FPCCI Hails Sindh Government’s Infrastructure Cess Reduction for Business Relief

Karachi: Mr. Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), welcomed Sindh’s recent decision to reduce the infrastructure development cess, calling it a historic breakthrough that will significantly ease the financial burden for businesses. This move comes after 20 years of struggle with this issue.

Mr. Atif Ikram Sheikh highlighted how the provincial government had reduced the cess from 1.85 percent to a bracket between 0.80 and 0.85 percent, marking a significant relief for trade and industry. The Infrastructure Development Cess on the Export Facilitation Scheme (EFS) has been completely abolished, fulfilling a long-standing demand of exporters.

Senior Vice President Saquib Fayyaz Magoon from FPCCI elaborated that approximately Rs350 billion related to the Sindh Infrastructure Development Cess is currently tied up in court cases. Under the new arrangement, traders who withdraw their cases will be offered structured payment plans. Mr. Saquib Fayyaz Magoon explained that 15 percent of the outstanding amount would be paid by July 31, 2026; another 15 percent by October 31, 2026; and a further 15 percent by July 31, 2027. This reduction in the cess rate will significantly ease the liquidity burden on importers.

Mr. Abdul Mohamid Khan, VP of FPCCI and Regional Chairman for Sindh, expressed gratitude to Sindh government representatives—specifically Mr. Mukesh Kumar Chawla, Mr. Zia ul Hassan Lanjar, and Mr. Murtaza Wahab—for their role in facilitating the agreement. He detailed a long-term settlement plan for the backlog, stating that after the initial 45 percent payment over the next year and a half, the remaining 55 percent of outstanding cess will be payable over a 12-year period from 2028 to 2040.

This measure will not only cut costs but also expedite port clearance processes, he observed. Mr. Asif Sakhi, VP of FPCCI and one of the party’s top negotiators, clarified that traders with pending court cases who opt for settlement will pay a new cess rate of 0.85 percent; whereas, those without litigation will be subject to a fixed rate of 0.80 percent.

The FPCCI leadership expressed hope that the Sindh government would continue supporting the industrial sector with similar business-friendly initiatives in the future. Brig Iftikhar Opel, SI (M), Retd., Secretary General for the Federation of Pakistan Chambers of Commerce and Industry, voiced his support for this initiative, emphasizing its importance in boosting economic growth.

The reduction in the infrastructure development cess will not only ease the financial burden on businesses but also pave the way for a smoother operational environment. FPCCI’s commitment to resolving long-standing issues highlights their proactive stance towards enhancing business conditions across Sindh and beyond.