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Category: Trade & Industry

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  • KCCI rejects electricity tariff hike, demands immediate withdrawal

    KCCI rejects electricity tariff hike, demands immediate withdrawal

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has rejected the recent hike in electricity tariff and termed it disaster for the industry.

    The chamber also demanded the government to immediate withdraw the increase in electricity tariff.

    KCCI President Agha Shahab Ahmed Khan in a statement on Thursday said that the announcement of increase in rates of electricity ranging from Rs.1.09 to Rs.2.89 has come as a shock to the industries based in Karachi.

    “This is yet another blow to the trade and industry which is already suffering from losses as a result of lockdowns during Covid-19 pandemic and again due to devastating rainfalls in the city which has caused losses in billions of rupees,” he added.

    He urged Advisor to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh to immediately withdraw this unjust and ill-timed hike in electricity tariff which would further aggravate the hardships for Karachiites who are struggling really hard to recover from devastating impact of coronavirus pandemic and subsequently the massive damage to their assets including buildings, warehouses, machinery and materials.

    The damage is yet to be assessed when the water is cleared and some normalcy is restored.

    He pointed out that ECC and higher authorities have shown utter disregard for the miseries and losses suffered by people of Karachi, by approving yet another electricity tariff hike because ECC had already imposed a tariff increase in July this year by Rs2.89 per with immediate effect.

    Before the industrial, commercial and residential consumers could absorb the tariff hike in July’ 2020, yet another increase was approved to further squeeze the consumers in a calamity hit city.

    “Indeed it is a huge disappointment that the Federal Government, instead of providing relief to the already burdened citizens of Karachi during the ongoing difficult times, continues to take anti-business and anti-Karachi actions.

    “It is well known fact that the economic hub of Pakistan today is passing through worst possible crisis and suffering due to a crumbling infrastructure, lockdowns and urban flooding due to the heaviest rainfall in 90 year history”, he added.

    On the one hand, the Prime Minister and Army Chief have shown their resolve to rescue the city of Karachi from complete destruction and economic fallout of natural as well as man-made disasters, while the ECC and honorable Advisors are taking decisions which are contrary to the commitments made by the Prime Minister and COAS, he opined.

  • FPCCI praises SBP for timely action to avert coronavirus impact

    FPCCI praises SBP for timely action to avert coronavirus impact

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised State Bank of Pakistan (SBP) for timely action to minimize adverse impact of coronavirus on trade and industry, a statement said on Monday.

    “However, implementation of such measures is required to reach at the grass root level,” said Khurram Ijaz, Vice President, FPCCI, while chairing webinar on ‘Implications of Covid-19 on the Financial Market/Institutions of Pakistan.’

    He said that outbreak of Coronavirus has not only affected the trade and industry of Pakistan, but drastically declined the performance of the financial market and major economic indicators in the economy.

    During discussing, Arjumand Qazi, Group Head (SME)- Pak Brunei Investment said that SBP has indeed extended maximum support to the trade and industry in term of designing and announcing effective financing schemes since April 2020.

    However, commercial banks and other financial institutions are still reluctant to extend such facilities to rural businesses.

    Khurram Shehzad renowned financial expert appreciated SBP’s measure to decrease the interest rate from 13 percent to almost 7 percent in last 6 months.

    He said that it is high time that commercial banks, investment companies and other stakeholders of the financial market play their part in the economic and financial survival of the economy.

    Hasan Raza, Head of Project Management in Research Dept. Pakistan Stock Exchange (PSX) said that Pakistan Stock Exchange fell down to 27000 index point in February 2020 at the start of the lockdown, but with the efforts of PSX, the KSE index point has reached upto 40,000 index point in August 2020.

    He further shared information regarding newly launched mutual funds and new Sukuk bonds in 2020.

    While expressing his views, Zubair Haider Sheikh, Head of Cooperate & Investment Banking-Dubai Islamic Bank said that as the country is moving back to normal activities amid ease of lockdown in the economy, the commercial banks must come upfront to expand Temporary Economic Refinance Facility (TERF) as well as long term financing schemes to the masses.

    Ahsan Mahenti, Managing Director, Arif Habib Commodities while appreciating SBP’s initiatives to fight the financial losses bared by the business during lockdown however, there is still need of incentive driven policies to support the corporate sector as well.

