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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.

  • German body seeks investment opportunities in Pakistan

    German body seeks investment opportunities in Pakistan

    KARACHI: A 20-member German Emirati Chamber of Commerce & Industry (AHK) business delegation, which is visiting Pakistan for a firsthand assessment of business and investment opportunities in the country held a meeting today with foreign investors, members of Overseas Investors Chamber of Commerce and Industry (OICCI).

    The German Business delegation was accompanied by Holger Ziegeler, German Consul General in Karachi, and First Secretary for Economic Affairs at the German Embassy in Islamabad.

    OICCI CEO/Secretary General M. Abdul Aleem, shared a detailed presentation, highlighting the liberal policies in Pakistan for foreign direct investment (FDI) which offers tremendous opportunities for new investment. Commenting on the investment opportunities in Pakistan, Aleem stated: “OICCI members have benefitted by taking a longer-term view which is illustrated by the fact OICCI members have re-invested over US$ 18 billion in the last 9 years which is more than the total FDI inflow into the country during this period.”

    The OICCI shared with the 20 members of the German Business delegation the results of the recent Business Confidence Index Survey carried out from May to July 2021 showing a dramatic upswing in Business confidence across Pakistan by 59 per cent since the last BCI survey done in the same period in 2020. “The OICCI members randomly included in the survey are more upbeat as their confidence level has gone up by 108’, Aleem added.

    Oliver Oehms, CEO of the visiting German Emirati Joint Council for Industry and Commerce and other members of the delegation enquired about several matters, including potential sectors for investment, special concessions for major investment in Pakistan, incentives relating to Special Economic Zones, major development projects on tourism, the impact of increasing inflation on businesses in Pakistan,  tax incentives for putting up export-based industries using imported raw materials and the most reliable government agency to facilitate the potential foreign investors. All the queries were duly responded by the OICCI members at the meeting.

    Record improvement in foreign investors’ confidence
  • PHMA organizes seminar on export facilitation scheme

    PHMA organizes seminar on export facilitation scheme

    KARACHI: A seminar was organized by the Pakistan Hosiery Manufacturers and Exporters Association (PHMA) in collaboration with the Federal Board of Revenue (FBR) on new Export Facilitation Scheme 2021 (EFS 2021).

    The export facilitation scheme was notified through SRO957(I)/2021 dated July 30, 2021.

    The seminar was organized on Wednesday simultaneously at PHMA House, Karachi, Lahore, Faisalabad & Sialkot.

    A large number of textile exporters participated physically at PHMA Offices and also joined this session online on Zoom and YouTube.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim and Moeen Afzal, Additional Collector, Model Collectorate of Customs (Exports) Port Qasim participated from Customs, Federal Board of Revenue to brief the salient features and registration process of Export Facilitation Scheme 2021 (EFS 2021).

    Muhammad Jawed Bilwani Chief Coordinator & Former Central Chairman PHMA welcomed the Customs Officials at PHMA for this orientation seminar to enlighten the exporters about the main features of EFS and to answer questions asked by exporters.

    He appreciated that PHMA and FBR jointly believe in facilitating the exporters in order to contribute in the economic prosperity of Pakistan.

    Both are working closer like hands in gloves in order to facilitate the taxpayers and exporters. With the best efforts and productive proposals of PHMA, the FBR’s FASTER and WEBOC Systems have been improved and working efficiently and exporters are getting their refunds online smoothly and all credit goes to the then Member IR Operations & sitting Chairman FBR, Dr. Muhammad Ashfaq Ahmed, Member Customs Operations FBR Syed Muhammad Tariq Huda and their team who eliminated human intervention and brought automation and reforms in the FBR System to facilitate the exporters.

    He also appreciated the Government’s initiative of the “Pakistan Single Window (PSW)” portal is to provide a single electronic platform for facilitating compliance with the regulatory regime for cross-border trade in Pakistan.

    Bilwani assured that PHMA shall also extend complete support to Customs with regards to the implementation of EFS 2021. PHMA has also introduced EFS Help Desk at its RDA Cell to support member exporters.

    Amir Thahim, Collector, Model Collectorate of Customs (Exports) Port Qasim addressing the leading exporters stated that the FBR believes in maximum facilitation to exporters enabling them to enhance exports to ultimately benefit the country to earn foreign exchange. He apprised that the FBR has been continuously working to improve and develop the taxation system through reforms and automation.

    In this connection, automation has been enhanced and public dealing has become limited particularly for the exporters. Introduction of export facilitation scheme 2021 is another milestone step from Customs to provide three scheme i.e. Export Oriented Unit, Manufacturing Bond, DTRE under a unified scheme which will benefit exporters particularly SMEs.

