PBC backs budget 2026-27, calls for continued economic reforms

In its response to the budget, the council praised several business-friendly measures, saying they reflect a growing focus on economic expansion

KARACHI: The Pakistan Business Council (PBC) has welcomed the Federal Budget 2026-27, describing it as a positive step toward economic stability and sustainable growth while urging the government to maintain reform momentum in the years ahead.

In its response to the budget, the council praised several business-friendly measures, saying they reflect a growing focus on economic expansion, investment promotion, and support for productive sectors despite fiscal constraints.

PBC Chairperson Dr. Zeelaf Munir said the budget demonstrates a shift toward long-term economic growth and includes meaningful relief measures for businesses and citizens. She noted that while the initiatives are encouraging, they should be viewed as the beginning of a broader reform agenda rather than a final destination. According to her, policy consistency will remain crucial for sustaining investor confidence and economic progress.

The council also welcomed reductions in the tax burden on exporters, relief for salaried individuals, and changes to the Super Tax structure. PBC Chief Executive Officer Javed Kureishi said these measures address several concerns repeatedly raised by the business community and indicate that policymakers are engaging more closely with stakeholders from the formal economy.

Kureishi acknowledged the efforts of Prime Minister Shehbaz Sharif and the government’s economic team in preparing the budget, expressing hope that collaboration between the public and private sectors would continue during the implementation phase.

While appreciating the announced measures, the PBC stressed the importance of broadening the tax base by bringing untaxed and under-taxed sectors into the formal economy. The council also called for faster reforms in the energy sector to lower industrial power costs, accelerated privatisation of loss-making state-owned enterprises, and the introduction of a multi-year reform framework to provide greater certainty for investors.

According to the council, long-term investor confidence will depend not only on budgetary measures but also on consistent policymaking, predictable regulations, and effective implementation of reforms. It emphasized that sustained cooperation between government and industry will be essential to achieving durable and inclusive economic growth.

The PBC concluded by noting that constructive engagement between policymakers and the private sector ahead of the budget was a positive sign and could help lay the foundation for a more competitive and prosperous economy in the years to come.