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Category: Trade & Industry

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  • Kuwait ready to ease visa policy for Pakistani businessmen

    Kuwait ready to ease visa policy for Pakistani businessmen

    KARACHI: Salem Yousif Al-Hamdan, Consul General of Kuwait, has said that his government is ready to ease visa policy for Pakistani businessmen.

    In order further discuss and devise strategies for easing the issuance of business visas, the Kuwaiti Interior Ministry was ready to hold negotiations and in this regard, Pakistan’s Ministry of Interior had been approached quite some time ago but unfortunately they have not received any response from them so far, the Kuwaiti Consul General said at a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI).

    A press release issued by the KCCI on Wednesday quoted the consul general as saying that around 120 communities were living in Kuwait which was the basic reason why Kuwait has to adopt stringent visa policy which was not just for Pakistanis but also for all the foreigners.

    “We want to ease issuance of business visa hence, negotiations must take place between the Interior Ministries of the two friendly countries as soon as possible,” he added.

    Kuwaiti Consul General pointed out that China Pakistan Economic Corridor (CPEC) was a very important project which would have a positive impact not only on Pakistan but the entire region.

    “To attract the interest of Kuwaiti business community and other investors from the Gulf, we asked the Government of Balochistan to organize a CPEC Conference in Karachi and we will make sure that this conference is attended not only by the Kuwaiti business community but also by other potential investors from the gulf region,” he said, adding that this conference would help in raising awareness about the significance of CPEC project and provide a perfect opportunity to highlight the immense CPEC-related investment opportunities in Pakistan.

    Salem Al-Hamdan further mentioned that Kuwait has signed many MoUs with different institutions from all provinces in Pakistan while work on some of these MoUs has already begun and the Kuwaiti Investment Authority was also intending to undertake numerous projects in Pakistan, particularly in Sindh province.

    Referring to an MoU signed between Kuwait Chamber and Karachi Chamber, he said that both chambers had excellent relations in the past but with the passage of time, some gap has developed as no interaction was taking place between the two institutions.

    “Hence, I decided to visit KCCI and will certainly be making efforts to restore communication between Kuwait and Karachi Chambers by playing the role of bridge between the two institutions,” he added.

    He said that Pakistan and Kuwait, being brotherly and friendly countries, have been enjoying very old and good relations as many commodities were smoothly being traded while Kuwaitis have very positive sentiments for Pakistanis.

    “The two countries have good trade ties and many Pakistanis have also been working really hard in different sectors of Kuwaiti economy which is a testimony that we both are true friends,” he added.

    Kuwaiti CG was of the opinion that Karachi city, being the financial, trading and industrial center of the Pakistan with two ports, can offer a lot of trade and investment opportunities to Kuwaiti business community but the business communities of both the brotherly countries will have to meet regularly, exchange trade delegations and explore more avenues of trade and investment cooperation.

    Earlier, president KCCI Agha Shahab Ahmed Khan, in his welcome address, stated that Karachi, which is the economic hub of Pakistan, offers profitable investment opportunities and added facilities for trade, investment and joint ventures to business and industrial community from Kuwait.

    Karachi city, which contributes more than 70 percent revenue to the national exchequer, is an attractive place for Kuwaiti businessmen, who can surely earn maximum profits by undertaking joint ventures with their Pakistani counterparts.

    Commenting on economic relations between Pakistan and Kuwait, he said that both countries share cordial and healthy bilateral relations based on cooperation in different economic spheres.

    “During 2018, Pakistan exported goods worth $172.69 million to Kuwait as against exports of $166.78 million in 2017, showing a growth of 3.54 percent while our imports from Kuwait witnessed a decline of 4.11 percent to $1.40 billion during 2018 as against imports of $1.46 billion in 2017.”

  • OICCI releases key findings of IPR survey 2019

    OICCI releases key findings of IPR survey 2019

    KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) released findings from its 2019 Intellectual Property Rights (IPR) Survey on Tuesday, which shed light on the evolving landscape of intellectual property protection in Pakistan.

