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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.

  • KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KCCI urges shopkeepers to strictly ensure coronavirus SOPs

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged shopkeepers to ensure strict compliance of SOPs and business timings to prevent spread of coronavirus.

    A statement issued on Monday said that KCCI president M. Shariq Vohra, after listening to the reservations raised by a delegation from All City Tajir Ittehad (ACTI), assured that KCCI would try its level best to make sure that no injustice is done to any shopkeeper even if the government opts another lockdown or smart lockdown in any market of Karachi to contain further spread of COVID-19 pandemic.

    “However, the shopkeepers must strictly ensure compliance of SOPs and also the business timings, besides devising effective strategies for social distancing as coronavirus, which is a matter of life and death, has to be taken seriously,” he added.

    Exchanging views with ACTI delegation which was led by its President Hammad Poonawala, President KCCI said that KCCI was in constant touch with the government and was closely eyeing numerous strategies being adopted to control coronavirus pandemic.

    Hence, any issue being faced by small traders/ shopkeepers must be brought to KCCI’s notice so that the same could be immediately taken up with relevant departments and amicably resolved. “KCCI would always advocate those strategies which are devised to not only save precious lives but also ensure minimum losses to business community during the ongoing most difficult and extraordinary situation.”

    Senior Vice President KCCI M. Saqib Goodluck, Vice President KCCI Shamsul Islam Khan, Chairman KCCI’s Special Committee for Small Traders Majeed Memon, Chief Police Chamber Liaison Committee Hafeez Aziz, Managing Committee Members, ACTI’s District-wise Presidents and representatives from various commercial markets of Karachi also attended the meeting.

    Keeping in view the developing situation and the fears of imposition of another lockdown, President KCCI advised representatives of numerous associations from commercial markets of Karachi to stay calm, improve liaison with KCCI and unite under the Chamber’s platform so that one voice could be raised for getting numerous issues resolved and the likely grievances, if not completely eradicated, could be minimized.

    He said, “It is high time that small traders and shopkeepers must change their mindset and start opening their businesses early morning which would certainly minimize the grievances being faced by them at the end of permitted business timings.

    “Shops and markets all over the world open early and close down in the evening which must also be adopted here as our religion also teaches us the same.”

    Responding to numerous complaints in which shopkeepers complained about harassment by police and customs officials, he advised that any complaint pertaining to harassment by customs officials must immediately be brought to KCCI’s notice so that the same could be taken up at the higher level.

    “The higher authorities are usually unaware of such wrongdoings being done by the officers at lower level as it has been observed that all such complaints are instantly resolved when brought to the notice of higher officials.”

    “The Karachi Chamber would invite IG Sindh soon so that the harassment-related problems being suffered by small traders could be resolved”, he assured.

    President KCCI advised small traders to become KCCI members which was the most vibrant platform for resolving all types of issues including the law & order, customs and taxation related issues as KCCI’s Subcommittees have been maintaining close liaison with all the departments which helps in swift resolution of relevant issues.

    Speaking on the occasion, President ACTI Hammad Poonawala appreciated KCCI for always promptly taking up the issues of small traders and shopkeepers under the supervision of Chairman BMG Siraj Kassam Teli.

    He pointed out that shopkeepers were nowadays fearing another lockdown or smart lockdown which, if imposed, would prove completely destructive for small businesses. “Hence, KCCI must play the lead role in convincing the government to refrain from imposing another lockdown and we will ensure strict compliance of all SOPs. In this regard, a committee should be formed by KCCI to look into the problems being suffered by small traders who have been facing a lot of hardships every day because of harassment and demand for Bhatta.”

    ACTI delegation also expressed deep concern over dilapidated condition of roads in Shershah market and other important markets of Karachi which were terribly affecting trade and commercial activities. Although assurances have been given from time to time but no development work has been initiated so far and the roads continues to worsen day by day. 

    They further complained that in order to demand bribes, policemen, traffic police officers and customs officials intercept their legal consignments with an excuse to check presence of any illicit product. Even if all the legal documents are presented and the consignment is not carrying any banned item, they do not release it until the demand for bribe is fulfilled. To deal with this serious issue, KCCI was requested to invite IG so that the business community could record their protest and formally request strictest action against such corrupt practices.

  • FPCCI welcomes electricity tariff reduction

    FPCCI welcomes electricity tariff reduction

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the decision of Prime Minister Imran Khan to provide relief industries by reducing electricity tariff.

    Mian Anjum Nisar, President FPCCI, at a press conference on Tuesday lauded the bold initiative to reduce electricity tariffs for SMEs and Industries.

    He said for a long, FPCCI was striving for a balanced electricity tariff for industries to compete with the regional trade.

