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Category: Trade & Industry

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  • Reducing foreign currency cash carrying limits to half criticized

    Reducing foreign currency cash carrying limits to half criticized

    KARACHI: Syed Usman Ali Chairman Towel Manufactures Association (TMA) of Pakistan has strongly criticized the State Bank of Pakistan (SBP) for reducing cash carrying limits of foreign currency for international travel.

    While expressing deep concern over decreasing of limit of foreign currency as Travelling Cash, urged the State Bank of Pakistan (SBP) to enhance the limit to US$. 15,000/- per visit and US$ 90,000/- Annually.

    The State Bank of Pakistan (SBP) had halved the cash-carrying limits on foreign currency for international travel to $5,000 from $10,000 per visit.

    In a letter to the Governor of State Bank of Pakistan, Chairman TMA pointed out that revised limits for travelers will provide huge distress to the Business Professionals especially the Exporters, those who were visiting abroad to bring Foreign Exchange into the country.

    These Business Professionals/ Exporters usually stay in Hotels of various cities through extensive travelling to bring export contracts in Pakistan which is not possible through this short limit of foreign currencies.

    “In view of the support of the Business Professionals/ Exporters, Chairman TMA requested the Governor State Bank to enhance the limit to US$. 15,000/- per visit and US$ 90,000/- Annually (Equivalent Foreign Exchange) rather than decreasing in travelling cash to distress them.”

    Syed Usman Ali also requested the Ministry of Finance and Prime Minister of Pakistan to take immediate action and facilitate the business community in strengthening the trade and economy of Pakistan.

  • KATI suggests Pakistan, Sri Lanka trade in local currency

    KATI suggests Pakistan, Sri Lanka trade in local currency

    KARACHI: Korangi Association of Trade and Industry (KATI) Monday suggested Pakistan and Sri Lanka should trade in local currency to ease pressure of exchange rate.

    KATI President Faraz-ur-Rehman said that both countries can avoid foreign exchange pressure by trading in local currency. Trade delegations should be formed to increase trade. In this regard, cooperation between the businessmen of the two countries is much needed.

    READ MORE: No tax amnesty, no tax rate cut under IMF program: FBR chief

    He presented this suggestion during a meeting with Consul General of Sri Lanka Jagath Abeywarna who visited KATI.

    Consul General of Sri Lanka Jagath Abeywarna has said that the promotion of trade between Pakistan and Sri Lanka in the textile, leather and pharmaceutical sector is possible. Sri Lanka’s buyers can import goods from Pakistan instead of Europe will be more beneficial.

    READ MORE: FBR may withdraw condition of invoice, packing list in containers

    Similarly, Pakistan can avoid additional shipping costs by importing products including tea from Sri Lanka.

    Sri Lankan Consul General Jagath Abeywarna further said that the trade between SAARC countries is only 5 percent which needs to be further increased. He said that the time to import products from Sri Lanka is 4 days which could benefit both countries.

    Consul General Jagath Abeywarna has said that the bilateral relations between Sri Lanka and Pakistan are very friendly and are expected to become stronger in the coming days. The two countries are also enjoying excellent trade and diplomatic relations, but joint efforts are needed to promote bilateral trade. Consul General said that the combined trade volume is 400 million dollars, out of which Pakistan exports 300 million dollars to Sri Lanka and 100 million dollars from Sri Lanka to Pakistan.

    READ MORE: Customs Enforcement announces auction of vehicles on Nov 09, 2022

    He said that Sri Lanka’s major export items are tea and coconut which it exports to various countries and these items were exported to Pakistan worth 11 million dollars in 2021 while the income from the tourism sector is 3 million dollars.

    Faraz-ur-Rehman said that Pakistan is the second largest trading partner of Sri Lanka among the SAARC countries. President KATI said that Pakistani products, especially pharmaceuticals, textiles and leather, have a wide scope in the Sri Lankan market. Likewise, there are opportunities for trade in Sri Lankan tea, tiles, etc. Joint efforts should be made for bilateral trade of goods which will increase trade volume. Faraz-ur-Rehman said that the exchange of trade delegations between the two countries should be increased. KATI will fully cooperate in this regard.