    Participants of the webinar included Ali Kamal, Head of Research National Investment Trust (NIT), Imran Khali, Chairman Pak-Maldives Business Councils of FPCCI, Shabbir Mansha, Convener FPCCI Standing Committee on Custom Affairs, Amber Paracha Head of Credit Risk Management of Pak-Brunei Investment, members Trade Bodies and prominent members of FPCCI appreciated the initiative by FPCCI for conducting such informative seminars on various topics economic issues highlighting the problems and solutions which is highly commendable.

  • Sindh EPA takes measures to control Industrial, vehicular emissions

    Sindh EPA takes measures to control Industrial, vehicular emissions

    KARACHI: Sindh Environmental Protection Agency (SEPA) has taken major steps to control industrial and vehicular emissions and retain 40 percent improvement in air quality.

    The air quality of Karachi city has improved by 40 percent after imposition of lockdown to contain spread of COVID-19.

    In this regard, SEPA issued directives to all industrial associations to conduct air quality monitoring in their industrial areas to check air quality degradation and plant saplings in huge number in and around their factories.

    Industries have been asked to submit their tree plantation plan within one week into the office of SEPA.

    Industries have also been directed to improve the conditions of their buses of shuttle service to control their air emissions and take practical measures to facilitate smooth plying of vehicles in and around their factories.

    Moreover, SEPA is also re-launching its vehicular emission control campaign throughout the city to fine/penalize smoke-emitting vehicles with the help of traffic police.

    In this regard an emergency meeting of all industrial associations of the city including Federal B Area, North Karachi, SITE, and Super Highway was held under the chairmanship of Director General SEPA Naeem Ahmed Mughal at the office of SITE Association.

    The meeting was attended by Sulaiman Chawla President SITE Association, Shaheen Ilyas President Super Highway, Nasim Akhtar President North Karachi Industrial Association, Noman Yaqoob President Landhi Association, Abdullah Abid F.B.Area Industrial Association, Sheikh Umer Rehan President Korangi Association of Trade and Industry, Naveed Shakoor President Bin Qasim Association besides prominent industrialists Zubair Motiwala, Salim Pareekh and Javed Balwani.

    Representatives from SEPA were Director Regional Office Karachi Aashiqui Langha, Deputy Directors Waris Gabol and Imran Sabir besides DG SEPA.

    Addressing the meeting, the DG SEPA Naeem Ahmed Mughal said that for the vigorous enforcement of environmental laws all necessary measures are being taken by the environmental watchdog on priority basis.

    He informed the participants of the meeting that SEPA had conducted a comparative study of air quality of Karachi prior to lock-down and during the lock-down; which revealed a 40 per cent improvement in air as a result of lock-down.

    He pointed out that deteriorating air environment is equally a matter of grave concern for all of us and its control is possible with the collective efforts of all stakeholders including industries and vehicle owners/transporters.

    He further said that to improve the air quality in the city all the industrial associations should start beautification campaigns at the major roundabouts in their areas along with plantation at the open spaces to improve the air quality parameters.

    DG SEPA further directed that all the industrial associations should conduct an air quality study in Karachi to analyze the present air quality with regard to its improvement.

    He also underscored the need of environment-friendly transport for commuting the industrial workers to help mitigate their air emissions.

    The DG SEPA specifically directed for the proper disposal of solid waste being generated by the industries which includes both hazardous and non-hazardous industrial waste.

    “Wastewater treatment plants should be installed as per the directives of Water Commission and in case of any negligence on this score, SEPA will take stern action’, he warned.

    He further said that the culprits who are responsible for the burning of solid waste in any area will be dealt with iron hand. SEPA simply needs cooperation of public in this regard to complain us as and when any such incident occurs in their area.

    At the end, he vowed to provide technical assistance to industries with regard to industrial pollution control.

    It may be recalled that according to data collected in April 2020 during the lock-down by SEPA from different locations of six districts of Karachi the average particulate matter 2.5 (PM 2.5) – the most lethal and stubborn air pollutant – was improved by 39 percent as compared to the same data taken from 76 locations of the city in February 2020 before the lock-down. Likewise, the noise level of the city was also improvement by 19 percent during the lock-down.

    The district-wise details of the data revealed that air quality of districts Central, East, South, West, Malir and Korangi was improved by 8, 61, 40, 37, 25 and 54 percent respectively while an improvement in the noise level of Central 42, East 20, South 15, West 17, Malir 2 and Korangi 26 percent occurred during the lock-down as compare to before lockdown.

