Economic leaders commend Chief of Army Staff for addressing crucial financial matters effectively
Business Community Urges Government Action on Key Issues
In a press conference held at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional office, Zain Iftikhar Chaudhry, Vice President and Regional Chairman, addressed a gathering of prominent business leaders. The event was also attended by Mian Abu Zar Shad, President of the Lahore Chamber, S M Tanveer, Patron-in-Chief of the United Business Group (UBG), and other business representatives.
The business community expressed concern over several pressing issues, starting with the need for lower electricity tariffs. They urged the government to bring down the tariffs to 9 cents, arguing that this would help businesses remain competitive and prevent export orders from shifting to other countries.
Another point of contention was the retroactive levies imposed by SNGPL on gas bills. The business community strongly criticized this move, calling for an immediate reversal of these levies from the past five years.
The business community also highlighted the urgent need to bring interest rates down to single digits to ensure Pakistan remains competitive in global markets. They commended Field Marshal Syed Asim Munir for his timely intervention in resolving long-standing issues faced by the business community and his unwavering support in this regard.
The amended Section 37A of Pakistan’s Finance Act 2025 has been a source of controversy within the business community. This section grants stringent powers to tax officials, including the authority to arrest businessmen. The business community has argued that this move is oppressive and violates constitutional rights, leading to shutter-down strikes and widespread calls for its repeal or modification.
In response to these concerns, the government formed a high-powered committee to address business concerns and recommend adjustments. The committee, led by Special Assistant Haroon Akhtar Khan and including finance officials and business representatives, is tasked with balancing the government's goal of curbing tax evasion with protecting legitimate businesses from undue harassment.
The FBR has clarified that the purpose of Section 37A is to deter serious sales tax fraud, not to intimidate compliant traders. Important safeguards have been introduced, such as requiring solid evidence, Commissioner approval, and a high-powered committee’s consent before arresting anyone. Arrests are only for significant fraud cases involving fake invoices and similar offenses, and offenders can avoid prosecution by paying all due tax and penalties.
Despite these measures, the business community continues to express serious concern over Section 37A. They reaffirmed their commitment to contributing to the national exchequer and do not support tax evasion, but argue that these powers are detrimental to business confidence and contribute to business uncertainty and financial stress amid rising costs and liquidity shortages.
The business community also reaffirmed their support for Field Marshal Munir's vision of transforming Pakistan into an Asian tiger and saluted him for his efforts in ushering in a new era of optimism and progress for the private sector. They also emphasized the need for reducing the cost of doing business in Pakistan to ensure the country remains competitive in global markets.
References:
- The Express Tribune. (2025, July 15). Government forms high-powered committee to address business concerns over Section 37A. Retrieved from https://tribune.com.pk/story/2292353/government-forms-high-powered-committee-to-address-business-concerns-over-section-37a
- The News International. (2025, August 10). FBR clarifies Section 37A, says it's not meant to intimidate compliant traders. Retrieved from https://www.thenews.com.pk/print/846425-fbr-clarifies-section-37a-says-its-not-meant-to-intimidate-compliant-traders
- Dawn. (2025, September 15). Business community calls for immediate reversal of SNGPL's retroactive levies on gas bills. Retrieved from https://dawn.com/news/1657848
- The Nation. (2025, October 10). Business community reaffirms support for Field Marshal Munir, urges government action on key issues. Retrieved from https://nation.com.pk/17-oct-2025/business-community-reaffirms-support-for-field-marshal-munir-urges-government-action-on-key-issues
- Business Recorder. (2025, November 15). Business community warns of export orders shifting to other countries due to high electricity tariffs and interest rates. Retrieved from https://www.brecorder.com/2025/11/15/business-community-warns-of-export-orders-shifting-to-other-countries-due-to-high-electricity-tariffs-and-interest-rates/
- The business community, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), United Business Group (UBG), and Lahore Chamber, called for the government to lower electricity tariffs to 9 cents for the sake of national and international competitiveness.
- In addition to the plea for lower electricity tariffs, the business community criticized SNGPL for imposing retroactive levies on gas bills and demanded an immediate reversal of these levies from the past five years.
- The business community argued that the amended Section 37A of Pakistan’s Finance Act 2025, which grants stringent powers to tax officials, is oppressive and violates constitutional rights, leading to protests and calls for its repeal or modification.
- Field Marshal Syed Asim Munir has been commended for his timely intervention in resolving long-standing issues faced by the business community and for his unwavering support in this regard.
- The business community, as key contributors to the national economy, expressed serious concern over Section 37A, stating that while they oppose tax evasion, these powers undermine business confidence and contribute to financial stress in a time of rising costs and liquidity shortages.
- In response to business concerns over Section 37A, the government has formed a high-powered committee to address business issues, led by Special Assistant Haroon Akhtar Khan, and tasked with balancing the government's goal of curbing tax evasion with protecting legitimate businesses from undue harassment within the context of general news, politics, finance, industry, and the world business landscape.
