Trade & Industry news covering business developments, industrial growth, manufacturing trends, and economic policies shaping domestic and global markets.
The company said that for the second consecutive year since its approval as a manufacturer for the supply of Coca-Cola branded Freezers, Waves Singer Pakistan has secured the largest corporate order from Coca-Cola.
For fiscal year 2022, WSPL has received order for supply of 25,000 units of chest coolers and visi coolers worth around Rs1.44 billion.
Last year, the company obtained orders for 22,850 units of chest coolers and visi coolers worth Rs944 million from Coca- Cola after approval of the factory consequent to detailed audits.
Waves Singer Pakistan Limited has become a merged company with the acquisition of Cool Industries (Pvt) Limited by Singer Pakistan during 2017. After the approval of the Scheme of Merger by Sindh High Court, the combined company has acquired the name of Waves Singer Pakistan Limited.
Singer’s history dates back to 1850, when Isaac Merritt Singer manufactured the first ever sewing machine in Boston, USA. I. M Singer & Company was duly incorporated during the same year.
The name of the company was changed to Singer Manufacturing Company during 1853 when the factory of the Company was also relocated to New York, USA. Singer established its presence in the Indian sub-continent during 1877.
Over the years, and after the independence of Pakistan, Singer continued its business of sewing machines in the country, but also started dealing in domestic consumer appliances, besides manufacturing and assembling light engineering products. In 1985, the Company became a public listed company.
Singer Pakistan’s retail network has 140 shops in Pakistan alone, and covers every small town and metropolitan city of the country. Under the Singer brand, the Company produces a variety of consumer appliances-including refrigerators, air conditioners, LED TVs, washing machines, microwave ovens, in addition to its more traditional offerings of sewing machines, water heaters and gas ovens etc.
KARACHI: The First Lady of Pakistan Samina Arif Alvi has stressed that early detection is the only prevention for dealing with the life-threatening disease of breast cancer as 98 percent of the women survive when they are diagnosed with breast cancer earlier but unfortunately, majority of the breast cancer patients in Pakistan are diagnosed belatedly when cancer reaches third stage, resulting in a death rate in between 40 to 45 percent.
KARACHI: The president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Nasser Hyatt Maggohas emphasized that tea prices can be quickly curtailed if imports are facilitated directly from Tanzania, which is a major producer of tea in the world.
Pakistan should explore every possible avenue to control food inflation and tea is one of the major food items fueling inflation; as it is dependent on imports heavily, he added.
Maggo said that it is perturbing to note that currently only 2 per cent of tea is being imported from Tanzania directly and pricing pressures in Kenyan tea markets are causing an added strain to foreign exchange reserves of Pakistan and exchange range volatility; and, exchange rate volatility is adding up to the miseries of importers and general public alike.
Hanif Lakhany, VP FPCCI, apprised the Pakistani exporters of the potential to export a number of products to Tanzania in large quantities, e.g. value added textiles, pharmaceuticals, surgical goods, sports goods, fruits & vegetables, plastic ware, etc.
Zeeshan Maqsood, Convener FPCCI’s Standing Committee on Tea Trade, said that Pakistan imports a huge amount of around 240 million kilograms of tea annually and Tanzanian share is only 3.5 million kilograms. Pakistan is a $600 million tea market and Tanzania stands to benefit a lot from getting a share out of it.
Dr. Jacqueline Mkindi, CEO of Tanzania Horticulture Association, led the counterpart delegation and invited the Pakistani traders to explore the opportunities in textiles, pharmaceuticals, gemstones, minerals and fruits & vegetables.
FPCCI considers the current trade volume of approximately $220 with Tanzania too short of the real potential and considers the psychological mark of $1 billion achievable within a short span of two to three years.
Central Chairman of Pakistan Yarn Merchants Association (PYMA) Saqib Naseem has stressed that the existing custom duty of 11 percent on polyester yarn has to be brought down to 7 percent as done in the past when the previous governments provided this much-needed relief through Textile Packages that led to improving the overall productivity of textile manufacturers and also enhanced the exports.
