Budget lacks essential pro-business reforms: PBF

KARACHI: The Pakistan Business Forum (PBF) has raised serious concerns over the recently announced Federal Budget 2025, calling it a missed opportunity to stimulate economic growth and restore investor confidence.

Senior Vice President of PBF, Ms Amna Awan, stated that the budget, as presented, lacks the essential pro-business reforms required to build momentum in a stabilizing economy. “While Pakistan’s economy is showing early signs of stabilization, the current budget does not provide the business community with the tools or confidence necessary to drive export-led growth,” said Amna Awan. “We urge the government to reconsider anti-business tax provisions and to incorporate a more investment-friendly fiscal framework before the Finance Bill is passed by Parliament.”

PBF leadership highlighted the sweeping discretionary powers proposed for tax authorities, warning that such measures would discourage investment, breed harassment, and exacerbate corruption and maladministration.

Malik Khuda Baksh, President of PBF’s Karachi Region, described the budget as “deeply disappointing,” noting that it fails to address the real needs of the industrial sector or meet the expectations of citizens. “The burden of fiscal adjustment has once again been shifted to the industrial sector, with no adequate relief to counteract rising costs of production,” said Malik. “At a time when investor trust is fragile, the lack of meaningful incentives or reforms undermines the country’s economic potential.”

He also criticized the lack of emphasis on digitalization and one-window operational reforms, describing these as critical tools to improve the ease of doing business. Furthermore, PBF expressed concern that the government has not broadened the tax base, yet has set overly ambitious revenue targets that could harm compliant taxpayers and formal businesses.

With the government projecting GDP growth of 4.2% for FY 2025 up from the current 2.7% PBF stressed that structural flaws within the budget must be addressed to meet these targets realistically.

The Pakistan Business Forum has called for urgent consultations between the government and key business stakeholders to ensure the final Finance Bill supports sustainable economic growth, transparency, and private sector participation.