• Condemn FBR’s arrest powers and digital invoicing rules
• Traders fear policies will drive businesses into informal sector
• Punjab’s proposed labour policy also under fire for harsh clauses

KARACHI/LAHORE: Pakis­tan’s major chambers of commerce on Thursday announced a nationwide strike on July 19 in protest against what they described as anti-business measures introduced in the Finance Act FY26 and proposed provincial labour policies.

The Karachi Chamber of Commerce and Industry (KCCI) said the strike was being organised in collaboration with leading chambers and trade bodies across the country. KCCI President Muhammad Jawed Bilwani stated the decision followed extensive consultations with chambers, associations, and business stakeholders who had expressed alarm over rising harassment and arbitrary enforcement.

“This is not just KCCI’s protest. It is a unified national stance of the business community,” Bilwani said.

He cited several contentious provisions introduced in the budget, including a Rs200,000 threshold on cash transactions, sweeping powers of arrest under Section 37A of the Sales Tax Act, and the mandatory implementation of digital invoicing and e-billing. “These are impractical, unjustified, and will push businesses further into the informal economy,” he warned.

Bilwani said the measures were imposed without adequate consultation and had triggered widespread fear among traders, SMEs, and manufacturers. A large majority of KCCI members had endorsed the call for strike, he said, adding that major market associations across the country had pledged full support.

He reiterated that the protest would be peaceful and lawful but would serve as a “strong signal” of the growing discontent over the government’s taxation approach. He urged the immediate withdrawal of the measures and called for meaningful engagement with the business community to design fair and workable reforms.

The Lahore Chamber of Commerce and Industry (LCCI) also announced its participation in the July 19 strike, specifically opposing Section 37A, additional taxes on bank transactions, and a proposed labour policy in Punjab deemed hostile to business interests.

Eroding confidence

LCCI President Mian Abuzar Shad, accompanied by Senior Vice-President Engineer Khalid Usman and other office-bearers, warned at a press conference that the new measures would cripple businesses, raise unemployment, and erode investor confidence. He condemned the enhanced powers granted to FBR officials and the lack of consultation with the private sector.

“This is not the issue of one chamber or one city. This concerns the livelihoods of over 250 million people,” Shad said. He criticised the Rs200,000 transaction tax threshold as irrational and revealed that 21 multinational companies had exited Pakistan due to an increasingly hostile business environment.

He also questioned the government’s fiscal priorities, highlighting the disbursement of over Rs1tr to Independent Power Producers (IPPs) without corresponding electricity generation, and termed it unjust to industrialists.

On Section 37A, Shad said it allows FBR officers powers to arrest traders — a measure he claimed was unprecedented globally. Senior Vice-President Usman said the business community’s red lines had been crossed and warned of economic instability if unjust regulations led to business closures.

Executive Committee member Khurram Lodhi called for audits of government officials, questioning their perks and unexplained assets. Aamna Randhawa added that these policies were particularly discouraging for women entrepreneurs and amounted to systematic harassment.

The LCCI also raised serious concerns about the proposed Punjab labour policy, which spans over 300 pages and includes clauses such as reducing the gratuity threshold from 50 to 20 employees and permitting arrests based on verbal claims. Shad warned that if passed in its current form, the policy could lead to mass industrial shutdowns.

He said that recent policy decisions, including the Finance Act 2026, appeared to be designed to erode investor confidence and stifle economic activity. He cited unresolved corruption scandals, including Rs80bn in solar panel over-invoicing, Rs565bn in tax refund scams, and daily corruption estimates of Rs4bn.

Both KCCI and LCCI warned that the strike could extend if the government failed to address the business community’s concerns.

Published in Dawn, July 11th, 2025