By Farooq Awan

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed restoration and enhancement of tax rebates for academic faculty and researchers in the federal budget FY2026-27, saying that the measure could help support talent retention and strengthen Pakistan’s higher education ecosystem.

According to the FPCCI budget proposals document available with Wealth Pakistan, the business body stated that reducing tax incentives for faculty members and researchers may affect the ability of educational institutions to retain highly skilled professionals and promote research activity.

The chamber noted that academic faculty and researchers previously received a tax rebate of 40%, which was later reduced to 25%.

According to the document, the rebate was subsequently withdrawn completely from Tax Year 2025 onward.

FPCCI stated that the removal of the incentive has adversely affected highly qualified professionals working in higher education institutions and research-related fields.

The organization maintained that academic institutions rely heavily on skilled faculty members and researchers to strengthen educational standards, expand research activity, and improve knowledge development.

According to the proposals, the organization believes that restoring and enhancing tax rebates can support efforts aimed at retaining experienced professionals within Pakistan’s educational system.

FPCCI stated that faculty members and researchers play an important role in developing human capital and producing research that can contribute to economic and technological advancement.

The chamber noted that universities and research institutions serve as centers for innovation and skills development, and strengthening such institutions can support broader development objectives.

According to the document, retaining highly qualified professionals has become increasingly important as educational institutions seek to improve research standards and strengthen links between academia and industry.

FPCCI maintained that incentives designed for academic professionals can help create an environment that supports research excellence and knowledge generation.

The organization also stated that a stronger higher education system contributes to workforce development by producing skilled graduates capable of meeting evolving industry requirements.

According to the proposals, improving support mechanisms for researchers and faculty members can also contribute to innovation and productivity across different sectors of the economy.

The chamber emphasized that investment in human capital remains important for long-term economic development and that policy measures aimed at supporting academic and research communities can strengthen institutional capacity in the country.

Credit: INP-WealthPk