Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has introduced four independent “shadow” policy studies to improve economic growth and reduce fiscal pressure in Pakistan.
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The reports were prepared by the Economic Policy and Business Development Think Tank (EPBD). Moreover, the studies were launched during a ceremony at the FPCCI office in Islamabad.
The policy package includes:
- Tax Policy and Administration Reforms
- Shadow Federal Budget 2026-27
- Shadow Economic Survey of Pakistan 2026
- Shadow Five-Year Development Plan 2026-31
Tax Reforms Aim to Broaden Revenue Base
The tax reform study reviewed 21 sectors of the economy. It highlighted weak taxation in retail, agriculture and services.
In addition, the report criticised the heavy burden on salaried individuals and corporate taxpayers. It also noted that many wealthy groups continue receiving tax exemptions.
Furthermore, the study pointed out that excessive dependence on withholding taxes limits transparency and documentation.
According to FPCCI, better compliance and wider taxation could increase the tax-to-GDP ratio by up to six percentage points.
Shadow Budget Targets Lower Fiscal Deficit
The Shadow Federal Budget 2026-27 proposed several fiscal reforms. These include privatisation of state-owned enterprises, subsidy cuts and pension reforms.
Additionally, the report called for stronger parliamentary oversight and performance-based budgeting.
FPCCI projected total revenues of Rs19.6 trillion for FY27. At the same time, it aimed to reduce the fiscal deficit to 2.6 per cent of GDP.
The report also warned about rising public debt. Pakistan’s debt increased from Rs19 trillion in FY16 to nearly Rs80 trillion in FY26.
Economic Survey Projects Higher Growth
The Shadow Economic Survey projected GDP growth of 8.5pc by FY31 under a reform-based model.
Moreover, the report identified exports, manufacturing, housing and the digital economy as key drivers of growth.
FPCCI estimated that structural reforms could add nearly $236 billion to the economy over five years.
Five-Year Plan Focuses on Jobs and Exports
The Shadow Five-Year Development Plan projected the creation of around 20 million jobs by FY31.
Besides that, the report highlighted housing, agriculture and exports as major growth sectors.
The plan also stressed export diversification and investment incentives. As a result, Pakistan’s exports could cross $100 billion in the medium term.
FPCCI stated that the proposed reforms would support private-sector-led growth and improve long-term economic stability.
