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Category: Trade & Industry

Trade & Industry news covering business developments, industrial growth, manufacturing trends, and economic policies shaping domestic and global markets.

  • Jazz recognized for driving change beyond workplace

    Jazz recognized for driving change beyond workplace

    KARACHI: To recognize the commitment in improving the lives and livelihood of women through technology, the Overseas Investors Chamber of Commerce and Industry (OICCI) awarded Jazz with the ‘Driving Change Beyond Workplace’ award at the Women Empowerment Awards 2021 held on Thursday.

    Abdul Aleem, Secretary General, OICCI presented the award to Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: OICCI organizes Women Empowerment Awards

    Jazz is dedicated to enhancing diversity and women’s empowerment within its business model and focuses on uplifting women in the society through the power of the internet.

    Female specific products and services are designed to help address many of the wider gender inequalities by digitally enabling them to access health, financial, and other life-enhancing services.

    READ MORE: Jazz Digital Park inaugurated in Islamabad

    The company’s digital financial service, JazzCash, under the GSMA Connected Women Commitment Initiative, has committed to increase the proportion of women in their mobile money customer base by 2023. In addition, all its sustainability programs ensure 50% women participation ranging from urban to rural areas so women can lead the change.

    “Inclusivity being at the heart of all our policies, we have always paved the way for gender equality within the organization as well as the society at large. This recognition further validates our holistic approach towards empowering women internally and externally and renews our vigor as we move forward in our journey of creating a digitally inclusive ecosystem in Pakistan,” said Wajida Leclerc, Chief People Officer, Jazz.

    READ MORE: Jazz’s investment in Pakistan crosses $10 billion

    Jazz is an equal opportunity employer and is creating and nurturing an inclusive and empowering culture. It’s one of the first telecom companies with a high female representation in its executive leadership. Not only does the company promote gender diversity in its work environment, it also has programs focused entirely on attracting and facilitating the female gender including the most recent ‘She’s Back – Women Returnship Program’ for women looking to return to work following a career break. Jazz is among the few early adopters in Pakistan to fully commit itself to the Women Empowerment Principles, introduced by UN Women and the UN Global Compact that focus on steering corporates to promote gender equality and women empowerment.

    Champions of Change Coalition, a globally recognized, high-profile coalition working to achieve change on gender equality issues recently welcomed Jazz CEO Aamir Ibrahim as the coalition’s member aiming to accelerate progress in creating more inclusive and progressive organizations in Pakistan.

    READ MORE: PTA renews Jazz license for $449.2 million

  • POS retailers to get refunds automatically: Tariq Mustafa

    POS retailers to get refunds automatically: Tariq Mustafa

    KARACHI: Tariq Mustafa Khan, Chief Commissioner Inland Revenue, Regional Tax Office (RTO) Karachi has said that retailers who installed Point of Sales (POS) will gain refunds automatically.

    “The retailers will also not subject to audit,” he said while speaking with office bearers of Karachi Chamber of Commerce and Industry (KCCI) on Thursday.

    “POS, which was currently for business falling under Tier-I, will gradually be installed all over the country with a view to save the economy from tax evasion”, he added.

    READ MORE: All shopkeepers to install POS machines: CTO Chief

    President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Chairman of Special Committee for Small Traders Majeed Memon, Chairman GST/ SRB Subcommittee Shoaib Ahmed Faridi, Chairman Federal Taxation Subcommittee Hilal Ahmed Sheikh, KCCI Managing Committee Members and others were also present at the meeting.

    Chief Commissioner RTO explained that any shopkeeper who comes under the purview of seven conditions defined for Tier-I will have to fulfil the POS condition.

    “Shopkeepers must come out of fear as they will be fully protected in case of any illegal action. Our doors are always open and you can visit my office anytime for assistance without seeking appointment,” he assured and advised shopkeepers to submit written complaints in case they were being victimized, ill-treated or blackmailed by any officer of his department. Action will be taken by initiating investigation within 24 hours with a view to create a taxpayers’ friendly environment.

