Budget FY26-27: Reaction

June 13, 2026 (MLN): The federal budget FY27 drew broad appreciation from business bodies, consumer advocacy groups, the trader community, and citizens, with stakeholders welcoming measures targeting industrial growth, affordable housing, export competitiveness, and tax relief for small businesses.

Consumer Welfare

Chairman of the Consumers Association of Pakistan (CAP), Kaukab Iqbal, described the budget as containing encouraging initiatives for industrial expansion, local manufacturing, renewable energy, and digital transformation.

He said measures facilitating small and medium enterprises (SMEs) and digital financial services had the potential to strengthen market competitiveness and improve consumer access to quality goods.

Kaukab Iqbal urged manufacturers, importers, and retailers to pass on the benefits of any duty and tax reductions to consumers rather than absorbing them into profit margins.

He said CAP would continue engaging with government institutions and industry stakeholders to promote consumer welfare and market transparency.

Furniture Industry

Pakistan Furniture Council (PFC) Chief Executive Officer Mian Kashif Ashfaq called the budget pragmatic and business-friendly, saying the government's focus on economic stability and SME support would restore business confidence and create opportunities for entrepreneurs.

He appreciated initiatives to expand the tax base, promote digitisation, and encourage economic documentation, saying these steps would improve transparency and strengthen revenue generation without burdening existing taxpayers.

Mian Ashfaq stressed the need for continued support to value-added industries, including furniture, to enhance their competitiveness in international markets, adding that Pakistan held immense export potential in the sector if backed by innovation, modern technology, and skill development.

He also welcomed allocations for infrastructure and energy improvements, noting that reliable utilities and efficient logistics were essential to reducing production costs.

Housing Sector

The government's proposed allocation of Rs71 billion for the Prime Minister's Apna Ghar Scheme drew particular public attention, with citizens, economists, and business representatives telling APP  they viewed it as a positive step toward addressing the country's housing shortage.

Economic experts noted that the housing and construction sector carries strong linkages with more than 40 allied industries including cement, steel, paint, ceramics, and sanitary ware meaning increased investment in housing would generate demand across these sectors.

Small business representatives said heightened construction activity would benefit suppliers, retailers, transporters, and service providers, while economists emphasized the multiplier effect of housing investment on employment and output.

Traders' Relief

The trader community also welcomed the budget's decision to exempt small traders from the super tax, describing it as a business-friendly initiative that would help sustain commercial activity across the country.

Trader representatives said the introduction of a fixed tax system would provide significant relief to small shopkeepers by simplifying compliance, ensuring payment predictability, and reducing financial pressure.

They said such reforms would encourage small businesses to grow and contribute more actively to the local economy.

MNA Mirza Ikhtiar Baig similarly hailed the super tax exemption, saying the fixed tax system would improve transparency in tax collection and contribute to greater stability in the business environment.

Senior citizen Amjad Ali said the expansion of the Benazir Income Support Programme (BISP) Kafalat Programme to cover 12 million families would enable a larger number of deserving women to benefit from financial assistance, calling it a positive step towards improving the living conditions of low-income families.

Retired officer Jawad Khan welcomed the broadened scope of the Educational Stipends Programme, expected to benefit around 9.2 million children, and said the allocation of Rs838 billion for BISP in the upcoming fiscal year reflected the government's seriousness in addressing poverty.

Other citizens urged authorities to ensure transparency and easy access to these facilities so that deserving women, including widows and underprivileged families, could benefit, while expressing gratitude to the federal government for prioritising social welfare in the national budget.

Business Community

The Pakistan Business Council (PBC) also welcomed several growth-oriented measures in the budget, describing them as signals that sustainable, inclusive economic growth is now a government priority, while stressing that sustaining growth would require policy continuity and structural reforms.

PBC Chairperson Dr Zeelaf Munir said the budget reflected a shift towards sustainable economic growth, encouraging for businesses and investors, with relief measures indicating an inclusive effort to support productive economic activity despite limited fiscal space.

She said the measures should be viewed as necessary first steps rather than the finish line, adding that consistency of policy was key.

PBC CEO Javed Kureishi said the budget signalled that the government was listening to stakeholders of Pakistan's formal economy, welcoming movement on the super tax, relief for the salaried class, and reduced tax burden on export proceeds that would improve liquidity for exporters.

He acknowledged the Prime Minister's personal commitment and the finance team's efforts, expressing hope that the collaborative approach would continue into implementation.

PBC called on the government to maintain momentum on broadening the tax base, accelerate energy sector reforms to bring industrial costs closer to regional benchmarks, pursue faster privatisation of loss-making state-owned enterprises, and adopt a three-year reform framework to give businesses certainty to plan and invest.

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