PIBF welcomes export-focused federal budget

LAHORE: The Pak International Business Forum (PIBF) has welcomed the Federal Budget 2026-27 as a positive step towards economic stabilization and export-led growth, stating that the government’s focus on increasing exports, encouraging investment, and supporting industrial activity reflects the right direction for the economy. The PIBF, however, emphasized that achieving the budget’s export targets will remain an uphill task unless the government takes urgent measures to reduce the cost of doing business by bringing the policy rate into single digits and substantially lowering petroleum and electricity prices for industries. The PIBF said that sustainable export growth cannot be achieved through fiscal measures alone and must be supported by competitive financing and energy costs. President PIBF Dr Mushtaq Mangat said, “The government deserves appreciation for recognizing exports as the engine of economic growth. However, exporters are competing in a highly challenging global environment where financing costs and energy prices play a decisive role. Unless the policy rate is reduced to a single-digit level and industrial energy costs are brought down, achieving the desired export growth will be extremely difficult. ” General Secretary PIBF Ejaz Tanveer said that industrial expansion and investment are directly linked to the availability of affordable credit. “High borrowing costs discourage fresh investment, limit industrial expansion and place additional pressure on existing businesses. A significant reduction in the policy rate will stimulate economic activity, support manufacturing and encourage entrepreneurs to undertake new investments, ” he said. Chief Organizer PIBF Muaz Qazi urged the government to pass on the benefit of lower international oil prices to domestic consumers and businesses. “Petroleum prices affect every segment of the economy through transportation and logistics costs. ” The forum appreciated the government’s efforts to broaden the tax base, improve economic documentation and create an environment conducive to business growth. The PIBF further said that Pakistan possesses significant untapped export potential in sectors such as textiles, information technology, engineering goods, pharmaceuticals, agriculture and value-added manufacturing. Copyright Business Recorder, 2026

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