Pakistan’s top business associations have objected to key provisions in the Finance Bill 2025, specifically targeting the proposed minimum wage increase and enhanced enforcement powers for the Federal Board of Revenue (FBR). They warn that these changes could drive operational costs higher, spark inflation, and encourage the growth of the informal sector.

Representatives from prominent chambers, including the FPCCI, PBC, and KCCI, highlight that sudden wage hikes will significantly raise payroll expenses for manufacturers and service providers. Businesses suggest the government collaborate with them to plan incremental adjustments instead of abrupt policy changes.

The expanded authority granted to FBR—including stepped-up audit capabilities, collection tools, and digital reporting mandates—was flagged as a potential threat to business competitiveness. Associations stressed that increased regulatory enforcement must be accompanied by improved ease of doing business to avoid stifling private sector growth.

Together, these stakeholders are calling for a balanced approach—one that eases compliance challenges, includes stakeholder input on wage policy, and ensures that any tax authority expansions do not deter growth or fuel informal economic activity.