    READ MORE: FBR auctions confiscated immovable properties on Nov 15, 2022

    KITE Limited CEO Zubair Chhaya said that both countries are going through a difficult period due to the global economic and political crisis. Pakistan and Sri Lanka are facing historic trade deficits and foreign exchange shortages. He said that the joint efforts of both countries to promote trade are the only development solution. In this regard, holding business-to-business meetings is very important.

  • No tax amnesty, no tax rate cut under IMF program: FBR chief

    No tax amnesty, no tax rate cut under IMF program: FBR chief

    KARACHI: The chairman of Federal Board of Revenue (FBR) Asim Ahmad on Saturday said that under ongoing program of the International Monetary Fund (IMF) the government committed for not granting any tax amnesty scheme and no tax rate cut.

    FBR chief was talking to business community at the Federation of Chamber of Commerce and Industry (FPCCI) during his visit to the Federation House.

    READ MORE: FBR may withdraw condition of invoice, packing list in containers

    He said that the government had agreed with the IMF for neither allow any tax amnesty nor allow tax rate cut under the loan program. “Therefore, all the stakeholders have to work together on the policy,” he added.

    The chairman admitted that under imports under Chapter 84 and 85 of Customs Act, 1990 was problem not only for the business community but it was also for the tax authorities as well. “Hopefully this issue will be resolved very soon,” he assured the business community.

    READ MORE: Customs Enforcement announces auction of vehicles on Nov 09, 2022

    Asim Ahmed said that FBR never wanted to stop the clearance of parts and machinery. “Because industrial activity ensures revenue collection for the country,” he added.

    The chairman said that tax officials were in touch with the business community to resolve the issues.

    He said that tax reform commission had started its work soon after Ishaq Dar assumed as the finance minister. The chairman also informed that the tax audit would be conducted once in four year.

    READ MORE: FBR auctions confiscated immovable properties on Nov 15, 2022

    The chairman said that the retailer and wholesaler sectors were not filing income tax returns, which was main hindrance in identifying true income. He said by enforcing the relevant tax laws on retail sector there was revenue potential of Rs20 billion. In contrast the tax authorities were able to collect only Rs6 billion from this sector.

    READ MORE: FBR issues circular to relax income tax return filing deadline

    On the occasion, Suleman Chawla, senior Vice President of the FPCCI said that business community was uncomfortable on the issues of return filing and selection of audit. These issues should be resolved on priority.

  • FBR may withdraw condition of invoice, packing list in containers

    FBR may withdraw condition of invoice, packing list in containers

    KARACHI: Federal Board of Revenue (FBR) may withdraw the mandatory condition of invoice and packing list in containers for subsequent examination and customs clearance.

    Asim Ahmad, chairman, Federal Board of Revenue (FBR) during his visit to Karachi Chamber of Commerce and Industry (KCCI) on Saturday responding on the issue of placement of invoice and packing list in containers of import cargo.

    The FBR Chairman, while totally agreeing to the business community, stated that FBR was well aware of this issue and has carried out an extensive exercise to understand it in light of global practices and found business community’s concerns valid. “The FBR was looking into to the possibility of withdrawing this condition,” according a statement issue by the KCCI quoting the FBR chairman as saying.

    READ MORE: Customs Enforcement announces auction of vehicles on Nov 09, 2022

    Regarding customs valuation, he said that the entire process of valuation was being revamped which will be following the international market-based concept and the relevant law, in this regard, has already been amended.

    Several international publications were regularly posting prices of different types yarns from several origins/ countries which will be electronically linked with the revamped Valuation System wherein valuations will be regularly according to current international yarn prices, he added while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry on Saturday.

    Chairman FBR, while referring to concerns expressed over unnecessary/illegal raids, assured to discuss the issue with DG Customs Intelligence and advised the members of business community to bring all such cases of unjustified raids to FBR’s notice so that action could accordingly be taken. A circular was also issued on 19th October wherein all FBR Field Formations have strictly been advised not to conduct raids.

    Commenting on issues emerging due to exemptions on import of black tea for FATA, PATA and Azad Kashmir, Asim Ahmed agreed that the exemptions were being misused but these exemptions will be ending on June 30, 2023. FBR devised a mechanism last year wherein, quota was fixed for these areas according to their production capacity. “It is now the stakeholders who should tell the FBR whether the situation has improved or not.” In response, the relevant importers informed that it was the other way around as imports have risen in these areas.

