LAHORE: Minister of State for Finance and Railways Bilal Azhar Kiani has said the federal government is reviewing concerns raised by the business community regarding the Punjab Infrastructure Development Cess (PIDC), adding that consultations with the Punjab government were continuing and a positive development was expected in July.
He made the remarks while chairing an interactive session organised under the Special Investment Facilitation Council (SIFC), attended by representatives of various chambers of commerce, business organisations, Federal Board of Revenue (FBR), SIFC officials and senior representatives of relevant ministries.
The meeting discussed a range of issues relating to Pakistan’s business and industrial sectors, including taxation policies, industrial competitiveness, investment conditions and ease of doing business.
A major focus of the discussion was the Punjab Infrastructure Development Cess (Amendment) Bill 2026, under which a 0.9 per cent cess has been proposed on goods manufactured, consumed, imported or exported in Punjab.
Lahore Chamber of Commerce and Industry (LCCI) President Faheemur Rehman Sehgal voiced strong reservations over the levy, arguing that it would impose an additional financial burden on industries already facing high energy costs, inflation, elevated interest rates and rising transportation expenses. He warned that the proposed cess could adversely affect industrial competitiveness and slow business activity in the province.
“The government will continue consultations with the private sector to reduce business costs and improve the industrial sector,” the minister said.
