RAWALPINDI — The business community in Rawalpindi has expressed strong support for the federal budget for 2026-27, welcoming several measures introduced. However, business leaders are calling for clearer economic policies to lower the cost of doing business.
Budget Highlights and Business Reactions
Usman Shaukat, President of the Rawalpindi Chamber of Commerce and Industry (RCCI), praised the 7% increase in salaries and pensions. He also welcomed the elimination of Federal Excise Duty on medicines for cancer and other severe diseases. Despite these positive steps, Shaukat pointed out the lack of a clear export policy and initiatives to create a more business-friendly environment.
He stressed the need for continuous consultations with the business community to enhance the policy framework, ensuring it aligns with business needs.
Tax Reductions in Real Estate Sector
Sohail Altaf, Group Leader and Former President of RCCI, commended the reduction in property purchase taxes for filers—from 2.5% to 1.25%—and for sellers, from 5.5% to 2.75%. Altaf also recognized the exemption of super tax for businesses earning up to Rs. 0.5 billion, with a reduction of the tax rate from 10% to 8% for larger incomes.
Policy Clarity and Recommendations
Altaf highlighted the ambiguity in GST policies and urged lawmakers to prioritize reducing business operation costs. He applauded Prime Minister Shehbaz Sharif for including business chamber inputs in budget discussions.
High tax rates, ranging from 50% to 60%, were noted as obstacles to investment, with calls for adjustments. The business community supports expanding the government’s tax net, provided there is a clear and practical strategy for implementation, particularly aiding small traders.