  • Iqbal Tabish appointed as FPCCI secretary general

    Iqbal Tabish appointed as FPCCI secretary general

    KARACHI: Muhammad Iqbal Tabish has been appointed as general secretary of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) with effect from August 19, 2020, said a statement.

    FPCCI president Mian Anjum Nisar appointed Muhammad Iqbal Tabish as the Secretary General of the organization in accordance with rules and procedures laid out in Trade Organization Ordinance of Pakistan.

    The appointment of Iqbal Tabish has been termed as a hopeful prospect for FPCCI in view of his wide experience of working with public and private organizations at national and international level.

    Prior to assuming office of the Secretary General FPCCI, Iqbal Tabish has served in Ministry of Industries and Production as Chief Executive Officer of Pakistan Industrial Development Corporation (PIDC) and Secretary General SAARC Chamber of Commerce and Industry.

    He has also worked as a Senior Economist and Head (R&I) at WTO Cell of Trade Development Authority of Pakistan, Ministry of Commerce and has been associated with FPCCI as Director (R&D) in addition to other important assignments.

    Iqbal Tabish has a long term association with National and International organizations, which included Member, Economic Advisory Council (UNESCAP), Observer on World Banks’ Investment Climate Fund’s Program on Climate Resilience, Stakeholder Advisory Network-CIF, Steering Committee Member of Sweden Standards Institute (South and East Asia) and has been regular invitee to Expert Group Meetings on SAFTA, Honorary Secretary General, China-South Asia Business Council for Promotion of International Trade (CCPIT), Yunnan and Sichuan Province of Peoples’ Republic of China and Member, Advisory Committee of SAARC Trade Portal Network of GIZ in addition to involvement in projects of UNDP and World Bank Group.

    Scholastically enriched, Iqbal Tabish is a Ph. D Scholar in a leading university and holds M. Phil Degree in Management Sciences (Finance) along with Master Degree in the faculty of Economics as well as Business Administration.

    He has contributed in the development of literature on trade, economics, intra-regional transport and connectivity, energy, climate change and author of several publications in the similar areas.

  • Business confidence falls on COVID: OICCI survey

    Business confidence falls on COVID: OICCI survey

    KARACHI: Business confidence survey conducted throughout Pakistan during May – June 2020, were largely influenced by the COVID-19 pandemic which has negatively impacted nearly all the businesses, Overseas Investors’ Chamber of Commerce and Industry (OICCI) said in its latest survey released on Wednesday.

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  • Tenure extension request of trade bodies rejected: Razak Dawood

    Tenure extension request of trade bodies rejected: Razak Dawood

    KARACHI: Abdul Razzak Dawood, Advisor to Prime Minister on Commerce and Investment, has said that there is no provision in the law to extend tenure of trade bodies.

    “There is no consideration of extending tenure of trade bodies office bearers and even the law doesn’t allow such proposal,” a statement issued by United Business Group (UBG) on Monday quoting the advisor.

    He was talking to a delegation led by Patron in Chief of United Business Group (UBG) and former Chief Executive of Trade Development Authority of Pakistan (TDAP) SM Muneer.

    Secretary Commerce Salih Farooqui, Former Presidents of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Zubair Tufail, Abdul Rauf Alam, Khalid Tawab, Sohail Altaf, Zafar Bakhtayari and Malik Sohail Hussain were also present at the occasion.

    Dawood mentioned that office bearers of FPCCI and some other trade bodies have brought the idea to extend the term of their office for one more year in the backdrop of Coronavirus pandemic situation but it was rejected because there is no any provision in the related laws.

    While answering a question asked from the delegation he clearly said that elections of trade bodies would held on the time as the Trade Bodies Ordinance provides one year tenure for the office bearers.

    In the meeting SM Muneer applauded the measure to curb coronavirus taken bay Prime Minister Imran Khan and his team.

    He said that with the grace of Almighty now the spread of infection is under control, however another high spread is feared during Eid ul Adha. “People should follow the SOPs and precautions to avoid any break out,” he added.

    SM Muneer said that gradually the virus spread is lowering down globally and more exports orders were expected.

    He said that this the time to activate related TDAP official and commercial attachés globally to avail the opportunity.

  • RTO-III Karachi assures exporters of resolving pending issues on priority

    RTO-III Karachi assures exporters of resolving pending issues on priority

    KARACHI: Dr. Amir Ali Khan Talpur, Chief Commissioner Inland Revenue, Regional Tax Office (RTO)-III, Karachi has assured the exporters of resolving pending issues on priority basis.

