Pakistan’s leading trade body protests ‘unfriendly’ budget measures

The Karachi Chamber of Commerce & Industry (KCCI), one of Pakistan’s leading business chambers, has launched a major protest against provisions in the country’s Finance Bill for 2025-26.

The KCCI's protest, sparked by what it calls "oppressive" provisions in the bill, has escalated with bold banners being displayed throughout Karachi.

KCCI President Muhammad Jawed Bilwani criticized claims made by Pakistan’s Finance Minister that the budget is “business-friendly” and “public-friendly.” “These claims are completely divorced from reality,” Bilwani said in a statement. “Industrialists and exporters are unified in their frustration -- there is no relief for the business community in this budget.”

Bilwani painted a bleak picture of Pakistan's economic climate, citing factors like rising energy costs, gas shortages, poor-quality electricity, and delayed tax refunds that have stifled liquidity. He noted that while exports have sustained due to the resilience of Pakistan’s business community, many international buyers are now urging Pakistani businesses to relocate to more stable and business-friendly environments.

The focal point of the protest is Section 37AA of the Sales Tax Act, which grants FBR the authority to freeze bank accounts, seize funds, and arrest taxpayers based on mere suspicion. "This is a draconian law that punishes decades of tax compliance," Bilwani stated. "It creates a hostile environment for businesses, making it untenable to operate in such conditions."

He also revealed that many businesses are seeking guidance on relocating their operations abroad to escape the oppressive tax climate. “We are still here, we want to contribute, but the government needs to restore our confidence,” Bilwani added.

This sentiment is echoed across Pakistan's industrial hubs, including Faisalabad, Lahore, and Sialkot, where exporters and business leaders are voicing similar concerns. “If these issues are not addressed, we will not hesitate to call for citywide or nationwide strikes,” Bilwani warned, calling for unity among the business community.

Bilwani also expressed frustration at the government's dismissive approach toward legitimate business representatives. “Instead of consulting with actual chambers and associations, the government listens only to its handpicked allies. The FBR's mishandling of the Business Anomalies Committee meeting, with technical issues and the absence of officials, shows a total lack of seriousness,” he said.

“In my entire career, I have never witnessed such arrogance and disregard for the business community. This is worse than during Martial Law regimes. We demand respect, consultation, and immediate rectification of these anomalies. The time to act is now,” he added.