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Category: Trade & Industry

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  • Employers flay new tax ordinance

    Employers flay new tax ordinance

    KARACHI: President, Employers’ Federation of Pakistan, Ismail Suttar, has strongly condemned the promulgation of new tax ordinance without consultation of the relevant stakeholders.

    The federal government introduced Tax Laws (Third Amendment) Ordinance, 2021, which was promulgated on September 15, 2021 through a presidential order.

    In a statement, Ismail while criticizing the Federal Board of Revenue (FBR), termed the move irrational and unwelcoming because most transactions are carried out through post-dated checks, and without a grace period of at least 40 days the business community will not be able to adopt the digital mode.

    “It is a total disaster and not the right way to bring the non-compliant sector under the tax net to meet the ambitious target of Rs5.5 trillion tax collection by pounding on the largely compliant corporate sector,” Ismail asserted.

    On behalf of the member manufacturers and exporters, the EFP president has appealed for an immediate suspension of the new tax law ordinance until due approval by the industrialists.

  • Measures against non-, under-filers in ordinance: Tarin

    Measures against non-, under-filers in ordinance: Tarin

    KARACHI: Finance Minister Shaukat Tarin has explained the measures have been taken against non-filers and under-filers who are declaring zero income.

    Talking at a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI) a day earlier, Shaukat Tarin categorically stated that victimization was definitely not the purpose of the Ordinance which was purely for non-filers and those under-filers who file zero tax.

    It was a matter of concern that out of a total of 2.9 million filers, one million are those who file tax returns and show zero taxable income.

    “We are intending to take help of artificial intelligence would examine electricity, gas, telephone bills along with banking transaction activities and other details of such filers and classify them as under-filers who will be asked to submit their taxes through a third party.

    He assured that the Drawback of Local Taxes & Levies (DLTL) has been extended and it will not be discontinued while the business community is going to get all its claim on time as funds for the purpose have already been allocated in the budget and the pending DLTL claims of Rs32 billion of the last fiscal year will also be settled in the next six months.

    Exchanging views with the leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce & Industry (KCCI) at a meeting held here in a local hotel on Sunday, Finance Minister advised KCCI to visit Islamabad in order to discuss their reservations about the new Ordinance, besides resolving all issues on the spot by arranging meetings with Prime Minister Imran Khan, Advisor Commerce & Investment Razak Dawood, Federal Minister for Energy Hammad Azhar and Federal Minister for Industries & Production Makhdoom Khusro Bakhtiar. “We will instantly give deadlines for all the pending policies as PM is determined to revive business, industrial and agricultural activities”, he added.

    Chairman Businessmen Group & Former President KCCI Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Vice President Muhammad Idrees, Former Presidents, KCCI Managing Committee Members along with prominent business figures attended the meeting.

    He said that the government was serious towards resolving issues in order to ensure sustainable economic growth at the rate of 5 percent which was the basic reason for enhancing the PSDP and reducing prices of raw materials so that the industry could stand on its feet. “Good news is that we are growing as all the indicators are showing improvements and we are growing faster than what was being expected.”, he said, “However, the import bill is going to touch US$19 billion this year as compared to US$13 billion of last year mainly due to rising petroleum prices and other commodities which we have to absorb.”

    He said that the government’s target was to improve the pace of exports from the existing 8 percent to 18 percent in the next few years while the narrow industrial base was also being expanded through incentivization. Incentives have been given to construction sector, pharmaceutical sector, spare parts manufacturers. “Anyone with economy of scale production is being incentivized to enable them to go for exports as well. We have to improve the exports and FDI by facilitating the local investors through Board of Investment. If our local investors will not be happy, how are we going to attract foreign investors.”

    He was of the opinion that inflation was not the issue of Pakistan alone as many countries around the world including regional countries were also facing this issue which was due to disruption in production all around the world due to covid along with logistics disruptions and exorbitant container chargers. “Prices of Palm oil, wheat and rice have been rising globally since 2018. We cannot isolate ourselves from international commodities prices as we are linked with them.”

