Through this collaboration, MMBL and Daraz will provide adequate opportunities to promote Small and Medium Size Enterprises (SMEs), more so now as the e-commerce platform is going through an all-time boom via the 11.11 sale.
Both the organizations are firmly committed to promoting women’s financial inclusion through the provision of enabling digital financial ecosystem that contributes directly towards empowering this underserved, yet influential segment, which comprises almost half of the country’s population.
MMBL’s flagship program, Women Inspirational Network (WIN), and Daraz’s Ibtida would together provide an incredible boost to our joint mission of upskilling women entrepreneurs and provide them easy access to digitally equipped growth opportunities.
Sharing his enthusiasm, Ehsan Saya, Managing Director at DarazPakistan, said: “We strongly believe women are not only the cornerstone of our society but instrumental in securing a better future for Pakistan. One of the most amazing things about our platform is how easily female entrepreneurs can sell their products all over Pakistan – empowering them is the epitome of uplifting communities.”
This partnership will allow freshly onboarded MMBL female sellers to be charged zero per cent commission for the first three months, giving them ample time to set up their businesses.
Moreover, female sellers from Daraz will be able to apply for MMBL loans at concessional rates.
KARACHI: The apex trade body of the country has resented the suspension of gas supply to non-export-oriented industries.
Mian Nasser Hyatt Maggo, the president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Monday expressed his profound concern and disappointment on the government’s decision to suspend gas supply to non-export oriented industries; which will result in losses of billions of rupees, to say the least.
He questioned the government that why no preemptive arrangements were made; while everyone in the government knew full well that there will be a huge gas shortage in the winter months? He regretted that only 10 cargoes of LNG are coming in December 2021 as compared to 12 in December 2020.
Maggo said that the delayed tendering has proven to be extremely expensive and resulted in less than required offers; and, that too, on a very high rate. He added that only 886 MMCFD of LNG will be imported in December 2021and only 950 MMCFD in January 2022, which is 27% less than the LNG imports in December 2020 and January 2021, respectively.
FPCCI President has observed that the responsibility and liability lie with the government for the criminal negligence for practicing delay and procrastination in issuing LNG Cargoes once again. Had the tenders been issued in a planned, coordinated, and timely manner, there would have been no shortage by now, he added.
Maggo added that FPCCI has time and again raised this issue; and, still, industries have to endure gas suspension several times every single year. Had the government come to FPCCI for a consultative process on the issue, we would have provided the guidelines to successfully forfend the gas crisis in a win-win mechanism.
FPCCI Chief has raised the question that why the government does not issue enough LNG import licenses to commercial importers to bridge the gap? Instead, it keeps mismanaging the gas supplies to the industries.
Maggo has called for an immediate and direct intervention of Prime Minister Imran Khan to save the industrial backbone of Pakistan. He proposed that, though difficult, the PM should consider the option of spot tendering with the help of friendly countries. FPCCI extends its full support to PM for the resolution of the issue, once and for all, he added.
FPCCI strongly demands immediate steps to restore gas supply to industries; and, take other remedial & compensatory measures to avoid closure of industrial units and loss of millions of jobs in the non-export oriented industries for the working class of Pakistan, which lives paycheck to paycheck every month.
LAHORE: Foodpanda, an online food delivery platform, has welcomed the reduction in sales tax by Punjab Revenue Authority (PRA) to homechefs – people operating from their homes.
In order to create a favorable business environment, the PRA decided to reduce sales tax on services being charged on commissions for home-based chefs.
The rebate reduced sales tax from 16 per cent to 5 per cent, allowing better profitability and growth potential for home chefs operating on online food delivery platforms such as foodpanda.
Home chefs are essentially people operating out of their home kitchens who sell food through online platforms such as foodpanda. The online food delivery company currently has 5,000+ registered home chefs who have been taken on board after stringent routine checks for food hygiene, quality, safety, packaging, etc. The company’s aim is to increase the home chefs base in the next two years and take it up to 100,000 registered home chefs.
Nauman Sikandar, CEO foodpanda, while sharing his thoughts said: “A big thank you to the Punjab Revenue Authority (PRA) from foodpanda and our home chefs. The reduction in sales tax being charged on commissions for home-based chefs comes as a welcome respite.
“This move will help grow a new sector which has significant potential for financial and economic inclusion, specifically women economic empowerment. It would be ideal that other provinces also follow suit and implement the same for home chefs.”
