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Category: Trade & Industry

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  • PYMA demands cut in duty rates on polyester yarn import

    PYMA demands cut in duty rates on polyester yarn import

    KARACHI: Pakistan Yarn Merchant Association (PYMA) has demanded the government of immediate reduction in duty rates on import of polyester filament yarn to ensure bring down prices of the commodity.

    Hanif Lakhany, Senior Vice Chairman PYMA and Vice Chairman Farhan Ashrafi urged the government to immediately remove additional customs duty at two percent and regulatory duty at 2.5 percent on the import of polyester filament yarn as an interim relief.

    Furthermore, they demanded a review of tariff structure on the entire polyester chain to make our user industry consisting mostly of small and medium size enterprises competitive to enhance our exports.

    They termed catastrophic for small and medium enterprises (SMEs) over not reviewing the tariff structure of polyester chain and not allowing immediate duty-free import of cotton, polyester cotton and polyester filament yarn by the government, and feared that the textile industry would be ruined if it was not possible to supply raw materials at reasonable prices as per the production demand.

    PYMA office bearers met with a delegation of polyester yarn users, industrialists, importers and traders, raising their concerns, they said that the government is aware that cotton production has declined this year, while the skyrocketing prices of polyester filament yarn, the main raw material for the textile industry, have pushed up production costs to an unbearable level

    “As a result of higher prices in the local market, small and medium enterprises (SMEs) have no choice but close their units, if nothing is done to alleviate the pain of super high prices, it may be posing a grave danger to the fragile export growth”, they pointed out

    PYMA office bearers said that we really appreciate that the government is seriously considering measures to tackle the escalation of cotton yarn prices but there is also a need to review the current tariff regime of the Polyester Chain, if we really want Pakistan to be truly competitive in the international market.

    “Polyester filament yarn is subjected to 11% customs duty, 2% additional customs duty and 2.5% regulatory duty in addition to Antidumping duty ranging between 3-11% despite of the fact that local manufacturers of polyester filament can only meet less than one third demand of the user industry”, they added, these local manufacturers of polyester yarn enjoy tremendous tariff protection at the cost of very large small and medium size enterprises to the detriment of our stated public policy to make our value added industry competitive.

  • APTMA disapproves Indian cotton import

    APTMA disapproves Indian cotton import

    KARACHI: All Pakistan Textile Mills Association (APTMA) has strongly disapproved any plan to import cotton yarn from India.

    In a statement issued on Friday, Asif Inam, Chairman – APTMA Sindh-Balochistan Region expressed deep concern on drastic decline in price of fine counts of yarn by Rs. 10,000/- per bag in the Faisalabad Yarn Market which is in expectation of massive tax evasion plan by individuals in anticipation of permission be allowed to import cotton yarn from India through Wagah Border.

    Asif Inam in a statement issued to the press and electronic media has said that industry has procured cotton at very high prices and they are not in a position to sustain these losses.

    He said that about 90 percent of yarn produced in the country is available for the domestic market and there is no shortage of yarn in the country.

    Asif Inam urged the government not to allow import of cotton yarn from India as India has imposed restriction on import of all Pakistani products.

    To restrain import of yarn from India and support the local industry he demanded the government to withdraw levy of sales tax on zero rated sector so that the genuine industry may flourish and be able to provide yarn at affordable prices.

    He also urged the government to save domestic industry from total closure, DLTL should not be provided on those entire textile products produced using imported materials which are either produced or manufactured in Pakistan as all such textile items which are produced using imported materials are incurring losses to the national exchequers because most of the exporters falls under the category of Fixed Tax Regime whereas they are also availing DLTL facility ranging between 2 percent to 4 percent and subsidized Export Refinance Facility which is provided from the revenue earned by the government from Pakistani Taxpayers. DLTL and ERF should only be provided on the products produced using domestic yarn and fabrics, he added.

  • FPCCI demands autonomy of FBR officials for immediate resolution of tax matters

    FPCCI demands autonomy of FBR officials for immediate resolution of tax matters

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded autonomy of senior officials of the Federal Board of Revenue (FBR) so they take on spot decisions to resolve tax issues.