Although the government in this year’s budget announced to bring custom duty down to 9 percent but that stands unchanged at 11 percent. Similarly, the anti-dumping duty also needs to be abolished in the larger interest of textile sector otherwise the export targets will not be achieved due to likely cotton shortages and higher customs duties, he added while exchanging views at a meeting during the visit of PYMA delegation to Karachi Chamber of Commerce & Industry (KCCI).
General Secretary Businessmen Group AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi and the Members of KCCI and PYMA’s Managing Committees were also present at the meeting.
Central Chairman PYMA pointed out that commercial importers of yarn act as a bank for thousands of small-sized textile industries who cannot afford to import huge quantities of yarn but obtain this essential raw material from commercial importers therefore, the importers should be provided relief by reducing the exorbitant duties and duties which have to be brought at par with industries.
He was of the opinion that prices of polyester yarn have risen sharply due to rising oil prices, increase in freight charges and the global shortage of containers. As a result, the textile industry, small and medium enterprises, especially power looms, were suffering due to high costs therefore, custom duties and taxes have to be brought down drastically.
Saqib Naseem further requested KCCI to help in convincing the government to bring down the turnover tax back to 0.1 percent as many people were finding it hard to continue their business with high turnover tax due to limited margin.
He also said that KCCI and PYMA have been enjoying cordial relations and it was heartening to see that many PYMA members have also discharged their duties at KCCI’s Managing Committee from time to time. “All PYMA members will go hand-in-hand with KCCI so that we could collectively work towards not only resolving PYMA issues but also other general issues of the business & industrial community”, he added.
President KCCI Muhammad Idrees stated that the Karachi Chamber gives highest preference to all the issues being faced by PYMA members which were constantly being taken up with relevant ministers, advisors and all the authorities at the federal level. He said that although Finance Minister Shaukat Tarin always agrees to treat commercial importers of yarn and industries equally but the issue of higher duties on commercial importers stands unresolved as probably the bureaucracy was misguiding the minister. This pending issue has to be resolved and the commercial importers have to be provided relief by ensuring availability of a level playing field.
PYMA delegation members also paid glowing tribute to Late Siraj Kassam Teli who always gave special attention and maintained good liaison with PYMA.
FPCCI President Mian Nasser Hyatt Maggo, while praising the government for launching the SME Policy, said the defined annual sales turnover of a meager Rs250 million does not reflect the current ground realities of Pakistan; as when that threshold was set, the exchange rate was around Rs60 for a dollar, which has now climbed to over Rs170.
Therefore, he has suggested, the new limit should be set at Rs1.5 billion for SMEs.
FPCCI Chief has reiterated his proposal for a simplified and streamlined taxation regime; including, easy-to-fill tax return forms; end to corruption; phased lowering of sales tax rates, etc. through alignment it to FPCCI’s proposal called Simplification of Taxation System in Pakistan sent to the Prime Minister of Pakistan back in February 2021.
The FPCCI chief hailed the concerted efforts of Makhdoom Khusro Bakhtiar, Federal Minister for Industries & Production, for launching long-overdue SME Policy of Pakistan.
The SME Policy has been in the making for many years now and the process unfortunately got deferred many times over, he added.
Maggo said that financing is the lifeline for SMEs and the SBP’s current SAAF Scheme has allowed a banking spread of 8 per cent to commercial banks; on top of 1 per cent refinancing rate of SBP; which makes it 9 per cent for the SMEs. That much cost of capital is unaffordable, unproductive and unfeasible. FPCCI has proposed an interest rate of 3 per cent for SMEs to make it viable for small businesses & entrepreneurs.
Mian Nasser Hyatt Maggo has demanded that the government should update the definitions of Micro, Small and Medium-sized organizations and make it MSMEs on the lines of current best practices internationally; for devising preferential treatment protocols based on peculiar ground realities of Pakistan. MSMEs are the engines of growth & employment generation, he added.
Addressing the glaring issues in labour-related provincial & federal levies on SMEs in Pakistan, Mian Nasser Hyatt Maggo has proposed that all the provincial and federal levies to be clubbed together to make a single levy to be charged either as a percentage of turnovers or on some other pertinent criteria for the sake of simplification; but, protecting the present collections for the purposes these departments have been created as well.