Shahzadi Asghar, a registered home chef at foodpanda, while sharing her gratitude said, “It’s very difficult to do business in today’s situation, that too a home-based business. Thanks to foodpanda and PRA that sales tax is now reduced by 11 per cent which in turn has significantly improved our margins. I am now thinking to expand my food venture with this favorable initiative.”
The visionary step by the Punjab Government must be supported by other provinces as the sector continues to grow exponentially across the country.
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that the digital mode of payment for corporate expenses would disrupt business transactions; because almost all sales in the country are made on credit and this credit is secured through ‘post-dated’ cheques issued by buyers in favor of the sellers.
Mian Nasser Hayat Maggo, President FPCCI, in a statement on Thursday expressed dismay that the Federal Board of Revenue (FBR) continues to persist with the provisions of the ITO Third Amendment 2021; which seeks to compel companies to make payments for their expenses through digital mode instead of cross cheques; which is the prevalent mode for settling sale and purchase transactions in the country.
He also stated that he was shocked by news reports revealing serious ‘Conflict of Interest’ underpinning this provision of coercing companies to make payments digitally. It has been learnt that this proposal was initiated by a committee of the FBR; and, not by the FBR itself and that committee includes an owner of a B2B FinTech company; which provides software services for digital payments.
FPCCI Chief added that it was that owner of the FinTech Company and a member of that FBR committee as well; who proposed this idea and pushed it to be made part of the law, according to some other committee members.
Mian Nasser Hyatt Maggo added that FPCCI has taken note of FBR’s contention that “3rd party payments are highly prevalent in organized and informal sector whereby businesses do not use their own bank accounts when making payment for supplies and tell their own customers/transaction based informal investors to make direct payments to the principal supplier.
This is highly prevalent in supply chains and has become an accepted norm” FPCCI considers this as a fallacious argument, as such practice cannot be employed by a company as it has to deduct withholding tax on all payments that it makes and submit returns of tax withheld to the FBR, he added.
Mian Nasser Hyatt Maggo explained that a company can only indulge in such practice if it has an ‘Undeclared Business Account’ in a bank. In that case, any such delinquent company can continue to make payments digitally; despite the change in the law; as the bank account used is ‘undeclared’ anyway.
Mian Nasser Hyatt Maggo pointed out that, nowhere else in the world, bank cheques have been discontinued or businesses coerced to use digital mode of payment instead of bank cheques. FBR’s desire to outlaw use of bank cheques by companies is indeed a unique regulation. Digital payments are evolving in Pakistan and developed countries are way ahead in employing digital mode of payments, but they too, have not coerced companies or anyone else to limit or discontinue use of cheques, he added.
FPCCI President emphasized that it is abundantly clear that what the FBR enunciates as problems, that lead to leakage of revenue, pertain more to the non-corporate sector than the corporate sector. The question, therefore, is why companies are being subjected to this third degree? The obvious answer lies in vested interests influencing the FBR to promote a particular mode of business by one stroke of a pen, he added.
The suggestion has been made to make adjudication more fair, neutral, transparent, and competent resolution.
According to a statement issued on Wednesday, the FPCCI President Mian Nasser Hyatt Maggo presented the suggestion while speaking on the occasion of Dr. Asif Mahmood Jah, FTO Pakistan, visit to FPCCI Head Office in Karachi.
He said that FPCCI appreciates FTO’s recent notice and report on the misuse of powers by the officials of the Federal Board of Revenue (FBR) in issuing fake notices and accessing the bank accounts of the taxpayers unnecessarily.
Maggo apprised the audience that it has been FPCCI’s longstanding demand to have a well-reputed, fearless, competent, and senior officer appointed as FTO Pakistan.
Highlighting the major issues with income tax cases, FPCCI President said that discrimination, delay, injustice, non-transparency and non-payment of refunds are plaguing the taxation system of the country and that is the reason FPCCI recommends sweeping reforms in the system.
Hanif Lakhany, Vice President FPCCI, said that the business community is, for the first time, feeling secure and protected against the tax and customs officials’ harassment and highhandedness; due to the fair redressal by the office of FTO. He also thanked the government for having the right man for the right job.
Nasir Khan, Vice President FPCCI, expressed his satisfaction over the performance of the office of FTO; but, maintained that the tax and customs authorities use time-delay and procrastinating tactics to avoid swift redressal of the issues of business, industry and trade community. In order to resolve these grievances, FTO should be given the authority to reprimand and punish corrupt officers.
FTO Dr. Asif Mahmood Jah apprised the audiences on the mandate and the performance of the Federal Tax Ombudsman.