    In a statement, Nasir Khan, Acting President of the FPCCI said that the business community had raised many problems pertaining to duty and taxes but the tax machinery had shown either no response or given low priority.

    He said that the issue of CNIC still not resolved despite COVID-19, the issue has reduced business activities. He stated that numerous laws and regulations have been imposed on the business sectors while at highest level meetings the FBR officials are unable to responds which is not suitable just time consuming.

    “The highest level official should have autonomy to resolve and decide the issues being raised in the meetings.”

    During the meeting with Chairman FBR the working of the FBR was discussed which is not up to mark and no sign of any trade facilitation is seen.

    There is no representation of this apex body of trade and industry in the various crucial decisions being taken by the FBR i.e., formulations of the resolution committees and issuance of SROs without consultation.

    During frequent visits of Member IR (Operation) to the FPCCI Head Office wherein, a number of problems were put forward for decision but instead there should be any relief to the trade bodies no fruitful decision is made so that even a single problem is resolved.

    Instead to increase the net of the taxpayer the FBR machinery is engaged to squeeze the traders which are already under tax net. The seriousness of the FBR towards tax collections may be noted from the fact that there is no representation of the FPCCI in various committees.

    It seems that there is a wide communication gap between the apex trade body and the FBR Headquarters and if the position is not improved then the net results in progress to resolve trade related issues will be zero.

    While participating in the meeting Zakaria Usman, Convener, FPCCI Budget Advisory Council expressed that is in trade business for more than 50 years and still would like to see a economical budget to be implemented by the FBR instead of revenue oriented budget.

    FBR is lacking consistency in policies which change rapidly affecting the working of businessmen and the commodities are gone out of costing.

    The policy of FBR to squeeze the already registered taxpayers may be shifted to a mechanism to explore new taxpayers and avenues accordingly.

    He suggested a cascading system spreading on five steps which is more economical and tax oriented. Secondly the policy to issue SROs over the night may be come to an end forth with. Regarding valuation he shared his views that the system of valuation prevailing worldwide on the basis of scan prices may be adopted immediately instead to issue valuation rulings on the will of valuation directorate who issue such rulings without taking the stakeholder on board.

    He quoted the example of plastic scan where the valuation prices are issued by the plastic association and applicable evenly on all the importers. Prime Minister is keen to move the country towards industrialization.

    The formation of trade zones will certainly be helpful extending the required benefits for the industries working in these zones. But is it sorry to say that the goods intended to be used in tax free zones are pushed in the tariff areas thus affecting the traders who are doing business in the tariff area after paying the statutory rate of customs duties and taxes.

    He suggested that CNIC problem should be resolved on priority.

    Nasir Khan shared with the Chairman the idea of one window operation that all the taxes are collected on same place including its adjudication etc., so that the traders may not run from pillar to post for redressal of their problems.

    He said that the traders of Balochistan have problems with the intelligence on valuation issues. The trade bodies struggled and helpful to stop smuggling in the province. Another problem he pointed out regarding DTRE approvals that it takes days and month to dispose the DTRE applications.

    He also suggested that trade bodies may be taken on board and on transfer / posting of the officers so that the willing officer could be pointed out for smooth running of day to day issues.

    Hanif Lakhani, Vice President of FPCCI suggested review of SRO 1065 for industrial investment and the advantages may be given to the stakeholders as the advantages extending to reconstruction industry.

    Khurram Sayeed, Former Vice President of FPCCI congratulated the Chairman on the targets of tax collection for the last seven months. He said that tax net to be broadened rather than to impose new taxes on the taxpayers which are already registered.

    He pointed out a new practice of FBR to issue notices to the taxpayers for the last five years. The officials when contacted they say that the notices are system based and we will rectify the data accordingly. He also said that It is against the judicial norms that Income Tax Officer who issue notices for recovery conducts the hearing himself which should have been heard by a separate officer.

