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Category: Trade & Industry

This section covers news on trade and industry. Pakistan Revenue is committed to providing the latest updates on business trends.

  • EOBI disburses Rs35 billion to pensioners in current fiscal year

    EOBI disburses Rs35 billion to pensioners in current fiscal year

    KARACHI: Employees Old-Age Benefits Institution (EOBI) has disbursed Rs35 billion to pensioners during the current fiscal year.

    “The disbursement will increase to Rs46 billion during the next fiscal year,” Azhar Hameed, Chairman, EOBI, said on Monday while addressing members of Korangi Association of Trade and Industry (KATI).

    President KATI Danish Khan, Senior Vice President Faraz-ur-Rehman, Head of KATI’s Standing committee on EOBI and SESSI Zahid Saeed, Zubair Chaya, Johar Qandhari and others welcomed the chairman at KATI.

    The EOBI chairman said that the institution was planning to celebrate pension day to spread awareness among the employers and to honor the dedicated contributors.

    He also assured that audit should be confined to once a year and he would not allow making this a tool of harassment in the hands of officials.

    President KATI Danish Khan said that after 18th amendment there is a lot of confusion regarding the role of EOBI and ongoing litigations in the courts also cause uncertainty.

    He said that employers are ready to provide every possible facility and contribution for the welfare of the workers.

    Zahid Saeed said that there is need to give awareness to the employers regarding the role and importance of the institution.

    He also suggested establishing a special desk in industrial areas of Karachi.

    Zubair Chhaya said that due to incompetence of worker’s social welfare departments EOBI also suffers the credibility.

    While responding to issues raised by participants Azhar Hameed asked KATI to nominate a focal person to work with the institution and resolve urgent matters.

  • FPCCI deplores ignoring national chamber at China visit

    FPCCI deplores ignoring national chamber at China visit

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the ministry of commerce for ignoring the apex trade body at the recent important visit of Prime Minister Imran Khan to China.

    President FPCCI Engr. Daroo Khan Achakzai regretted that the ministry of commerce specially the Advisor to Prime Minister on Commerce for not helping the Prime Minister and wasting all his efforts due to their attitude and disconnect with the business community.

    In a statement on Tuesday, he cited an example that during the recent important visit of the Prime Minister to China, MOC arranged Pakistan business forum and B2B meetings between Pakistani and Chinese businessmen.

    “It was surprising that Pakistan Business Council (PBC) represented the business community of Pakistan at this important forum.”

    PBC is a non-elected body of few elite businessmen originally formed under the patronage of present Advisor to PM on Commerce and Industry.

    PBC Irrespective of its Professional merits or demerits, it cannot be a substitute to the democratically elected representatives of business community FPCCI, the national chamber of the country, but somehow the unjustified patronage of Advisor to PM has given it a more prominent role in shaping the trade and economic policies, whereas genuine stakeholders have been sidelined.

    This has resulted in deterioration of Business confidence as the policies are formulated more on intellectual ideas of few instead of input of ground realities based on input from the real stakeholders. Such policies would not help the Government to come out of its present crisis.

    The FPCCI president praised the recent achievements of the Prime Minister during his visit to China. The Signing of FTA-II and ML-1 projects will go a long way in bringing up Country’s economy.

    He said that the vision and hard work of PM is unprecedented in the history of the Country. His five points agenda of at OBR forum of mitigating climate change, establishing a BRI tourism corridor for promoting people-to-people contacts inter-cultural understanding, anti-corruption cooperation, poverty alleviation fund, and further liberalizing trade and investment flows by encouraging private sector and businesses is revolutionary ideas and were appreciated at all levels.

    Unfortunately he has inherited an economy, which is very difficult to manage, and he faces gigantic task to stabilize this. The business community has always resolved support for the Prime Minister in his efforts.

