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Business Recorder
4 days ago
- Business
- Business Recorder
All major markets in Lahore stay shut
LAHORE: All major commercial areas, including Shah Alam Market, Akbari Mandi, Hall Road, Mall Road, Anarkali, and others, were shut down, with support from all factions of the city's traders' unions. The Lahore Chamber of Commerce also endorsed the protest. The strike, called in protest against expanded powers granted to the Federal Board of Revenue (FBR), divided traders into opposing camps. Traders' leader Haji Maqsood Butt declared the strike a success and warned that if the FBR continued to 'harass' traders or exert 'unjustified authority,' further action would be taken. 'We are united, and we reject forced compliance,' he said. Lahore Chamber of Commerce and Industry President Mian Abuzar Shad has appreciated the business community for showing a great response and the overwhelming success of the nationwide shutter-down strike on July 19. The press conference was attended and addressed by Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former Presidents Mian Anjum Nisar, Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol. Speaking on the occasion, LCCI President Mian Abuzar Shad said that the 19th of July 2025 will go down in history as a defining day of awareness, unity and struggle by Pakistan's business community. He extended heartfelt gratitude to the traders, shopkeepers, industrialists and all market associations of Lahore who responded to the LCCI's call and ensured a complete, peaceful and disciplined strike. Lahore has proven today that it is not just a city – it is a sentiment, a force. The LCCI President also appreciated the strong response from other cities including Karachi, Hyderabad, Sukkur and others who joined hands for a common cause. He added that Lahore and Karachi collectively contribute over 60% of Pakistan's economic activity. Today, that 60% was silenced, not by force, but by choice to register protest against oppressive and non-consulted tax measures. He informed the media that nearly eight hours of negotiations were held via Zoom on July 18 , involving top government officials including Haroon Akhtar Khan, Chairman FBR Rashid Langrial, Bilal Azhar Kayani and others while from the LCCI, the meeting was attended by the LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, Former Presidents Mian Anjum Nisar and Muhammad Ali Mian, Former SVP Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol. During the discussion, the LCCI demanded urgent revisions and clarifications on Section 37AA, Implementation of E-Invoicing and e-bilty system, 16% sales tax on rent of properties and 20% tax on transactions above PKR 200,000. 'We asked for a public statement or at least official meeting minutes to share with our stakeholders. Neither was provided. This left us with no choice but to proceed with a strike,' said Mian Abuzar Shad. LCCI Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that we are patriots. We are willing to pay taxes. But we demand justice and inclusion in policymaking. Our protest is not for personal gain but to safeguard millions of livelihoods across the country.' The LCCI leadership said that business community has been invited at the LCCI on July 23 (Wednesday) to chalk out the next steps. LCCI President Mian Abuzar Shad made a appeal to Prime Minister Shahbaz Sharif and Deputy Prime Minister Ishaq Dar to hear our legitimate demands and help avoid a nationwide economic crisis. They said that this is not an individual's issue. This is about collective survival. Those who thought a strike would never happen should now open their eyes to the ground reality. They said that business community is the backbone of Pakistan's economy andtheir concerns must be taken seriously. The leadership warned that inaction will result in larger movements, but added that their doors remain open for dialogue. LCCI President Mian Abuzar Shad extended his thanks to national media. Meanwhile, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has joined hands with chambers and trade bodies across the country in a complete industrial shutdown to protest against the controversial arrest powers granted to the FBR under Section 37AA of the Income Tax Ordinance, besides calling for final tax regime and restoration of EFS in its original form for the export industry. The nationwide strike, observed today, was held on the joint call of the Lahore Chamber of Commerce and Industry and other business groups demanding immediate withdrawal of anti-industry laws introduced through the federal budget. Zonal Chairman of PHMA Abdul Hameed, along with former chairmen Shafiq Butt and Naseer Butt, announced the closure of hosiery units as part of the countrywide strike, warning that such legislation would only deepen the crisis facing Pakistan's export-oriented sectors. The PHMA leadership said the business community could no longer stay silent while draconian laws continued to erode the confidence of investors and exporters. They said the participation of PHMA in this strike was not symbolic but a complete operational shutdown in protest against what they termed economic strangulation by the government's policies. Abdul Hameed expressed grave concern over Section 37AA, which gives FBR officers the authority to arrest businesspersons without due process or prior investigation, merely on suspicion of tax evasion. He said this law is a clear violation of constitutional rights and a serious blow to the already fragile industrial environment of Pakistan. Abdul Hameed termed it a 'black law' that legitimizes harassment of genuine taxpayers and exporters, adding that the textile and hosiery sector is already grappling with liquidity