Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hails reduction in Sindh Infrastructure Development Cess

Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on Monday, welcomed the Sindh government’s decision to reduce the infrastructure development cess, terming it a historic breakthrough expected to reduce the cost of doing business by hundreds of millions of dollars annually

KARACHI, (UrduPoint / Pakistan Point News - 16th Feb, 2026) Federation of Pakistan Chambers of Commerce and Industry (FPCCI), on Monday, welcomed the Sindh government’s decision to reduce the infrastructure development cess, terming it a historic breakthrough expected to reduce the cost of doing business by hundreds of millions of Dollars annually.

President FPCCI Atif Ikram Sheikh, SVP Saquib Fayyaz Magoon, Vice presidents Abdul Mohamin Khan and Asif Sakhi, addressing a press conference here, lauded the provincial government for lowering the cess from the existing 1.85 per cent to a bracket of 0.80% to 0.85%.

The FPCCI leadership noted that the business community had been struggling with this issue for the past 20 years and the resolution marks a significant relief for trade and industry. They expressed hope that the Sindh government would continue to support the industrial sector with similar business-friendly initiatives in the future.

Atif Ikram Sheikh further highlighted that the infrastructure cess on the Export Facilitation Scheme (EFS) has been completely abolished, fulfilling a major demand of exporters. The FPCCI’s prolonged struggle has finally borne fruit, providing much-needed fiscal space to the trading community, he added.

Elaborating on the financial implications, Saquib Fayyaz Magoon disclosed that approximately Rs350 billion related to the Sindh Infrastructure Development Cess were currently tied up in court cases.

Under the new arrangement, traders who withdraw their cases will be offered a structured payment plan.

Saquib Fayyaz Magoon elaborated upon relief for withdrawal of cases and informed that traders will be required to pay 15% of the outstanding amount by July 31, 2026, another 15% by October 31, 2026, and a further 15% by July 31, 2027. He noted that the reduction in the cess by one per cent would significantly ease the liquidity burden on importers.

Abdul Mohamin Khan expressed gratitude to the Sindh government and also detailed the long-term settlement plan for the backlog. He stated that after the initial 45% payment has been made over the next year and a half, the remaining 55% of the outstanding cess will be payable over 12 years, spanning from 2028 to 2040. This measure will not only cut costs but will also expedite the clearance process at ports, he observed.

Asif Sakhi clarified the differential rates applicable under the new regime and stated that for traders with pending court cases who opt for the settlement, the new cess rate will be 0.85%, while for those without litigation, the rate will be fixed at 0.80%.