Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), Salim Valimuhammad, has expressed disappointment over the Federal Budget 2026-27, stating that the government has ignored key proposals submitted by commercial importers and failed to address longstanding concerns of the trading community.
In a statement, he said the association had strongly advocated abolishing the Export Facilitation Scheme (EFS), but the government chose to retain it without introducing safeguards against misuse. According to him, the continuation of EFS will further widen the disparity between industrial and commercial importers.
Salim Valimuhammad pointed out that a significant number of goods imported under industrial concessions are allegedly finding their way into the open market. He said certain importers use industrial status to bring in raw materials and other products under preferential treatment, then sell them commercially, creating unfair competition for legitimate commercial importers who pay full customs duties and taxes.
“This practice not only causes substantial financial losses to commercial importers but also deprives the national exchequer of much-needed revenue,” he said.
The PCDMA chairman maintained that while commercial importers are required to comply with all tax and duty obligations, industrial importers benefiting from various exemptions and concessions often operate without adequate oversight. He stressed that the absence of an effective monitoring mechanism allows misuse of facilities intended solely for industrial production.
Commenting on the budget’s tax measures, he said relief had been extended to the salaried class, but the broader business community and trading sector had received little to no meaningful support. He noted that high tax rates and the overall tax burden on businesses remain largely unchanged.
“The budget is not attractive for traders and does not provide the incentives required to stimulate commercial activity,” he remarked.
Salim Valimuhammad urged the government to establish a robust system of checks and balances for industrial imports to ensure that concessionary schemes are used strictly for their intended purpose. He emphasized that providing equal opportunities and a level playing field for all stakeholders is essential for sustainable economic growth.
He warned that unless the government addresses market distortions, tax disparities, and the misuse of import concessions, the commercial import sector will continue to face mounting challenges, with adverse consequences for business activity, tax collection, and the broader economy.