shortages, inflated utility tariffs, and a shrinking export order pipeline. PHMA former chairman Shehzad Azam Khan said their protest goes beyond just one law. He reiterated key demands of the value-added textile sector, including restoration of the normal tax regime, a reduction in the discretionary powers of FBR officials, and immediate reinstatement of the original structure of the Export Facilitation Scheme (EFS). He criticized the sudden and unexplained changes made in EFS parameters, which he said had undermined the very foundation of a system meant to support exports. By altering the EFS framework without consultation, the government has left exporters with unmanageable procedural burdens and operational uncertainty, they added. The strike call had received overwhelming support from nearly all chambers of commerce and industrial associations across the country, including Karachi, Faisalabad and Sialkot. Thousands of industrial units, large and small, remained closed for the day as a mark of protest. PHMA leaders warned that if the government failed to meet the business community's demands, the protest could enter the next phase, including indefinite closures and international complaint filings by exporters who fear losing credibility among global buyers due to erratic policymaking at home. Shafiq Butt also demanded the withdrawal of unreasonable taxes imposed on cash withdrawals and raised serious objections to the e-invoicing system that has made compliance nearly impossible for small and medium-sized enterprises. Former chairman Shafiq Butt said the government's attempt to boost revenue by criminalizing business activity is short-sighted and self-destructive. He warned that such coercive measures would push more businesses into the undocumented sector rather than increase tax compliance. Naseer Butt echoed these concerns, saying industrial output is already below 60 percent capacity in several textile zones, and any further disruptions would be disastrous for exports and employment. PHMA leaders also urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to hold urgent consultations with business stakeholders instead of relying solely on bureaucratic advice. They said restoring business confidence through fair taxation, regulatory stability, and policy consultation is the only path forward. They reminded the government that Pakistan's economic recovery depends heavily on exports, and any attack on the export base is equivalent to sabotaging the country's future. Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Resolve issues ‘immediately', LCCI chief tells govt
LAHORE: A nationwide shutter-down has been announced across the country Saturday as the business community intensified its protest against government indifference. Mian Abuzar Shad, President of the Lahore Chamber of Commerce and Industry (LCCI), while addressing a hurriedly-called press conference said if their issues are not resolved immediately, the ongoing negotiations will completely fail. He further stated that after being consistently ignored by the government, the business community has taken this major decision. LCCI President Mian Abuzar Shad announced his active participation in the protest movement, with Senior Vice President Engineer Khalid Usman and Vice President Chaudhry Shahid Nazeer also showed their solidarity with the business community. The movement has received strong backing from the Patron-in-Chief PIAF Anjum Nisar who also assured full support to the trader community. Ali Hussam Asghar, Chairman of the Pioneer Businessmen Group, has also pledged his support, declaring that all of Lahore and Pakistan stands united with the business community. The traders have made it clear that they no longer want promises—they demand concrete action. In a final warning to the government, they declared, 'Provide relief, or the strike continues! The business community's resolute message is clear: if their demands are not addressed promptly, the protest movement will escalate further. Earlier, Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has announced that there will be no strike anywhere in the country today. Addressing a press conference after a special committee meeting in the federal capital, Sheikh stated, 'Chambers of commerce from across Pakistan are united in not calling for a strike. While some members were initially upset, today's meeting has brought everyone on the same page.' He emphasized that the FPCCI's role is to act as a bridge between the business community and the government. 'The government has attentively listened to the concerns of the business community during today's meeting. Following consultations, it has shown flexibility on contentious clauses in the Finance Bill and the Sales Tax Act,' Sheikh explained. The FPCCI chief further revealed that the government has agreed to withdraw the disputed provisions after acknowledging the business community's demands. 'All concerns raised by the business community have been accepted. The meeting's recommendations will now be presented to the Prime Minister for final approval,' he added. Sheikh categorically stated, 'In light of today's decisions, no strike will take place anywhere in Pakistan tomorrow. If any individual has called for a protest, it is in their personal capacity and does not represent the business community.' Copyright Business Recorder, 2025
Business Recorder
5 days ago
- Business
- Business Recorder
Kamal, London Chamber discuss ways to enhance bilateral trade
