Category: Trade & Industry

KARACHI: Perturbed with ongoing political uncertainties following the no-confidence motion moved, the business community urged the treasury and opposition to resolve the issues through talks as unrest creating unstable economic conditions.

Anjum Nisar, chairman, Businessmen Panel (BMP) and former president of Federation of Pakistan Chambers of Commerce and Industry(FPCCI) feared that political climate of the country has become unpredictable due to political uncertainty, reducing the level of investment and affecting the economic growth of the country, suggesting the government as well as the opposition parties to settle issues through talks in parliament, which the right way to resolve the issues.

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He appealed the political leadership to act wisely and show commitment with the country, as the lack of political stability is ruining the trade and economic activities in the country.

The FPCCI former president said that this situation might create unstable economic conditions, generating higher risks, and transforms into low investment while inflation is one of the key sources of uncertainty. The high rate of inflation leaves the nation uncertain about potential investments, he added.

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He said that the financial sector is stable, as the government has continuously been bringing reforms in different sectors. He said that the government has been working on sustainable growth which will boost up to 6% further. He said several reforms had been made in industrialization, housing and agricultural sector.

He said that the country is facing a huge economic loss only because of wrong statements and irrational attitude of political players. He said that a week of stalled economic activity costs the country around $ 500 million and $2 billion per month and poor economy like Pakistan cannot afford even one million dollar loss to exports. He said that at a time when country is facing severe internal and external challenges, the situation is bound to affect the national interests.

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He said that in the past, politics of agitation has caused irreversible loss to the national economy besides tarnishing the soft image of the country. He said that in present scenario, country cannot afford to bear more economical loss. He said that business community is the main stakeholder of the economy and it should not be treated as useless thing.

He said the economy of Pakistan was on the path of sustainable growth due to successful economic policies of the government.

He appreciated the government to make all out efforts for reducing the negative effects of inflation by creating conducive atmosphere for investors, jobs for youth and targeted subsidies.

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He attributed the higher economic growth to rising exports, increasing remittances and improving tax collection that had gone up by 32 percent. However, he also said the economy had to face certain difficulties due to higher commodity prices in the international market. The utilization of electricity had gone up by 13 per cent whereas the corporate profits were also at historic high, he said. The Pakistan economy has continued to recover despite the challenges of the Covid-19 pandemic, but imbalances have widened and risks remain elevated. Timely and consistent implementation of policies and reforms remain essential to lay the ground for stronger and more sustainable growth, he said.

Pakistan can double its traditional exports in next five years and lift exports by providing incentives to the sector and building a strong ecosystem for startups in the country, he said.

He said the government is also focusing on improving productivity by reviving industries and improving the agriculture sector.

He said that China has planned to shift up to 85 million jobs to foreign countries in next 10 years and Pakistan government can request the Chinese leadership to move at least 10 million jobs to Pakistan by relocating its key industrial units to special economic zones in the country, he suggested. He said that China can increase imports from Pakistan that would also improve productivity and generate more opportunities for jobs in the country.

Women entrepreneurs have vowed to continue the struggle for women’s rights, stressing that it is important to provide awareness to women in order to achieve their rights, while also empowering women in various sectors of the economy.

Women entrepreneurs should have maximum opportunities to move forward.

Speaking at an event held at the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) to mark International Women’s Day, Member National Assembly Nusrat Wahid said that PTI government is working hard for women’s rights and Prime Minister Imran Khan’s vision is that women should be given equal opportunities in every field.

Vice Chairman of FPCCI Managing Committee Muhammad Suleman Chawla, Member Managing Committee Shabbir Mansha Churra, Former VP FPCCI and Founder President Karachi Women Chamber of Commerce & Industry District Malir (KWCCI), Nazli Abid Nisar, Zoreed Raza, Hina Tariq, SHO Women and Children Police Station South Zone, Afzala Shaheen, SVP KWCCI, VP Yasmin Arif, Prof. Shaista Afghani, Collector Customs Nauman Batool, Advocate Lubna, Sana Nadeem, Mahesh Ayana, Shamim Dar, Iqra Saqib, Mehreen Elahi, Dr. Ghazala Yasmeen, Shahida Amjad, Afshin Tariq, Shami Khan, Kausar Salmani, Shazia Khan, Mina Batool and a large number of women entrepreneurs participated.

MNA Nusrat Wahid further said that the laws that are being formulated today were announced 14 centuries ago and a study of Surah An-Nisa would give a detailed understanding of the rights of women and even the right of women regarding inheritance.

