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Category: Trade & Industry

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  • Yarn merchants appeal for not imposing regulatory duty

    Yarn merchants appeal for not imposing regulatory duty

    KARACHI: Pakistan Yarn Merchants Association (PYMA) has expressed serious concerns over reports suggesting imposition of regulatory duty on polyester yarns.

    Saqib Naseem, PYMA Central Chairman in a statement on Wednesday expressed deep concern over rumors circulating about lobbying for imposition of regulatory duty on imported polyester yarns by local manufacturers of polyester filament yarns.

    READ MORE: FPCCI urges measures to overcome gas crisis

    He urged Adviser to Prime Minister on Finance, Shaukat Tarin not to succumb to the pressure of local manufacturers, and to reject any proposal for imposition of regulatory duty on imports of polyester filament yarns, especially HS Code 5402.3300 and HS Code 5402.4700.

    Appealing in a letter to Finance Advisor Shaukat Tarin, Chairman PYMA said that the local manufacturers of polyester filament yarns were lobbying the concerned agencies, especially the Ministry of Commerce, to impose regulatory duty on imported polyester yarns.

    This would be extremely detrimental to the local consumers of polyester filament yarn, and would be against the government’s policy of ensuring the availability of raw materials to the industry and consumers at competitive prices.

    READ MORE: Yarn merchants demand cut in interest rate

    Saqib Naseem said “In the letter that despite the fact that local manufacturers of polyester filament yarns are already enjoying discounted tariffs, efforts to implement regulatory duties will significantly increase the production cost of local industries”, fearing that therefore, no such proposal should be considered which is detrimental to the domestic industries.

    PYMA chairman was of the opinion the current custom duty of 11% is rather excessive. For your information the custom duty on polyester staple fiber is 7% and the local manufacturers of PSF seem to be doing with this level of protection. There is no significant production cost difference between polyester staple fiber and polyester filament yarn.

    READ MORE: PYMA demands cotton import through land routes

    He added that the weaving and knitting industry (user industry) is already facing a very challenging situation due to very high cotton and polyester yarn prices, and imposition of regulatory duty would be extremely counterproductive especially when the local user industry has to import 65 per cent of its requirements of polyester filament yarn from foreign suppliers.

    Saqib Naseem urged the government not to listen to the unjust pressure of local manufacturers of polyester filament yarns to impose regulatory duties, and only take measures to reduce the cost of production of domestic industries and stabilize the economy.

    READ MORE: Saqib Naseem elected central chairman PYMA

  • Japan to support trade promotion with Pakistan

    Japan to support trade promotion with Pakistan

    KARACHI: Japan will provide full support and cooperation to the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) for the promotion of trade and investment between Pakistan and Japan.

    The assurance was given by Toshikazu Isomura, Consul General of Japan, on the occasion of the visit of the FPCCI delegation who called upon him at the Japanese Consulate, said a statement on Monday.

    READ MORE: FPCCI urges measures to overcome gas crisis

    The FPCCI delegation included Hanif Lakhany, VP FPCCI; Rameez Sattar, Chairman Pakistan-Japan Business Council (PJBC) of FPCCI; Sultan Rehman, Coordinator FPCCI Head Office Karachi and Pir Ijlal Zaidi & Arbaaz Rameez, Directors PJBC. Okamoto Yu, Head of Commercial Section was also present during the meeting.

    Rameez Sattar presented to the Consul General detailed and comprehensive proposals for the acceleration of trade and investment between Pakistan and Japan.

    READ MORE: FPCCI demands consultations on planned mini-budget

    He discussed in detail the salient features of the proposal; identified opportunities for Japanese traders and the potential of export promotion of Pakistani products to Japan.

    He also emphasized the need for frequent interactions of the business community of the two countries for confidence-building measures leading to expansion of trade and investment.

    He offered to organize a virtual exhibition of Pakistani brands for the Japanese businesses to benefit from the enormous diversity of Pakistani fashion brands.

    Hanif Lakhany recalled that Pakistan benefitted substantially from Japanese cooperation in the 1960s & 1970s and requested the Consul General to reactivate Japan-Pakistan cooperation for mutual benefit.