    READ MORE: FBR posts officials at retail outlets for sales monitoring

    “Whoever has received notices pertaining to POS, his business must be falling in any of the seven categories defined in Tier-I. We don’t want to close down your business. This system is purely for the benefit of businesspeople hence, maximum number of people must become part it,” he said.

    Appreciating President KCCI’s suggestion, he agreed that his department’s team will hold awareness sessions not only at KCCI but also at respective markets. “It is not only the responsibility of Muhammad Idrees to support and facilitate shopkeepers but ours as well,” he added.

    Tariq Mustafa Khan, while congratulating KCCI Office Bearers on assuming charge of Chamber’s affairs appreciated all the efforts being made to highlight the problems pertaining to POS and other taxation issues.

    READ MORE: Point of sale machines allowed tax credit

    Speaking on the occasion, President KCCI Muhammad Idrees stated that to properly and effectively implement POS system on Tier-I Retailers without troubling the shopkeepers, the field formation teams need to play a more proactive role while awareness has to be raised amongst shopkeepers who currently stand unguided and were reluctant to seek assistance mainly due to existing negative perception about tax authorities. “The past practices of field formation officers are discouraging shopkeepers to integrate with FBR via POS which requires attention”, he added.

    He also pointed out that Gul Plaza was not an airconditioned mall but due to inevitable requirement at the basement, some shopkeepers have installed air conditioners and similar was the case at some other malls as well hence, all such shops should not be held responsible for failing to comply with POS condition as these cannot be treated under Tier-I.

    Muhammad Idrees further argued that all laws being devised by FBR including POS system remain confined to business community of Karachi only at initial phase whereas it appears that the rest of the country stands exempted.

    READ MORE: CTO Karachi seals three retail shops on POS failure

    He advised Chief Commissioner to hold awareness sessions at KCCI for shopkeepers of markets and malls and these sessions must also be organized at relevant markets as well so that misunderstandings and grievances could be dealt as people were largely unaware to such an extent that they were even not aware that shopkeepers can also get rebate under POS.

    He said that taxpayers were being harassed by issuing notices for monitoring and audit of multiple tax years and were compelled to comply to these notices within a short period of merely 4 to 5 days. In this regard, he proposed that field formations should be restricted from initiating proceedings of multiple years while adequate time period has to be prescribed under the law which should be provided to taxpayers for responding to a particular notice.

    He sought Chief Commissioner’s support in improving the business climate, rationalizing taxation and reducing cost of doing business so that the country could be brought to the level of realizing its true economic potential.

  • PYMA fears cancellation of export orders

    PYMA fears cancellation of export orders

    KARACHI: Pakistan Yarn Merchant Association (PYMA) has expressed fear cancellation of export orders due to non-production after suspension of gas to industries.

    Saqib Naseem, Central Chairman PYMA, Junaid Teli, Vice Chairman PYMA, have expressed deep concern over non-supply of gas to industries and appealed to Prime Minister, Imran Khan, Minister Energy, Hammad Azhar and Adviser Trade & Investment, Abdul Razzak Dawood to restore gas supply to Karachi’s industries, so that the industries may be prevent from catastrophe.

    READ MORE: Saqib Naseem elected central chairman PYMA

    In an appeal, PYMA office-bearers said that steps should be taken to get the yarn industry out of crisis otherwise all the industries will be ruined.

    They said: “The suspension of gas supply to export-oriented, general industries, SMEs, has severely affected production activities, which has caused great frustration to exporters and they are worried that if the gas is not restored at full pressure as per the demand of the industries then how will they fulfil the foreign orders in time.”

    READ MORE: PYMA demands cotton import through land routes

    They drew officials that if exporters fail to deliver export shipments as promised, there are fears of massive cancellation of export orders. “As a result, exporters will face huge financial losses as well as a huge negative impact on domestic exports.”

    Saqib Naseem and Junaid Teli appealed to Prime Minister, Imran Khan, Minister Energy, Hammad Azhar and Adviser Trade & Investment, Abdul Razzak Dawood to resolve the gas crisis and a policy should be formulated for taking the industrialists of Karachi out of serious crisis, so that the wheel of industries running smoothly and the country’s economy can be strengthened and the country’s exports can be increased also.

