Pakistan traders warn of further action after shutter-down strike in parts of country

The president of the Karachi Chamber of Commerce & Industry (KCCI) on Saturday thanked Pakistan’s business community for uniting behind a nationwide shutdown protest against what he called “harsh, impractical, and anti-business” tax measures.

The strike, organized by KCCI, other major chambers, and national trade bodies, brought commercial activity to a halt across the country. KCCI President Muhammad Jawed Bilwani said the complete closure of markets, industries, and businesses sent a clear message of resistance.

“This strike was our last resort,” Bilwani said in a statement. “It was not to confront the government, but to demand attention after repeated appeals and representations were ignored.”

The protest targeted tax measures introduced in the Finance Act 2025–26. Key demands include the suspension of Sections 37A and 37B of the Income Tax Ordinance, which allow arrests of taxpayers without due process. The business community is also calling for the withdrawal of Section 21(s), which penalizes cash transactions, and the restoration of the Final Tax Regime for exporters.

Bilwani said these concerns were shared with a special government committee led by Haroon Akhtar Khan, Special Assistant to the Prime Minister on Finance, but no formal commitments were made.

He thanked Karachi’s seven industrial area associations and several major trade groups — including PHMA, Pakistan Knitwear Association, Karachi Electronic Dealers, Sabzi Mandi Association, and Petroleum Dealers Association — for their support. He also acknowledged solidarity from chambers across Pakistan.

Bilwani warned that the July 19 shutdown was “just the beginning.”

“We will monitor the government’s response closely in the coming week,” he said. “If there is no written assurance or meaningful progress, we will consult all stakeholders to decide the next course of action.”

He added, “We seek dialogue, not confrontation. But if our concerns continue to be ignored, we are ready to escalate our actions. The business community must be heard and respected for the sake of Pakistan’s economy.”