    READ MORE: FPCCI recommends interprovincial trade of sugar

    Sultan Rehman conveyed the greetings and best wishes to the Consul General and H.E. Okamoto Yu on behalf of Mian Nasser Hyatt Maggo, President FPCCI.

    He informed the Consul General that the business community of Pakistan is ready and eager to expand economic and trade relations between the two countries at the earliest and FPCCI is willing to play its vital role.

    He requested the Consul General to facilitate and support FPCCI in this regard. He also requested the Consul General for asking JETRO to play a proactive role as it made a very significant contribution in the past.

    READ MORE: Digital mode to disrupt business transactions: FPCCI

    Toshikazu Isomura, Consul General of Japan, appreciated the efforts of FPCCI and assured them of his full support and cooperation in the promotion of bilateral trade and investment.

    He suggested having another meeting when the head of JETRO returns to Pakistan so he can be taken on board as well.

  • IMF intervention to add economic miseries of Pakistan

    IMF intervention to add economic miseries of Pakistan

    Business leaders have raised serious concerns over the continuous intervention of the International Monetary Fund (IMF), warning that its influence is exacerbating Pakistan’s economic struggles.

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  • Employers criticize increase in key policy rate

    Employers criticize increase in key policy rate

    Karachi: Employers have strongly criticized the State Bank of Pakistan (SBP) for recent increase in policy rate amid rising inflation.

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  • NKATI expresses concerns over gas disconnection

    NKATI expresses concerns over gas disconnection

    KARACHI: Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI), while expressing deep concern over the gas disconnect of non-export, general industries, has demanded the government to continue gas supply with required pressure to industries.

    In a statement, Faisal Moiz Khan said that Karachi should not be punished for paying 54 per cent of the country’s exports and 70 per cent of its revenue. If SSGC disconnects the gas supply to non-export, general industries then factories will be locked and the SME sector will be destroyed.

    “Karachi has always played a vital role in the development of the country and is still playing a positive role in spite of all difficulties, be it for strengthening the national economy or promoting exports and providing vast employment opportunities”, he added.

    He raised the question of where is the wisdom to shut off the gas of ordinary industries? The SSGC has no authority to disconnect industrial gas. On the contrary, the government should help the industries to survive in the corona economy so that the country can get back on its feet economically.

    NKATI president further said that where is the justice for Sindh not getting gas? Sindh has the first right to the gas reserves of Sindh. Therefore, first of all, while fulfilling the gas needs of the people of the province, gas should be supplied to all industries with full pressure without any discrimination and then the remaining gas to be given other provinces.

    Faisal Moiz Khan stated that the industrial community would not tolerate this injustice under any circumstances. The government should stop discriminating against Karachi and the resources of the province should be utilized to meet the needs of the province.

    SITE industrialists condemn gas suspension
  • SITE Association demands reversing policy rate at 7%

    SITE Association demands reversing policy rate at 7%

    KARACHI: Site Association of Industries (SAI) has demanded the State Bank of Pakistan (SBP) to immediately withdraw the increase in policy rate and bring it back at 7 per cent.

    In a statement issued on Thursday, SAI President Abdul Rasheed rejected further 100 basis points rise in interest rates calling for its immediate reversal especially when the industry is facing forced closures due to a severe gas shortage.

    READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month

    In a statement, SAI president said that free floating exchange rate works as a shock absorber which discourages imports in a timely manner thereby keeping current account in check.

    SBP in their monetary policy statement have stated that inflation is due to supply side issues further fuelled by higher commodity prices and up to 70 per cent of current account deficit is due to rising global commodity prices.

    READ MORE: SITE Association signs MoU for tax return filing

    Abdul Rasheed demanded reversing the rate to 7 per cent as industries are already facing severe losses due to gas closure industry, a crisis of the magnitude of COVID 19. “With industries facing huge challenges due to closure of gas, one sided minimum wage notification, an interest rate hike could well prove to be the last nail in the coffin for troubled industrialists.”

    Terming the interest rate hike detrimental for Pakistan’s economy especially for Government of Pakistan, he said, “An increase in interest rate of 275 basis points since September would result in higher fiscal deficit by increasing interest expense by Rs1 trillion on Rs26 trillion domestic debt while reducing direct taxes due to lower profitability of companies on account of higher interest expense”, he concluding that keeping raising interest rate at 7 per cent was the main reason that GOP avoided twin deficits having a better performance on the fiscal front despite deteriorating external position.