    READ MORE: PYMA demands cut in duty rates on polyester yarn import

    PYMA office-bearers warn the government that if the gas is not restored immediately then industries will be locked up and unemployment will flood. With the sharp decline in our exports, our dependence on imports will increase, which is contrary to the vision of Prime Minister Imran Khan.

    Therefore, to make it easy to run the industries to fulfil the vision of the Prime Minister. In order to create more industries and create more employment opportunities and by promoting exports, the country can move faster on the path of economic development.

    READ MORE: Yarn merchants appeal for not imposing regulatory duty

  • OICCI organizes Women Empowerment Awards

    OICCI organizes Women Empowerment Awards

    KARACHI: The Overseas Investors’ Chamber of Commerce and Industry (OICCI) on Thursday organized Women Empowerment Awards 2021 to recognize the growing importance of women towards creating an enabling environment necessary to accelerate the economic growth in the country.

    OICCI initiated various research and has been holding annual competition among the members by recognizing those who have focused on women empowerment. “Increasing Women’s inclusion in the Pakistan Economy” a policy paper by OICCI has been shared with the Ministry of Human Rights last year.

    READ MORE: Ghais Khan elected OICCI president

    President OICCI Ghias Khan on the occasion said: “OICCI had initiated the OICCI Women Empowerment initiative in 2017 and has been regularly advocating for women empowerment among its membership. The fourth (2021) edition of the awards this year was organized to recognize the progress made by OICCI members in raising the engagement of women within their respective organization and give awards to the outstanding performers.”

    The awards were judged by an independent jury who vetted the performance of the companies from different aspects and awarded the best performers overall and in seven separate categories.

    READ MORE: OICCI expresses dismay over FBR action against mobile operator

    Three companies emerged victorious across all the categories and won top three positions: Procter & Gamble Pakistan and Telenor Pakistan were declared the first and second runner-up respectively while Unilever Pakistan won the top position and declared winner of “OICCI Women Empowerment Award 2021.”

    Special Recognition Awards were given in seven categories. Nestlé Pakistan won in the ‘Leadership & Strategy’ category; Mobilink Microfinance Bank in ‘Gender Balance Workforce’; Standard Chartered Bank in ‘Work Life Integration’; Bank Alfalah in ‘Women Leaders Development’; Pakistan Mobile Communications (Jazz) in “Driving Change Beyond Workspace”; TRG (ibex. Pakistan) in “Notable Growth in Women Empowerment”; and L’Oreal Pakistan bagged the ‘Top Performer amongst companies of 300 employees’ Award.

    READ MORE: OICCI members pay one third of total tax collection

    The ceremony was attended by a large number of CEOs and corporate professionals from different OICCI member companies, as well as diplomats and other distinguished guests.

    The keynote speakers included the Political Counsellor at British High Commission, Iona Thomas; European Union Ambassador to Pakistan, H.E. Androulla Kaminara; and Executive Vice President Unilever, Annemarieke de Haan.

    The speakers termed OICCI the trendsetter for women empowerment in Pakistan and advised that the corporate sector across Pakistan should replicate the ‘OICCI Women’ initiative to foster economic growth of the country.

    Deputy Governor State Bank of Pakistan (SBP), Sima Kamil, during a panel discussion, lauded the efforts of the OICCI and observed that OICCI Women is a great platform to create a movement for women empowerment in the country and appreciated the OICCI initiative to publicly acknowledge the efforts of member companies to give women equal employment opportunity and congenial working environment for the economy to grow.

    READ MORE: Business confidence falls on COVID: OICCI survey

    The speakers also emphasized that empowerment of women and gender equality are essential tools to achieve sustainable development in a global world. Therefore, it is important to bring women into the mainstream in all sectors, to build strong economies and improve the quality of life for women, men, families and communities alike.

    At the conclusion, Secretary OICCI, M. Abdul Aleem, hoped to see OICCI Women initiative become an inspiration for all organizations across the country and joining hands for a greater cause.

  • Industry protests against gas shortage at SSGC

    Industry protests against gas shortage at SSGC

    KARACHI: Hundreds of demonstrators on Wednesday gathered outside the head office of Sui Southern Gas Company (SSGC) to demand immediate restoration of gas supply to industry.