In order to keep demand-side variables in SMEs favour, President FPCCI has suggested that the government should keep their procurement from SMEs strong & steady; incorporating procurement for CPEC-related projects.
The two institutions have agreed to collaborate in the spheres of Data-based Policy Research; Data Sharing; formulating Proposals for Monetary Policy and Federal & Provincial Budgets; Policy Advocacy; conducting Economic Surveys, etc., according to a press release on Tuesday.
Mohammad Younus Dagha, Chairman of FPCCI’s Policy Advisory Board & Dr. Akbar Zaidi, Executive Director of IBA Karachi, signed a Memorandum of Understanding at a ceremony attended by the press representatives at the FPCCI Headquarters, Federation House, Karachi.
Mian Nasser Hyatt Maggo, President FPCCI, said that a strong proponent of industry-academia linkages & cooperation, he has always pursued the promotion of knowledge-based economy and the MoU is a manifestation of his vision for FPCCI.
Mian Nasser Hyatt Maggo maintained that, to him, FPCCI & IBA are natural allies as FPCCI is the apex representative business & trade body of Pakistan and IBA is one of the most prestigious business schools of Pakistan.
Mohammad Younus Dagha said that Policy Advocacy, the primary function of FPCCI, should be data-driven & evidence-based. Policy advocacy should be the primary function of FPCCI; but, it has to be grounded in hard facts to be valid, pragmatic and result-oriented.
Dagha added that an effective policy advice has to reconcile the inspirations of entrepreneurs & expectations of the society at large. He said that the Policy Advisory Board has therefore started its journey by joining hands with the academia & economic think tanks; as well as NGOs working in social sectors.
Amjad Rafi, a Senior Member of FPCCI & a Member of the Board of Governors of IBA, emphasized that business & industry should start looking towards academia & researchers for solutions to their real-world management & operational issues for indigenous, sustainable and research-based ideas; in order to contribute to socioeconomic growth & employment generation.
Dr. Akbar Zaidi said that FPCCI & IBA are old allies and, historically, IBA has always had a member from FPCCI on its board. He expressed his satisfaction that the MoU is a step forward. He added that IBA is a university now; but, its business school continues to be the most important part of it.
Members of a delegation from Jama Alliance Market Association (JAMA), while expressing deep concerns over rising incidents of thefts in the Jama Markets and the poor behavior of police officers in dealing with shopkeepers, requested the Karachi Chamber to take up this serious issue with the high-ups in police department in order to put an end to the highhandedness of police officers.
They also sought KCCI’s help in deployment of women police officers at Jama Markets where incidents of thefts were widely being reported everyday and all of them were being carried out by women culprits.
The help was sought at a meeting during the visit of JAMA delegation to KCCI, which was led by Chairman JAMA Sheikh Muhammad Irshad. President KCCI Muhammad Idrees, Senior Vice President KCCI Abdul Rehman Naqi, Vice President KCCI Qazi Zahid Hussain, Chairman of KCCI’s Special Committee for Small Traders Majeed Memon and Managing Committee Members also attended the meeting.
Speaking on the occasion, Chairman JAMA Sheikh Muhammad Irshad pointed out that shopkeepers of Jama were worst sufferers of lockdowns and to date, they haven’t recovered from the losses, leading to closure of many shops. These shopkeepers have been facing immense hence, it was very necessary that the government should look into the possibility of extending interest-free financing facility to them so that they could stay afloat. “Jama Alliance Market Association can be engaged as guarantor in the process of interest-free financing and we will recommend only those trustworthy shopkeepers who would certainly payback all their debts”, he said, adding that this financing facility was desperately needed for survival of business at Jama Market which was the oldest market of the country.
While referring to anti-encroachment drive, he said that around 192 shops of Jinnah Market mostly engaged in frame-making and Dupatta (scarf) dying businesses were razed and to date, these displaced shopkeepers have not received alternate shops. KCCI should take up this issue with Sindh with a view to provide relief to perturbed shopkeepers and their families.