    He also assured to convey KCCI’s concerns over dilapidated state of Karachi’s infrastructure to Prime Minister with a request to come up with some kind of a direct action by the Federal Government to improve the poor state of Karachi’s infrastructure.

    Chairman BMG & Former President KCCI, while expressing deep concerns over the newly promulgated ordinance in which enforcement measures have been introduced in the name of broadening the tax base, stated that this ordinance has frightened everyone mainly because of the term under-filer which was pinching in everyone’s mind and needs to be removed.

    He said that it was highly unfair that instead of appreciating and pampering the filers and acting strictly against the non-filers, this ordinance targets existing filers too by tagging them as under-filers which would open up more avenues of harassment and corruption. Hence, the term under-filer has to be expunged from the ordinance.

    Underscoring the need to take everyone into the tax net, he said that any income being derived from this country which crosses the benchmark set by the government should attract tax whether it was agriculture, industry or trading. “We are patriotic citizens and we would like to see Pakistan growing and tax collection at optimum level so that development takes places all over the country.”

    “Keeping in view all the expenditures, we really need at least a minimum tax collection of Rs12,000 billion but for that purpose, you will have to look where the funds were being lost instead of looking for them everywhere”, he said, adding that the ordinance was being considered as victimization for being in the tax net as the FBR, which has all the details of the filers would go for the easiest way by acting against filers instead of hunting for non-filers. “Before devising such laws, all the stakeholders should have been consulted and taken on board.”

    Zubair Motiwala also pointed out that DLTL has not been extended as no extension notice has been issued since July 1, 2021 and the exporters have no idea whether DLTL was there or not. “Although DLTL claims worth Rs32 billion have been cleared by FBR and sent to the State Bank as well but the amount has not been released as yet”, he added.

    Highlighting the issues of Karachi, he said that the Prime Minister announced an ambitious Karachi Transformation Plan (KTP) of Rs11,000 billion but nobody knows when it was going to come on ground and what was the progress so far. Representatives of business community, who know where exactly the development and upliftment works were needed in industrial areas, were also not being consulted in the transformation plan for Karachi. “The design of K-IV Project, which is the lifeline for Karachi, has been changed 11 times that resulted in escalating the cost of this project from Rs22 billion to more than Rs100 billion which was also a very serious issue.”

    He was of the view that although Pakistan’s ranking in World Bank’s doing business index has improved to 108th but it was still too high because the business community has not been provided an even-playing field. “Within Pakistan, we don’t have an even playing field as Karachi was expensive when compared with the cost of doing business in Punjab and other areas. Although the government extended RLNG at $6.5 per MMBTU and electricity at 9 cents per unit to five zero rated sectors but the RLNG relief has not been given to industries in Karachi who just started receiving electricity at 9 cents after a gap of two-and-a-half months.”

    He appreciated Finance Minister for allowing trade in rupees with Afghanistan but the State Bank has not issued relevant notification in this regard and the trade with Afghanistan has gone down by 60 percent.

    President KCCI Shariq Vohra, while welcoming the finance minister, appreciated the strategies adopted by the government that led to consolidating the economy with a GDP growth of 4.8 percent whereas consistency was visible in the exports and the large-scale manufacturing was also performing well, creating a much comfortable situation not only for the government but also for the private sector.

    Highlighting KCCI’s macroscopical perspective, he said that there has always been a mismatch in Exports vs. Imports as the exports remain stagnant in between US$22 to US$25 billion and the imports keep rising. Depreciating rupee value was also neither supporting the exports nor the businesses and the economy which can only be saved when the government devises effective strategies for enhancing the meager industrial base of the country and also creates an environment in which the industrial units could have surplus production.

  • Business community rejects hike in oil prices

    Business community rejects hike in oil prices

    KARACHI: The business community has rejected the increase in prices of petroleum products and demanded the government to immediately withdraw the decision.

    Anjum Nisar, chairman of Businessmen Panel, which is ruling body of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday said the move will hit the industry hard.

    He said that the burden of the surge in oil price in the international market is immediately transferred to masses by the government but the process of reduction in the prices is always very slow.

