By Commerce Reporter
LAHORE: – The Lahore Chamber of Commerce and Industry has urged the government to ensure immediate consultations with the business community to address concerns before the National Assembly finalizes the Federal Budget 2025-26 where it would be presented for debate.
LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry in a statement called for urgent revisions.
They said that the government has projected GDP growth at 4.2%, up from the current 2.7%. They said that the budget overlooks systemic flaws. The growth estimates ignore ground realities, high cost of doing business, energy shortages and inconsistent policies which are affecting industrial output. The government must revisit these projections to avoid fiscal shortfalls later.
The LCCI office-bearers said that the debt servicing still consumes a significant portion of the budget. Mian Abuzar Shad said that IMF-mandated subsidy cuts which would hurt low-income groups.
They added that the imposition of an 18% sales tax on imported solar panels has also drawn sharp criticism. They said that this move contradicts Pakistan’s renewable energy goals. Instead of taxing solar imports, the government should incentivize local manufacturing and R&D to reduce dependence on foreign products.
Mian Abuzar Shad said that below the mark allocations would affect health, education and infrastructure. They said that slashing social sector funding for short-term fiscal adjustments will harm long-term growth. The government must rebalance allocations to prioritize human development.
The LCCI office-bearers said that the business community is not satisfied on taxation measures at all and there is a dire need of revisiting these with the consultation of stake holders.
They said that the growth and tax targets should be revised realistically, focusing on expanding the tax net rather than overburdening existing taxpayers.
They demanded of the government to prioritize the construction of new water reservoirs and the modernization of existing infrastructure to address Pakistan’s worsening water crisis. With agriculture contributing nearly 24% of GDP and employing over 37% of the labor force sustainable water management is essential for economic stability.
They said that the work on Diamer-Bhasha Dam and other pending projects must be fast-tracked to enhance water storage capacity. They also suggested that the Public-private partnerships (PPP) should be encouraged to secure funding and expertise.
LCCI President Mian Abuzar Shad said that the the funds should be allocated for rainwater harvesting in arid zones to reduce reliance on groundwater. The industries should be incentivize to adopt water recycling plants.
LCCI President Mian Abuzar Shad warned that without urgent action, Pakistan could face severe water shortages by 2030, crippling agriculture and industry. He said that we need immediate investments in reservoirs, or our economy will suffer irreversible damage.
The LCCI office-bearers said that the funds for to health and education should be increased to ensure sustainable development. They said that the government should formulate a clear solar policy with consistent subsidies, net-metering rules, and support for local manufacturing.
The LCCI President Mian Abuzar Shad urged the government to engage in immediate dialogue with stakeholders to address these concerns. He said that the budget in its current form would risk stifling economic recovery. “We hope the government will act on our recommendations before it’s too late”, he added.
He said that as the National Assembly prepares to debate the budget, policymakers must incorporate feedback from the business community to ensure a balanced and growth-oriented fiscal plan.
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