues like high electricity tariffs and interest rates overshadow these gains and hinder sustainable growth. The BMP of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has voiced serious reservations over the Federal Budget 2025-26, criticizing it for lacking any meaningful incentives to stimulate trade, investment, and industrial revival. BMP Chairman Mian Anjum Nisar has urged the government to immediately rectify policy anomalies, cautioning that the budget, if left uncorrected, could push Pakistan further away from the path of economic recovery. The BMP chairman maintained that 'while the budget may satisfy certain technical benchmarks, it does not reflect the pressing needs of the productive sectors of the economy.' He observed that the private sector had hoped for a more balanced and growth-oriented fiscal plan—one that would offer clear direction for industrial revitalization and export development—but instead received a document heavily focused on revenue collection and administrative compliance. According to Anjum Nisar, the government has missed a crucial opportunity to send positive signals to investors and entrepreneurs. Despite challenging global conditions and domestic constraints, the budget does not contain a strategy to stimulate industrial activity, improve business competitiveness, or reduce the excessive cost burden on manufacturers and exporters. 'This is not the kind of budget that can revive economic momentum,' he said. He warned that enforcing compliance without parallel incentives will dampen entrepreneurial energy. The increase in utility tariffs, particularly for gas—an essential input for various industries—without any relief measures, will directly affect export-oriented sectors and small businesses already battling high operational costs. He questioned the rationale behind burdening industries with unaffordable energy while speaking of industrial growth. Anjum Nisar said the absence of targeted steps to boost local production capacity and attract investment shows a lack of clarity in the government's economic vision. He stressed that the government needs to look beyond revenue targets and short-term fiscal adjustments. 'What the economy demands today are bold and focused steps to ease doing business, reduce energy costs, improve infrastructure, and enhance export potential.' Highlighting the significance of industrial performance in determining national stability, the BMP leader stated that the government should have come up with a practical roadmap to strengthen domestic industries, support SMEs, and introduce tax simplifications to widen the base instead of squeezing the existing compliant segments. Unfortunately, the budget continues to rely on conventional tools without offering real innovation or long-term direction. He was also disappointed by the limited allocation for public infrastructure development, pointing out that the proposed development expenditures fall short of what is required to uplift logistics, water supply, power transmission, and road connectivity—critical elements that facilitate business and trade. He emphasized that any meaningful strategy for growth must go hand in hand with investment in infrastructure, especially in urban industrial hubs. The BMP chairman further criticized the absence of reforms to address credit access and financing issues faced by industries. High interest rates continue to choke expansion plans and discourage entrepreneurship. Without a clear pathway to affordable financing, real sector growth will remain constrained, he noted. He questioned the logic behind setting overly ambitious targets for revenue and growth in the absence of a concrete enabling framework. 'The ground reality doesn't match the projections presented in the budget. Unless core challenges are addressed, the macroeconomic indicators cannot show lasting improvement,' he stated. Anjum Nisar noted that 'Pakistan cannot continue to rely solely on remittances or external borrowing for economic survival. It must build an export-led model backed by value-added manufacturing, technology enhancement, and trade diversification. The budget, however, fails to initiate such transformation, lacking strategic sectoral planning or industrial deepening.' He emphasized that the economy is at a stage where growth must take precedence over compliance. The private sector requires reassurance through facilitation, not surveillance. Instead, the tone of the budget sends a message of rigidity and pressure rather than cooperation and partnership with the business community. Copyright Business Recorder, 2025
Business Recorder
26-05-2025
- Business
- Business Recorder
BMP voices its concerns over delay in budget presentation
LAHORE: The Federation of Pakistan Chambers of Commerce and Industry's Businessmen Panel (BMP) has expressed serious concern over the government's decision to delay the presentation of the federal budget for the fiscal year 2025-26 and the possible imposition of additional levies, including a sharp hike in the petroleum levy. The BMP Chairman and FPCCI former president Mian Anjum Nisar termed these developments deeply troubling for the already struggling business community and warned that such decisions would further strain the economy and damage investor confidence. He said that the federal government recently shelved its plan to present the budget on June 2 and is now expected to unveil the fiscal plan on June 10. The delay has been attributed to Prime Minister Shehbaz Sharif's foreign tour as well as internal disagreements over the finalisation of expenditures. He said that this postponement creates unnecessary uncertainty at a time when the business environment is already fragile due to inflation, high energy costs, and sluggish growth. Mian Anjum Nisar stated that the delay in the budget presentation sends a negative signal to the market, businesses, and foreign investors who are waiting for policy clarity. He said that businesses plan their fiscal year strategies based on expected policy announcements, and any delay hampers their ability to make timely decisions regarding investment, procurement, and employment. He added that the lack of transparency around budget planning is further eroding trust between the business community and the government. The BMP is particularly concerned about the government's reported move to increase the petroleum levy, which currently stands at Rs78 per litre. The government is reportedly considering raising this levy further in order to finance a larger Public Sector Development Programme (PSDP) of Rs1 trillion for the next fiscal year. Mian Anjum Nisar warned that any additional levy on petroleum products would result in a significant increase in the cost of doing business, leading to a rise in inflation and further weakening the purchasing power of consumers. He noted that fuel is a key input for industries, transportation, and agriculture, and any increase in its price has a ripple effect across the entire economy. Instead of increasing indirect taxes like the petroleum levy, Nisar urged the