Lahore – The Lahore Chamber of Commerce and Industry (LCCI) at a press conference on Monday expressed unwavering solidarity with Iran and registered the business community’s serious reservations over key proposals in the Federal Budget 2025-26. The press conference was presided over by LCCI President Mian Abuzar Shad and attended by Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former presidents Mian Anjum Nisar and Muhammad Ali Mian and former Vice President Faheemur Rehman Saigol. Members of the LCCI executive committee were also present.
Participants strongly condemned the Israel attack on Iran saying that the entire Pakistani nation stands in complete solidarity with Iran. They termed Israel a global menace and said that the people of Pakistan support Iran like a wall of steel in the face of oppression. Shifting focus to domestic economic challenges, all the participants of the press conference expressed grave concern over Section 37AA of the Income Tax Ordinance, under which the Federal Board of Revenue has been granted sweeping powers, including the authority to arrest traders without a court warrant. They categorically rejected these powers, warning that such measures are harsh and will only lead to more fear and uncertainty in the business environment.
LCCI President Mian Abuzar Shad said that the business community is not a scapegoat and should not be sacrificed to cover up the failures of the bureaucracy. He said that every single day, around four billion rupees are lost to speed money, a reflection of deeply rooted corruption within the system. Mian Abuzar Shad held the bureaucracy responsible for the collapse of state-owned enterprises, saying that these losses are consistently compensated from the hard-earned taxes paid by the business community.
Raising alarming questions, he asked who will investigate the Rs80 billion over-invoicing in the import of solar panels and the Rs565 billion refund scam. He further highlighted an outrageous incident in Lahore where FBR officers allegedly drew weapons on each other during a confrontation over bribes, questioning whether any action had been taken in response. Mian Abuzar Shad said that over Rs8,000 billion are being spent on debt servicing, yet no one is being held accountable for who took these loans. He demanded an immediate audit of such financial obligations. Citing economic mismanagement over the past 15 years, he said that Pakistan has suffered losses of Rs24,000 billion in capacity payments to IPPs and Rs25,000 billion due to under-invoicing and smuggling. He demanded to know why no one had been held responsible for these gigantic losses and why bureaucrats and policymakers remain beyond accountability.
LCCI Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that due to these flawed policies and rising uncertainty, Pakistan is witnessing dangerous levels of capital flight. Investors are moving their capital abroad because of the unpredictable environment created by inconsistent government policies and unchecked bureaucratic overreach. Former LCCI President Mian Anjum Nisar also condemned the introduction of Section 37AA and said that it is unacceptable under any circumstances.
He warned that giving such powers to the FBR will only increase bribery, harassment and mistrust between the state and business community. He urged the government to come to its senses and not create more hurdles for business owners who are already struggling under inflation and high costs of doing business. Instead of targeting businesses, he said, the government should focus on plugging leakages in its revenue and resource mechanisms. Former President Muhammad Ali Mian also addressed the press conference, questioning the reasons behind the FBR’s growing powers. He suggested that instead of maligning traders, the Chairman of the FBR should have a direct and open debate with the LCCI president. He opposed recent proposals that include freezing bank accounts of unregistered individuals, banning them from purchasing property and giving FBR authority to withdraw money from accounts at will.
He said these measures are unacceptable, illegal and create an atmosphere of fear among honest taxpayers. He compared the powers granted to FBR officials as handing them seven swords and said that before targeting the business community, the FBR must clean its own ranks and eliminate the black sheep within. Participants of the press conference unanimously expressed solidarity with the people of Iran, with LCCI leaders stating that the people of Pakistan and its business community stand with Iran against aggression, injustice and foreign interference. They urged the government of Pakistan to take firm diplomatic steps to support Iran and uphold the rights of oppressed nations.
