Pakistan: Karachi traders stage partial strike over tax raids, arrest powers

The strike call was issued last week by the Karachi Chamber of Commerce and Industry (KCCI), with backing from petroleum dealers, transporters, industrial associations, chain store operators, and various trade bodies. According to Dawn, the move is in response to what the KCCI and its allies describe as "anti-business measures" and proposed provincial labour policies.

"A partial strike was observed in Karachi on the call of industrialists and supported by traders of markets against enhancing FBR's powers to conduct raids and arrests of businessmen," All Karachi Tajir Ittehad Chairman Atiq Mir told Dawn.com. The organisation represents markets and shopkeepers in the city.

Mir added that while markets at Gul Plaza, Teen Talwar in Clifton, and Nursery remained open, "the majority of traders have supported the strike, though some of the traders have reservations over the nature of demands."

He further stated that "the demands of small traders were not included, particularly regarding the raids on shops and closure of shops on the pretext of being in poor condition," according to Dawn.

Sharjeel Goplani, a leader of traders from Old City areas, also told Dawn.com that a partial strike was observed in those localities as well. "Lea Market, Urdu Bazaar as well as Timber and Furniture markets remained open," he said.

Dawn noted that the new enforcement powers granted to the FBR under the Finance Act FY26 include authority to block high-value financial transactions by non-filers -- such as property and vehicle purchases, investments in securities and mutual funds, and opening high-end bank accounts. FBR officials have also been empowered to seal unregistered business premises, confiscate goods, and recover taxes from both private and public sector firms.

The Lahore Chamber of Commerce and Industry also announced its support for the strike, condemning the government's decision to expand FBR's powers without consulting the private sector, Dawn reported.

However, Dawn said that a day before the strike, there were signs of division within the business community. Federation of Pakistan Chambers of Commerce and Industry Senior Vice-President Saquib Fayyaz Magoon told Dawn that trade associations and chambers had agreed to defer the strike after meeting with Special Assistant to the Prime Minister on Industries, Haroon Akhtar Khan. (ANI)