    The demonstrators included the leadership of Businessmen Group and Karachi Chamber along with Presidents/ Representatives of All Industrial Town Associations and sector-specific trade associations.

    They warned that this campaign to demand immediate restoration of gas supply at all the industrial zones would continue and may intensify further with each passing day until gas supply to all the industrial units is fully restored and normalized.

    READ MORE: PM appealed restoring gas to Karachi industrial zones

    Accompanied by prominent business figures, Chairman BMG Zubair Motiwala, Vice Chairman BMG Jawed Bilwani and President KCCI Muhammad Idrees expressed deep concerns over government’s inattentive attitude towards resolving the most pressing issue being suffered by the business and industrial community of Karachi where the industrialists were suffering huge losses due to no gas or low pressure.

    The industrialists of Karachi were totally stunned and disappointed to see government’s sheer negligence in response to press releases, appeals and also a recent press conference over looming gas/ RLNG crises being suffered since last more than 100 days.

    READ MORE: KCCI holds awareness seminar on Pakistan Single Window

    They said that losses of up to Rs45 billion were being suffered each day due to unavailability of gas to Karachi, which despite facing so many challenges at almost all the fronts, continues to contribute more than 68 percent revenue to the national exchequer, 54 percent to national exports while 52 percent of textile exports also take place from Karachi.

    While referring to erroneous allocation of 211 mmcfd gas from Sindh’s resources to SNGPL, BMG and KCCI Leadership demanded that in order to revive the industrial activities in Karachi, Sindh’s gas has to be returned to the province as it was highly unfair to keep the industries of Karachi deprived of Sindh’s own gas resources.

    They said that the rising demand for gas in Baluchistan during winter season was being fulfilled by SSGCL alone which receives 125mmcfd gas from Sui whereas SNGPL, which takes away 180mmcfd from Sui, stands completely spared from sharing the burden of rising gas demand in Baluchistan which was beyond anyone’s understanding.

    READ MORE: KCCI urges SBP to restore PKR at Rs150 to dollar

    They stressed that the rising demand for gas in Baluchistan has to be meted out by SSGCL and SNGPL as per ratio of gas being received by them which means that the extra demand of 160mmcfd in Baluchistan during winter should be rationally divided with 41 percent (65mmcfd) burden on SSGCL and the remaining 59 percent (95mmcfd) must be borne by SNGPL.

    They were of the opinion that gas has to be supplied without any differentiation to all the industries including General, SMEs and export-oriented industries as they all go hand-in-hand. The government has to realize that the general industries were an integral part of the value chain for exports which drive the economy.

    READ MORE: KCCI flays restoration of IR officers bank freezing powers

    In the national interest, BMG and KCCI Leadership appealed Prime Minister Imran Khan to take immediate cognizance of the situation and urgently respond to the Constitutional Right of the business community of Karachi to save the investment of industrialists and protect the soft and positive image of Pakistan globally, otherwise, if such alarming situation prevails, the country may face unrest and uncertainty due to closure of industries in Karachi, massive layoffs and drastic decline in the national exchequer further leading to chaos.

  • All shopkeepers to install POS machines: CTO Chief

    All shopkeepers to install POS machines: CTO Chief

    KARACHI: Dr. Aftab Imam, Chief Commission Inland Revenue, Corporate Tax Office (CTO) Karachi on Tuesday said that installation o Point of Sale (POS) machines to be extended to all types of shopkeepers.

    Although installation of Point of Sales (POS) machines is currently mandatory for bigger stores/ shops falling under Tier-1 retailers. “But eventually, every shopkeeper will have to get the POS machines installed at their premises which was the only way to ensure that all the taxes being generated from sales were directly being submitted to the national exchequer,” he added.

    READ MORE: FBR posts officials at retail outlets for sales monitoring

    He was speaking at a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI).

    Dr. Aftab Imam said in order to quickly process the Sales Tax Returns being submitted in huge quantities every month by the taxpayers, a state-of-the-art IDEA software has been introduced at the Inland Revenue Department where the pilot run was going on smoothly hence, it was being expected that this software will be fully launched in July 2022.

