Karachi: Markets shut down as traders strike over govt's tax measures

Businesses across Pakistan’s commercial capital observed a complete shutdown on Saturday in a powerful protest against new tax measures introduced under the federal government’s latest Finance Act. 

The strike, led by the Karachi Chamber of Commerce and Industry (KCCI), drew widespread support from dozens of trade and market associations, signalling mounting frustration within the business community.

Traders, manufacturers, and retailers closed their shutters in protest against what they call “anti-business” policies threatening to cripple economic activity.

Read: Transporters announce nationwide shutter down strike in solidarity with business community

“This is just a one-day strike for now,” said KCCI President Muhammad Jawed Bilwani during a press conference on Friday. “But if we do not get written assurances before the next meeting, we will escalate to striking once a week, twice a week, or even for entire weeks.”

Bilwani criticised provisions in the Finance Act that empower the Federal Board of Revenue (FBR) to arrest traders, penalise cash transactions exceeding Rs200,000, and mandate digital invoicing for goods transport.

Calling the measures draconian, he warned the government that continued pressure on traders could force them to move their businesses abroad.

“We are the ones who keep the economy running,” Bilwani said. “If our issues are not resolved, there will be no industry left in this country, and we will take our businesses to Dubai.”

Read: Karachi's business community observes shutter down strike in solidarity with Palestine

Trade bodies representing a wide array of sectors, including restaurants, motorcycle spare parts, packaging, and steel, backed the strike, which KCCI claims has support from over 50 associations.

The chamber described the protest as “unprecedented” in scale and unity.

However, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country’s largest national business body, opted out of the strike at the last minute, announcing it had reached a breakthrough in talks with the government.

“FPCCI President Atif Ikram Sheikh has announced the July 19 strike has been deferred following positive engagement with the government,” a statement from the federation read.