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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.

Boycott against foodpanda expands to major cities

KARACHI: Restaurant owners of major cities of the country have joined boycott against foodpanda as food delivery company failed to negotiate, a statement said on Wednesday.

The All Pakistan Restaurant Association (APRA), after successful boycott in Karachi of foodpanda, has now started protest in Punjab province and restaurants owners of Lahore, Islamabad and other cities, have joined the protest, the statement said.

APRA chairman, Muhammad Naeem Siddiqui pointed out that foodpanda has started putting more pressure on restaurants after boycotting its services and threatened that it would not deliver the food if 30 percent commission was not paid.

“APRA has strongly protested the imposition of a 30 percent self-imposed commission on restaurants, calling it against the rules of the Competition Commission of Pakistan and the CCP is asked to play its role in ending the food panda monopoly and malpractices so that all food delivery companies have equal business opportunities”, he said.

Chairman APRA, after consultation with the Islamabad Restaurant Association (IRA), Lahore Restaurant Association (LRA) and Lahore Restaurant Unity Association, subjected to certain conditions for the restoration of foodpanda’s services.

The conditions are:

Restaurants should be allowed to deliver foodpanda orders directly through their own riders.

There should be standardized commission structure for all brands.

Customer data should be shared with restaurants.

Restaurants should not be threatened with commission increases, otherwise they will be closed.

Exclusive agreement should not be signed with any restaurant as it’s against competition laws.

Chairman APRA warned, if their demands will not meet, they will continue foodpanda boycott.

September 23, 2020
Karachi Chamber disagrees with FBR tax collection analysis

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed disagreement with the analysis released by the Federal Board of Revenue (FBR) regarding tax collection by cities and markets.

Agha Shahab Ahmed Khan President KCCI in a statement on Tuesday expressed total mistrust over the statistical figures recently disclosed by the FBR in its Tax Directory Analysis 2018.

He said that FBR recently released an analysis of Tax Directory 2018 based on income tax, in which it made some claims which were based on partial information creating a wrong perception about the income tax collection from different cities while some important information was skipped by which a reader could have verified the data.

President KCCI noted that under this report, Karachi’s income tax collection was reported to be Rs209 billion while district-wise it revealed that Karachi contributed Rs186.3 billion (Karachi Central added Rs9.06 billion; Karachi East: Rs34.09 billion; Karachi South: Rs114.23 billion, and Karachi West contributed Rs28.89 billion) which clearly indicates a discrepancy of Rs23 billion. It was unclear whether Karachi’s share was Rs209 billion in total or the district wise collection was to be added to it.

“This mismatch in income tax collection figures has raised serious doubts amongst business circles who are terming it as yet another conspiracy against Karachi.”

Likewise, he pointed out that the province-wise share was only revealed in percentage terms and the total value was not disclosed anywhere in the document to authenticate the claims.

Even while disclosing the income tax collection from major markets, many important markets including the DHA’s Gold Mark & Khadda Market and other important markets of Malir, Korangi, Banaras and Bahria Town etc. were not included in the data which gave a wrong impression that the tax collection from Karachi is low in comparison of other cities.

President KCCI further stated that the selected market data of the cities constituted just 25.7 percent (413,859 filers out of 1,606,424 non-salaried individuals and AOP filers), making it an incorrect estimate of the size and share of any city. President KCCI added that the data analysis given by FBR is just a number game and it is an attempt to undermine the share of Karachi.

According to the said document, the income tax collection of Rs209 billion from Karachi is very close to Rs204 billion collection from Islamabad which is impossible keeping in view the size, population and the immense industrial & economic activities in Karachi.

“We totally disagree to FBR’s analysis as Karachi is a port city where most of the Head Offices of multinational companies, banks, DFIs and insurance companies etc. are based while the highest number of institutions, hundreds of commercial markets, shopping malls and plazas etc. are also present in this city, making it the country’s leading industrial and commercial hub.

How could Islamabad with a population of just 1 million and negligible industrial activity compete with Karachi which holds a whopping population of around 20 million that makes it one of the largest cities of the world with seven industrial zones hosting thousands of industrial units?

