2 min read
Strong opposition is mounting over the proposed Sindh minimum wage hike and tax measures in the Finance Bill 2025-26, as Karachi’s business community warns of dire economic consequences for industry, exports, and employment.
As banners protesting the federal budget surfaced across Karachi, business leaders voiced fierce criticism against both the Finance Bill 2025-26 and the Sindh minimum wage hike proposal, warning that the combined impact could devastate industrial and export sectors.
The Sindh government plans to raise the minimum wage from Rs37,000 to Rs42,000—exceeding the Rs37,000–40,000 range implemented in Punjab and Khyber Pakhtunkhwa. This move has sparked concerns about provincial wage disparity and its implications for regional competitiveness.
The Karachi Chamber of Commerce and Industry (KCCI) took aim at the Federal Board of Revenue (FBR), accusing it of bypassing the Business Anomalies Committee and adopting an authoritarian approach. KCCI President Muhammad Jawed Bilwani warned that protests could escalate into citywide or even nationwide strikes if business concerns continue to be ignored.
Bilwani dismissed claims that the federal budget is “business-friendly,” citing high energy costs, gas shortages, water scarcity, poor power supply, and long-delayed tax refunds as major hurdles. He noted that many exporters are now considering shifting their operations abroad due to Pakistan’s unstable business climate.
Concerns Mount Over Sweeping Tax Enforcement Powers
A major flashpoint is Section 37AA of the proposed budget, which would give the FBR sweeping powers to freeze accounts, seize funds, and arrest taxpayers based merely on suspicion. “How can anyone do business under these conditions?” Bilwani asked.
He also revealed that KCCI is being approached by entrepreneurs seeking guidance on relocating their businesses to more secure, investor-friendly countries. Similar unrest is reportedly building in key industrial zones like Faisalabad, Lahore, and Sialkot.
On the Sindh minimum wage hike, Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), said the proposed increase could harm industry growth, investment, and job creation. With national inflation now at just 6%, he questioned the economic logic behind the wage jump.
Naqi warned that if Sindh enforces higher wage rates than other provinces, companies may be forced to relocate to maintain competitiveness, risking mass layoffs and further damaging the provincial economy.
