Shutter-down strike over rising power prices, taxes results in heavy trade losses

ISLAMABAD: The nationwide strike called by the business community on Wednesday in protest against rising electricity bills and the increasing tax burden led to significant trade losses across the country.

The strike, however, presented a mixed impact on industrial activities, with various factors influencing the situation.

In Lahore and Islamabad, several major markets remained closed, reflecting strong support from traders. Industrial bodies also backed the strike, urging the government to renegotiate contracts with independent power producers (IPPs), though they stopped short of committing to a full shutdown of their operations.

The adverse weather conditions, including persistent rain, played a crucial role in disrupting daily activities, particularly in the port city, where many workers were unable to commute due to flooded streets and inadequate public transport.

According to Dawn, Kashif Chaudhry, President of Markazi Tanzeem-i-Tajiraan, estimated that the strike led to daily trade losses amounting to approximately Rs500 billion, largely due to halted transactions across various business sectors. He also noted that while most industrial areas in different cities supported the strike, they did not completely shut down their operations, unlike retail shops and markets.

Despite the widespread disruption, the Overseas Investors Chambers of Commerce and Industry reported minimal impact on their members’ operations, attributing any issues primarily to the rain rather than the strike itself.

Ehsan Malik, CEO of the Pakistan Business Council, echoed this sentiment, suggesting that the strike had a limited effect on the industrial sector. He pointed out that the strike caused inconvenience mainly for low-income daily shoppers, while monthly shoppers would likely continue their purchasing cycles unaffected.

Malik also highlighted that shutter-down strikes challenge the government’s efforts to bring traders into the tax net. He stressed the importance of maintaining a firm stance on broadening the tax base, warning that any leniency could shift the tax burden onto the industrial sector.

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