Rift emerges between business associations in Pakistan on July 19 strike

A widening rift has emerged within Pakistan’s business community over the proposed nationwide strike on July 19 in response to controversial enforcement and fiscal measures introduced in the federal budget.

The division became apparent during a joint press conference following a high-level meeting with Finance Minister Senator Muhammad Aurangzeb and other senior officials, where the government announced the formation of a new committee to review traders’ concerns.

President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Akram Sheikh, told reporters that the government has constituted a committee headed by Special Assistant to the Prime Minister on Industries and Production, Haroon Akhtar Khan, to engage in detailed consultations with business leaders.

The committee, which also includes the Minister of State for Finance Bilal Azhar Kayani, the Prime Minister’s Coordinator on Trade Rana Ehsan Afzal Khan, the Federal Board of Revenue (FBR) chairman, and representatives of the business community, is expected to present a consensus-based and practical solution to the prime minister and cabinet within 30 days.

“At this point, except for the Lahore Chamber of Commerce and Industry, all other chambers and trade bodies are aligned with the FPCCI,” Sheikh said, indicating broad support for continued dialogue over immediate confrontation.

However, the Lahore Chamber of Commerce and Industry (LCCI) took a hardline stance. Its president, Mian Abuzar Shad, rejected the government’s assurances and demanded the immediate suspension of what he termed “draconian measures”.

These include the arrest provisions for businesspersons, taxation of cash transactions exceeding PKR 200,000, the deputation of tax officials at business premises, the implementation of e-billing and digital monitoring systems like e-invoicing, and frequent changes to tax codes.

“We categorically announce that the Lahore Chamber will observe a strike on July 19,” Shad said, calling the federal budget’s new provisions unacceptable and damaging to legitimate business operations.

According to a statement issued by the Ministry of Finance, the Islamabad meeting — chaired by Finance Minister Aurangzeb — was held to address growing unrest among traders, especially regarding Section 37A of the Finance Act 2025. The section includes provisions for stronger enforcement powers, including account freezing and arrests based on suspicion of tax fraud.

Aurangzeb emphasized that the government’s goal is to curb large-scale tax fraud and not to target honest taxpayers. “The government is fully committed to transparency and will ensure that no undue hardship is created for legitimate businesses during this interim period,” he assured.

The Finance Ministry said business representatives shared their concerns candidly and that their suggestions will be seriously considered. It was agreed that no coercive measures will be implemented during the committee’s 30-day review period and that all efforts will be made to resolve concerns through consultation.