KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lambasted shipping companies and terminal operators for their non-cooperative behavior in trade facilitation, a statement said on Monday.
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This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.
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Iran ready for barter trade with Pakistan
KARACHI: Iran is ready for barter trade with Pakistan to strengthen the economic ties between the two neighboring countries. Iranian Consul General Reza Nazeri has stressed the need for strengthening trade ties between two neighboring countries, saying Iran is ready for barter trade and it will export petrochemical, steel and LPG to Pakistan while importing rice, meat and other agriculture products from Pakistan.
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Restaurants boycott foodpanda over unfair practices
KARACHI: The All Pakistan Restaurant Association (APRA) has protested over the unfair practices by foodpanda and boycotted, also announced to stop food delivery from September 15, 2020 in the first phase in Karachi.
In a letter of complaint to the CEO of the company, Muhammad Naeem Siddiqui, chairman APRA apprised their member’s grievances and concerns, pointing out that foodpanda repeatedly pressed for increase in commission and non-implementation of the agreement and made some important demands. In which it is clearly stated that if unfair practices will not stop then APRA consider to stop work with foodpanda on a permanent basis.
“Vendor Delivery was the original concept by foodpanda and FP’s own delivery was launched as an optional service. Forcing restaurants to close their Vendor Delivery, which has not only increased unemployment but have “disconnected” them from customers and is not acceptable at all. We demand Vendor Delivery to be operational for all regardless of the size of the brand”, he added.
APRA chairman said that majority of our members are being pressurized to increase commissions but our industry already runs on razor thin margins and it’s impossible to pay 25-35pc commissions for aggregation services. It is especially difficult for new entrants, as their startup costs gets drastically higher. We need to ensure that there is a cap on commission that foodpanda may charge.
“Managers blackmail APRA members to increase the commission many folds, for e.g. from 18pc to be increased to 25pc, threatening and shutting their brands from your portal. This is the most unethical way of extorting any member to accept foodpanda terms & conditions and it needs to be stopped immediately”, Naeem demanded.
APRA president opined that our members have also complained that foodpanda ask them to work with restaurants exclusively which falls under anti-competitive business conduct and can be challenged in Competition Commission of Pakistan.
He further said that Restaurant industry was majorly hit during Covid-19 and now is the time when they need maximum support from their stakeholders. We did raise similar concerns earlier but there has been no permanent solution from their higher-ups, which has lead us to announce Suspension of Services by all our members.
APRA president warned that all APRA members will be closing their tablets from 15th September onwards initially in Karachi and if no resolution is achieved, we will be left with no option than to close the services permanently Nationwide.
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Foreign investors express concern over high turnover tax
KARACHI: Foreign investors have expressed concerns over high rate of turnover tax rate, especially for those sectors where margins are very low.
Overseas Investors’ Chamber of Commerce and Industry (OICCI) expressed this concern at an interactive session with Dr. Abdul Hafeez Sheikh held on September 12, 2020, a statement said on Monday.
The statement said that the foreign investors expressed concern on the continuation of the high rate of turnover tax especially for high turnover but low margin sectors like petroleum and chemical businesses.
OICCI members also vented concern on the recent incident on the Lahore-Sialkot ring road which has damaged the morale of the stakeholders, who were otherwise satisfied with the highly improved security environment in Pakistan.
OICCI President Haroon Rashid, welcomed Dr Abdul Hafeez Sheikh and briefed him about the critical role of OICCI and its members in the economy of Pakistan and shared that delays in tax refunds and some other issues are creating hurdles in bringing Foreign Direct Investment (FDI) in the country, as well as not being in sync with the government’s agenda of Ease of Doing Business (EODB).
The participants representing the major foreign investors operating in the country appreciated the GOP’s effort in successfully overcoming the Covid 19 challenge to the economy and taking appropriate measures for the health and safety of the people of Pakistan.
OICCI members complimented the Advisor on Finance for the constructive approach adopted during the 2020-21 Budgeting process where the tariff rationalization of over 1600 items, together with rationalization of withholding taxes at import stage and many other measures contributing towards Ease of Doing Business.
OICCI also appreciated the recent launch of Roshan Digital Account for overseas Pakistanis as a step in the right direction.
Haroon Rasheed recommended that the government should take a collective view of the measures to encourage foreign investment in Pakistan, including appointing a focal ministry for streamlining operating issues of foreign investors.
OICCI strongly recommended that the government should ensure that incentives once given to foreign investors, for example vide Section 65 of the IT Ordinance 2001 in respect of new investments, should not be withdrawn while the respective projects are in implementation phase. OICCI also requested for orderly and prompt settlement of long pending tax refunds and circular debt.
OICCI members were optimistic that the country can attract large FDI by ensuring predictable, consistent and transparent policy framework and its implementation.
The participants also sought Finance Advisor review of the recent announcement that investment in the National Saving scheme will not be available to retirement funds after 2022.
On questions from the audience, Finance Advisor assured that the GIDC issue will be managed amicably in accordance with the Supreme Court decision and that the FBR will be more proactive and will regularly engage with key stakeholders like OICCI members in resolving all legitimate issues especially on tax refunds.
At the meeting Advisor to PM on Finance Dr Abdul Hafeez Sheikh gave a comprehensive overview of the challenges faced by the economy in the past two years and how the GOP has successfully managed to stabilize the economy which is now on a recovery path.
Dr Hafeez Shaikh added that the growth trend in some industries like cement, automobile and fertilizer and rapid growth noticed at PSX are very encouraging and should give confidence to investors.
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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.
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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.
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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.
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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.
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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
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.