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  • FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over huge amount of exemptions, concessions granted under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTA).

    The apex trade body urged the government to redesign the FTAs and PTAs with a view to promote the domestic industry of Pakistan, as the government has suffered revenue loss of over Rs45 billion during FY 2019-20 due to these agreements signed with different countries.

    Moreover, the general exemption on imports from China under this agreement has caused revenue loss of Rs 26.86 billion during this period.

    FPCCI President Mian Anjum Nisar suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    He recommended the government to include maximum finished goods which can be exported to China on tariff line offered by China to ASEAN countries.

    He demanded that the concerned stakeholders should also be taken on board while framing and finalizing the recommendations in this regard.

    Referring to the data of the Federal Board of Revenue, he stated that the government has suffered revenue loss of Rs 45.020 billion during current fiscal year due to the FTAs and PTAs signed with different countries.

    According to the reports, figures reveal that the general exemption on import from SAARC countries caused revenue loss of Rs 231 million during this period.

    The general exemption on import from SAARC countries under SAFTA Agreement has revenue impact of Rs1.602 billion.

    Similarly, the general exemption on import from SAARC countries under SAFTA Agreement caused revenue loss of Rs 15 million.

    The general exemption on import from China under the FTA has revenue impact of Rs6.911 billion during 2019-20.

    The general exemption on import from Malaysia under PTA caused revenue loss of Rs 2.517 billion during this period. Under the exemption on import from Indonesia under Pak-Indonesia PTA caused revenue loss of Rs3.65 billion.

    Mian Anjum Nisar suggested the government to devise a strategy in the light of impact on domestic industry, convincing other countries to liberalize their import policy by reducing tariff lines and easing sensitive list for Pakistan merchandise.

    He said that during the first phase of FTA with China, Pakistan’s trade deficit had improved from 2.9 billion dollar to over 12 billion dollars over the last decade.

    He suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    FPCCI President said that local cost of production is already high on account of high tariff of electricity and gas, coupled with import duties on inputs, making the local production uncompetitive.

    He said that Free Trade Agreements signed with different countries without taking the real stakeholders onboard, are damaging the local industry, as imports of several products under FTA with these countries are subject to zero percent import duty.

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  • OICCI members pay one third of total tax collection

    OICCI members pay one third of total tax collection

    KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) said that the foreign investors operating in Pakistan and multinational companies (MNCs) have contributed around 1/3rd of the total tax collection by Federal Board of Revenue (FBR) during fiscal year 2019/2020.

    (more…)
  • Industry rejects cut in gas supply; terms anti-business move

    Industry rejects cut in gas supply; terms anti-business move

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday strongly rejected the cut in gas supply for industrial consumers and CNG stations.

    Chairman Businessmen Group (BMG) and Former President KCCI Siraj Kassam Teli and President (KCCI) Agha Shahab Ahmed Khan, while totally rejecting SSGC’s load shedding schedule for Industrial Consumers and CNG Stations, stated that this unjust and anti-business move would completely destroy the industries who are already going through the toughest time and questing really hard for survival particularly in an extraordinary situation caused by coronavirus pandemic.

    In order to overcome the ongoing electricity load shedding, SSGC has announced to carry out gas load shedding for three days to be suffered by industrial consumers, captive power plants and CNG stations which would prove detrimental for the industries who are already in deep crises and at the verge of complete collapse due to negative impact of lockdown imposed since March 2020, Siraj Teli and Agha Shahab said while terming SSGC’s load shedding as ‘sheer injustice’ and ‘conspiracy’ against the city of lights which is deliberately being plunged into darkness.

    They pointed out that the government has always reiterated its resolve to provide uninterrupted electricity and gas supply to five export-oriented zero-rated sectors which hardly cover up around 1300 to 1500 industries but what about the rest of 14,500 industries, out of a total number of 16,000 industries in Karachi which continue to remain deprived as no relief has ever been given and they, despite being taxpayers, have to bear all the anguish and go through gas and electricity load shedding, exorbitant tariffs, infrastructure and other civic issues.

    Instead of providing relief to all the industries in the ongoing extraordinary situation, the ECC recently approved Rs2.89 per unit tariff hike in KE Bills and now the hardships would aggravate further as the business community is being compelled to face gas load shedding for three days a week which is unacceptable, they added.

    They criticized that if the government has to create so much trouble through such anti-business policies then they should formally make an announcement once and for all that all the industrialists should immediately shut down their factories forever and go somewhere else.