KARACHI: Chairman Businessmen Group (BMG), Zubair Motiwala, while terming the Federal Budget 2025-26 a “camouflage budget,” expressed serious reservations over its unrealistic targets and the absence of any meaningful relief for the business community or the common man. He noted that while the budget includes various announcements related to digitalization and promoting a cashless economy, these measures alone are insufficient to stimulate exports or drive industrialization, which are critical for sustainable economic growth.
Addressing a press conference at the Karachi Chamber of Commerce and Industry (KCCI) after listening to the Finance Minister’s budget speech on Tuesday, Chairman BMG criticized the government for setting overly ambitious goals despite the country’s poor economic performance in the previous fiscal year, during which all major targets, including GDP growth and fiscal consolidation, were missed. He questioned the rationale behind increasing the targets without providing any practical explanation of how these would be achieved, especially in a fragile economic environment dominated by uncertainty, high inflation, and IMF-imposed constraints.
Motiwala was joined at the press conference by Vice Chairman BMG Anjum Nisar, President KCCI Muhammad Jawed Bilwani, Senior Vice President Zia ul Arfeen, Chairman Policy Research & Advisory Council Younus Dagha, former presidents Junaid Esmail Makda, Muhammad Idrees, Iftikhar Ahmed Sheikh, and members of the KCCI Managing Committee.
Chairman Businessmen Group (BMG), Zubair Motiwala along with President Karachi Chamber of Commerce and Industry Jawed Bilwani, Vice Chairman BMG Anjum Nisar, Senior Vice President Zia ul Arfeen, Chairman Policy Research & Advisory Council Younus Dagha, former presidents Muhammad Idrees, Iftikhar Ahmed Sheikh, and others addressing a press conference to give business community’s reaction on Federal Budget 2025-26 on Tuesday.
Chairman BMG pointed out that the government’s approach to achieving the elevated tax collection target seems to rely largely on extracting more revenue from the existing pool of compliant taxpayers rather than expanding the tax base. He feared that instead of introducing meaningful reforms to bring untaxed sectors into the fold, the budget would result in increased discretionary powers for tax officials, further burdening documented businesses and discouraging economic activity. He warned that this strategy of squeezing the formal sector could result in shrinking economic output rather than expanding it.
Chairman BMG lamented the lack of any significant policy direction aimed at boosting exports or industrialization. He said the government appears to be moving towards an import-dependent model, ignoring the need to reduce the cost of doing business, especially in energy-intensive sectors like textiles. No announcement was made to address the high cost of gas, which continues to make Pakistani products uncompetitive in international markets. He emphasized that without reducing gas tariffs or easing the interest rate environment, the government’s growth targets will remain unattainable.
He added that the budget speech lacked any vision for structural reforms or the creation of a pro-business environment essential for economic revival. The government, he said, should have focused on enlarging the economic pie instead of just redistributing an already stagnant share.
He criticized the negligible support provided to the export-oriented textile sector, which he noted is the backbone of the country’s economy. A meaningful reduction in gas prices, particularly for industrial users, could have yielded positive result but, unfortunately, it was not announced. In such circumstances, both local and foreign investors are unlikely to make any long-term commitments in Pakistan. The allocation of only Rs1000 billion for the Public Sector Development Program (PSDP) was also called out as woefully inadequate, particularly in light of the deteriorating state of infrastructure. It is surprising to see a meagre allocation of Rs2.783 billion for climate change in a country which has witnessed increased frequency of climate-related disasters.
While acknowledging that the budget was presented under strict IMF conditions, he said that despite being technically compliant, it fails to address the pressing needs of Pakistan’s industrial sector or its citizens. He described the budget as one that may satisfy external lenders but does not offer any practical hope for businesses or the wider population.
Vice Chairman BMG Anjum Nisar underscored the importance of establishing a fair and transparent taxation system that does not rely on intimidation or arbitrary enforcement. He warned that the environment being created through the proposed fiscal measures could foster fear among businesses instead of encouraging growth. Karachi, he stressed, remains the economic lifeline of Pakistan and deserves special attention to unlock its full potential. Rather than continuously burdening it with revenue responsibilities, the government should empower it with infrastructure investment and policy support to enable it to contribute even more to the national economy.
President KCCI Muhammad Jawed Bilwani rejected the budget, stating it completely fails to offer any meaningful relief to the industrial sector or the general public. He said the government’s claim of reduced inflation does not align with the realities faced by households, where electricity bills remain unaffordable and basic necessities are out of reach. He criticized the lack of measures to reduce electricity tariffs and interest rates, which are key drivers of the high cost of doing business. He emphasized that without addressing these core issues, neither industrial expansion nor job creation is possible. The high cost of energy and borrowing has severely impacted the viability of businesses, and without urgent intervention, many enterprises may not survive.
Bilwani expressed concern over the government’s over-reliance on remittances and IMF programs to manage the economy, calling it an unsustainable and short-sighted approach. He stressed the need to develop a conducive environment for industrial growth, which is the only way to sustainably improve key economic indicators. He also criticized the minimal allocation for long-delayed infrastructure projects like K-IV, terming it a sign of the government’s disregard for Karachi’s needs and its vital contribution to the national economy. He concluded that despite repeated demands from the business community, no concrete steps have been taken to broaden the tax net or introduce structural economic reforms, which remain essential for long-term economic stability.
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