FPCCI Hails Sindh Government’s IDC Reduction for Business Relief

Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), welcomed Sindh’s decision to reduce the infrastructure development cess by nearly a third. Terming it a historic breakthrough, Mr. Ikram Sheikh indicated that this move could significantly alleviate annual business costs for hundreds of millions of dollars.

The reduction from 1.85 per cent to between 0.80 per cent and 0.85 per cent is expected to be particularly beneficial for the Export Facilitation Scheme (EFS) industry, which has long struggled with the cost burden of this cess. This resolution marks a significant victory for the business community, providing much-needed fiscal relief.

Mr. Atif Ikram Sheikh highlighted that traders facing ongoing court cases related to infrastructure development would also benefit from a structured payment plan. Under these terms, 15 per cent of their outstanding amount will be payable by July 31, 2026; another 15 per cent by October 31, 2026; and the final 15 per cent by July 31, 2027. This reduction in cess rates is expected to significantly ease importers’ liquidity challenges.

FPCCI’s Senior Vice President Saquib Fayyaz Magoon elaborated further on the financial implications of this decision. Around Rs350 billion currently tied up in court cases related to the Sindh Infrastructure Development Cess would be released into circulation through this structured payment plan. The reduction in cess by one per cent alone is expected to ease importers’ liquidity burden, he noted.

Mr. Abdul Mohamud Khan, VP of FPCCI and Regional Chairman for Sindh, expressed gratitude towards representatives from the Sindh government, including Mr. Mukesh Kumar Chawla, Mr. Zia ul Hassan Lanjar, and Mr. Murtaza Wahab. These officials played a crucial role in facilitating the agreement.

Mr. Abdul Mohamud Khan detailed a long-term settlement plan for the backlog of cess payments. After making an initial 45 per cent payment over the next year and a half, traders will then be responsible for paying out the remaining 55 percent over a period spanning from 2028 to 2040. This measure aims not only to cut costs but also expedite clearance processes at ports.

Mr. Asif Sakhi, VP of FPCCI and the regional chairman for Sindh, clarified differential cess rates applicable under the new regime. For traders with pending court cases who opt for settlement, the new cess rate would be 0.85 per cent; whereas, for those without litigation, it will remain fixed at 0.80 per cent.

The FPCCI leadership expressed hope that Sindh’s government will continue to support the industrial sector through similar business-friendly initiatives in the future. This move is set to have a profound positive impact on both importers and exporters within Pakistan’s economic landscape.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General