Karachi, 29 June

Top trade bodies of Pakistan on Sunday opposed the government's decision to grant sweeping powers to the Federal Board of Revenue (FBR) in the proposed Finance Bill 2025-26 and warned of severe consequences for the economy if the bill was not reviewed.

The Karachi and Lahore Chamber of Commerce and Industry bodies said if the government continued with its authoritarian attitude and ignored the business anomalies committee, which includes presidents of chambers and trade bodies from across Pakistan, the country would face a trade crisis.

"The government should include feedback from the business anomalies committee before presenting the proposed Finance Bill in the parliament," said Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani.

“The measures announced in the federal budget are neither public-friendly or business-friendly, and no tangible relief for the business community," Bilwani said.

He said the business community was appalled by the sweeping and draconian powers given to the FBR.

He asked how any business could operate smoothly if the FBR was given sweeping powers to freeze bank accounts, seize funds, and arrest taxpayers merely on suspicion — even long-time compliant ones.

“How can anyone run a business in such a hostile climate?” Bilwani asked.

Mian Abu Zar Shad, who heads the Lahore Chamber of Commerce and Industry, said the business community was already facing problems due to soaring energy costs, poor electricity supply, gas shortages, water unavailability, and delayed tax refunds.

“All these things have badly affected our liquidity position,” he said.

According to Shad, traders have many foreign buyers and trade partners who are urging Pakistani exporters to shift operations to more stable and business-friendly countries if the same situation persists.

The business community riled up by the budget have hoisted placards and banners in Karachi and Lahore condemning the proposed Finance Bill 2025-26.

The businessmen are also unhappy with the Sindh government for a planned minimum wage hike and warned of serious consequences for the industrial and export sectors.

The Sindh government has proposed raising the minimum monthly wage to Rs 42,000 from the existing Rs 37,000 — higher than the Rs 37,000-40,000 range currently applicable in Punjab and Khyber Pakhtunkhwa provinces.

Bilwani said numerous businessmen had approached KCCI to form a committee guiding them on how to relocate their businesses abroad to safer jurisdictions.

He said similar concerns were being echoed in Faisalabad, Lahore, and Sialkot — major industrial and export hubs.