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Category: Trade & Industry

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  • Banking channel between Pakistan, Iran to become reality soon: KCCI

    Banking channel between Pakistan, Iran to become reality soon: KCCI

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday hoped that banking channel between Pakistan and Iran will become reality soon.

    Agha Shahab, President, KCCI said at a meeting with an eight members high level delegation from Iran, which was led by the Managing Director of Milad-e-Noor Ali Mohtassham Amiri .

    Agha Shahab noted that the negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA) for which initial drafts have already been shared while the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran’s Iranian Bank Markazi Jomhouri.

    Both countries have already signed MoU through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for Letter of Credit (LC) clearance.

    He hoped: “the desperately needed proper banking channel between Pakistan and Iran becomes a reality soon which would surely boost the existing trade ties.”

    He was of the opinion that abundant opportunities were available in the Iranian dairy, livestock, meat and beverages sectors for Pakistani traders and investors while Pakistan can also take benefit of Iran’s petrochemical sector.

    Agha Shahab underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route whereas regular operation of ECO container train will lend impetus to cargo and transit facilities between the two countries.

    While underscoring the need for a realistic approach, President KCCI said that KCCI was keen to strengthen trade ties with their counterparts in Iran.

    Managing Director of Milad-e-Noor Ali Mohtassham Amiri, on the occasion expressed the eagerness to improve trade ties with the Pakistani business community which would surely result in further improving the existing trade volume between the countries.

    Managing Director of Milad-e-Noor Ali Mohtassham Amiri stated that they were intending to improve trade ties with Pakistan and if serious efforts are made from both side, Pakistan and Iran can certainly become powerful partners.

    Commercial Attaché of the Iranian Consulate in Karachi Mahmoud Hajy Yousefi Pour, in his short remarks, pointed out that huge potential exists to enhance trade and investment cooperation between the two countries but because of some hurdles, trade was not prospering at the desired pace which requires attention.

    The bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while the imports were around $1.247 billion during 2018.

  • Qatar to open two more visa centers in Pakistan: envoy

    Qatar to open two more visa centers in Pakistan: envoy

    KARACHI: Consul General of Qatar Mishal Muhammad Ali Al Ansari has said his country will open two more visa centers in Pakistan for facilitating visa processing, a statement said on Friday.

    At a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI) that, he said that two Qatari visa centers were already operational in Karachi and Islamabad while two more such centers will also be established in Peshawar and Lahore in future for processing visas of mostly the skilled and semi-skilled labors.

    “Around 150,000 Pakistanis are living in Qatar as compared to around 40,000 Pakistani expats just four years ago,” he said.

    Qatari Envoy further stated that Qatar and Pakistan have been enjoying very old and strong relations since many decades. “We have initiated visa on arrival service for all Pakistanis while Qataris were also benefiting from a similar visa on arrival facility during their visit to Pakistan. Pakistan is exporting fruits, vegetables, fishes, rice, minerals, steel and cement to Qatar and is one of the fastest growing partner of Qatar in the region.”

    He said, “We’ve opened up the country and are looking for partners from all over the world. We’ve also eased the restrictions and regulations for anyone who wants to do business in Qatar. There are numerous sectors where no local Qatari partner is required anymore while Qatari Banks are also fully assisting such foreign investors.”

    Qatari CG pointed out that 90 percent of Qatari imports from Saudi Arabia and Emirates were suspended because of the blockade imposed around two years ago subsequently, they partnered with other countries including Turkey, Iran, Pakistan and India, besides focusing on becoming self-sufficient in numerous sectors.

    “A lot of changes happened in Qatar during the last two years. We are now self-sufficient and not relying on anyone in the dairy, poultry, farming sectors. Our farms have increased production by almost a thousand percent and all the major vegetables are also being grown in Qatar now. Even our fish farms have now tripled as compared to what they were before the blockade”, he added.

    Keeping in view the recent developments, he was fairly optimistic that the blockade would ease up which would create a much better situation for Qatar. “There was an effect, which I cannot deny but now we are doing well without them and with them (Saudi Arabia & Emirates), we will do great”, he said, adding that all the projects were going on smoothly in Qatar as the new expansion of the airport has started while Qatar Airways was also doing very well since the blockade as the airline added 26 new destinations, raising the total number of destination to 160.

