LAHORE: All major commercial areas, including Shah Alam Market, Akbari Mandi, Hall Road, Mall Road, Anarkali, and others, were shut down, with support from all factions of the city’s traders’ unions. The Lahore Chamber of Commerce also endorsed the protest.
The strike, called in protest against expanded powers granted to the Federal Board of Revenue (FBR), divided traders into opposing camps.
Traders’ leader Haji Maqsood Butt declared the strike a success and warned that if the FBR continued to “harass” traders or exert “unjustified authority,” further action would be taken. “We are united, and we reject forced compliance,” he said.
Lahore Chamber of Commerce and Industry President Mian Abuzar Shad has appreciated the business community for showing a great response and the overwhelming success of the nationwide shutter-down strike on July 19.
The press conference was attended and addressed by Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former Presidents Mian Anjum Nisar, Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol.
Speaking on the occasion, LCCI President Mian Abuzar Shad said that the 19th of July 2025 will go down in history as a defining day of awareness, unity and struggle by Pakistan’s business community. He extended heartfelt gratitude to the traders, shopkeepers, industrialists and all market associations of Lahore who responded to the LCCI’s call and ensured a complete, peaceful and disciplined strike. Lahore has proven today that it is not just a city – it is a sentiment, a force.
The LCCI President also appreciated the strong response from other cities including Karachi, Hyderabad, Sukkur and others who joined hands for a common cause.
He added that Lahore and Karachi collectively contribute over 60% of Pakistan’s economic activity. Today, that 60% was silenced, not by force, but by choice to register protest against oppressive and non-consulted tax measures.
He informed the media that nearly eight hours of negotiations were held via Zoom on July 18 , involving top government officials including Haroon Akhtar Khan, Chairman FBR Rashid Langrial, Bilal Azhar Kayani and others while from the LCCI, the meeting was attended by the LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, Former Presidents Mian Anjum Nisar and Muhammad Ali Mian, Former SVP Ali Hussam Asghar and former Vice President Faheem ur Rehman Saigol. During the discussion, the LCCI demanded urgent revisions and clarifications on Section 37AA, Implementation of E-Invoicing and e-bilty system, 16% sales tax on rent of properties and 20% tax on transactions above PKR 200,000.
“We asked for a public statement or at least official meeting minutes to share with our stakeholders. Neither was provided. This left us with no choice but to proceed with a strike,” said Mian Abuzar Shad.
LCCI Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that we are patriots. We are willing to pay taxes. But we demand justice and inclusion in policymaking. Our protest is not for personal gain but to safeguard millions of livelihoods across the country.”
The LCCI leadership said that business community has been invited at the LCCI on July 23 (Wednesday) to chalk out the next steps.
LCCI President Mian Abuzar Shad made a appeal to Prime Minister Shahbaz Sharif and Deputy Prime Minister Ishaq Dar to hear our legitimate demands and help avoid a nationwide economic crisis. They said that this is not an individual’s issue. This is about collective survival. Those who thought a strike would never happen should now open their eyes to the ground reality.
They said that business community is the backbone of Pakistan’s economy andtheir concerns must be taken seriously. The leadership warned that inaction will result in larger movements, but added that their doors remain open for dialogue.
LCCI President Mian Abuzar Shad extended his thanks to national media.
Meanwhile, Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has joined hands with chambers and trade bodies across the country in a complete industrial shutdown to protest against the controversial arrest powers granted to the FBR under Section 37AA of the Income Tax Ordinance, besides calling for final tax regime and restoration of EFS in its original form for the export industry. The nationwide strike, observed today, was held on the joint call of the Lahore Chamber of Commerce and Industry and other business groups demanding immediate withdrawal of anti-industry laws introduced through the federal budget.
Zonal Chairman of PHMA Abdul Hameed, along with former chairmen Shafiq Butt and Naseer Butt, announced the closure of hosiery units as part of the countrywide strike, warning that such legislation would only deepen the crisis facing Pakistan’s export-oriented sectors. The PHMA leadership said the business community could no longer stay silent while draconian laws continued to erode the confidence of investors and exporters. They said the participation of PHMA in this strike was not symbolic but a complete operational shutdown in protest against what they termed economic strangulation by the government’s policies.
Abdul Hameed expressed grave concern over Section 37AA, which gives FBR officers the authority to arrest businesspersons without due process or prior investigation, merely on suspicion of tax evasion. He said this law is a clear violation of constitutional rights and a serious blow to the already fragile industrial environment of Pakistan.
Abdul Hameed termed it a “black law” that legitimizes harassment of genuine taxpayers and exporters, adding that the textile and hosiery sector is already grappling with liquidity shortages, inflated utility tariffs, and a shrinking export order pipeline.
PHMA former chairman Shehzad Azam Khan said their protest goes beyond just one law. He reiterated key demands of the value-added textile sector, including restoration of the normal tax regime, a reduction in the discretionary powers of FBR officials, and immediate reinstatement of the original structure of the Export Facilitation Scheme (EFS). He criticized the sudden and unexplained changes made in EFS parameters, which he said had undermined the very foundation of a system meant to support exports. By altering the EFS framework without consultation, the government has left exporters with unmanageable procedural burdens and operational uncertainty, they added.
The strike call had received overwhelming support from nearly all chambers of commerce and industrial associations across the country, including Karachi, Faisalabad and Sialkot. Thousands of industrial units, large and small, remained closed for the day as a mark of protest. PHMA leaders warned that if the government failed to meet the business community’s demands, the protest could enter the next phase, including indefinite closures and international complaint filings by exporters who fear losing credibility among global buyers due to erratic policymaking at home.
Shafiq Butt also demanded the withdrawal of unreasonable taxes imposed on cash withdrawals and raised serious objections to the e-invoicing system that has made compliance nearly impossible for small and medium-sized enterprises. Former chairman Shafiq Butt said the government’s attempt to boost revenue by criminalizing business activity is short-sighted and self-destructive. He warned that such coercive measures would push more businesses into the undocumented sector rather than increase tax compliance. Naseer Butt echoed these concerns, saying industrial output is already below 60 percent capacity in several textile zones, and any further disruptions would be disastrous for exports and employment.
PHMA leaders also urged Prime Minister Shehbaz Sharif and Finance Minister Muhammad Aurangzeb to hold urgent consultations with business stakeholders instead of relying solely on bureaucratic advice. They said restoring business confidence through fair taxation, regulatory stability, and policy consultation is the only path forward. They reminded the government that Pakistan’s economic recovery depends heavily on exports, and any attack on the export base is equivalent to sabotaging the country’s future.
Copyright Business Recorder, 2025
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