    It is worth mentioning that while Country’s own Ministry of Commerce ignored FPCCI, the apex trade body of the Country while the Councils of Promotion of International Trade (CCPIT) of Chongqing, Tianjin and Xin Jiang Provinces met the President of FPCCI and immediately signed MoUs with him during the Belt and Road Forum at Beijing thus recognizing the importance of the elected representative of the business community.

    President FPCCI has urged the Prime Minister that his hard work and vision will only yield fruitful results, when his team will take the entire business community into confidence instead of patronizing few.

    He requested the prime minister to direct all concerned trade, investment, economic Ministries and departments to engage the elected bodies of Business community specially FPCCI for their input on all economic issues and give weightage to their nominations for advisory and consultative bodies, trade delegations and important forums abroad.

  • Pakistan unlikely to get benefit from 2nd phase of China FTA: SITE Association

    Pakistan unlikely to get benefit from 2nd phase of China FTA: SITE Association

    KARACHI: Pakistan may not get benefit from the 2nd phase of Pak China FTA as Chinese imports of $2 trillion are either of raw materials or high-tech equipment.

    “Pakistan does not have the industrial and technical base to produce high-tech equipment such as computers, ICs, telecommunication equipment & automobiles,” Saud Mahmood, Chairman SITE Taxation and Trade Policy, said in a statement on Friday.

    Moreover, he said, exports of minerals, live stock and agricultural products is not accelerated by FTAs as importing countries do not apply duties on raw materials.

    China is known as the supplier of the world with huge current account surpluses with most trading partners.

    After the first phase of PAK China FTA, we had to impose up to 30 percent regulatory duty to save the local industry from closing down.

    Even after the imposition of 30 percent regulatory duty, trade deficit from China is over $15 billion with Pakistan exporting under USD 3bn worth of goods to China, mostly minerals, agricultural products, and livestock.

    In view of the above ground realities, it would be interesting to see in which areas Ministry of Commerce has envisioned growth of Pakistan’s exports to China.

    If exports to China are expected to grow to $6 billion after the 2nd phase of FTA, an item wise break up in which exports are expected to jump should be shared with the industry for their comments.

    In the absence of such a detailed effort duly endorsed by leading chambers, it seems that we are all set to shoot ourselves in the foot again.

  • Yarn merchants urge FBR to stop harassment over turnover tax

    Yarn merchants urge FBR to stop harassment over turnover tax

    KARACHI: The Pakistan Yarn Merchants Association (PYMA) has urgently called on the Federal Board of Revenue (FBR) to issue a clear clarification regarding the applicable turnover income tax rate for yarn merchants, following what it describes as unjustified harassment by tax authorities.

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  • FPCCI signs three MoUs at Belt and Road Conference

    FPCCI signs three MoUs at Belt and Road Conference

    The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has taken significant steps towards strengthening international trade relations by signing three Memoranda of Understanding (MoUs) at the Belt and Road CEO Conference held in Beijing, China.

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  • FBR asked not to send notices for turnover tax

    FBR asked not to send notices for turnover tax

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged Federal Board of Revenue (FBR) to issue necessary instructions to all RTOs to refrain from sending notices for demanding the unjust annual turnover Tax to members of Pakistan Yarn Merchants Association (PYMA) till the issue is resolved as the Annual Turnover Tax, which was 0.1 percent, was inadvertently being charged at 1.0 percent.

    In a letter sent to Member (Inland Revenue-Policy) FBR, Dr. Hamid Ateeq Sarwar on Wednesday, President KCCI Junaid Esmail Makda referred to a meeting between KCCI delegation and FBR authorities held recently at FBR House in Islamabad in which this particular issue was also thoroughly discussed with Member IR-Policy and other officials who assured to resolve the same in due course but no correction has been done so far in SRO333 (1)/2011.

    While reiterating that Inland Revenue-Policy department and RTOs should not issue further notices, he said that PYMA members have been receiving notices for Annual Turnover Tax which have to be suspended till the FBR makes necessary amendment.