    Highlighting the activities underway for the FIFA 2020 World Cup and the Vision 2030, Qatari Consul General stated that preparations for the FIFA world cup were in full swing as a lot of projects are going on in Qatar, of which half of the development work on the subway system has been completed while the construction of two out of six stadiums has also been completed while work on the remaining four football stadiums will also be completed next year.

    Moreover, 80 hotels were also being constructed in Doha while some huge cruise ships will also be arriving in Qatar just for the World Cup which is likely to be attended by millions of people from all over the world. “FIFA World Cup’s spending is almost US$200 billion while under the Vision 2030, around 150 large scale projects worth billions of dollars are to be offered after FIFA world cup in 2020.”

    He further mentioned that although one or may be two projects, which are not even 10 percent of the total construction projects, suffered some delay because of the blockade but the construction industry continues to grow as many new buildings and hospitals are being constructed.

    “We are also focusing on promoting tourism, particularly the Cultural Tourism as many new museums are being established and the Museum of Islamic Art and Cultural Centers in Qatar are already open whereas the Hamad Port, which is the largest port of Gulf region, also became fully operational a year ago”, he added.

    Earlier, President KCCI Agha Shahab Ahmed Khan, while welcoming the Qatari Consul General, underscored the need to make collective efforts to enhance trade ties between Pakistan and Qatar. Both countries have been enjoying good bilateral relations particularly in the energy sector but efforts have to be made from both side to enhance trade and investment cooperation in other sectors as well.

    Referring to FIFA 2020 being organized in Qatar, he stated that this particular event has opened up a host of opportunities for the business communities of both the countries to collaborate in numerous sectors of the economy.

    He was of the opinion that Pakistan, being an agricultural economy, can offer many commodities to Qatar and there was also good potential for enhancing trade in fresh fruits, vegetables, rice, meat, livestock, gems & jewelry, Information Technology and Engineering sectors.

    “As Pakistan produces some of the finest gems & jewelry whereas Qatar has been importing these products mostly from India, therefore the Qatari business community must look into the possibility of importing good quality gems and jewelry products from Pakistan as well”, he added.

  • KCCI to raise commercial importers’ problems with FBR

    KCCI to raise commercial importers’ problems with FBR

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has assured commercial importers of taking up their issues with the Federal Board of Revenue (FBR) for resolving amicably.

    President KCCI Agha Shahab Ahmed Khan, in a statement on Tuesday, assured Pakistan Chemicals & Dyes Merchants Association (PCDMA) that the chamber will approach the FBR and other concerned authorities so that the issues being faced by commercial importers could be amicably resolved.

    Exchanging views at a meeting during the visit of PCDMA delegation to KCCI, President KCCI requested PCDMA to submit practical suggestions for resolving the issues being faced by the commercial importers.

    General Secretary BMG AQ Khalil, Senior Vice President KCCI Arshad Islam, Vice President KCCI Shahid Ismail and KCCI Managing Committee members attended the said meeting with PCDMA delegation led by its Chairman Amin Yousuf Balgamwala, which also comprised of Vice Chairman Asif Ebrahim, Former Chairman Haroon Agar, Arif Balgamwala and others.

    President KCCI was fairly optimistic that the issue pertaining to SRO 1190 will certainly be taken into consideration and resolved on KCCI’s intervention.

    He also sought PCDMA’s suggestions for realistic valuation ruling so that the same could be forwarded to relevant authority for consideration with a view to provide a level playing field to commercial importers.

    While agreeing to Chairman PCDMA’s suggestion to form a committee so that collective efforts could be made to get the issues resolved, Agha Shahab sought PCDMA’s nominations for the proposed Committee.

    Speaking on the occasion, Chairman PSDMA Amin Yousuf Balgamwala brief President KCCI about the issues pertaining to Sales Tax, particularly the SRO 1190 being faced by the commercial importers.

    “We are facing a lot of problems in value addition and have constantly been sending letters to concerned authorities but no relief has been provided so far”, he said, adding that the valuation ruling, which have not been revised since many years, must be regularly revised after every three months.

    He further mentioned that as the CNIC condition will come into force from January 2020, therefore collective efforts have to be made on time to avoid any problems in future. “It is really unfortunate commercial importers, who regularly pay all their outstanding taxes, are being called tax evader and accordingly treated, which is not justifiable,” he added.

