KARACHI: The Sindh Government's decision to reduce the Infrastructure Development Cess (IDC) has been met with approval from the Karachi Chamber of Commerce and Industry (KCCI), which lauded the move as a significant relief for the business community. The reduction in IDC, from 1.85% to approximately 0.80-0.85%, is expected to lower trade-related costs and align with international trade facilitation norms.

According to Karachi Chamber of Commerce and Industry, the decision follows a series of high-level meetings with the Sindh Government, involving key figures such as Chairman Businessmen Group (BMG) Zubair Motiwala and others, who have been advocating for this change since April 2025. The KCCI emphasized that the reduction in IDC addresses longstanding concerns of importers and exporters about high transactional costs and competitiveness.

The final meeting that led to the decision included Sindh Interior Minister Zia-ul-Hassan Lanjar and other officials who, along with business leaders, contributed to the policy change. The KCCI also welcomed the exemption of goods under the Export Facilitation Scheme from IDC, highlighting its potential to boost export competitiveness.

Additionally, the introduction of a structured Settlement Agreement mechanism under the amended framework was praised for providing legal clarity and reducing administrative complexities. The KCCI hopes this collaborative effort between the public and private sectors will continue to address other critical issues such as taxation and regulatory simplification.

The reduction in IDC is expected to inject liquidity into the market and improve working capital cycles, thereby supporting broader economic activity in the province. The KCCI remains committed to working with the provincial government to ensure that Karachi retains its status as a key economic hub.