    READ MORE: Point of sale machines allowed tax credit

    He invited KCCI’s delegation to visit IR department to witness the performance of IDEA software which would make things easier and help in dealing with the problems being faced by taxpayers in submitting sales tax refunds.

    He informed that in order to improve the functioning of IR department, all the recruitments were now strictly being done purely on the basis of merit so that competent and hardworking workforce could be created which should facilitate the taxpayers instead of creating problems.

    Chairman Businessmen Group & Former President KCCI Zubair Motiwala, who joined the meeting via Zoom, pointed out that many issues mostly pertaining to issuance of notices have been lying pending at numerous offices of the IR department which need to be resolved on priority. Huge number of notices including Withholding Tax Notices and Audit Notices were being issued to taxpayers without any justification which was a very serious issue hindering government’s ease of doing business policy, he said, and suggested that instead of seeking entire data and documentation from taxpayers, FBR should only collect information about any suspicious/ missing transactions without disturbing the entire flow.

    READ MORE: CTO Karachi seals three retail shops on POS failure

    He said that although taxpayers have been regularly submitting all the documentations on monthly basis yet the FBR officials without taking the already submitted documentation into consideration, demand the same documents again and any failure or delay in doing so creates a lot of problems for taxpayers who find themselves stuck up in a web of harassment. “To deal with these kinds of issues, it is really necessary to adopt state-of-the-art and completely flawless IT solutions as per international standards which would reduce human interaction and help in minimizing the incidents of harassment”, he added.

    President KCCI Muhammad Idrees, in his remarks, suggested that FBR should focus on other cities as well because it seems that the current policies were being implemented in Karachi only which, despite so many odds and challenges, continues to contribute more than 65 percent revenue to the national exchequer yet, the business community of this city was being compelled to face notices and go through harassment. “Instead of squeezing the business community of Karachi, uniform policies have to be devised and effectively implemented all over the country”, he added and advised that tax collecting authority should initiate market-based awareness sessions which will be fully facilitated by KCCI.

    READ MORE: PM appealed restoring gas to Karachi industrial zones

    While appreciating the sincerity of Chief Commissioner towards promptly resolving the grievances being faced by the business community, Muhamad Idrees mentioned that a particular case, which was pending since last six months, was instantly resolved within one day as soon as it was brought to the notice Dr Aftab Imam who always tries his best to get other cases referred by KCCI resolved as well which pertain to any other department.

    He opined that tax was a by-product of a vibrant economy and efforts for increasing tax collection can only yield desirable results through sustainable growth in economic activities. The measures taken through Supplementary Finance Bill will have a significant impact on the poor and middle-class segments due to increase in prices of consumer goods.

    “The 17 percent GST imposed on formula milk, enhancement of tax from 5 percent to 12.5 percent on imported vehicles, 17 percent increase in prices of mobile phones exceeding $200 and Sales Tax on import of raw material which has also been increased from 5 per cent to 10 per cent while withdrawal of exemptions worth Rs31 billion will prove counterproductive to the economic growth and business development,” he added.

    He further stated that it was very unfortunate that FBR has been allowed to freeze banks accounts of the businessmen and can enter any premises. “Such discretionary powers to tax officials were fueling corruption in the system. Such measures should only be taken after the businessman is proven guilty and should not be used as a tool to harass businessmen.”

    Muhammad Idrees further pointed out that taxpayers were being harassed by issuing notices for monitoring and audit of multiple tax years and they were being compelled to comply to these notices in short period of time of merely 4 to 5 days.

    “Hence, I propose that the field formations should be restricted from initiating proceedings of multiple years at once. Also, some minimum time period should be prescribed under the law which should be provided to taxpayers for responding to a particular notice,” Muhammad Idrees said, “To make the tax mechanism more efficient, unnecessary powers of FBR should be curtailed, audit process should be reformed and laws should be passed for harassment by minimizing person to person contact.”

  • Ghais Khan elected OICCI president

    Ghais Khan elected OICCI president

    KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) has elected Ghais Khan as president for the term 2022.

    Ghias Khan is President & Chief Executive Officer, Engro Corporation Limited.

