KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday criticized the central bank for maintaining high policy rate stance.
(more…)Category: Trade & Industry
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Bahria Town investors fear their life-time savings at stake
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday advised the management of Bahria Town to act sensibly as investors are fearing their life-time savings are at stake.
Acting President Karachi Chamber of Commerce & Industry (KCCI) Arshad Islam and Chairman of Karachi Chamber’s Housing, Construction & Real Estate Subcommittee Asif Sumsum at a meeting while expressing deep concerns over the hardships being faced by the allottees and members of Bahria Town, stated that the management of Bahria Town should have to act sensibly and they must prudently tackle the situation otherwise the project was likely to turn into a yet another serious scam which was neither in the interest of Bahria Town nor in the interest of Real Estate Agents, Investors and the General Public whose are fearing that all their lifetime savings were at stake.
They underscored that any issue pertaining to additional charges or irregularities in the Bahria Town project have to be amicably resolved as it was not just a matter of grave concerns for the real estate agents, investors and overseas Pakistanis but also for thousands of those masses who have invested their hard earned monies and savings in different projects of Bahria Town so that they could ultimately have their own house in a beautiful, safe and secure locality which is obviously the biggest dream of almost all the people.
Nobody can afford to see Bahria Town sinking, as it would give a serious blow not just to Bahria Town but also to all the stakeholders including the perturbed allottees and investors therefore, any irregularities in this essential project must be cautiously rectified and relief has to be provided as per aspirations of the perturbed masses, they added.
Acting President KCCI and Chairman Housing, Construction & Real Estate Subcommittee stressed that the management of Bahria Town must devise those policies and strategies that ensure uninterrupted activities at Bahria Town. Not only Bahria Town but all other Developers must strictly refrain from taking those steps that terribly shake the confidence of the public and result in drowning their investments.
The present government, local relevant authorities and the management of Bahria Town will have to seriously handle the situation, they said, adding that the Karachi Chamber, being the premier chamber of the country, is keeping a strong vigil on numerous developments in this particular issue and would certainly raise strong voice and knock every single door for assistance, if any injustice is done to the public.
“KCCI, under its policy of ‘Public Service’ introduced by Chairman BMG Siraj Kassam Teli intervenes in every single matter that directly or indirectly affects the business & industrial community or the citizens of this city”, Acting President KCCI Arshad Islam said, “We are neither against the management of Bahria Town nor favoring anyone but would be happy to see that the issue is amicably resolved which is in the larger interest of this city.”
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OICCI praises UK for easing travel advisory for Pakistan
KARACHI: Overseas Investor Chambers of Commerce and Industry (OICCI) has praised the British government for softening travel advisory for Pakistan.
In a statement issued on Saturday, the chamber said that the advisory would allows tourists, business travelers and British nationals based in Pakistan to travel to various parts of the country.
While commenting on updated UK travel advisory, OICCI Secretary General, M. Abdul Aleem said: “The upgrade in the UK travel advisory is an appreciation by the UK government of the various initiatives of the government and the security agencies in proactively tackling the security, law and order challenges which had serious repercussions on the image of the country as a safe destination for Foreign Direct Investment (FDI) and it is a clear message to existing and potential foreign investors that there is now no need to factor in security concerns in deciding on foreign direct investment in Pakistan.”
The new advisory will enable a large number of British nationals to devour the natural beauty of the land as well as the warmth and hospitality of the people across the country, he said, adding that the UK update is consistent with the OICCI 2019 annual security survey, which has been extensively shared with diplomats from UK and other countries, besides senior security and other persons visiting Pakistan from the Head office and Regional offices of leading multinationals operating in Pakistan, who are members of the OICCI.
The OICCI Security Survey conducted in June 2019, and shared with all stakeholders shows that the foreign investors, perception of the country’s security environment has further improved significantly compared to the already improved security situation recorded in the 2018 survey.
The annual security survey, conducted among OICCI members only, is one of the critical annual assessment of the operating conditions in Pakistan and is taken very seriously by the potential foreign investors, relevant diplomats and other stakeholders interested in doing business in Pakistan.
The visibly improved security situation has boosted confidence of foreign investors and is reflected in over 65 percent increase in the visit to Pakistan by OICCI members’ senior HQ/Regional management.
The increase in visits is a vote of confidence in the improved security environment.
Aleem concluded that the UK Travel Advisory read together with the OICCI Security survey is a strong indicator that Pakistan as a destination for investors has improved significantly with less concern on overall security situation.
This improved security environment has allowed many foreign business visitors and trade delegations being granted travel permissions for their visits to Pakistan from their respective embassies and travel security agencies.
OICCI is the largest chamber of commerce in terms of economic contributions in Pakistan. The 190 OICCI members contribute about a third of the country’s total tax collections, invested $ 2.7 billion last year in new investments and employ about one million people, besides contributing significantly to the socio economic development of the community through their substantive CSR initiatives.
