The Sindh government has announced a substantial reduction in the provincial Infrastructure Development Cess (IDC) and is advancing a high-tech security programme for Karachi, moves that prominent business figures believe are essential for restoring investor confidence and bolstering economic activity.
The developments were discussed at a dinner on Tuesday hosted by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) for Sindh’s Home Minister, Mr. Ziaul Hassan Lanjar.
Speaking at the event, Mian Zahid Hussain, a leading representative of several national business forums, welcomed the provincial government”s decisions. He stated that these actions are vital for creating a favourable business environment in the province.
Mr. Hussain detailed the landmark decision to cut the IDC from 1.85% to 0.85%, with a further reduction to 0.80% for businesses not involved in litigation. He credited the persistent negotiation efforts of FPCCI President Mr. Atif Ikram Sheikh and Regional Chairman Abdul Mohiman Khan, alongside the instrumental role of Home Minister Lanjar, who also manages the Law and Parliamentary Affairs portfolio, in steering the legislative changes.
A new settlement formula has also been introduced for the Rs. 350 billion currently tied up in legal disputes over the cess. Businesses can now resolve these cases by paying 15% of the outstanding amount by July 2026, with the balance payable over a 12-year period, providing what Mr. Hussain termed a “breathing space” for financially constrained enterprises.
Furthermore, the complete abolition of the cess on the Export Facilitation Scheme (EFS) is anticipated to save the business community millions of dollars annually, significantly enhancing the global competitiveness of exports from Sindh.
Addressing the security landscape, Mr. Hussain expressed the business community’s firm support for the Karachi Safe City Project. “Security is the currency of trade,” he remarked, underscoring that a safe environment is a prerequisite for economic prosperity.
The Home Minister briefed attendees that Phase I of the project involves installing 1,300 high-definition cameras at 300 strategic locations, with a completion target of 60 days. Mr. Hussain noted that this technological upgrade, featuring facial recognition and a modern Traffic Regulation and Citation System (TRACS), will equip the Sindh Police to effectively combat street crime, which has previously seen over 90,000 reported incidents in peak cycles.
The business leader also commended ongoing security operations in the Katcha areas, emphasising that the safety of trade corridors connecting Karachi’s ports to the rest of the country is paramount. He asserted that by lowering its infrastructure levy below that of other provinces, Sindh is positioning itself as a premier destination for industrial investment and relocation.
In closing, Mr. Hussain urged the provincial government to ensure that revenue collected from the revised cess is exclusively channelled into rehabilitating dilapidated infrastructure within industrial zones. He also proposed the establishment of a joint monitoring committee, comprising representatives from the Home Department and the business community, to oversee the implementation of the Safe City Project.