Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, has urged the federal government to shift away from aggressive taxation on the formal sector in the upcoming Federal Budget 2026–2027. Speaking at a pre-budget discussion at Salim Habib University, he emphasized the need for a balanced national economic strategy that addresses IMF stabilization mandates while supporting the private sector’s survival.

Hussain expressed concerns over the high revenue targets set under the IMF-backed plan, which place an undue burden on documented businesses. The federal government projects a 13.5 percent increase in federal tax revenues, necessitating an ambitious FBR collection target. He argued that this goal is unrealistic given the existing tax pressures and previous revenue shortfalls.

He also pointed out that achieving a primary budget surplus of 2 percent of GDP hinges on unpredictable debt servicing costs, as interest payments are rising significantly. To achieve fiscal sustainability, he called for structural reforms, including the digitization of tax administration, the enforcement of provincial revenue measures, the restructuring of loss-making state enterprises, and the reduction of non-development expenditures to improve the business environment.