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FPCCI expresses concerns over power tariff increase decision
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over government decision to increase electricity charges.
FPCCI President Mian Anjum Nisar in a statement on Saturday urged the government to continue power tariff of 7.5 Cent/Kwh for Zero-rated sector as announced in the January 2019.
He said that upward shift in electricity charges will hurt exports target of US $ 26 billion set under Annual Plan 2019-2020.
The FPCCI president informed that few days back a delegation of FPCCI under him was met with the Prime Minister Imran Khan and he informed the Prime Minister about challenges and difficulties being faced by Pakistan industry.
He informed the Prime Minister that electricity charges in Bangladesh and India are nearly 7-9 Cent/Kwh while in China which is our major trading partner the electricity charges are less than 9 Cent/Kwh.
Similarly, high mark-up rate in Pakistan is also creating hurdles to industrial growth.
Interest rates in Pakistan are 13.25 percent while in India is 5.15 percent, China 4.2 percent and in Bangladesh the rate of interest is 6 percent.
President FPCCI further stated that if the government allow upward shift in electricity rate which is expected to be nearly 70 percent increase in existing 7.5 Cent/Kwh and from January 2019, the exports will be discouraged and our buyer will lose confidence in Pakistani suppliers due delay in exports orders.
He urged the government continuation and consistency in long term policies once it is announced. Changes and revisions hurt the industrialist’s plan of production and purchases and booking of orders which is made according to the policy announcement.
He emphasized the government to review its decision of changes in electricity tariff and continue the rates as announced to support industry.
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FPCCI fears no advantage for Pakistan under Phase-II FTA with China
KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) feared that Pakistan would not be able to take advantage of opportunities under Phase II of China Pakistan Free Trade Agreement (CPFTA-II).
Mian Anjum Nisar, President FPCCI and Sheikh Sultan Rehman, Vice President FPCCI said in a statement on Monday expressed fear that Pakistan may not be able to reap benefits under Phase II of China Pakistan Free Trade Agreement (CPFTA-II) despite elimination of duties on 313 tariff lines covering most of Pakistan’s exports.
He pointed out that during Phase I of China Pakistan FTA, the balance of trade remained greatly in favor of China which managed to export 57 percent of its product lines while Pakistan could take advantage of only 5 percent of its product lines.
Pakistan exported US $ 2.1 billion approx. while imports from China have reach more than US $ 17 billion approx. that created trade gap of US $ 15 billion approx. in favor of China.
While products included in this volume of Pakistan’s exports to China are cotton (US $ 872.85 million), Cereals (US $ 161.3 million), Copper (US $150.26), Beverages, spirits and vinegar (US $133 million), Fish, crustaceans, molluscs, aquatics invertebrates (US $ 91.21 million), Ores slag and ash (US $ 66 million), Machinery, boilers (US $45.9 million), Salt, sulphur, earth, stone, plaster, lime and cement ( US $ 43.36 million), Raw hides and skins (other than furskins) and leather ( US $ 35 million, Articles of apparel, knit or crocheted (US 30 million).
FPCCI Office Bearers expressed serious concern about Pakistan’s ability to benefit from Phase II, when Pakistan does not have surplus products to exportdue to a shrinking economy.
He further highlighted the fact that industrial output is declining because of de-industrialization in the last few years. Serious issues like, high interest rates, frequent increases in power and gas tariff, unavailability of gas to industries, abrupt changes in government policies, rampant smuggling, refunds to exporters and an overall hostile environment are making it difficult for industries to sustain their existence.
FPCCI Office Bearers urged Government of Pakistan to urgently develop a robust and holistic industrial policy that would lead to massive industrialization in the country, encourage R&D, innovation, diversification and development of new products, improve quality standards and enhance technical skills of labor.
He also urged Chinese companies to enter into joint ventures with Pakistani manufacturers and relocate their industries to Special Economic Zones. These efforts will significantly raise industrial output enabling Pakistan to take advantage from Phase II of China Pakistan FTA.
Otherwise, Pakistan will not be able to receive benefits from supposedly vast opportunities available to us and the fate of Second Phase of China Pakistan FTA will not be any different that the First Phase.
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Pakistan Customs assures eliminating import barriers
KARACHI: Pakistan Customs has assured commercial importers of eliminating import barriers and improve facilitations through online system WeBOC.
Dr. Mohammad Nadeem Memon, Collector of Customs, has assured to solve the problems facing the commercial importers at the import level and also provide all possible facilities.
He was talking to a delegation called by Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman and former Director of Pakistan Stock Exchange, Amin Yousuf BalgamWala. Amjad Yaqoob, Muhammad Idrees and Mohammad Sabir were also present in the meeting.
The meeting discussed the issues with delegation including WeBOC and said that would be tried to resolve the difficulties of the members of the association on priority basis so that there would be no barrier to imports.
Amin Yusuf Balgamwala, Chairman, PCDMA and former Director of Pakistan Stock Exchange informed about problems and said that PCDMA was always helping in customs price valuation for the last 30 years, but at the import level, commercial importers are facing various problems that need to be addressed.