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  • Exporters claim Rs62 billion fresh refunds stuck up despite FBR’s 72-hour clearance assurance

    Exporters claim Rs62 billion fresh refunds stuck up despite FBR’s 72-hour clearance assurance

    KARACHI: The new 72-hour sales tax refund clearance strategy of Federal Board of Revenue (FBR) has failed as another Rs62 billion refunds were stuck up since launch of the new systems, exporters said.

    Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum in a statement on Friday said that around Rs62 billion of textile exporters liquidity held up with the government under FASTER Refund System in last 4 months, after imposition of 17 percent Sales Tax on Exports.

    Before abolishing SRO 1125 – zero percent sales tax for five export oriented industries –the government committed that sales tax refund claims payments will be paid immediately after submission of GD like Bangladesh Model.

    Contrary to Bangladesh Refund Model, Govt. launched FASTER by which sales tax refunds to be paid within 72 hours electronically. New FASTER system has been failed and FBR processing claims manually and SBP paying refund on advice of FBR.

    He said that huge amount of exporters’ liquidity of billions of rupees in Sales Tax Refund, Custom Rebate, Withholding Tax, DDT and DLTL has been stuck up with the government causing great sufferings to the already burdened exporters who are now at a loss to understand how to make both ends meet and such an alarming situation will ruin the export business of the Value Added Textile Exporters.

    On the demand of exporters, the government has withdrawn Refund Bonds electronically but payments against refund bonds have not been paid yet to the exporters, he informed.

    FBR also claimed that Custom Rebates shall be paid electronically with Export Proceeds as a result of system automation, however, the plan has not been turned into reality but previous backlog of eight months have been increased to twelve months.

    He added that due to financial hardships, Value Added Textile SMEs are not taking new export orders.

    It is pertinent to note that meager increase in the exports of value added textile sector due to previous policies of Government before Budget 2019-20.

    The impact of the policies of current Budget 2019-20 will be arrived in 2020 calendar year. It is a great irony that FBR vide SRO 747(I)/2019 dated 9th July, 2019 has withdrawn the exemption of sales tax and federal excise duty on buying of locally procured input goods by Export Oriented Units under SRO327.

    This Scheme was introduced on the pattern of Export Processing Zone (EPZ) where there is no taxes on buying of locally procured input goods and no taxes on utilities.

    Industries registered in Export Oriented Units (EOU) are liable to export 80% of their annual production. FBR should withdraw amendment to omit the clause 10 sub-section (b) and (c) of the Export Oriented Units and Small and Medium Enterprises Rules, 2008 so that exporters operating under Export Oriented Units can procure input goods without taxes as this is the safest scheme and item-wise individual analysis card is submitted in WEBOC.

    He said that exporters have a gut feeling that FBR with its harsh policies is trying to destroy value added textile export sector which is the largest export sector and labour intensive.

    It is an alarming situation that new comers are not interested in the business of export sector due to harsh incumbent government policies. Our existing Export Industry gets spillover orders from the international buyers and is surviving due to economy of scale and efficiency in the production.

    He demanded that government should clear all pending refund payments of exporters forthwith and restore zero rating (0%) of sales tax – no payment no refund regime in the best interest of exports, economy, foreign exchange earnings, employment etc.

  • Inflation cannot be controlled through high policy rate: FPCCI

    Inflation cannot be controlled through high policy rate: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that inflation in Pakistan is cost push and it cannot be controlled through tight monetary policy stance.

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  • US companies reluctant to visit Pakistan: USDA counselor

    US companies reluctant to visit Pakistan: USDA counselor

    KARACHI: Rey Santella, Agricultural Counselor of United States Department of Agriculture (USDA) has said although they were inviting the US business community but many of them were still reluctant to visit Pakistan mainly due to negative perception and also because of legal and Information Technology related hurdles that need to be addressed.

    While speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI), he said that Pakistan had many challenges in the past but the country has been progressing well and the situation was much better now.

    “Good opportunities for US investors exist in Pakistan where they can surely explore trade and investment opportunities in numerous sectors including the agriculture, dairy, food items and animal feeds etc.”

    Rey Santella pointed out that besides exporting meat, soybean and other agricultural products, non-fat dry milk worth US$50 million was also being sent to Pakistan annually.

    “There is a big potential for further expanding trade and investment ties between the two countries but the business communities will have to meet more frequently so that this potential could be realized.

