The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the Punjab government to withdraw the 0.9% Punjab Infrastructure Development Cess (PIDC), saying it is increasing trade costs and hurting competitiveness.
According to Beyond Time News, FPCCI President Atif Ikram Sheikh raised the issue in a statement, calling for immediate relief for businesses.
Proposal to Revive Dry Ports
Sheikh said that eight dry ports in Punjab are currently underused or non-functional. He suggested that reviving them and shifting customs clearance from Karachi to Punjab could lower costs and improve efficiency.
He added that this shift could also generate new job opportunities.
Rail Transport and Cost Savings
FPCCI Regional Chairman Zaki Aijaz said rail transport is a more economical option for moving cargo.
He noted that clearing goods outside Punjab increases business expenses, especially due to demurrage charges that can reach $100 to $200 per day.
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Impact on Businesses
Business representatives said these additional charges increase overall costs and often benefit large multinational logistics operators, while local traders face financial pressure.
Call for Broader Policy Review
The business community also urged Khyber Pakhtunkhwa and Balochistan to withdraw similar infrastructure development cesses in their respective provinces.
Conclusion
FPCCI has called for coordinated policy changes to reduce taxes on trade, improve logistics efficiency, and support economic growth through lower operational costs and better use of existing infrastructure.
