Budget Fails to Fix Economy: Industry Leaders React
- Karachi – Pakistan's business community has reacted with caution to the 2025 budget, with some leaders calling it a "camouflage budget" due to its aspiring targets and perceived...
- Ehsan Malik, CEO of the Pakistan Business Council, acknowledged the constraints of the fragile economy and the IMF program.
- despite repeated emphasis on exports, malik pointed out the budget lacks immediate support for exporters, who will remain subject to standard tax regimes.
Industry leaders are raising alarms over Pakistan’s 2025 budget, branding it a “camouflage budget” due to its optimistic targets and lack of substantial benefits for businesses. This budget fails to fix the economy, with critical voices highlighting the absence of concrete strategies to bolster exports and stimulate industrial growth. Ehsan Malik, CEO of the Pakistan Business Council, and M. Abdul Aleem from the Overseas Investors Chamber of commerce and Industry (OICCI), express their disappointment. They also pinpoint shortcomings such as the lack of export support and the lack of tax base expansion. Zubair Motiwala, Chairman of the Businessmen Group (BMG), goes further, questioning the budget’s strategy and the reliance on existing taxpayers. For more on these reactions, which you can find at News Directory 3, learn about the calls for structural reforms and a more business-friendly habitat. Discover what’s next for Pakistan’s economy.
Pakistan Budget 2025: Business Leaders Offer Mixed Reactions
updated June 11, 2025
Karachi – Pakistan’s business community has reacted with caution to the 2025 budget, with some leaders calling it a “camouflage budget” due to its aspiring targets and perceived lack of relief for businesses and the public. Concerns center on the absence of structural reforms and concrete plans to boost exports and spur industrialization.
Ehsan Malik, CEO of the Pakistan Business Council, acknowledged the constraints of the fragile economy and the IMF program. He noted that notable relief was unlikely, but welcomed benefits for lower-paid salaried employees and proposed restrictions on high-value transactions for non-filers.
despite repeated emphasis on exports, malik pointed out the budget lacks immediate support for exporters, who will remain subject to standard tax regimes. He identified the real estate sector as a clear beneficiary of tax reductions aimed at stimulating transaction activity.
M. Abdul Aleem, Secretary General of the Overseas Investors Chamber of Commerce and Industry (OICCI), voiced disappointment over the limited progress in addressing inequitable corporate tax rates. He stressed the need for tax structure overhauls to enhance Pakistan’s competitiveness and attract foreign investment.
aleem also noted the absence of significant reductions in government expenditure, which could have helped narrow the budget deficit. He welcomed positive reforms such as simplified tax returns and the expansion of e-invoicing and POS systems.
Zubair Motiwala, Chairman of the Businessmen Group (BMG), criticized the budget’s ambitious goals, given the country’s recent economic performance. He questioned the strategy for achieving elevated tax collection targets,suggesting it relies too heavily on existing taxpayers rather than expanding the tax base.
Motiwala lamented the lack of policy direction aimed at boosting exports or industrialization. He expressed concern that the government is moving towards an import-dependent model, neglecting the need to reduce the cost of doing business, notably in energy-intensive sectors.
Say no concrete plan to broaden tax base, boost exports and spur industrialisation
What’s next
Business leaders are urging the government to consider structural reforms and create a pro-business environment to foster sustainable economic revival and attract both local and foreign investment in Pakistan.