    Nisar said that the economy of Pakistan, particularly the SMEs are striving to deal with the post-corona economic crunch and need to get support.

    Instead of providing subsidies or waivers, it is unjust to overburden the industries with a hike in the cost of production. An increase in petroleum products costs will further weaken the economic environment which is already under threat on various fronts.

    He said that there is no denying the fact that oil rates have been on the rise in the international market now, but the government instead of passing on this surge to the public can reduce the number of taxes on petroleum products as the fuel is the engine of growth.

    If fuel would be heavily taxed, the entire economy would suffer unprecedentedly, he said, adding that petrol and HSD are two major products that generate most of the revenue for the government because of their massive and yet growing consumption in the country. Average petrol sales are touching 750,000 tons per month against the monthly consumption of around 800,000 tons of HSD.

    The economy is already in a precarious situation, this constant back and forth will only increase volatility, when we ought to be heading for stability, he added.

    He said that the cost of doing business and cost of production have shot up to the level of uncompetitiveness. The cost of borrowing was huge and capital financing has become more expensive.

    The business leader said Pakistan exports cannot compete with China, Bangladesh and India where power tariffs were 7-9 cents, particularly in the post-corona economic slowdown as the country’s exports have been witnessing a major setback in present days due to the high cost of electricity, which has become a major stumbling block in industrial development and boosting exports.

    He said that fuel and electricity are regarded as the lifeline of any economy and play a pivotal role in the socio-economic development of a country.

    Mian Anjum Nisar said that industries need low-cost energy to bring down their cost of production, keeping their goods competitive in the international market. He said that the government, in present circumstances, would have to reduce the price of electricity along with the cut in the prices of petroleum products to bring down the cost of doing business and to promote industrial activities.

    He said that due to the COVID-19 pandemic, business activities were already in decline and in this situation the government should take serious steps to cut the cost of doing business, as hike in oil rates would further enhance the cost of production, making transport more expensive.

    It is to be noted that in a fortnightly review of petroleum products for the second half of September, the price of petrol has been increased by Rs5.00 per litre. The new price of petrol is Rs123.30 per litre, which was Rs118.30 per litre or a 4.2 percent increase.

    Mian Anjum Nisar observed that with a view to improving the cash flow of businesses at this crucial time, the government will have to facilitate the industry through the reduction in tax ratio on all items including the oil products, besides lowering the markup rate. He said that at a time when country’s GDP ratio was very nominal amidst high cost of doing business, the industry needs maximum support and relief.

    FPCCI former chief and BMP chairman said that high-speed diesel is used mostly in the transport and agriculture sectors. Therefore, any increase in its price will lead to an inflationary impact. The price of light diesel oil has also been hiked, which is used in industries.

    FPCCI recommends cut in key policy rate by 100bps
  • Gas crises to continue until installation of more terminals

    Gas crises to continue until installation of more terminals

    KARACHI: Imran Maniar, Managing Director of Sui Southern Gas Company (SSGC) has said that gas crises being faced during the winter season were likely to continue for one to two more years until the new terminals for RLNG get installed at the Port.

    There were difficulties and challenges but the picture is rosy as upon completion and activation of Terminal III at the Port and if the SSGC decides to make a commitment with terminal owner only if consumers of SSGC pledge to buy the additional 500 mmcf, it would certainly help in resolving gas shortage issue being suffered by all types of consumers in Karachi, he added while exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).

    Chairman Businessmen Group (BMG) & Former President KCCI Zubair Motiwala, Vice Chairman BMG Jawed Bilwani, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Presidents KCCI Majyd Aziz and Younus Bashir, Former Vice President Muhammad Idrees, Chairman Public Sector Utilities Subcommittee Atif Jamil ur Rehman and Managing Committee Members along with representatives of industrial town associations also attended the meeting.

