Ismail Suttar, founder chairman of the Salt Manufacturers Association Pakistan (SMAP), has expressed serious reservations about the federal budget for 2026-27, arguing that the government has failed to introduce measures capable of delivering meaningful export growth at a time when the country urgently needs foreign exchange earnings.
In a statement, Mr. Suttar said the budget lacked a coherent roadmap for expanding Pakistan’s export base and addressing challenges confronting manufacturers. He noted that despite repeated assurances of support for the productive sectors, exporters had received little beyond marginal tax adjustments.
According to him, one of the biggest disappointments was the government’s decision not to restore the Final Tax Regime (FTR) for exporters. He said the export sector had sought a straightforward tax framework to minimize compliance costs and reduce interactions with tax authorities.
“Reducing the withholding tax rate while keeping exporters within the normal tax regime does not solve the problem,” he observed. “Businesses need predictability and simplicity, not additional paperwork and procedural complications.”
Ismail Suttar warned that Pakistan’s regional competitors were aggressively facilitating exporters through tax incentives, lower production costs and simplified regulations, whereas the latest budget had offered no comparable relief.
He maintained that export growth could not be achieved through tax measures alone and criticized the lack of proposals to reduce industrial energy costs. High electricity and gas tariffs, he said, continue to erode the competitiveness of Pakistani products in international markets.
“The budget does not provide a clear mechanism for lowering power and gas costs for industry, nor does it explain how the burden of circular debt will be addressed without further affecting productive sectors,” he said.
While welcoming the reduction in super tax rates for certain companies, Mr. Suttar described the measure as limited relief that would have little impact on export performance unless accompanied by broader structural reforms.
He stressed that industrial units across the country were operating below their potential due to rising production costs and policy uncertainty. Without targeted incentives for exporters and manufacturers, he cautioned, Pakistan would struggle to achieve sustainable economic growth.
Ismail Suttar said the government should revisit its export policy framework and engage with industry representatives to formulate measures that encourage investment, increase industrial output and strengthen the country’s position in global markets.
“Exports must remain at the center of economic policymaking. Without expanding export earnings, it will be difficult to overcome recurring external account pressures and place the economy on a stable footing,” he added.
