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Category: Trade & Industry

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  • New concessional list should be considered under Pakistan, Malaysia FTA

    New concessional list should be considered under Pakistan, Malaysia FTA

    KARACHI: Consul General of Malaysia Khairul Nazran Abd Rahman has said that Malaysia and Pakistan need to agree upon on a new concessional list under the existing Free Trade Agreement (FTA).

    Large number of requests have been received from different segments for addition of numerous items in the FTA list in which Pakistani Basmati rice was also not included hence it was being imported by Malaysia from India and Vietnam.

    Speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI), Malaysian CG said that as Pakistani Basmati rice was not in the FTA list, it was not competitive when compared with other countries exporting this important commodity to Malaysia.

    “Meanwhile, the business communities of both countries must hold regular interactions in order to fully utilize and benefit from the existing FTA which would certainly improve the existing trade ties between the two brotherly countries”, he added.

    General Secretary Businessmen Group & Former President KCCI AQ Khalil, President KCCI Agha Shahab Ahmed Khan, Senior Vice President Arshad Islam, Vice President Shahid Ismail, KCCI Managing Committee members and others also attended the meeting.

    Malaysian Consul General pointed out that the volume of trade improved marginally by 2.5 percent to US$1.47 billion in 2018 as compared to US$1.34 billion in 2017. “Malaysia’s Palm oil is a major product, which alone represents 47 percent of total trade while other traditional products including Pakistani textiles are also being exported to Malaysia. We need to do more and must take advantage of the FTA which was enforced in 2008 and must also focus on non-traditional items as well”, he added.

    He said that Malaysia and Pakistan must not remain confined to improving the political and economic ties only but other areas of strategic importance particularly defense, education and tourism must also get special attention from both sides. “We are now focusing on promoting and cooperating in the tourism sector as our cooperation has remained mostly on trade and investment. The tourism sector, having immense potential, has to be given attention which would prove beneficial for the two nations”, he added.

    Congratulating the newly elected Office Bearers, the Consul General said that KCCI was not a stranger for him as it was his second visit to this Chamber after assuming charge as Consul General in Karachi last year in the month of June 2018. My intention of today’s visit to KCCI is to explore trade and investment opportunities and identify the potential sectors, particularly the non-traditional goods.

    Referring to Malaysian Prime Minister Mahathir Bin Mohamad’s visit to Pakistan and PM Imran Khan’s visit to Malaysia, he said, “Both countries have new governments in place and a lot of discussions have taken place and now we need to see the results. Hence, it is right time for the business communities to focus more on improving trade and investment”, he added.

    Speaking on the occasion, President KCCI Agha Shahab Ahmed Khan said, “Today we are living in the 21st century in which nobody is neither dependent nor independent but everyone of us are inter-dependent. Hence, we all must live in harmony and focus on expanding ties particularly in those sectors where there was a comparative advantage.”

    Commenting on the scenic sites in the northern areas of Pakistan and Malaysia, he said that Pakistanis were keen to visit Malaysia to see its natural beauty but many of them were unaware of the tourism opportunities in Malaysia and same was the case with Malaysians who don’t know much about the mesmerizing landscapes in northern areas of Pakistan. In this regard, both sides will have to make efforts and devise effective strategies to promote the tourism sector.

    To improve the existing trade ties, he opined that Pakistan can exports many of its traditional and non-traditional goods to Malaysia particularly rice, furniture, electric cables, cosmetics, jewelry, food stuff and many other products in which the country has got comparative advantage.

    He further advised the Malaysian CG to arrange visit of a Malaysian delegation to Karachi and after identifying the potential sectors, the Karachi Chamber will also look into the possibility of sending relevant delegations to Malaysia so that the trade and investment ties between the two countries could prosper.

    Agha Shahab also stressed that the existing FTA needs to be revisited and updated with a list of products having good potential for penetrating into the Malaysian market whereas both countries must also look into the possibility of undertaking joint ventures in the Halal food sector.

    He also invited the Malaysian business community to participate in 17th My Karachi – Oasis of Harmony Exhibition scheduled to be organized at the Expo Center from April 17th to April 19th, 2020 which would surely provide a perfect networking platform and help them in identifying the potential products which can be supplied in the Pakistani markets.