ISLAMABAD: Minister for Commerce, Jam Kamal has held a meeting with the London Chamber of Commerce and Industry (LCCI) and discussed ways and means to enhance bilateral trade. Highlighting Pakistan's surging IT exports, which crossed USD 3.2 billion in FY 2023–24, the minister invited LCCI members to engage with Pakistan's dynamic tech ecosystem — now ranked second globally for freelance IT professionals. He stressed the importance of collaboration in emerging fields like artificial intelligence and blockchain, and outlined Pakistan's innovative fintech capacities, including early blockchain-powered remittance solutions and growing interest in digital assets and decentralized finance. The minister also underscored Pakistan's readiness for green investment, inviting UK firms to partner in Pakistan's renewable energy transition. He proposed regular business forums and LCCI-led trade missions to Pakistan focusing on underutilized sectors. At the Pakistan Britain Business Council (PBBC), the minister recognized the Council's vital role in bridging public and private sector actors across both countries. The Council lauded Pakistan government's efforts in reviving PIA's operations to UK and stressed how this will help in upping trade of perishables. The minister encouraged PBBC to expand its support to non-traditional Pakistani exports and SMEs, particularly in IT services, women-led entrepreneurship, and cultural industries. He stressed the importance of academic and industry linkages, diaspora engagement, and leveraging the Council's platform for tourism promotion and trade policy feedback. In his meeting with the UK–Pakistan Chamber of Commerce and Industry (UKPCCI), the minister called for enhanced matchmaking between UK importers and reliable Pakistani suppliers. He urged the chamber to mobilize diaspora-led investments in Pakistan through joint ventures, franchising, and startup incubation, and proposed greater support for tourism and culture-focused initiatives. He also highlighted the need for joint accelerators, digital services B2B platforms, and tech-centered business missions to enhance Pakistan's visibility in the UK digital economy. A member of the chamber spoke to the minister about introducing solar powered household heating appliances to the Pakistan market, while another member showed interest in travelling to Pakistan to establish supply chains for in demand fruits and vegetables exportable from Pakistan to UK's largest retailers. The minister directed Trade Wing's team to get in touch with the businesses and pursue the commercial connectivity. The day ended with a dinner with London's Pakistani community's academics, business professionals, IT sector companies and software houses. The minister stressed the role of private sector, need of further engagement with the chambers, businesses and SMEs in Pakistan. He also met with the Birmingham Chamber of Commerce during his visit to the UK, where he emphasized Pakistan's commitment to diversifying its export portfolio in line with the United Kingdom's evolving industrial and consumer needs. Highlighting the rising trade volumes with the Midlands region, the minister showcased Pakistan's emerging strengths in non-traditional sectors such as processed foods, fisheries, pharmaceuticals, leather goods, IT services, furniture, ceramics, and sports goods. He invited Birmingham-based businesses to explore high-quality Pakistani exports including Basmati rice, mangoes, and Halal-certified processed food products. In particular, he presented Pakistan as a dependable partner for the UK's advanced manufacturing and automotive supply chains — citing Pakistan's cost-effective production base, expertise in light engineering and metal fabrication, and its proven track record in supplying components to global automotive brands. Copyright Business Recorder, 2025
Express Tribune
16-07-2025
- Business
- Express Tribune
PM advises FBR to go slow on curbing cash economy
Listen to article Prime Minister Shehbaz Sharif has directed officials to gradually implement the decision of treating half of cash expenses above Rs200,000 as part of income as the business community defers its strike, except for the Lahore Chamber that will press ahead with plans to close shops on Saturday. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) postponed the strike for one month after meeting the government's economic team at the Ministry of Finance on Tuesday. However, the Lahore Chamber of Commerce and Industry (LCCI), which was once considered close to the PML-N, announced that it would go on strike on July 19. LCCI President Mian Abuzar Shad said that his chamber would observe the strike due to rejection of its demand to defer the enforcement of the law for one month. The business community wants immediate withdrawal of the Federal Board of Revenue's (FBR) authority to arrest people on allegations of fraud, powers to add back 50% of cash expenditure above Rs200,000 to the income and depute taxmen in factories. It also demanded that the FBR's discretion to determine input adjustments and the enforcement of electronic invoicing should be suspended. In a meeting held at the PM Office on Monday, Shehbaz Sharif asked tax authorities to adopt a go-slow policy instead of swiftly enforcing the recently approved tax law, according to the government sources. They said that the PM was of the view that the FBR may gradually implement the condition of adding back the cash expenditure of over Rs200,000 to the income. The step has been taken in the budget to discourage the use of cash by traders and firms. According to new Section 21S and Q of the Income Tax Ordinance, 50% of the expenditure claimed in respect of sale where the taxpayer received payment exceeding Rs200,000 otherwise than through a banking channel or digital means against a single invoice containing one or more than one transactions of supply of goods or provision of services will be treated as income. Section 21(q) states whereby 10% of the claimed expenditure