KARACHI/LAHORE: Markets in Karachi and Lahore, Pakistan’s two largest cities, remained partially closed on Saturday in response to a strike called by the Karachi and Lahore chambers of commerce against controversial provisions in the Finance Act for FY2025-26. However, the government called the strike ‘symbolic’ following successful negotiations with trade bodies.
Speaking to host Shahzad Iqbal on Geo News’ Programme ‘Naya Pakistan’ on Saturday, Special Assistant to the Prime Minister (SAPM) for Industries and Production Haroon Akhtar Khan said that the government had a detailed discussion with representatives from different trade bodies, including the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), where it, in consultations with external lawyers and other trade experts, worked on the draft to accommodate trade bodies’ demands.
Haroon Akhtar said that trade representatives called him and apologised for their decision to go ahead with the strike and called it a measure taken to satisfy the larger business community. He added that ‘written assurances’ was never a point for concern during the talks. On Friday, the business community was split over the strike. While the FPCCI postponed the protest after talks with the government, the Karachi Chamber of Commerce and Industry (KCCI) and Lahore Chamber of Commerce and Industry (LCCI) said they would go ahead, citing the lack of written assurances on key concerns. Per Haroon Akhtar, the written assurances were never demanded.
Divisions within the business community were evident in Karachi. While all major commercial centres were completely shut, industrial zones saw partial closures. Prominent business hubs such as Bolton Market, Jodia Bazaar, Merewether Road, the Super Highway Fruit and Vegetable Market, Aram Bagh, the motorcycle and auto parts markets, the timber market, and the gold market remained fully closed. Meanwhile, retail areas in Liaquatabad, Hyderi, Tariq Road, Nagan Chowrangi, Malir and Clifton were partially shuttered. Petrol stations across the city continued operations.
Industrial activity in Karachi’s seven major zones was also affected. In Korangi, 20-30 per cent of units closed in the morning but reopened for the second shift. Approximately 70 per cent of units in SITE were shut, though export-oriented businesses remained functional. In North Karachi and Federal B Area, 60 per cent of factories suspended operations, with 40 per cent — mainly exporters — continuing work. Similar trends were reported in the SITE Super Highway Industrial Area. Wholesale, electronics and mobile phone markets also participated in the strike.
Under the Finance Act, the government has expanded the powers of the Federal Board of Revenue (FBR) through several provisions which allow FBR officials to make arrests; sections which introduce steep penalties on cash transactions exceeding Rs200,000; mandatory digital invoicing via SRO 709; and the enforcement of e-Bilty requirements.
Haroon Akhtar said that the government has added at least seven layers of monitoring and checks to prevent any misuse of the powers. He said that the assistant commissioner or the chief commissioner of the FBR cannot make any arrests. He said that there will be a separate committee to determine whether the arrest call for a particular individual is legit. He added that individuals will also get an opportunity of being heard in case they are wrongly accused.
The core issue at present is a clause that allows the FBR to arrest an individual if it fears that the accused will abscond. He said that while this clause overrides the layers of checks implemented by the government, the authorities have agreed to strike it down altogether.
Meanwhile, the strike also sparked tensions within business leadership. Lahore Chamber of Commerce and Industry (LCCI) President Mian Abuzar Shad called for the resignation of FPCCI President Atif Ikram Sheikh, citing dissatisfaction over his handling of recent negotiations with government officials. Sheikh responded by criticising Shad’s conduct in a recent meeting, stating it undermined productive dialogue. In Lahore, major wholesale and retail markets — including Shah Alam Market, Hall Road, Anarkali, Mall Road, Akbari Mandi, Badami Bagh, Loha Market, Lohari Market, Brandreth Road and Gunpat Road — remained closed. The Textile Traders Association confirmed the suspension of retail activity on Mall Road.
However, as seen in previous protests, commercial areas in Cantonment and Defence (DHA) remained open. Fortress Stadium and malls such as Dolmen Mall, located in DHA Phase 6, continued normal operations. Government-run retail outlets like CSD also stayed open. There were no confirmed closures in Saddar Bazaar, which typically remains unaffected by trader-led strikes.
LCCI President Mian Abuzar Shad addressed a press conference on Saturday evening, praising the business community for its “historic unity” and describing 19 July as a defining moment for economic advocacy. He noted that Lahore and Karachi, which collectively account for over 60 per cent of Pakistan’s economic output, were largely inactive during the strike.
Shad detailed that nearly eight hours of virtual talks were held on 18 July with senior government officials, including Haroon Akhtar Khan, FBR Chairman Rashid Langrial, and others.
He called upon Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar — both former LCCI presidents — to intervene and address the business community’s concerns to avoid further disruption. The LCCI has invited traders to a meeting on July 23 to determine the next course of action.
KCCI President Mohammad Javed Balwani expressed gratitude to the business community for supporting the strike, calling it a collective demonstration against what he described as harsh and impractical taxation measures. He stated that the shutdown delivered a message of unity and urged the government to engage in constructive dialogue. “We seek negotiations, not confrontation,” he said. “But if our concerns are ignored, the protest may escalate.”
North Karachi Association President Faisal Moiz and FBAATI President Sheikh Mohammad Tahseen echoed these sentiments, stating that the protest would continue if the Federal Board of Revenue (FBR) did not revisit the contested provisions.
