Karachi, April 24, 2024 – In a significant move aimed at alleviating the concerns of the business sector, Prime Minister Shehbaz Sharif has directed the Federal Board of Revenue (FBR) to defer the implementation of the controversial Statutory Regulatory Order (SRO) 350.
The directive came during a meeting with members of the Karachi Chamber of Commerce and Industry (KCCI) held at the Chief Minister’s House on Wednesday.
The KCCI press release outlined that Prime Minister Sharif not only postponed the SRO 350 but also addressed other pressing issues including the release of pending payments related to Customs Rebate, Sales Tax, Income Tax Refunds, and Duty Drawback of Local Taxes & Levies (DLTL). The business community in Karachi has expressed significant relief following these announcements.
In addition to deferring the SRO, the Prime Minister took a hands-on approach, instructing federal ministers and secretaries to collaborate closely with KCCI to develop viable solutions to the problems plaguing the business sector. He affirmed his commitment to personally reviewing the outcomes of these discussions and announcing additional relief measures on May 1st.
The meeting, led by KCCI Chairman Businessmen Group Zubair Motiwala and President Iftikhar Ahmed Sheikh, served as a platform for the business community to voice their concerns directly to the Prime Minister. High energy tariffs, severe water shortages in Karachi, and high interest rates under the current IMF program were among the key issues discussed.
Responding to concerns over high utility costs, Prime Minister Sharif acknowledged the negative impact of current gas and electricity tariffs on industrial growth and competitiveness. He committed to reviewing KCCI’s suggestions for aligning energy tariffs with those of competing regional countries. He also underscored the need for an effective strategy to address these concerns, potentially boosting Pakistan’s export capabilities.
The KCCI leadership also highlighted ongoing challenges such as the recent significant increases in gas tariffs, which have reportedly tripled in six months, and the burdensome capacity charges in the electricity sector that contribute to the country’s circular debt issue. The business leaders emphasized the necessity of resolving these issues to prevent potential losses in the international market due to non-competitive operational costs.
Further, President Sheikh raised issues regarding the conduct of Customs Intelligence/enforcement, suggesting procedural changes to reduce harassment and operational disruptions during raids.
Prime Minister Sharif concluded the meeting by promising to meet with the business community of Karachi regularly, at least every three months, to ensure ongoing dialogue and effective resolution of issues. This gesture has been welcomed by the business leaders, who see it as a step toward more robust and responsive economic governance.
