Staff Report
ISLAMABAD:The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, and the President and former provincial minister, Mian Zahid Hussain, while reacting to the federal budget 2025–26, said the total size of the budget has been fixed at Rs 17,573 billion and priority had been given to defense, interest payments on debt, and revenue generation.
He said that the federal and provincial governments are expected to spend Rs 3,800 billion on public welfare projects.
Mian Zahid Hussain acknowledged that the budget attempts to strike a balance between national security, internal stability, and fiscal responsibility. However, he expressed concern over several aspects that may negatively affect the general public, business community, and investors.
Speaking to the business community, the veteran business leader said that imposing taxes on vital sectors, such as renewable energy, could hamper the country’s economic momentum. The proposed 18 percent sales tax on the import of solar panels is a regressive measure that will obstruct the growth of alternative energy sources, he warned.
Mian Zahid Hussain pointed out that several items have become more expensive under the new budget, including automobiles, petroleum products, beverages, mineral water, pet food, coffee, and chocolates. The increased levies and carbon taxes on petroleum products are expected to burden daily life, especially for the middle class and salaried segments of the population. This could potentially create financial strain for many, a concern that the business leader shares.
Mian Zahid welcomed the increase in defense expenditure, calling it a necessary response to India’s recent hostility and aggressive military posture. He termed investment in national security as unavoidable. He stressed that to accelerate development in education, health, and social welfare sectors, the government must encourage impact financing.
While acknowledging that tax reforms and digital monitoring systems can help improve revenue collection, he cautioned that such measures would only be effective if taxpayers are also provided with corresponding facilitation. He welcomed the introduction of a simplified income tax return form, particularly addressing long-standing demands of SMEs and salaried individuals.
