KARACHI: Businesses in Pakistan’s commercial capital of Karachi are observing a strike today, Saturday, to protest tax provisions in the country’s new Finance Act, as a growing number of trade bodies express frustration over what they say are “anti-business” measures that threaten to paralyze economic activity.

The Karachi Chamber of Commerce and Industry (KCCI), which spearheaded the strike call, said dozens of major trade and market associations from across the city had endorsed the shutdown, including those representing restaurants, motorcycle spare parts, iron and steel merchants and packaging manufacturers.

“All of Karachi will be closed,” KCCI President Muhammad Jawed Bilwani said at a news conference on Friday after an emergency meeting with market leaders.

“This is just a one-day strike for now,” he added. “But if we do not get written assurances before the next meeting, we will escalate, striking once a week, twice a week or even for entire weeks.”

Bilwani said KCCI had already conveyed its concerns to Prime Minister Shehbaz Sharif and called on the government to roll back provisions that authorize the Federal Board of Revenue (FBR) to arrest traders, impose penalties on cash transactions above Rs200,000, and enforce mandatory digital invoicing for goods transport.

“We are the ones who keep the economy running,” he said. “If our issues are not resolved, there will be no industry left in this country and we will take our businesses to Dubai.”

Saturday’s strike follows a previous warning issued by the chamber earlier this week, when it said over 50 trade associations across Pakistan had endorsed the protest. It also described the level of support as unprecedented in the country’s history.

Despite the broad show of unity in Karachi, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country’s top business body, said on Friday it had postponed its own plans to participate in the strike after what it described as successful talks with the government.

“FPCCI President Atif Ikram Sheikh has announced the July 19 strike has been deferred following positive engagement with the government,” a statement from the federation said.

The split reflects a growing divide within the business community, with some factions seeking negotiation while others escalate their protest campaign.

Traders and transporters say the new tax provisions will burden already-struggling businesses and increase harassment by tax officials, especially in cities like Karachi, where law and order challenges, inflation and declining purchasing power have hurt commercial activity.

The KCCI has insisted that only written guarantees from the government will convince traders to call off the broader strike campaign.

Until then, Bilwani said, the protest will continue.