KARACHI – The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has called upon the government to implement effective measures to alleviate the ongoing gas crisis, emphasizing the need for uninterrupted gas supply to industries and a reduction in electricity tariffs.
(more…)Category: Trade & Industry
This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
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foodpanda demonstrates Pandafly drone at Dubai Expo
KARACHI: foodpanda has exhibited Pandafly drone at the Pakistan Pavilion in Dubai expo. foodpanda Pakistan’s leading food delivery company and is also the largest e-commerce platform.
The event is a testament to foodpanda’s commitment to grow and innovate through adoption of disruptive technology, as well as showcase the tremendous support and an enabling environment offered by the Government of Pakistan for continued growth and investment in the technology sector.
The use of these disruptive technologies by foodpanda, and other companies, in the future will mean faster deliveries over longer distances. Further customers living in peri-urban and remote areas will especially benefit through enhanced choice and competitive pricing.
Speaking at the event in Dubai, Nauman Sikandar Mirza, CEO of foodpanda stated: “We are very excited to be present at the Pakistan Pavilion to showcase our state of the art drone for food delivery.
“The support from the Government of Pakistan has been tremendous and our presence at this event has shown it to the world that Pakistan is open to testing innovative technologies and encourage investment in the technology and e-commerce sector.”
Hassan Afzal Khan, Pakistan’s Consul General in Dubai was also present at the event. Expressing his views, he said, “E-commerce and the use of technology to serve the citizens is definitely the future.
foodpanda’s use of innovative technologies for food delivery is highly impressive, and featuring it at the Dubai Expo was indeed a great idea. We wish foodpanda all the best in now turning this pilot project into a regular operational service.”
Also present at the event was Dr. Erfa Iqbal, Chairperson Punjab Board of Investment and Trade. While sharing her thoughts she said, “I am delighted to see that through e-commerce we are able to increase the overall economic activity and bring in financial inclusion, economic empowerment and socioeconomic uplift of the country and foodpanda is at the forefront of it. With this disruptive technology we are paving way for deliveries of the future where speed and convenience of customers are ranked at the highest level. As a country we still have a long way to go and thus, we need to keep on advancing on our efforts to create favorable business environment and make such technological revolution possible.”
The event was also attended by dignitaries, representatives of the media, corporate stakeholders from the MENA region, some celebrities and social media influencers.
Earlier in November, foodpanda launched the successful pilot project to test food delivery through Pandafly, the customized drone. Carried out in association with the Government, using a first of its kind drone built locally for commercial purposes in partnership with Woot Technology, the test flight took place in the F-9 Park Islamabad.
A food package weighing approximately 2.5 kgs was flown over 500m by the drone – with first and last mile of the delivery conducted by foodpanda’s very own riders.
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Builders, developers stop work on all projects in protest
KARACHI: Builders and developers have announced to stop construction work on all their projects from Friday, November 26, 2021 against the declaration of null and void to approved projects.
Mohsin Shekhani, Chairman, Association of Builders and Developers Pakistan (ABAD) in a statement said that work at all the approval projects in Karachi will stop functioning.
“Despite the approvals of the buildings and projects from all the government agencies they stand null and void,” he said.
He urged the government to tell the builders and developers, who are the final authority from the get approval.
Shekhani said that ABAD is against the illegal encroachments and illegal constructions. “Illegal projects if constructed it is a duty of government agencies to check and give NoC,” he added.
ABAD is following approvals strictly. But despite approvals and getting permission the moves to shatter the confidence of the people, he added.
“We are backstabbing the overseas Pakistani and local investors who have invested millions of rupees,” he said. Confidence of Overseas and local investors would be perturbed, he added.
From Friday work at projects in Karachi, Hyderabad and other cities will be halted, he announced.
Slowly the work in other parts of the countries will also be stopped, Shekhani added.
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FPCCI demands consultations on planned mini-budget
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday demanded the government of consultations with stakeholders on the planned mini-budget.
FPCCI President Mian Nasser Hyatt Maggo in a statement expressed his deep concerns over the approach of the government for not taking the apex business, industry, and trade body of Pakistan into the consultative process over mini-budget; and, what will it entail!
This effectively keeps all the stakeholders out of the loop, he added.
FPCCI President said that there are strong rumors that the government will also facilitate only the selected vested interests in the planned mini-budget next week. If all measures demanded by IMF are implemented, the people of Pakistan and the SMEs will have to endure an enormous burden of Rs. 800 billion, he added.
The FPCCI chief, referring to the announcement made by Finance Minister Shaukat Tarin, said that there is no way the current state of the economy can withstand an additional burden of Rs. 350 billion in taxes and the economy will collapse; and, the government would have to take the stakeholders into the consultative process to rekindle the process of economic growth after much damage.
Maggo said that the Finance Minister should immediately start the consultative process with FPCCI over the planned mini-budget. FPCCI has always kept the doors of the apex representative trade body of Pakistan open; but, the government has never paid any heed to the mutually-beneficial proposals we have put forward, he added.