  • KCCI hopes new finance adviser to take steps minimizing taxpayers’ grievances

    KCCI hopes new finance adviser to take steps minimizing taxpayers’ grievances

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday felicitated Dr. Hafeez Shaikh on his appointment as adviser to prime minister on finance, revenue and economic affairs.

    The KCCI hoped that the new adviser would take practical steps in minimizing grievances of genuine taxpayers.

    Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli and President KCCI Junaid Esmail Makda, while extending heartfelt felicitations to Dr. Abdul Hafeez Sheikh on his appointment as Adviser to Prime Minister on Finance, said that keeping in view his vast experience and past performance, Dr. Hafeez Sheikh will certainly succeed in overcoming numerous crises being suffered by the country.

    In a letter sent to PM’s Adviser, Siraj Teli and Junaid Makda warmly welcomed the appointment of Dr. Hafeez Sheikh as PM’s Adviser and said that that due to his expertise and well acquaintance with trade and economic issues, the business and industrial community of Karachi was fairly optimistic that Dr. Sheikh will be able to successfully devise effective strategies in order to completely get rid of all types of crises.

    They stressed that as country was currently going through severe economic crises, therefore it was really essential that the business and industrial community should be taken on board in the policy making process.

    They hoped that the newly appointed PM’s Adviser would also take practical steps to minimize the grievances being faced by loyal taxpayers who are suffering terribly due to serious loopholes in the existing taxation mechanism.

    They stressed that the consultation strategy adopted by the PTI government with the business community of Karachi must continue and the contribution of more than 70 percent revenue to the national exchequer must always be taken into consideration.

    “The business and industrial community of Karachi stands shoulder-to-shoulder with the government during this difficult time and we will continue to support the government in the larger interest of the country,” they added.

    They also invited Dr. Hafeez Sheikh to visit the Karachi Chamber as soon as possible so that the business and industrial community could get an opportunity to share views about the Amnesty Scheme and also give valuable proposals for the forthcoming Federal Budget 2019-20, besides suggesting ways and means of how to improve the taxation system, enhance revenue generation and ensure ease of doing business which is one of the top most priority of the present government.

    Siraj Teli and Junaid Makda also paid glowing tribute to Former Finance Minister Asad Umer for always realizing the ground realities, making necessary corrections and struggling really hard to somehow minimize the burden on the poor segment of society.

  • FPCCI condemns terror attacks in Sri Lanka

    FPCCI condemns terror attacks in Sri Lanka

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday condemned brutal act of terrorism in Sri Lanka claiming around 290 lives.

    In a statement Engr. Daroo Khan Achakzai, FPCCI President strongly condemned the coward and brutal act of terrorism on luxury hotels and Churches holding Easter Services in Sri-Lanka, killing nearly 290 innocent people – including dozens of foreigners – and injuring nearly 500 people, including Pakistanis in a series of eight devastating bomb blasts on Sunday.

    The Chief of FPCCI, an apex body of the trade and industry in the country, expressed his deepest and profound condolence on behalf of the business community and the people of Pakistan in the wake of terrorist attacks in Sri-Lanka.

    He conveyed sympathies for the bereaved families on lost of their loved one in tragic incidents and prayed for the speedy recovery of the injured.

    The FPCCI President recalled, “Being a victim of protracted terrorism, Pakistan fully understands the pain of their Sri Lankan brethren and stands in complete solidarity with Sri-Lanka in their hour of grief.”

    Ackhazi hoped that the people of Sri Lanka would prevail unity and interfaith harmony amongst their ranks and files and the ugly attempts to destabilize their country would be crushed and foiled.

  • FPCCI felicitates newly appointed finance advisor

    FPCCI felicitates newly appointed finance advisor

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has felicitated Dr. Hafeez Shaikh, the newly appointed adviser to Prime Minister, for the slot of finance and revenue.

