KARACHI: President of the Korangi Association of Trade and Industry (KATI) Muhammad Ikram Rajput has expressed serious concern over the federal government’s decision to immediately recover Rs217 billion from exporters in the form of super tax for the period from 2022 to 2026, warning that the move could push already distressed industries towards collapse.
Rajput said the industrial sector is already under severe pressure, and the sudden recovery of such a massive amount would further exacerbate the crisis. He termed the government’s decision alarming, stating that it would not only damage local industry but also pose serious risks to investment in the country.
The KATI president pointed out that since the imposition of the super tax, the effective tax burden on industries has exceeded 50 percent, making it virtually impossible to conduct business. He added that high electricity and gas tariffs have already pushed production costs to the highest levels in the region, further eroding the competitiveness of Pakistani exports. Urging the federal government to reconsider its decision, he called for immediate relief for the industrial and commercial sectors.
He stressed the need for urgent and meaningful consultations between the government and trade and industry bodies across the country to develop a practical and industry-friendly mechanism.
He proposed that instead of demanding lump-sum payment of four years’ dues, the outstanding super tax should be recovered through easy instalments over a period of three to four years. Alternatively, he suggested offering special concessions on payment of 25 percent upfront, along with allowing adjustment against pending export refunds, to provide much-needed relief to cash-strapped exporters.
Rajput said that failure to take immediate corrective measures could accelerate large-scale industrial closures, leading to job losses and causing irreparable damage to the national economy. He noted that local industry is already facing intense competition in the global market, and the imposition of super tax would further weaken exports and negatively impact industrial activity.
The KATI president also highlighted that under the fixed tax regime in the past, taxes imposed on exporters were considered full and final settlement. As a result, exporters did not factor super tax into their cost structures. In this context, he said, holding exporters liable for retrospective super tax payments was unjustified.
Rajput appealed to the government to initiate emergency consultations to support industry and trade, formulate a long-term and sustainable policy framework, and take decisions that ensure continuity of industrial operations and promote exports.
He strongly urged the government to introduce policies that support export growth, stabilize investment, and contribute to overall economic development, emphasizing that sustainable economic recovery is not possible without facilitating the export sector.
Copyright media, 2026
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