PESHAWAR: Industrialists from the merged tribal districts have urged the federal government to provide tax exemptions and financial relief to industries operating in the former Fata region in the upcoming federal budget, warning that businesses were on the verge of collapse due to terrorism, border closures and increasing taxation.

Speaking at a press conference at Peshawar Press Club on Wednesday, Fata industries leader Khalid Khan Afridi said the 10 per cent sales tax imposed on industries in the merged districts should immediately be reduced to four per cent.

He was accompanied by Mohmand Chamber of Commerce leader Haji Amjad Khan, Bajaur Chamber of Commerce representative Haji Lali Shah, Malakand Chamber of Commerce leader Inamullah Khan, Engineer Arsalan Khan and Shahzad Arif.

Mr Afridi said more than 15,000 workers had lost their jobs due to the prolonged closure of the Pakistan-Afghanistan border, adding that industrial activity in the tribal districts had remained suspended for the past eight months.

Say terrorism, border closures, increasing taxation harmful to businesses

“Running industries in tribal districts amid terrorism and deteriorating law and order is the biggest challenge,” he said, adding that instead of facilitating businesses, the government was imposing new taxes on industries in Fata and Pata regions.

He recalled that several promises had been made to industrialists at the time of the merger of the tribal districts, but those commitments had yet to be fulfilled.

The industrialists demanded exemption from income tax and called upon the federal government to avoid imposing any new taxes on industries in the upcoming budget.

Mr Afridi appealed to Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and Chief of Army Staff Field Marshal Syed Asim Munir to hold consultations with industrial representatives and listen to their proposals for reviving the sector.

He also urged Khyber Pakhtunkhwa Chief Minister Mohammad Sohail Afridi to allocate time for tribal district industrialists and address their concerns.

The business leader alleged that despite paying taxes at the Azakhel Dry Port, industrialists were being harassed by officials of the FBR, Customs and KPRA, claiming that goods were not cleared unless unofficial payments were made.

He said traders and industrialists in the merged districts were facing severe financial hardships due to the combined impact of militancy, border closures and economic uncertainty.

“We are Pakistanis and belong to this land. We are always ready to sacrifice for the country, but Fata industries should not be pushed against the wall,” Mr Afridi said.

Published in Dawn, May 21st, 2026