Nationwide strike looms as Karachi business leaders, transporters unite against ‘anti-business’ tax law

Nationwide strike looms as Karachi business leaders, transporters unite against ‘anti-business’ tax law
A man walks past a shuttered market during the countrywide traders strike in Karachi, Pakistan, on October 29, 2019. (AFP/File)
Short Url
Updated 15 July 2025
Follow

Nationwide strike looms as Karachi business leaders, transporters unite against ‘anti-business’ tax law

Nationwide strike looms as Karachi business leaders, transporters unite against ‘anti-business’ tax law
  • Shutdown on July 19 could bring economic activity to a standstill, traders and transporters warn
  • Business community is protesting over key provisions in government’s new Finance Act 2025

KARACHI: Pakistan’s largest business chamber has joined forces with goods transporters from across the country to call for a nationwide strike this week on July 19 in protest against key provisions in the government’s new Finance Act 2025, which they say threaten to paralyze economic activity and stifle trade.

The president of the Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani, announced the planned shutdown at a press conference on Monday, flanked by senior chamber officials and leaders of multiple transport alliances.

The strike, they warned, will halt the movement of goods and bring business operations to a grinding halt if the federal government fails to suspend what they describe as “anti-business” measures.

“Unless the government puts all these measures in abeyance, the nationwide strike scheduled for July 19 will take place with full force, bringing economic activity across the country to a grinding halt,” Bilwani said, according to the official statement.

The business community says more than 50 trade associations nationwide have pledged formal support for the strike, signaling what could be one of the biggest shutdowns in Pakistan in recent years if the deadlock persists.

The chamber has listed five key demands, including withdrawal of new sections that grant the Federal Board of Revenue (FBR) powers to arrest traders, penalties on cash transactions above Rs200,000, mandatory digital invoicing, a new e-bilty requirement for goods transporters, and the restoration of the Final Tax Regime for exporters.

Bilwani said transporters’ associations had pledged “unwavering solidarity” with the business community and committed to a complete wheel-jam strike that will stop the movement of trucks nationwide on July 19.

“No vehicle will move… in absolute unity with the business community,” he said.

This is not the first time Pakistan’s business community has threatened mass shutdowns in response to tax measures. But the show of unity between traders and goods transporters has raised fears of significant supply chain disruptions.

Bilwani said while the Ministry of Finance has made informal contact with the chamber, there has been no official commitment to roll back the controversial measures. He insisted that “only upon suspension of these provisions” would the business community agree to any further talks with lawmakers.

Chairman of the Businessmen Group (BMG) Zubair Motiwala, also speaking at the event, warned that the strike was a last resort:

“While the business community does not favor frequent strikes, the prevailing conditions have left no other option,” he said, according to the KCCI statement.

Transport leaders, including representatives of the Pakistan Goods Transport Alliance and other associations, declared their “full and unconditional support” for the strike and pledged to remain aligned with KCCI’s demands “regardless of the consequences.”


Pakistan’s textile industry braces for $3 billion cotton import bill as floods devastate crops

Pakistan’s textile industry braces for $3 billion cotton import bill as floods devastate crops
Updated 58 sec ago
Follow

Pakistan’s textile industry braces for $3 billion cotton import bill as floods devastate crops

Pakistan’s textile industry braces for $3 billion cotton import bill as floods devastate crops
  • Textile mills warn of severe cotton crop loss, urge government to declare national emergency
  • Analysts project up to five million bales lost, threatening $6 billion in damages for the industry

KARACHI: Pakistan’s textile manufacturers expect cotton imports to surge to as much as $3 billion this year, double last year’s bill, after floods devastated key growing areas in Punjab and now threaten Sindh, industry officials and analysts said.

The monsoon deluges, which have already swamped central Punjab, the nation’s breadbasket, are moving south toward Sindh, the country’s second-largest cotton belt, raising fears that further damage to fields will deepen losses in the days ahead. Agriculture makes up nearly a quarter of GDP and employs almost half of the labor force, according to the Pakistan Bureau of Statistics.