    The election of Ghais Khan announced at the 162nd Annual General Meeting of the OICCI held at the Chamber on Monday. Amir Rasool Paracha, Chairman & Chief Executive Officer, Unilever Pakistan Limited, was elected as the Vice President.

    The other elected members of the OICCI Managing Committee for 2022 are included: Ahmed Zahid Zaheer, Chevron Pakistan Lubricants (Pvt) Limited; Ali Ahmed Khan, FriesLandCampina Engro Pakistan Limited; Erum Shakir Rahim, GhaxoSmithKline Pakistan Limited; Ali Asghar Jamali, Indus Motor Company Limited; Samer Chedid, Nestle Pakistan Limited; Waqar Irshad Siddiqui, Shell Pakistan Limited; Markus Strohmeier, Siemens Pakistan Engineering Company Limited; and Rehan Muhammad Shaikh, Standard Chartered Bank (Pakistan) Limited.

    In his message to the members, Incoming President Ghias Khan said he strongly believes that Pakistan offers considerable growth potential for existing and new foreign investors.

    He lauded OICCI’s role in promoting Pakistan to potential foreign investors. He further appreciated the quality of OICCI Business surveys and the Chamber’s focused and continuing advocacy efforts for streamlining the taxation system, pragmatic policy input for increasing the efficiency of energy sector, initiatives on women empowerment, gender equality, climate and sustainability, and the Chamber’s role in pursuing an effective Intellectual Property Rights regime in Pakistan.

    Ghias Khan holds an MBA from the Institute of Business Administration, Karachi and also serves as Chairman on the Boards of Engro Fertilizers Limited, Engro Polymer & Chemicals Limited, Engro Enfrashare (Pvt) Limited, and Engro Energy Limited.

  • PM appealed restoring gas to Karachi industrial zones

    PM appealed restoring gas to Karachi industrial zones

    KARACHI: The business leaders of industrial zones of Karachi have appealed Prime Minister Imran Khan to restore gas supply to all industries.

    While fervently appealing Prime Minister Imran Khan and his aides to immediately restore gas supply to all industrial zones of Karachi whose gas supply remains suspended since last more than 100 days, Chairman Businessmen Group (BMG) Zubair Motiwala, Vice Chairman BMG & Chairman Pakistan Apparel Forum Jawed Bilwani and President Karachi Chamber Muhammad Idrees have stressed that the federal government must save its repute by putting an end to the discriminatory treatment being suffered by this city since long which has not only aggravated miseries for the business community and the Karachiites but has also dented the government’s efforts to ensure ease of doing business.

    READ MORE: KCCI holds awareness seminar on Pakistan Single Window

    Addressing a presser at Karachi Chamber of Commerce & Industry (KCCI) on Monday, Business Leaders urged that in order to revive the industrial activities, Sindh’s gas has to be returned to the province as it was highly unfair to keep the industries of Karachi deprived of Sindh’s own gas resources. They said that the industries of Karachi were deeply shocked and totally disappointed with the Government for neglecting and ignoring the repeated appeals and press releases over looming gas/ RLNG crises and remains indecisive in the burning matter for the last more than 100 days.

    General Secretary BMG AQ Khalil, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain along with President Site Association of Industry Abdul Rasheed, President Federal B. Area of Trade & Industry Haroon Shamsi, President Korangi Association of Trade & Industry Salman Aslam, Representative of Landhi Association of Trade & Industry Ajmal Afzal, President North Karachi Association of Trade & Industry Faisal Moiz, President Bin Qasim Association of Trade & Industry Elahi Buksh and President Site Superhighway Association of Industry Aamir Hassan Lari attended the presser. From Value-Added Textile Associations, Zonal Chairman Pakistan Hosiery Manufacturers & Exporters Association (PHMA) Abdul Rehman, Chairman Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) Sheikh Shafiq Jhok Wala, Chairman Pakistan Knitwear & Sweaters Manufacturers & Exporters Association Kamran Chandna, Chairman Pakistan Cotton Fashion Apparel Manufacturers & Exporters Association Aitazaz Ahmed Japanwala,  Chairman Towel Manufacturers Association Kashif Mehtab Chawla, Chairman Pakistan Bedwear Exporters Association Asif Javed & Chairman Pakistan Denim Manufacturer & Exporters Association Asif Riaz Tata also participated.

