Trade-industry unity makes strike successful
The strike, led by the Karachi Chamber of Commerce and Industry (KCCI), drew massive support from major industrial town associations, transporters, and a broad spectrum of trade bodies. It signalled growing frustration with what the business community described as 'harsh, impractical, and anti-business' fiscal measures.
In Karachi, the country's economic hub, industrial zones, wholesale markets, commercial districts, and even goods transport services came to a grinding halt. Seven key industrial zones—SITE, Korangi, Landhi, North Karachi, Bin Qasim, SITE Super Highway, and Federal B Area—fully observed the strike.
The megacity's commercial lifelines, particularly in District South, remained deserted. Historic markets in the Old City Area such as Kapra Market, Motandas, Kagzi Bazar, Boulton Market, and Jodia Bazar were fully shut. Auto parts hubs, including Garden Market, Plaza Auto Market (MA Jinnah Road), Aurangzeb Market, and Iqbal Centre followed suit. Gold and jewellery traders at Liaquatabad's Sarafa Market also downed shutters, as did timber merchants and paper dealers.
In an unusual disruption, Karachi's Sabzi Mandi witnessed near-total inactivity. 'Trucks carrying fruits and vegetables did not arrive today,' said Atta Ur Rehman, a fruits and vegetables retailer. 'This strike has brought the Mandi to a halt—a historic move in recent years.'
Goods transporters too halted operations across the city. Malik Shabbar Khan, Patron-in-Chief of the United Goods Transport Alliance, said both his group and the Pakistan Goods Transport Alliance suspended bookings nationwide. 'Our trucks have been parked for five days. If the government fails to act, we may consider regular weekly strikes,' he warned.
Speaking on the day of the strike, KCCI President Muhammad Jawed Bilwani said the unprecedented shutdown sent a clear message to the government about the depth of discontent in the business community. 'This was not an act of rebellion, but a necessary step after repeated government failures to address our legitimate concerns,' Bilwani stated. He expressed gratitude to all associations and traders who supported the call and praised the unity of Karachi's seven industrial zones.
While the strike received sweeping support in Karachi and other cities, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) decided to postpone its protest following last-minute talks with the government. This led to a partial division among national trade bodies.
Despite this, Mehmood Hamid, President of the All Pakistan Organization of Small Traders and Cottage Industry (Karachi Chapter), claimed the strike was an unqualified success. 'The strike spoke louder than words,' he said. 'Markets and industries across Karachi remained shut.'
Hamid accused the FPCCI of attempting to divide the movement and neutralize the traders' protest. 'Even so, the momentum remained unbroken. The southern district of Karachi, including all major wholesale and commercial zones, observed a complete closure.'
He confirmed that overnight talks between traders and the government failed, triggering the mass-scale shutdown. 'The industry cannot absorb tax measures of this magnitude anymore,' Mehmood Hamid said. 'The government has expanded the FBR's powers to a level where economic activity is now under threat.'
He emphasized the need to repeal not only Sections 37A and 37B. 'If the government provides even a 40 percent relaxation and makes sincere efforts to reform the Finance Bill, we will respond constructively,' he added.
Support for the strike extended to Hyderabad, where markets in Saddar Bazaar, Resham Bazaar, Anaj Mandi, and Market Tower remained closed.
