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KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said the Sindh government’s decision to reduce the infrastructure development cess (IDC) is expected to lower the cost of doing business by hundreds of millions of dollars annually.
Atif Ikram Sheikh, president of the FPCCI, commended the provincial government for reducing the cess from 1.85 per cent to a range of 0.8-0.85 per cent. He said the business community had been grappling with the issue for the past two decades and described the move as significant relief for trade and industry.
Sheikh also noted that the infrastructure cess on the export facilitation scheme (EFS) has been abolished entirely, fulfilling a longstanding demand of exporters. The decision, he said, would provide much-needed fiscal space to the trading community.
FPCCI Senior Vice President Saquib Fayyaz Magoon said approximately Rs350 billion relating to the Sindh Infrastructure Development Cess remains tied up in litigation. Under the new arrangement, traders who withdraw their cases will be offered a structured payment plan.
He explained that traders opting to withdraw pending cases will be required to pay 15 per cent of the outstanding amount by July 31, 2026, a further 15 per cent by 31 October 2026, and another 15 per cent byJuly 31, 2027. He added that the one percentage point reduction in the cess would significantly ease the liquidity burden on importers.
Abdul Mohamin Khan, vice president of the FPCCI and regional chairman Sindh, outlined the longer-term settlement plan, stating that after the initial 45 per cent payment over the next 18 months, the remaining 55 per cent of the outstanding cess would be payable over a 12-year period from 2028 to 2040. He said the measure would not only reduce costs but also help expedite clearance processes at ports.
