In a key development aimed at defusing tensions with the business community, the federal government on Tuesday agreed to establish a high-powered committee to address concerns surrounding Section 37A of the Finance Act 2025. In response, traders have postponed their planned countrywide strike for 30 days.
The decision came during a meeting chaired by Finance Minister Senator Muhammad Aurangzeb in Islamabad, which brought together leading representatives from major chambers of commerce, trade bodies, and business associations, according to a statement issued by the Finance Ministry.
The finance minister assured participants that the government’s objective is to curb tax evasion, not to target or harass compliant businesses. To facilitate constructive engagement, the government announced the formation of a committee under the leadership of Haroon Akhtar Khan, Special Assistant to the Prime Minister on Industries and Production.
The committee will also include Minister of State for Finance Bilal Azhar Kayani, PM’s Coordinator on Trade Rana Ehsan Afzal Khan, the Chairman of the Federal Board of Revenue (FBR), and nominated representatives from the business community.
The panel is tasked with holding intensive consultations over the next 30 days and will submit a consensus-driven set of recommendations to the Prime Minister and the federal cabinet for consideration.
During the meeting, business leaders expressed strong reservations about the implications of Section 37A, particularly its impact on routine commercial transactions. Government officials acknowledged these concerns and pledged to ensure that no additional burdens fall on legitimate enterprises.
While the Karachi Chamber of Commerce and Industry (KCCI) and transporters had earlier announced a strike for July 19 in protest against the Finance Act’s provisions, the call has now been suspended pending the outcome of the committee’s work.