    Khurram Ijaz, Immediate Past Vice President of FPCCI supported the view of President FPCCI to establish a Help Desk of FBR in the FPCCI Head Office and requested the Chairman that at least this decision may be finalized today.

    He further suggested that there should be a meeting of FBR Officers with the FPCCI representatives within two weeks’ time to hear the trade bodies and to consider budget proposals.

    Engr. M. A. Jabbar, Former Vice President of FPCCI said that the consultation of FPCCI and FBR on tax matters is almost zero. It is high time to take decisions by FBR on then and there basis rather than to shift the matters on committees / sub-committees. If there are no changes in the system then one cannot expect improvement in the taxation system that is why we are more interested in a fixed tax system rather than the present one. 

    Sultan Rehman, Immediate Past Vice President of FPCCI informed that current notices of Section 82 being issued by IRS for late filing of returns may be withdrawn immediately keeping in view the COVID-19 pandemic.

    Shabbir Hassan Mansha, Convener, FPCCI Customs Standing Committee pointed out the chronic issue of non-cooperation of shipping companies as they are not accepting the delay detentions. He suggested to improve the provisions of Section 14A in the current Budget so that the dominance of shipping companies and terminal operators could be reduced.

    He requested for regulation of Port & Shipping Laws so that terminal operators and shipping agents may not be able to shift their responsibilities. Another issue is the rent of the containers which sometimes exceeded the price of container itself. He suggested that a copy of SROs / Notifications / Orders may be endorsed to the Manager, FPCCI FBR Affairs Wing so that prompt within time may be taken in the best interest of trade bodies.

    Haroon Farooqui former President KCCI pointed out a hidden lobby who is working for their agenda and disturbing the overall trade friendly atmosphere creating a gap between the trade and FBR. He said that unless SMEs are encouraged Pakistan will never achieve its goal towards prosperity and industrialization.

    Zeeshan, Sr. Vice Chairman of Pakistan Tea Association said that the imported tea is not marketed as such but it is blended with other quality tea to make it suitable with respect to its aroma and taste.  

    In the last Chairman thanked the participant for sparing their valuable time for discussion and assured that he will consider the idea to establish a Help Desk at FPCCI. He termed the idea to hold seminars on the subject of Budget Proposals and to improve tax laws.

    Nasir Khan the Acting- President of Federation of Pakistan Chambers of Commerce and Industry strongly urged to consider FPCCI proposals avoid policy of scraping them that will discourage trade bodies to participate in the process of budget formulations.

  • APTMA says no cotton yarn shortage in country

    APTMA says no cotton yarn shortage in country

    KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday strongly rejected the shortage of cotton yarn claimed by Pakistan Hosiery Manufacturers Association (PHMA) and Pakistan Textile Exporters Association (PTEA) and their proposal of allowing import of cotton yarn from India. 

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  • No paper-based foreign exchange operation after June: SBP

    No paper-based foreign exchange operation after June: SBP

    KARACHI: All the banks will discontinue paper-based foreign exchange operation after June 2021, Managing Director of State Bank of Pakistan’s Banking Services Corporation Muhammad Ashraf Khan said on Monday.

    He said that digitalization of foreign exchange, which started in March 2020, has been expanded from 8 to 13 banks and majority of the banks will be processing 88 percent of foreign exchange digitally by the end of February 2021 and 98 percent by April whereas the banks will completely discontinue paper-based submissions after June 2021.

    MD SBP-BSC, while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI) on Monday, added that the initiative to digitalize foreign exchange operation was taken to create ease for the business community by completely eradicating the paperwork and expediting the overall process which has successfully been implemented by many banks.

    Head of Foreign Exchange Operations Department SBP Shakeel Muhammad Paracha, Director Exchange Policy Department SBP Arshad Mehmood Bhatti, Vice President KCCI Shamsul Islam Khan, Chairman of KCCI’s Banking & Insurance Subcommittee Qazi Zahid Hussain, Advisor Banking & Insurance Subcommittee Ateeq ur Rehman and others attended the meeting.

