Business

Global trade remains resilient as businesses stay optimistic despite Trump’s tariffs

Published

9 months ago

October 1, 2025

LAHORE – Despite US President Trump’s tariffs continuing to impact trade flows significantly, business leaders remain cautiously optimistic about global trade prospects for their companies.

During one of the most turbulent periods for global trade in decades, business leaders and finance professionals were surveyed and interviewed for a significant report titled “The Outlook for Global Trade: Perspectives from Business Leaders.” This report was produced by the leading global accountancy organization, ACCA (the Association of Chartered Certified Accountants).

While 85% of respondents were concerned about the impacts of tariffs on their organisations, the results show company bosses are surprisingly positive about the future. The survey found optimistic views, with 56% of respondents expecting their organisations to increase their amount of global trade ‘significantly’ or ‘somewhat’ in the next three to five years. While less optimistically, 23% expected trade to decrease ‘somewhat’ or ‘significantly’.

A majority of C-suite executives were even more positive about the future, with 38% and 29% of respondents respectively expecting their firm’s amount of global trade to increase ‘significantly’ or ‘somewhat’.

Jonathan Ashworth, Chief Economist, ACCA, said: ‘2025 has been a monumental year for international trade, with the US raising its import tariffs to their highest level since the 1930s.

‘The global economy has so far proved more resilient than expected to the disruptions in global trade, but the risk is for some slowing over the coming quarters. Nevertheless, the survey results suggest that business leaders appear relatively optimistic about their enterprises’ medium-term trade prospects, and they are overwhelmingly positive about the benefits of an open global trading system.’

From our own interviews with business leaders and policy experts, it seems that they are not expecting an outright fall in global trade. However, rising protectionism and geopolitical tensions were clearly seen as important headwinds for its future growth. Rising tariffs were not viewed as the only friction in international trade; sanctions were also cited as a key issue.’

Perhaps it was not surprising that ‘geopolitical tensions’, ‘international or civil conflicts/wars’, and ‘protectionist policies in advanced economies’ were viewed as the top three risks. Business leaders were equally clear on the top three opportunities as well, which may in part explain their optimism for the future. Firmly in first place, cited by half of all respondents, was to ‘use technology (e.g., AI) to help facilitate global trade’, followed by ‘diversifying production, investment, or location of suppliers’ and ‘gain access to new technologies’.

The major changes in US trade policy could have profound impacts on future global trade patterns and flows. The survey revealed that 60% of organisations have already moved the location of some of their production, investment, or suppliers in recent years, and 61% say they are likely to do so in the next few years.

The research also flagged another danger: economists warn that a less open and more fragmented global trading system is likely to push up prices, and this was confirmed by the survey. Around 35% of respondents report that their organisation’s costs are likely to increase by more than 10% due to changes in global trade in the coming years, while 46% expect them to increase by up to 10%. 11% expect them to stay the same, while just 6% expect them to decrease.

Business

All about Budget 2026-27 approvals with key fiscal, tax and development changes

Published

7 hours ago

June 23, 2026

Haris Sarfraz Ali

ISLAMABAD – The National Assembly has approved the federal budget for FY2026-27 without opposition, introducing wide-ranging fiscal, tax and development measures effective from July 1, 2026.

The government has set GDP growth target at 4% with inflation projected at 8.2%, while FBR revenue target has been fixed at Rs15,264 billion, up 17.6% year-on-year. Total federal expenditure stands at Rs18,771 billion, including Rs8,054 billion for debt servicing.

Defence allocation has been raised to Rs3,000 billion, while the Public Sector Development Programme is set at Rs1,000 billion, with overall development spending at Rs3,675 billion.

Social protection under BISP has been increased to Rs838 billion, covering 12 million families and education stipends for 9.2 million children. The PM Apna Ghar scheme has been allocated Rs71 billion.

Tax relief measures include reductions in income tax for salaried individuals, proposed removal of the 10% surcharge, and business tax cuts including lower super tax.

Relief has also been extended to exporters, IT sector, property transactions, and foreign card payments, while some levies such as Capital Value Tax on financial assets are proposed for abolition.

Development priorities include transport, energy, water, housing, and urban infrastructure, with major projects such as ML-1 Karachi–Rohri, Diamer-Bhasha Dam, Mohmand Dam, and K-IV receiving funding.

Salary and pension hikes of 7% each and a 10% increase in minimum wage have been proposed, alongside EV incentives, privatization of state entities, and expansion of digital economy initiatives.

Further details of implementation and tax procedures will be issued through official notifications.

