KARACHI: Muhammad Amaan Paracha, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has sharply criticized the federal budget 2025–26, saying it falls short of the expectations of trade, industry, and the general public.
He denounced the imposition of 18% tax on e-commerce transactions, arguing it will suppress the potential of unemployed youth who had found income opportunities through online platforms. “This move is unjust and counterproductive,” he remarked.
Paracha also strongly opposed the 18% sales tax on solar panels, warning it will drive up prices and undermine efforts to shift toward clean energy. “Instead of capitalizing on the savings from scrapped IPP agreements—worth Rs 3 trillion—the government has imposed a regressive tax. The entire business community demands its immediate withdrawal,” he said.
He lamented the lack of relief for agriculture and education in the budget and noted over 40% anomalies that need urgent correction. With already soaring industrial power costs, taxing solar will further hurt production, he added.
Paracha acknowledged the necessity of a 21% increase in defense spending, citing heightened regional tensions, terrorism, and India’s water aggression. However, he urged the State Bank of Pakistan (SBP) to cut interest rates by 3% in its upcoming monetary policy to support economic revival.
