Post Budget Session: RCCI Seeks PM, DPM Intervention to Address Budget Anomalies

RAWALPINDI ( WNAM REPORT ): The Rawalpindi Chamber of Commerce and Industry (RCCI) convened a high-level Post-Budget Session to assess the Federal Budget 2025–26, drawing significant participation from business leaders, economists, and tax experts. The session was chaired by RCCI Acting President Khalid Farooq Qazi and featured key contributions from Group Leader Sohail Altaf, former President and Vice Chairman Think Tank on Economy Raja Amer Iqbal, Vice President Fahad Barlas, Executive Committee Members, former RCCI Presidents, FPCCI Vice President Tariq Jadoon, and prominent representatives of trader associations including Shahid Ghafoor Pracha, Sharjeel Mir, and Sheikh Hafeez.
Notable speakers included:
• Dr. Muhammad Ahmed Zubair, Former Chief Economist, Planning Commission
• Shehzad Malik, President, ICMA International
• Faraz Fazal, President, Rawalpindi-Islamabad Tax Bar Association
• Syed Tanseer Bukhari, Advocate, Supreme Court of Pakistan
Experts provided detailed analysis of the budget’s provisions on sales tax, income tax, federal excise duties, and digital payment mechanisms.
Key Concerns and Recommendations:
• Flawed Budget Approval: RCCI expressed deep concern over the approval of the federal budget without addressing its structural flaws and called for the removal of controversial clauses in the Finance Act.
• Anti-Investment Environment: The budget was described as anti-business and anti-investment, with warnings that it may drive traders and industrialists to relocate operations abroad.
• Urgent Government Intervention Needed: RCCI issued an SOS appeal to Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar, urging them to engage directly with business leaders to avert potential nationwide strikes.
• Abuse of Power in Tax Law: Provisions under Sections 37-A and 37-B of the Finance Act 2025–26, which allow FBR officers to arrest and investigate without judicial oversight, were strongly opposed. RCCI termed these measures unconstitutional and conducive to fear and corruption.
• Section 21(S) – Unworkable Cash Payment Limitations: RCCI objected to the 50% disallowance of business expenses for cash payments exceeding Rs. 200,000, calling it unrealistic and detrimental to business operations.
• Digital Taxation Challenges: The Chamber highlighted serious issues with digital invoicing, e-bilty, and e-invoicing, citing inadequate infrastructure, lack of training, and weak data security as major barriers to effective implementation in Pakistan.
• Call for Green Energy Support: RCCI demanded the withdrawal of taxes on solar products to encourage the adoption of renewable energy.
• Opposition to Liberal Vehicle Imports: The government’s move to liberalize vehicle imports was criticized for undermining local manufacturers, damaging the domestic auto parts industry, and putting pressure on the national currency.
Closing Remarks
RCCI reiterated its commitment to economic reform and policy dialogue but warned that without immediate corrective action, the current budget risks destabilizing Pakistan’s business environment. The Chamber emphasized the urgent need for the government to consult stakeholders and revise damaging provisions in the Finance Act.