In a significant development, the Sindh Government’s decision to unilaterally increase the minimum wage from Rs17,500 to Rs25,000 has stirred discontent and alarm within the industrial sector, particularly in Karachi.
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FPCCI organizes seminar for using Amazon platform
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has organized a seminar for using Amazon platform.
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FPCCI opposes new SOPs by Sindh government
KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has voiced concerns over the enforcement of new Standard Operating Procedures (SOPs) for COVID-19 prevention by the Sindh government.
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FIA making all-out efforts to resolve cyber crime related complaints: DG
KARACHI: The Federal Investigation Agency (FIA) is making all out efforts to resolve complaints related to cyber crime.
FIA Director General Dr. Sanaullah Abbasi said this at a meeting with members of Karachi Chamber of Commerce and Industry (KCCI).
According to a statement issued on Saturday by the KCCI, the DG FIA briefed the business community about initiatives taken for promptly dealing with digital banking and cyber crime cases.
“Cybercrime has been rising as we are receiving a lot of complaints. Hence, we are making all out efforts and will try our best to resolve such complaint at the earliest,” he added.
To a suggestion, he assured to look into the possibility of providing online facility for hearing to the members of business community to save them from travelling all the way to FIA circles in far-flung areas.
“This online hearing mechanism could be set up for handling cases/ notices being received from faraway circles all over Pakistan to minimize the hardships being faced by business community,” he added while speaking at an online meeting.
The meeting was attended by General Secretary BMG AQ Khalil, President KCCI Shariq Vohra, Chairman Law & Order Subcommittee Junaid-ur-Rehman, Former Presidents KCCI Majyd Aziz & Iftikhar Vohra, Director FIA South Amir Farooqi, KCCI Managing Committee Members and FIA officials.
DG FIA Sanaullah Abbasi stated that it was the motive of FIA to fully serve and facilitate the business community.
He nominated Director FIA South Amir Farooqi as the focal person for dealing with complaints raised by the Karachi Chamber.
General Secretary BMG A.Q Khalil underscored the need to simplify the visa on arrival facility at the airports. He said the foreigners, particularly businessmen face immense hardships in availing this facility.
“Under the existing policy, a Deputy Director of FIA is responsible for either issuing or rejecting visa to any foreign investor without consulting with any Chamber of Commerce or relevant local businessmen.
“Such bureaucratic hurdles create a lot of problems and at many occasions as some of the credible foreign investors face deportation that needs to be given special attention as it sends a negative message about Pakistan,” he added.
He further advised DG FIA to publicize the progress reports and achievements in dealing with the menace of cybercrimes as a lot was being claimed but nothing much has been publicized.
“Pakistan has remained in the grey list of FATF from quite some time now and we are not much acquainted about our shortcomings whereas it has also been observed that FIA has been constantly intervening in business transactions hence, the FATF conditions for money laundering have to be effectively highlighted so that the business community could comply to the same and accordingly carry out their transactions,” AQ Khalil suggested.
President KCCI Shariq Vohra pointed out large number of notices issued by the FIA. “… we request DG FIA to also take look into the matter of large number of notices being issued to the members of the business community by FIA which are a major source of harassment,” he added.
Expressing deep concerns over notices being issued to KCCI members from FIA circles in Multan, Faisalabad and other far-flung areas where FIA officials ask relevant businessmen to appear physically for hearing or face severe consequences.
Chairman of KCCI’s Law & Order Subcommittee Junaid ur Rehman underscored to devise an effective mechanism for holding all such hearing in Karachi and if the cases were found not so serious, these should be immediately disposed of without creating more difficulties for businessmen and industrialists.
He also requested DG to enhance the capacity of system implemented for handling the cases pertaining to digital banking crimes and make it more efficient.
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Section 203A to result in corruption, harassment: FPCCI
KARACHI: Nasir Khan, acting president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that the government has not incorporated practical, business-friendly and growth-promoting proposals of FPCCI in the budget; sent well before the Budget 2021-22.
He maintained that it is a gross negligence on government’s part to ignore the apex representative body of Pakistan’s business, industrial and trade community.
Nasir Khan also criticized the Section 203A of Income Tax Ordinance, 2001 introduced through the budget 2021/2022, which empowers and expands the discretionary powers of FBR.
He added that it will only result in increase in corruption and harassment. He added that although Section 203A has been amended through introduction of slabs; but, still FPCCI is of the view that powers to arrest and prosecute will create fearful and discouraging environment for SMEs.
He said that Section 203A is equivalent to NAB’s law and provision should be added to make FBR accountable; if it cannot establish any corruption or tax evasion. This Section 203A also violates basic rights and the honourable Supreme Court should intervene to protect the businessmen of the country.
