FBATI criticises federal, provincial budgets as anti-industry

KARACHI: President of the Federal B Area Association of Trade and Industries (FBATI) Shaikh Muhammad Tehseen has expressed strong dismay over the budgets presented by the federal and provincial governments, describing them as a roadmap of hardships for both industries and the public.

Tehseen criticised the introduction of new taxes, including sales tax on solar products and a carbon tax on petroleum, as measures that will significantly raise the cost of production and the cost of living nationwide.

He expressed concerns over the absence of relief for industries and small and medium enterprises (SMEs), saying the budgets failed to provide tax cuts, incentives or funding to support production for both export and domestic markets.

“Adding insult to injury, the government has increased petroleum prices, and policy rates remain elevated, leaving no room for industries to expand production,” he remarked.

He further highlighted the severe water crisis facing Karachi’s industries, noting that despite years of shortages, both the federal and provincial governments have failed to allocate adequate resources to address the issue. “Peanuts have been allocated to major water projects, and industries as well as citizens are left at the mercy of the tanker mafia,” he said.

Tehseen pointed out that the federal government has allocated Rs3.2 billion for the K-IV water project, while the Sindh government has pledged only Rs100 million for the same.

The FBATI president called on the government to revise the budget to address the needs of export-oriented industries, SMEs, and Karachi’s business community. He also urged authorities to withdraw the proposed increase in federal excise duty on packaged food items from 4.0 per cent to 20 per cent, warning it would further fuel inflation.

While he welcomed the tax relief granted to the salaried class, Tehseen stressed that the imposition of new taxes would exacerbate the financial burden on both businesses and consumers.