Business Community urges PM Shehbaz to repeal unconstitutional clauses in the Finance Bill 2025
ISLAMABAD ( WEB NEWS )
The Business Community has urged Prime Minister Mian Muhammad Shehbaz Sharif to repeal unconstitutional clauses in the Finance Bill 2025.
In an open letter addressed to PM Shehbaz Sharif, the Business Community stated, “It is written to you with deep concern regarding several provisions introduced in the Finance Bill 2025, which, if enacted in their current form, would significantly undermine constitutional protections, erode business confidence, and deter investment at a critical time in Pakistan’s economic recovery.”
“The following clauses in particular have raised alarm across the formal business sector, legal community, and civil society including Section 37AA: Authorizing arrest without warrant on mere suspicion of tax fraud; Section 11E: Enabling tax recovery without investigation, based solely on suspicion; Section 14AE: Permitting seizure of business premises and assets with minimal safeguards; Section 32B: Empowering private auditors with quasi legal enforcement powers; Section 33: Imposing harsh punishments for broadly and vaguely defined “tax fraud”; Section 37B: Allowing detention for up to 14 days without full judicial scrutiny; and Section 58C: Granting access to tax advisers’ offices, breaching client confidentiality,” it stated.
The letter further stated, “These provisions appear to contravene key fundamental rights enshrined in the Constitution of Pakistan including Article 4: Right to be dealt with in accordance with law; Article 9: Security of person; Article 10A: Right to fair trial and due process; Article 14: Inviolability of human dignity and privacy; and Article 18: Freedom to conduct lawful business or profession.”
“The proposed clauses, particularly those permitting arrest, detention, or seizure without due process, risk being misapplied and may incentivize coercive practices. Their adoption would create an environment of fear and uncertainty among legitimate businesses and professionals. Such measures are incompatible with the government’s stated objectives of facilitating formalization, investment, and economic growth,” it stated.
It maintained, “These provisions are in direct repugnance to your own vision of building a business friendly Pakistan, which you have consistently articulated as essential for economic revival, foreign investment, and job creation. Your leadership has been recognized for pursuing pragmatic economic reform. It is in this spirit that we appeal to your office to ensure that these regressive measures are withdrawn and repealed to align with that vision.”
“The Courts of Pakistan have consistently protected citizens against executive overreach, especially where laws infringe upon constitutionally protected liberties. There is significant legal precedent to suggest that these clauses may be declared ultra vires the Constitution if challenged,” it added.
“In light of the above, you are respectfully urged to direct the Ministry of Finance and Federal Board of Revenue to repeal these clauses before the passage of the Finance Bill. Lawful enforcement and accountability mechanisms must be grounded in due process, judicial oversight, and stakeholder engagement,” it stressed.
It concluded, “This moment calls for bold yet balanced governance. I trust your administration will act in the best interest of both the state and the people by ensuring that fiscal reforms respect the Constitution and protect legitimate economic activity.”