Business associations in Karachi have raised strong objections to the proposed Finance Bill 2025-26 and Sindh government’s plan to increase the minimum wage to Rs42,000, warning that both measures could negatively affect industrial activity and exports.
The Sindh government’s proposed wage hike would raise the minimum monthly salary to Rs42,000, up from Rs37,000, making it higher than the Rs37,000–40,000 range in Punjab and Khyber Pakhtunkhwa. Traders argue this disparity could push industries to shift out of Sindh to remain competitive.
Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani criticised the Federal Board of Revenue (FBR) for bypassing the Business Anomalies Committee and acting unilaterally. He cautioned that business protests may escalate into citywide or even nationwide strikes if concerns are not addressed.
Bilwani also rejected claims that the budget is business-friendly, pointing to high energy costs, utility shortages, and delayed tax refunds as existing challenges. He added that global buyers are advising exporters to consider moving operations to more stable markets.
Section 37AA of the Finance Bill drew particular criticism for granting FBR the authority to freeze bank accounts, confiscate funds, and arrest taxpayers based on suspicion. Bilwani said such powers discourage investment and are prompting businesses to consider relocation abroad.
Korangi Association of Trade and Industry (KATI) President Junaid Naqi opposed Sindh’s minimum wage proposal, saying it could impact industrial competitiveness and job creation. He questioned the hike’s rationale when national inflation has dropped to 6 percent.
Naqi added that wage disparity between provinces could drive companies out of Sindh, undermining employment and investment in the province. Business leaders called on the federal and provincial governments to review the proposals in consultation with industry stakeholders.
