Prominent voices from Pakistan’s business community have raised alarms over the recently unveiled federal budget, warning that the government’s proposed fiscal measures could drive businesses toward closure and spark widespread protests. The Board of Governors of Economic Policy and Business Development (EPBD), a major private sector advocacy group, has taken a firm stance against the budget’s provisions, particularly those that expand the authority of the Federal Board of Revenue (FBR).

In a strongly worded statement, the EPBD criticized the government’s approach, labeling it “anti-business” and cautioning that the budget does more harm than good by introducing overly aggressive tax enforcement strategies. According to the forum, the expanded powers granted to the FBR are not just excessive but represent a serious threat to the country’s economic stability.

Fears of Overreach by FBR

At the heart of the controversy are a series of legislative changes included in the Finance Bill that, if passed, would give the FBR broad new enforcement capabilities. These include powers to arrest business owners without prior approval, seize assets on suspicion of tax evasion, and unilaterally impose penalties. The EPBD argues that these changes undermine the rule of law, create an atmosphere of fear, and treat legitimate businesses as criminals.

“These measures go far beyond what can be justified for tax compliance,” a spokesperson for the EPBD said. “Instead of promoting transparency and fair tax collection, they risk pushing entrepreneurs out of the formal economy altogether.”

Potential for Shutdowns and Protests

The forum didn’t stop at criticism—it issued a direct warning to the government: roll back the expanded FBR powers, or face the consequences. Members warned that if the budget is passed in its current form, many businesses might be forced to shut down, resulting in mass unemployment, supply chain disruptions, and a significant decline in investor confidence.

Moreover, the EPBD hinted at possible coordinated protests and legal challenges if their demands are not met. “We are prepared to defend our rights through all available democratic means,” the spokesperson said, adding that peaceful protests and industry-wide shutdowns remain on the table.

Broader Economic Concerns

Aside from the FBR issue, the business community also raised red flags about the broader direction of the budget. Stakeholders are concerned about rising operational costs due to increased taxes, limited fiscal incentives for investment, and insufficient relief for key industries.

They argue that the budget fails to provide a roadmap for economic revival or job creation. With inflation already straining purchasing power and interest rates making credit unaffordable, the added burden of compliance with harsh tax policies could further weaken the economy.

Calls for Dialogue and Reform

The EPBD has urged the government to enter into an immediate dialogue with business representatives to revise the budget’s contentious provisions. They’re calling for a more balanced approach—one that strengthens tax collection without crippling the very businesses that sustain the economy.

“We support fair taxation and accountability,” the statement read, “but the way to build a prosperous Pakistan is through partnership, not punishment.”

As the budget continues to be debated in parliament, pressure from the business sector is mounting. Whether the government will amend its proposals or push forward remains to be seen—but the message from the private sector is clear: without change, the cost could be economic instability and deepening public unrest.