    FPCCI president Engr. Daroo Khan Achakzai in a statement on Friday extended his heartiest felicitation to Dr. Abdul Hafeez Shaikh on his appointment as Advisor to the Prime Minister on Finance for which he rightly deserved by virtue of his long and versatile experience of serving the country in various fields including Finance Ministership from 2010-2013; Minister for Privatization as well as Provincial Finance Minister of Sindh.

    He added that Dr. Abdul Hafeez Shaikh is a distinguished economist who remained affiliated with the World Bank during his career and possesses a vast experience of dealing with multilateral creditors such as IMF, World Bank, Asian Development Bank etc., and as such is well versed with Pakistan’s financial issues and economy.

    The FPCCI Chief hoped that under his ministership the country would steer out of the multi-faceted instant financial challenges being confronted by it such as balance of payment; fiscal and debt sustainability, better management of public sector entities; reforms of transparency; eliminate the menace of corruption; ease of doing business; arrest of rupee slide; reform tax administration; revive manufacturing sector; enhance access to finance etc.

    The FPCCI President was optimistic that during the tenure of Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance, the coordination between the FPCCI – an apex body of trade & industry – and Ministry of Finance would be further strengthened for the benefit of both the stakeholders viz business community and the government.

    The FPCCI Chief also congratulated other Members of the Prime Minister Cabinet on assuming charge of their new portfolios including Fawad Chaudhry, Minister for Science and Technology ; Firdaus Ashiq Awan, Special assistant to PM on Information & Broadcasting; Ghulam Sarwar Minister for Aviation; Ijaz Shah, Interior Minister; Shehryar Afridi, Minister of States and Frontier Regions; Azam Swati, Minister of Parliamentary Affairs.

  • Freezing bank account, raid only on discovery of evasion: KCCI

    Freezing bank account, raid only on discovery of evasion: KCCI

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has recommended that harsh measures of freezing bank account and raid should only be undertaken on discovery of massive tax evasion.

    A delegation of KCCI held discussions on Budget Proposals for Federal Budget 2019-2020 with Chairman Federal Board of Revenue (FBR) Jehanzaib Khan and his team at a meeting held at FBR House in Islamabad on Thursday.

    The KCCI team suggested that such harsh actions will only be taken in case of when evasion of very large amount is detected and only when concrete evidence is available rather than carrying out random raids on business entities.

    KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, comprised of Vice Chairmen BMG Haroon Farooki and Anjum Nisar, General Secretary BMG AQ Khalil, President KCCI Junaid Esmail Makda and Former Senior Vice President Muhammad Ibrahim Kasumbi while Dr. Hamid Ateeq Sarwar Member (Inland Revenue Policy), Muhammad Javed Ghani Member (Customs Policy) and Chief of Income Tax, Chief of Sales Tax and Chief of Excise Duty and others were also present at the meeting.

    During the meeting, consensus was developed on various major issues and the FBR officials, while agreeing to most of KCCI’s budget proposals, assured to implement the same in the upcoming budget.

    The FBR Officials, while responding to KCCI’s proposal, agreed to rationalize the tax structure for import of raw materials by commercial importers and manufacturers.

    They also committed to review and curtail the discretionary powers vested to the officials of Inland Revenue which are a source of harassment and extortion of business and industrial community.

    KCCI delegation highlighted all major issues including issues pertaining to the Income Tax, Sales Tax and discretionary powers along with concessions & exemptions in various sectors of the economy which have resulted in the distortion of the tax regime.

    In his remarks, Chairman BMG & Former President KCCI Siraj Kassam Teli pointed out that the current tax regime, relevant laws and discretionary powers were being used to harass the business and industrial community and were hindering economic and industrial growth.

    “These laws have to be reformed in order to create a conducive environment for growth and liberalization of trade and also for the revival of economic activities”, he added.

    On the occasion, a comprehensive presentation was also given to the FBR team in which major taxation issues were highlighted and remedial steps were also given for ease of doing business and enhanced revenue generation.