The Lasbela Chamber of Commerce and Industry (LCCI) has warned the federal government today that if immediate reforms are not made in the upcoming 2026-27 budget, we will lose investors, particularly in tax, energy, and trade policies. Their appeal emphasizes the need for immediate measures to stimulate industrial growth and attract investment, stressing that failure to implement these changes could risk losing investors.
LCCI emphasizes the importance of aligning national economic strategies with the government’s industrial development and employment creation goals. They support a competitive and stable business environment to facilitate economic recovery, reduce inflation, and minimize the fiscal deficit.
Regarding tax reforms, the chamber calls for the elimination of ad-hoc tax measures and a gradual reduction in corporate tax rates to align them with neighboring countries. Simplifying the tax system and rationalizing withholding taxes are also considered necessary. To further boost investment, they propose a streamlined process for resolving tax disputes and special incentives for export industries, pharmaceuticals, and the agricultural processing sectors.
Energy costs are a significant concern. LCCI recommends competitive long-term power purchase agreements and timely subsidies for struggling industries, as well as the immediate integration of renewable energy sources to reduce electricity costs.
Improvements in trade are also part of the agenda, with demands to expedite duty drawback and tax refund systems. Modernizing port and customs operations through digitization and offering 24-hour services are considered key measures. The chamber supports advancing preferential market access agreements with key trading partners to boost exports.
Additionally, LCCI emphasizes the need for financial facilities, proposing the broad availability of credit guarantee schemes and refinancing options for exporters and SMEs.
The chamber calls on the government to allocate funds for the development of SME incubators and industrial clusters. Simplifying the land allocation process and investing in workforce skill improvement are also among the priorities. To encourage technological advancement, LCCI proposes tax credits for training programs, grants for joint research, and incentives for automation and digital transformation.
These comprehensive recommendations aim to restore investor confidence and pave the way for sustainable economic growth.