    MD SBP-BSC further stated that everything has been transferred from manual to digital processing and the customers have the freedom to get online anytime either from their home or office to apply for delivery of remittances without any paperwork while the customers will receive updates and objections (If any) about his transaction on his/ her registered email address.

    While assuring full support and cooperation, he stressed that the business and industrial community must come forward to adopt the digital mode for foreign exchange in which the customers can get registered themselves and track progress of case while relevant bank staff is also intimated about the progress and history of all the transactions is also maintained in a paperless environment.

    Vice President KCCI Shamsul Islam Khan, in his remarks, pointed that the State Bank, in any economy, plays the role of a heart in the economic development of the country by ensuring smooth circulation of funds and it was heartening to see that the State Bank has also been responsibly playing its role in an efficient manner which can be gauged from improved economic indicators particularly exports and remittances which have witnessed substantial growth.

    “However, the growth in remittances being witnessed nowadays may not last long hence, the State Bank needs to come up with some kind of the effective policy or incentive package which encourages Non-Resident Pakistanis (NRPs) to invest in numerous sectors of the economy.

    Encouraging such investments by NRPs would prove would not only help in dealing with economic crises but would also promote industrialization and create abundant employment opportunities on long term”, he added.

    He also stressed the need to take concrete measures for effectively dealing with the menace of smuggling which terribly hinders the legal trade and causes losses to the national exchequer.

    In this regard, he particularly suggested to establish Common Industrial Zone or Common Industrial Park near Pak-Iran border where all Custom Duties/ taxes should be kept at minimum level while this zone should be fully equipped with required infrastructure and the gas and electricity supplies should be provided by Iran which would surely bring down the cost of doing business due to cheaper electricity and gas tariffs that would attract a large number of industrialists to set up their units and warehouses in this particular zone.

  • Tax help desk at FPCCI to be set up after consultation: Javed Ghani

    Tax help desk at FPCCI to be set up after consultation: Javed Ghani

    KARACHI: Muhammad Javed Ghani, Chairman, Federal Board of Revenue (FBR) on Monday said that a help desk to resolve tax problems of business community will be established at the apex trade body after consultation with FBR wings.

    He was replying to various issues highlighted by members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during his visit at the Federation House.

    Muhammad Javed Ghani said that he has noted the matters at large given by the members of the trade bodies and said the FBR Help Desk will be established in FPCCI. “However, it requires consultation with various wings of FBR in order to open the desk for productive outcome.”

    He further informed that the reduced human interactions is our policy towards which we are working and even we have improved the recent refunds in less period than it was earlier, which nearly is 70 to 80 percent more than the preceding period.

    He also said that frequent and purposeful interaction with FPCCI is being recognized to be a good move in the objective development of the economy of the country.

    Mian Nasser Hyatt Magoo, President, FPCCI said that it is high time to have paradigm shift in the tax structure to induce investment, promote production and grow economy instead of present revenucracy which remains the focus of FBR.

    He said that constitutional and lawful position given to FPCCI through Act of parliament to represent the private sector of trade, industry and services which has been diluted by FBR through marginalized interaction with apex body.

    He added that hardly any response is given by FBR against matters of members of trade bodies referred to FBR.

    He further stated that the revenue generating agents are being ignored by FBR, which is against the obligation which it owns.

    President FPCCI said that instead of negotiating with institutional representatives of FPCCI, FBR is attending Para shooters who have no locus standii to represent private sector stakeholders.

    He said that FBR should not accord market practicing tax lawyers and tax consultants to represent FPCCI in the FBR various committees.

    Mian Nasser Hyatt Maggo, President FPCCI said that FBR must come back to its past position since decade to negotiate trade, industry and business matters with/through apex body.

    The FPCCI collects fiscal improvement proposals from all the members’ bodies of trade and industry and CCIs to consider the paradigm changes in the present taxation for promoting economy with incremental tax revenue on sustainable basis.

    The apex body and its working on financial and other issues, if are taken up seriously with higher percentage of acceptance with higher level of seriousness of FBR would be a possible solution to make the budget which conduct business in harmony instead of amongst present conflicts and contradiction.

