APBF backs Budget 2025-26

LAHORE: The All Pakistan Business Forum (APBF) has described the federal budget for 2025-26 as a promising and balanced effort, particularly given the government’s limited fiscal space and ongoing engagement with the International Monetary Fund (IMF).

The forum defended the increase in defence spending, calling it a necessary line item in light of the evolving regional security environment. With India adopting a more aggressive posture and hybrid threats on the rise, the government has justifiably prioritised military preparedness by raising defence allocations by over 20 per cent.

APBF Chairperson Ibrahim Qureshi welcomed budgetary measures aimed at easing pressure on the small and medium-sized enterprise (SME) sector -- a longstanding demand of the forum. In a climate of high interest rates and limited credit availability, he lauded steps such as enhanced access to soft financing through the State Bank’s refinancing schemes, reduced import duties on industrial inputs and targeted tax relief.

“Rather than blanket austerity, the government has introduced focused incentives -- particularly for exporters and SMEs. This reflects a coordinated approach by institutions such as the State Bank of Pakistan and the Ministry of Commerce, aligned with ground realities,” Qureshi said.