  • Overseas investors spend Rs5.5bn for CSR activities

    Overseas investors spend Rs5.5bn for CSR activities

    KARACHI: The Overseas Investors Chamber of Commerce and Industry (OICCI) member companies spent Rs 5.5 billion during 2018-2019 and directly benefited 5.8 million people across Pakistan as part of its Corporate Social Responsibility (CSR) activities.

    As per 2018-19 Corporate Social Responsibility (CSR) Report, which highlights the key social and community related activities of foreign investors operating in the country, member companies continued their efforts for community welfare and collective good the employees.

    There has been growing realization among the businesses that fulfilling social responsibility means doing good business.

    Hence, there has been a widespread engagement of the leading corporates in adopting various forms of social activities depending upon the need of the society in their area of operations.

    The landscape of CSR initiatives and activities is improving rapidly as the corporate sector in the country has been widely adopting the CSR and Sustainability practices and making them permanent feature of the businesses.

    The social areas such as education, human capital development, healthcare, nutrition, environment and infrastructure development are the main focus of the businesses to reach out to the underprivileged sections of the population.

    About 200 leading foreign investors as part of OICCI platform are among other members who besides doing good business, are investing over Rs300 billion annually in expanding their footprint, contributing a lion’s share of the tax revenue of the country, are also rated as the trendsetter and among the prominent social developers of Pakistan through their CSR and sustainable initiatives.

    As a result of untiring CSR activities of 82 OICCI members only during 2018-2019, over Rs5.5 billion were invested on CSR and reached out to around 58 million direct beneficiaries throughout Pakistan.

    OICCI members and their employees spent around 1.2 million man-hours and partnered with 160 social and development sector organizations in fulfilling their unique CSR program.

    The geographic distribution of the CSR activities has been 32 percent in Sindh, 27 percent in Punjab, 15 percent in Khyber Pakhtunkhwa, 10 percent in Balochistan, 8 percent in Azad Kashmir, and 4 percent each in FATA and Gilgit-Baltistan.

    In terms of specific social sector, Human Capital Development and Health and Nutrition remained key focus areas. Human Capital Development initiatives attracted the attention of 90 percent of the members helping to meet the growing need for improving the human development in the country.

    Many of the members have funded new school facilities and made contributions towards vocational training programs for skills development of the youth.

    Moreover, 86 percent of the members actively supported health and nutrition related initiatives through donations to reputable hospitals, medical care camps and health awareness campaigns. Infrastructure Development was also one of the growing areas of interest for 65 percent of the members who assisted communities in the vicinity of their respective major operating facilities.

  • APTMA praises policies to make textile industry viable after 10 red years

    APTMA praises policies to make textile industry viable after 10 red years

    KARACHI: As a result of the progressive policies and personal interest of the Prime Minister especially by providing regionally competitive energy tariffs the textile industry has become viable after remaining in the red for 10 long years, All Pakistan Textile Mills Association (APTMA) said in a press release on Wednesday.

    The textile industry has achieved a record increase of 26 percent growth in quantitative terms although this did not directly reflect in the dollar amounts due to a substantial worldwide decrease in textile prices.

    However if this 26 percent increase in quantity had not been achieved the exports would have been less than $ 8.5 billion, the international prices have now recovered. As per records, profits of the companies were over 5 percent.

    The companies have posted a turnover of $ 16 billion out of which $ 13.3 billion was exported and $ 2.8 billion were sold in the domestic market.

    Industry has contributed to the exchequer through income tax of Rs. 40 billion as well as various other indirect taxes and levies of over Rs. 35 billion. The importance of the industry can be assessed from the fact that it also employs over 10 million workers with many more dependents.

    As a result of the confidence reposed by the Prime Minister in the industry and the appointment of a dedicated Task Force to not only formulate but ensure implementation of a progressive textile policy, Industry is all poised to take off and double exports in the next four years. Industry as a result of the profits posted has strong balance sheets and an equity fund of US $ 1 billion earned directly from the international market. These funds can be leveraged to invest at least $ 4 billion in the next year alone.

    “We profusely thank the Prime Minister for having taken personal ownership and stewardship of the industry and chaired over a dozen meetings with the industry during this last year to resolve their issues,” the association said.

  • Reforms showing improvement in economy: SBP governor

    Reforms showing improvement in economy: SBP governor

    KARACHI: The reforms to address the macroeconomic challenges faced by the economy are now beginning to bear fruit and improvement in the external sector has become visible, said Dr. Reza Baqir, Governor, State Bank of Pakistan (SBP).