President KCCI Muhammad Idrees, in his remarks, informed that KCCI was in constant touch with Commissioner Karachi Iqbal Memon and Administrator Karachi Murtaza Wahab and Additional Inspector General Yaqub Minhas who will soon be visiting KCCI to discuss numerous issues. “We will invite JAMA members to these meetings where they will get a perfect opportunity to highlight their grievances directly in front of decision makers and seek resolution of their problems”, he added.
He assured that KCCI was always available round the clock to serve small traders and shopkeepers who can either get in touch with Office Bearers, Chairman Special Committee for Small Traders or Police Chamber Liaison Committee (PCLC) any time to get their law & order related issues resolved. “Any unlawful activity being carried out by police officers must also be brought to this Chamber notice in writing and we will make sure that no injustice is being done to any shopkeeper of Jama Cloth Market”, he added.
While referring to concerns expressed over encroachment drive, President KCCI informed that not a single representative from Jinnah Market has approached KCCI for relocation of their businesses to date. KCCI’s Special Committee for Small Traders under the supervision of Majeed Memon has ensured that alternate shops are allotted to displaced shopkeepers of various markets. “KCCI is ready to take up the problems suffered by shopkeepers of Jinnah Market but the shopkeepers must share details in writing with this Chamber so that we could take up this issue with Administrator Karachi during his forthcoming visit to KCCI”, he added.
He said that it has always been one of the first and foremost responsibility to give top priority to get small traders’ issues resolved in normal and extraordinary circumstances. “It was KCCI that kept demanding to ease restrictions during lockdown and it was this Chamber which convinced Sindh Government to lift lockdown restriction on Sunday”, he added.
Chairman Special Committee for Small Traders Majeed Memon said, “As KCCI has remained actively engaged to ensure smooth relocation of displaced businesses of encroachment drive, the affectees of Jinnah Market should not find themselves alone as we are always available to round the clock to help them out.
All the participants of the meeting paid glowing tribute to Late Siraj Kassam Teli for his relentless efforts towards resolving the issues being faced by the entire business and industrial community particularly those being suffered by small traders and shopkeepers.
In a statement on Monday, FPCCI President Mian Nasser Hyatt Maggo expressed shock over the interest rate of up to 9 per cent under SBP’ SME Asaan Finance Scheme (SAAF).
The SMEs were appreciative of the announcement of collateral-free SAAF Scheme; but, the interest rate of 9 per cent makes it unaffordable, unproductive and unsupportive for SMEs, he added.
Maggo said that it is a welcome step that SBP has selected eight banks to get financing under SAAF Scheme from SBP; however, it makes no economic and commercial sense to allow these eight banks to charge up to 8 per cent in addition to 1 per cent of SBP’s lending fee to banks.
The FPCCI chief demanded that SAAF scheme should not have a total interest rate over 3 per cent, which will make it at par with TERF to make it affordable for SMEs, i.e. 1 per cent for SBP financing and 2 per cent for banks’ margin.
He said that in the post-pandemic scenario, nowhere in the world SMEs can afford to get capital at 9 per cent and pay it back without getting bankrupted. Maggo also noted, with concern, that SBP itself sets maximum interest rate under TERF Scheme at 3 per cent for larger enterprises and business groups; and, for SMEs, it has taken a discriminatory and unsupportive stance.
Iftikhar Ghani Vohra, Convener of FPCCI’s Central Standing on SMEs, said that based on the feedback from across Pakistan, he can say that SMEs are not happy with the exorbitant interest rate; as 9 per cent will make the SAAF Scheme unaffordable for them.
Vohra added that his committee had a detailed meeting with the SBP officials in the mid-September; and, they categorically conveyed their concerns to the officials. However, FPCCI’s concerns have fallen on deaf ears and no change in interest rate has been announced.
Maggo said that he disagrees with the assertion by SBP that all stakeholders have been taken onboard on SAAF Scheme; as FPPCI’s proposal has not been taken into account. It is pertinent to note that FPCCI is the apex representative body of all the SMEs, chambers & associations of Pakistan and; therefore, the biggest stakeholder in the policies affecting SMEs, he added.
KARACHI: Dr. Fareed Iqbal Qureshi, Director General, Customs Valuation has said that Pakistan Customs is ready to constitute an advisory committee of the stakeholders from government and business community; and he has an open-door policy for addressing all the grievances.
