Business community of Islamabad seeks rightful share in NFC Award

ISLAMABAD: The business community of the federal capital has urged the government to fulfil the longstanding demand for Islamabad’s rightful share in the National Finance Commission (NFC) Award.

The Islamabad Chamber of Commerce and Industry (ICCI) leaders made this demand during a high-level meeting with Federal Minister for Railways Hanif Abbasi. The meeting was convened to address the problems being faced by the business community following the Capital Development Authority’s (CDA) drive to seal various industrial units and business houses.

The business community leaders stressed that the business community is struggling for survival under increasing administrative pressures and other factors.

Chairman Founders Group, Sheikh Tariq Sadiq, said the business community had lost regional competitiveness amid rising operational costs, utility charges, and cumbersome administrative procedures.

Following the meeting with Hanif Abbasi, a week of escalating tensions between the business community and the CDA was resolved as the CDA Chairman agreed to de-seal all the sealed industries and the trade houses unconditionally.

Recognising the gravity of the situation, Minister Abbasi immediately engaged Interior Minister Mohsin Naqvi and pushed for an emergency dialogue. The high-level meeting held at CDA headquarters drew unprecedented attendance.

Both sides committed to a cooperative framework designed to prevent future confrontations and to ensure formal representation of the business community in decisions affecting the capital.

Speaking after the meeting, Mohammad Hanif Abbasi stated that Islamabad cannot progress without its business community and that cooperation, rather than unilateral action, is vital for the capital’s development. He acknowledged the business sector’s grievances and appreciated Minister Naqvi’s swift and constructive response in diffusing the crisis.

ICCI president Sardar Tahir Mehmood presented a comprehensive and forceful account of the challenges faced by traders and industrialists. He demanded the immediate and unconditional de-sealing of business premises, arguing that abrupt enforcement drives without consultation have created fear and instability. He criticised the recent escalation in FAR rates as unjustified and damaging to investor confidence, noting that comparable institutions in other provinces charge far lower fees, and prompting investors’ confidence despite the Prime Minister’s reduction of transfer fees nationwide, the CDA’s refusal to extend the relief to Islamabad was another major concern.

Sardar Tahir further highlighted the excessive delays and financial burdens associated with the DVC process. He said that the involvement of committee members, who simultaneously run private businesses, is a clear conflict of interest. He rejected the steep increase in transfer fees—raised from per-square-yard charges to three per cent of FBR value—describing it as a severe blow to the cost of doing business.

Senior Vice President Tahir Ayub raised the deteriorating condition of the Fruit and Vegetable Market which is playing a vital role in catering the needs of Islamabad, Rawalpindi, KP, Northern Areas and Azad Kashmir.

President Anjuman-e-Tajran Pakistan, Ajmal Baloch, endorsed ICCI’s stance and detailed the challenges faced by traders, particularly from the BCS, Encroachment Wing, and Food Authority. He also acknowledged the commendable performance of Dr Anam, Director of Municipal Corporation, who received appreciation from all participants.

Chairman CDA Muhammad Ali Randhawa acknowledged a communication gap between the administration and the business community, which he said had caused misunderstandings and unnecessary friction. He proposed structured monthly engagements with ICCI and its affiliated sectors to ensure continuous consultation for the city’s betterment. Randhawa affirmed that his office remains open 24/7 for the business community and reiterated his commitment to resolving their issues promptly. He also announced the formation of a working group to review fee structures and assured stakeholders of timely redressal of their concerns.

Copyright Business Recorder, 2025