KARACHI: The Sindh government has decided to reduce the infrastructure development cess (IDC) to 0.80-0.85 per cent from 1.85pc, conceding a long-standing demand of the business community, which had been seeking relief for nearly two decades.

Addressing a press conference on Monday alongside other office-bearers, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh termed the move a historic breakthrough, saying it would significantly reduce the cost of doing business.

He said the infrastructure cess on the Export Facilitation Scheme (EFS) had been completely abolished, fulfilling a key demand of exporters. The FPCCI’s prolonged efforts had finally yielded results, providing the trading community with much-needed fiscal space, he added.

FPCCI Senior Vice-President Saquib Fayyaz Magoon said around Rs350 billion linked to the Sindh IDC remained tied up in litigation. Under the new arrangement, traders who withdraw their cases would be offered a structured payment plan.

Under the settlement, 15pc of the outstanding amount will be payable by July 31, another 15pc by Oct 31, and a further 15pc by July 31, 2027.

He said the one-percentage-point reduction in the cess would significantly ease liquidity pressures on importers.

FPCCI Vice-President and Regional Chairman Sindh Abdul Mohamin Khan said that after the initial 45pc payment, the remaining 55pc of the outstanding cess would be payable over a 12-year period from 2028 to 2040. The measure would not only lower costs but also expedite port clearance, he observed.

Asif Sakhi, also Vice-President at FPCCI, said the new cess rate would be 0.85pc for traders with pending court cases who opt for the settlement, while those without litigation would be charged 0.80pc.

Published in Dawn, February 17th, 2026