    The struggle is now fulfilled and the government realized the issue. “The reduced electricity cost will also positively impact the local markets and will create a tendency to overcome inflation and lead to the spur of economic growth,” he added.

    Mian Anjum Nisar President FPCCI on behalf of the business, trade, and industries extend heartily congratulation for such a business friendly decision for the industry.

    Prime Minister Imran Khan during a post-cabinet meeting media briefing announced reduced energy costs for industrial sector. The prime minister said that from November 1, the additional electricity used by SMEs up to June 30, 2021, will be sold at 50 percent lower the cost.

    The prime minister also said that even the large industries, will pay reduced electricity costs at all times, without any concept of off-peak hours. The prime minister admitted that the industry was severely impacted during the lockdown period and it was now essential that industrial sector should be supported to perform well.

    Mian Anjum Nisar also addressed the business, trade, and industry sectors to avail full benefits of this facility and play their part to increase production and volume of export.

    Present Government has already decreased the policy interest rates and established a network of economic zones as Karachi Export Processing Zone, Risalpur Export Processing Zone, Sialkot Export Processing Zone, Gujranwala Export Processing Zone, Khairpur Special Economic Zone, Rashakai Economic Zone, Gadoon Economic Zone, Hathar Economic Zone, Quaid e Azam Business Park. And special economic zones SEZ National Science & Technology Park, Islamabad, JW-SEZ China-Pakistan SEZ Raiwind in Punjab, and Dhabeji SEZ in Sindh.

    This is the high time to put all energy and efforts into the enhancement of the socio-economic development of the country. Electricity relief packages will ultimately provide support in decreasing expenses and industries will be able to compete with their regional contemporaries.

  • FPCCI demands reduction in levy, taxes on petroleum products

    FPCCI demands reduction in levy, taxes on petroleum products

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday demanded the government of reducing levy and taxes on petroleum products to support the trade and industry.

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  • OICCI expresses dismay over FBR action against mobile operator

    OICCI expresses dismay over FBR action against mobile operator

    KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) on Thursday expressed its shock and dismay over action taken by the tax authorities against Pakistan’s leading mobile operator.

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  • FPCCI urges Ogra to revoke increase in gas price

    FPCCI urges Ogra to revoke increase in gas price

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged Oil and Gas Regulatory Authority (OGRA) to revoke increase in gas tariff as the decision has serious repercussions on industrial sector.

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  • CNIC condition reduces transactions and revenue: FBR

    CNIC condition reduces transactions and revenue: FBR

    KARACHI: Federal Board of Revenue (FBR) has admitted that the condition of Computerized National Identity Card (CNIC) reduced number transactions as well as shortfall in revenue.

    “This [CNIC] condition has further reduced transaction and our revenue,” Dr, Muhammad Ashfaq Ahmed, Member, Inland Revenue, Federal Board of Revenue (FBR) quoted as saying in a statement issued by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) issued on Tuesday.

    The statement further quoted the Member that the FBR so far has resolved CNIC issues with the retailers and conditions will remain applicable at some stages.

    While responding to the issues raised by President FPCCI, the Member said that taxation is a by-product of business which is missing in our strategy, refunds are considered as oxygen for trade and industry while in practice to show revenue we ignored to payback refunds.

    The FBR is now following open door policy to facilitate industry and transparency is first in our strategy.

    He further said that FBR is changing its approach to deal with commercial exporters. He further agreed to extend the days of filing form H from 120 to 180 days.

    However, with the automation of FBR the trade and industry have to gear-up and be compatible with the latest technology.

    Earlier, FPCCI President Mian Anjum Nisar appreciated the efforts of Federal Board of Revenue on achieving revenue targets despite difficult circumstances under COVID-19 pandemic.

    While welcoming the Member Inland Revenue (Operation) Dr. Muhammad Ashfaq Ahmed, the President FPCCI said that the release of refunds has slightly improved but industry paid taxes and salaries during the period when labour was idle and industries were stalled.

    He mentioned that irrespective of gain or loss businesses have to pay 1.5 percent tax despite the issue has been discussed with Advisor to PM and Chairperson FBR but matter still not resolved.

    It was also informed that FASTER will release refunds within 72 hours but practically refunds are being released within 72 hours.

    Further President FPCCI strongly suggested extending the filing of Form “H” period from 120 days to 180 days, and demanded a focal person to deal with affairs relevant to FASTER.

    He also raised a question on shifting of final tax regime to minimum tax and proposed to reversed if there is no conditionality and payback refunds or ask for amount if due and vice versa, he also proposed to NTC deal issue of raw material that were previously falls under 12th schedule and demanded restoration of SRO 1125.

    Mian Anjum Nisar President FPCCI also raised the issue of Audit at different tiers and proposed that stages/tiers level of audit should be minimized.

