KARACHI: Fayyaz Ilyas, chairman, Association of Builders and Developers of Pakistan (ABAD), has demanded stern action against the cartel of cement manufacturers. He said that cement and steel are basic raw material for the construction industry
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This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
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Textile exporters urge allowing cotton import from India
KARACHI: Textile exporters have urged the government to allow import of cotton and cotton yarn from India and other countries through land routes.
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Finance minister asks cement producers to reduce prices
ISLAMABAD: Finance Minister Shaukat Tarin has emphasized to reduce the prices of cement as the industry is of paramount importance due to its backward and forward integration with the construction sector as a whole.
The finance minister held a meeting with the representatives of cement manufacturers at the Finance Division on Tuesday.
Federal Minister for Industries and Production Makhdum Khusro Bakhtiar, Secretary Ministry of Industries & Production, Secretary Finance Division and other senior officers participated in the meeting.
Secretary, Ministry of Industries and Production briefed the participants about the prevailing cement prices.
He also drew a comparison about changes in the price of cement per bag over the last three years particularly amid COVID-19 pandemic.
He highlighted the important role being played by the cement industry in stimulating economic growth during testing times.
In his remarks, the Finance Minister underscored the importance of cement as a building block of the Construction Industry.
He lauded the valuable contribution of the cement industry which has triggered a V-shape economic recovery during Coronavirus pandemic in the country.
He underlined various stimulus measures taken by the Government to support the construction industry that led to a strong rebound in economic activity during the ongoing pandemic, he added.
While speaking on the occasion, the Finance Minister stressed the need to provide industrial inputs such as Cement and Steel at affordable prices to carry forward the momentum of economic recovery amid COVID-19 as well as in post-COVID-19 scenario.
He emphasized to reduce the prices of Cement as the cement industry is of paramount importance due to its backward and forward integration with the Construction sector as a whole.
The representatives of cement manufacturers also presented their perspective on the occasion. They were of the view that the recent escalation in the prices of cement are driven by the rise in input costs.
Also the overall profitability in the cement sector is still the lowest as compared to other countries in the region.
In his concluding remarks, the Finance Minister urged the representatives of the Cement Manufacturers to hold a consultative session with relevant stakeholders and present a firmed-up proposal regarding sustainable pricing mechanism for cement sector in order to boost the overall Construction Industry by providing industrial inputs at a reasonable cost.
The Finance Minister affirmed full support and facilitation to the cement industry on the occasion.
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Pakistan, Iran should devise payment mechanism
KARACHI: The two central banks of Pakistan and Iran should devise a mechanism for swift payment in order to enhance bilateral trade between the two countries.
Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Tuesday while welcoming Hassan Nourian, Consul General of Islamic Republic of Iran in Karachi and Mahdi Amir Jafari, Third Consul for Economic Affairs, at the Federation House, Karachi.
Primarily, the two central banks need to devise a mechanism for smooth and swift payment systems for the bilateral trade as the starting point in the right direction; as that will give confidence to traders on both sides, the FPCCI president added.
The FPCCI is very keen to enhance bilateral trade between the two countries and for that matter removal of the bottlenecks is warranted; namely, lack of banking and financial channels; absence of barter-trade agreements or mechanisms at governmental level and unfair geopolitical pressures.
He explained that the central/state banks of the two countries and apex chambers of commerce and industry need to come closer; and, we can immediately start the consultative processes immediately at various levels through webinars. He also offered FPCCI’s assistance and its platform for making efficient and tangible linkages.
Maggo also requested Export Guarantee Fund of Iran (EGFI) to extend their funding guarantees to more traders with enhanced limits and play a role of a catalyst.
He added that he is worried on the COVID situation in the brotherly country of Iran and hoped that Iranian people will soon overcome the menace on the back of their ever-persistent resilience and high hygiene standards.
On the occasion, Hassan Nourian said that the formal trade between the two countries stands only at $1 billion and it is too low; given the fact that the combine population of Pakistan and Iran is 300 million.
He added that there might be informal trade along the lines; but, the two countries must work in tandem to progressively increase the bilateral trade on a sustainable basis.
Hassan Nourian emphasized that the quality of Iranian products is world-class and Iranian industry buys their plants mostly from best manufacturers.
He also appreciated the willingness of Pakistani Embassy in Iran for supporting enhancement of bilateral trade.
Hassan Nourian pointed out that there is still a huge untapped potential for Pakistani fruits in Iran; particularly, various varieties of mango. He also emphasized that petrochemical industry is very advanced in Iran technologically and can greatly help Pakistan with their foreign exchange strains.
Hanif Lakhany, Vice President, FPCCI, pointed out that tariffs are playing out as a major hindrance; as the tariffs are very high on both the sides; and, that results in rendering bilateral trade uncompetitive.
Nasir Khan, vice president FPCCI, said that during a recent meeting with State Bank Governor, FPCCI raised the issue of lack of banking channels with Iran and the SBP has asked to discuss the matter further in the light of currently in place bilateral mechanisms between Iran and other countries, like China, India, Turkey, etc.
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Tarin orders release refunds to edible oil importers
ISLAMABAD: Finance Minister Shaukat Tarin on Monday directed tax authorities to expeditiously release refunds to importers of edible oil importers.
He issued the directive at a meeting with a delegation of Pakistan Vanaspati Manufacturers Association (PVMA).
The finance minister directed the chairman of Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.
Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR and other senior officers participated in the meeting.
While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.
The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.
The exchange rate also has a significant impact on edible oil prices in the country, he added.
While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.
If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market.
The finance minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries & Production and FBR.
He constituted a committee comprising representatives of PVMA, Secretary Ministry of Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula. The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.