Copyright Business Recorder, 2025
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Listen to article Pakistan's business and industrial community observed a nationwide strike on Saturday, protesting Sections 37A, 37B, and 37AA of the Income Tax Ordinance, which grant the Federal Board of Revenue (FBR) powers to arrest defaulting taxpayers. The shutter-down strike, led by major trade bodies and industrial associations, saw thousands of markets, factories, and commercial units closed across the country in what business leaders called a unified stand against "draconian and anti-business" laws. The protest was led by major trade bodies, including the Karachi Chamber of Commerce and Industry (KCCI), the Pakistan Hosiery Manufacturers and Exporters Association (PHMA), and various industrial town associations. It was held in strong opposition to the controversial new tax laws introduced through the Finance Act 2025-26. "The complete shutdown of markets, industries, and commercial activities reflected a powerful message of economic unity and collective resistance by Pakistan's business community," KCCI President Muhammad Jawed Bilwani said in a statement issued on Saturday. Bilwani emphasised that the strike was not an act of defiance, but a last resort adopted in response to the government's failure to address widespread concerns raised by the business community. Despite several representations and appeals, key anti-business provisions were included in the Finance Act 2025-26 that have created an atmosphere of fear, uncertainty, and hostility among taxpayers. The business community's key demands, which remain unresolved, include the immediate suspension of Sections 37A and 37B of the Income Tax Ordinance, which grant unchecked powers to arrest and prosecute taxpayers without due process; the withdrawal of Section 21(s), which imposes penalties on transactions made through cash, mode of payment still widely used in Pakistan's business landscape, and the restoration of the Final Tax Regime for exporters. He said these demands were conveyed in detail to the special committee formed by the federal finance minister and headed by the Special Assistant to the Prime Minister (SAPM) on Finance, Haroon Akhtar Khan. The business community expected meaningful outcomes based on the recommendations and rationale submitted to this committee. However, only verbal assurances were given, which further intensified frustration and compelled businesses to demonstrate their discontent through a peaceful and united shutdown. "The business community observed a peaceful strike to show their protest against absurd laws and express solidarity; however, the closure of business and economic activities is not in the national interest," said Sheikh Mohammed Tehseen, President of the Federal B Area Association of Trade and Industry (FBATI). He added that the government should repeal these oppressive laws and offer confidence and protection to businessmen and investors. President of SITE Super Highway, Masood Pervaiz, said that the business community is open to consultations with the government to enhance tax revenue and curb tax evasion without any harassment or stringent attitudes. He suggested that the government work actively with the business community towards digitisation in the economic and governance systems to achieve multiple national objectives. He also urged the government to promote ease of doing business and reduce production costs for businesses and trade in the country. President of the Lahore Chamber of Commerce and Industry (LCCI), Mian Abuzar Shad, said that July 19, 2025, will go down in history as a defining day of awareness, unity, and struggle by Pakistan's business community. "Lahore has proven today that it is not just a city – it is a sentiment, a force," he said, demanding urgent revisions and clarifications on Section 37AA, implementation of the e-invoicing and e-Bilty systems, the 16% sales tax on property rent, and the 20% tax on transactions above Rs200,000. The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) also joined hands with chambers and trade bodies across the country in a complete industrial shutdown to protest the controversial arrest powers granted to the FBR. Zonal Chairman of PHMA, Abdul Hameed, along with former chairmen Shafiq Butt and Naseer Butt, announced the closure of hosiery units as part of the countrywide strike, warning that such legislation would only deepen the crisis facing Pakistan's export-oriented sectors. The PHMA leadership said the business community could no longer remain silent while draconian laws continued to erode the confidence of investors and exporters. They said PHMA's participation in the strike was not symbolic but a complete operational shutdown in protest against what they termed economic strangulation by the government's policies. Abdul Hameed expressed grave concern over Section 37AA, which gives FBR officers the authority to arrest businesspersons without due process or prior investigation, merely on suspicion of tax evasion. He said this law is a clear violation of constitutional rights and a serious blow to the already fragile industrial environment of Pakistan.
Business Recorder
12 hours ago
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Trade-industry unity makes strike successful
