KARACHI, May 5, 2025 – The Korangi Association of Trade and Industry (KATI) has vehemently rejected the recently enacted Tax Laws (Amendment) Ordinance 2025, branding it as unconstitutional, anti-business, and a grave threat to economic stability.
The association warned that the sweeping powers granted under the Ordinance could severely damage the trust between the government and the business community.
In a strongly worded statement, KATI President Junaid Naqi condemned the Ordinance, stating that it allows the Federal Board of Revenue (FBR) to take punitive actions—such as freezing bank accounts, seizing business properties, and sealing industrial units—immediately after court rulings, and without any prior warning. He termed these measures as “economic terrorism” that violate the principles of justice and due process.
“This Ordinance contradicts constitutional rights, undermines judicial authority, and disrupts the basic freedom to conduct business in Pakistan,” Naqi said. “Instead of promoting economic growth, the government is cultivating an atmosphere of fear, where no entrepreneur or investor can feel secure.”
Naqi further criticized the provisions that permit FBR officials to be stationed directly inside factories and commercial premises. He likened the move to “industrial surveillance,” warning that such monitoring would lead to excessive interference, disrupt operations, and erode business privacy.
Highlighting the potential consequences, the KATI chief said the Ordinance threatens to derail Pakistan’s already fragile economy. He emphasized that both local and foreign investors are likely to pull back, seeing this development as a red flag against ease of doing business in the country. “Legislation like this does not strengthen institutions—it isolates them by eroding confidence and credibility,” he added.
KATI called on the government to immediately withdraw the Ordinance, initiate meaningful dialogue with all relevant stakeholders, and adopt a more consultative approach to tax reforms. The association reiterated that true economic revival can only come through trust-building, consistent policies, and a transparent tax regime that supports rather than suppresses entrepreneurship.