    READ MORE: FBR auctions confiscated immovable properties on Nov 15, 2022

    Touching upon the issue of placement of invoice and packing list in containers of import cargo, Chairman FBR, while totally agreeing to Chairman BMG’s remarks, stated that FBR was well aware of this issue and has carried out an extensive exercise to understand it in light of global practices and found business community’s concerns valid therefore, the FBR was looking into to the possibility of withdrawing this condition.

    He further mentioned that withholding tax on inward remittances of indenters’ commission has been reduced from 5 percent to 1 percent in this year’s budget while the 13 percent Sales Tax being paid to the provincial exchequer will be discussed with Sindh Revenue Board.

    The chairman said that some delays in release of refund claims was occurring but a tranche has recently been released on 2nd November. The business community should carefully submit refund claims as many refund claims get delayed if marked deferred by the system.

    “FASTER system has been working smoothly yet if anyone faces delays in receiving refunds, they can seek assistance from FBR”, he added.

    He also advised all the Chief Commissioners to maintain complete coordination and liaison with the Karachi Chamber so that the grievances being faced by the business community in getting their taxation issues resolved could be minimized. He also promised to resolve the issues being faced by yarn trader period who are not allowed to claim refunds before 14 months while the 7.5 percent difference in duties/ taxes between the commercial and industrial importers of polyester yarn will also be reduced.

    Chairman Businessmen Group Zubair Motiwala, Vice Chairman BMG Jawed Bilwani, President KCCI Muhammed Tariq Yousuf, Senior Vice President Touseef Ahmed, Vice President Muhammad Haris Agar, Former Presidents Younus Muhammad Bashir, Iftikhar Ahmed Vohra and Muhammad Idrees, Former President Vice President Muhammad Ibrahim Kasumbi, President Site Association of Industry Riaz Uddin, Member Customs-Operations FBR Mukarram Jha Ansari, Chief Commissioner Dr. Aftab Imam and KCCI Managing Committee along with Senior FBR Officials were also present at the meeting.

    READ MORE: FBR issues circular to relax income tax return filing deadline

    Chairman BMG Zubair Motiwala, in his remarks, highly appreciated the present team of FBR for its extraordinary efforts in dealing with the FATF issue that resulted in Pakistan’s exit from the grey list. He said, “Things are moving in the positive direction as far as FBR is concerned but there are some issues which have remained chronic since so many years and these were not being addressed by the FBR. All these issues, which are hardly 4 to 5 in numbers, having no major impact on revenue should be resolved at the earliest so that the businesses as well as the economy starts performing.”

    He said that the Chapter 84 and 85 have brought the entire work to a complete halt and it was a matter of grave concerns that around 7,000 applications were in KCCI’s possession which have been lying pending only due to delays in approval from the State Bank of Pakistan. Stopping imports of essential raw materials, spare parts and even solar panels was not making any sense which have to be allowed so that the industrial wheels keep on spinning without any interruption.

    Zubair Motiwala was of the view that around US$3 to US$4 billion remain parked abroad which people simply don’t want to remit to Pakistan because of the exorbitant taxes on indenting commission hence, these taxes should be waived so that the desperately needed foreign reserves could be brought to Pakistan.

    Appreciating FBR’s move to revamp the valuation system, Zubair Motiwala advised to expedite the process with a view to provide some relief to the business community. “As the country faces severe energy crises, the import of solar panels has to be allowed without any hindrances which would be a great service to this nation”, he said, adding that around 650 vehicles which have already been imported and were lying at the ports must also be cleared by lowering the recently imposed 100 percent extra duty at the earliest.

    On the occasion, Vice Chairman BMG Jawed Bilwani stated that the FASTER system for refund claims was working absolutely fine after its launch but the business community has now been facing a lot of issues in getting their refund claims issued on time which often creates liquidity problem and needs to be addressed. “As per law, all refund claims must be processed within 72 hours so that the business community could not face any liquidity issues.”