    While highlighting the overall gas demand-supply situation, MD SSGC informed that a total of 4,000 mmcf gas including indigenous gas and RLNG was being used all over the country, of which around 950 mmcf was being provided to SSGC from indigenous resources in Sindh and Baluchistan while 150 mmcf of RLNG was also being given to them and the rest of gas was being used by SNGPL. SSGC takes 110 mmcf from natural resources in Baluchistan while the rest of 75 percent gas comes into the system from resources in Sindh but these gas reserves were depleting fast at a rate of 10 percent per annum.

    He said that SSGC takes around 150 to 180 mmcf RLNG from two terminals at Port Qasim but the supply shrinks to 70 or 80 mmcf from these terminals during winter and the demand for gas in Baluchistan rises to 120 mmcf which creates an overall gas shortage of around 195 mmcf. To deal with gas shortages, the Ministry has designed a mechanism in which all the consumers from domestic to industrial have been ranked from top to bottom in which domestic consumers were at the top of the list, followed by export-oriented industry while CNG stations were at the bottom of the list and non-export industry was above CNG stations.

    Therefore, SSGC carries out load management during winter season exactly as per list provided by the Ministry whereas RLNG supplies to KE are completely cut to zero that helps in covering the gas shortage by 75 to 80 mmcf whereas suspension of gas to CNG stations further saves 20 mmcf that leads to reducing the gas shortfall by 95 mmcf, out of a total shortfall of 195 mmcf, he added.

    He further pointed out that there was a tremendous push to get villages gasified which requires significant investment of billions of rupees and huge resources including workforce and equipment who have to be sent to remote areas and villages.

    He further said that the industry was paying 70 to 80 percent of gas being consumed by the domestic consumers as the gas tariff for domestic users was very low and less than any other consumers all around the world including Qatar and Iran as it was being subsidized by the industry.

    Speaking on the occasion, Chairman BMG Zubair Motiwala pointed out that the first and foremost problems being faced by gas consumers was the low gas pressure in the industrial zones of Karachi which has created a serious havoc and the entire industry was unable to meet its requirements including the efficiency benchmarks and delivery time that intensifies the sufferings for the exporters. “As winter season is just ahead, what will happen to gas pressure during winter and what is the current condition of gas supply”, he asked.

    Zubair Motiwala said that the data of last one decade indicates that 1200 mmcf of gas was available from indigenous resources ten years ago when the industries were utilizing around 385 mmcf gas and then around 7 years ago, a decline to 335 mmcf was witnessed in the industrial consumption which later on picked up but to date, the maximum industrial consumption was not more than 400 mmcf.

    “We are concerned about the future as the demand for gas continues to rise because the industries have imported huge number of machines to enhance their production thanks to government policies but all these machines are going to require energy including gas and electricity so what is going to happen and what is the energy scenario for these machines which have been imported”, he said, adding that machineries worth US$1.5 billion dollars has already arrived, of which machineries valuing around US$400 to US$500 million have already been installed and started production whereas more machines worth US$1.5 billion were also in pipeline which would require more gas.

    He was of the view that demand from industries during winter remains intact yet the industries suffer the most which was not a correct approach. The demand for gas rises in Baluchistan to 200 mmcf from around 40 to 50 mmcf and it also increases in Sindh during winter season. Hence, the gas shortage was not because of rise in demand by the industry but purely due to enhanced consumption by domestic users. “Despite staying stagnant in terms of gas demand, supply to industry is curtailed and we are compelled to suffer. We don’t want more gas in winter, we want the same quantum of gas in winter at adequate pressure”, he added.

    Zubair Motiwala further stated that the five zero rated sectors agreed on a tariff of 6.5 dollars for RLNG gas which was available to entire Pakistan but SSGC has denied this tariff and the export-oriented industries falling under SSGC’s franchise have been compelled to use RLNG at exorbitant rate which was not affordable. “In this situation, when we are deprived of receiving RLNG, we might have to shift to SNGPL network.”

    He further expressed apprehensions over gas connections being given to new buildings which was going to intensify the hardships for industries because as per policy, supplying gas to domestic consumers was the top priority which means that the industries were going to suffer further curtailment due to more supply of gas to new domestic consumers. “All the new buildings should be provided gas via alternate means like bousers and the storage facility can be established at the basements of new buildings whereas the domestic consumers must be advised to switch over from gas-run geezers to solar-run geezers as successfully done in many countries all around the world”, he added.