He said that 90% of the complaints by the business community go in their favor on average. The complainants have the option of appealing to FTO or of even filing a representation with the constitutional office of the President of the Islamic Republic of Pakistan.
Dr. Asif Mahmood Jah added that FTO can not directly reprimand the tax and customs officials; but, he can make his observations on misuse of powers, maladministration, anomalies, harassment and corruption; and, those are taken seriously.
Another limitation of the FTO is that we can not take up cases that have been already taken up by any court of law and are subjudice. Explaining the other functions of the institution of FTO, Dr. Jah said that inspections, own-motion actions and research are also mandated.
Dr. Asif Mahmood Jah also stated that he wants to expedite the turnaround time for the resolution of complaints from 60 days to 60 hours. He also agreed to FPCCI’s demand of setting up help desks at FPCCI offices in Karachi, Lahore and Islamabad.
The company said that for the second consecutive year since its approval as a manufacturer for the supply of Coca-Cola branded Freezers, Waves Singer Pakistan has secured the largest corporate order from Coca-Cola.
For fiscal year 2022, WSPL has received order for supply of 25,000 units of chest coolers and visi coolers worth around Rs1.44 billion.
Last year, the company obtained orders for 22,850 units of chest coolers and visi coolers worth Rs944 million from Coca- Cola after approval of the factory consequent to detailed audits.
Waves Singer Pakistan Limited has become a merged company with the acquisition of Cool Industries (Pvt) Limited by Singer Pakistan during 2017. After the approval of the Scheme of Merger by Sindh High Court, the combined company has acquired the name of Waves Singer Pakistan Limited.
Singer’s history dates back to 1850, when Isaac Merritt Singer manufactured the first ever sewing machine in Boston, USA. I. M Singer & Company was duly incorporated during the same year.
The name of the company was changed to Singer Manufacturing Company during 1853 when the factory of the Company was also relocated to New York, USA. Singer established its presence in the Indian sub-continent during 1877.
Over the years, and after the independence of Pakistan, Singer continued its business of sewing machines in the country, but also started dealing in domestic consumer appliances, besides manufacturing and assembling light engineering products. In 1985, the Company became a public listed company.
Singer Pakistan’s retail network has 140 shops in Pakistan alone, and covers every small town and metropolitan city of the country. Under the Singer brand, the Company produces a variety of consumer appliances-including refrigerators, air conditioners, LED TVs, washing machines, microwave ovens, in addition to its more traditional offerings of sewing machines, water heaters and gas ovens etc.
KARACHI: The First Lady of Pakistan Samina Arif Alvi has stressed that early detection is the only prevention for dealing with the life-threatening disease of breast cancer as 98 percent of the women survive when they are diagnosed with breast cancer earlier but unfortunately, majority of the breast cancer patients in Pakistan are diagnosed belatedly when cancer reaches third stage, resulting in a death rate in between 40 to 45 percent.
Speaking at a seminar organized at the Karachi Chamber of Commerce & Industry (KCCI) on Women Empowerment & Breast Cancer on Saturday, Samina Arif Alvi added that keeping in view the limited number of mammogram facilities available in the country, it was better for women to carry out self-examination for five minutes and if they feel anything unusual or any symptom or any change, they must immediately seek medical assistance.
Chairman Businessmen Group & Former President KCCI Zubair Motiwala, Vice Chairman BMG Anjum Nisar, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Chairperson of KCCI’s Women Entrepreneurs Subcommittee Durre Shahwar Nisar, President Pink Ribbon Trust Dr. Zubaida Qazi, Associate Professor IBA Huma Baqai, KCCI Managing Committee Members and a large number of women entrepreneurs attended the seminar.
First Lady Samina Alvi, while appreciating KCCI’s efforts to raise awareness about breast cancer, stated that it was very important that the business community of Chamber of Commerce, which plays the role of a backbone in the economy, comes forward to raise awareness about this disease being suffered by many women. “We need to sensitize our brothers, husbands and sons about this serious disease so that women should feel strong and boldly come forward for checkups. We have to ensure that women are empowered and encouraged to come out in every field as women are no less than anyone and they are capable of carrying out all types of tasks if they are strong and healthier.”
She also stressed the need for collective efforts by all segments of society, particularly the business community and media which can play an instrumental role in raising awareness about breast cancer and women empowerment. The awareness campaigns should not remain confined to the month of October only but it should be an ongoing exercise and the media must televise awareness program at least once a month, she added.
Chairman BMG Zubair Motiwala, in his remarks, said, “Today is an important day which would open a new chapter in the history of KCCI as for the very first time, KCCI has staged a seminar on breast cancer which was not given importance in the past.”
