AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: A comprehensive federal budget conference was convened by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at their head office in Karachi, under the leadership of Acting President Saquib Fayyaz Magoon. The focal point of the conference was the examination of technical issues in the federal budget for 2025-26, alongside discussions on practical solutions for these challenges. The gathering saw participation from a wide range of trade bodies, associations, and chambers from across Pakistan, both in person and online. Senior officials from the Federal Board of Revenue (FBR) and Pakistan Revenue Automation Limited (PRAL) were also in attendance.
Mr. Magoon highlighted the impracticality of adhering to certain provisions of the Sales Tax Act 1990, such as e-invoicing and e-bilty, for every consignment. He expressed the business community’s dissatisfaction with new clauses 37A and 37AA, arguing that these measures unjustly criminalize compliant taxpayers. Magoon criticized the FBR for not meeting tax collection targets and for resorting to punitive measures against registered taxpayers.
In support, Mr. Asif Sakhi, Vice President of FPCCI, emphasized that the trade and industry sectors are willing to cooperate with the government’s tax collection efforts, provided they respect taxpayers’ dignity.
Mr. Nasir Khan, another VP of FPCCI, warned of potential economic instability due to ineffective governance, which could force businesses to cease operations to avoid losses.
Senior FPCCI member Haji Muhammad Afzal criticized the FBR’s inability to control unregistered sales, urging action against businesses representing unregistered entities.
Umar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association, voiced concerns that current budgetary provisions could lead to industrial closures, stating that while the industry supports digitalization, the present framework is untenable.
The Towel Manufacturers Association reported significant business losses and accused the government of mislabeling them as dishonest. They noted that international buyers are beginning to divert business to neighboring countries.
LNG Association representatives raised issues with SRO 709(I)/2025 concerning e-invoicing, citing high implementation costs, and described a coercive atmosphere created by regulatory authorities.
Pakistan Security Agencies Association members described difficulties in integrating with PRAL systems, noting insufficient guidance and unprepared FBR portals.
Chief Commissioner Zubair Bilal assured attendees that the concerns raised during the conference would be evaluated thoroughly, committing to ongoing, constructive dialogue with the business community.