Traders Stage Widespread Shutdowns Against New Tax Regime

Karachi and Lahore Markets Remain Closed Amidst Growing Frustration Over FBR Powers and Taxation

Karachi: A significant​ wave of protests swept⁤ across Pakistan’s major economic ⁤hubs yesterday, ⁣with traders in Karachi and Lahore​ observing ​widespread shutdowns ⁤to voice their⁤ strong ‍opposition to ‌the new ​taxation regime and expanded powers ‍granted to the⁣ federal Board of ‌Revenue (FBR). The ⁣demonstrations, marked by a near-complete closure of markets, underscore a deepening rift⁢ between‍ the business community and the government ‌over ‍fiscal policies.

In Karachi, seven town associations, alongside prominent trade ⁤bodies such as the Pakistan Hosiery Manufacturers⁣ & Exporters Association (PHMA), Knitwear Exporters, ‌Electronic Dealers, and Petroleum Dealers Associations, united in solidarity. Mr. Atiq Mir, Convenor of the Karachi Tajir Action Committee, reported that the shutdown was “100 percent successful” in the city. He highlighted that ‍verbal assurances from a committee led ⁢by Special Assistant to the Prime ⁢Minister ‌(SAPM) on Finance, Haroon Akhtar Khan, had failed to appease ‍the agitated traders. “Frustration has reached a boiling point,” Mir warned, indicating that a ‍lack of written assurances or tangible progress by the⁢ following week would trigger further⁤ nationwide consultations on future actions. He also extended⁢ gratitude to chambers ‍from other cities for their support.

Lahore Markets Echo Protest Calls

Lahore: The economic capital, Lahore, mirrored Karachi’s sentiment with a thorough shutdown. Traders from key commercial areas vehemently protested the new taxation measures and ‍the FBR’s augmented authority. Despite the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) announcing a withdrawal of the strike, major Lahore markets remained entirely closed ‌in adherence to the Lahore Chamber of Commerce & ⁣Industry’s (LCCI) call.

Prominent markets such as Shah Alam market, Hall Road, Urdu Bazaar, Anarkali, and azam Cloth Market observed a complete closure. While some areas, like Abid Market,⁣ saw partial⁢ operations, traders remained resolute,‍ vowing to ‌continue their⁣ protests until their demands are met.

LCCI President Mian Abuzar Shad hailed⁤ the strike as ⁤a “historic show of unity and resistance,” ​declaring July 19 as a “defining day in the struggle for economic justice.” he stated, “we have been left with no option but to protest either through shutdown strikes or rallies. And we will continue it ​till acceptance⁤ of our​ charter of demands.” A participating ​trader echoed this‌ sentiment, warning, “We will⁣ not ⁣surrender, ‍and the government must listen‍ to​ this well.”

Shad emphasized the economic importance of Lahore and Karachi, noting that ⁢they collectively represent “over 60pc of Pakistan’s economy.” He asserted that ⁤this substantial economic force was “silenced⁤ by⁢ choice⁤ – not force – to⁤ send a ​clear message to the government.”

The LCCI President ‍revealed that extensive virtual discussions,spanning nearly eight hours,were held with senior government officials,including SAPM ⁣Haroon Akhtar and ⁢FBR Chairman rashid Langrial. However, no written commitments were provided. The LCCI’s charter ⁢of demands includes​ urgent revisions to⁤ Sections 37A/B,the ‌e-invoicing and⁤ e-Bilty systems,the 16% sales tax on property rent,and ‍the ⁢20% tax on transactions exceeding Rs200,000.

Twin Cities Remain​ Open Amidst Broader Protests

Islamabad &​ Rawalpindi: In contrast to the widespread closures in Karachi and Lahore, business activities in Islamabad and Rawalpindi proceeded largely as usual.The Islamabad Chamber of Commerce and Industry (ICCI)⁢ President, Nasir Qureshi, explained‍ that the chamber had‍ opted to await the outcomes of recent assurances provided by ‌SAPM Haroon akhtar.

Meanwhile, Ajmal Baloch, President of the All Pakistan Anjuman Tajiran, announced plans for a nationwide protest campaign. This campaign⁤ is set to commence with ⁢demonstrations⁤ on July⁢ 26,followed by phased strike actions if the traders’ demands ⁢remain unaddressed.⁢ Baloch also voiced strong criticism of the bureaucracy, accusing it of misleading the government and warning⁣ of escalating protests should the new ​FBR powers not ‌be revoked.Published in Dawn, July ⁣20th,‍ 2025