Karachi (18-06-2026) Sheikh Muhammad Tahseen, President of the Federal B Area Association of Trade and Industry (FBATI), expressed deep disappointment over the federal and provincial budgets, describing them as a roadmap to hardship for both industries and the general public. He strongly criticized the imposition of new taxes such as sales tax on solar products and carbon tax on petroleum, stating that these measures will significantly increase production costs and inflation.
He expressed concern that the budget provided no relief for industries or small and medium enterprises (SMEs), with no reduction in taxes, incentives, or allocation of funding for boosting production. He added that the government further burdened the public by increasing petroleum prices, while policy rates remain at high levels, leaving no room for industrial expansion.
Highlighting the severe water crisis faced by industries in Karachi, he pointed out that despite years of water scarcity, both federal and provincial governments have failed to allocate adequate resources to address the issue. “Only peanuts have been allocated for major water projects, leaving industries and citizens at the mercy of the tanker mafia,” he said.
Sheikh Muhammad Tahseen noted that the federal government has allocated Rs. 3.2 billion for the K-IV water project, while the Sindh government has only set aside Rs. 100 million. The FBATI president demanded that the budget be restructured with the needs of export industries, SMEs, and Karachi’s business community in mind.
He also urged the government to withdraw the proposed increase in Federal Excise Duty on packaged food from 4% to 20%, warning that this would further exacerbate inflation. While he welcomed the tax relief provided to salaried individuals, he emphasized that the introduction of new taxes would increase the financial burden on both businesses and consumers.
