Multan, July 9, 2025 — A thunderous wave of resistance is sweeping across Pakistan as the business community unites in fierce opposition to the sweeping arrest and investigation powers granted to the Federal Board of Revenue (FBR) through the controversial Finance Act, 2025.
In an unprecedented show of solidarity, leading figures from trade bodies, chambers of commerce, and industrial associations came together on Tuesday in a powerful joint press conference hosted at the Multan Chamber of Commerce and Industry (MCCI). Business leaders from Lahore, Karachi, Faisalabad, Gujrat, Bahawalpur, and Rawalpindi joined via video link, amplifying the collective voice of Pakistan’s business community.
At the heart of the fury are Sections 37-A and 37-B of the Sales Tax Act, 1990—newly introduced provisions that give FBR officials unchecked powers to arrest and investigate taxpayers without prior judicial approval. President of the MCCI, Mian Bakhtawar Tanveer Sheikh, condemned the move as a direct assault on constitutional freedoms. “These draconian laws will only breed fear, corruption, and extortion,” he declared. “This is not tax reform—it is economic sabotage against the business community.”
The chambers warned that such heavy-handed measures would decimate investment confidence and destroy the backbone of the economy: small and medium enterprises. “The environment is turning toxic for honest businesses,” said former FPCCI President Mian Tanveer Sheikh. “Granting FBR such powers is a clear violation of human rights and judicial precedent. Section 37-A has been struck down twice already. Its revival is contempt of court.”
Voices echoed in unison from all corners. Javed Balwani, President of Karachi Chamber, warned that FBR officers now wield more unchecked power than police inspectors. “The business community is not a criminal enterprise,” he said, “but if this law persists, there will be nationwide strikes, black flags, and complete shutdowns.”
Concerns also poured in over Section 21(S), which disallows 50% of expenses made in cash transactions above Rs. 200,000. Sheikh highlighted that this rule is impractical for Pakistan’s cash-driven agricultural economy. “Raise the limit to Rs. 1 million,” he urged, “and exempt rural businesses entirely.”
On digital invoicing, traders called the system chaotic and unworkable due to the absence of proper infrastructure, training, and data protection. They demanded a 12-month deferment and exemptions for small traders.
With voices from across the nation rising in defiance, the business community has sent a loud and clear message: consultation, not coercion, is the path forward. The government now faces mounting pressure to withdraw the new tax measures or brace for an unprecedented backlash from Pakistan’s united business community.