“Probably, our cotton import can exceed $2.5 to $3 billion this year alone,” said Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), adding that millers imported $1.5 billion worth of cotton last year from Brazil, the United States, Africa and Australia.

Arshad said cotton-growing areas in central Punjab such as Vehari, Mailsi, Chichawatni and Burewala had been “negatively affected,” while some genetically modified Bt cotton crops were also under water. 

“This can lead to a crisis, because a lot of people will be losing their livelihoods. Their crops will be at stake,” he said, urging the government to declare a national emergency and curb luxury imports to conserve foreign exchange.

He also blamed record water releases from upstream India for compounding the devastation. Under the 1960 Indus Waters Treaty, India controls the eastern rivers but is required to notify Pakistan of dam discharges that can cause downstream flooding.

Flood damage has also undermined projections for Pakistan’s top export industry, which earned $18 billion last year.

“We were projecting a growth in textile exports from $18 billion to up to $20 billion in the coming year, but I don’t think that level will be achieved because of the unavailability of cotton and the higher cost of production,” said Ahsan Mehanti, chief executive of Arif Habib Commodities.

He estimated the industry could face a $6 billion hit, including about $4 billion in additional import costs and $2 billion in lost export potential. “This flood will have a devastating impact not only on cotton output but the exchange rate will equally be impacted,” Mehanti said.

PRODUCTION LOSSES

Analysts warned Pakistan may lose up to five million bales from this year’s 10.2 million bale production target, with overall output falling below last year’s seven million.

“The government’s target to produce 5.5 million bales in Punjab does not seem achievable now … cotton output may not exceed 4.5 million bales if flooding increases,” said Naseem Usman, chairman of the Karachi Cotton Brokers Forum.

Official data confirm the downturn. Pakistan’s cotton production as of Aug. 15 had already contracted by more than 17 percent to 887,401 bales, compared with 1.1 million a year earlier, according to a Sept. 2 report by the Pakistan Central Cotton Committee.

Usman said consumption would remain higher than domestic output, forcing Pakistan to rely heavily on imports that could exceed $2 billion, including raw cotton, seed and oil for animal feed.


Five Pakistani textile firms showcase at Shanghai expo as exports surge 32 percent in July

Five Pakistani textile firms showcase at Shanghai expo as exports surge 32 percent in July
Updated 8 min 45 sec ago
Follow

Five Pakistani textile firms showcase at Shanghai expo as exports surge 32 percent in July

Five Pakistani textile firms showcase at Shanghai expo as exports surge 32 percent in July
  • Industry delegation highlights sector revival after exports hit $17.9 billion last fiscal year
  • Consul General says event key for technology transfer and joint ventures with Chinese firms

ISLAMABAD: Five Pakistani textile and apparel firms are showcasing at a major Shanghai industry expo this week, as the country’s textile exports jumped 32 percent in July and reached nearly $18 billion in the last fiscal year, state-run Associated Press of Pakistan (APP) reported.

The companies are participating in Intertextile Shanghai Apparel Fabrics – Autumn 2025, part of the China Textile Autumn Joint Expo that has drawn 5,200 exhibitors from more than 30 countries. 

The event, which runs September 2–4, is among the world’s leading platforms for fabrics, yarn, and apparel innovation.

“Pakistani companies have a long tradition of participating in Intertextile, which offers two vital segments: one for fabrics and another for apparel,” Pakistan’s Consul General in Shanghai Shehzad Ahmad Khan told APP. 

“This provides an excellent opportunity for collaboration with Chinese companies, particularly in acquiring cutting-edge technology for man-made fabrics and exploring joint ventures in high-value apparel using wool, cotton, and specialty materials.”

APP said Pakistan’s textile sector, the backbone of its export economy, recorded 7.39 percent growth in FY2024–25, with shipments rising to $17.89 billion from $16.65 billion the previous year. The industry earned $18 billion in total exports last year, more than half the country’s overall export revenue.

