KARACHI: A wave of discontent rippled through Pakistan’s business community as tensions escalated over controversial tax laws introduced by the Federal Board of Revenue (FBR). Amid mounting pressure, traders in Karachi and Lahore announced a full Pakistan shutter-down strike, while the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) chose to remain on the sidelines.
The sharp divide comes in response to the recently passed Finance Act, which grants the FBR sweeping new powers. Business leaders argue that these measures not only stifle commerce but also set a dangerous precedent for the private sector.
KCCI, LCCI Lead Strike Movement
In a press conference on Friday, Javed Balwani, President of the Karachi Chamber of Commerce and Industry (KCCI), officially declared that Karachi’s traders would observe a complete shutter-down strike on Saturday.
He confirmed that all major business centers—including Saddar, Tariq Road, Clifton, and Jodia Bazaar—will remain closed in protest.
“We have waited for a written assurance from the government. But there has been no solid commitment. If the next round of talks remains fruitless, we’ll have no option but to expand the protest,” Balwani warned.
The KCCI chief did not rule out further action, hinting that the strike could extend for multiple days next week, or even lead to a week-long shutdown if demands remain unmet. However, he clarified that the protests would remain peaceful and organized.
The Lahore Chamber of Commerce and Industry (LCCI) and the All Pakistan Restaurants Association (APRA) have also backed the strike call, signaling growing solidarity in Punjab’s business circles.
FPCCI Withholds Support Amid Strategic Differences
Despite widespread support among traders, the FPCCI opted not to join the strike. Sources inside the federation suggested that the body prefers dialogue over confrontation, fearing that a national strike could further deteriorate the country’s fragile economic situation.
This has drawn criticism from several regional business associations, who argue that a united front is essential to pressure the government into retracting what they call “draconian measures.”
Tax Laws at the Center of the Controversy
At the heart of the Pakistan shutter-down strike are several controversial sections of the Finance Act 2025:
- Section 37A & 37B: These clauses empower the FBR to arrest individuals without warrants, a move traders say undermines legal protections and fosters an environment of fear.
- Section 21(S): Introduces harsh penalties on cash transactions exceeding Rs200,000, which many businesses, particularly in retail, say is impractical given Pakistan’s largely cash-based economy.
- SRO 709: Mandates digital invoicing, a regulation that small-scale traders argue is costly and difficult to implement without digital infrastructure or training.
- Section 40: Introduces the requirement for E-Bilty, a digital freight tracking system, which traders claim will increase operational costs and expose them to further bureaucratic hurdles.
Business Community Demands Immediate Rollback
The protesting chambers have demanded a complete rollback of these policies, along with a formal commitment from the government to consult stakeholders before introducing any further economic reforms.
“We are not against taxation. But these measures are arbitrary, oppressive, and anti-business,” said one trader in Lahore’s Hall Road market.
In Peshawar and Faisalabad, local trader unions have also expressed concerns, though they are yet to announce participation in the strike. A joint statement from several market associations warned that if the government fails to respond positively, a nationwide unified strike could be the next step.
At the heart of the Pakistan shutter-down strike are several controversial sections of the Finance Act 2025, as previously reported in our coverage on FBR’s new tax rules sparking outrage among small businesses.
Uncertain Weekend Ahead
With Karachi and Lahore—the country’s biggest commercial hubs—heading into a shutdown, the economic impact is expected to be significant. Retail, wholesale, restaurant, and logistics sectors will face losses running into billions if the strike prolongs.
Economists fear that if the deadlock persists, it could shake investor confidence and trigger more capital flight in an already sluggish economy.
As Saturday approaches, all eyes are on Islamabad to see whether the government will engage the business community with serious negotiations or continue down its current legislative path.