  • Tax system not to improve without documentation of economy: Hafeez Shaikh

    Tax system not to improve without documentation of economy: Hafeez Shaikh

    KARACHI: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance and Revenue, on Saturday said that taxation system will not be improved without documentation of economy.

    He was addressing at a meeting with office bearers of Overseas Investors’ Chamber of Commerce and Industry (OICCI).

    He said that achieving economic growth was not possible without generating tax revenue. He said trade community should not fear with the condition of Computerized National Identity Card (CNIC) because without documenting the economy tax system would not improve.

    The adviser said that the prime minister was putting all his efforts to facilitate the business community with the realization that trade and business were backbone of the economy.

    Shaikh said that the government had overcome the economic challenges. The government is giving around Rs250 billion subsidy to manufacturers and exporters.

    In order to improve the taxation system of Federal Board of Revenue (FBR) the government is introducing large scale reforms.

    He further said that the government was taken all those steps to strengthen the institutions.

    Hafeez Shaikh said that the IMF had shown confidence on reform programs initiated by the government.

    The government has not borrowed from the State Bank during past four months. Besides the government also reduced the current account deficit, he added.

    He said that in order to facilitate the masses the government had not increased prices of petroleum products.

    The adviser pointed out improvement in stock exchange due to measures of the government regarding confidence building of investors.

  • Karachi Chamber urges PM to honor genuine taxpayers

    Karachi Chamber urges PM to honor genuine taxpayers

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged Prime Minister Imran Khan to honor genuine taxpayers instead saying all the countrymen as tax thieves.

    Chairman Businessmen Group & Former President Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli and President KCCI Agha Shahab Ahmed Khan, while disagreeing to PM Imran Khan’s remarks wherein he accuses everyone for not paying taxes across the board, appealed to make public the city-wise tax collection so that everyone could know which city is paying what taxes and which isn’t and running away from the national obligation.

    In a statement issued, Chairman BMG and President KCCI said that although there are gaps in the taxation system but that cannot be made the reason to call all the countrymen tax thieves hence, the Prime Minister Imran Khan may please amend his statement.

    They said: “The Prime Minister talks a lot about Change and Justice but it is a matter of grave concern and a sheer injustice to the taxpayers when our Prime Minister claims that nobody wants to pay taxes. The loyal taxpayers contribute billions of rupees each year which are being utilized to run the government yet they (the taxpayers) are being discouraged as they stand at the same array where the tax thieves and evaders were standing.”

    Referring to a press conference by Advisor Finance Hafeez Shaikh and Chairman FBR Shabbar Zaidi held to respond to Small Traders’ reservations along with a recent data of the FBR, they said that as per FBR statistics, the small traders of Karachi paid tax of Rs30 billion while the traders from Lahore paid a mere amount of just Rs567.7 million and the situation in other cities was much worse.

    Hence, Chairman BMG and President KCCI urged the Prime Minister Imran Khan, Advisor Finance Hafeez Shaikh, Minister of State for Revenue Hammad Azhar and Chairman FBR Shabbar Zaidi to publicize the city-wise data of all other taxes including the Income Tax, Sales Tax, Custom Duty and Federal Excise Duty in detail so that the ground realities could be revealed.

    “We believe that the actual contribution of Karachi, which is the economic hub of the country contributing 70 percent revenue to the national exchequer, has to be publicized without any excuse of being the port city with a precise breakup of tax collection from the ports and dry ports along with details of the imported items belonging to which city and the consignee, besides carrying detailed fragmented tax collection from the head offices of corporate entities and their branches located in all parts of the country which would surely present the actual city-wise contribution”, they suggested.

    Siraj Teli and Agha Shahab further said, “We agree that many individuals and corporate entities from different areas of the country may not be paying their taxes to the level they should but that doesn’t mean that nobody was paying taxes. It is highly unfair to give such statement as it creates a false impression. Realistically, there are millions of individuals and corporate entities who are paying all their taxes. The FBR and Ministry of Finance should be told to get those individuals first who are paying zero tax instead of furthering squeezing the existing tax payers.”

    They hoped that the Prime Minister Imran Khan would soon issues strict directives to the Ministry of Finance and the FBR to compile city-wise data of tax collection and the same will also be publicized at the earliest.

  • Sales tax refund promises annoy value added textile industry

    Sales tax refund promises annoy value added textile industry

    KARACHI: The value added textile industry has expressed its displeasure over government’s repeated promises of clearing sales tax refunds.

