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KARACHI June 13,2026: Founder Chairman of the Salt Manufacturers Association Pakistan (SMAP), Ismail Suttar, has criticized the Federal Budget 2026-27, saying it fails to introduce meaningful measures to revive exports at a time when Pakistan urgently needs higher foreign exchange earnings.
In a statement, Suttar said the budget lacks a clear strategy to expand the country’s export base and address the challenges facing manufacturers. Although the government promised support for productive sectors, he said exporters received only limited tax relief.
Furthermore, he expressed disappointment over the government’s decision not to restore the Final Tax Regime (FTR) for exporters. He said exporters had sought a simple and predictable tax system that would reduce compliance costs and minimize interaction with tax authorities.
“Reducing the withholding tax rate while keeping exporters under the normal tax regime does not solve the problem,” he said. “Businesses need certainty and simplicity, not more paperwork and procedural hurdles.”
Moreover, Suttar warned that Pakistan’s regional competitors continue to support exporters through tax incentives, lower production costs, and simplified regulations. In contrast, he said the latest budget offers no comparable relief.
He also stressed that tax reforms alone cannot drive export growth. Instead, he urged the government to reduce industrial electricity and gas tariffs, which continue to undermine the competitiveness of Pakistani products in global markets.
In addition, he noted that the budget provides no clear plan to lower energy costs or resolve the circular debt crisis without placing further pressure on productive sectors.
Although Suttar welcomed the reduction in super tax rates for certain companies, he described the move as limited relief. He said the measure would have little impact unless the government introduced broader structural reforms.
Furthermore, he pointed out that many industries continue to operate below capacity because of rising production costs and policy uncertainty. Without targeted incentives for exporters and manufacturers, he warned, Pakistan will struggle to achieve sustainable economic growth.
Finally, Suttar urged the government to review its export policy in consultation with industry representatives. He called for measures that encourage investment, increase industrial output, and strengthen Pakistan’s competitiveness in international markets.
“Exports must remain at the center of economic policymaking,” he said. “Without higher export earnings, Pakistan cannot overcome recurring external account pressures or achieve long-term economic stability.”