He requested to the collector of customs that PCDMA represents commercial importers across Pakistan and regional offices are established in Lahore and Faisalabad besides headquarters in Karachi, therefore, the recommendations of the association in the WeBOC should be accepted on regular basis and facilitate PCDMA members with regard to ID.
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FPCCI demands uninterrupted gas supply to meet export targets
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday urged the government to allow gas connections to new industrial units and uninterrupted gas supply to existing units in order to meet export targets.
Mian Anjum Nisar, President and Sheikh Sultan Rehman, Vice President of the Federation of FPCCI urged the government to provide gas connection to new industrial units as well as uninterrupted supply of gas to existing industries in order to meet export targets.
They strongly criticized the stoppage of gas to industrial estates of Karachi by Sui Southern Gas Company Ltd, resulting in serious loss of productivity.
This in turn leads to failure in meeting export orders on time and financial losses to exporters as they have to ship by air to meet the deadlines.
They expressed their displeasure that industrialists of Karachi had to resort to sit-ins on this issue.
They underscored the need to provide basic amenities like water, power and gas so that industrialists can focus their attention on increasing productivity and meeting export targets rather than protesting on the streets.
They urged the government to wholeheartedly support the industry which is facing a very hostile environment and fighting for survival.
“Failure to supply uninterrupted gas will lead to further closure of industry resulting in increased unemployment and serious law and order situation in the near future”, they added.
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Razak Dawood hints incentives for exporters in next budget
KARACHI: Abdul Razak Dawood, Adviser to Prime Minister on Commerce, Industry and Production on Saturday said that the ministry of commerce is planning a comprehensive strategy with the help of Federal Board of Revenue (FBR) to introduce export incentives in the next federal budget 2020/2021.
Razak Dawood was addressing during his visit to Karachi Chamber of Commerce and Industry (KCCI). He said that increase in exports is must for economic growth. The adviser said that the purpose of increasing exports is to boost foreign exchange reserves of the country.
The adviser said that the economy was facing immense challenges a year ago. The economy was facing monthly $2 billion deficit during the period. The present government had taken decisions to improve the economic condition. “These decisions have resulted in shrinking current account deficit,” he added.
The foreign exchange reserves of the country have increased to $18 billion from $11 billion.
He pointed out criticism on five percent growth in exports and rupee devaluation and said that it should be realized that globally exports had declined. He said that Pakistani exports had increased in terms of volume.
Razak Dawood said that exports should be duty and tax free. “In this regard we are planning with the FBR to facilitate exporters,” he added.
He informed that India was allowed duty drawback on around 1,000 items. “If India is granting duty drawback on 1,000 items then we should increase the numbers,” he added.
The adviser said that in the past the country had focused only on five sectors for exports. “We need to identify and increase the number of exportable items.”
He said that businessmen complaining about non-issuance of refunds. “This is not correct. The government has released Rs17.5 billion refunds,” he added. “This month more refunds will be issued to non-textile sector.”
The adviser said that the export of meat and poultry had increased by 54 percent. “We analyzed data and identified the exports of livestock was going to Saudi Arabia and UAE,” he said, adding that around 60 tons sea food products had been exported to China.
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Exporters missing shipping deadline due to strike
KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday said exporters are missing shipment deadline due to transporters’ strike.
The APTMA in a statement said that the recent strike by the transport sector is going to impact exports significantly as there are no empty containers are available in upcountry for exports.
APTMA spokesman said that as a result of unavailability of empty containers in upcountry due to strike of transport sector, exporters are missing shipment deadlines.
One additional factor that is a major cause of the scarcity of containers is the large number of orders that have been received from China after the effectiveness of the Phase II of the Free Trade Agreement between China and Pakistan.
APTMA Spokesman further said that even if the containers were to be dispatched from Karachi today they would take 3 days to reach upcountry where exporters have already have had 2 days without containers; effectively a further week of exports would have been delayed/lost.
Under these circumstances, we request the government to take immediate action for resolving the issue so that no more exporting deadlines are missed.
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FPCCI, KCCI sit together after long time
KARACHI: Members of Pakistan Federation of Chambers and Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) on Wednesday sit together after defeat of SM Muneer led group in the recent elections of FPCCI.
Siraj Kassem Teli, Chairman of Businessmen Group (BMG) along with office bearers of KCCI visited FPCCI on the invitation of newly elected FPCCI president Anjum Nisar.
President FPCCI Anjum Nisar in his welcome address appreciated the role of KCCI in supporting him in the election.
He vowed that business community would evolve a joint strategy for resolution of problems.
Nisar said that the economic conditions were not good and it was difficult for industries to operate in higher interest rates.
BMG chairman Siraq Kassem Teli, who visited the FPCCI after about 20 years, praised the unity of business community.
He said that his group would fully support the FPCCI on economic issues.