LAHORE: Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) welcomes the Federal Board of Revenue’s (FBR) recent decision to withdraw the excessive and impractical tax measures proposed in the Federal Budget 2025–26.
This reversal marks a critical step towards restoring business confidence and stabilizing Pakistan’s economic landscape. This decision reflects a deep understanding of the economic challenges facing the private sector and a genuine commitment to inclusive, sustainable growth, PCJCCI Acting President Zafar Iqbal stated this here.
He added that Pakistan’s GDP growth for FY 2024–25 was recorded at 2.4 percent, already below the projected 3.5 percent due to inflationary pressures and high interest rates. Zafar Iqbal claimed that industrial sector, contributing 19.1 percent to GDP, had shown a decline of 1.3 percent in the last quarter, mainly due to reduced business activity and investment uncertainty. Foreign Direct Investment (FDI) from China declined by 18 percent in FY 2024 compared to the previous year, largely attributed to tax unpredictability and regulatory instability.
Salahuddin Hanif, Secretary General PCJCCI, said that the reversal of these policies paves the way for enhanced bilateral cooperation under CPEC Phase II and renewed investor confidence from China. “We are confident that this business-friendly shift will lead to increased joint ventures, job creation, and SME development,” he said.
He added that PCJCCI reaffirms commitment to contributing towards a resilient and globally competitive economy through strengthened Pakistan-China business collaboration.