Khan added the Shanghai expo also allowed firms to “form strategic alliances for entering third-party markets,” noting its timing alongside Prime Minister Shehbaz Sharif’s visit to China for the SCO summit and the second Pakistan–China Investment B2B Conference in Beijing.

Among the exhibitors is Azgard Nine Ltd, a producer of sustainable denim fabrics and garments, which said participation in earlier editions had generated new business. 

“Our participation in the spring edition yielded positive results, and we are highly confident that this edition will open even more doors for innovation and partnership,” Deputy General Manager Sana Arshad told APP.

The Intertextile fair is part of the 350,000-square-meter China Textile Autumn Joint Expo 2025, which brings together four specialized events, Intertextile, CHIC, Yarn Expo and PH Value, showcasing advances in fashion, technology, sustainability, and wellness.

 


Pakistan police kill suspected militant commander in northwest operation

Pakistan police kill suspected militant commander in northwest operation
Updated 23 min 36 sec ago
Follow

Pakistan police kill suspected militant commander in northwest operation

Pakistan police kill suspected militant commander in northwest operation
  • Police say commander was wanted for bombings and targeted killings of policemen
  • Militancy surges in Khyber Pakhtunkhwa as TTP attacks on security forces intensify

PESHAWAR: A suspected militant commander wanted for bomb attacks and targeted killings of policemen was killed on Wednesday in an intelligence-based operation in northwest Pakistan, police said.

The Counter Terrorism Department (CTD) launched the raid in Nawar Khel, Lakki Marwat district of Khyber Pakhtunkhwa province, after intelligence indicated suspected militant Kifayatullah, alias Kifayati, was hiding in a compound and plotting new assaults.

Lakki Marwat, on the edge of Pakistan’s tribal belt bordering Afghanistan, has seen frequent assaults by Pakistani Taliban militants, known as the Tehreek-e-Taliban Pakistan (TTP).

“The police and CTD teams launched the operation under the supervision of District Police Officer Nazir Khan,” police said in a statement. 

“During the raid, the militants opened fire on the police party and injured Constable Rizwan. The police retaliated bravely and an intense exchange of fire ensued.”

Police said a Kalashnikov rifle and ammunition were recovered from the suspect, while a search and clearance operation was ongoing.

The raid came a day after six Pakistani security personnel and six militants were killed in an hours-long gunbattle at a paramilitary compound in Bannu district, underscoring the scale of violence sweeping Khyber Pakhtunkhwa.

At least 75 policemen were killed in ambushes and targeted attacks in the province last year, according to police data. 

Earlier on Wednesday, six passengers were shot dead by gunmen in Kurram district, another flashpoint near the Afghan border where sectarian violence has flared in recent months.

Militant attacks across Khyber Pakhtunkhwa have surged since November 2022, when a fragile truce between the TTP and the Pakistani government collapsed. 

Islamabad has accused Afghanistan’s Taliban rulers of sheltering Pakistani militants and India of backing insurgents in Khyber Pakhtunkhwa and Balochistan, allegations both Kabul and New Delhi deny.

 


Pakistan floods kill 43, displace 1.3 million in Punjab as rivers set to swell further

Pakistan floods kill 43, displace 1.3 million in Punjab as rivers set to swell further
Updated 03 September 2025
Follow

Pakistan floods kill 43, displace 1.3 million in Punjab as rivers set to swell further

Pakistan floods kill 43, displace 1.3 million in Punjab as rivers set to swell further
  • More than 3.6 million affected in breadbasket Punjab region, official says
  • 1.29 million evacuated, hundreds of camps set up across Punjab province

ISLAMABAD: Pakistan said on Wednesday floods had killed at least 43 people in the last 10 days and displaced over 1.3 million in the breadbasket Punjab province, as swollen rivers carried some of the heaviest volumes in years and officials warned the threat of further inundations remained.

Authorities said more than 3.6 million people had been affected across 3,363 villages after days of heavy monsoon rains and dam releases from upstream India. Nearly 1.29 million people had been moved to safer areas, with hundreds of relief camps set up across inundated districts.