    President KCCI Shariq Vohra, while welcoming the MD SSGC, said that gas has become a serious issue as Pakistan’s natural gas reserves were rapidly depleting while the gas distribution system of SSGC was in a pathetic state, causing severe line losses which was due to the fact that SSGC, which was once known as the best utility service provider company, has been through terrible circumstances during the last 10 years. SSGC has to define effective strategies to control waste of natural gas resources and theft in order to save the economy and the industry from severe losses, he added.

    KCCI demands COVID restrictions ease for businesses
  • FPCCI recommends cut in key policy rate by 100bps

    FPCCI recommends cut in key policy rate by 100bps

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has recommended a reduction of 50 – 100 basis points in the key policy rate, according to a statement issued on Monday.

    The existing policy rate is seven per cent.

    A monetary policy survey – conducted recently prior to SBP’s Monetary Policy Committee (MPC) meeting later in this month – conducted by Policy Research Unit (PRU), Policy Advisory Board, FPCCI has recommended a reduction in the policy rate by 50-100 basis points.

    The FPCCI recommended that key policy rate should not be above six per cent to promote business activities and economic growth.

    The president of the apex body Mian Nasser Hyatt Maggo in a statement on Monday said that the policy interest rate must not be over 6 per cent. “And if SBP wants to promote business activities and economic growth in the country, it should be brought down to 5 per cent.”

    He also pointed out that policy interest rate in the region is 3-4 per cent only and we have to compete with the region.

    FPCCI has recently established Policy Advisory Board under the chairmanship of former Federal Secretary Mohammad Younus Dagha.

    It aims to provide research-based expert input for policy advocacy, ease of doing business initiatives and formalizing the business community’s inputs on policies to various governmental departments, institutions and departments.

    Policy Advisory Board of FPCCI aims to formalize collective opinion of the private-sector for the formulation of business-friendly policies; with an objective to foster economic growth and development.

    The survey results show that 84 per cent of the businessmen and researchers in monetary policy suggest that there should be no increase in the policy rate and nearly half of them suggest a cut between 50-100 bps.

    The policy brief issued on the occasion has noted with a sigh of relief that the core inflation in Pakistan – the most definitive indicator for setting up the policy rate for any central bank – has significantly subsided to 6.3 per cent in August 2021 as compared to 6.9 per cent in July 2021.

    PKR stability must for economic growth: Anjum Nisar
  • German body seeks investment opportunities in Pakistan

    German body seeks investment opportunities in Pakistan

    KARACHI: A 20-member German Emirati Chamber of Commerce & Industry (AHK) business delegation, which is visiting Pakistan for a firsthand assessment of business and investment opportunities in the country held a meeting today with foreign investors, members of Overseas Investors Chamber of Commerce and Industry (OICCI).

    The German Business delegation was accompanied by Holger Ziegeler, German Consul General in Karachi, and First Secretary for Economic Affairs at the German Embassy in Islamabad.

    OICCI CEO/Secretary General M. Abdul Aleem, shared a detailed presentation, highlighting the liberal policies in Pakistan for foreign direct investment (FDI) which offers tremendous opportunities for new investment. Commenting on the investment opportunities in Pakistan, Aleem stated: “OICCI members have benefitted by taking a longer-term view which is illustrated by the fact OICCI members have re-invested over US$ 18 billion in the last 9 years which is more than the total FDI inflow into the country during this period.”

    The OICCI shared with the 20 members of the German Business delegation the results of the recent Business Confidence Index Survey carried out from May to July 2021 showing a dramatic upswing in Business confidence across Pakistan by 59 per cent since the last BCI survey done in the same period in 2020. “The OICCI members randomly included in the survey are more upbeat as their confidence level has gone up by 108’, Aleem added.