    The attention of the FBR was invited towards present leverage to groups other than FPCCI, which is against the lawful representation which FPCCI enjoys.

    It was said that the SMEs being said to be backbone of economy is being practically ignored and the persons of powerful and in-person connected groups have replaced the representation in decision making at FBR level.

    The members from different trade bodies invited attention of FBR towards CNIC condition on sale which is counterproductive to required sales tax collection as well as impede the industrial production and markets sales.

    Nowhere in the world CNIC or identity is asked from buyers, Pakistan is the only example set by FBR causing problems in business, in specific promoting the agitations on street by the agents of sales of produce, the conducting of small business be settled in peace by removing by removing CNIC condition for buyers.

    The participants invited the attention of Chairman FBR that still the entry of raw materials in part II of 12th schedule of Section 148 of ITO has not been facilitated, which is in the exclusive domain of FBR to resolve.

    The attention was also invited towards glaring example of not  entering raw materials and sub-component imported by vendors under SRO 655 but on the contrary all the component imported by assemblers have been assigned part II of the 12th Schedule of Section 148.

    This high handedness that weaker and SMEs segment not being well connected in the FBR committees are not being accommodated for otherwise on high reasonable ground.

    Other manufacturers also claimed continued ignorance of their requests pending with FBR with zero response.

    Tax structure on import of tea requiring rationalization was also put to the notice of Chairman FBR. Notices have become multiplied after the split of IRS commissionrates from earlier single unit to changed multiple units has eroded the concept of facilitation through One-Window.

    The same showcase notice is now originating from various windows opened in IRS.  The attention of Chairman FBR was also invited by the FPCCI towards the requirement of independence of tax judicial system, which presently negates the constitution and is pending since long for implementation in order to be constitutional compliant.

  • PSL becomes nuisance for citizens: Karachi Chamber

    PSL becomes nuisance for citizens: Karachi Chamber

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Wednesday expressed dissatisfaction over traffic management during Pakistan Super League (PSL) sixth edition saying that the return of cricket in metropolis has become the biggest source of nuisance for Karachiites.

    In a statement Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Zubair Motiwala stated that the return of cricket in metropolis has become the biggest source of nuisance for Karachiites nowadays as more than half of the city’s population suffers terribly for so many hours because of poor traffic management plan in which some of the most critical arteries are blocked which is neither acceptable to Karachiites nor to the business community, hence it must be revisited straightaway.

    Motiwala pointed out that due to complete blockade of roads around the National Stadium, traffic is usually diverted to other roads which causes severe traffic jams at all these roads throughout the day while, the residents of the affected areas, which are densely populated, have to make efforts from pillar to post each day to reach their destinations.

    “Moreover, two biggest hospitals of Karachi are also situated on a road leading to the National Stadium Road which is also closed during PSL.

    “We have been receiving huge number of complaints from patients and their relatives who are either visiting Agha Khan Hospital or Liaquat National Hospital or National Institute of Blood Diseases (NIBD) which is right next to National Stadium as it has been witnessed that many ambulances rushing towards these hospitals remain stuck up in traffic jams on daily basis which enhances the chances of more casualties hence, the city’s administration will have to shred the existing traffic management plan and come up with some other viable strategy in which the main roads should not be blocked at any cost.”

    The Business & Industrial community demands from the city’s administration, particularly Commissioner Karachi Naved Ahmed Shaikh and DIG Traffic Iqbal Dara to look into this serious issue and take steps to reduce the hardships for Karachiites by immediately revisiting the existing traffic management plan, Motiwala said, adding that cricket, which is a source of entertainment, should not become a source of torture for Karachiites who are already suffering badly on the streets of Karachi due to dilapidated state of the infrastructure.

    Zubair Motiwala pointed out that even the business activities suffer badly during PSL days as the citizens of Karachi, after undergoing worst traffic conditions, prefer to somehow reach their homes only and refrain from visiting commercial markets for buying purposes which brings down the commercial activities and causes immense losses to shopkeepers.