He said: “Such pitiful attempts had been made in the past as well which were widely protested and completely rejected by KCCI and it has been proven from time to time that Karachi contributes the highest revenue of around 65 percent revenue to the national exchequer which has also admitted by the decision makers like Federal Minister Asad Umer and many others.

Karachi has always been the leading contributor of revenue to the national exchequer, hence we fear that FBR’s figures have been finalized cunningly through statistical juggling and it is a conspiracy to tone down the significance of Karachi which will not be accepted and widely protested at all available platforms”, Agha Shahab warned.

He requested Prime Minister Imran Khan and his entire team of economic experts to look into this serious matter and grill the FBR for releasing such an irresponsible analysis, besides directing the revenue collection authority to immediately withdraw the fabricated analysis and issue a revised version which must carry comprehensive and accurate fact and figures about Karachi.

September 22, 2020
FPCCI lambasts shipping companies, terminal operators for unfriendly behavior

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lambasted shipping companies and terminal operators for their non-cooperative behavior in trade facilitation, a statement said on Monday.
(more…)

September 21, 2020
Iran ready for barter trade with Pakistan

KARACHI: Iran is ready for barter trade with Pakistan to strengthen the economic ties between the two neighboring countries. Iranian Consul General Reza Nazeri has stressed the need for strengthening trade ties between two neighboring countries, saying Iran is ready for barter trade and it will export petrochemical, steel and LPG to Pakistan while importing rice, meat and other agriculture products from Pakistan.
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September 20, 2020
Restaurants boycott foodpanda over unfair practices

KARACHI: The All Pakistan Restaurant Association (APRA) has protested over the unfair practices by foodpanda and boycotted, also announced to stop food delivery from September 15, 2020 in the first phase in Karachi.

In a letter of complaint to the CEO of the company, Muhammad Naeem Siddiqui, chairman APRA apprised their member’s grievances and concerns, pointing out that foodpanda repeatedly pressed for increase in commission and non-implementation of the agreement and made some important demands. In which it is clearly stated that if unfair practices will not stop then APRA consider to stop work with foodpanda on a permanent basis.

“Vendor Delivery was the original concept by foodpanda and FP’s own delivery was launched as an optional service. Forcing restaurants to close their Vendor Delivery, which has not only increased unemployment but have “disconnected” them from customers and is not acceptable at all. We demand Vendor Delivery to be operational for all regardless of the size of the brand”, he added.

APRA chairman said that majority of our members are being pressurized to increase commissions but our industry already runs on razor thin margins and it’s impossible to pay 25-35pc commissions for aggregation services. It is especially difficult for new entrants, as their startup costs gets drastically higher. We need to ensure that there is a cap on commission that foodpanda may charge.

“Managers blackmail APRA members to increase the commission many folds, for e.g. from 18pc to be increased to 25pc, threatening and shutting their brands from your portal. This is the most unethical way of extorting any member to accept foodpanda terms & conditions and it needs to be stopped immediately”, Naeem demanded.

APRA president opined that our members have also complained that foodpanda ask them to work with restaurants exclusively which falls under anti-competitive business conduct and can be challenged in Competition Commission of Pakistan.

He further said that Restaurant industry was majorly hit during Covid-19 and now is the time when they need maximum support from their stakeholders. We did raise similar concerns earlier but there has been no permanent solution from their higher-ups, which has lead us to announce Suspension of Services by all our members.

APRA president warned that all APRA members will be closing their tablets from 15th September onwards initially in Karachi and if no resolution is achieved, we will be left with no option than to close the services permanently Nationwide.

September 15, 2020
Foreign investors express concern over high turnover tax

KARACHI: Foreign investors have expressed concerns over high rate of turnover tax rate, especially for those sectors where margins are very low.

Overseas Investors’ Chamber of Commerce and Industry (OICCI) expressed this concern at an interactive session with Dr. Abdul Hafeez Sheikh held on September 12, 2020, a statement said on Monday.

The statement said that the foreign investors expressed concern on the continuation of the high rate of turnover tax especially for high turnover but low margin sectors like petroleum and chemical businesses.

OICCI members also vented concern on the recent incident on the Lahore-Sialkot ring road which has damaged the morale of the stakeholders, who were otherwise satisfied with the highly improved security environment in Pakistan.

