PCJCCI hails FBR’s move to withdraw ‘excessive’ tax measures

LAHORE: Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) strongly welcomes the Federal Board of Revenue’s (FBR) recent decision to withdraw the excessive and impractical tax measures proposed in the Federal Budget 2025–26. This reversal marks a critical step towards restoring business confidence and stabilizing Pakistan’s fragile economic landscape.

This decision, made possible through the direct support and intervention of Field Marshal General Asim Munir, reflects a deep understanding of the economic challenges facing the private sector and a genuine commitment to inclusive, sustainable growth.

Zafar Iqbal, Acting President of PCJCCI, stated that the proposed tax measures would have directly impacted over 3.5 million small and medium enterprises (SMEs), threatened over 1.2 million jobs, and discouraged both local and foreign investment. Field Marshal Asim Munir’s timely action has not only prevented this fallout but also sent a strong message of solidarity with the business community.

He further added that Pakistan’s GDP growth for FY 2024–25 was recorded at 2.4%, already below the projected 3.5% due to inflationary pressures and high interest rates. The industrial sector, contributing 19.1% to GDP, had shown a decline of 1.3% in the last quarter, mainly due to reduced business activity and investment uncertainty. Foreign Direct Investment (FDI) from China declined by 18% in FY 2024 compared to the previous year, largely attributed to tax unpredictability and regulatory instability.

Salahuddin Hanif, Secretary General PCJCCI said that the reversal of these policies paves the way for enhanced bilateral cooperation under CPEC Phase II and renewed investor confidence from China. We are confident that this business-friendly shift will lead to increased joint ventures, job creation, and SME development. He also added that we reaffirm our commitment to contributing towards a resilient and globally competitive economy through strengthened Pakistan-China business collaboration.

Copyright Business Recorder, 2025