    The new scheme is simplified wherein exporters can apply online without visiting Custom House. Focal Person shall also be appointed to promptly address the queries and maximize facilitation to exporters.

    Moeen Afzal Additional Collector, Model Collectorate of Customs (Exports) Port Qasim gave a detailed presentation on the main feature of Export Facilitation Scheme 2021 wherein he informed that the new scheme will run parallel with existing schemes such as Manufacturing Bond, DTRE and Export Oriented Schemes for two years.

    The existing old schemes shall be phased out in the next two years and will be fully replaced by Export Facilitation Scheme-2021. The EFS 2021 Rules can be accessed at the official website of the FBR.

    The powers, functions and role of the Input-Output Coefficient Organisation (IOCO) under the new scheme has also been revised. The IOCO Director shall upload the value of input.

    It is expected that the Export Facilitation Scheme 2021 will reduce the cost of doing business and cost of tax compliance, improve ease of doing business, reduce liquidity problems of exporters by eliminating sales tax refunds and duty drawbacks for the users of the scheme, and shall attract more users and shall ultimately promote exports. Inputs include all goods (imported or procured local) for the manufacture of goods to be exported.

    These include raw materials, spare parts, components, equipment, plant, and machinery. No duty and taxes shall be levied on inputs imported by the authorized users and local supplies of inputs to the authorized users shall be zero-rated.

    Through this new scheme, Common Export House will import inputs duty and tax-free for subsequent sale to the authorized users especially SMEs. This scheme will encourage new entrants and SMEs.

    This scheme will be completely automated under WeBOC and PSW where users of the scheme and regulators (IOCO, Regulator Collector, PCA etc.) shall be integrated through WeBOC and PSW and communicate through these systems.

    In the end, exporters asked several questions related to the new schemes which were answered by the Collector and Additional Collector, Model Collectorate of Customs (Exports) Port Qasim.

  • PYMA demands cotton import through land routes

    PYMA demands cotton import through land routes

    KARACHI: Pakistan Yarn Merchants Association (PYMA) on Tuesday demanded the government to allow duty free import of cotton and cotton yarn through land routes, including India.

    The PYMA appealed to Prime Minister Imran Khan to take steps to reduce the cost of production of the value-added textile industry, in view of the shortage of cotton, cotton yarn and the skyrocketing prices and allow duty-free import of cotton and cotton yarn from Turkey, India and Uzbekistan by land. So that exporters can compete in the ongoing price race in international markets.

    In the appeal to Prime Minister, Hanif Lakhany, Vice President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) & Senior Vice Chairman Pakistan Yarn Merchants Association (PYMA), Farhan Ashrafi, Vice Chairman PYMA and convener FPCCI’s Central Standing Committee on Yarn Trading, said that the value-added sector in the country is facing immense difficulties due to shortage and price of cotton and cotton yarn reaching record levels, as cotton yarn is not available to these export industries even at high prices as per the production demand.

    “If this situation continues, not only will it be difficult to fulfil export orders, but Pakistani exporters will also lose the ability to compete in global markets. Which could have a negative impact on the country’s exports, so the government should seriously consider PYMA’s proposal in the best interest of the country’s economy”, they feared.

    PYMA office-bearers added that the exporters in the value-added sector are reluctant to accept new orders due to difficulties in procuring basic raw materials. Due to which these orders can be transferred to other countries.

    Hanif Lakhany, Farhan Ashrafi appealed to Prime Minister Imran Khan to assist exporters in fulfilling old export orders in time and taking new orders, while also issue directives to allow duty-free import of cotton, cotton yarn from Turkey, India, and Uzbekistan by land. This will not only reduce the import period of raw materials but will also help in reducing the cost of freight charges.

    Yarn traders demand restoring turnover tax rate at 0.1pc
  • KCCI demands COVID restrictions ease for businesses

    KCCI demands COVID restrictions ease for businesses

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has demanded the Sindh government to ease restrictions imposed related to business hours for markets and commercial activities.

    Chairman Businessmen Group Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra have appealed to the Sindh Government to have mercy on perturbed small traders, shopkeepers, and restaurant businesses who must be allowed to keep their business activities operational throughout the week from Monday to Saturday without any closure on Friday whereas the business timings must also be extended till 10:00 PM.