attributable to purchases made from persons who are not National Tax Number (NTN) holders shall be disallowed. However, the tax authorities were trying to find a mechanism to adopt a gradual approach as it would require amendment to the ordinance. One of the options was to issue an explanatory note but it would lack the binding legal force. Pakistan's leading business chambers on Tuesday again asked Finance Minister Muhammad Aurangzeb to immediately suspend the laws that authorise the arrest of taxpayers and penalise the use of cash. The government claimed that it could not suspend the law until the International Monetary Fund (IMF) was taken into confidence. Interestingly, last week the government bypassed the IMF to exempt taxes on sugar import. In a press note, the finance ministry said that an important meeting was held with representatives from the business community, chambers of commerce and traders' organisations. The meeting thoroughly discussed concerns over Section 37A and other related matters introduced under the Finance Act 2025. Aurangzeb assured the business community of the government's full cooperation, emphasising that the objective was to prevent large-scale tax fraud and not to harass legitimate and honest businesses. It was decided in the meeting that a committee would be formed under the chairmanship of Special Assistant to Prime Minister on Industries and Production Haroon Akhtar Khan. Besides government officials, the committee will also comprise nominated representatives from the business community. The committee will hold detailed consultations over 30 days and present a mutually agreed solution to the PM. After the meeting, FPCCI President Atif Ikram Sheikh announced the postponement of the strike for one month. However, he was immediately interrupted by the LCCI president, who said that Lahore would observe the strike because of the rejection of its demand. The finance ministry first announced that the business community had postponed the strike but later it issued an amended version and deleted the sentence related to the strike. Suhail Altaf, representing the Rawalpindi Division, said that the government had assured that it would not create hurdles in the way of business activities until the matter was resolved by the committee. The FBR on Tuesday also issued new instructions to empower the district administration to seize cigarettes being sold without valid tax stamps.
Business Recorder
15-07-2025
- Business
- Business Recorder
Traders vow their unwavering support to LCCI
LAHORE: The Lahore Chamber of Commerce and Industry witnessed a massive show of strength at its Traders Convention, where thousands of traders declared their unwavering support for the LCCI. Following overwhelming input from the trader community, LCCI President Mian Abuzar Shad conditionally accepted the government's offer for negotiations saying that any talks must be meaningful and solution-oriented. He said that the July 19 nationwide strike will proceed as scheduled. LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, Former LCCI Presidents Mian Anjum Nisar, Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar, former Vice President Faheem ur Rehman Saigol, representatives of trade and industrial associations and LCCI Executive Committee Members spoke on the occasion. President LCCI Mian Abuzar Shad said that the business community has been pushed to the wall through oppressive policies. We don't enjoy going on strike. We have been squeezed to the point of compulsion. He said that when Lahore moves, the entire country follows. He condemned the imposition of Section 37AA of the Income Tax Ordinance and called it a draconian law aimed at destroying trade and industry. Dual nationals are drafting policies for this country. No wonder the economy has reached this crisis point. He said that the business community did not take these massive loans we are not liable to bear their burden. Why are the $200 billion held abroad not brought back? he questioned. Mian Abuzar warned that if even a single trader is harmed, the entire national business community will rise in protest. We will pay our taxes and we will also demand accountability for the corruption eating up our economy. Former LCCI President and SAARC Chamber Vice President Mian Anjum Nisar said that we do not want to strike but the government has left us with no choice. Doing business has become nearly impossible due to the harsh and impractical budget measures imposed by FBR. He revealed that in Lahore, FBR officials pulled guns on each other over bribery money disputes. He said that the politicians set Rs500 million corruption limit for NAB but businesspersons are arrested over suspicion of Rs50 million. Why this double standard? He warned that Section 37AA would further promote corruption and destroy economic confidence. 'There's only 5% tax in the UAE,' he added and said that here we face one-sided oppression. This won't be just a Lahore strike, Karachi, Peshawar, Sialkot and the entire nation will join. LCCI Senior Vice President Engr. Khalid Usman said that the Finance Minister had promised to incorporate the business community's suggestions into the budget but not a single proposal was implemented. He confirmed that LCCI has been in daily contact with chambers across Pakistan. This will begin with a one-day strike but if the issues remain unresolved, we will launch an indefinite nationwide protest. He said that we are open to negotiations but not for lip service, only for actual solutions. The July 19 strike will go ahead as a countrywide movement. LCCI is leading this historic effort. For the first time in Pakistan's history, there will be a nationwide shutter-down and wheel-jam strike. Copyright Business Recorder, 2025
