Businesses in Karachi, Pakistan’s commercial hub, are holding a strike today, Saturday, to protest the new tax policies introduced in the Finance Act. Many trade associations say these rules are “anti-business” and could seriously harm the economy.
The Karachi Chamber of Commerce and Industry (KCCI) is leading the protest. It announced that major markets and trade groups across the city are supporting the shutdown, including sectors like restaurants, auto parts, iron, steel, and packaging industries.
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“All of Karachi will be closed,” said KCCI President Muhammad Jawed Bilwani during a Friday press conference. He said this is only a one-day strike for now, but warned that if the government doesn’t respond in writing, the protest will grow — possibly happening once a week, twice a week, or for full weeks.
Bilwani also said the chamber had already shared its concerns with Prime Minister Shehbaz Sharif. They demand the government to cancel rules that:
- Allow the Federal Board of Revenue (FBR) to arrest traders
- Impose penalties on cash transactions over Rs200,000
- Enforce digital invoicing for goods transport
“We drive the economy. If these issues continue, we’ll shut our businesses here and move to Dubai,” Bilwani warned.
Earlier this week, the KCCI had already announced support from over 50 trade associations nationwide. They say the support level is unprecedented in Pakistan’s history.
Meanwhile, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Pakistan’s top business group, announced on Friday that it postponed its participation in the strike. This came after what it called “successful talks with the government.”
“FPCCI President Atif Ikram Sheikh has announced the July 19 strike has been deferred due to a positive dialogue with government officials,” said a statement from the group.
This shows a clear divide within the business community. While some groups want to continue talks with the government, others are determined to push forward with their protests.
Traders and transporters argue that the new tax laws will place extra pressure on already struggling businesses and increase harassment by tax officers. In cities like Karachi, where law and order issues, high inflation, and low consumer spending already exist, these changes could be damaging.
The KCCI insists that only written guarantees from the government will stop the wider protest. Until then, the strike campaign will continue, said Bilwani.