Area	Original Finance Bill	Standing Committees Version
Imported mobile phones	No facility to pay PTA/DIRBS tax in installments	Individuals may be allowed to pay imported phone tax in installments, provided installments are cleared before the end of the financial year
Mobile phone tax rates	Existing Ninth Schedule rates were not revised	Rates are still not reduced or revised; only the installment facility is added
Petroleum levy framework	Proposed detailed rules for petroleum and carbonated support levies, including reporting, recovery and late-payment surcharge	The entire proposed amendment package has been removed
Life insurance and takaful payouts	Tax exemption applied only after completing seven years	Exemption will apply after four years. The 10% tax will now cover payouts after one year but before four years
Social media income tax	5% for resident persons on the ATL and 5% for non-residents	Rate follows tax return filing status only, removing ATL/non-resident distinction from the rate wording
Section 6A fixed-tax regime	Tax became adjustable where turnover exceeded Rs. 200 million	Persons with turnover up to Rs. 200 million may also opt out through a final and irrevocable certificate for Tax Year 2027
Failure to integrate with FBR	Up to 5% of expenditure could be disallowed	Disallowance reduced to 3% of expenditure
Export-oriented businesses	No corresponding exemption	Super tax under Section 4C will not apply where export proceeds exceed 80% of total turnover
Private equity and venture-capital funds	No new exemption in the original proposal	Income exemption introduced where at least 90% of accounting income is distributed, subject to conditions
Airline imports	Sales tax exemption was limited to PIA	Exemption extended to aircraft and parts imported or leased by any Pakistan-registered airline, effective July 1, 2027
Coal imported for power producers	No special 1% minimum value-addition rate	Minimum value-addition tax fixed at 1% where imported coal is supplied directly and exclusively to IPPs
FBR sharing tax return data	FBR could share sectoral sales-tax return data among registered businesses under non-disclosure agreements	This proposed power has been removed
Customs penalty	Certain customs penalty proposed to rise from Rs. 500,000 to Rs. 10 million	Increase reduced to Rs. 5 million
Independent scrutiny committees	No provision for a chartered accountant as a member	Committees may co-opt a chartered accountant as a non-voting member; limitation periods are also protected during committee review
Appointment of external auditors	Taxpayer had not stated right to object to FBR’s first nominee	Taxpayer may object within 15 days; then FBR may appoint another auditor at its discretion

Business

OPPO joins hands with Ufone/PTCL Group to expand access to 5G-ready devices

Published

8 hours ago

June 23, 2026

News Desk

LAHORE – Smartphone manufacturer OPPO Pakistan and telecommunications provider Ufone/PTCL Group have entered into a strategic partnership aimed at promoting 5G-ready devices and strengthening collaboration in Pakistan’s evolving digital landscape.

The agreement was formalised during a signing ceremony held in Lahore on Monday, with representatives from both organisations describing the move as a step towards accelerating the adoption of next-generation mobile technology in the country.

According to a statement, the partnership will focus on several areas, including the distribution of 5G-enabled smartphones, co-branded device and data packages, dedicated retail experiences and joint marketing initiatives designed to increase consumer awareness of emerging technologies.

Under the agreement, customers will have access to bundled offers pairing OPPO’s latest 5G-compatible smartphones with Ufone’s mobile network services. The companies also plan to establish dedicated 5G experience zones and shop-in-shop outlets to showcase devices and connectivity solutions.

Officials said the collaboration combines OPPO’s smartphone portfolio with Ufone/PTCL Group’s nationwide network infrastructure and retail presence, with the goal of expanding access to advanced digital services and improving customer experiences.

The partnership comes as Pakistan prepares for wider deployment of 5G technology, which is expected to enhance mobile internet speeds, support emerging digital applications and strengthen the country’s broader digital ecosystem.

Both companies said the agreement reflects a shared commitment to innovation and digital transformation, while creating opportunities for future collaboration in connectivity, technology and consumer engagement.

The initiative is expected to support efforts aimed at increasing the availability of 5G-ready devices and services, helping consumers benefit from next-generation mobile technology as the country moves towards a more connected future.

Business

New Token Tax regime to affect cars up to 1300cc in capital

Published

12 hours ago

June 23, 2026

Web Desk

ISLAMABAD – The federal government has decided to implement revised token tax rates for vehicles in Islamabad from July 1 under the Finance Bill 2026-27, according to official sources.

The excise and taxation department in the capital collects token tax from vehicle owners as part of the annual registration and taxation system, which helps maintain vehicle records and generate government revenue.

Token tax is an annual levy payable by vehicle owners within a stipulated period, with failure to comply resulting in penalties and legal complications.

Under the revised structure, a fixed one-time token tax of Rs10,000 will be imposed on vehicles with engine capacities of up to 1,000cc. This category includes models such as Suzuki Alto, Cultus and Kia Picanto.

For vehicles in the same category manufactured before 2010, the token tax will be set at Rs20,000.

Vehicles with engine capacities between 1,001cc and 1,300cc will be subject to tax calculated at 0.3 per cent of their invoice value. In addition, a federal token tax rate of 0.25pc of the invoice value will also apply from July 1.

According to the Finance Bill, vehicles manufactured before 2010 will be charged a fixed token tax of Rs2,500, while those manufactured in or after 2010 will be taxed at Rs6,200.

The revised rates will come into effect from the start of the new fiscal year as part of broader taxation measures outlined in the federal budget framework.