    Oliver Oehms, CEO of the visiting German Emirati Joint Council for Industry and Commerce and other members of the delegation enquired about several matters, including potential sectors for investment, special concessions for major investment in Pakistan, incentives relating to Special Economic Zones, major development projects on tourism, the impact of increasing inflation on businesses in Pakistan,  tax incentives for putting up export-based industries using imported raw materials and the most reliable government agency to facilitate the potential foreign investors. All the queries were duly responded by the OICCI members at the meeting.

    Record improvement in foreign investors’ confidence
  • PHMA organizes seminar on export facilitation scheme

    PHMA organizes seminar on export facilitation scheme

    KARACHI: A seminar was organized by the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in collaboration with the Federal Board of Revenue (FBR) on new Export Facilitation Scheme 2021 (EFS 2021).

    The export facilitation scheme was notified through SRO957(I)/2021 dated July 30, 2021.

    The seminar was organized on Wednesday simultaneously at PHMA House, Karachi, Lahore, Faisalabad & Sialkot.

    A large number of textile exporters participated physically at PHMA Offices and also joined this session online on Zoom and YouTube.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim and Moeen Afzal, Additional Collector, Model Collectorate of Customs (Exports) Port Qasim participated from Customs, Federal Board of Revenue to brief the salient features and registration process of Export Facilitation Scheme 2021 (EFS 2021).

    Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the Customs Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of EFS and to answer questions asked by exporters.

    He appreciated that PHMA and FBR jointly believe in facilitating the exporters in order to contribute in the economic prosperity of Pakistan.

    Both are working closer like hands in gloves in order to facilitate the taxpayers and exporters. With the best efforts and productive proposals of PHMA, the FBR’s FASTER and WEBOC Systems have been improved and working efficiently and exporters are getting their refunds online smoothly and all credit goes to the then Member IR Operations & sitting Chairman FBR, Dr. Muhammad Ashfaq Ahmed, Member Customs Operations FBR Syed Muhammad Tariq Huda and their team who eliminated human intervention and brought automation and reforms in the FBR System to facilitate the exporters.

    He also appreciated the Government’s initiative of the “Pakistan Single Window (PSW)” portal is to provide a single electronic platform for facilitating compliance with the regulatory regime for cross-border trade in Pakistan.

    Bilwani assured that PHMA shall also extend complete support to Customs with regards to the implementation of EFS 2021. PHMA has also introduced EFS Help Desk at its RDA Cell to support member exporters.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim addressing the leading exporters stated that the FBR believes in maximum facilitation to exporters enabling them to enhance exports to ultimately benefit the country to earn foreign exchange. He apprised that the FBR has been continuously working to improve and develop the taxation system through reforms and automation.

    In this connection, automation has been enhanced and public dealing has become limited particularly for the exporters. Introduction of export facilitation scheme 2021 is another milestone step from Customs to provide three scheme i.e. Export Oriented Unit, Manufacturing Bond, DTRE under a unified scheme which will benefit exporters particularly SMEs.

    The new scheme is simplified wherein exporters can apply online without visiting Custom House. Focal Person shall also be appointed to promptly address the queries and maximize facilitation to exporters.

    Moeen Afzal Additional Collector, Model Collectorate of Customs (Exports) Port Qasim gave a detailed presentation on the main feature of Export Facilitation Scheme 2021 wherein he informed that the new scheme will run parallel with existing schemes such as Manufacturing Bond, DTRE and Export Oriented Schemes for two years.

    The existing old schemes shall be phased out in the next two years and will be fully replaced by Export Facilitation Scheme-2021. The EFS 2021 Rules can be accessed at the official website of the FBR.

    The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme has also been revised. The IOCO Director shall upload the value of input.

    It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme, and shall attract more users and shall ultimately promote exports. Inputs include all goods (imported or procured local) for the manufacture of goods to be exported.

    These include raw materials, spare parts, components, equipment, plant, and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero-rated.

    Through this new scheme, Common Export House will import inputs duty and tax-free for subsequent sale to the authorized users especially SMEs. This scheme will encourage new entrants and SMEs.

    This scheme will be completely automated under WeBOC and PSW where users of the scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.

    In the end, exporters asked several questions related to the new schemes which were answered by the Collector and Additional Collector, Model Collectorate of Customs (Exports) Port Qasim.