    READ MORE: Withholding tax rates on immovable property transactions during 2022-2023

    President KCCI Tariq Yousuf, while welcoming Chairman FBR, pointed out that Karachi’s share in GDP was around $165 billion, which was 43 percent of Pakistan’s national economic size & was projected to hit $193 billion in 2025. “Karachi’s role in Pakistan’s economic growth has been phenomenal & is growing at a tremendous pace. However, the ongoing economic issues, high cost of doing business & taxation matters have been affecting the productive capacity of the private sector whose competitiveness has been deteriorating”, he added.

    He was of the view that the high amount of tax cost for businesses, particularly the SMEs should be a matter of great concern for policymakers as this has been affecting Pakistan’s growth potential.

    While appreciating Chairman BMG Zubair Motiwala for his remarkable job as Chairman of the Anomaly Committee for Business, he said that out of various recommendations agreed by the then finance minister and Chairman FBR along with his team, many issues were still pending which need to urgently resolved with a view to create an enabling environment for sustainable economic growth.

  • Connecting Pakistan, Iran customs stressed to resolve trade issues

    Connecting Pakistan, Iran customs stressed to resolve trade issues

    KARACHI: Customs authorities of Pakistan and Iran should be connected for improving bilateral trade between the two neighboring countries.

    Consul General Hassan Nourian, Consul General of Iran said there were two issues impeding trade i.e. banking channel transactions and second one is absence of proper bilateral trade regime between the two countries.

    Regarding barter trade, he suggested developing an active linkage to resolve two countries’ two customs related issues by connecting customs of two countries.

    READ MORE: Karachi Chamber welcomes Dar’s decisions

    On the IPI & TAPI gas pipeline, he said that India is no longer part of the project and finally Iran and Pakistan need to proceed with the project.

    He said that it is our second visit to SITE Association of Industry, and informed that during this visit of delegation, three MoUs have been signed. In the month of January 2023, Iran Single Country Exhibition is being organized at Karachi Expo Centre, and proposed that a similar exhibition may also be organized by Pakistan in Tehran, Mashhad or Isfahan.

    A businessmen delegation from Islamic Republic of Iran visited SITE Association of Industry, and met President Riaz Uddin, office bearers and Executive Committee members to discuss the matters of enhancement of bilateral trade relations between the two brotherly countries.

    READ MORE: Pakistan business confidence index drops to lowest level

    The delegation was headed by Yaganeh Fard, President Chamber of Commerce Zanjan. Consul General of Islamic Republic of Iran H.E Hassan Nourian, Commercial Attaché Hossein Amini were also present in the meeting. Riaz Uddin, President, SITE Association of Industry, Abdul Kadir Bilwani SVP SITE Association, VP Muhammad Hussain Moosani, Former President Abdul Rasheed and Abdul Hadi, Muhammad Kamran Arbi, Anwer Aziz, Azeem Motiwala, Haris Shakoor, Imran Ghani and others were also present in the meeting. Iranian Businessmen delegation visited a renowned Textile unit to see the manufacturing process.

    Leader of the Iranian Businessman delegation Yaganeh Fard, President Chamber of Commerce Zanjan, on this occasion said that Pakistan and Iran have many things in common including trade, but the trade volume is much below the abilities and potential of the two countries.

    The businessmen and products of the two countries should be introduced to each other and for this purpose, travelling and participation in exhibitions are important.

    READ MORE: Furniture retailers want fixed tax regime

    “Trade is a two-way road we can engage ourselves through partnership, joint investments and production. He added that Iran is facing difficulties due to US sanctions imposed and barter trade is a welcoming sign amid such sanctions. The target of $5 billion trade volume per annum has been set.”

    Riaz Uddin, President, SITE Association of Industry welcomed & thanked the valued guests from Iran and thanked the Consul General for making efforts to promote business ties between the two countries. He said that Iran was the first country to recognize Pakistan at the time of its birth. In reciprocation Pakistan was amongst the first countries who recognized Islamic Revolution of Iran.

    READ MORE: APTMA demands immediate release of textile machinery

    “Trade volume is extremely low as we are unable to avail the opportunities available in the brotherly country Iran. Pakistan needs basic commodities like oil gas petrochemical products, particularly Gas which is badly needed by industries and Iran has abundance of gas”, he said, adding that there has been development for barter trade with Iran but there is need to expand its operations to entire Pakistan and remove legislative barriers.