Referring to Dr. Zubaida Qazi’s remarks, he said that it was really alarming to see that breast cancer cases have gone up to 23.8 percent which were likely to rise further to 60 percent in few years if not promptly addressed. The government must prioritize this serious issue and an effective strategy has to be devised so that the breast cancer cases could be controlled and gradually brought down instead of upsurging.
He was of the view that the government must make screening and check-ups for breast cancer mandatory for every woman who reaches the age of 40 years which would certainly result in early diagnosis of this life-threatening disease and save many precious lives. “The strategy pursued to get the population vaccinated for COVID-19 pandemic proved very fruitful. Hence, a similar strategy must also be adopted for dealing with breast cancer by taking penal actions, imposing travel restrictions and barring women to avail other essential services on their failure to get the screening done for breast cancer”, he suggested, adding that it was also the responsibility of every male individual to ensure that his wife, sister or daughter have been screened.
While commending the efforts being made by First Lady, Zubair Motiwala extended Karachi Chamber’s full support and cooperation to all the initiatives being taken by the government for women empowerment and rights. “Empowerment comes when women get education and skills, hence it has to be ensured that women have access to education otherwise, the problems being suffered by our women would never minimize”, he added.
Vice Chairman BMG Anjum Nisar, while underscoring the need to change perception and mentally about women, said, “Unfortunately, we live in a society where it is widely believed that women will not be able to carry out several types of jobs which is untrue as women can do wonders if they are fully supported and empowered.”
He was of the opinion that rural women must also be given equal attention in all the awareness campaigns about breast cancer while opportunities must be provided to differently abled women in public and private sector organizations.
General Secretary AQ Khalil, while praising the role being played by the first lady for the betterment of women, said that as women represent more than 50 percent of the population, they must be provided equal opportunities and all their problems must also be treated equally. Moreover, the reserved seats at the National and Provincial Assemblies for women must also be raised according to their population.
President KCCI Muhammad Idrees, while warmly welcoming the First Lady, stated that the empowerment and autonomy of women and the improvement of their political, social, economic and health status was a highly important which would help in achieving sustainable development. “Education is also one of the most important means of empowering women with the knowledge, skills and self-confidence necessary to fully participate in the development process.”
He was of the opinion that entrepreneurship was becoming an increasingly significant source of employment for women across many countries. Nowadays women perform an important role in building the real backbone of a nation’s economy. However, the number of Women entrepreneurs was quite less and they often face gender-based barriers to starting and growing their businesses which needs to be tackled, he said.
“As a nation, I would like everyone to spread the awareness on Breast Cancer so that we could collectively fight for this noble cause”, Muhammad Idrees added while extending full support and cooperation to the government in all its endeavors to create a better society for women.
KARACHI: The president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Nasser Hyatt Maggohas emphasized that tea prices can be quickly curtailed if imports are facilitated directly from Tanzania, which is a major producer of tea in the world.
Pakistan should explore every possible avenue to control food inflation and tea is one of the major food items fueling inflation; as it is dependent on imports heavily, he added.
Maggo said that it is perturbing to note that currently only 2 per cent of tea is being imported from Tanzania directly and pricing pressures in Kenyan tea markets are causing an added strain to foreign exchange reserves of Pakistan and exchange range volatility; and, exchange rate volatility is adding up to the miseries of importers and general public alike.
Hanif Lakhany, VP FPCCI, apprised the Pakistani exporters of the potential to export a number of products to Tanzania in large quantities, e.g. value added textiles, pharmaceuticals, surgical goods, sports goods, fruits & vegetables, plastic ware, etc.
Zeeshan Maqsood, Convener FPCCI’s Standing Committee on Tea Trade, said that Pakistan imports a huge amount of around 240 million kilograms of tea annually and Tanzanian share is only 3.5 million kilograms. Pakistan is a $600 million tea market and Tanzania stands to benefit a lot from getting a share out of it.
Dr. Jacqueline Mkindi, CEO of Tanzania Horticulture Association, led the counterpart delegation and invited the Pakistani traders to explore the opportunities in textiles, pharmaceuticals, gemstones, minerals and fruits & vegetables.
FPCCI considers the current trade volume of approximately $220 with Tanzania too short of the real potential and considers the psychological mark of $1 billion achievable within a short span of two to three years.
Central Chairman of Pakistan Yarn Merchants Association (PYMA) Saqib Naseem has stressed that the existing custom duty of 11 percent on polyester yarn has to be brought down to 7 percent as done in the past when the previous governments provided this much-needed relief through Textile Packages that led to improving the overall productivity of textile manufacturers and also enhanced the exports.
