As traders across Pakistan prepare for a nationwide wheel-jam strike on July 19, Federal Finance Minister Muhammad Aurangzeb has extended an invitation for dialogue, urging business leaders to come to Islamabad to discuss their concerns.

Speaking at the Overseas Investors Chamber of Commerce in Karachi, Aurangzeb emphasized the government’s willingness to engage constructively with the business community. “We are ready to sit down and explain the government’s position in detail,” he stated.

Government Defends Tax Enforcement Reforms

A major point of contention is the recent expansion of the Federal Board of Revenue’s (FBR) authority. Traders and chambers of commerce have voiced alarm over what they perceive as overreach and arbitrary enforcement under Section 37A of the Finance Act FY26. In response, Aurangzeb clarified that the enhanced powers are not related to income tax but are strictly aimed at curbing large-scale sales tax fraud exceeding Rs50 million.

“These provisions were passed through parliamentary consultation and are meant to target fraudsters, not honest businesses,” the minister said, dismissing what he described as “propaganda” around the FBR’s new enforcement tools.

A key meeting with presidents of various chambers is scheduled for tomorrow, during which the government hopes to further explain the legislative rationale and ease tensions.

Economic Outlook Improving, Minister Claims

Aurangzeb also pointed to signs of economic recovery, noting improved liquidity in commercial banks and positive trends in agriculture and small and medium enterprise (SME) financing. “We’ve already offered maximum relief to the salaried class within our fiscal limits,” he said.

The finance minister urged banks to expand lending to the private sector, especially SMEs, and encouraged collaboration with investors to help revive struggling industrial units. He also discussed ongoing coordination with the State Bank of Pakistan and the heads of major banks to support economic stability.

Business Community Pushes Back

Despite these reassurances, business leaders remain firm in their decision to strike. The Karachi Chamber of Commerce and Industry (KCCI), along with other major chambers, announced the July 19 shutdown in protest against the Finance Act’s provisions and newly proposed provincial labour policies.

KCCI President Muhammad Jawed Bilwani said the decision followed widespread consultations with trade associations and stakeholders concerned about increasing regulatory pressure and economic uncertainty.

The Lahore Chamber of Commerce and Industry (LCCI) also confirmed its participation in the strike, citing opposition to the new tax provisions and Punjab’s labour reforms, which they claim could stifle business growth and increase operational burdens.

Monitoring Prices, Cutting Spending

In addition to addressing tax and fiscal concerns, Aurangzeb said the government is monitoring essential food prices monthly and has already taken steps to reduce non-essential public expenditures. He also highlighted the strong performance of Pakistan’s pharmaceutical sector as a positive indicator of industrial resilience.

A Call for Dialogue Amid Disruption

With tensions rising ahead of the planned strike, Aurangzeb reiterated the government’s preference for dialogue over confrontation. “We want to resolve these issues through consultation, not conflict,” he said, inviting trader representatives to the capital for face-to-face discussions.

Whether this outreach can prevent the looming shutdown remains to be seen, but both sides appear poised for a critical round of negotiations that could shape the business climate for months to come.