Federation of Pakistan Chambers of Commerce & Industry Welcomes Reduction in Sindh Infrastructure Cess

PAKISTAN

By Abdullah Solangi

At a press conference held at Federation House, Karachi, the President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Atif Ikram Sheikh, welcomed the Sindh government’s decision to reduce the Sindh Infrastructure Cess from 1.85 percent to a range of 0.80 percent to 0.85 percent.

Describing the development as a “major relief” for the business community, Atif Ikram Sheikh said the reduction would lower the annual cost of doing business by approximately $700 million. He termed the move a historic breakthrough, stating that FPCCI had successfully resolved a 20-year-old issue through sustained efforts and negotiations.

He further announced that the Infrastructure Cess has been abolished on the Export Facilitation (EF) Scheme, providing additional relief to exporters. According to him, FPCCI’s long struggle has finally borne fruit, bringing substantial financial relief to traders and industrialists across the country.

Court Cases and Payment Structure

Senior Vice President of FPCCI, Saquib Fayyaz Magoon, highlighted that the business community currently faces court cases amounting to approximately Rs350 billion under the Sindh Infrastructure Development Cess.

He explained that traders opting to withdraw their cases would be required to pay 15 percent of the outstanding amount by July 31, 2025, another 15 percent by October 31, 2026, and a further 15 percent by July 31, 2027.

Magoon added that a one percent reduction in the cess would significantly ease the financial burden on importers and improve overall trade competitiveness.

Long-Term Payment Plan and Port Efficiency

Regional Chairman Sindh and Vice President FPCCI, Abdul Mohaimin Khan, thanked Sindh government officials, including Mukesh Kumar Chawla, Zia-ul-Hassan Lanjar, and Murtaza Wahab, for facilitating the reduction in the cess.

He stated that after paying 45% of dues within one and a half years, the remaining 55 percent would be payable over a 12-year period from 2028 to 2040. According to him, this step would accelerate cargo clearance processes at ports and reduce associated costs.

Vice President FPCCI Asif Sakhi expressed hope that the Sindh government would continue to introduce business-friendly measures to support industry and trade.

He clarified that the new cess rate would be 0.85% for traders with pending court cases, while those without litigation would be charged a reduced rate of 0.80 percent.

FPCCI officials termed the decision a landmark development aimed at improving the ease of doing business and strengthening economic activity in Sindh and across Pakistan.