  • Karachi Chamber welcomes Dar’s decisions

    Karachi Chamber welcomes Dar’s decisions

    Karachi Chamber of Commerce and Industry (KCCI) on Tuesday welcomed the decisions of Finance Minister Ishaq Dar regarding keeping oil prices unchanged, extending return filing date and enhancing threshold for payments of letter of credit.

    KCCI President Mohammed Tariq Yousuf appreciated Finance Minister Ishaq Dar’s announcement to keep petroleum prices intact and extent last date for filing Income Tax Return till November 30, 2022.

    READ MORE: KCCI demands one month date extension for return filing

    He said that the business community warmly welcomed these announcements and the determination being exhibited by government to pay special attention to the issues and recommendations being given the business & industrial community.

    Yousuf said that the Finance Minister’s decision to raise the LCs limit from $50,000 to $100,000 was undoubtedly a pro-business move which was being demanded by the Karachi Chamber since long.

    READ MORE: Furniture retailers want fixed tax regime

    “This would help in expediting 8,000 cases of suspended Letters of Credit (LCs) and we are delighted to see that the State Bank has been directed to start clearing this LCs from today,” he added.

    He was of the opinion that the government was trying its best to provide relief to the business and industrial community despite facing severe economic challenges.

    READ MORE: KCCI advises importers to manufacture motorcycle spare parts

    Thanks to the sincere efforts being made by Finance Minister, Pakistani rupee had one of the strongest performances in Asia in October, rising by 3.3 percent against the dollar. “Effective strategies have to be defined and implemented to bring down dollar below Rs200 level which would provide a huge relief to our economy which is overburdened with foreign debts.”

    He further suggested that Fuel Adjustment Surcharge being charged from the industry needs to be rescinded as the same was creating issues for the General Industry and SMEs who were the backbone of country’s economy and need to be protected.

    READ MORE: Karachi Chamber urges allowing imports from India

  • Pakistan business confidence index drops to lowest level

    Pakistan business confidence index drops to lowest level

    KARACHI: A survey conducted by Gallup Pakistan revealed that business index has dropped to the lowest level due to political and economic uncertainties.

    According to Gallup Pakistan survey conducted in the last quarter of 2022 for the Gallup Business Confidence Index, 65 per cent of business owners believe their businesses are facing bad conditions.

    Industrial machines businesses are doing the best out of all types of businesses, with 75 per cent of them believing that conditions are good. Cloth and garment shops are experiencing the worst level of confidence, with 81 per cent of them saying business conditions are bad.

    Findings of the survey show the Net Future Business Confidence score has worsened by 50 per cent since the beginning of 2022 and is now at -10 per cent.

    Compared to earlier this year, the number of businesses saying the country is headed in the wrong direction has gone up by 32 per cent.

    Less than 15pc of businesses in Punjab, Sindh and Khyber-Pakhtunkhwa believe that the country is headed in the right direction.

    A quarter of businesses in Balochistan believe the same.

    Similar to the findings of the survey conducted in the first quarter of 2022, inflation remains the most-cited problem that businesses would like the government to solve by the end of this year.

    As many as 72 per cent of the businesses surveyed reported experiencing loadshedding every day.

    A considerable increase in the number of businesses experiencing loadshedding was witnessed in the fourth quarter. About 19 per cent of the businesses that reported facing loadshedding within a day experienced it for two hours, the survey showed.

    As many as 81 per cent of the businesses said they do not believe the court system is fair, impartial and uncorrupted versus 7 per cent in the first quarter of 2022. More businesses from Balochistan disagree with the idea that the court system is fair, impartial and uncorrupted than any other province, survey results showed.

    One-quarter of the businesses surveyed reported their establishment was visited by tax officials, down 12 per cent from the previous survey.

    A sample of more than 700 business owners and managers across Pakistan were asked how well their businesses were doing. After Covid-19 peaked, businesses started to express greater confidence. But this confidence plummeted between the beginning and the end of 2022.

