Karachi: The President of the Karachi Chamber of Commerce & Industry (KCCI), Iftikhar Ahmed Sheikh, has called on the government to reconsider its current taxation and energy pricing strategies, which he claims are stifling local businesses and could lead to wider economic consequences.

According to Karachi Chamber of Commerce and Industry, Sheikh's impassioned plea highlights the severe impacts of high taxes, elevated energy costs, and the broad discretionary powers granted to the Federal Board of Revenue (FBR) on various sectors of the economy, including small traders and large industries. The stringent fiscal measures and energy tariffs, he argues, are not only leading to business closures and layoffs but are also pushing many to the brink of bankruptcy.

Sheikh underscored the urgent need for the government to revise these measures to prevent potential social unrest from those affected by job losses and economic hardship. He also criticized the 2.5 percent advance income tax on unregistered retailers introduced under the Finance Act, 2024, as a major burden on the fast-moving consumer goods sector, which has seen significant pushback from businesses.

Further exacerbating the situation are the high costs of electricity and gas, which remain a primary concern for KCCI. Despite repeated assurances from government officials, the rates have not been adjusted to more manageable levels, which Sheikh, undermines the competitiveness and operational sustainability of Karachi's industrial sector.

The KCCI President also pointed out the broader implications for Pakistan's export sector, noting a drastic potential decline in export volumes due to the shift from a turnover-based final tax regime to standard taxation at much higher rates. He highlighted the negative trade-offs of adhering to stringent IMF conditions, suggesting that the current approach could lead to greater losses than the financial support received through IMF arrangements.

Sheikh’s statement includes a call for a serious reevaluation of the government's strategy to balance IMF requirements with domestic economic priorities, emphasizing the need for practical relief measures that align with both international obligations and local economic health.