    Expressing deep concerns over an ongoing sit-in and hunger strike by shopkeepers and small traders along with owners of restaurants and marriage halls, Zubair Motiwala and Shariq Vohra requested the Chief Minister Sindh Syed Murad Ali Shah, Minister for Local Government Nasir Hussain Shah, Minister for Information Saeed Ghani and Minister for Industries Jam Ikramullah Khan Dharejo to intervene in this matter and issue directives to ease the curbs on local businesses in Karachi otherwise many businesses, who are at the verge of complete collapse and bankruptcy, would vanish forever.

    Millions of people associated with all these businesses would die themselves due to mental torture, hunger, poverty, and joblessness instead of dying because of the pandemic, they cautioned.

    They pointed out that there was a clear disparity going on as the businesses in Punjab, other parts of the country and even in other cities all over Sindh excluding Karachi and Hyderabad have been allowed to stay operational throughout the week and up to 10:00 PM which has triggered a sense of deprivation amongst the business community of Karachi and Hyderabad.

    They said that associations of commercial markets from all over the city have been constantly approaching KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating throughout the week except Sundays.

    Meanwhile, they have also assured that all shopkeepers and their staff have got themselves vaccinated and they were also prepared to fully comply with all the Standard Operating Procedures (SOPs) notified by the government.

    Keeping in view the overall situation and grievances suffered by small traders and shopkeepers in an extraordinary situation, Zubair Motiwala and Shariq Vohra hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs and allowing the businesses to operate from Monday to Saturday up to 10:00 PM so that they could be saved from further disaster.

  • President Alvi says economy heading in right direction

    President Alvi says economy heading in right direction

    ISLAMABAD: The President of Pakistan, Dr. Arif Alvi has said that the economy of the country is heading in the right direction. It reflects the confidence of the business community in the economic policies of the government.

    (more…)
  • Builders, developers demands action against price hike

    Builders, developers demands action against price hike

    KARACHI: Fayyaz Ilyas, chairman, Association of Builders and Developers of Pakistan (ABAD), has demanded stern action against the cartel of cement manufacturers. He said that cement and steel are basic raw material for the construction industry

    (more…)
  • Textile exporters urge allowing cotton import from India

    Textile exporters urge allowing cotton import from India

    KARACHI: Textile exporters have urged the government to allow import of cotton and cotton yarn from India and other countries through land routes.

    (more…)
  • Finance minister asks cement producers to reduce prices

    Finance minister asks cement producers to reduce prices

    ISLAMABAD: Finance Minister Shaukat Tarin has emphasized to reduce the prices of cement as the industry is of paramount importance due to its backward and forward integration with the construction sector as a whole.

    The finance minister held a meeting with the representatives of cement manufacturers at the Finance Division on Tuesday.

    Federal Minister for Industries and Production Makhdum Khusro Bakhtiar, Secretary Ministry of Industries & Production, Secretary Finance Division and other senior officers participated in the meeting.

    Secretary, Ministry of Industries and Production briefed the participants about the prevailing cement prices.

    He also drew a comparison about changes in the price of cement per bag over the last three years particularly amid COVID-19 pandemic.

    He highlighted the important role being played by the cement industry in stimulating economic growth during testing times.

    In his remarks, the Finance Minister underscored the importance of cement as a building block of the Construction Industry.

    He lauded the valuable contribution of the cement industry which has triggered a V-shape economic recovery during Coronavirus pandemic in the country.

    He underlined various stimulus measures taken by the Government to support the construction industry that led to a strong rebound in economic activity during the ongoing pandemic, he added.

    While speaking on the occasion, the Finance Minister stressed the need to provide industrial inputs such as Cement and Steel at affordable prices to carry forward the momentum of economic recovery amid COVID-19 as well as in post-COVID-19 scenario.

    He emphasized to reduce the prices of Cement as the cement industry is of paramount importance due to its backward and forward integration with the Construction sector as a whole.

    The representatives of cement manufacturers also presented their perspective on the occasion. They were of the view that the recent escalation in the prices of cement are driven by the rise in input costs.

    Also the overall profitability in the cement sector is still the lowest as compared to other countries in the region.

    In his concluding remarks, the Finance Minister urged the representatives of the Cement Manufacturers to hold a consultative session with relevant stakeholders and present a firmed-up proposal regarding sustainable pricing mechanism for cement sector in order to boost the overall Construction Industry by providing industrial inputs at a reasonable cost.

    The Finance Minister affirmed full support and facilitation to the cement industry on the occasion.

    Tarin orders release refunds to edible oil importers
  • Pakistan, Iran should devise payment mechanism

    Pakistan, Iran should devise payment mechanism

    KARACHI: The two central banks of Pakistan and Iran should devise a mechanism for swift payment in order to enhance bilateral trade between the two countries.

    Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said on Tuesday while welcoming Hassan Nourian, Consul General of Islamic Republic of Iran in Karachi and Mahdi Amir Jafari, Third Consul for Economic Affairs, at the Federation House, Karachi.

    Primarily, the two central banks need to devise a mechanism for smooth and swift payment systems for the bilateral trade as the starting point in the right direction; as that will give confidence to traders on both sides, the FPCCI president added.

    The FPCCI is very keen to enhance bilateral trade between the two countries and for that matter removal of the bottlenecks is warranted; namely, lack of banking and financial channels; absence of barter-trade agreements or mechanisms at governmental level and unfair geopolitical pressures.

    He explained that the central/state banks of the two countries and apex chambers of commerce and industry need to come closer; and, we can immediately start the consultative processes immediately at various levels through webinars. He also offered FPCCI’s assistance and its platform for making efficient and tangible linkages.

    Maggo also requested Export Guarantee Fund of Iran (EGFI) to extend their funding guarantees to more traders with enhanced limits and play a role of a catalyst.

    He added that he is worried on the COVID situation in the brotherly country of Iran and hoped that Iranian people will soon overcome the menace on the back of their ever-persistent resilience and high hygiene standards.

    On the occasion, Hassan Nourian said that the formal trade between the two countries stands only at $1 billion and it is too low; given the fact that the combine population of Pakistan and Iran is 300 million.

    He added that there might be informal trade along the lines; but, the two countries must work in tandem to progressively increase the bilateral trade on a sustainable basis.

    Hassan Nourian emphasized that the quality of Iranian products is world-class and Iranian industry buys their plants mostly from best manufacturers.

    He also appreciated the willingness of Pakistani Embassy in Iran for supporting enhancement of bilateral trade.

    Hassan Nourian pointed out that there is still a huge untapped potential for Pakistani fruits in Iran; particularly, various varieties of mango. He also emphasized that petrochemical industry is very advanced in Iran technologically and can greatly help Pakistan with their foreign exchange strains.

    Hanif Lakhany, Vice President, FPCCI, pointed out that tariffs are playing out as a major hindrance; as the tariffs are very high on both the sides; and, that results in rendering bilateral trade uncompetitive.

    Nasir Khan, vice president FPCCI, said that during a recent meeting with State Bank Governor, FPCCI raised the issue of lack of banking channels with Iran and the SBP has asked to discuss the matter further in the light of currently in place bilateral mechanisms between Iran and other countries, like China, India, Turkey, etc.

  • Tarin orders release refunds to edible oil importers

    Tarin orders release refunds to edible oil importers

    ISLAMABAD: Finance Minister Shaukat Tarin on Monday directed tax authorities to expeditiously release refunds to importers of edible oil importers.

    He issued the directive at a meeting with a delegation of Pakistan Vanaspati Manufacturers Association (PVMA).

    The finance minister directed the chairman of Federal Board of Revenue (FBR) to assure expeditious disbursement of refunds to the importers of vegetable ghee/oil to ensure availability of funds.

    Federal Minister for Industries and Production Makhdoom Khusro Bakhtiar, SAPM on Finance and Revenue Dr. Waqar Masood, Secretary M/o Industries and Production, Chairman FBR and other senior officers participated in the meeting.

    While welcoming the Chairman PVMA, the Finance Minister expressed his concern over the rise in the prices of edible oil/ghee in domestic markets over the period of time.

    The Chairman PVMA briefed the Finance Minister about the international hike in prices of palm and soyabean oils particularly during ongoing COVID-19 pandemic. The international prices kept fluctuating between the range of $1100 – 1257 per ton and the domestic market drives rates from the prevailing international prices and the dollar value.

    The exchange rate also has a significant impact on edible oil prices in the country, he added.

    While taking stock of the situation, the Finance Minister urged PVMA to adopt market-based solutions and bring down prices in the domestic market in line with the international price trend.

    If there is a slight dip in the international market, it must be reflected in the domestic prices so that the consumers get relief amid highly fluctuating edible oil market.

    The finance minister stressed the need to evaluate the whole situation rationally and urged PVMA to come up with sustainable pricing mechanism in collaboration with the Ministry of Industries & Production and FBR.

    He constituted a committee comprising representatives of PVMA, Secretary Ministry of Industries and Production and Chairman FBR to workout arrangement for streamlining collection of sales tax and a predictable pricing formula. The Chairman PVMA assured full cooperation in providing maximum relief to the domestic consumers by absorbing international pressure on prices in the edible oil sector.