LAHORE:

The Lahore Chamber of Commerce and Industry (LCCI) has urged the government to ensure immediate consultations with the business community to address their concerns before the National Assembly finalises the federal budget for 2025-26.

LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry in a statement called for urgent revisions.

They said that the government has projected GDP growth at 4.2%, up from the current 2.7%, adding that the budget overlooks systemic flaws. The growth estimates ignore ground realities, high cost of doing business, energy shortages and inconsistent policies which are affecting industrial output. “The government must revisit these projections to avoid fiscal shortfalls later.”

The LCCI office-bearers said that debt servicing still consumes a significant portion of the budget and the IMF-mandated subsidy cuts will hurt low-income groups.

The imposition of 18% sales tax on imported solar panels has also drawn sharp criticism. They said that this move contradicts Pakistan’s renewable energy goals. Instead of taxing solar imports, the government should incentivise local manufacturing and R&D activity to reduce dependence on foreign products.

Mian Abuzar Shad said that below-the-mark allocations would affect healthcare, education and infrastructure. Apart from that, slashing social sector funding for short-term fiscal adjustments will harm long-term growth. “The government must rebalance allocations to prioritise human development.”