    READ MORE:SITE Association hails FBR chairman’s no bank account freezing decision

    SAI president discarded the idea of keeping real interest rates mildly positive as most of the countries are maintaining steep negative real interest rates including USA and UK. Terming the reversal of policy rate down to 7 per cent critical for both the private sector and GOP, Abdul Rashid Said, “it is imperative that SBP reverts its decision of raising the policy rates as it is detrimental to both the private sector as well the GOP without aiding at all in improving the current account position.”

  • Korangi Association flays key policy rate hike

    Korangi Association flays key policy rate hike

    KARACHI: Salman Aslam, President, Korangi Association of Trade and Industry (KATI), has expressed concern over one percent increase in interest rates.

    He said that further increase in monetary policy by SBP to 9.75 per cent would result in more inflation.

    President Salman Aslam said that the government was trying to control inflation by raising interest rates but in the current economic scenario this decision could not prove beneficial.

    He suggested that the government should provide facilities and incentives to the export industry to increase the country’s exports and increase foreign exchange reserves, thus reducing the pressure on the rupee against the dollar.

    President KATI said tightening monetary policy would freeze the economy, which would hurt the economy. The government-set growth target of 5 per cent is likely to be affected.

    Salman Aslam appealed to the government to take strict measures to increase exports instead of tightening monetary policy. If imports are reduced then inflation can be brought down.

    He said that the SBP’s move would make loans more expensive and would further increase inflation.

    Salman Aslam said that Korangi industrial area has full potential to increase exports, if the government provides facilities then KATI can play its full role in increasing exports.

    Around 65,000 industry workers vaccinated: KATI
  • SITE industrialists condemn gas suspension

    SITE industrialists condemn gas suspension

    KARACHI: Abdul Rasheed, President, SITE Association of Industries (SAI), has criticized the suspension of gas supply to all non-export general industries.

    In a statement issued on Monday, while totally rejecting SSGC’s imprudent decision to suspend gas supply to all non-export general industries, he demanded that instead of doing so, the SSGC should carry out staggered gas holidays along with better load management which would ensure non – export general industries will continue to run according to the given schedule.

    READ MORE: SITE Association signs MoU for tax return filing

    SAI president said that SSGC’s management which appears to be unaware of what was happening and was unable to control the situation, must go for staggering holidays and better load management in order to provide relief to the perturbed business & industrial community who are providing livelihood to millions of people.

    Rasheed also questioned the policy to prioritising gas supply to domestic consumers over job security. “What good is gas availability for an unemployed person,” he questioned.

    READ MORE: Export orders under threat as gas supply to industries suspended

    He urged the government to no take populist decisions and understand the negative impact of shutting down manufacturing activity on employment and inflation.

    Abdul Rasheed said the exemption given to export sector would not provide the desired results as general industries supply essential raw materials to export-oriented industries hence are an integral part of the supply chain must stay operational otherwise the export sector even with gas would not be able maintain the pace of exports.

    Terming suspension of gas supply to non-export general industries as detrimental, he said, that SITE Association will not stay silent and we will use all available options including a huge sit-in outside SSGC’s Head office until relief is provided to all industries without any discrimination.

    READ MORE: SITE Association hails FBR chairman’s no bank account freezing decision

    SAI president was of the opinion that gas suspension to general industries would not only result in increased unemployment but would also fuel massive inflation due to shortage of essential goods in the market. “With inflation already at 18% YoY, any supply side disruption would make the situation untenable for the masses as supply side shortages would jack up prices further eroding the purchasing power of the lowest strata,” he added.

    Rasheed further said that Imran Khan did not shutdown industries during COVID 19 for these very reasons while SSGC has done the same without giving heed to Prime Minister’s clear policy on the matter.

  • SITE Association signs MoU for tax return filing

    SITE Association signs MoU for tax return filing

    KARACHI: SITE Association of Industry has signed a Memorandum of Understanding (MoU) with Befiler for facilitating its members and their employees in tax filing, and related business services for promoting compliance culture among its member organizations.

