By Commerce Reporter
LAHORE: Addressing a consultative session on the Federal Budget 2025–26—jointly organized by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Small and Medium Enterprises Development Authority (SMEDA) at FPCCI’s Regional Office in Lahore—Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar, stressed the critical importance of Small and Medium Enterprises (SMEs) in driving economic growth.
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He highlighted that the Prime Minister is placing strong emphasis on empowering SMEs and believes that the government should play a limited role in economic affairs, instead leveraging the expertise of professionals from various sectors to propel business development.
Haroon Akhtar underscored that without industrialization, Pakistan’s economy cannot be strengthened. SMEs, he noted, are the lifeline of industrial activity. He revealed that efforts are underway to provide tax relief to both salaried individuals and the business community. As industrial activity expands, tax revenues will rise accordingly. If the country’s GDP reaches 6-7%, it will mark a significant step toward economic resilience.
Following the uplift of SMEs, the government aims to focus on large-scale industrial development. Through SMEDA, financial assistance is being extended to unemployed youth. The previous budget focused on stabilizing the economy; having moved past that phase, the upcoming budget will be geared toward growth and development. He also noted ongoing initiatives to boost exports of mangoes, onions, and citrus fruits, as well as a strategic focus on cultivating oilseeds in Pakistan’s hilly regions. The country received $4 billion in remittances last month, and the Prime Minister is committed to reducing reliance on the IMF by phasing out the current programme. Akhtar pointed to the untapped potential in Pakistan’s halal meat and dairy sectors. Work is also being done to produce biogas from cow dung, which will help reduce the national petroleum import bill. A new vehicle policy is being introduced for two-, three-, and four-wheelers, along with tax incentives for electric vehicles. Special measures are being taken to revive non-operational industries.
“No country in the world ever truly defaults,” he stated, adding that substantial efforts are being made to boost exports. Exporters are being placed in an ideal environment to ensure sustainable export growth. Despite remaining in the IMF program for now, the government is working to improve conditions domestically. The Prime Minister, he added, takes personal interest in Federal Board of Revenue (FBR) matters. The package to revive idle industries is expected to resolve numerous economic challenges.
He also emphasized the need for farmers to meet international production standards. Significant deregulation efforts are underway in the agriculture sector. Pakistan has abundant water resources, but they must be managed more efficiently. Crop insurance is essential, and the government plans to establish tractor manufacturing units locally. SMEDA CEO Socrat Aman Rana delivered a detailed presentation on SMEDA’s role and initiatives. FPCCI President Atif Ikram Sheikh, Senior Vice President Saquib Fayyaz Magoon, and Regional Chairman Zain Iftikhar also presented their budget recommendations, stating that FPCCI has prepared proposals aligned with IMF.
They collectively advocated for a long-term industrial policy, emphasizing that industries are built not for five or ten years, but for generations. Since all major political parties are now part of the government, they proposed a resolution ensuring that economic and industrial policies remain stable, regardless of changes in political leadership.
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