Karachi: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has openly criticized the imposition of tax notices amounting to PKR 60,000 per month on small traders and industries. The FPCCI leadership emphasized the negative impact of these policies on the smaller economic players who are striving to integrate into the formal taxation system.

According to Federation of Pakistan Chambers of Commerce and Industry, Mr. Asif Sakhi, VP of FPCCI, highlighted the challenges faced by small traders and industrialists, including the punitive electricity tariffs linked to capacity charges by Independent Power Producers (IPPs). The gathering at Federation House, which included representatives from various associations of small traders, industries, and shopping centers, voiced a collective frustration over what they perceive as unfair financial pressures exacerbated by governmental policies.

The dialogue further revealed that these tax notices and high electricity costs are not only causing unrest but are also leading to widespread industrial closures and significant job losses. Mr. Sakhi argued for the renegotiation of agreements with IPPs to secure electricity from more cost-effective sources and called for a restructuring of government-owned IPP agreements to alleviate the economic strain. He also pointed out that IPPs continue to levy capacity charges that account for two-thirds of electricity costs, even when no power is supplied.

FPCCI’s discussion underscored that the returns IPPs are generating—allegedly exceeding 73% in dollar terms—are disproportionately high compared to global standards, contributing to the burgeoning circular debt nearing PKR 2.8 trillion in Pakistan’s energy sector. Mr. Khurram Ejaz, former VP of FPCCI, further explained the economic strain caused by guarantees indexed to the US dollar, which exacerbates financial burdens due to the depreciation of the Pakistani rupee.