OICCI President Haroon Rashid, welcomed Dr Abdul Hafeez Sheikh and briefed him about the critical role of OICCI and its members in the economy of Pakistan and shared that delays in tax refunds and some other issues are creating hurdles in bringing Foreign Direct Investment (FDI) in the country, as well as not being in sync with the government’s agenda of Ease of Doing Business (EODB).

The participants representing the major foreign investors operating in the country appreciated the GOP’s effort in successfully overcoming the Covid 19 challenge to the economy and taking appropriate measures for the health and safety of the people of Pakistan.

OICCI members complimented the Advisor on Finance for the constructive approach adopted during the 2020-21 Budgeting process where the tariff rationalization of over 1600 items, together with rationalization of withholding taxes at import stage and many other measures contributing towards Ease of Doing Business.

OICCI also appreciated the recent launch of Roshan Digital Account for overseas Pakistanis as a step in the right direction.

Haroon Rasheed recommended that the government should take a collective view of the measures to encourage foreign investment in Pakistan, including appointing a focal ministry for streamlining operating issues of foreign investors.

OICCI strongly recommended that the government should ensure that incentives once given to foreign investors, for example vide Section 65 of the IT Ordinance 2001 in respect of new investments, should not be withdrawn while the respective projects are in implementation phase. OICCI also requested for orderly and prompt settlement of long pending tax refunds and circular debt.

OICCI members were optimistic that the country can attract large FDI by ensuring predictable, consistent and transparent policy framework and its implementation.

The participants also sought Finance Advisor review of the recent announcement that investment in the National Saving scheme will not be available to retirement funds after 2022.

On questions from the audience, Finance Advisor assured that the GIDC issue will be managed amicably in accordance with the Supreme Court decision and that the FBR will be more proactive and will regularly engage with key stakeholders like OICCI members in resolving all legitimate issues especially on tax refunds.

At the meeting Advisor to PM on Finance Dr Abdul Hafeez Sheikh gave a comprehensive overview of the challenges faced by the economy in the past two years and how the GOP has successfully managed to stabilize the economy which is now on a recovery path.

Dr Hafeez Shaikh added that the growth trend in some industries like cement, automobile and fertilizer and rapid growth noticed at PSX are very encouraging and should give confidence to investors.

September 14, 2020
KCCI rejects electricity tariff hike, demands immediate withdrawal

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has rejected the recent hike in electricity tariff and termed it disaster for the industry.

The chamber also demanded the government to immediate withdraw the increase in electricity tariff.

KCCI President Agha Shahab Ahmed Khan in a statement on Thursday said that the announcement of increase in rates of electricity ranging from Rs.1.09 to Rs.2.89 has come as a shock to the industries based in Karachi.

“This is yet another blow to the trade and industry which is already suffering from losses as a result of lockdowns during Covid-19 pandemic and again due to devastating rainfalls in the city which has caused losses in billions of rupees,” he added.

He urged Advisor to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh to immediately withdraw this unjust and ill-timed hike in electricity tariff which would further aggravate the hardships for Karachiites who are struggling really hard to recover from devastating impact of coronavirus pandemic and subsequently the massive damage to their assets including buildings, warehouses, machinery and materials.

The damage is yet to be assessed when the water is cleared and some normalcy is restored.

He pointed out that ECC and higher authorities have shown utter disregard for the miseries and losses suffered by people of Karachi, by approving yet another electricity tariff hike because ECC had already imposed a tariff increase in July this year by Rs2.89 per with immediate effect.

Before the industrial, commercial and residential consumers could absorb the tariff hike in July’ 2020, yet another increase was approved to further squeeze the consumers in a calamity hit city.

“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 today is passing through worst possible crisis and suffering due to a crumbling infrastructure, lockdowns and urban flooding due to the heaviest rainfall in 90 year history”, he added.

On the one hand, the Prime Minister and Army Chief have shown their resolve to rescue the city of Karachi from complete destruction and economic fallout of natural as well as man-made disasters, while the ECC and honorable Advisors are taking decisions which are contrary to the commitments made by the Prime Minister and COAS, he opined.