    “Although it is a bit difficult to give the exact number for the losses suffered by business community but it could go up to billions of rupees due to diverse range of businesses and a large number of markets including the well-known Bahadurabad, Tariq Road and Millennium Mall etc. where business activities get terribly affected due to road blocks”, he said, adding that who would come to visit Bahadurabad, Tariq Road, Millennium Mall or other nearby markets for shopping from North Karachi, Gulistan e Jauher or any other area when they know it is going to be an uphill task to reach these markets due to road blocks and subsequent traffic jams.

    “Every year, KCCI receives dozens of complaints mainly from the shopkeepers who complain about limited business activities due to PSL and the same has started again this year. Hence, being the premier and largest Chamber of the country, KCCI will not remain silent and raise a strong voice at all available platforms until relief is provided to the perturbed citizens of Karachi”, Chairman BMG said.

    He demanded that instead of closing down the main Stadium Road, police vehicles can be parked to guard the stadium while the number of policemen and Rangers troops must also be enhanced and each law-enforcers should be deployed on the roadside at a distance of at least 20 feet away from the other at all the surrounding roads which would not only secure the stadium by creating a stronghold for preventing any unpleasant incident but would also minimize the hardships for commuters during PSL.

  • SBP urged to extend refinance scheme for salary payments

    SBP urged to extend refinance scheme for salary payments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the central bank to extend the refinance scheme which was introduced for businesses in order to reduce the adverse impact of coronavirus pandemic.

    The FPCCI said that the State Bank of Pakistan (SBP) should extend the refinance scheme by one year for payment of wages and salaries, launched to support employees and prevent layoffs due to the COVID-19 outbreak in Pakistan.

    FPCCI President Mian Nasser Hyatt Maggo appreciated the initiative of SBP; introducing schemes like salary payments, deferred loans, introduction of temporary economic refinance facilities etc. to resolve the cash flow problems of businessmen and industrialists.

    He added that these schemes helped many industrial and service oriented sectors to retain employees during the Corona pandemic period. Under this scheme, SBP has released Rs. 238 billion to the private sector.

    While commenting on the refinance scheme for payment of wages and salaries, the FPCCI chief said that the aim of this scheme is to prevent layoff by financing wages and salaries of employees (permanent, contractual, daily wagers as well as outsourced) for all kind of businesses except for the government entities, public sector enterprises, autonomous bodies and deposit taking financial institutions.

    Since the companies that availed this credit facility through banks have not been recovered from the devastating economic impact of COVID-19, it would be advisable if SBP extend this scheme for more one year.

  • PIA offers 10pc discount on domestic, international tickets to Karachi Chamber

    PIA offers 10pc discount on domestic, international tickets to Karachi Chamber

    KARACHI: Pakistan International Airlines (PIA) has announced a 10 percent discount on air tickets of both domestic and international flights to members and staff of Karachi Chamber of Commerce and Industry (KCCI).

    The discount is available to members and staff at newly PIA outlet inaugurated at KCCI premises, a statement said on Wednesday.

    The discount is available at 10 percent on domestic and international flights not only to KCCI members and staff but also their family members.

    In this regard, a Memorandum of Understanding (MoU) was signed by Chief Executive Officer (CEO) PIA Air Marshal Retd. Arshad Malik and President KCCI M. Shariq Vohra at a ceremony organized at KCCI which was also attended by Chairman Businessmen Group (BMG) & Former President KCCI Zubair Motiwala, Senior Vice President KCCI Saqib Goodluck, Vice President Shamsul Islam Khan, Former Presidents Younus Muhammad Bashir, Shamim Ahmed Firpo & Junaid Esmail Makda and others.

    Speaking on the occasion, CEO PIA Arshad Malik paid glowing tribute to Late Siraj Kassam Teli for his exceptional services to the country, particularly the business & industrial community.

    “Because of his splendid work, Siraj Teli would go down in the history and will always be remembered. He was a fatherly figure who fearlessly raised voice for the rights of business community and Karachi city,” he added.