KARACHI: A rare and powerful show of unity between industrialists and traders brought Karachi and other parts of the country resulted in a standstill on Saturday, as businesses observed a shutter-down strike against the government's controversial tax policies introduced under the Finance Act 2025–26. The strike, led by the Karachi Chamber of Commerce and Industry (KCCI), drew massive support from major industrial town associations, transporters, and a broad spectrum of trade bodies. It signalled growing frustration with what the business community described as 'harsh, impractical, and anti-business' fiscal measures. In Karachi, the country's economic hub, industrial zones, wholesale markets, commercial districts, and even goods transport services came to a grinding halt. Seven key industrial zones—SITE, Korangi, Landhi, North Karachi, Bin Qasim, SITE Super Highway, and Federal B Area—fully observed the strike. The megacity's commercial lifelines, particularly in District South, remained deserted. Historic markets in the Old City Area such as Kapra Market, Motandas, Kagzi Bazar, Boulton Market, and Jodia Bazar were fully shut. Auto parts hubs, including Garden Market, Plaza Auto Market (MA Jinnah Road), Aurangzeb Market, and Iqbal Centre followed suit. Gold and jewellery traders at Liaquatabad's Sarafa Market also downed shutters, as did timber merchants and paper dealers. In an unusual disruption, Karachi's Sabzi Mandi witnessed near-total inactivity. 'Trucks carrying fruits and vegetables did not arrive today,' said Atta Ur Rehman, a fruits and vegetables retailer. 'This strike has brought the Mandi to a halt—a historic move in recent years.' Goods transporters too halted operations across the city. Malik Shabbar Khan, Patron-in-Chief of the United Goods Transport Alliance, said both his group and the Pakistan Goods Transport Alliance suspended bookings nationwide. 'Our trucks have been parked for five days. If the government fails to act, we may consider regular weekly strikes,' he warned. Speaking on the day of the strike, KCCI President Muhammad Jawed Bilwani said the unprecedented shutdown sent a clear message to the government about the depth of discontent in the business community. 'This was not an act of rebellion, but a necessary step after repeated government failures to address our legitimate concerns,' Bilwani stated. He expressed gratitude to all associations and traders who supported the call and praised the unity of Karachi's seven industrial zones. While the strike received sweeping support in Karachi and other cities, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) decided to postpone its protest following last-minute talks with the government. This led to a partial division among national trade bodies. Despite this, Mehmood Hamid, President of the All Pakistan Organization of Small Traders and Cottage Industry (Karachi Chapter), claimed the strike was an unqualified success. 'The strike spoke louder than words,' he said. 'Markets and industries across Karachi remained shut.' Hamid accused the FPCCI of attempting to divide the movement and neutralize the traders' protest. 'Even so, the momentum remained unbroken. The southern district of Karachi, including all major wholesale and commercial zones, observed a complete closure.' He confirmed that overnight talks between traders and the government failed, triggering the mass-scale shutdown. 'The industry cannot absorb tax measures of this magnitude anymore,' Mehmood Hamid said. 'The government has expanded the FBR's powers to a level where economic activity is now under threat.' He emphasized the need to repeal not only Sections 37A and 37B. 'If the government provides even a 40 percent relaxation and makes sincere efforts to reform the Finance Bill, we will respond constructively,' he added. Support for the strike extended to Hyderabad, where markets in Saddar Bazaar, Resham Bazaar, Anaj Mandi, and Market Tower remained closed. Copyright Business Recorder, 2025
Business Recorder
12 hours ago
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Business activities remain normal in twin cities
ISLAMABAD: The business activities remained normal in the twin cities of Islamabad and Rawalpindi, as businessmen did not observe a shutter down strike against the extraordinary powers of the Federal Board of Revenue (FBR) to make arrests under Finance Act 2025. The tax-related issues concern the implementation of the Finance Act 2025, including arrest powers under 37A of the Sales Tax Act, payment of Rs200,000 through cash, e-bility, and other enforcement provisions introduced under the Finance Act 2025. Shops and businesses remained open in all the key and local areas including main Murree Road, Saddar, Satellite Town and old city. Meanwhile, President Islamabad Chamber of Commerce and Industry (ICCI) Nasir Qureshi was of the view that the business community of the federal capital did not support the strike call. 'We have had discussion with Haroon Akhtar, SAPM on industries and he has assured to take up the matter with the PM - therefore, it's our responsibility to wait for a few days to see the outcome of his assurances,' he added. The 12-member committee has been constituted under the Chairmanship of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production. The committee also included Minister of State for Finance Bilal Azhar Kayani, PM's Coordinator on Trade Rana Ehsan Afzal Khan, FBR Chairman Rashid Mehmood Langrial, and representatives nominated by the business community and chambers of commerce. The committee will hold detailed deliberations over the next 30 days and present a consensus-based and workable solution to the prime minister and the federal cabinet. The business community openly shared their concerns and suggestions during the meeting, and the government expressed its commitment to take all stakeholders into confidence. It was agreed that every effort would be made to address traders' concerns related to transactions and to avoid causing any difficulties for the business community. Meanwhile, President All Pakistan Anjuman-e-Tajiran Ajmal Baloch said that the traders will hold protest demonstrations across the country on July 26 against new amendments in the finance bill. 'We are waiting for the reply from PM Office, and in the meantime our token protest will be held as per schedule, in the second phase we will go for token shutter down strikes,' Baloch said. He slammed the bureaucracy and said that they work with deception, and if the government failed to take back the new powers given to FBR officers, we will increase pressure. Copyright Business Recorder, 2025
