Karachi: The Sindh government has decided to reduce the infrastructure development cess (IDC) to 0.80–0.85 per cent from the existing 1.85 per cent, accepting a long-standing demand of the business community that had remained unresolved for nearly two decades.
The decision was announced by office-bearers of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during a press conference on Monday, where they termed the move a major relief for traders, importers, and exporters operating in the province.
FPCCI President Atif Ikram Sheikh described the reduction as a “historic breakthrough,” saying it would significantly lower the cost of doing business and improve Pakistan’s trade competitiveness. He added that the infrastructure development cess on the Export Facilitation Scheme (EFS) had been completely abolished, fulfilling a critical demand of exporters.
According to FPCCI officials, the decision is expected to ease liquidity pressures on businesses, particularly importers, by reducing upfront costs at ports. Senior Vice-President Saquib Fayyaz Magoon said that approximately Rs350 billion linked to the Sindh IDC was currently tied up in litigation. Under the newly announced arrangement, traders who withdraw their court cases will be eligible for a structured payment plan to clear outstanding liabilities.
As per the settlement framework, 15 per cent of the disputed amount will be payable by July 31, another 15 per cent by October 31, and a further 15 per cent by July 31, 2027. The remaining balance will be spread over a longer period.
FPCCI Vice-President and Regional Chairman Sindh Abdul Mohamin Khan said that after an initial payment of 45 per cent, the remaining 55 per cent of the outstanding cess would be payable over a 12-year period from 2028 to 2040. He noted that the move would not only reduce costs but also help speed up port clearance and ease operational bottlenecks.
Another FPCCI Vice-President, Asif Sakhi, clarified that the revised cess rate would be 0.85 per cent for traders with pending court cases who opt for the settlement, while those without litigation would be charged 0.80 per cent.
Business leaders said the reduction in IDC marks a significant policy shift by the Sindh government and is expected to restore confidence among traders, encourage compliance, and improve overall economic activity in the province.
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