HSATI says despite positive measures budget omits rehab of site areas

HYDERABAD, Jun 13 (APP): The Hyderabad SITE Association of Trade and Industry (HSATI) views the federal budget 2026-27 introduced tariff and tax reforms and the limited digitalization measures as partially positive for the industrial and commercial sectors. However, the HSATI’s Chairman Zubair Ghangra, Senior Vice President Aamir Shahab and Vice President Esar Kumar said in a joint statement released here on Saturday more measures were required for the country’s real economic needs, industrial development, employment promotion and export expansion goals.

Ghangra said a reduction in the cost of industrial raw materials and machinery by means of a cut in customs duty, additional customs duty and regulatory duty under the National Tariff Policy 2025-30 was a welcome step.

He added that the measures such as relief on agricultural machinery, reduction in withholding tax on exports, extension of incentives for IT exports and partial reduction in super tax could be expected to improve the investment climate. But, he underscored, more dedicated policy initiatives were needed for a real industrial revival as fundamental structural problems still existed.

He contended that the budget’s measures which were related only to the high-income classes would not have a wide impact on the overall economy. “The business community is vulnerable to high energy prices, expensive loans and unstable production costs, but the budget hasn’t presented any comprehensive strategy to address these fundamental problems,” the HSATI’s chief said.According to him, one of the most important factors for industrial development was the cost of energy, but no clear policy had been included to reduce electricity and gas prices.

He lamented that the industrial zones of Sindh, including Hyderabad division, were constantly facing basic infrastructure problems, but the budget had not announced a special package for rehabilitation of those zones.

The association’s Senior Vice President Shahab said the budget should have provided a comprehensive program for industrial expansion, development of SMEs and creation of employment opportunities.

“The country’s economy is already burdened by debts and this budget also continues to have a huge fiscal deficit and dependence on debt, which is a dangerous trend for long-term economic stability,” he argued

Vice President Kumar said Hyderabad, Kotri and other industrial clusters were facing serious problems in basic infrastructure like roads, water, drainage and industrial facilities, but no significant sanction had been earmarked for those zones.

“Without industrial development, neither employment can be created nor exports can increase,” he cautioned.