    READ MORE: KCCI urges SBP to restore PKR at Rs150 to dollar

    Chairman BMG Zubair Motiwala said that the Government’s promises and commitments to assure supply of gas to export industries appear to be an eyewash and a mere lip-service. It was highly unfair to deprive Karachi from Gas/ RLNG as this city, being the textile and industrial hub of Pakistan, alone contributes 68 percent revenue to the national exchequer and 54 percent to national exports while 52 percent of textile exports also take place from Karachi.

    “Yet this matchless contribution is not being taken into consideration and Karachi continues to undergo discrimination that has led to causing severe production losses of more than 66 percent due to reduced or no supply of gas. The inequitable conduct and discriminatory treatment with Karachi were totally unconstitutional hence intolerable and highly deplorable”, he said while fearing that the discriminatory actions/ policy towards Karachi will not only cause the industry to cripple but would also tarnish the vision of Prime Minister.

    Chairman BMG further stated that the rising demand for gas in Baluchistan during winter season was being fulfilled by SSGCL alone which receives 125mmcfd gas from Sui whereas SNGPL, which takes away 180mmcfd from Sui, stands completely spared from sharing the burden of rising gas demand in Baluchistan which was beyond anyone’s understanding. “We firmly believe that the rising demand for gas in Baluchistan has to be meted out by SSGCL and SNGPL as per ratio of gas being received by them which means that the extra demand of 160mmcfd in Baluchistan during winter should be rationally divided with 41 percent (65mmcfd) burden on SSGCL and the remaining 59 percent (95mmcfd) must be borne by SNGPL.”  

    READ MORE: KCCI flays restoration of IR officers bank freezing powers

    Zubair Motiwala stressed that a quantum of 211mmcfd gas, which was erroneously allocated to SNGPL in the past and the same has also been recognized by SAPM Gas and DG Gas, needs to be immediately returned to SSGCL. “Last year, the industry of Karachi entered into an agreement with the Ministry of Energy and Ministry Commerce to purchase extra quantum of gas at higher price for a period of five months to match the demand. However, we were denied of the same this year due to lack of planning.”

    Chairman Pakistan Apparel Forum Jawed Bilwani mentioned that Prime Minister’s excellent policy pertaining to Long Term Financing Facility (LTFF) encouraged industrialists to invest more than US$3 billion on purchase of machineries/ equipment which was likely to promote industrialization but this policy will be wasted due to unavailability and unjustified distribution of gas.

    READ MORE: KCCI expresses grief over human loss in earthquake

    Bilwani said that the Value-Added Textile Export Industries were saddened over such unwelcoming act and behavior of the Federal Government. Surprisingly, Government is well aware that the downfall in exports will also result into downward revision in the national revenue and will also negatively impact the foreign exchange coming to Pakistan where the national exports will ultimately face sharp decline, nevertheless, no response and continuous silence of the Government is not understood?

    He said that repeated appeals in the print media without any response from the Government has also tarnished the soft and positive image of Pakistan in the eyes of international community around the globe and has also raised several questions in the Diplomatic Missions of friendly countries in Pakistan whereby the Ambassadors and diplomats in Islamabad and Karachi have been continuously observing the situation and they may send their advisories to the buyers of their countries which may result to disruption or discontinuation of existing and new export orders.

    Addressing the presser, President KCCI Muhammad Idrees opined that instead of pursuing the pick & choose strategy, gas has to be supplied without any differentiation to all the industries including General, SMEs and export-oriented industries as they all go hand-in-hand. The government has to realize that the general industries were an integral part of the value chain for exports which drive the economy.

    He was of the view that neglect and disregard of repeated appeals of the industries of Karachi has also depicted a dark picture of Pakistan in the eyes of international community as the sitting Government which claims to be business and export friendly, has thus far not yet showed any concern towards the industrial slowdown and shattered export production in Karachi.