Although the government in this year’s budget announced to bring custom duty down to 9 percent but that stands unchanged at 11 percent. Similarly, the anti-dumping duty also needs to be abolished in the larger interest of textile sector otherwise the export targets will not be achieved due to likely cotton shortages and higher customs duties, he added while exchanging views at a meeting during the visit of PYMA delegation to Karachi Chamber of Commerce & Industry (KCCI).
General Secretary Businessmen Group AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi and the Members of KCCI and PYMA’s Managing Committees were also present at the meeting.
Central Chairman PYMA pointed out that commercial importers of yarn act as a bank for thousands of small-sized textile industries who cannot afford to import huge quantities of yarn but obtain this essential raw material from commercial importers therefore, the importers should be provided relief by reducing the exorbitant duties and duties which have to be brought at par with industries.
He was of the opinion that prices of polyester yarn have risen sharply due to rising oil prices, increase in freight charges and the global shortage of containers. As a result, the textile industry, small and medium enterprises, especially power looms, were suffering due to high costs therefore, custom duties and taxes have to be brought down drastically.
Saqib Naseem further requested KCCI to help in convincing the government to bring down the turnover tax back to 0.1 percent as many people were finding it hard to continue their business with high turnover tax due to limited margin.
He also said that KCCI and PYMA have been enjoying cordial relations and it was heartening to see that many PYMA members have also discharged their duties at KCCI’s Managing Committee from time to time. “All PYMA members will go hand-in-hand with KCCI so that we could collectively work towards not only resolving PYMA issues but also other general issues of the business & industrial community”, he added.
President KCCI Muhammad Idrees stated that the Karachi Chamber gives highest preference to all the issues being faced by PYMA members which were constantly being taken up with relevant ministers, advisors and all the authorities at the federal level. He said that although Finance Minister Shaukat Tarin always agrees to treat commercial importers of yarn and industries equally but the issue of higher duties on commercial importers stands unresolved as probably the bureaucracy was misguiding the minister. This pending issue has to be resolved and the commercial importers have to be provided relief by ensuring availability of a level playing field.
PYMA delegation members also paid glowing tribute to Late Siraj Kassam Teli who always gave special attention and maintained good liaison with PYMA.
FPCCI President Mian Nasser Hyatt Maggo, while praising the government for launching the SME Policy, said the defined annual sales turnover of a meager Rs250 million does not reflect the current ground realities of Pakistan; as when that threshold was set, the exchange rate was around Rs60 for a dollar, which has now climbed to over Rs170.
Therefore, he has suggested, the new limit should be set at Rs1.5 billion for SMEs.
FPCCI Chief has reiterated his proposal for a simplified and streamlined taxation regime; including, easy-to-fill tax return forms; end to corruption; phased lowering of sales tax rates, etc. through alignment it to FPCCI’s proposal called Simplification of Taxation System in Pakistan sent to the Prime Minister of Pakistan back in February 2021.
The FPCCI chief hailed the concerted efforts of Makhdoom Khusro Bakhtiar, Federal Minister for Industries & Production, for launching long-overdue SME Policy of Pakistan.
The SME Policy has been in the making for many years now and the process unfortunately got deferred many times over, he added.
Maggo said that financing is the lifeline for SMEs and the SBP’s current SAAF Scheme has allowed a banking spread of 8 per cent to commercial banks; on top of 1 per cent refinancing rate of SBP; which makes it 9 per cent for the SMEs. That much cost of capital is unaffordable, unproductive and unfeasible. FPCCI has proposed an interest rate of 3 per cent for SMEs to make it viable for small businesses & entrepreneurs.
Mian Nasser Hyatt Maggo has demanded that the government should update the definitions of Micro, Small and Medium-sized organizations and make it MSMEs on the lines of current best practices internationally; for devising preferential treatment protocols based on peculiar ground realities of Pakistan. MSMEs are the engines of growth & employment generation, he added.
Addressing the glaring issues in labour-related provincial & federal levies on SMEs in Pakistan, Mian Nasser Hyatt Maggo has proposed that all the provincial and federal levies to be clubbed together to make a single levy to be charged either as a percentage of turnovers or on some other pertinent criteria for the sake of simplification; but, protecting the present collections for the purposes these departments have been created as well.
In order to keep demand-side variables in SMEs favour, President FPCCI has suggested that the government should keep their procurement from SMEs strong & steady; incorporating procurement for CPEC-related projects.
