By Commerce Reporter
LAHORE: Lahore Chamber of Commerce and Industry (LCCI) Senior Vice President Tanveer A Sheikh has expressed mixed views on the federal budget 2026-27, stating that while the overall budget has been appreciated by the business community, several key sectors remain unaddressed, particularly small and medium enterprises (SMEs), export promotion, and ease of doing business reforms.
Speaking on the budget proposals, Tanveer A Sheikh highlighted concerns over the continued high tax and levy burden, noting that the government has imposed an estimated Rs1656 billion in levies during the fiscal year. He said such a heavy fiscal load continues to create pressure on businesses and consumers alike, limiting economic flexibility and growth potential.
He further pointed out the issue of energy pricing, stating that oil prices could not be reduced beyond Rs300 level, which he described as a significant barrier for industrial competitiveness. According to him, high energy costs remain one of the biggest challenges for manufacturing units and export-oriented industries in Pakistan.
The LCCI senior vice president emphasized that despite repeated demands from the business community, the federal budget did not introduce meaningful measures to support SMEs, which are considered the backbone of the country’s economy. He said small businesses continue to face difficulties in access to finance, taxation compliance, and regulatory hurdles.
He also criticized the lack of concrete reforms aimed at improving ease of doing business. According to Tanveer A Sheikh, simplifying regulations, reducing bureaucratic delays, and ensuring a more business-friendly environment are essential steps for sustainable economic growth, but these areas remain largely untouched in the new fiscal plan.
On exports, he noted that Pakistan needs aggressive policy support to expand its export base and improve global competitiveness. However, he said the budget does not provide sufficient incentives or structural reforms to significantly boost export-led growth. He stressed that without export expansion, long-term economic stability will remain difficult to achieve.
Despite these reservations, Tanveer A Sheikh acknowledged that the overall direction of the budget has been received positively in general business circles. He said some macroeconomic indicators and fiscal measures reflect a degree of stability, which has been welcomed by stakeholders.
However, he maintained that structural reforms are still missing from the budget framework. He urged the government to revisit its priorities and introduce targeted policies for SMEs, energy relief, export facilitation, and regulatory reforms to ensure balanced economic development.
The LCCI leadership reiterated its commitment to working with policymakers and the government to address these concerns and support economic growth. They emphasized that constructive dialogue between the government and business community is essential to ensure that future budgets are more inclusive and growth-oriented.