    He informed that PIA has recently airlifted a cargo of kinnow and was particularly focused on providing cargo facilities at competitive rates hence, KCCI members should use PIA’s cargo service for sending their cargoes at corporate rates which will be kept lower than the market rates. “You decide the price for cargo and we will live up to it,” he added.

    Arshad Malik was of the opinion that the revival of PIA was a challenging task in 2019 but by taking the ownership along with the commitment and sincere efforts, the performance of the national flag carrier was improved however, the airline suffered badly due to COVID-19 pandemic.

    He further informed that PIA management was taking every possible step for the betterment of the airline and in this regard, a Voluntary Separation Scheme (VSS) with attractive package was given to some 2000 employees.

    “Segregation of core and non-core groups was likely while the aircrafts acquired on expensive lease were being returned and replaced with better aircrafts at reasonable rates,” he added.

    In response to a suggestion pertaining to commencement of direct flights to northern areas, he said that although PIA was capable of providing direct flight but it was currently not possible due to lack of runways and refueling facilities in many areas of the country.

    “Keeping in view the potential of Gwadar, the number of direct flights has been raised to three from one as this city is going to become a major hub of economic and financial activities.”

    Chairman BMG Zubair Motiwala, in his remarks, appreciated all the efforts being made by CEO PIA to improve the performance of national flag carrier which has to be improved to such an extent that PIA thrives and flies high not only in the skies of Pakistan but also the rest of the world which can become possible only if the government facilitates and provide conducive environment with a focus to restore the lost glories of the national flag carrier.

    Keeping in view the performance of other local airlines, he advised CEO PIA to double the number of domestic flights with same kind of treatment and services which were being provided by PIA’s competitors that would surely yield positive results.

    “We are patriotic Pakistanis and we want to help and support PIA so we would prefer to fly to our destinations via national flag carrier but PIA must improve its services as per international standards,” he added while acknowledging the timely arrival and departure of PIA flights soon after Arshad Malik assumed charge as CEO PIA.

    Chairman BMG further appealed the entire business and industrial community to come forward, support and cooperate with PIA in whatever way they can so that PIA could come out of crises and attains success.

    In his welcome address, President KCCI Shariq Vohra, while appreciating the efforts being made by CEO PIA to pull the national flag carrier out of crises, stressed the need to make collective efforts and aggressively promote the good things happening at PIA while KCCI, with an impressive membership base, can become a good partner of PIA in various fields.

    He was of the opinion that the airlines business has been growing in Pakistan as AirSial, AirBlue and SereneAir have been enjoying thriving businesses with aircrafts flying at full capacity therefore, PIA must also focus on improving the market share by offering its service at competitive rates through cost reduction. “In this regard, the domestic industry has to be integrated with PIA which would certainly reduce cost and save valuable foreign exchange,” he added.

  • Value-added textile demands allowing cotton yarn import from India

    Value-added textile demands allowing cotton yarn import from India

    KARACHI: Value-added textile sector on Tuesday demanded the government of allowing cotton yarn from India as it was done in case of pharmaceuticals.

    In an online meeting with Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile, the representatives of value added textile sector said that without discrimination, in order to overcome the scarcity of yarn in the Pakistan, as the government previously allowed for import of pharmaceuticals, “it is also most crucial to allow import of cotton yarn from neighbouring country through Wagah border as the quality yarn is not available and prices are also multiplied to manifolds.”

    Wagah is a union council of Pakistan bordering with India.

    Allowing import of cotton yarn was demanded by Value-Added Textile Associations – Zubair Motiwala, Chairman, Council of All Pakistan Textile Associations (CAPTA), Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum, Riaz Ahmed, Central Chairman Pakistan Hosiery & Manufacturers Exporters Association, Tariq Munir, Zonal Chairman (SZ), Farukh Iqbal, Sr Vice Chairman PHMA (NZ), Ijaz Khokhar, Former Chairman, Pakistan Readymade Garments Manufacturers & Exporters Association, Haroon Shamsi, Former Chairman, Towel Manufacturers Association and Zia Alamdar, Former President, Faisalabad Chamber of Commerce & Industry in an online meeting held with Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile.

