On 18 June, a press conference was held by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), during which senior officials representing various trade and industry associations expressed strong discontent regarding the proposed tax measures in the Federal budget 2025-26.
FPCCI has rejected the budget, which goes against the interests of exports/imports and industry prosperity.
They harbour significant reservations about the authority granted to FBR officials, whose actions are detrimental to industry. They do not rule out the possibility of approaching the court and closing factories if the budget is approved in its entirety, despite their reservations about the power granted to the FBR.
Senior Vice President Saqib Fayyaz Magoon spearheaded the opposition, asserting that tax officers have been granted inappropriate powers akin to those of a Station House Officer (SHO), which include the ability to withdraw funds from business accounts and conduct raids on businesses without prior notice.
“We categorically reject these powers,” Magoon stated, highlighting concerns about the implications for business operations and the overall economic climate. He further criticised the government for imposing additional taxes instead of supporting domestic manufacturers through the Export Finance Scheme (EFS), calling for a reassessment of these policies.
A plea for more business-friendly initiatives was also made, with Mago urging Field Marshal Asim Munir to prioritise the needs of the business community, reflecting a broader sentiment that the government is not adequately addressing the challenges faced by entrepreneurs.
Echoing Mago’s sentiments, Asif Sakhi, Vice President of FPCCI, challenged the narrative that portrays businessmen as villains in the economic landscape, emphasising that they are essential to the economy’s functioning.
Additionally, Aman Paracha, another Vice President, questioned the reasoning behind the unmet tax targets from the previous year and suggested the formation of a committee to reassess the situation, stating, “Milk will become milk and water will become water,” underscoring the need for transparency and accountability.
Nasir Khan, also a Vice President, noted the increasing frustration among businesspeople, mentioning that many have already left the country or been compelled to close factories due to the prevailing economic challenges.
The FPCCI’s press conference indicates a growing rift between the business community and the government, raising alarms over the potential consequences for the nation’s economy if these issues remain unaddressed.
Earlier, Mr. Atif Ikram Sheikh, President FPCCI, and Mr. Saquib Fayyaz Magoon, Senior Vice President FPCCI, have convened a Consultative Meeting on Post-Budget Anomalies concerning the Federal Budget 2025-2026 of Sindh-Based Trade Organisations, aimed at fostering a meaningful and constructive exchange of views on the Federal Budget, evaluating its impact on various sectors, and identifying areas of concern, opportunity, and policy gaps from the perspective of the business community.
The Consultative meeting of Sindh-based trade organisations was followed by a Press Conference at the FPCCI Head Office, Karachi, where the key outcomes and recommendations were shared with the press and electronic media.