    “Restoring stability will promote investment in the country and thus economic growth,” the SBP governor said during an interactive session with leading foreign investors at the Overseas Investors Chamber of Commerce and Industry (OICCI). Governor was accompanied by the senior leadership of the SBP.

    The SBP governor noted that the bold measures taken in recent past were painful but necessary.

    He elaborated that the average monthly current account deficit, which has been a prime concern for the economy, has halved, export volumes have been growing, non-borrowed foreign exchange reserves have stopped falling and in fact begun to grow, and pressures on inflation are expected to recede from the second half of the current fiscal year.

    President OICCI, Shazia Syed, Vice President OICCI, Shazad G. Dada and Secretary General OICCI, M. Abdul Aleem, highlighted the significant economic contribution of foreign investors at OICCI, who are among the largest economic stakeholders and have invested over $13 billion in the past seven years and continue to have a positive view of the opportunities for investment despite the ongoing challenging economic environment in the country.

    OICCI shared with Dr. Reza Baqir the key highlights of its annual survey on remittances and complimented the Governor that despite extreme pressure on the FX reserves in the past twelve months, the SBP did not delay the remittance of profit, which was appreciated by the foreign investors.

    However, concerns on some other areas were raised and OICCI sought Governor’s support in facilitating different matters in the light of its policies towards improving ease of doing business in Pakistan.

    OICCI members presented a comprehensive list of recommendations to facilitate doing business in Pakistan including proposal for doing away with additional approvals for remittance which are as per registered contract, and proposed that an online portal be established allowing banks to upload the request and supporting documents.

    Dr. Reza Baqir appreciated the contribution of OICCI members to the national exchequer and announced various measures to further streamline the processes for improving ease of doing business.

    “SBP is moving towards digitalization and proactive engagement that will address the major issues systematically,” informed the Governor.

    He promised to consider various OICCI recommendations and agreed on the need for continuous dialogue with the OICCI members inviting the Managing Committee to meet the SBP’s leadership at regular intervals for timely resolution of the issues.

  • Karachi Chamber expresses concerns over pathetic performance of new refund issuance module

    Karachi Chamber expresses concerns over pathetic performance of new refund issuance module

    KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Agha Shahab Ahmed Khan has expressing deep concerns over the poor and pathetic performance of the recently launched Fully Automated Sales Tax e-Refunds (FASTER) module.

    In a statement on Wednesday he stated that FBR claimed of processing payments of Sales Tax Refunds for the tax period July 2019 within 72 hours on September 2, 2019 through FASTER module but the ground reality was totally contrary to this claim as many exporters have not received anything and are running from pillar to post at various departments of FBR to get their claims processed and released.

    Agha Shahab pointed out that many exporters from different parts of the country 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 KCCI 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.

    While referring to Prime Minster’s recent meeting held to discuss economic issues and the problems being faced by business community, Agha Shahab requested PM Imran Khan, Advisor to Prime Minister Hafeez Shaikh, Minister of State for Revenue Hammad Azhar and Chairman Federal Board of Revenue Shabbar Zaidi to take notice of the hardships being faced by the perturbed exporters and issue strict directives for improving the performance of FASTER module in order to save the export oriented industries from further crises which, if not timely addressed, would certainly have a deep negative impact on Pakistan’s economy particularly in a situation when all out efforts were being made by the present government to somehow reduce the current account deficit.

    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 not only by Karachi Chamber but also by all other stakeholders from across the country.

  • Karachi Chamber demands complete ban on car imports

    Karachi Chamber demands complete ban on car imports

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has demanded complete ban on import of luxury cars and those goods, which are already available in Pakistan.

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  • KCAA’s new office bearers, MC members assume charge

    KCAA’s new office bearers, MC members assume charge

    KARACHI: The newly elected unopposed office bearers and members of Managing Committee (MC) of Karachi Customs Agents Association (KCAA) for the term 2019-2020 have assumed the charge of the association in its 12th Annual General Body Meeting held on Monday, September 30, 2019.

