The Lahore Chamber of Commerce and Industry has presented its Shadow Budget for the fiscal year 2026–27 and called on the government to prepare a balanced business friendly and relief oriented federal budget. The Chamber said such measures are necessary to ensure economic stability support industries and promote business activity.
LCCI President Faheem Ur Rehman Saigol said the business community is currently facing severe pressure because of high energy costs high interest rates heavy taxation and inflation. He stressed the need for a budget that provides real relief to industry trade and the general public.
He was addressing a press conference at LCCI along with Senior Vice President Tanveer Ahmed Sheikh Vice President Khurram Lodhi former FPCCI and LCCI President Mian Anjum Nisar and Executive Committee members including Mohsin Bashir Imran Saleemi Shouban Akhtar Karamat Ali Awan Rana Nisar Aamir Ali and Zain Elahi.
The LCCI President said the total size of the federal budget for 2025–26 was Rs 17,573 billion while the budget deficit stood at Rs 6,501 billion. He suggested keeping the next budget close to the same size in order to maintain financial discipline and control unnecessary spending.
He further said the FBR tax target for 2025–26 was Rs 14,131 billion. LCCI proposed only a 4 to 5 percent increase in the next budget with the target set around Rs 14,700 to 14,800 billion. He warned that unrealistic tax targets would negatively affect industry trade and overall economic activity.
He added that indirect taxes such as customs duty sales tax and federal excise duty increase the cost of doing business and contribute to inflation. He proposed realistic targets for customs duty at Rs 1,650 to 1,660 billion sales tax at Rs 4,950 to 4,980 billion and federal excise duty at Rs 920 to 930 billion to avoid extra burden on businesses and the public.
On income tax he said the government should focus on bringing new sectors into the tax net instead of increasing pressure on existing taxpayers especially salaried individuals and industries. He said sustainable revenue growth is not possible without expanding the tax base.
The LCCI President said that considering the regional situation a reasonable increase in defence spending is necessary. He proposed increasing the defence budget by 10 to 12 percent to around Rs 2,800 to 2,860 billion to meet national security requirements.
He said the Public Sector Development Programme currently set at Rs 1,000 billion is insufficient. LCCI recommended increasing it to Rs 1,200 to 1,300 billion to accelerate development projects create employment opportunities and support private sector growth.
He also stressed the need for further reduction in interest rates and refinancing of expensive domestic debt to reduce financial pressure and lower debt servicing costs.
Regarding social welfare he said stronger investment in technical and vocational training should be made along with the Benazir Income Support Programme. He proposed allocating Rs 100 to 150 billion for skill development to help young people secure employment opportunities.
On petroleum levy he said high fuel taxes create difficulties for industries and the public. He called for reducing the petroleum levy target in the next budget and finding alternative revenue sources to reduce dependence on fuel taxation.
The LCCI also expressed concern over the Punjab Infrastructure Development Cess and demanded its immediate removal saying it is increasing the cost of doing business and negatively affecting industry imports exports and supply chains.
The LCCI President expressed hope that the government will seriously consider the recommendations of the business community and present a budget that promotes economic stability industrial growth investment and public welfare.