Nationwide, rains, floods and landslides have killed over 880 people since late June, reviving memories of Pakistan’s catastrophic 2022 deluges when a third of the country was submerged, 30 million displaced and losses topped $35 billion.

“Severe flooding in the Ravi, Sutlej and Chenab rivers has affected more than 3.63 million people across 3,363 villages,” Punjab Relief Commissioner Nabeel Javed said in a statement.

“Around 1.29 million people trapped in floodwaters have been moved to safe places. Forty-three citizens have died in the recent flooding.”

The latest monitoring of river flows showed the Chenab carrying 549,000 cusecs at Marala Headworks, with levels at Khanki reaching 478,000 cusecs and Qadirabad 348,000 cusecs. At Trimmu, the river was flowing at nearly 294,000 cusecs. The Ravi at Jassar had climbed to almost 89,000 cusecs, while the Sutlej at Ganda Singh Wala was steady at 269,000 cusecs.

Punjab’s disaster authority said the Chenab had swelled by more than 400,000 cusecs in the past eight hours, warning that flows in the Ravi, Chenab and Sutlej were expected to increase further through Sept. 5 due to continued rainfall in upstream catchments. Officials said the situation remained critical for downstream districts, where embankments were being reinforced and evacuation teams pre-deployed.

“Lives and livelihoods are being protected through timely evacuations and relief efforts, but the situation remains critical,” Javed said.

Authorities said 405 relief camps had been established for displaced families, alongside 425 medical camps and 385 veterinary centers. Nearly 800,000 livestock have been shifted to higher ground.

Floodwaters have battered electricity distribution networks across Punjab, leaving tens of thousands without power in districts such as Jhang and Toba Tek Singh. Restoration work is continuing, with officials saying most repairs should be completed later this week if waters recede.

In Sialkot, a major export hub, the city’s international airport said all flight operations had resumed after precautionary measures were taken.

“The airport is fully operational, and a new shuttle service has been launched for passengers,” spokesperson Muhammad Umair Khan said.

Pakistan is among the countries most vulnerable to climate change, where scientists say rising temperatures are making South Asian monsoon rains heavier and more erratic. Seasonal downpours provide up to 80 percent of the country’s annual rainfall but also cause regular devastation.


Gunmen kill six in Pakistan’s volatile northwestern border region

Gunmen kill six in Pakistan’s volatile northwestern border region
Updated 03 September 2025
Follow

Gunmen kill six in Pakistan’s volatile northwestern border region

Gunmen kill six in Pakistan’s volatile northwestern border region
  • Incident took place in Kurram district which has witnessed violence in recent months
  • Independent human rights commission urges immediate, impartial inquiry into killings

PESHAWAR: Gunmen opened fire on a vehicle Wednesday in Pakistan’s volatile northwestern border region killing six civilians, local authorities told AFP.

The attack was in Kurram district on the border with Afghanistan, where sectarian violence has flared in recent months. 

“This morning, armed men targeted a vehicle belonging to a member of the Sunni community from Para Chamkani,” local administrative official Amir Nawaz Khan said.

“Six people inside the vehicle were killed.”

Another official in Kurram, who spoke on condition of anonymity, confirmed the attack, which he said took place in a Shia-majority area.

Kurram has been wracked by sectarian violence for decades.

Around 250 people have been killed in a flare-up of fighting since July, according to local officials.

Pakistan is a Sunni-majority country but Shiites make up between 10 and 15 percent of the population.

The Human Rights Commission of Pakistan, the country’s leading human rights NGO, urged an “immediate and impartial inquiry into the incident” and referred to the situation in Kurram as a “humanitarian crisis.”

The local government of northwestern Khyber Pakhtunkhwa province and tribal leaders have touted numerous truces between the warring communities, but none have managed to stop the violence, with feuding regularly rekindled over land disputes.

In February, an ambush on a convoy bringing food supplies to the region killed six people.