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Karachi – August 6, 2025: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed serious concerns over the recent increase in the Infrastructure Development Cess (IDC) on imports in Sindh, raising the rate from 1.25% to as high as 1.85%. FPCCI President Atif Ikram Sheikh has urged the Sindh government to provide clarification on the rationale behind the hike and called for an immediate review of the decision.
The concerns were voiced during a detailed consultative session held at Federation House, Karachi, attended by Sindh’s Minister for Excise, Taxation, and Narcotics, Mukesh Kumar Chawla. The session focused on addressing the business community’s grievances regarding the financial strain caused by the IDC, its legal status, and the lack of visible improvement in infrastructure despite the substantial revenue collected.
President FPCCI Atif Ikram Sheikh pointed out that ongoing court cases, mistrust over the use of funds, and the growing burden on businesses are undermining investor confidence. He welcomed dialogue but emphasized the need for concrete relief and transparency.
In response, Minister Mukesh Kumar Chawla proposed that if businesses collectively withdraw pending court cases related to the cess, the Sindh government would be willing to reduce IDC to 1.0% and maintain that level for the next three years. He also assured that the government is considering removing the cess on solar panels.
Addressing a separate concern, the Minister informed that 200,000 vehicle number plates would be delivered within a week, and the government plans to establish a number plate manufacturing facility at Civic Center, Karachi to resolve the issue permanently.
Saquib Fayyaz Magoon, Senior Vice President of FPCCI, termed the session a positive step forward but cautioned that the business community is still seeking tangible results and policy clarity. He echoed the call to eliminate the cess on solar panels, considering their importance in sustainable energy transition.
Abdul Mohamin Khan, Vice President and Regional Chairman (Sindh) FPCCI, highlighted that the rising cost of production due to duties, taxes, and cess on temporary imports for export-oriented manufacturing could hinder Pakistan’s competitiveness in global markets. He urged the government to exempt imports under the Export Facilitation Scheme (EFS) from the IDC, as these are meant exclusively for producing export goods and taxing them defies the scheme’s purpose.
The FPCCI reiterated its commitment to gathering industry-wide feedback from chambers, associations, and trade bodies to push for the reversal of counterproductive policies that negatively impact business growth, exports, and industrial progress
