President Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Saleem Memon, has called on the federal government to extend substantial relief to the business community particularly small traders and industrialists in the upcoming Federal Budget 2025–26. He emphasized that empowering the business sector is crucial to placing the national economy on a path of sustainable growth and stability.
HCSTSI President stated that the entire nation stands united alongside its government and the Pakistan Armed Forces amid the current tensions with neighboring India. This is a pivotal moment for the government to stand shoulder to shoulder with the business community, exporters, and industrialists by extending vital support that would send a strong economic message of resilience and strength to the world.
He highlighted that sustainable economic development is unattainable without strengthening the Small and Medium Enterprises (SMEs) sector. To facilitate this, subsidies on electricity and gas rates must be granted and existing tax exemptions on alternative energy sources such as solar and wind power should be maintained in the new budget. This will help reduce production costs and enhance the competitiveness of Pakistani products in international markets.
President urged the government to provide easy access to low-interest loans, modern training programs, digital tools and export opportunities for small businesses. He also called for urgent steps to improve the deteriorating infrastructure of SITE Area Hyderabad, including separate allocations for road repairs, drainage systems, and water supply projects. He further suggested a significant reduction in interest rates to promote industrial activity and make it easier to initiate new industrial ventures. He emphasized the need to increase the development budget to ensure improvements in education, healthcare, and other essential services, leading to broader public welfare.
To boost exports, He recommended easing advance tax requirements, introducing export development schemes, and facilitating access to new international markets. He also emphasized expanding vocational training programs for youth so they can acquire industry-relevant skills. Moreover, he advocated for tax exemptions and grants to encourage innovation, research, modernization, and digitalization, enabling Pakistan to align with global industrial standards. To promote financial inclusion, the Chamber proposed launching microfinance schemes, credit guarantee programs, and affordable loan initiatives. He stressed that simplifying tax, licensing, and business registration processes will help restore the confidence of the business community.
HCSTSI President also demanded that the mandatory POS registration threshold for small businesses be revised. He proposed raising the current limit to at least PKR 350,000 monthly or PKR 70 million annually in turnover, to protect small enterprises from unnecessary pressure. To expand the tax net, he recommended implementing compulsory registration for distributors, dealers, and large retailers, while also identifying non-filers through assets such as unnamed properties, foreign travel records, and high private school fees.
He further emphasized that the budget should be planned according to the latest 2023 national census, ensuring transparent and equitable resource distribution. Corporate tax reforms should gradually reduce the current rate from 29% to 25%, and the super tax should be phased out entirely over the next three years to improve the business climate.
A fixed tax regime for the IT and software sector for the next 10 years was also proposed, which would facilitate foreign professionals in remitting their earnings to Pakistan. Saleem Memon advocated for reducing sales tax and customs duties on industrial raw materials and called for a simplified and transparent tax system to strengthen cooperation between traders and the government. He emphasized that providing relief to the cement industry would stimulate infrastructure development, and simplifying the business registration process would encourage private investment.
In conclusion, Chamber President Saleem Memon stated that in light of IMF recommendations, the focus should be on broadening the tax base, improving the efficiency of government institutions, and enhancing financial access for the private sector. This would ensure accelerated economic activity and elevate Pakistan’s status as a respected economic force on the global stage.
He concluded by reaffirming that the nation always stands united with its armed forces and government in times of adversity. Now, when the entire country is unified against external threats, it is imperative for the government to extend unwavering support to its people especially the business community so that Pakistan can project a powerful economic message and prove to the world that it is not only self-reliant in defense but also in economic strength.
