The President of the All Pakistan Sarafa Gems and Jewelers Association, Qasim Shikarpuri, has launched a sharp critique of the government’s recent economic measures, describing them as a “fresh assault” on the already struggling business sector. His condemnation focuses particularly on the inclusion of jewelers under new anti-money laundering regulations.
Shikarpuri voiced strong objections to the classification of jewelers as Designated Non-Financial Businesses and Professions (DNFBPs) in the recently introduced Tax Laws (Amendment) Ordinance 2025. This move brings jewelers under enhanced scrutiny and compliance requirements related to anti-money laundering efforts.
DNFBP Classification Called Unfair and Misleading
According to Shikarpuri, placing jewelers in the DNFBP category is unjust and appears to be a targeted action against small and medium-sized traders. He vehemently rejected the notion that jewelers are involved in money laundering, stating that the link is misleading and harmful to their reputation. “People involved in money laundering don’t buy jewelry,” he asserted, explaining that those engaged in illegal transfers avoid jewelry because reselling it typically results in a significant loss of 20 to 25 percent of its value. He argued that no individual involved in illicit financial activities would willingly accept such a loss.
Shikarpuri highlighted the severe financial difficulties already faced by the business sector in Pakistan, including jewelers, citing high inflation and reduced consumer spending power. He lamented that instead of providing support, the government is increasing pressure and treating honest traders as if they were criminals. He contrasted this approach with the apparent ability of wealthy individuals and powerful groups to avoid taxation, while the Federal Board of Revenue (FBR) reportedly continues to focus on those who are already tax-compliant.
Accusations of FBR Corruption
Further criticizing the government’s approach, Shikarpuri accused the FBR of widespread corruption, specifically highlighting the misuse of Point of Sale (POS) systems. He alleged that POS devices have become tools for demanding monthly bribes. He warned that granting more authority to FBR field officers would inevitably lead to increased corruption and create new avenues for the elite and officials to solicit illegal payments, exacerbating the challenges faced by small traders, including jewelers.
Call for Policy Reversal and Consultation
Shikarpuri urged the government to cease making the business community bear the brunt of its alleged mismanagement. He described the current tax policy targeting traders and jewelers as “deeply concerning” and contrary to their interests. The Association plans to continue its protest through legal and democratic channels. He demanded that the government immediately reverse the actions taken against jewelers and engage in consultations with stakeholders before implementing such potentially damaging measures.