    The government made promises for the past several months to clearing pending sales tax refunds but failed to honor, said Jawed Bilwani, Chief Coordinator of the Value Added Textile Export Sector said on Tuesday in a joint press conference at Pakistan Hosiery Manufacturers Association (PHMA) House.

    He said that the value added industry was facing serious liquidity problems due to stuck up refunds.

    The prime minister assured the business community to resolve the issue of refunds completely through a new mechanism. Besides, Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue and Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) also promised the refunds would be issued when exporters would file their goods declarations.

    Instead tall claims the situation has further aggravated, Bilwani said.

    He said that around 40 percent of the industry was facing immense liquidity problems. “This resulted in closure of factories,” he added.

    For the past pending sales tax refunds, the government issued bonds, which were never encahsed, he said.

    For the past four months the government was repeatedly assuring to resolve the issue, he said, adding that nothing was done in this regard.

    He said that on the one side the government was endeavoring to increase the exports but on the other side it was silent on the issue of refunds.

  • FBR proposed imposing additional sales tax on failure to implement CNIC condition

    FBR proposed imposing additional sales tax on failure to implement CNIC condition

    KARACHI: SITE Association of Industry on Monday proposed the Federal Board of Revenue (FBR) to imposed additional sales tax as the government failed to implement condition of Computerized National Identity Card (CNIC).

    Instead of disallowing proportionate input tax for sales made without CNICs, alternate is recommended for sales made without submission of CNIC to increase the further tax at 5 percent of sales till December 31, 2019, 7.5 percent of further sales till March 31, 2020 and further tax at 10 percent of sales till June 30, 2020.

    The SITE Association of Industry proposed new formula to end the deadlock between Government and traders on the condition of production of CNIC on sales and purchase of goods by the Federal Board of Revenue.

    Chairman of Taxation Committee of the Association Saud Mehmood has suggested that input tax inadmissibility against sales made without CNIC should be replaced with progressive increase in rate of further sales tax.

    He said that the FBR has not been able to successfully implement the CNIC condition due to the complex nature of disallowing input against sales made without CNIC which is difficult for sellers as well.

    Because of the complex nature of this condition, sales tax registered sellers have made CNIC submission the only option whereas legislation allows for sales without CNIC as well.

    Saud further said that in order to make implementation of CNIC submission smooth, SITE Association of Industry strongly recommends that input tax inadmissibility be replaced with progressive increase in further tax. “Progressive increase in further tax will make the transition smooth. Moreover, it will be in line with the existing system of charging further tax of 3 percent of sales made to non-filers,” he added.

    SITE Association of Industry believes in the documentation of the economy. When submission of CNIC is mandatory for availing a mobile connection then there is no reason to shy away from submitting CNIC for purchases above PKR 50,000/-.

    “We feel that more than the requirement of CNIC, the sudden imposition is one of the causes of the stiff resistance being faced by FBR. A gradual and progressive implementation of further sales tax on sales without CNIC will make the whole process more palatable.”

    Related Posts

    CNIC condition on sales tax transactions deferred till January 2020, traders claim

    Opposition to CNIC condition because of misunderstanding: State Bank

  • Business community resents detaining export containers ahead of political dharna

    Business community resents detaining export containers ahead of political dharna

    KARACHI: Business community has resented the government move to detain export containers ahead of political rally and Dharna (sit-in) and said it will result in massive trade loss.

    Muhammad Jawed Bilwani, Chairman Pakistan Apparel Forum stated that the country’s politics must not affect the trade and exports of Pakistan all the exports and cargo containers must not be detained.

    All the containers already detained by the Government must immediately be released without any delays to avoid fiscal and trade losses.

    While expressing deep concern over seizure of huge number of containers loaded with export consignments in Punjab province, Bilwani said that these cargo containers, reportedly detained for the purpose to block all roads heading towards Islamabad to prevent political elements and their supporters from entering into the federal capital city where they want to stage sit-in but the authorities have ignored the fact that most of these containers were loaded with export consignments.

    If export containers not released, this will lead to cancellation of precious orders which will not only be a great loss to the exporters but also the nation in the current crucial times.

    The government must realize that any loss to business people will also have a severe impact on the economic performance of the country.

    He added that the situation would also send a very negative signal abroad when the export consignments would not be delivered to the buyers as per commitment whereas the local markets might also experience severe shortage of numerous goods and commodities. In view of tense situation, transporters were unwilling to carry goods to the upcountry.