government to focus on broadening the tax base, curbing unnecessary expenditures, and implementing structural reforms to improve revenue collection without burdening businesses and the general public. He also criticised the lack of stakeholder consultation in budget-making, especially when businesses are the biggest contributors to taxes and employment. Nisar said that the upcoming budget appears to be driven largely by the International Monetary Fund's directives, with little attention paid to the domestic realities faced by industrialists and exporters. He stressed that the government must engage with business leaders to frame policies that are sustainable and practical, rather than relying solely on external advice. The BMP also raised concerns about possible cuts to subsidies and increased energy costs in the upcoming budget. Nisar warned that the business community will not be able to absorb any further increases in electricity and gas prices, as production costs have already reached unaffordable levels. He said that many industrial units, especially small and medium enterprises, are on the verge of closure due to high input costs and lack of support from the government. The panel also criticised the government's handling of the circular debt issue in the petroleum sector. The plan to use inflated dividends from state-owned enterprises to clear circular debt lacks transparency and may lead to market distortions. Nisar said that instead of adopting temporary fixes, the government should address the structural flaws in the energy sector, including mismanagement, inefficiencies, and losses in transmission and distribution. Nisar further said that the recent abnormal increase in the share price of Pakistan State Oil (PSO), despite its poor financial condition, raises serious questions. He supported the IMF's decision to seek more clarity before approving the government's plan and expressed concern over the exclusion of PSO from the debt retirement scheme. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
‘Tax Law Ordinance can negatively impact businessmen'
KARACHI: Chairman of the Businessmen Panel (BMP) and former FPCCI president Mian Anjum Nisar stated that the recently enforced Tax Laws (Amendment) Ordinance 2025 was issued without consulting relevant stakeholders, and no parliamentary debate was held on the matter. He warned that this ordinance could negatively impact the business community and undermine the rule of law. He added that a BMP delegation will soon meet with Prime Minister Shehbaz Sharif to discuss these pressing concerns. Anjum Nisar expressed these views while speaking at a dinner hosted by former FPCCI president Mian Nasser Hyatt Maggo. The dinner was also attended by Abdul Rahim Janoo, Zikriya Usman, Rafique Suleman, Haji Usman Ghani, Hanif Lakhani, Suleman Chawla, and Sultan Rehman. He further stated that the extraordinary powers granted to tax authorities through the ordinance are akin to 'economic terrorism' and cannot be accepted. Mian Nasser Hyatt Maggo highlighted the multiple challenges faced by the business sector, particularly importers, who face frequent disruptions that increase import costs. He urged the government to pay serious attention to these issues. He also praised the Pakistan Army for its timely and effective action under the leadership of General Asim Munir, which he said dealt a heavy blow to Indian aggression and proved Pakistan's defense capabilities to the world. Abdul Rahim Janoo rejected the recently amended Tax Ordinance 2025, calling it anti-economy, unconstitutional, and poisonous for investment. He said rice exporters are striving to boost national exports and demanded that the government provide them with the same incentives granted to the five other export sectors. Rahim Janoo noted that the rice sector is currently facing serious challenges in the international market but expressed hope that the REAP delegation currently in Australia would secure positive business opportunities. Rafique Suleman strongly objected to the implementation of Sections 138(3A) and 140(6A) of the Income Tax Ordinance, which allow for the immediate recovery of disputed tax dues, even when courts have granted relief. He said this undermines the sanctity of judicial decisions, violates taxpayers' constitutional rights to due process, and promotes a coercive tax regime. Suleman also praised the exceptional leadership of Chief of Army Staff General Asim Munir and his comprehensive strategy, which he said not only led to battlefield success but also boosted national morale and exposed India to global embarrassment following its cowardly nighttime attack. The business leaders reiterated their commitment to addressing these issues seriously and announced that plans are being made for an imminent meeting with the prime minister. Copyright Business Recorder, 2025
Business Recorder
12-05-2025
- Business
- Business Recorder
BMP says new Tax Ordinance could stifle investment growth
LAHORE: The Businessmen Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised significant concerns about the recently implemented Tax Laws (Amendment) Ordinance 2025. FPCCI's Businessmen Panel Chairman Mian Anjum Nisar observed that the ordinance could severely harm the country's investment climate, which is already under pressure due to various economic challenges. He further warned that if not reconsidered, these tax measures may discourage both domestic and foreign investors from engaging with Pakistan's economy, thus hindering growth. Anjum Nisar expressed disappointment that the new tax laws, while aimed at increasing government revenue, could backfire by creating unnecessary complexities in the business environment. 'The tax laws are intended to increase compliance and improve revenue, but they bring with them a set of challenges that may, in fact, make it harder for businesses to operate efficiently,' Nisar said. He emphasized that businesses already face multiple hurdles, including rising costs and an unpredictable economic environment, and the new tax regime could add additional layers of burden on businesses. 'The government needs to understand that businesses are the backbone of the economy. They are the ones who create jobs, drive innovation, and generate the taxes that support government functions,' he said. 'Unfortunately, this new ordinance adds layers of complexity that may make it more difficult for businesses, especially small and medium-sized enterprises (SMEs), to thrive.' The FPCCI former Chairman highlighted that while Pakistan's economy is struggling to recover from previous setbacks, the business community must be supported, not further burdened. He stated that the law, as it stands, does not provide the needed incentives for businesses to flourish. 'What we need is a policy environment that fosters growth, encourages investment, and provides a stable foundation for entrepreneurs to take risks. This ordinance does the opposite by imposing measures that will only increase the difficulty of doing business,' Nisar added. Copyright Business Recorder, 2025