    Patron-in-Chief of SITE Association, Muhammad Zubair Motiwala graced the signing ceremony with his presence. Abdul Rasheed, President, SITE Association of Industry along with SVP Saud Mehmood, VP Muhammad Kamran Arbi and senior members Anwer Aziz, Riaz Uddin, Abdul Kadir Bilwani and others were present at the ceremony. Asad Ali Shah, Chairman Befiler and Akbar Ali, CEO Befiler were representing Befiler.

    READ MORE: MTO Karachi asks taxpayers to file income tax returns

    With this partnership, SITE Association of Industry, one of the highest taxpayer industrial zone in the country, takes another step towards further compliance. Members of SITE Association of Industry will be able to file their tax returns using Befiler app or portal, and receive support and guidance from Befiler to effectively engage with the process and become part of Active Taxpayer’s List (ATL).

    SITE Association of Industry comprises of over 4,500 industrial units of varying sizes, including textiles, heavy machinery, beverages, automobiles, silk, oil, soap, food, chemicals, pharmaceuticals, steel, glass, paints, ready-made garments, etc. With this partnership, SITE Association of Industry is now taking another step towards a responsible and tax compliant institution. Through this partnership it is sending a strong message to its members in particular and citizens of Pakistan in general regarding its determination to foster a disciplined and compliant business environment.

    READ MORE: Persons not required to file income tax return

    Befiler is Pakistan’s largest & only digital tax filing platform offering truly digital NTN registration and tax filing experience. Befiler provides its services, and additional support through calls, live chat, and whatsapp to its clients. This partnership highlights Befiler’s wide acceptance, and credibility in Individual and Business sectors alike.

    Befiler believes that through the use of technology and its digital platform, the entire ecosystem of tax filing and compliance can be automated, making it easy and simple for tax payers leading to greater number of citizens becoming compliant. Bringing digital solution to the business community is a move in the right direction given the scope for growth, systematic reforms and bringing agility to processes through the use of technology.

    READ MORE: Requirement of filing income tax return by persons

  • IFC helps Engro in reducing plastic waste

    IFC helps Engro in reducing plastic waste

    KARACHI: International Finance Corporation, a member of World Bank Group, has signed an agreement to assist Engro Corporation in reducing plastic waste, promoting recycling, and boosting the company’s energy efficiency.

    The project is part of IFC’s Pakistan Resource Efficiency Program, which aims to improve efficiency, cost-competitiveness, reliability, and productivity in the manufacturing sector, particularly in energy-intensive industries.

    READ MORE: Engro Corp approves $31.4m for petrochemical project study

    IFC’s climate advisory project will help Engro Corporation assess the opportunities for moving toward a circular plastics economy as it develops a $1.8 billion petrochemical project to produce polypropylene.

    The circular system would see polypropylene products collected and reused or recycled and converted into viable products.

    IFC’s team will also assist Engro Corporation in driving sustainability by reducing its carbon and water footprints and adapting to climate-related risks through targeted interventions.

    READ MORE: Engro Corp posts 23% revenue growth in nine months

    Pakistan is the second-largest domestic market for plastics in South Asia after India and among the top 10 countries most impacted by climate change.

    The country produces about 30 million tons of solid waste annually, of which 9 percent is plastic waste. Its Indus river is a major carrier of plastic waste into oceans.

    Ghias Khan, President, and CEO of Engro Corporation, said: “At Engro, we believe that operating businesses sustainably at a globally competitive level need not be a zero-sum game. Therefore, we are actively partnering with global leaders such as IFC for a circular plastics economy, resource efficiency and carbon footprint reduction, to build a more sustainable future for our coming generations.”

    READ MORE: World Bank’s IFC signs financing agreement to build six power projects in Pakistan

    “Climate change is already impacting Pakistan and it’s crucial for companies to do everything they can to be efficient in their resource usage,” said Hela Cheikhrouhou, IFC’s regional Vice President for the Middle East, Central Asia, Turkey, Afghanistan, and Pakistan “Reusing plastics will not only cut greenhouse gas emissions and protect the environment but will help companies save money and become more competitive internationally.”

    Engro Corporation has been a strategic IFC client for nearly three decades. IFC has supported Engro’s growth from an ammonia-based fertilizer producer to a conglomerate with interests mainly in polyvinyl chloride production, dairy, power generation, liquefied petroleum gas storage and handling, liquefied natural gas regasification, telecom towers and logistics.