KARACHI, June 19, 2025 – In a scathing rebuke, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has rejected what it calls “draconian” powers granted to tax authorities under the Federal Budget 2025-26.
The apex trade body has accused the government of creating an atmosphere of fear, harassment, and uncertainty for the business community, warning of dire consequences if the controversial measures are not rolled back.
Atif Ikram Sheikh, President FPCCI, did not mince words. “We outright reject these excessive and unchecked powers granted to tax officials. Allowing them to raid business premises or withdraw funds from company accounts without prior notice is a gross violation of due process and business ethics,” he declared at a press conference. He further warned that such tactics will alienate the private sector and damage investor confidence.
The FPCCI president urged the government to immediately withdraw these harsh provisions before the Finance Bill 2025 is passed. “No tax target can be achieved without building trust with industrialists and exporters. This budget, unfortunately, offers neither relief nor partnership—it is based on coercion,” he added.
Echoing similar concerns, FPCCI Senior Vice President Saquib Fayyaz Magoon demanded restoration of the fixed tax regime (FTR) for exporters, saying its absence is already damaging Pakistan’s competitiveness. He criticized the budget for ignoring FPCCI’s repeated recommendations on incentivizing high-growth sectors like IT, mining, and fisheries.
Magoon emphasized that the Export Facilitation Scheme (EFS) must be expanded to local manufacturers or Pakistan risks facing supply chain disruptions and regional trade disadvantages. “Without a strong local production base, exports will suffer,” he stressed.
Vice Presidents of FPCCI, including Asif Sakhi, Aman Paracha, and Nasir Khan, collectively condemned the narrative that business owners are habitual tax evaders. They urged the FBR to become a facilitator, not an enforcer. Paracha even called for a high-level fact-finding commission to investigate FBR’s failure to meet its FY25 tax target.
Khan warned that many entrepreneurs are already fleeing to more business-friendly regions, while the rest are operating under unbearable financial pressure.
The FPCCI also demanded a reversal of the 10-year restriction on Special Economic Zones (SEZs), suggesting a 20 to 30-year horizon instead, to attract real long-term Foreign Direct Investment (FDI).
The FPCCI has made it clear: if the government wants economic revival, it must listen to its business community—before it’s too late.