Chairman of the Ferozepur Road Industrial Association (FRIA), Shahbaz Aslam, has urged the government to frame the upcoming federal budget 2025-26 with a strong pro-industry focus to tackle the deepening industrial slowdown, rising costs of production, and waning investor confidence.
Speaking to the media after a consultative meeting with FRIA members, Shahbaz Aslam expressed concern over the repeated delays in the budget presentation and the government's reported move to hike petroleum levies. He warned that increasing indirect taxation will further burden the already struggling industrial units, leading to more closures and layoffs.
“The government must realise that the survival of Pakistan’s manufacturing base depends on ease of doing business, affordable inputs, and stable policies,” Aslam said. “Instead of burdening industries with more levies, we need targeted support to restore competitiveness.”
The FRIA chairman noted that many medium-scale industries along Ferozepur Road have reduced operations due to high energy tariffs, inconsistent raw material supply, and uncertain fiscal policies. He warned that unless the budget includes meaningful relief measures, such as reduction in utility rates and duty exemptions on essential machinery and raw material, industrial growth will stagnate further.
Shahbaz Aslam proposed a flat reduction in sales tax for the industrial sector and demanded that pending refunds be cleared immediately to ease cash flow issues for manufacturers. He added that a clear industrial policy and reduced regulatory compliance costs were essential to attract both local and foreign investment into the manufacturing sector.
“We request the government to avoid ad hoc taxation to meet IMF targets and instead facilitate production and exports. An industry-led recovery is the only sustainable path for job creation and economic stability,” he stressed.
FRIA also called for reining in smuggling and under-invoicing that are eroding the share of domestic producers. Aslam urged the government to work closely with industry stakeholders while finalising the budget to ensure pragmatic, inclusive, and growth-centric fiscal planning.
He added that Ferozepur Road – once the heart of Lahore’s industrial belt – could regain its past vitality if the budget 2025-26 recognises industry as the backbone of the national economy and addresses its challenges accordingly. He warned that unless the budget includes meaningful relief measures, such as reduction in utility rates and duty exemptions on essential machinery and raw material, industrial growth will stagnate further. He added that a clear industrial policy and reduced regulatory compliance costs were essential to attract both local and foreign investment into the manufacturing sector.