    BMG and KCCI Leadership along with Presidents of all other Trade Associations informed that the industries of Karachi were also being victimized and denied of other alternate fuels like Furnace Oil as the Department of Explosives, Petroleum Division was also not granting the required license to export industries which they applied for around two months ago. Production of export industries has come to a complete halt as they have no other alternate energy or power connection/ source.

    They said that empty Containers and Vessels to dispatch export shipments to various destinations worldwide were also not easily available due to ill-planning of the Government as the empty containers have been exported, reportedly, throughout last year, in huge quantities and mother vessels were also not coming to Pakistan. Such neglect on part of the Government was highly deplorable and the valuable struggle and hard efforts of exporters, encompassing over decades, to enhance exports will end in smokes and their new investments for further industrialization will be sabotaged, they added and asked, why should the industries of Karachi suffer on the cost of maladministration and nasty planning of non-serious elements in the Government who were responsible for the ongoing gas crises.

    The Industrialists also deplored the misleading contents of appeal of APTMA North Zone published on January 29 wherein the Spinners’ Association has attempted to misinform the Government mentioning that the industries in Sindh were getting required pressure to operate in contravention to the appeals given by APTMA South Zone.

    In the national interest, Zubair Motiwala, Jawed Bilwani, Muhammad Idrees and all Presidents of Trade Associations appealed Prime Minister Imran Khan to take immediate cognizance of the situation and urgently respond to the Constitutional Right of the business community of Karachi to save the investment of industrialists and protect the soft and positive image of Pakistan globally, otherwise, if such alarming situation prevails, the country may face unrest and uncertainty due to closure of industries in Karachi, massive layoffs and drastic decline in the national exchequer further leading to chaos.

  • Industry cries foul as gas suspension halts production

    Industry cries foul as gas suspension halts production

    KARACHI: The industry has cried foul over suspension of natural gas, which has halted the manufacturing activities resulting dishonoring export orders.

    The Industrialists of SITE Karachi have stringed up protesting banners over various roads and roundabouts of industrial areas against Gas load shedding, appealing the Prime Minister for uninterrupted supply of gas to industries of Karachi to save export and general industries including SMEs from disaster otherwise, fulfillment of export orders and new investments of billions of rupees shall be at risk.

    READ MORE: SITE Association demands reversing policy rate at 7%

    President, SITE Association of Industry, Abdul Rasheed, in a statement appealed Prime Minister Imran Khan that industries are facing suspension of gas supply since November 21, 2021.

    Due to daily 16 hours’ gas load shedding or zero gas pressure, about 66 per cent industrial production has been effected whereas, discrimination with Karachi is catastrophic for industries and against the defined export policies of the prime minister.

    Karachi is industrial and economic hub of Pakistan, despite of contributing 68 per cent to national exchequer, contributing over 54 per cent towards total exports and 52 per cent towards textile exports, Karachi is facing injustice by authorities.

    READ MORE: SITE Association signs MoU for tax return filing

    Abdul Rasheed raised the question as to why industries of Karachi solely suffers from shortage of Gas? Why is Sindh being prevented from using its own Gas?

    “It seems that there is hidden intention of shutting down or destroying Karachi industries behind depriving Karachi of gas. Is depriving Karachi of gas aimed at thwarting Prime Minister’s export policy?”

    Last year SSGC was provided with 150 MMCFD RLNG against only 34 MMCFD RLNG provided this year.

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

    He further added that Sui Northern Gas Company may also confer its appropriate share to Baluchistan and wrongly allowed 211 MMCFD gas to Sui Northern Gas may be provided back to SSGC to improve gas supply.

    SAI chief has appealed to Prime Minister Imran Khan to ensure round-the-clock gas supply with adequate pressure to Karachi industries and requested to supply gas regardless of category i.e. Export, General industries or SMEs so that destruction of industries could be avoided failing which investment made by importing 3 billion dollars’ worth machinery by various industries shall be in jeopardy and will lead to a flood of unemployment.

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  • FPCCI demands allowing clearance of solar equipment

    FPCCI demands allowing clearance of solar equipment

    Khawaja Shahzeb Akram, the Senior Vice President (SVP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has called for the exemption of unfair sales tax imposition on solar power equipment.

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