Business leaders slam federal budget as 'camouflage,' warn of economic stagnation

Business leaders on Tuesday dismissed the federal budget for 2025-26 as a "camouflage budget," saying it sets unrealistic economic targets and fails to provide relief for businesses or ordinary citizens.

Zubair Motiwala, chairman of the Businessmen Group (BMG), said while the budget includes digitalization efforts and promotes a cashless economy, it lacks measures to boost exports or industrialization — key drivers of sustainable growth.

Speaking at a press conference at the Karachi Chamber of Commerce and Industry (KCCI), Motiwala criticized the government for raising economic targets despite missing key goals in the previous fiscal year, including GDP growth and fiscal consolidation.

"How can these ambitious targets be achieved in an unstable economy marked by high inflation and IMF restrictions?" he asked.

Motiwala was joined by BMG Vice Chairman Anjum Nisar, KCCI President Muhammad Jawed Bilwani and other business leaders. They warned that the government’s revenue strategy relies on squeezing compliant taxpayers rather than expanding the tax base, which could further stifle economic activity.

The BMG chairman said the budget neglects critical reforms needed to lower business costs, particularly in energy-intensive sectors like textiles. Despite industry demands, no cuts were announced for high gas prices, leaving Pakistani exports uncompetitive.

"Without reducing energy costs and interest rates, growth targets are unattainable," Motiwala said. He also criticized the minimal allocation of 2.783 billion rupees for climate change, despite Pakistan’s increasing vulnerability to climate disasters.

While acknowledging the budget complies with IMF conditions, Motiwala said it fails to address Pakistan’s industrial needs. "This budget may satisfy lenders but offers no hope for businesses or the public," he said.

Anjum Nisar warned that excessive tax enforcement could create a "climate of fear" for businesses instead of encouraging growth. He urged the government to invest in Karachi’s infrastructure, calling the city Pakistan’s economic backbone.

KCCI President Muhammad Jawed Bilwani rejected the budget, saying it provides no relief for industries or households struggling with high electricity bills and inflation.

"The government claims inflation is down, but people can’t afford basic necessities," he said. He criticized the lack of measures to reduce power tariffs and interest rates, which he said are crippling businesses.

Bilwani also condemned the small allocation for Karachi’s K-IV water project, calling it a sign of neglect for the city’s needs. He warned that without tax reforms and industrial growth, Pakistan’s economic crisis will deepen.

The business leaders urged the government to shift focus from short-term revenue collection to long-term economic expansion, warning that current policies risk further stagnation.