Acting President of FPCCI also pointed out that a blanket exemption for FED has been given to FATA and PATA; without surveying and quantifying the genuine needs and total demand of FATA and PATA population.
This will render industries in adjacent regions and all over the country uncompetitive in comparison to those industrial units which are exempt from FED in FATA and PATA. He added that there is a strong possibility that industrial units may exploit the FED exemption and utilize it to produce for regions other than FATA and PATA. He also added that there must be a strict mechanism to avoid misuse of the FED exemption and subsequent prosecution.
Nasir Khan also expressed his shock that FPCCI sent its recommendations on tax system reforms and simplification of tax rates to Prime Minister and he instructed FBR to have a consultative process with FPCCI; but, FBR did not start that process. He also mentioned that Shaukat Tarin promised that the budget will not be made without consulting FPCCI; but, unfortunately, that promise was also not kept.
Nasir Khan has suggested that corporate courts should be established in the country to counter and balance the weak policies of the successive governments and ensure protection to SMEs.
Nasir Khan mentioned that surprisingly FBR has made a banker the head of its Budget Anomalies Committees; who has no understanding of trade, SMEs and economic affairs.
Zakaria Usman, Convener Budget Advisory Council of FPCCI, said that the government should ensure consistency of policies to encourage investment in the country.
FPCCI demands that the Honourable Prime Minister of Pakistan must intervene and resolve the issues that are anti-business and anti-growth. FPCCI is ever-ready to resolve all outstanding issues through discussion and a mutually-beneficial dialogue.
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American Business Council appreciates taxpayers’ facilitation measures
KARACHI: The American Business Council (ABC) of Pakistan has appreciated the efforts of the government to facilitate taxpayers, ameliorate ease of doing business and incentivize digitization of the economy, according to a statement released on Tuesday.
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Water shortage stalls industrial production: NKATI chief
KARACHI: Industries located in North Karachi have facing acute water shortage for the past many days and due to this production activities have been stalled and it is feared that export orders may be missed.
Faisal Moiz Khan, President, North Karachi Association of Trade & Industry (NKATI), while expressing deep concern over non-supply of water to the industries, requested Sindh Governor Imran Ismail and Syed Murad Ali Shah, Chief Minister Sindh to take notice of the severe and issue directives to Managing Director Water Board for supplying water as per consumption of the industries. So that production activities can continue without any hindrance.
In a statement, Faisal Moiz Khan said that water is of utmost importance for the continuation of production activities and is one of the basic raw materials, but these days, North Karachi’s industries are facing severe water shortages, while the tanker mafia has plenty of water. In contrast, water is not available from water board lines, which is a question mark?
“Production activities are stalled due to non-availability of water to factories. This can affect both the production of goods and the timely delivery of foreign orders”, he feared.
NKATI Chief also protested against the attitude of the MD Water Board, and said that when the MD Water Board was contacted about the non-supply of water to the industries as per the demand, he did not give any positive response to the industrial community. On the contrary, his attitude was highly reprehensible
Faisal Moiz Khan requested Sindh Governor Imran Ismail and Syed Murad Ali Shah, Chief Minister Sindh to issue directives to MDMD Water Board to adopt a better attitude towards the industrial community and ensure water supply as per the demand while resolving issues on priority basis. Otherwise, production activities will be severely affected, which will have a negative impact on the country’s overall exports.
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KATI seeks precautionary measures before rains
KARACHI: Korangi Association of Trade and Industry (KATI) has urged the authorities to take precautionary measures before heavy rains in order to avoid human and financial losses.
Patron-in-Chief S M Muneer and President Saleem-uz-Zaman has said that the Meteorological Department in coming days has forecast heavy rains in Karachi.
In such cases, precautionary measures should be taken to avoid any possible incident. K-Electric, at the request of KATI, had elevated the grid stations of the industrial area and secured the electrical installations to save precious lives, which has greatly reduced the risk of any possible accidents during rains.
They embassies on awareness campaigns and special messages should be issued to the people to take precautionary measures before the rains.
S M Muneer appealed to the people of Karachi, especially the employees and labors to be careful in the rains, stay away from electrical installations and avoid installing Kunda during rainy season.
Saleem-uz-Zaman requested the factory’s administrations of Korangi Industrial Area to take precautionary measures before the rains and save the lives of the employees.
President KATI suggested that special messages be issued by the concerned departments for pre-rain awareness and special teams be formed to protect precious human lives and property of the people from damage.
Saleem-uz-Zaman appealed to the government agencies to complete the repair of the city’s highways and manholes so that the rains do not become a nuisance for the citizens like last year.
