Business leaders from across Pakistan on Friday hailed the government’s restricting of the Federal Board of Revenue (FBR)’s arrest powers, stressing intimidation will only serve to discourage investment and enterprise.
In a joint press conference, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President and Regional Chairman Zain Iftikhar Chaudhry; United Business Group (UBG) Patron-in-Chief S. M. Tanveer; Lahore Chamber of Commerce and Industry President Mian Abuzar Shad; and others emphasized the powers granted in the Finance Act 2025 had been unacceptable.
“We are committed to contributing to the national exchequer and do not support tax evasion in any form,” they said. “However, when the rights of the business community are at stake, we will stand together, united and firm,” they added, congratulating the business community for the amendments to Section 37A, declaring it a significant step toward restoring trust and rebuilding the country’s economy.
The amended Section 37A permits arrests only in serious cases of sales tax fraud with any investigation requiring prior approval of a committee comprising a tax commissioner and two nominees from recognized trade bodies. The government has also constituted a Grievances, Redress and Monitoring Committee comprising representatives from the FPCCI, local chambers, and FBR officials to review all arrests on a fortnightly basis to ensure that due process is followed and businesses are not harassed.
The businessmen also discussed concerns regarding Section 21(s) of the Income Tax Ordinance, barring 50% of expense claims for transactions involving cash payments above Rs. 200,000, noting the government had clarified that any cash received into sellers’ bank accounts against invoices would be treated as a banking transaction.
Electricity costs
During the press conference, the business leaders noted that relief in electricity tariffs had yet to materialize for either industries or the general public. They emphasized the urgent need to reduce the cost of doing business, noting that Washington’s recent imposition of a 50% tariff on Indian goods presented Pakistan a unique opportunity to expand its exports.
Urging the government to immediately lower electricity tariffs to 9 cents/unit, as well as bring interest rates down to single digits, they said this was necessary to ensure Pakistan remained competitive in global markets. Failure to act, they warned, could lead to export orders shifting to other countries.
Army chief
The business community also extended its heartfelt gratitude to Chief of Army Staff Field Marshal Asim Munir on helping resolve the tax-related issues. “His timely intervention is a tremendous service to the business sector,” they said, praising him for his vision of transforming Pakistan into an Asian tiger.
They reaffirmed that the business community stood united with him in realizing this national ambition. They also acknowledged that his efforts had ushered in a new era of optimism and progress for the private sector.