Earlier Founder President Karachi Women Chamber of Commerce & Industry District Malir, Nazli Abid Nisar, while welcoming the guests, stated that FPCCI is an important platform for highlighting women’s issues and struggle for their rights, and we are also grateful to Hina Mansab Khan, due to which we got the biggest platform of the country.

Nazli Abid requested the government through FPCCI to help women entrepreneurs and facilitate them in doing business. Our only agenda is to increase the participation of women in Pakistan’s economy.

She noted that we have many work plans and roadmaps to achieve this goal. We know this is a long journey. However, women entrepreneurs need encouragement and support to continue this journey.

KARACHI: Businessmen have estimated around $5 billion new investment alone in industrial sector under a package recently announced by Prime Minister Imran Khan.

The Chairman of FPCCI’s ruling group of BMP Mian Anjum Nisar observed that the new ordinance has amended the Income Tax Ordinance 2001 to extend the promotion package for industry and encourage entrepreneurs to invest in industrial undertakings out of their undisclosed assets.

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“We salute the PM Imran Khan and appreciate the efforts of his whole team, especially Finance Minister Shaukat Tarin, Federal Industries Minister Khusro Bakhtiar, PM Advisor Razaq Dawood, Secretary Industries Jawwad Rafique and Joint Secretary Hamid Atique for launching the game-changing and SME-inclusive industrial growth package, which was promulgated through presidential ordinance,” he added.

FPCCI newly-elected president and managing committee chairman Irfan Iqbal Sheikh added that tax incentives, especially for those with documented funds, are important to attract investors. But these alone will not do the trick.

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The government should also undertake legal, regulatory and energy reforms, and cut the bureaucratic red tape to make manufacturers and exporters competitive in international markets, he suggested, adding that Pakistan has grown its overseas sales in the last couple of years but its dependence on low-value-added textiles and lack of market diversification means that its imports have far outpaced its exports.

Mian Anjum, who is also FPCCI former president, observed that the entire business, industrial and trade community of Pakistan join hands to acknowledge and appreciate the Prime Minister Imran Khan on the announcement of truly historical, inclusive, facilitative and redefining industrial growth package, with a special silver lining for the micro, small and medium enterprises (MSMEs)-the real engine of growth and employment generation in any economy.

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He maintained that the package of tax incentives would push industrialization in the country and strengthen efforts to support private capital investment in the manufacturing businesses.

The real appreciating point of the package is that the business community was taken onboard in the whole process and FPCCI’s all suggestions were incorporated in the industrial package, he said.

The LCCI President and PIAF Chairman Mian Nauman Kabir said that narrow and inadequate industrialization is one of the major reasons for Pakistan’s low exports and, consequently, the repeated currency crises that the economy has endured over the last several decades after brief periods of economic boom. He said that no country could advance economically, generate jobs and alleviate poverty without boosting and diversifying industrial productivity. Little wonder Pakistan has sought 12 bailout packages from the IMF in the last three decades to cope with its recurring balance-of-payment difficulties. The journey to diversified industrialization can be tough and long, and requires consistency in policies and perseverance, he said.

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PIAF senior vice chairman Nasir Hameed said that the package is aimed at bolstering investments in new companies, revive closed factories and help existing industrial units expand their production capacities and upgrade their technology. The incentives will be applicable on capital investments of Rs 50 million and above in small to large industrial units.

PIAF vice chairman and Footwear Manufacturers Association former chief Javed Siddiqi said that all local, foreign and overseas Pakistani investors are eligible to benefit from the tax cuts and exemptions if they start production before the end of FY24 what is more important is that no questions will be asked about the source of funds invested in industrial projects, which was the major demand of the industry that was also accepted, leading to attract new investment of up to $5 billion in the country. Resident and non-resident Pakistanis willing to bring back their foreign disclosed and undisclosed assets to the country will get some additional tax benefits, he added. He said that the new amnesty scheme would boost exports and create new jobs, as tax relief would lead to substantial fresh local and foreign capital investment in the months ahead.

The country is facing many financial challenges including the current account deficit, balance of payments gap, swelling imports and foreign loans, however, with concerted efforts and right policies, the country will pass through the tough period, he said.

He said that enhancing manufacturing base was vital to achieve sustainable goals, as the government has introduced long-term policies primarily aimed at sustainable economic growth in the country and to achieve the economic targets.

Highlighting several other incentives announced by the government, he said they would usher the nation towards an industrial revolution, besides increasing export volume. He said that tax collection reached the record level of Rs6 trillion from Rs3.5 trillion, as the government was taking steps to reduce the tax burden on the public and widening the tax net.