LAHORE (Zuaib Butt)Former President of the Lahore Chamber of Commerce and Industry (LCCI) and former Adviser on Trade Affairs to the Chief Minister of Punjab, Muhammad Ali Mian, has welcomed the Federal Budget 2026-27, describing it as a balanced effort to promote economic stability, investment, business confidence and tax reforms despite IMF-related constraints.
In his reaction to the budget, Muhammad Ali Mian said Prime Minister Shehbaz Sharif and his economic team deserve recognition for steering Pakistan away from serious default risks and placing the economy on a path toward stability. He said tax reductions, the abolition of certain levies and measures aimed at boosting business activity demonstrate the government’s commitment to economic growth and job creation.
He termed the reduction in income tax for salaried individuals a positive step, noting that this segment has carried a significant share of the tax burden in recent years. He also welcomed the reduction in super tax on businesses, calling it an encouraging measure for investment, industrial expansion and economic growth.
Muhammad Ali Mian praised tax incentives for the construction sector, saying lower sales tax rates would stimulate housing activity and support dozens of related industries. He further welcomed incentives for the IT and export sectors, emphasizing that sustainable economic growth depends on increasing exports and strengthening foreign exchange reserves.
The former LCCI president described the fixed tax system introduced for small traders as one of the budget’s most important initiatives. He said the one percent fixed tax rate, simplified registration process and minimal documentation requirements could encourage millions of small businesses to join the tax net voluntarily.
He also highlighted the announcement of the Federal Board of Revenue’s new operational model as a major reform. Measures such as a faceless system, single and double-blind audits, algorithm-based case assignments, reduced human intervention and digital settlement mechanisms were long-standing demands of the business community and would help improve transparency and taxpayer confidence.
However, Muhammad Ali Mian stressed the need for further reforms, including lower industrial energy costs, fully automated and timely export refunds, promotion of value-added manufacturing, special financial facilities for SMEs and stronger measures to document the informal economy.
He expressed hope that the government would continue its reform agenda with consistency and engage closely with the business community to achieve sustainable economic growth, attract investment, create employment opportunities and strengthen Pakistan’s economic foundations.
