KATI Welcomes Budget Measures, Seeks Stronger Industrial Support

President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi Rajput, said the Rs18.771 trillion federal budget could improve business confidence, support industries and encourage economic growth.

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However, he noted that the success of the budget will depend on effective implementation and practical support for businesses.

Rajput said the government had set ambitious revenue targets for the coming fiscal year. At the same time, he warned that achieving these goals may remain difficult because production costs in Pakistan continue to exceed those in several neighbouring countries.

Tax Reforms and Industrial Growth

Rajput stressed that authorities should expand the tax net and bring more people into the formal economy instead of increasing pressure on existing taxpayers.

He welcomed the decision to remove the 9 percent surcharge on salaried individuals and reduce income tax rates.

According to Rajput, these measures could support economic activity and strengthen market confidence.

He also welcomed the increase in the minimum wage. However, he said the budget still offers limited incentives for accelerating industrial growth.

The KATI president described the reduction in super tax and the removal of capital value tax on foreign assets as positive developments for the business sector.

He added that industrialists had demanded these measures for a long time and argued that lower taxes could encourage investment and reduce operating costs.

Karachi Development and Export Challenges

Rajput welcomed the allocation of Rs10 billion for Karachi and the K-IV water supply project.

He said Karachi remains central to Pakistan’s economy but continues to face major infrastructure challenges.

According to him, completing the K-IV project will support both urban development and broader economic progress.

At the same time, he expressed concern over the absence of a clear strategy for highways and large infrastructure projects.

Rajput said Karachi contributes significantly to national revenue and industrial output. Therefore, he urged the federal government to allocate additional resources for the city’s development needs.

Discussing exports, he said the budget includes some positive measures but added that tax relief alone will not deliver significant export growth.

He called for lower energy costs, faster export refunds, improved financing access and reforms aimed at reducing production expenses.

Rajput concluded that it remains too early to determine whether the budget is fully business-friendly or public-friendly. Even so, he said several measures appear encouraging.

He reaffirmed the business community’s commitment to working with the government to strengthen industry, expand exports and support Pakistan’s economic growth.