KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) and representatives of the export sector have expressed disappointment over Budget FY27, saying it fails to address longstanding concerns of traders and lacks measures to drive export growth.
PCDMA Chairperson Salim Valimuhammad said the government had ignored key proposals submitted by commercial importers, including the association’s demand for the abolition of the Export Facilitation Scheme (EFS).
He said the decision to retain the scheme without introducing safeguards against its misuse would further widen the disparity between industrial and commercial importers.
Valimuhammad alleged that a significant volume of goods imported under industrial concessions was finding its way into the open market. According to him, some importers use industrial status to import raw materials and other products under preferential terms before selling them commercially, creating unfair competition for commercial importers who pay full customs duties and taxes.
“This practice not only causes substantial financial losses to commercial importers but also deprives the national exchequer of much-needed revenue,” he said.
He added that while commercial importers are required to comply with all tax and duty obligations, industrial importers benefiting from exemptions and concessions often operate without adequate oversight. The absence of an effective monitoring mechanism, he said, allows facilities intended for industrial production to be misused.
Commenting on the budget’s tax measures, Valimuhammad said relief had been provided to the salaried class, but the wider business and trading community had received little meaningful support. He added that tax rates and the overall burden on businesses remained largely unchanged.
Separately, Ismail Suttar, founder chairperson of the Salt Manufacturers Association of Pakistan (SMAP), expressed reservations about the budget, arguing that it lacks measures capable of delivering meaningful export growth at a time when Pakistan urgently needs to boost foreign exchange earnings.
In a statement, Suttar said the budget offered no clear roadmap for expanding the country’s export base or addressing challenges faced by manufacturers. Despite repeated assurances of support for productive sectors, exporters had received little beyond limited tax adjustments, he added.
He said one of the sector’s main concerns was the government’s decision not to restore the Final Tax Regime (FTR) for exporters. According to Suttar, exporters had sought a simpler tax framework that would reduce compliance costs and limit interaction with tax authorities.
“Reducing the withholding tax rate while keeping exporters within the normal tax regime does not solve the problem,” he said. “Businesses need predictability and simplicity, not additional paperwork and procedural complications.”
