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Category: Trade & Industry

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  • FPCCI expresses concerns over power tariff increase decision

    FPCCI expresses concerns over power tariff increase decision

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over government decision to increase electricity charges.

    FPCCI President Mian Anjum Nisar in a statement on Saturday urged the government to continue power tariff of 7.5 Cent/Kwh for Zero-rated sector as announced in the January 2019.

    He said that upward shift in electricity charges will hurt exports target of US $ 26 billion set under Annual Plan 2019-2020.

    The FPCCI president informed that few days back a delegation of FPCCI under him was met with the Prime Minister Imran Khan and he informed the Prime Minister about challenges and difficulties being faced by Pakistan industry.

    He informed the Prime Minister that electricity charges in Bangladesh and India are nearly 7-9 Cent/Kwh while in China which is our major trading partner the electricity charges are less than 9 Cent/Kwh.

    Similarly, high mark-up rate in Pakistan is also creating hurdles to industrial growth.

    Interest rates in Pakistan are 13.25 percent while in India is 5.15 percent, China 4.2 percent and in Bangladesh the rate of interest is 6 percent.

    President FPCCI further stated that if the government allow upward shift in electricity rate which is expected to be nearly 70 percent increase in existing 7.5 Cent/Kwh and from January 2019, the exports will be discouraged and our buyer will lose confidence in Pakistani suppliers due delay in exports orders.

    He urged the government continuation and consistency in long term policies once it is announced. Changes and revisions hurt the industrialist’s plan of production and purchases and booking of orders which is made according to the policy announcement.

    He emphasized the government to review its decision of changes in electricity tariff and continue the rates as announced to support industry.

  • FPCCI fears no advantage for Pakistan under Phase-II FTA with China

    FPCCI fears no advantage for Pakistan under Phase-II FTA with China

    KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) feared that Pakistan would not be able to take advantage of opportunities under Phase II of China Pakistan Free Trade Agreement (CPFTA-II).

    Mian Anjum Nisar, President FPCCI and Sheikh Sultan Rehman, Vice President FPCCI said in a statement on Monday expressed fear that Pakistan may not be able to reap benefits under Phase II of China Pakistan Free Trade Agreement (CPFTA-II) despite elimination of duties on 313 tariff lines covering most of Pakistan’s exports.

    He pointed out that during Phase I of China Pakistan FTA, the balance of trade remained greatly in favor of China which managed to export 57 percent of its product lines while Pakistan could take advantage of only 5 percent of its product lines.

    Pakistan exported US $ 2.1 billion approx. while imports from China have reach more than US $ 17 billion approx. that created trade gap of US $ 15 billion approx. in favor of China.

    While products included in this volume of Pakistan’s exports to China are cotton (US $ 872.85 million), Cereals (US $ 161.3 million), Copper (US $150.26), Beverages, spirits and vinegar (US $133 million), Fish, crustaceans, molluscs, aquatics invertebrates (US $ 91.21 million), Ores slag and ash (US $ 66 million), Machinery, boilers (US $45.9 million), Salt, sulphur, earth, stone, plaster, lime and cement ( US $ 43.36 million), Raw hides and skins (other than furskins) and leather ( US $ 35 million, Articles of apparel, knit or crocheted (US 30 million).

    FPCCI Office Bearers expressed serious concern about Pakistan’s ability to benefit from Phase II, when Pakistan does not have surplus products to exportdue to a shrinking economy.

    He further highlighted the fact that industrial output is declining because of de-industrialization in the last few years. Serious issues like, high interest rates, frequent increases in power and gas tariff, unavailability of gas to industries, abrupt changes in government policies, rampant smuggling, refunds to exporters and an overall hostile environment are making it difficult for industries to sustain their existence.

    FPCCI Office Bearers urged Government of Pakistan to urgently develop a robust and holistic industrial policy that would lead to massive industrialization in the country, encourage R&D, innovation, diversification and development of new products, improve quality standards and enhance technical skills of labor.

    He also urged Chinese companies to enter into joint ventures with Pakistani manufacturers and relocate their industries to Special Economic Zones. These efforts will significantly raise industrial output enabling Pakistan to take advantage from Phase II of China Pakistan FTA.

    Otherwise, Pakistan will not be able to receive benefits from supposedly vast opportunities available to us and the fate of Second Phase of China Pakistan FTA will not be any different that the First Phase.

  • Pakistan Customs assures eliminating import barriers

    Pakistan Customs assures eliminating import barriers

    KARACHI: Pakistan Customs has assured commercial importers of eliminating import barriers and improve facilitations through online system WeBOC.

    Dr. Mohammad Nadeem Memon, Collector of Customs, has assured to solve the problems facing the commercial importers at the import level and also provide all possible facilities.