September 3, 2020
FPCCI praises SBP for timely action to avert coronavirus impact

KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised State Bank of Pakistan (SBP) for timely action to minimize adverse impact of coronavirus on trade and industry, a statement said on Monday.

“However, implementation of such measures is required to reach at the grass root level,” said Khurram Ijaz, Vice President, FPCCI, while chairing webinar on ‘Implications of Covid-19 on the Financial Market/Institutions of Pakistan.’

He said that outbreak of Coronavirus has not only affected the trade and industry of Pakistan, but drastically declined the performance of the financial market and major economic indicators in the economy.

During discussing, Arjumand Qazi, Group Head (SME)- Pak Brunei Investment said that SBP has indeed extended maximum support to the trade and industry in term of designing and announcing effective financing schemes since April 2020.

However, commercial banks and other financial institutions are still reluctant to extend such facilities to rural businesses.

Khurram Shehzad renowned financial expert appreciated SBP’s measure to decrease the interest rate from 13 percent to almost 7 percent in last 6 months.

He said that it is high time that commercial banks, investment companies and other stakeholders of the financial market play their part in the economic and financial survival of the economy.

Hasan Raza, Head of Project Management in Research Dept. Pakistan Stock Exchange (PSX) said that Pakistan Stock Exchange fell down to 27000 index point in February 2020 at the start of the lockdown, but with the efforts of PSX, the KSE index point has reached upto 40,000 index point in August 2020.

He further shared information regarding newly launched mutual funds and new Sukuk bonds in 2020.

While expressing his views, Zubair Haider Sheikh, Head of Cooperate & Investment Banking-Dubai Islamic Bank said that as the country is moving back to normal activities amid ease of lockdown in the economy, the commercial banks must come upfront to expand Temporary Economic Refinance Facility (TERF) as well as long term financing schemes to the masses.

Ahsan Mahenti, Managing Director, Arif Habib Commodities while appreciating SBP’s initiatives to fight the financial losses bared by the business during lockdown however, there is still need of incentive driven policies to support the corporate sector as well.

Participants of the webinar included Ali Kamal, Head of Research National Investment Trust (NIT), Imran Khali, Chairman Pak-Maldives Business Councils of FPCCI, Shabbir Mansha, Convener FPCCI Standing Committee on Custom Affairs, Amber Paracha Head of Credit Risk Management of Pak-Brunei Investment, members Trade Bodies and prominent members of FPCCI appreciated the initiative by FPCCI for conducting such informative seminars on various topics economic issues highlighting the problems and solutions which is highly commendable.

August 24, 2020
Sindh EPA takes measures to control Industrial, vehicular emissions

KARACHI: Sindh Environmental Protection Agency (SEPA) has taken major steps to control industrial and vehicular emissions and retain 40 percent improvement in air quality.

The air quality of Karachi city has improved by 40 percent after imposition of lockdown to contain spread of COVID-19.

In this regard, SEPA issued directives to all industrial associations to conduct air quality monitoring in their industrial areas to check air quality degradation and plant saplings in huge number in and around their factories.

Industries have been asked to submit their tree plantation plan within one week into the office of SEPA.

Industries have also been directed to improve the conditions of their buses of shuttle service to control their air emissions and take practical measures to facilitate smooth plying of vehicles in and around their factories.

Moreover, SEPA is also re-launching its vehicular emission control campaign throughout the city to fine/penalize smoke-emitting vehicles with the help of traffic police.

In this regard an emergency meeting of all industrial associations of the city including Federal B Area, North Karachi, SITE, and Super Highway was held under the chairmanship of Director General SEPA Naeem Ahmed Mughal at the office of SITE Association.

The meeting was attended by Sulaiman Chawla President SITE Association, Shaheen Ilyas President Super Highway, Nasim Akhtar President North Karachi Industrial Association, Noman Yaqoob President Landhi Association, Abdullah Abid F.B.Area Industrial Association, Sheikh Umer Rehan President Korangi Association of Trade and Industry, Naveed Shakoor President Bin Qasim Association besides prominent industrialists Zubair Motiwala, Salim Pareekh and Javed Balwani.

Representatives from SEPA were Director Regional Office Karachi Aashiqui Langha, Deputy Directors Waris Gabol and Imran Sabir besides DG SEPA.