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BMG candidates elected unopposed in KCCI election
KARACHI: All candidates of Businessmen Group (BMG) have been elected unopposed for the Managing Committee of Karachi Chamber of Commerce & Industry (KCCI) for the year 2021-2022.
A statement said issued on Monday, a total of 30 nominations were received by the Election Commission from candidates belonging to the Businessmen Group.
The Election Commission, after scrutinizing all nomination papers, declared 12 nomination papers as invalid and rejected the same whereas 3 candidates withdrew their nomination papers, resulting in unopposed election of remaining 15 BMG candidates. Therefore, all 15 BMG candidates were declared successful in KCCI’s Election 2021-22.
Chairman Businessmen Group (BMG) and Former President KCCI Zubair Motiwala, on the occasion, expressed gratitude to Almighty Allah and conveyed thanks and compliments to the business and industrial community of Karachi for reposing confidence and trust on Businessmen Group.
He said that 24 years of success in a row is an acknowledgement of the public service by the Businessmen Group which also testifies that the overwhelming majority of Business and Industrial Community endorses the policies of BMG because they understand and believe that BMGIANs are serving them selflessly for their betterment.
BMG Chairman hoped that the newly elected representatives will make all out efforts in espousing the cause of business and industrial community and to further enhance the status of public service which is the motto of BMG.
The list of successful BMG Candidates included names of Muhammad Idrees, Touseef Ahmed, Abdul Rehman Naqi, Haji Asif, Shoaib Ahmed Faridi, Muhammad Asim Aejaz, Muhammad Arif, Nasir Riaz, Abu Bakar Siddiq Ahmed Shamsi, Asif Younus, Shaikh Wasim Ahmed, Zia ul Arfeen, Muhammad Farhan Ashrafi, Mohammad Amir Churra and Shamim Ahmed.
As the Managing Committee members have been elected unopposed, hence no general election for Managing Committee will be held on September 18, 2021 whereas the election of KCCI’s Office Bearers for 2021-22 is scheduled to be held on September 23, 2021.
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Record improvement in foreign investors’ confidence
KARACHI: The business confidence score (BSC) of foreign investors operating in Pakistan have witnessed a record improvement.
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Self assessment scheme to facilitate taxpayers: Tarin
KARACHI: Finance Minister Shaukat Tarin on Friday said that the Universal Self Assessment Scheme (USAS) has been reintroduced. This scheme will facilitate taxpayers in declaring income and assets.
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PKR stability must for economic growth: Anjum Nisar
Mian Anjum Nisar, Chairman, Businessmen Panel and former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that economic growth is not possible without stability of Pak Rupee (PKR).
In a statement issued on Saturday, he urged the government to control instability of rupee against the US dollar, as the greenback has appreciated 7.15 per cent since May this year, hitting 10 months high to cross the Rs164 mark.
FPCCI’s Businessmen Panel Chairman Mian Anjum Nisar observed that the industrial expansion and economic growth is not possible without stability of local currency, as the dollar has been appreciating against the rupee for the last more than 10 months because of the higher current account deficit and burgeoning import bills.
FPCCI former president observed that the market-based flexible exchange rate system, resilience in remittances and other factors can help contain the current account deficit in a sustainable range of 2-3 percent of GDP in FY22.
He said that the rising of dollar is not logical despite the fact that the State Bank says Pakistan’s external position was at its strongest in 10 years with 0.6 per cent current account deficit in FY21.
Since the May this year, the dollar has been appreciated by 7.15 per cent against the local currency which lifted the cost of imported products and created uncertainty about the exchange rate stability.
The dollar was at Rs164 in October 2020 and now again hovering in the range of Rs164 in Aug 2021.
Since the beginning of the new financial year the exchange rate looked a shaky as the local currency lost almost 4 per cent against the US dollar. The market reacted over the policy-makers’ announcement about 2-3 per cent current account deficit, while the importers rushed for higher amount.
He said that trade and industry have no idea as to what is the real exchange rate needed by the central bank and which is the end point for depreciation of rupee. Though the exporters would get some benefit against their export proceeds but the overall economy would face a tough time as the cost has been rising and finally it would affect consumption, which is the main wheel to run the economy.
Although the central banks’ foreign exchange reserves are in a better shape, but it has to rely heavily on borrowing to keep it at around $18 billion which affects the local currency value negatively.
He said that Pakistan has received record $29.4 billion remittances in fiscal year 2020-21 and it again received $2.7 billion in July FY22, indicating that the new financial year would also get help larger than the entire exports of the country, which is not long-term solution.
Besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. Mian Mian Anjum Nisar appreciated the positive development related to economic indicators, urging the government to control volatility of rupee against the US dollar, showing that exchange rate is not managed by the State Bank of Pakistan (SBP) but it also indicates the exchange rate is not stable.
He said that the end of previous fiscal year with rising current account deficit was a serious blow to the exchange rate while the fear of higher demand of dollars further exacerbated with the information of the SBP that the county would need $20 billion to repay loans.
Nisar said that the import bill of $6 billion in June this year was enough to signal the market that demand of dollar was very high. He said that the rising instability in Afghanistan has stirred fear within Pakistan that may hurt the normal economic life in the country, motivating people to buy dollars. At the same time, exports to Afghanistan have come down to almost zero level.
Formal and informal exports to the country are in the range of $1.5 billion to $2 billion per year. Mian Anjum said that the fourth wave of Covid-19 is another negative force to depreciate the local currency and shatter the confidence.
Terming rupee depreciation against dollar a mysterious development, he said that continued fall of rupee is not understandable with the fact that there was no fundamental change in the country’s economic indicators.
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Karachi Chamber connects with Pakistan Single Window
The Karachi Chamber of Commerce and Industry (KCCI) has become the first chamber in the country to launch NADRA e-Sahulat for the Pakistan Single Window (PSW) portal.
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