    He was talking to a delegation called by Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman and former Director of Pakistan Stock Exchange, Amin Yousuf BalgamWala. Amjad Yaqoob, Muhammad Idrees and Mohammad Sabir were also present in the meeting.

    The meeting discussed the issues with delegation including WeBOC and said that would be tried to resolve the difficulties of the members of the association on priority basis so that there would be no barrier to imports.

    Amin Yusuf Balgamwala, Chairman, PCDMA and former Director of Pakistan Stock Exchange informed about problems and said that PCDMA was always helping in customs price valuation for the last 30 years, but at the import level, commercial importers are facing various problems that need to be addressed.

    He requested to the collector of customs that PCDMA represents commercial importers across Pakistan and regional offices are established in Lahore and Faisalabad besides headquarters in Karachi, therefore, the recommendations of the association in the WeBOC should be accepted on regular basis and facilitate PCDMA members with regard to ID.

  • FPCCI demands uninterrupted gas supply to meet export targets

    FPCCI demands uninterrupted gas supply to meet export targets

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday urged the government to allow gas connections to new industrial units and uninterrupted gas supply to existing units in order to meet export targets.

    Mian Anjum Nisar, President and Sheikh Sultan Rehman, Vice President of the Federation of FPCCI urged the government to provide gas connection to new industrial units as well as uninterrupted supply of gas to existing industries in order to meet export targets.

    They strongly criticized the stoppage of gas to industrial estates of Karachi by Sui Southern Gas Company Ltd, resulting in serious loss of productivity.

    This in turn leads to failure in meeting export orders on time and financial losses to exporters as they have to ship by air to meet the deadlines.

    They expressed their displeasure that industrialists of Karachi had to resort to sit-ins on this issue.

    They underscored the need to provide basic amenities like water, power and gas so that industrialists can focus their attention on increasing productivity and meeting export targets rather than protesting on the streets.

    They urged the government to wholeheartedly support the industry which is facing a very hostile environment and fighting for survival.

    “Failure to supply uninterrupted gas will lead to further closure of industry resulting in increased unemployment and serious law and order situation in the near future”, they added.

  • Razak Dawood hints incentives for exporters in next budget

    Razak Dawood hints incentives for exporters in next budget

    KARACHI: Abdul Razak Dawood, Adviser to Prime Minister on Commerce, Industry and Production on Saturday said that the ministry of commerce is planning a comprehensive strategy with the help of Federal Board of Revenue (FBR) to introduce export incentives in the next federal budget 2020/2021.

    Razak Dawood was addressing during his visit to Karachi Chamber of Commerce and Industry (KCCI). He said that increase in exports is must for economic growth. The adviser said that the purpose of increasing exports is to boost foreign exchange reserves of the country.

    The adviser said that the economy was facing immense challenges a year ago. The economy was facing monthly $2 billion deficit during the period. The present government had taken decisions to improve the economic condition. “These decisions have resulted in shrinking current account deficit,” he added.

    The foreign exchange reserves of the country have increased to $18 billion from $11 billion.

    He pointed out criticism on five percent growth in exports and rupee devaluation and said that it should be realized that globally exports had declined. He said that Pakistani exports had increased in terms of volume.

    Razak Dawood said that exports should be duty and tax free. “In this regard we are planning with the FBR to facilitate exporters,” he added.

    He informed that India was allowed duty drawback on around 1,000 items. “If India is granting duty drawback on 1,000 items then we should increase the numbers,” he added.

    The adviser said that in the past the country had focused only on five sectors for exports. “We need to identify and increase the number of exportable items.”

    He said that businessmen complaining about non-issuance of refunds. “This is not correct. The government has released Rs17.5 billion refunds,” he added. “This month more refunds will be issued to non-textile sector.”

    The adviser said that the export of meat and poultry had increased by 54 percent. “We analyzed data and identified the exports of livestock was going to Saudi Arabia and UAE,” he said, adding that around 60 tons sea food products had been exported to China.

  • Exporters missing shipping deadline due to strike

    Exporters missing shipping deadline due to strike

    KARACHI: All Pakistan Textile Mills Association (APTMA) on Wednesday said exporters are missing shipment deadline due to transporters’ strike.

    The APTMA in a statement said that the recent strike by the transport sector is going to impact exports significantly as there are no empty containers are available in upcountry for exports.

    APTMA spokesman said that as a result of unavailability of empty containers in upcountry due to strike of transport sector, exporters are missing shipment deadlines.

    One additional factor that is a major cause of the scarcity of containers is the large number of orders that have been received from China after the effectiveness of the Phase II of the Free Trade Agreement between China and Pakistan.