    The council raised: “The government, through Presidential Ordinance, must abolish all duties and taxes and allow duty free import of Cotton yarn which is the raw material of value-added textile sector in order to sustain and achieve milestone in enhancement of exports.

    “The government should also place ban on export of cotton yarn of 30 single or below till June 2021 ensuring availability of quality yarn to facilitate export sector to complete their export orders without hassle and unrest.

    “In view of shortage of wheat and sugar, the Government had allowed to import wheat and sugar and also banned their export to cater the national needs.”

    Likewise, anti-dumping duties on goods imported meant for re-export by Export Oriented Units and Manufacturing Bond should also be abolished. Moreover, to turn vision of the Prime Minister for enhancement of exports into reality and to control the declining trend in exports, the government should freeze the special tariffs of 7.5 cents for electricity and $ 6.5 for gas for at least next three years and provide uninterrupted and quality electricity and gas providing level playing field and competitive environment to enhance their export efficiency and materialize all exports orders.”

    The value-added textile sector has emphasized that the vision of Prime Minister Imran Khan for industrialization, increasing exports, creating trade surplus, generation of employment opportunities and earning precious foreign exchange shall become possible only when raw material – cotton yarn and uninterrupted supply of utilities is ensured on special tariffs approved for export-oriented industries. The Value-added Textile Exporters are highly worried over the unavailability of cotton yarn – which is basic raw material in the local market despite huge export orders are available with the value added textile.

    On the demand of textile exporters, the government, previously, considered removing the Regulatory Duty only. Sense of severe unrest and uncertainty prevails as exporters feel it “discriminatory” because in the case of cotton, the government had allowed complete duty-free import.

    Removal of Regulatory Duty has supported the value-added textile sector to some extent, whereas, the situation necessitates and demands to also remove the Customs Duty to fully support the value-added textile sector to complete their export orders which they have materialized for the next several months.

    The gravity of situation demands the government to immediately abolish Customs duty on import of cotton yarn by passing through a Presidential Ordinance, in the interest of export and the country.

    The Associations also expressed severe concern on the recent announcement of the Federal Government regarding discontinuation of gas to the industrial captive power plants which depicted a bleak picture in eyes of foreign buyers across the globe, particularly of US & EU who become doubtful as to how the Pakistani exporters will complete export orders?

    The buyers have also communicated that since there will be no gas and orders cannot be completed, therefore, they are thinking to divert the export orders given to Pakistani exporters to other countries.

    The Associations’ representatives lamented that 225 CPPs of Industries in Sindh were closed abruptly. The Government later clarified that the announcement was related to energy efficiency benchmark.

    The Associations reacted that the CPPs of industries were more efficient and productive as compared to CPPs of utility companies. More than a decade back the export industries invested in CPPs on the offer of the then Government when the utility companies were failed to provide required quality electricity and there were load-shedding problems.

    Now the sitting Government is asking to close the CPPs and take electricity from utility companies which is totally contradictory.

    The Associations stated that the utility companies neither have the required quantum of electricity to supply to industries nor have the adequate infrastructure available for the purpose, thus, the Government must refrain from such unwise move which will bring disastrous effects on industries and exports.

    Abdul Razak Dawood, Advisor to Prime Minister on Commerce & Textile gave patient hearing to the issues and problems confronting to the Value-Added Textile Industry and assured that he will take up the matter with the Prime Minister and Cabinet and the Government will consider and resolve some of the issued highlighted in the meeting.

    Value Added Textile Export Industry contributes around 62 percent in total exports, provide highest urban employment particularly to female workforce and supports approx. 40 allied industries.

    In view of its significant importance in the economy and free market mechanism, the Government must consider the appeal of value-added textile sector for duty-free import of cotton yarn to ensure availability of cotton yarn of good quality.

    Such state of affairs demands the Government to remove 5 percent custom duty on import of 30 single yarn and below count and the exporters, manufacturers and importers, shall be given full liberty to import yarn from any country till the scarcity of cotton yarn is controlled and required quantity of yarn is available in abundance in all Pakistani markets to complete the export order smoothly.