Karachi traders announce citywide shutdown over controversial government law

The Karachi Chamber of Commerce and Industry (KCCI) on Friday announced a complete shutdown of business activities across the city for Saturday in protest against a controversial new government law.

The call for a strike has been unanimously backed by all major trade associations, including transporters, exporters, and small traders.

“This is a peaceful strike for our rights,” the KCCI president said during a press conference. “Those participating are not tax evaders—they are the very people who contribute to the country’s economy by paying taxes and keeping businesses running.”

The president said the strike is the result of extensive consultations with stakeholders from every sector of Karachi’s economy.

Tomorrow’s shutdown is a one-day protest, but the Chamber warned that action could escalate if their demands are not met.

“We are observing a one-day strike for now,” the president said. “But if we do not receive a written assurance from the government before the next meeting, we will intensify our protest.”

He said future strikes could span one or two days a week, or even a full week.

“We no longer trust verbal commitments,” he said. “Only a written agreement will be accepted.”

The KCCI described the government legislation as a “black law” that traders argue is damaging to business and economic stability. The Chamber has not publicly shared details of the law, but said the protest has gained momentum citywide and could spread nationwide.

Calls for similar strikes have been made across the country as the trading community rallies in opposition to the legislation.

Karachi is expected to come to a standstill on Saturday, with major markets, commercial areas, and public transport operations shut down.

Previously, the business and transport community raised concerns over several amendments in the recently passed Finance Act.

During a press conference earlier this week, KCCI President highlighted five specific clauses in the Finance Act 2025, calling them damaging to trade and industry. These include:

1. Immediate withdrawal of Sections 37A and 37B, which allow FBR officers to arrest taxpayers without due process.
   
2. Abolition of Section 21(S), penalizing cash transactions over Rs. 200,000.
3. Suspension of mandatory digital invoicing under SRO 709.
4. Withdrawal of E-Bility requirements under Section 40(C).
5. Restoration of the Final Tax Regime (FTR) for exporters, which was recently replaced.

Bilwani added that over 50 associations nationwide have formally endorsed the strike. Protests are already taking place in several cities, as frustration grows over what is seen as a harsh and regressive tax policy.