    “Meanwhile, USDA, which is already cooperating in the agriculture sector, is ready to provide technical assistance and training of trainers in the dairy and animal husbandry that would lead to improving the productivity.”

    He sought KCCI’s assistance in identifying numerous trade opportunities so that these could accordingly be focused and disseminated amongst US companies with a view to improve the existing trade ties between the two countries.

    Rey Santella further informed that USDA will be participating in Gulfood Exhibition scheduled to be staged in Dubai in February 2020 where Pakistani companies can visit the stalls of numerous US companies to examine their products and services.

    Earlier, President KCCI Agha Shahab Ahmed Khan, in his welcome address, stated that it was really heartening to see many US companies were taking keen interest in Pakistani market hence, it was the right time to fully facilitate and encourage joint ventures between the business communities of the two countries in numerous sectors.

    He was of the opinion that there was a huge potential to enhance trade and investment cooperation between Pakistan and the United States, particularly in the agriculture, dairy, livestock, fisheries etc.

    “We must promote collaborations in all such sectors with huge trade and investment potential which would certainly prove favorable for both the nations”, he added while acknowledging the support and cooperation being extended by USDA.

    He mentioned that Pakistan, being the 4th largest producer of milk, produces around 54 billion liters of milk per annum hence, this was an area where the business communities of the two countries must look for joint ventures while the USDA must extend technical cooperation so that the dairy yield could be improved further.

    Agha Shahab further noted that as US has an advanced agricultural sector while Pakistan’s economy is also agri-based, it is very crucial to cooperate in this particular sector by focusing on exploring ways and means on how to transfer US technology to Pakistan’s agricultural sector, which was facing several issues including limited cultivatable land, water and fertilizer scarcities and also the energy crises.

    “US can provide assistance in enhancing the yield of cultivatable land and you can also share water conservation and energy saving techniques, besides providing good quality fertilizers at competitive prices to Pakistani farmers”, he added.

    He also underscored that instead of staying confined to just sending the same old traditional items only, the business community must look into the possibility of diversifying the exports by exploring new avenues and they must also effectively market their products and services in order to maximize share in the US markets.

  • FPCCI urges convention compliance for continuation of GSP Plus

    FPCCI urges convention compliance for continuation of GSP Plus

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to ensure compliance to international conventions for continuation of GSP Plus status granted by European Union (EU).

    In a statement issued on Saturday, Engr. Daroo Khan Achakzai, President, FPCCI urged the government to take all necessary measures in compliance of core international conventions pertaining to social compliance, including human rights, labor rights, environment and good governance which are pre requisite for the continuation of GSP Plus status to Pakistan.

    While highlighting the importance of GSP Plus, he stated that Pakistan is the major beneficiary of GSP Plus from EU which is the second largest trading partner of Pakistan after USA and has positive trade balance with the bloc.

    He stated that GSP Plus allows 20 percent of Pakistani exports to enter EU market at zero tariff and 70 percent at preferential rates and it was expected that Pakistan’s exports to the EU would increase by 20 percent or more during the next few years.

    EU GSP Plus granted in 2013 and since then our export has increased to US$ 7.9 billion from US$ 6.2 billion but this increase is only in textile and clothing while the exports of many products like carpet, pharmaceutical, iron & steel, edible fruit, oil seed, copper, plastic, sugar etc. has declined as compared to pre GSP Plus period, he lamented.

    Pakistan’s export to EU is mainly dominated by textiles and clothing which accounts 82 percent of total exports which is facing strict competition with Bangladesh and Sri Lanka.

    He underscored the need to diversify and value addition in Pakistan’s export including carpets, leather, furniture, plastics, sports goods and agriculture products to exploit the full potential of GSP Plus.

    The EU assessment report (2016) has also indicated that Pakistan’s export to EU is heavily relied on one product which indicates a risky situation for Pakistan, he added.

    The President FPCCI also appreciated the signing of the EU-Pakistan Strategic Engagement Plan (SEP) in June 2019 for the establishment of a Security Dialogue, expanding relations in the areas of connectivity, migration, mobility, climate change and energy, education and culture, and science and technology.

    He also underlined the need of enhancement of foreign investment in Pakistan from EU as Pakistan has improved its ease of doing business and has brought several reforms in business.

  • 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.