Karachi: The Pakistan Commercial Forum called Prime Minister Shehbaz Sharif to repeal the controversial clauses (articles 37aa and 37b) of the 2025 financial bill, warning that the powers of the proposed tax application could stifle the commercial activity and erode the confidence of investors.
In a letter to the Prime Minister, PBF President Khawaja Mehboobur Rehman urged the government to remove articles 37AA and 37B, quoting what he called “regressive tax measures” which are likely to create a hostile commercial environment. Rehman expressed a particular alarm to article 37AA, which grants agents internal income the power to arrest individuals without prior judicial approval.
“These provisions are likely to damage the confidence of already fragile investors and could have a scary effect on economic activity in the key sectors,” said Rehman. The PBF has also reported concerns about other clauses – including sections 14AC and 14AD – which widen the scope of the application of internal income, affirming that these powers could open the door to the harassment of legitimate companies.
Rehman also criticized the lack of incentives for the finance bill for agriculture, in particular cotton, despite the fact that the sector is devolved to the provinces under the 18th amendment. He noted that no relief of the GST had been extended to domestic cotton producers, placing them in a disadvantage and threatening the textile sector – a key contributor to exports and employment. “Despite the insurance of the Ministry of National Food Security, domestic producers are still overlooked,” said the letter.
