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April 28, 2026

FPCCI urges Punjab govt to withdraw 0.9% infrastructure development cess 

Business body says PIDC hurting dry ports, raising costs; calls for shifting customs clearance to Punjab

Monitoring Report

Monitoring Report

April 28, 2026

FPCCI urges Punjab govt to withdraw 0.9% infrastructure development cess 

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called on the Punjab government to withdraw the 0.9 per cent Punjab Infrastructure Development Cess (PIDC), stating that the levy is increasing business costs and affecting trade activity.

FPCCI President Atif Ikram Sheikh said several dry ports in Punjab have become largely non-operational and stressed that their revival could reduce logistics costs and support employment. He added that shifting customs clearance from Karachi to Punjab would ease cost pressures on businesses.

FPCCI Regional Chairman Zaki Aijaz said transporting cargo by rail is more economical and can significantly reduce demurrage charges. He noted that clearance at ports in Sindh increases overall costs, including demurrage payments ranging between $100 and $200 per day in foreign exchange.

The business community also urged the governments of Khyber Pakhtunkhwa and Balochistan to withdraw similar infrastructure cess measures imposed in their provinces, citing concerns over rising costs and trade inefficiencies.

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