Islamabad: The Islamabad Chamber of Commerce and Industry (ICCI) has lauded the federal government’s decision to enhance the defense budget, terming it a timely move in response to growing regional threats, particularly in the aftermath of the Operation ‘Banyan Marsoos’.
In a comprehensive response to the Federal Budget 2025-26, ICCI President Nasir Mansoor Qureshi, Senior Vice President Abdul Rehman Siddiqui, and Vice President Nasir Mehmood Chaudhry welcomed the government’s initiative to streamline governance by proposing the merger or abolition of 45 government entities. They emphasized the pressing need to privatize all loss-making public sector enterprises to reduce fiscal burden and enhance efficiency.
The ICCI leadership appreciated tax relief measures for the salaried class and the introduction of a simplified income tax return form for SMEs and individual taxpayers, calling it a step in the right direction.
However, President Nasir Mansoor Qureshi expressed disappointment over the government’s continued neglect of the business community’s repeated calls for broadening the tax net and implementing deep structural reforms—both essential for sustainable economic growth.
He voiced strong reservations regarding the “unrealistic targets” set in the new budget, particularly in light of the government’s failure to meet key economic indicators in the previous fiscal year, including GDP growth and fiscal consolidation. He questioned the feasibility of achieving new targets amid high inflation, economic fragility, and IMF-imposed restrictions.
Highlighting the high cost of doing business, Qureshi criticized the absence of tangible measures to reduce electricity tariffs and interest rates. He warned that unless the energy and borrowing costs are urgently addressed, many businesses could face collapse. Additionally, he raised alarm over the expanded powers granted to tax officials, cautioning that such unchecked authority may hamper business confidence and growth.
The ICCI President further called on the government to offer targeted incentives to unlock the immense potential of the oil & gas, and mining & minerals sectors, to attract much-needed foreign investment.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
