Aurangzeb seeks business input on budget and economic priorities

ISLAMABAD: Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired a virtual meeting with presidents and senior office-bearers of chambers of commerce and business organisations from across Pakistan to discuss the current economic situation, priorities for the upcoming budget, and ways to support economic recovery and growth, according to a finance ministry statement issued on Thursday.

The nearly 90-minute meeting was also attended by Minister of State for Finance Bilal Azhar Kayani and senior officials from the Finance Division, Revenue Division and Tax Policy Office.

At the outset, Aurangzeb welcomed the participants and thanked them for staying engaged with the government. He said Pakistan was gaining greater prominence internationally amid changing regional dynamics and stressed the need for regular and structured interaction with the business community.

The minister said the purpose of the session was not limited to taxation and the next budget, but also included seeking practical and forward-looking proposals to use current opportunities for boosting trade, drawing investment and supporting sustainable economic growth.

He said Pakistan had entered the recent difficult period from a position of relative macroeconomic stability, backed by fiscal discipline and stronger external buffers. Referring to recent developments, he cited better fiscal management, the fulfilment of external obligations and targeted support for vulnerable groups.

Aurangzeb said the government had paid $1.4 billion for the Eurobond and assured participants that all financial obligations would be met in the coming months. He also asked stakeholders to present actionable suggestions to benefit from emerging opportunities, particularly in trade facilitation, logistics and regional connectivity, including Pakistan’s growing potential as a transshipment and investment hub.

Business community proposals

During the discussion, participants put forward a wide range of recommendations aimed at supporting economic activity and improving competitiveness. The exchange focused on the business climate, export facilitation, productivity and bringing policy frameworks closer to regional standards.

Lahore Chamber of Commerce and Industry President Faheemur Rehman Saigol congratulated the government on improving Pakistan’s economic profile. He said the government should take up rising shipping charges with shipping companies and noted that remittances from Gulf Cooperation Council countries could decline and should be reviewed. He also stressed the importance of renewable energy, especially solar and hydel, and proposed improving banking channels in Central Asia to expand trade. Saigol further suggested that banks above a certain profit threshold should be required to open branches in Central Asian countries, citing the market’s potential.

Jawed Balwani said Pakistan should negotiate with the United States for lower tariffs. He described the rising cost of doing business as a major issue and called for freight rates to be reduced.

Atif Ikram of the Federation of Pakistan Chambers of Commerce and Industry urged the abolition of Section 7E to support the real estate sector, restoration of the final tax regime for exporters, promotion of small and medium enterprises, and an increase in the Federal Board of Revenue threshold from Rs250 million to Rs350 million.

Usman Shaukat of the Rawalpindi Chamber of Commerce and Industry sought further relief in the current period, a lower policy rate, stronger regional connectivity and trade, tax incentives to encourage exports and import substitution, and a support package for real estate.

Zubair Motiwala said the cost of doing business should be brought down to help exports and suggested a comparative review of Pakistan’s business costs against regional countries.

Hamid Ateeq said the prime minister had asked government departments to submit proposals for promoting the real estate sector.

Government response

In his concluding remarks, Minister of State for Finance Bilal Azhar Kayani appreciated what he described as constructive input from the business community and said the government remained committed to continued engagement. He said many of the proposals were in line with the government’s reform agenda and added that the government was trying to widen the tax net through better policy initiatives.

Senior officials from the Tax Policy Office and the Federal Board of Revenue also briefed participants on the ongoing consultative process. They said proposals received from chambers were being carefully reviewed to help shape balanced and effective policy measures, and added that continued stakeholder engagement would remain central to preparing a responsive and growth-oriented budget.

Wrapping up the meeting, Aurangzeb thanked participants for their contributions and reiterated the government’s commitment to working closely with the business community to move the economy towards stability, resilience and sustainable growth. He said sustained public-private collaboration would be essential to achieving these goals.