The FPCCI chief said that the apex body had sent proposals on taxation reforms and broadening of the tax base, way back in February 2021; instead, the government has incompetently and insensitively has embarked on the path of tax pyramiding.
He reiterated that no more taxes can be extracted from the existing taxpayers. We should reach out to alternative multilateral financing sources and friendly countries for bilateral financing, he added.
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Pakistan offers huge potential for e-commerce: PM Imran
ISLAMABAD: Prime Minister Imran Khan has said that Pakistan offered huge potential for e-commerce which will generate employment opportunities and help in economic growth.
The prime minister expressed these views in a meeting with Group CEO of Daraz (online E-Commerce platform) Bjarke Mikkelsen.
The Prime Minister Imran said that the government is providing full support to foreign investors under the ‘ease-of-doing-business’ policy.
CEO Daraz Bjarke Mikkelsen expressed interest in further investment and expansion of e-commerce in Pakistan.
Advisor Finance Shaukat Tarin, Chairman Special Technology Zones Authority Amir Hashmi, Senator Aon Abbas Bappi, MD Daraz Ehsan Saya and Emmad Khan from Daraz were present during the meeting.
About Daraz
Daraz is the leading online marketplace in South Asia, empowering tens of thousands of sellers to connect with millions of customers. Daraz provides immediate and easy access to 10 million products in more than 100 + categories and delivers more than 2 million packages every month to all corners of its countries.
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FPCCI recommends interprovincial trade of sugar
KARACHI: Mian Nasser Hyatt Maggo, President, Federation of Pakistan Chambers of Commerce and Industry (FPCC), has recommended trade and transportation of sugar and sugarcane at interprovincial level.
In a statement on Wednesday, Maggo observed that market forces allowed under fair and transparent conditions do have the potential to stabilize the sugar market and ensure availability across Pakistan on competitive prices.
FPCCI Chief has maintained that no government can continue to regulate and subsidize any major commodity for an indefinite time period and for an indefinite expenditure cap. He added that around 60 per cent of sugar is consumed in the country by commercial consumers; and, these consumers can create a healthy competitive environment.
Healthy competition and free market access is the only real-world, efficient, consumer-friendly and sustainable solution to Pakistan’s chronic food inflation; which has doubled the food prices in the past few years alone, he added.
Adeel Siddqui, VP FPCCI, said that the price of sugar will continue to be unstable and will continue to add inflationary pressures if the sugar cane crops of different provinces remain confined to their provincial boundaries. Free market is the answer to price instability in the wheat flour as well, he added.
He stated that the currently ongoing crushing season will see a bumper sugar crop and, in any case, opening up of provincial borders for sugar cane transportation will help bring the sugar prices down substantially and relieve the masses at large.
Maggo added that Pakistan Sugar Mills Association (PSMA) and the government are face-to-face on the issue of restricted movement of sugar within provinces; and, as President FPCCI, he is ready to mediate between the government and PSMA to reach a win-win resolution.
He emphasized that the Ministry of Finance & Revenue and Food Security & Research should establish a better and functional liaison with the stakeholders of sugar industry at every stage to avert any future sugar crises in the country; and, also, save precious foreign exchange reserves through creating an enabling environment for the domestic sugar industry.
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Tax officials meet foreign investors to resolve issues
KARACHI: A team of senior tax officials held a meeting with foreign investors on Tuesday in order to resolve their pending issues.
The team of senior tax officials was headed by Shahid Iqbal Baloch, Chief Commissioner Inland Revenue (CCIR), Large Taxpayers Office (LTO) Karachi. Kazi Hifzur Rehman, Commissioner Inland Revenue, Audit Zone-III, LTO Karachi was also with him to attend the meeting at the premises of Overseas Investors Chamber of Commerce and Industry (OICCI), the representative body of the foreign investors operating in Pakistan.
Chief Executive / Secretary-General of OICCI Abdul Aleem and other member taxpayers of OICCI attended the meeting.
The CE / Secretary-General welcomed the Chief Commissioner-IR, Large Taxpayers Office, Karachi Shahid Iqbal Baloch, KaziHifzur Rehman, Commissioner-IR, to OICCI.
CCIR LTO Karachi Shahid Iqbal Baloch highlighted the role of his office in the collection of all domestic taxes particularly with reference to members of OICCI, who are the highest taxpayers of the country.
The members of OICCI shared their views and issues of taxation with the Chief Commissioner-IR, LTO, Karachi who also ensured their timely completion and highlighted that the team of officers posted at LTO, Karachi are thorough professionals and it was reiterated that all their pending issues related to taxes shall be completed as per law accordingly.
The meeting ended with vote of thanks by the Chief Commissioner-IR, LTO, Karachi Mr. Shahid Iqbal Baloch.
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Mobilink Bank, Daraz facilitate women entrepreneurs
KARACHI: Mobilink Microfinance Bank Limited (MMBL) and Daraz Pakistan have joined hands to facilitate MMBL borrowers specifically women entrepreneurs, by enabling them to become sellers on Daraz.
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.
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Apex trade body resents gas supply suspension
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.
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Foodpanda welcomes PRA tax concession to homechefs
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.