Businesses Under Pressure: Lawmakers Raise Concerns Over FBR’s Role in 2025
The FBR is under criticism once again for causing a hindrance in Pakistan to smoothly operationalize the businesses. These issues were raised during a meeting of National Assembly Standing Committee on Commerce presided over by MNA Jawed Hanif Khan, in which members openly discussed why many MNCs and even local firms either exit from Pakistan or shrink their operations. During the meeting, MNA Shaista Pervaiz Malik strongly criticized the FBR’s working style. She said that excessive checks, notices, and what businesses perceive as “harassment” are discouraging companies from staying in Pakistan. According to her, foreign companies are especially struggling with the repatriation of profits, which damages investor confidence and sends a negative message to global markets.
What the Board of Investment Says
A representative from the Board of Investment (BoI) clarified that, on paper, Pakistan still follows an open investment policy. Most sectors are open to foreign investors, except for a few restricted due to national security or public interest. Other sectors, like banking and airlines, apart from agriculture, include foreign ownership limits, but all in all, the policy framework remains investor-friendly.
However, the BoI also acknowledged that the recent exit or downsizing of MNCs cannot be ignored. Though some decisions indeed can be attributed to global factors like high inflation, increasing interest rates, supply chain changes, and international restructuring, local problems also play a main role.
Real Issues Businesses Face in 2025
Business in Pakistan has still been facing, in 2025, the following:
• Complex and overlapping regulations
• Uncertainty in tax enforcement
• Delays in profit repatriation
• High energy and operating costs
• Frequent interaction with the tax authorities
All these factors put together render business costlier and unpredictable.
Final Thoughts
The deliberation in the National Assembly sends a clear signal that, if Pakistan wants to retain existing investors and attract new ones, there is a dire need to improve the regulatory environment. Experts believe restoration of confidence is very much possible provided FBR plays a more facilitative role, and transparent tax administration with predictable policies gets introduced. In 2025, ease of doing business is not just an option; it is a necessity for the attainment of economic stability and growth.