    Bilwani was of the view that instead of engaging exporter’s containers and disturbing business activities, the Federal and Provincial governments should purchase their own damaged / defected containers to block all roads in the best interest of our nation’s export and economy.

    It is the responsibility of every Pakistani citizen including those who are in the Government or in the Opposition not to disturb the country’s exports and ensure that export containers enroute to Karachi and further abroad must not be hold or detained in the national interest.

  • FPCCI hopes improved ease of doing business to encourage foreign investment

    FPCCI hopes improved ease of doing business to encourage foreign investment

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hoped that improvement in ease of doing business in Pakistan will encourage foreign investment into the country.

    Engr. Daroo Khan Achakzai, President FPCCI in a statement issued on Friday congratulated Prime Minister of Pakistan Imran Khan and his team for improvement of Pakistan’s ranking from 136 to 108 in Ease of Doing Business 2020 report issued by World Bank.

    The report indicated that the World Bank and others institutions has started recognition of Pakistan’s Business reforms.

    He added that the improving of Pakistan in Ease of Doing Business will definitely pave the way in encouraging the international investors to make substantial investment in Pakistan as most of the international investors make decisions of investment on the basis of this report.

    The President FPCCI said that the Present Government has achieved another milestone of their manifesto i.e. to bring Pakistan into top investment destinations.

    He hoped that the continuous reforms of the Government will bring Pakistan into top 80 countries next year. He added that Pakistan’s ranking had improved in six indicators i.e. starting a business, dealing with construction permits, getting electricity, registering property, paying taxes and trading across borders which made Pakistan in top ten business reformer countries.

    This will also facilitate the other countries to investment in CPEC related projects which will connect South Asia with Central Asia and Europe.

    He suggested the government to make similar incentives/reforms in Baluchistan and KPK as the World Bank report has only covered two main provinces Punjab and Sindh.

    Inclusion of these provinces will help in their economic development.

    He further added that improvement in ranking will improve the business environment and overall economy become visible because of the reforms introduced by the government which will focus on the mandate of ensuring well being of masses and providing quality education and health to all segment of society.

  • FBR criticized for delaying sales tax refunds under FASTER module

    FBR criticized for delaying sales tax refunds under FASTER module

    KARACHI: Business community has criticized Federal Board of Revenue (FBR) for delaying release of sales tax refunds under newly launched Fully Automated Sales Tax e-Refunds (FASTER) module.

    Suleman Chawla, President of SITE Association of Industry, while expressing deep concerns over the poor performance of the recently launched Fully Automated Sales Tax e-Refunds (FASTER) module, stated on Friday that FBR claimed of processing payments of Sales Tax Refunds within 72 hours through FASTER module but the ground reality was totally contrary to this claim as many exporters have not received anything.

    He pointed out that many exporters have not received outstanding refunds for July 2019 which was really worrisome and too disappointing for the Business and Industrial Community as the FASTER module was launched with a commitment to release refunds within 72 hours but it was not happening at all, which has intensified the hardships for exporters who are finding it almost impossible to stay afloat due to delays in release of refund claims and rescission of SRO 1125(I)/2011 dated 31.12.2011, which allowed zero-rating of inputs of five export-oriented sectors.

    “It was a matter of grave concern that a system titled FASTER for processing refund claims within 72 hours, has actually made the entire process too messy and cumbersome while the FBR officers in Islamabad were also totally unaware and confused because of the so-called FASTER system hence, it should be remained as SLOWER”, he criticized.

    President SAI said that it has been a month since the first tranche was processed via FASTER module but many exporters have not received funds, creating severe liquidity crunch for the exporters from five export-oriented industries which clearly indicates that FASTER system has failed miserably to improve the situation in fact it has made the refunds process more cumbersome and slower.

    He was fairly optimistic that keeping in view the government’s resolve towards ensuring the Ease of Doing Business, the decision makers would pay attention to this serious issue and order the concerned department to improve FASTER’s performance which would certainly be warmly welcomed by business community of Karachi but also by all other stakeholders from across the country.

    He appealed to the Federal Minister for Finance, Revenue and Economic Affairs, adviser to the Prime Minister on Finance and Chairman, FBR to personally intervene for immediate release of pending claims so that exporters could meet their export contracts.