Addressing the meeting, the DG SEPA Naeem Ahmed Mughal said that for the vigorous enforcement of environmental laws all necessary measures are being taken by the environmental watchdog on priority basis.

He informed the participants of the meeting that SEPA had conducted a comparative study of air quality of Karachi prior to lock-down and during the lock-down; which revealed a 40 per cent improvement in air as a result of lock-down.

He pointed out that deteriorating air environment is equally a matter of grave concern for all of us and its control is possible with the collective efforts of all stakeholders including industries and vehicle owners/transporters.

He further said that to improve the air quality in the city all the industrial associations should start beautification campaigns at the major roundabouts in their areas along with plantation at the open spaces to improve the air quality parameters.

DG SEPA further directed that all the industrial associations should conduct an air quality study in Karachi to analyze the present air quality with regard to its improvement.

He also underscored the need of environment-friendly transport for commuting the industrial workers to help mitigate their air emissions.

The DG SEPA specifically directed for the proper disposal of solid waste being generated by the industries which includes both hazardous and non-hazardous industrial waste.

“Wastewater treatment plants should be installed as per the directives of Water Commission and in case of any negligence on this score, SEPA will take stern action’, he warned.

He further said that the culprits who are responsible for the burning of solid waste in any area will be dealt with iron hand. SEPA simply needs cooperation of public in this regard to complain us as and when any such incident occurs in their area.

At the end, he vowed to provide technical assistance to industries with regard to industrial pollution control.

It may be recalled that according to data collected in April 2020 during the lock-down by SEPA from different locations of six districts of Karachi the average particulate matter 2.5 (PM 2.5) – the most lethal and stubborn air pollutant – was improved by 39 percent as compared to the same data taken from 76 locations of the city in February 2020 before the lock-down. Likewise, the noise level of the city was also improvement by 19 percent during the lock-down.

The district-wise details of the data revealed that air quality of districts Central, East, South, West, Malir and Korangi was improved by 8, 61, 40, 37, 25 and 54 percent respectively while an improvement in the noise level of Central 42, East 20, South 15, West 17, Malir 2 and Korangi 26 percent occurred during the lock-down as compare to before lockdown.

August 20, 2020
Iqbal Tabish appointed as FPCCI secretary general

KARACHI: Muhammad Iqbal Tabish has been appointed as general secretary of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) with effect from August 19, 2020, said a statement.

FPCCI president Mian Anjum Nisar appointed Muhammad Iqbal Tabish as the Secretary General of the organization in accordance with rules and procedures laid out in Trade Organization Ordinance of Pakistan.

The appointment of Iqbal Tabish has been termed as a hopeful prospect for FPCCI in view of his wide experience of working with public and private organizations at national and international level.

Prior to assuming office of the Secretary General FPCCI, Iqbal Tabish has served in Ministry of Industries and Production as Chief Executive Officer of Pakistan Industrial Development Corporation (PIDC) and Secretary General SAARC Chamber of Commerce and Industry.

He has also worked as a Senior Economist and Head (R&I) at WTO Cell of Trade Development Authority of Pakistan, Ministry of Commerce and has been associated with FPCCI as Director (R&D) in addition to other important assignments.

Iqbal Tabish has a long term association with National and International organizations, which included Member, Economic Advisory Council (UNESCAP), Observer on World Banks’ Investment Climate Fund’s Program on Climate Resilience, Stakeholder Advisory Network-CIF, Steering Committee Member of Sweden Standards Institute (South and East Asia) and has been regular invitee to Expert Group Meetings on SAFTA, Honorary Secretary General, China-South Asia Business Council for Promotion of International Trade (CCPIT), Yunnan and Sichuan Province of Peoples’ Republic of China and Member, Advisory Committee of SAARC Trade Portal Network of GIZ in addition to involvement in projects of UNDP and World Bank Group.

Scholastically enriched, Iqbal Tabish is a Ph. D Scholar in a leading university and holds M. Phil Degree in Management Sciences (Finance) along with Master Degree in the faculty of Economics as well as Business Administration.

He has contributed in the development of literature on trade, economics, intra-regional transport and connectivity, energy, climate change and author of several publications in the similar areas.

August 19, 2020