KARACHI: The Pakistan Business Forum (PBF) has submitted its budget proposals for fiscal year 2026–27 to the Ministry of Finance, calling for a comprehensive, growth-oriented strategy in the upcoming federal budget to support sustainable economic expansion.
PBF President Khawaja Mehboobur Rehman said the business community is facing heightened uncertainty and called for immediate measures to restore confidence through business-friendly policies.
The forum strongly recommended abolishing the super tax, arguing that it was originally introduced as a temporary measure but has effectively become permanent. It noted that Pakistan’s cost of doing business is about 34 per cent higher than regional competitors, underscoring the need for structural reforms to improve competitiveness and attract investment.
The PBF said the federal budget should prioritise reducing the cost of doing business while ensuring sustainable revenue generation. It called for measures to support industrial growth, export expansion and improved competitiveness in domestic and international markets.
To facilitate business activity, the forum reiterated its recommendation to repeal Sections 37AA, 37B, 14AC and 14AD of the Finance Act. It also proposed a gradual reduction in corporate tax rates to provide relief to businesses.
To broaden the tax base, the PBF suggested a fixed monthly tax of Rs10,000 for traders, with simplified compliance mechanisms, including collection through electricity bills.
The forum also recommended rationalising taxes and surcharges on electricity bills across domestic, industrial and commercial consumers to reduce operational costs. It called for improved access to credit for small and medium enterprises (SMEs) and startups to support entrepreneurship and inclusive growth.
In the agriculture and textile sectors, the PBF urged abolition of sales tax on local cotton seed and oil cake, citing a sharp decline in domestic cotton production from around 15 million bales to nearly 5 million bales over the past four decades.
Under the Green Pakistan Initiative, it proposed a seven-year tax holiday for corporate farming to encourage large-scale agricultural investment and expand cultivated land.In the construction sector, the forum recommended abolishing Section 7E and amending Sections 8 and 8B to revive investment activity. It also suggested reviewing tax exemptions for Fata/Pata, stating that sufficient transitional time has already been provided.
Additional proposals included restricting non-filers from owning more than three vehicles and introducing measures to curb under-invoicing. PBF also proposed improving transparency in housing societies by requiring all companies to convert into public limited entities with a minimum of seven directors, to be implemented through the next Finance Bill.