    “This sudden change, and a 63 per cent fall in the Current Business Situation score, may be due to the continuous political instability over the year,” it said.

    The survey asked business owners which problems were affecting their businesses considerably. Besides inflation, “customer shortage” was a problem that 8 per cent of them faced. High taxes were also perceived as a problem by 4 per cent of businesses.

    “Gallup Business Confidence Report for the fourth quarter of 2022 paints a bleak picture. The index values are the worst since Gallup started the project in 2019, which includes Covid-19 times,” said Bilal Ijaz Gilani, executive director of the Gallup Pakistan and chief architect of the Gallup Pakistan Business Confidence Index.

    “The report comes after Pakistan faced the worst floods in decades. The business community awaits strong and decisive steps by the government,” he added.

  • KCCI demands one month date extension for return filing

    KCCI demands one month date extension for return filing

    The Karachi Chamber of Commerce and Industry (KCCI) has called upon the Federal Board of Revenue (FBR) to extend the deadline for filing income tax returns, citing economic crises and political instability as the primary reasons for the request.

    (more…)
  • Furniture retailers want fixed tax regime

    Furniture retailers want fixed tax regime

    KARACHI: Pakistan Furniture Association (PFA) has demanded fixed tax regime for their retail outlets. In this regard the association on Monday asked the Karachi Chamber of Commerce and Industry (KCCI) to raise the issue at higher platform.

    Senior Vice Chairman Pakistan Furniture Association (PFA) Rana Waheed Murad, while referring to several discussions and a meeting held on June 22 with the then Finance Minister Miftah Ismail and Chairman Federal Board of Revenue (FBR), stated that it was principally agreed in the said meeting that the furniture retailers will be brought into fixed tax regime but unfortunately, the agreement reached stands unimplemented to date hence, the Karachi Chamber must take up this serious issue with relevant authorities so that furniture shopkeepers could be pulled out of Tier-I retailers category and subjected to fixed tax.

    READ MORE: KCCI advises importers to manufacture motorcycle spare parts

    Rana Waheed, who led a PFA delegation to KCCI, appreciated Chairman Zubair Motiwala, who, as Chairman of the Anomaly Committee formed by the government after this year’s Federal Budget announcement, effectively advocated PFA’s valid demand and also succeeded in convincing the policymakers to provide relief which was agreed but remains unimplemented.

    The situation has crated a lot of problems for businessmen associated with furniture sector who were widely being harassed by FBR officials through unwarranted notices.

    READ MORE: KCCI managing committee candidates elected unopposed

    President KCCI Muhammad Tariq Yousuf, Vice President Muhammad Haris Agar, Chairman Special Committee for Small Traders Majeed Memon along with KCCI Managing Committee Members and PFA delegation members attended the meeting.

    Senior Vice Chairman PFA was of the opinion that furniture industry has great potential to grow and boost exports of the country to US$ 1 billion but placing furniture retailers in Tier-1 category for Sales tax collection has created lot of difficulties for this sector that was terribly affecting business activities.

    “We are capable of competing with Turkey, Vietnam and China etc. but will not be able to do so if our issues stand unresolved,” he added and stressed that furniture retailers must be brought under fixed tax regime which would increase the tax revenue for the country and reduce problems being faced by furniture retailers.

    READ MORE: APTMA demands immediate release of textile machinery

    He also drew KCCI’s attention towards another serious issue as all the imported wood consignments have now been subjected to seeking clearance/ certification from Department of Plant Protection (DPP) which creates a lot of problems in clearing this essential raw material. “We are being asked to get the wood crust removed before shipping as it might carry bacteria but it was technically impossible as without this crust, the wood becomes drier and totally useless within a couple of months,” he explained, adding that furniture sector has witnessed strong growth in exports but it would not last long and start descending soon if such anti-business measures were not promptly reverted.

    Rana Waheed, while congratulating the newly elected Office Bearers, hoped that the new team at KCCI would prioritize the issues being faced by furniture shopkeepers and make all out efforts to get them amicably resolved so that this important industry could be saved from getting into further disaster.

    READ MORE: Date extension demanded for electricity bills payment

    President KCCI Tariq Yousuf, after listening to the grievances being faced by PFA members, assured to take up their Tier-I retailers’ issue and request the government to fulfill its commitment made to the perturbed businessmen from furniture sector.

