Ahmed Khan Malik

The small industries across Sindh have strongly criticized the Federal Budget 2025–26, terming it "disappointing" and "neglectful" of the needs of provincial industrial development.

As discontent brews, the small businesses say they are bracing for another year of financial hardship unless swift corrective measures are taken.

Speaking with WealthPK, representatives of the Sindh Small Industries Corporation (SSIC) and various local industrial associations expressed frustration over what they termed a "clear lack of allocation" for promotion and support of cottage and small-scale industries in the province.

 "The federal government has once again ignored the backbone of our local economy," said Ahmed Ali Memon, Chairman of Sindh Small Industries Association.

"We expected incentives, tax relief, and special packages to revive the struggling industrial zones in rural and semi-urban areas, but instead we see a budget heavily skewed toward large-scale industry and federal programs," he said.

The key concerns raised by the stakeholders include no increase in development funding for the industrial estates, absence of subsidies or financial aid for small manufacturers affected by inflation and energy costs and failure to introduce federal support schemes for skills training, technology upgrades, or access to finance for SMEs.

Memon also criticized what they perceive an unequal treatment of provinces, arguing that Punjab and the federal capital have received "preferential" allocations under various headings, while Sindh's share remains stagnant. Sadia Sheikh, an industrialist from Hyderabad, lamented the lack of energy sector reforms that could benefit small businesses.

"We are paying exorbitant utility rates but facing long power outages. How does the federal budget plan to make us competitive?" "Several business chambers have announced plans to submit a joint protest note to the federal finance ministry, urging reconsideration of the allocations.

They are also calling on the Sindh government to raise the issue at the Council of Common Interests (CCI), she said. She pointed out that small industries contribute significantly to employment and economic diversification. Overlooking this sector undermines inclusive growth, she said.

Credit: INP-WealthPk