The business community has postponed the countrywide strike after successful talks with the government over certain budgetary measures introduced through the Finance Act 2025.
A day earlier, the federal government invited representatives of all trade bodies for negotiations after Karachi's business community and transporters announced a countrywide wheel-jam strike scheduled for July 19.
The Karachi Chamber of Commerce and Industry (KCCI) had called the strike in protest against five key measures incorporated into the federal budget for the current fiscal year, along with 32 anomalies in the Finance Act.
KCCI opposes Sections 37A and 37B of the Finance Act, which, it claims, grant the Federal Board of Revenue (FBR) arbitrary arrest powers.
It also objects to Section 21(S), which imposes harsh penalties on cash transactions of Rs200,000 or more; mandatory digital invoicing under SRO 709; and the imposition of E-Bilty under Section 40.
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According to the Ministry of Finance, a joint meeting was held on Tuesday between government officials and business community representatives.
The meeting was chaired by Finance Minister Muhammad Aurangzeb and attended by members of chambers of commerce, trade organisations, and senior government officials.
It included a detailed review of the traders’ concerns, particularly regarding Section 37A and other contentious provisions of the Finance Act 2025.
During the session, a committee was formed under Prime Minister’s Special Assistant Haroon Akhtar Khan to address the business community’s reservations. It was also decided that the strike would be postponed until the committee completes its work.
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The finance minister assured traders of the government's full cooperation and transparency, stating:
“The government’s objective is to curb large-scale tax fraud, not to harass honest businesses.”
The committee will also include Minister of State for Finance Bilal Azhar Kayani, Prime Minister’s Coordinator Rana Ehsan Afzal, the Chairman of the FBR, and representatives nominated by the business community.
The committee is expected to conduct detailed consultations over the next 30 days and present a consensus-based, practical solution to the federal cabinet. It was agreed that the traders’ concerns regarding transactions will be addressed, and efforts will be made to ensure that the business community does not face unnecessary difficulties.
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