Karachi: Korangi Association of Trade and Industry (KATI), President Muhammad Ikram Rajput has welcomed the federal budget for the fiscal year 2026-27.
He said the Rs18.771 trillion budget could help improve business confidence, support industries, and encourage economic growth. However, he added that its success will depend on proper implementation and practical support for businesses.
Rajput said the government has set high revenue targets for the coming year. He noted that achieving these goals may be difficult because production costs in Pakistan remain higher than in many neighboring countries.
He stressed that the government should expand the tax net and bring more people into the formal economy instead of placing additional pressure on existing taxpayers.
He welcomed the allocation of Rs10 billion for Karachi, K-IV water supply project. According to him, Karachi plays a key role in Pakistan economy but continues to face serious infrastructure problems.
He said the completion of the K-IV project is important for both the city and the country economic progress.
At the same time, Rajput expressed concern over the lack of a clear plan for highways and large infrastructure projects. He said Karachi contributes significantly to national revenue and industrial production. Therefore, he urged the federal government to provide more funds for the city development needs.
The KATI president also appreciated the removal of the 9 percent surcharge on salaried individuals and the reduction in income tax rates. He said these measures could support economic activity.
He also welcomed the increase in the minimum wage but believed the budget does not provide enough incentives to strengthen industrial growth.
Rajput described the reduction in super tax and the removal of capital value tax on foreign assets as positive steps for the business community. He said these measures had been long standing demands of industrialists. He believes lower taxes can encourage investment, reduce business expenses, and support industrial expansion.
Speaking about exports, Rajput said some useful steps have been included in the budget. However, he added that tax relief alone will not be enough to significantly increase exports.
He called on the government to lower energy costs, speed up export refund payments, improve financing facilities, and introduce reforms that reduce production expenses.
Rajput said it is still too early to decide whether the budget is fully business friendly or public friendly. Even so, he believes it contains several encouraging measures.
He added that continued support for industry, exports, and urban development can help create jobs and strengthen the economy. He also reaffirmed the business community commitment to working with the government for Pakistan economic progress.
