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KARACHI June 13,2026: Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), Salim Valimuhammad, has criticized the Federal Budget 2026-27, saying it ignores key proposals from commercial importers and fails to address long-standing trade sector concerns.
In a statement, he said the government retained the Export Facilitation Scheme (EFS) despite repeated calls for its abolition. Moreover, he warned that the scheme lacks safeguards against misuse, which will deepen inequality between industrial and commercial importers.
He further said that some importers misuse industrial concessions. They import goods under exemptions and then sell them in the open market. As a result, he noted, unfair competition increases for commercial importers who fully pay duties and taxes.
In addition, he stressed that this practice causes revenue losses for the government. It also distorts the market and weakens compliance in the trade system.
Meanwhile, he pointed out a major imbalance in oversight. Industrial importers enjoy exemptions, but monitoring remains weak. Therefore, misuse of concessionary schemes continues unchecked, he added.
Commenting on the budget, he said the government provided relief to salaried individuals. However, he added that it failed to offer meaningful support to traders and the wider business community.
Moreover, he said high taxes and overall cost burdens remain unchanged. As a result, business activity has not received the required stimulus.
He further stated that the budget does not offer incentives for commercial growth. Therefore, he said, traders continue to face difficult operating conditions.
Finally, he urged the government to introduce a strong monitoring system for industrial imports. He stressed that authorities must ensure concessionary schemes serve only their intended purpose.
In conclusion, he warned that failure to fix tax distortions and import misuse will continue to hurt the commercial sector. Ultimately, he said, this will negatively impact revenue collection, business growth, and the wider economy.
