Lahore, December 30, 2025 — The Lahore Chamber of Commerce and Industry (LCCI) has raised serious concerns over the Federal Board of Revenue’s (FBR) decision to allow tax-free imports of more than 2,400 Chinese products through the Sost Customs Dry Port for exclusive consumption in Gilgit-Baltistan.
LCCI President Faheemur Rehman Saigol has called for a comprehensive, consultative, and nationally harmonized framework for granting import tax exemptions to avoid market distortions.
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Commenting on the notification issued under S.R.O. 2488 (I)/2025, Saigol acknowledged the government’s intention to facilitate economic activity and ensure the smooth supply of essential goods to Gilgit-Baltistan. He emphasized that the LCCI fully supports regional development, economic inclusion, and improved livelihoods in underdeveloped areas. However, he cautioned that fiscal incentives must be carefully designed to protect fair competition and ensure a level playing field for businesses nationwide.
The LCCI President pointed out that Pakistan’s industrial and commercial sectors are already facing severe challenges due to high energy tariffs, rising financing costs, increased taxation, and shrinking profit margins. In such circumstances, selective tax exemptions—especially covering a large number of tariff lines—could negatively impact domestic markets if implemented without strong safeguards and prior stakeholder consultation.
Saigol stressed that chambers of commerce, which represent the country’s productive sectors, should be actively consulted before finalizing such policy measures. While the notification includes controls such as quota limits, first-come-first-served authorization, domicile requirements, and monitoring through the Customs Computerized Clearance System, he warned that effective on-ground enforcement is essential to prevent leakage of tax-free goods into other markets.
He further urged the government to align exemption policies with a broader national trade and industrial strategy, emphasizing support for domestic manufacturers, particularly SMEs, to safeguard local production, employment, and long-term economic stability.