Policy gaps in budget may hit industrial recovery, exports

ISLAMABAD  –   Trade and industry stakeholders have raised serious concerns over policy inconsistencies in the federal budget 2025–26, warning that without immediate corrective measures, the current fiscal framework could undermine industrial recovery and stall export growth.

While the budget includes measures aimed at documentation and revenue generation, industrial observers believe it fails to deliver the targeted support necessary to offset rising input costs, weak global demand, and local economic uncertainty. There is growing criticism that the focus on indirect taxation and documentation initiatives lacks balance, with insufficient attention given to reducing the cost of doing business in Pakistan.

Industrial representatives have expressed disappointment over the absence of relief in electricity tariffs and industrial financing. High power and fuel prices, coupled with elevated interest rates, continue to impact the competitiveness of local manufacturers— especially small and medium enterprises (SMEs). The silence on these core issues, they argue, signals a disconnect between budget priorities and the realities faced by productive sectors.