Lahore: The Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) has expressed strong support for the Federal Board of Revenue’s (FBR) decision to retract certain tax measures initially proposed in the Federal Budget 2025-26. This move is seen as pivotal in restoring business confidence and stabilizing Pakistan’s economy.

The decision to reverse the tax policies came with the intervention of Field Marshal General Asim Munir, highlighting a commitment to addressing the economic challenges faced by the private sector. The PCJCCI views this action as a step towards sustainable growth.

Zafar Iqbal, Acting President of PCJCCI, emphasized that the initial tax proposals threatened over 3.5 million small and medium enterprises (SMEs) and could have led to the loss of more than 1.2 million jobs. He noted that the reversal sends a strong message of support to the business community.

The economic context was already challenging, with GDP growth for FY 2024-25 recorded at 2.4%, below the anticipated 3.5%. The industrial sector saw a decline due to reduced business activity, while Foreign Direct Investment (FDI) from China dropped by 18% in FY 2024, attributed to tax unpredictability.

Secretary General of PCJCCI, Mr. Salahuddin Hanif, commented that the policy reversal would bolster bilateral cooperation under CPEC Phase II and renew investor confidence from China. He expressed optimism for future joint ventures and job creation.

The PCJCCI reaffirmed its commitment to fostering a resilient economy through strengthened collaboration between Pakistan and China.