“Nationwide strike in Pakistan disrupts business activities as rising taxes and inflation fuel widespread protests. Explore the impact of this major labor action on the economy.“
A nationwide strike has brought business activities to a standstill across Pakistan as traders protest against the government’s recent tax reforms and soaring electricity costs. The strike, which began on Wednesday, has garnered widespread support from various political parties, including Jamaat-e-Islami (JI), Jamiat Ulema-e-Islam Fazl (JUI-F), Pakistan Tehreek-e-Insaf (PTI), and Awami National Party (ANP).
Business Shutdowns Nationwide
In Karachi, the commercial hub of Pakistan, the Anjuman-e-Tajiran Karachi led the charge with a complete shutdown of businesses. Javed Shams, President of the All Pakistan Anjuman-e-Tajiran’s Sindh chapter, criticized the government for its failure to address the concerns of the business community.
“The political leadership has failed us,” Shams declared, expressing his support for the nationwide strike. He emphasized that businesses in all small and large cities of Sindh would remain closed in protest against the government’s policies, particularly the recent hike in taxes and electricity bills. Shams also rejected the “Trader Friendly Scheme” in its current form, arguing that it threatens the livelihoods of the business community and the general public..
The Karachi Electronics Dealers Association (KEDA) also threw its weight behind the strike. KEDA President Mohammad Rizwan warned that if the government does not address their grievances, the strike could be prolonged. “If the issues are not resolved, the duration of the strike may increase,” Rizwan stated, highlighting the severity of the situation.
Atiq Mir, President of the All Karachi Traders Union, described the strike as a collective effort by citizens, not just traders. “The common man is worried about inflation,” Mir said, pointing out that the burden of rising costs is being felt by everyone, not just the business community.
Government Response
In response to the nationwide strike, Rana Ihsaan Afzal Khan, Coordinator to the Prime Minister on Implementation and Monitoring, stated that the government would not be swayed by the pressure tactics of traders. Speaking on Geo News’ “Geo Pakistan,” Khan invited traders to engage in dialogue if they believed the government’s policies were wrong. He noted that Prime Minister Shehbaz Sharif had reorganized the Federal Board of Revenue (FBR) and reiterated the government’s stance that the retail sector must also be brought under the tax net.
Widespread Impact Across Provinces
The impact of the strike was felt across all provinces. In Sindh, cities like Nawabshah, Tando Allahyar, Thatta, and Sajawal saw central commercial areas shut down as traders adhered to the strike call. Waqar Memon, President of the Sindh Traders Association, criticized the government’s policies, describing them as “anti-business” due to the imposition of multiple taxes, including monthly tax, withholding tax, and professional tax.
In Punjab, cities such as Vehari witnessed the closure of all business centers. The Central Traders Association of Pakistan led the strike, with markets on Club Road, Jinnah Road, Luddun Road, Rail Bazaar, Choori Bazar, and Multan Road all closed. The association’s president accused the government of imposing “cruel taxes” on traders, further straining their businesses.
Gujranwala’s markets, including the Cloth Market, Steel Market, and Sanitary Market, as well as those in Satellite Town, remained shut in solidarity with the strike. The city’s mobile phone association also endorsed the call, highlighting the widespread discontent among various business sectors.
In Khyber Pakhtunkhwa, particularly in Peshawar, traders’ organizations observed the strike by shutting down key markets such as Sadar Bazaar, Shafi Market, Qisa Khwani, and Khyber Bazaar. Protest camps were set up in front of closed markets, with trade unions demanding a rollback of increased electricity tariffs and a reduction in tax rates.
Dera Ismail Khan saw a complete shutdown of all commercial centers, following support from the traders’ association, traders’ union, and traders’ action committee. Similarly, in Chichawatani, markets and commercial centers remained closed as traders called for the withdrawal of what they termed “cruel taxes” and demanded lower electricity costs.
Political Endorsement
In addition to traders, the strike has received backing from political entities. Jamaat-e-Islami in Charsadda, for instance, called for a strike, resulting in the closure of food shops and hotels across the area. Earlier this week, the religio-political party had announced a shutter-down strike nationwide to pressure the coalition government into providing relief to the public. Their demands include a reduction in high power tariffs and a review of agreements with Independent Power Producers, who have been blamed for the hefty electricity bills due to capacity payments.
Conclusion
As the strike continues, the government faces mounting pressure from both traders and political parties to address the economic challenges facing the country. With businesses shuttered across Pakistan and the potential for the strike to extend, the situation remains tense, and the government’s next steps will be crucial in determining the outcome of this widespread protest.
