ISLAMABAD, JUN 2: The business community has expressed high expectations from the upcoming Budget 2026–27, emphasizing the need for an industry- and export-oriented, business-friendly fiscal framework that supports sustainable economic growth.
Concerns were also raised regarding recent media reports about proposed taxation on electric vehicles and solar energy solutions/panels. The business leadership urged the government to reconsider the proposed policy and adopt a two-tier approach, under which electric two-wheelers and scooters should remain exempt from taxation. They further called for incentives and protection for local manufacturers operating in these emerging sectors. It was also highlighted that solarization has significantly helped reduce Pakistan’s import bill during recent global energy and geopolitical disruptions.
These remarks were made by President of the Rawalpindi Chamber of Commerce and Industry (Rawalpindi Chamber of Commerce and Industry), Usman Shaukat, accompanied by Group Leader Sohail Altaf, during a luncheon meeting with Prime Minister Shehbaz Sharif at the Prime Minister House, Islamabad.
The meeting was attended by federal cabinet ministers, presidents of leading chambers of commerce and industry, and senior government officials. During the interaction, participants discussed key issues facing the business community and presented recommendations for the upcoming federal budget.
The RCCI President emphasized the need to broaden the tax base instead of increasing the burden on existing taxpayers. Referring to the government’s vision of an export-led growth strategy, he stressed that meaningful incentives should be extended to exporters. He also proposed the establishment of a Pharma Export Council along with sector-specific incentive packages to enhance Pakistan’s export competitiveness in international markets.
Usman Shaukat further called for effective measures to reduce the cost of doing business and highlighted the importance of promoting Small and Medium Enterprises (SMEs) as a key driver of economic growth, employment generation, and innovation.
Group Leader Sohail Altaf raised concerns regarding business operating hours during the ongoing heatwave and requested relief for traders in areas affected by smart lockdowns. He also proposed extending business timings and facilitating commercial activities in tourist destinations during the summer season. The Prime Minister responded positively to the suggestions and informed participants that a decision would be taken soon.
He further advocated for reducing taxes on the retail sector and emphasized the need for a comprehensive industrial policy. He also called for relief measures for the construction sector and accelerated development of industrial zones along the Ring Road to attract investment and promote industrial expansion.
The RCCI leadership appreciated the establishment of the Tax Policy Office, noting that it would strengthen stakeholder engagement and improve coordination between policymakers and the business community, ultimately leading to more effective and business-friendly tax policies.
