Deriding the proposed federal budget for FY2025-25 as “camouflage,” Businessmen Group (BMG) Chairman Zubair Motiwala on Tuesday expressed serious reservations over its unrealistic targets and the absence of any meaningful relief for the business community or the common man.
Addressing a press conference at the Karachi Chamber of Commerce and Industry (KCCI), he noted that the budget had emphasized digitalization and promoting a cashless economy, but stressed such measures are insufficient to stimulate exports or drive industrialization necessary for sustainable economic growth.
Criticizing the government for setting overambitious targets despite missing similar targets in the outgoing fiscal year, he questioned the rationale behind boosting them without offering any practical solutions for achieving the same.
Noting the government’s approach to achieving the elevated tax collection target appeared to rely on extracting more revenue from the existing pool of compliant taxpayers rather than expanding the tax base, he feared the new targets would boost discretionary powers of tax officials, further burdening documented businesses and discouraging economic activity. He warned that this strategy of squeezing the formal sector could shrink economic output rather than expanding it.
Lamenting the lack of any significant policy direction aimed at boosting exports or industrialization, the BMG chairman said the government appeared to be opting for an import-driven model that ignored the need to reduce the cost of doing business, especially in energy-intensive sectors like textiles. He said Finance Minister Muhammad Aurangzeb had not taken any steps to address the high cost of gas, which continues to make Pakistani products uncompetitive in international markets. He emphasized that growth targets would remain unattainable without reductions in gas tariffs or the interest rate.
Motiwala said the budget lacked any vision for structural reforms or the creation of a pro-business environment needed for economic revival. The government, he said, should have focused on enlarging the economic pie instead of just redistributing an already stagnant share.
Criticizing the negligible support for the export-oriented textile sector, which he described as the backbone of the country’s economy, he said a meaningful reduction in gas prices could have yielded positive results. The prevailing circumstances, he said, discouraged long-term commitments by both local and foreign investors. He also criticized the “inadequate” allocation of Rs. 1,000 billion for the Public Sector Development Program (PSDP), adding a country facing increasing frequency of climate-related disasters needed more than a meager allocation of Rs. 2.783 billion to address climate change.
Acknowledging the budget was presented under strict IMF conditions, Motiwala said that while it was technically compliant, it failed to address the pressing needs of Pakistan’s industrial sector or its citizens. He described the budget as one that may satisfy external lenders but does not offer any practical hope for businesses or the wider population.
Taxation reforms
Apart from Motiwala, BMG Vice Chairman Anjum Nisar, KCCI President Muhammad Jawed Bilwani, Senior Vice President Ziaul Arfeen, Chairman Policy Research and Advisory Council Younus Dagha, former presidents Junaid Esmail Makda, Muhammad Idrees, Iftikhar Ahmed Sheikh, and members of the KCCI Managing Committee also addressed the press conference.
Nisar underscored the importance of establishing a fair and transparent taxation system that does not rely on intimidation or arbitrary enforcement. He warned the environment envisioned in the budget could foster fear among businesses instead of encouraging growth. Karachi, he said, remains the economic lifeline of Pakistan and deserves special attention. Rather than continuously burdening it with revenue responsibilities, the government should empower it with infrastructure investment and policy support to enable it to contribute even more to the national economy, he added.
The KCCI president rejected the budget outright, saying it completely fails to offer any meaningful relief to the industrial sector or the general public. He said the government’s claim of reduced inflation does not align with the realities faced by households, with electricity bills still unaffordable and basic necessities out of reach. Criticizing the lack of measures to reduce electricity tariffs and interest rates, key drivers of the high cost of doing business, he said neither industrial expansion nor job creation was possible in this scenario. The high cost of energy and borrowing has severely impacted the viability of businesses, and without urgent intervention, many enterprises may not survive, he warned.
Bilwani also expressed concern over the government’s over-reliance on remittances and IMF programs to manage the economy, calling it an unsustainable and short-sighted approach. He stressed the need to develop a conducive environment for industrial growth, saying it was only means to improve key economic indicators sustainably. He also criticized the minimal allocation for long-delayed infrastructure projects like K-IV, terming it a sign of the government’s disregard for Karachi’s needs and its vital contribution to the national economy.
He lamented that despite repeated demands from the business community, no concrete steps have been taken to broaden the tax net or introduce structural economic reforms, which remain essential for long-term economic stability.