    He advised PFA delegates to also bring any other Customs related or Law & Order related issues to KCCI’s notice so that its relevant subcommittees could promptly get them resolved with a view to minimize the hardships being faced by manufacturers, sellers and exporters of furniture.

  • KCCI advises importers to manufacture motorcycle spare parts

    KCCI advises importers to manufacture motorcycle spare parts

    Karachi Chamber of Commerce and Industry (KCCI) has advised importers of motorcycle spare parts to set up industry for manufacturing locally.

    KCCI President Mohammad Tariq Yousuf advised the importers of motorcycle spare parts to go for setting up their own cottage industries for manufacturing various spare parts which were currently being imported as it was no more feasible to import these parts because of uncertain situation triggered by unstoppable currency fluctuation.

    READ MORE: KCCI managing committee candidates elected unopposed

    Exchanging views with a delegation of All Pakistan Motorcycle Spare Parts Importers and Dealers Association (MSPIDA) which was led by its Chairman Nasir Maqbool during visit to KCCI, Tariq Yousuf stressed that setting up small industries for manufacturing spare parts was the only solution to most of the problems being faced by traders including exorbitant customs duty, delays in clearance of consignments, heavy demurrage/ detention losses and high cost of imported goods due to rising dollar value.

    “You have to go for import-substitution otherwise, all the issues being faced today would remain as they are in future so you must look into the possibility of becoming independent by setting up small manufacturing units,” he added.

    READ MORE: APTMA demands immediate release of textile machinery

    Senior Vice President KCCI Touseef Ahmed, Vice President KCCI Muhammad Haris Agar, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Former President KCCI Iftikhar Ahmed Vohra, Former Chairman MSPIDA Faisal Khalil, KCCI Managing Committee Members and MSPIDA Members also attended the meeting.

    Tariq Yousuf assured that the Karachi Chamber, being the actual representative of the entire business and industrial community, was well-aware of the issues being faced by shopkeepers due to rising street crimes and has constantly been pushing the Law Enforcing Agencies to take stringent steps so that they could fearlessly carry out their businesses.

    READ MORE: Date extension demanded for electricity bills payment

    “Any MSPIDA member, who faces problems in dealing with any law-and-order issues can easily get in touch with KCCI’s Police Chamber Liaison Committee and Law & Order Subcommittee who are working round-the-clock to help out the perturbed shopkeepers, businessmen as well as the industrialists”, he said.

    Moreover, all MSPIDA members facing delays in clearance of imported goods can also approach KCCI and we will get in touch with the Customs Authorities and the State Bank of Pakistan so that the imported items could be cleared within the earliest possible time which would save importers from suffering grave losses on account of demurrage and detention charges, assured President KCCI.

    He also stressed that the government must look into the possibility of bringing down customs duty of spare parts and rationalize Valuation rulings as these were not supporting the economy but paving way for smuggling and causing losses to the national exchequer.

    READ MORE: Power tariff hike termed disaster for industries

    Earlier, Chairman PASPIDA Nasir Maqbool, in his short remarks, congratulated the newly elected Office Bearers and hoped that the support and cooperation between the two institutions would strengthen further in the days to come and collective efforts will be made for resolving numerous issues particularly the Customs and Valuation issues being faced by the importers of spare parts.

    Speaking on the occasion, Former Chairman PASPIDA, while agreeing with President KCCI’s viewpoint about import-substitution, stated that although many importers of spare parts have established small manufacturing units so that they could locally manufacture various imported items but the raw material required for manufacturing these spare parts has also been blocked under Customs Tariff Section 84 and 85 which needs attention.

    He said that exorbitant customs duty of 35 percent along with 11 percent additional duty, high GST and other levies were having an overall impact of around 90 percent on the cost of imported spare parts of motorcycles, making this important mode of travelling costlier and beyond the reach of poor segment of society.

    “We request KCCI to take up this important issue with relevant policymakers in Islamabad so that the customs duty and other taxes could be drastically reduced which would not only save relevant businesses but also prove favorable for the economy by discouraging widespread smuggling of spare parts”, he added.