    The list of the newly inducted Office Bearers and Members Managing Committee is as follows:

    Office Bearers:

    Yahya Mohammad, President

    Mahmood ul Hasan Awan, Senior Vice President

    Rashid Khurshid, Vice President

    Mirza Ather Baig, Vice President

    Akhter Ali Sherwani Vice President

    Tariq Rasheed Khan, Vice President

    Sheikh Waqas Anjum, Vice President

    Gulzar Shah, Vice President

    Mohammad Aamir, General Secretary

    Zahid Bashir Choudhry, Joint Secretary

    Khawaja Zeeshan lqbal, Information Secretary

    Rana Zahid Farooq, Finance Secretary

    Members managing committee:

    Amir Butt

    Faraz Ahmed Tanoli

    Fida Hussain Tanoli

    Junaid Mqhmood

    Mirza Abdul Hannan Baig

    Moez Tahir Sheikh

    Mohammad Asif

    Mohammad Basharat

    Muhammad Bashir

    Mohammad Naeem Malik

    Mohammad Naveed Bashir

    Mohammad Sohail

    Mohammad Yousuf Akhund

    Rizwan Ali

    Sajid Hussain

    Sohail Siddiq

    Taha Hussain Khan

    Tariq Mehmood

  • FPCCI suggests one month extension in income tax return filing

    FPCCI suggests one month extension in income tax return filing

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the government to extend the last date for filing income tax return up to October 31, 2019.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Advisor to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh, and Chairman of the Federal Board of Revenue (FBR) Syed Shabbar Zaidi to extend the deadline for filing of Income Tax Returns (ITR) from 30th September to 31st October, 2019.

    The FPCCI Chief argued that a large number of business community members could not file their ITR mainly due to a variety of reasons such as uncertainty prevailing in the country because of changes in the taxation provisions of the Income Tax Ordinance 2011 ; slowdown of normal business activities; Election of FPCCI member trade bodies; interruption in on-line system of e-filing of ITR ; protracted rain etc.

    “This will help the tax payers in discharging their tax liability well in time without penalty on the one hand and increase in government exchequer on the other hand”, he added.

  • Container scanning charges abolished: Ali Zaidi

    Container scanning charges abolished: Ali Zaidi

    KARACHI: Syed Ali Haider Zaidi, Minister for Maritime Affairs, on Saturday said the container scanning charges has been abolished in order to reduce the cost of the industry.

    He was addressing the members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

    Zaidi said that the terminal operators had been scanning charging at $5 on each container handling. “The terminal operators were charging this amount from all the containers irrespective of scanning or no scanning,” he added.

    The minister said the terminal had been stopped from charging this on those containers which were not scanned.

    The minister also said that he had opposed to collect fuel freight charges on supplies to Karachi city. He said that all the petroleum products imported at Karachi ports and then supplied to other parts of the country.

    Ali Zaidi said that he had openly opposed to this levy in order to facilitate people and the industry.

    He said that land transfer of Port Qasim and KPT had been stopped till the audit of already allotted lands.

    He disclosed that there was huge corruption in land allotments of port lands.

  • KCCI’s president, other office bearers elected unopposed

    KCCI’s president, other office bearers elected unopposed

    KARACHI: The Karachi Chamber of Commerce & Industry (KCCI) notified on Tuesday that all three candidates for the post of Office bearers from Businessmen Group (BMG) namely Agha Shahab Khan, Arshad Islam and Shahid Ismail have been elected unopposed as President, Senior Vice President and Vice President respectively for the year 2019-2020.

    Expressing gratitude to Almighty Allah, Chairman BMG and Former President KCCI Siraj Kassam thanked the Business & Industrial community of Karachi for reposing confidence and trust on BMG’s policies.

    Siraj Teli said, “By the grace of Almighty Allah, BMG has been winning all the elections without losing a single seat for the last 22 years and after terribly defeating the opponents in last year’s election with double the votes, BMGIANs have been blessed with yet another unopposed victory.”

    He said that 22 years of success is an acknowledgement of the public service by the Businessmen Group which also testifies that overwhelming majority of Business & Industrial Community endorses the policies of BMG because they understand and believe that BMGians are serving them selflessly for their betterment.

    BMG Chairman hoped that the newly elected BMGians will make all out efforts in espousing the cause of Business & Industrial Community and to further enhance the status of public service which is the motto of BMG.

    As the Office Bearers have been elected unopposed, hence the Managing Committee meeting to elect the Office Bearers will not be held on Thursday, September 26, 2019.

    The final results of the elections of members of Executive Committee and Office Bearers shall be officially announced at Annual General Meeting on Saturday, September 28, 2019 in which the outgoing office bearers will formally hand over the charge to incoming Office Bearers for the year 2019-20.