LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has strongly condemned the continuation of controversial fiscal amendments introduced under the Finance Act 2025, asserting that Saturday’s successful shutter-down across Punjab and the rest of the country signals a deep rupture in the government’s contract with the business community.
Addressing the wave of frustration engulfing markets from Lahore to Faisalabad, Gujranwala, Sialkot and beyond, BMP Chairman Mian Anjum Nisar noted that this collective shutdown was not a routine protest—it was a definitive vote of no-confidence in the state’s current economic direction.
Traders, industrialists, wholesalers and retailers across Pakistan voluntarily ceased operations to register their dismay at the coercive new powers granted to tax officials under the revised law.
Mian Anjum Nisar stated that Sections 37A and 37B of the Income Tax Ordinance—empowering tax officers with arrest and prosecution authority—violate the constitutional guarantees of fair treatment and due process. He said these clauses are more reflective of a police state than a participatory economy and have triggered panic throughout formal businesses already struggling with rising costs and limited liquidity.
“These measures were neither debated transparently nor tested through pilot phases. The sudden imposition of unchecked arrest powers, aggressive cash handling limits, and unrealistic digital compliance rules has pushed the entire business landscape into uncertainty,” Nisar warned. “You cannot reform an economy by intimidating its engine. What the government has misjudged is the deep-rooted unity of Pakistan’s trading and industrial community.”
He pointed out that even law-abiding businesses with a clear tax history are now rethinking their operations due to the fear of misuse by the enforcement arms of the Federal Board of Revenue. Coupled with hasty implementation of SRO 350 and SRO 709, which mandate complex electronic invoicing and tracking requirements, the situation has left traders vulnerable to penalties without preparation.
Anjum Nisar said the nationwide protest was not confined to any single region or sector. “From mega industrial hubs in Lahore to small-town traders in central Punjab, the shutdown was absolute—and peaceful. This is not political agitation. It is a desperate but constitutional signal from those who have been pushed too far,” he said.
BMP stated that instead of expanding the tax base through engagement, the government has opted for punitive actions that are alienating even registered taxpayers. “This is not how you build trust. If every law-abiding businessperson starts to feel like a criminal, the tax system collapses under its own contradictions,” Nisar remarked.
He expressed serious concern that the government’s narrative continues to suggest that only a few sectors oppose the reforms. “This strike disproved that myth. The unity seen across commercial centers in Punjab should be a wake-up call. We are talking about a total industry halt—a shutdown of production, supply chains, and sales from top to bottom,” he said.
While acknowledging the establishment of a grievance redressal committee by FPCCI and the Ministry of Finance, BMP criticized the lack of urgency in addressing the issues. “At this stage, verbal commitments are not enough. The government must issue written notifications immediately reversing or suspending the most dangerous aspects of these laws,” Nisar insisted.
The Businessmen Panel emphasized that the business community has always been in favor of responsible reforms and progressive digitization. However, it cannot support a system that is imposed overnight, without education, infrastructure, or practical rollout plans. “Pakistan’s economy does not run on apps and directives. It runs on trust, predictability, and dialogue,” he added.
He said BMP had repeatedly presented constructive suggestions, including timelines for documentation, gradual onboarding of digital systems, and protections against harassment. “Unfortunately, the state continues to legislate from a distance, without consulting the very people who will bear the brunt of these policies,” Anjum Nisar lamented.
He warned that if the Finance Act is not amended in the coming days, the economic consequences could extend beyond business closures to investment flight, job losses, and reduced exports. “Pakistan’s productive class cannot afford to operate in fear. We will not be spectators to our own collapse,” Nisar said.
BMP reiterated its complete support for the constitutional right to protest and expressed pride in how peacefully and effectively the strike was observed across the country. “The discipline and unity shown on July 20 have restored our belief that business owners can still come together for the nation’s economic future. But that unity must now be respected—not ignored,” the chairman said.
The Businessmen Panel demanded that the government issue official notifications to immediately withdraw Sections 37A and 37B, revise SRO 350 and SRO 709 with stakeholder input, and suspend punitive cash transaction rules until a proper mechanism is agreed upon. “We are not seeking confrontation. We are demanding correction,” Mian Anjum Nisar said. “If the government fails to act now, the business community will be forced to reconsider how—and whether—it continues to operate under such conditions.”
Copyright Business Recorder, 2025