    CNIC still has not resolved despite available agreement between businesses and government. President FPCCI also raised issues of different sectors such inclusion of Edible Offal in the definition of Agriculture, inability of FATER system for processing of Multi-tax period carry-forward based sales tax refunds. Uniform rate of tax on Iron and Steel flat products and issue of Audit being faced by trade and industry.

    Meeting was attended by representative of various chambers and association, Kurram Ijaz, Vice President, Zakaria Usma, Shaukat Ahmed, Ghani Usman, Saqib Fayyas, Shabir Mensha, Khursheed, member FPCCI Advisory Committee, Khuram Saeed, former Vice President FPCCI, EC and General Body members.

  • Karachi Chamber rejects power tariff hike; demands immediate withdrawal

    Karachi Chamber rejects power tariff hike; demands immediate withdrawal

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has strongly rejected the power tariff hike by K-Electric and demanded the government of immediate withdrawal the relevant notification.

    In a statement issued on Tuesday, KCCI President Shariq Vohra said that the anti-business move would give a serious blow to the trade & industry which was still struggling really hard to recover from the disaster caused by the lockdown for six months imposed to contain Covid-19 pandemic.

    Power Division through a notification allowed K-Electric (KE) to increase rates of electricity ranging from Rs.1.09 to Rs.2.89 per unit with effect from September 1, 2020, stated that this anti-business

    While rejecting outright the federal government’s decision to increase KE’s tariff, Shariq Vohra said Karachiites are already suffering badly due to unbridled inflation hence the hike in KE’s electricity bills was unacceptable and must be withdrawn immediately.

    “Although the lawmakers are assuring that Prime Minister Imran Khan and his government were striving to control inflation by making earnest efforts but it is really unfortunate that they have given go ahead to KE for raising its tariff which would not only intensify the hardships for business community due to high cost of doing business but would also terribly affect the poor masses who are already overburden due to inflation while KE’s tariff hike would further worsen the situation”, he added.

    “Indeed it is a huge disappointment that the Federal Government, instead of providing relief to the already burdened citizens of Karachi during the ongoing difficult times, continues to take anti-business and anti-Karachi actions. It is well known fact that the economic hub of Pakistan is passing through worst possible crisis and suffering badly due to crumbling infrastructure, electricity load shedding, gas and water shortages etc. For God’s sake, please have mercy on poor citizens and the anxious business & industrial community of Karachi which is battling for survival”, he stressed.

    Shariq Vohra pointed out that on one hand, the government has been pushing the business & industrial community to enhance their productivity and exports so that more wealth and employment opportunities could be generated in order to improve the ailing economy but how is it going to be possible when on the other hand, they give go ahead to electricity tariff hike which by all means is an anti-business and anti-people move.

    The cost of utilities in Pakistan are much higher as compared to regional countries, making our products uncompetitive in the international markets.

    “The economy and businesses would only flourish when the cost of doing business is brought down by substantially reducing the electricity, gas and water tariffs while all other exorbitant taxes and duties must also be reduced and the government will have to particularly make all-out efforts to rebuilt Karachi’s dilapidated infrastructure which has been the top most reason behind the poor industrial performance of all the industries situated in seven industrial zones of Karachi.”

    “The decision makers will have to understand that if the cost of input rises, it would lead to poor performance and reduced output of the industry, resulting in lower revenue collection, shrinking employment opportunities and making the production uncompetitive in the domestic as well as international markets”, he added.

    He mentioned that the Karachi Chamber has been strongly opposing this particular increase in K-Electric Tariff and urged the authorities through media statements issued on July 10, 2020 and September 3, 2020 to refrain from raising KE’s tariff. Although the increase was postponed at that time but it has once again been imposed in an odd situation when the businesses are desperately questing hard for survival. 

    He hoped that keeping in view all the above mentioned facts, the government would review KE’s electricity hike notification and immediately withdraw the same which would certainly be highly appreciated not only by the business & industrial community but also by people belonging to all walks of life.

  • Karachi Chamber resents FBR’s decision to install surveillance cameras

    Karachi Chamber resents FBR’s decision to install surveillance cameras

    The Karachi Chamber of Commerce and Industry (KCCI) has expressed strong discontent over the recent decision by Federal Board of Revenue (FBR) to monitor production activities through cameras directly connected to the main tax database.

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  • FPCCI demands extending refinance scheme for three months to support employment

    FPCCI demands extending refinance scheme for three months to support employment

    KARACHI: The business community has demanded the State Bank of Pakistan (SBP) of extending refinance scheme, which was introduced to prevent layoff owing to coronavirus outbreak, for further three months.

