PIAF voices concern over ‘anti-business’ actions by FBR

LAHORE: Pakistan’s fragile economy risks losing much-needed investment as the country’s leading trade body warns that coercive tax enforcement measures are choking commerce at a time of national hardship.

Pakistan Industrial and Traders Associations Front (PIAF) Chairman and president-elect of the Lahore Chamber of Commerce & Industry (LCCI), Faheem-ur-Rehman Saigol, has sounded an alarm over what he described as “anti-business” actions by the Federal Board of Revenue (FBR).

In a detailed statement released in Lahore, he said that sudden raids on business premises, the posting of tax officials inside private commercial offices, and “intimidatory” inspections have created an atmosphere of fear, undermining investor sentiment and threatening an exodus of capital from the country.

According to Saigol, traders and industrialists form the backbone of Pakistan’s economy and have already endured a brutal year marked by unprecedented floods, surging inflation, and soaring production costs. In many flood-hit areas, he said, basic infrastructure has been wiped out, manufacturing has contracted sharply, and businesses are struggling simply to survive.

“In such a climate, instead of offering relief, the authorities are harassing businesspeople. These tactics will only worsen the downturn and jeopardize any hope of economic recovery,” he warned.

He added that the FBR’s actions risk sending a profoundly negative message to both local entrepreneurs and foreign investors.

“We are already seeing nervousness and anxiety among businesses about the future. If this continues, people will take their money abroad, and Pakistan will face a drain of capital at the very moment it needs investment the most,” Saigol said. He argued that stable and predictable tax policies, not punitive raids, are essential to restoring trust and encouraging businesses to reinvest in Pakistan.

Saigol stressed that the government’s own economic agenda depends on the health of the private sector, which provides jobs, exports, and revenue.

“Without a safe and supportive environment, economic revival will remain a dream,” he said, calling on policymakers to halt “coercive and arbitrary” enforcement and to replace it with dialogue, legal due process, and transparency.

PIAF leader urged the government to adopt a cooperative approach to tax compliance, suggesting that disputes over assessments and regulations be handled through structured consultation with stakeholders rather than through unannounced raids. They warned that such heavy-handed measures erode the already fragile trust between the state and the business community and undermine Pakistan’s efforts to project a business-friendly image abroad.

“Raids not only disrupt day-to-day operations but also tarnish the perception of Pakistan as a place to invest,” Saigol said.

“This is counterproductive when the government itself is trying to attract foreign direct investment and convince overseas Pakistanis to bring their remittances into productive ventures.”

The PIAF chairman also pointed out that respecting traders and industrialists is a prerequisite for economic growth. “We urge the government to conduct an immediate review of these policies and adopt a fair and transparent framework that promotes ease of doing business rather than fear among entrepreneurs,” he said.

He concluded by appealing to the authorities to view the business community as partners rather than adversaries.

“If there are genuine regulatory or legal issues, they can be resolved through dialogue and lawful procedures. What we need is policy stability, not arbitrary action. Only by working together can we achieve sustainable growth, rebuild after the floods, and create jobs for our people,” Saigol said.

The call from PIAF represents one of the strongest warnings yet from Pakistan’s organized business community about the risks of “capital flight” — the movement of money and investment to safer markets — if tax enforcement continues without consultation or due process. With the country facing mounting fiscal challenges, policymakers now find themselves under growing pressure to balance the need for revenue collection with the imperative of sustaining growth and employment.

Copyright Business Recorder, 2025