  • PYMA demands cotton import through land routes

    PYMA demands cotton import through land routes

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Tuesday demanded the government to allow duty free import of cotton and cotton yarn through land routes, including India.

    The PYMA appealed to Prime Minister Imran Khan to take steps to reduce the cost of production of the value-added textile industry, in view of the shortage of cotton, cotton yarn and the skyrocketing prices and allow duty-free import of cotton and cotton yarn from Turkey, India and Uzbekistan by land. So that exporters can compete in the ongoing price race in international markets.

    In the appeal to Prime Minister, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association (PYMA), Farhan Ashrafi, Vice Chairman PYMA and convener FPCCI’s Central Standing Committee on Yarn Trading, said that the value-added sector in the country is facing immense difficulties due to shortage and price of cotton and cotton yarn reaching record levels, as cotton yarn is not available to these export industries even at high prices as per the production demand.

    “If this situation continues, not only will it be difficult to fulfil export orders, but Pakistani exporters will also lose the ability to compete in global markets. Which could have a negative impact on the country’s exports, so the government should seriously consider PYMA’s proposal in the best interest of the country’s economy”, they feared.

    PYMA office-bearers added that the exporters in the value-added sector are reluctant to accept new orders due to difficulties in procuring basic raw materials. Due to which these orders can be transferred to other countries.

    Hanif Lakhany, Farhan Ashrafi appealed to Prime Minister Imran Khan to assist exporters in fulfilling old export orders in time and taking new orders, while also issue directives to allow duty-free import of cotton, cotton yarn from Turkey, India, and Uzbekistan by land. This will not only reduce the import period of raw materials but will also help in reducing the cost of freight charges.

    Yarn traders demand restoring turnover tax rate at 0.1pc
  • KCCI demands COVID restrictions ease for businesses

    KCCI demands COVID restrictions ease for businesses

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has demanded the Sindh government to ease restrictions imposed related to business hours for markets and commercial activities.

    Chairman Businessmen Group Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra have appealed to the Sindh Government to have mercy on perturbed small traders, shopkeepers, and restaurant businesses who must be allowed to keep their business activities operational throughout the week from Monday to Saturday without any closure on Friday whereas the business timings must also be extended till 10:00 PM.

    Expressing deep concerns over an ongoing sit-in and hunger strike by shopkeepers and small traders along with owners of restaurants and marriage halls, Zubair Motiwala and Shariq Vohra requested the Chief Minister Sindh Syed Murad Ali Shah, Minister for Local Government Nasir Hussain Shah, Minister for Information Saeed Ghani and Minister for Industries Jam Ikramullah Khan Dharejo to intervene in this matter and issue directives to ease the curbs on local businesses in Karachi otherwise many businesses, who are at the verge of complete collapse and bankruptcy, would vanish forever.

    Millions of people associated with all these businesses would die themselves due to mental torture, hunger, poverty, and joblessness instead of dying because of the pandemic, they cautioned.

    They pointed out that there was a clear disparity going on as the businesses in Punjab, other parts of the country and even in other cities all over Sindh excluding Karachi and Hyderabad have been allowed to stay operational throughout the week and up to 10:00 PM which has triggered a sense of deprivation amongst the business community of Karachi and Hyderabad.

    They said that associations of commercial markets from all over the city have been constantly approaching KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating throughout the week except Sundays.

    Meanwhile, they have also assured that all shopkeepers and their staff have got themselves vaccinated and they were also prepared to fully comply with all the Standard Operating Procedures (SOPs) notified by the government.

    Keeping in view the overall situation and grievances suffered by small traders and shopkeepers in an extraordinary situation, Zubair Motiwala and Shariq Vohra hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs and allowing the businesses to operate from Monday to Saturday up to 10:00 PM so that they could be saved from further disaster.

  • President Alvi says economy heading in right direction

    President Alvi says economy heading in right direction

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has said that the economy of the country is heading in the right direction. It reflects the confidence of the business community in the economic policies of the government.

    (more…)