    The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) in a statement on Tuesday urged the central bank to consider extension in refinance scheme to support employees and prevent layoff of workers due outbreak of coronavirus, by December 31, 2020.

    Mian Anjum Nisar, President FPCCI while appreciating the initiative of SBP for introducing Refinance Scheme, which had helped many industrial and service oriented sectors to retain employees during Corona pandemic, stated that since the companies that availed this credit facility through banks have not been recovered from devastating economic impact of covid-19, it would be advisable if Ministry of Finance keep shouldering with SBP and extend this Scheme till end of the year.

    “In many of the countries, the second wave of Corona Virus has already started, Pakistan not being the case of exception, should be prepared to take proactive precautionary in view of increase in corona patients from 4500 in August to more than 1000 in September.

    “Therefore, discontinuation of this facility on September 30, 2020, would not serve the purposes,” added President FPCCI.

    Nisar further added that before discontinuing credit facility on concessional markup rate, Ministry of Finance and SBP need to review the prevailing economic situation closely as such the small and medium sized businesses have not been able to regain pre-corona economic stability. Further, processing of documentation and furnishing of employees’ data to avail credit facility was also a time consuming activity.

    Therefore, withdrawal of this facility at this stage would neither be in the interest of private sector nor in the interest of the Government that aimed at controlling unemployment situation in the country.

    Under the SBP’s Refinance Scheme to Support Employment and Prevent Layoff of Workers due to the impact of COVID-19, businesses that commit to not lay off workers in the next three months can avail credit through banks for the three months of wages and salaries expenses at a concessional markup rate.

  • CCP raids cement manufacturers association for possible cartelization

    CCP raids cement manufacturers association for possible cartelization

    ISLAMABAD: The Competition Commission of Pakistan (CCP) on Thursday raided the central office of All Pakistan Cement Manufacturers Association (APCMA) and seized suspicious record.

    In a statement the CCP said that as part of an enquiry launched in May 2020 to investigate the possible anti-competitive activities by the cement manufacturers, carried out a search and inspection of the APCMA in Lahore on Thursday.

    It said that two different teams entered and searched the APCMA main office and a member of APCMA. “Since a senior employee of one of major cement company is also the office bearer of the APCMA’s Executive Committee, representing the north region, therefore, the commission also conducted search and inspection of the premises of member concern with the objective to gather evidence of any collusive arrangement for the purposes of the Act,” it added.

    The CCP said that the enquiry was started based on the information gathered through various media reports, and concerns and complaints expressed regarding a concurrent increase in cement prices, particularly during the month of April 2020.

    The reports indicating that an increase of Rs45 – Rs55 per cement bag was apparently decided in a meeting of the cement manufacturers held under the umbrella of APCMA. Some of the media reports also quoted cement dealers saying that the leading cement companies in the north region had collectively decided to increase the cement prices by Rs55 per bag.

    From the analysis done by the CCP’s enquiry officers to see the cement companies’ profitability trend, it transpired that due to the lower demand of cement in the first quarter of 2020, the companies had to undergo financial losses at variance, however, the increase in price was starkly parallel, raising concerns of collective decision making and price fixing by the cement manufacturers.

    “Some of the players of the construction industry also hinted upon the cement cartel in the North Region becoming active following price increase trend in northern region.”

    The official data available with the CCP indicated the cement price increase of 4 percent in Islamabad, 10 percent in Lahore, and 6 percent in Peshawar from the second week of April 2020.

    From analysis of the information obtained from the news reports, price trends and facts gathered pertaining the same, it appears that objective basis, if any, needed to be assessed and / or the correlation between increase in the price of cement and grounds presented by the representatives of cement industry.

    Sudden rise in price by the cement manufacturers at the time when there is low demand compared to the installed capacity of the manufacturers at a time when there is low demand compared to the installed capacity of manufacturers and considering the input fuel cost (coal and oil), transportation and interest rate have declined raises suspicion of a collective rise in price by cement companies.

    It may be noted that the production capacity of cement sector has increased from 44 million tons in 2014 to 69 million tons in 2020. The losses incurred by the cement sector and increase in the price of cement in a similar time period raises suspicion of collective decision of the cement companies to recover losses incurred due unutilized installed capacities.

    The CCP said that the cement sector has history of collusive activities and they have been penalized in the past to an amount of collectively more than Rs6.3 billion on account of involvement in the prohibited agreement in violation of Section 04 of the Act.

    In 2012 the commission again initiated enquiry against cement companies, however, the same could not be proceeded further due to stay order granted to cement companies by the Lahore High Court.

    The CCP said that the latest search had been carried out to gather the evidence of possible communication, arrangement, agreement, or understanding between the cement producers pertaining to the violation of the provisions of the Competition Act, 2010.