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Foreign investors pay Rs1.4 trillion as annual tax revenue in Pakistan
KARACHI: The foreign firms operating in Pakistan have paid around Rs1.4 trillion as duty and taxes during fiscal year 2020/2021, said Overseas Investors Chamber of Commerce and Industry (OICCI) on Monday.
The OICCI is the chamber of leading over 200 foreign investors in Pakistan belonging to 35 countries. It released the consolidated financial contribution of its members for the year 2020 based on feedback from 170 members, 50 of whom are subsidiaries of Fortune 500 companies.
The foreign investors have contributed significantly towards the GDP of the country and have maintained the OICCI position as the largest chamber of commerce in terms of economic contribution in the country. This comprehensive survey is being conducted annually since 2009.
Elaborating on the key features of the OICCI 2020 Economic Contribution survey, Irfan Siddiqui, President OICCI highlighted that “we are proud that in the past twelve months, OICCI members, despite very challenging and uncertain business environment due to COVID-19 impact on the business and life of people globally and in Pakistan, contributed over Rs 1.4 trillion, or approximately Rs five billion each working day, towards the tax revenue of Pakistan, approximately one third of the total tax collection in the country. Two of the OICCI members paid taxes in excess of Rs 100 billion each “.
Commenting on the significant contribution of foreign investors in the economy of Pakistan, Irfan Siddiqui added “OICCI members believe in Pakistan and going forward are keen for playing a more prominent role in a growing economy supported by a predictable, transparent and stable policy framework and a business friendly regulatory and operating environment”.
OICCI members have in the past nine years invested over US $ 18 Billion, largely in the Energy, Telecom, Chemicals, Food /FMCG and Banking sectors. “With an asset base of US $ 137 Billion,” Secretary General, OICCI, M Abdul Aleem added,” OICCI members’ maintained their position as the leading investors in Pakistan during 2020 with new investments of over US $ 2.4 Billion mainly in the Energy, Telecom and Chemicals sectors.”
Besides the monetary contribution, OICCI members also play a leading role in the transfer of technology, digital transformation, introducing latest inventions and sharing of best practices in the field of manufacturing operation, supply chain and marketing of internationally renowned brands.
Moreover, OICCI members, as a group, are the largest contributor towards the social sectors. In the last one-year OICCI members contributed Rs 8 billion to social initiatives, benefiting 62 million people throughout the country, and also contributed an additional Rs 8 billion for the various government and private sector COVID-19 containing activities.
In conclusion, OICCI Secretary General observed that “Pakistan suffers from negative perception which is largely uncalled for, requiring authorities to work in partnership with serious stakeholders, like OICCI, to ensure the country gets its due share of the significant FDI coming to this region.”
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FPCCI demands withdrawal increase in duty, taxes on CNG sector
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday demanded the government of withdraw its decision of increasing duty and taxes on CNG sector.
In a statement FPCCI President Mian Nasser Hyatt Maggo said that the sales tax on LNG for CNG sector has been increased from 5 per cent to 17 per cent – while customs duty of 5 per cent has also been imposed. “Given that CNG is expensive and the survival of this business is in jeopardy. This decision should be reversed immediately,” he demanded.
He said that the gas crisis is caused by poor management, bad decision-making, and lack of vision. After Sindh, gas is being cut off across the country; which is unacceptable. This will cause huge losses to the business community and the public alike; affecting businesses and reducing production and exports.
Addressing an emergency press conference, FPCCI’s President said that the entire country was in the grip of energy crisis due to the badly-timed import of LNG and CNG sector.
It was the worst time to go for yearly repair and maintenance of the LNG terminal. As a result, it has been decided to generate electricity from furnace oil; which is an expensive option.
The government neither imports gas itself; nor allows the CNG sector to import – which is out of sound mind.
Ghiyas Abdullah Paracha – Group Leader, All Pakistan CNG Association – said that the policies of the energy sector were not in line with the ground realities. The crisis will continue until the CNG sector is allowed to import its own gas. Gas companies are destroying people’s businesses and taking away jobs. If we import our own gas, the load shedding will end and the government will generate Rs. 82 billion; but, this is not acceptable to a few bureaucrats. He further added that the CNG sector in Punjab and Sindh is using imported gas; so, it has nothing to do with the reduction in domestic gas production; nor does it have any justification to cut off gas.
Khalid Latif – Chairman, All Pakistan CNG Association – said that Rs. 450 billion have been invested in the CNG sector; but, the future is bleak. Hundreds of thousands of workers have been displaced from the CNG sector; but, they have been brought to the brink of disaster.
FPCCI demanded that the government should take steps to rehabilitate the sector by revoking the decision to impose additional taxes and ensuring the availability of environmentally friendly and cheap fuel to the people; so that, pollution and fares do not increase and millions of jobs can be saved.