    APTMA Spokesman further said that even if the containers were to be dispatched from Karachi today they would take 3 days to reach upcountry where exporters have already have had 2 days without containers; effectively a further week of exports would have been delayed/lost.

    Under these circumstances, we request the government to take immediate action for resolving the issue so that no more exporting deadlines are missed.

  • FPCCI, KCCI sit together after long time

    FPCCI, KCCI sit together after long time

    KARACHI: Members of Pakistan Federation of Chambers and Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) on Wednesday sit together after defeat of SM Muneer led group in the recent elections of FPCCI.

    Siraj Kassem Teli, Chairman of Businessmen Group (BMG) along with office bearers of KCCI visited FPCCI on the invitation of newly elected FPCCI president Anjum Nisar.

    President FPCCI Anjum Nisar in his welcome address appreciated the role of KCCI in supporting him in the election.

    He vowed that business community would evolve a joint strategy for resolution of problems.

    Nisar said that the economic conditions were not good and it was difficult for industries to operate in higher interest rates.

    BMG chairman Siraq Kassem Teli, who visited the FPCCI after about 20 years, praised the unity of business community.

    He said that his group would fully support the FPCCI on economic issues.

  • KCCI demands terminal operators to publicize container charges

    KCCI demands terminal operators to publicize container charges

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the terminal operators to make public the container charges.

    Agha Shahab Ahmed Khan, President, KCCI while referring to numerous complaints submitted at the Chamber by the importers, urged the Terminal Operators and Shipping Agents to publicize Full Container Load (FCL) and Less Than Container Load (LCL) charges on their websites in order to facilitate trade and industry.

    It has been observed that terminal operators and shipping agents do not share the breakup of charges even on demand and seek aggregate amount decided whimsically which was highly unfair as the relevant traders are totally unaware of what exactly was being charged under what label.

    “Access to such information is the fundamental right and a fair demand of the importers who are carrying out legitimate businesses and timely paying all their taxes”, he said, adding that the Ministry of Maritime Affairs must look into this issue and order the Terminal Operators and Shipping Agents to share breakup of charges with importers which would certainly be appreciated by the business community.

    Agha Shahab was of the opinion that Pakistan’s sea port charges were one of the highest in the South Asian region which discourage cost efficient shipping lines from taking cargo to and from Pakistan resulting in a demand/supply gap and higher transportation costs for the traders.

    “As per studies conducted earlier, Karachi’s two ports have charges which are estimated to be three times that of Sri Lanka’s, and seven times that of Singapore. Such problems should be addressed at the earliest, if we want to see Pakistan rapidly become a hub of regional trade”, he added.

    He said that the business community faces inconsistency in the charges of shipping companies, thus making costing and forecasting difficult for businessmen.

    Shipping lines are charging exorbitant charges in the name of free competitive rates and loose cargo landing delivery orders.

    “In addition, high port charges are being charged as there is no fixed policy in this regard. This is adversely affecting the business in terms of flow thus creating a negative impact for the business community,” he added.

    He stressed that the charges of KICT, PICT and QICT are too high in comparison with global standards and need to be reduced.

    “There is a need to increase the time of free days of delivery order and detention charges of containers to 21 days and detention slab of not more than $5 per day after 21 days by the shipping companies. The number of demurrage free days should also be increased to around 10 days,” he added.

  • Law allows fuel adjustment charges only for two months

    Law allows fuel adjustment charges only for two months

    KARACHI: Industry has raised questions over decision by National Electric Power Regulatory Authority (NEPRA) to allow past four years fuel adjustment charges to K-Electric.

    In a joint statement the leaders of North Karachi Association of Trade & Industry (NKATI) on Wednesday said that according to the law the distribution company not allowed to collect fuel adjustment charges for more than two months, but on the contrary, NEPRA has allowed to K-Electric for collecting four-year fuel adjustment charges which is a gross violation of the law.

    They said that NEPRA’s move is a conspiracy against businesses as the products that was exported four years ago can how cover the cost of fuel adjustment now.

    According to NEPRA’s notification, the amount will be charged from January 2020 to September 2020 in electricity bills.

    Capt. A Moiz Khan, patron in chief, NKATI and Nasim Akhtar, president, has strongly opposed the NEPRA to receive 4-year fuel adjustment charges from industries and refused to accept this decision.

    In an appeal to Arif Alvi, President of Pakistan, Imran Khan, Prime Minister, Power Minister and Chairman NEPRA, said that the permission to collect fuel adjustment charges to K Electric for the period from July 2016 to June 2019 should be canceled immediately or else industries will be destroyed.

    Capt. Moiz Khan and Naseem Akhtar said that business community of Karachi are already badly affected due to high doing business cost, while electricity tariffs have also been raised, huge taxes and in the current economic situation it extremely difficult to run industries, as industrial wheel is almost jammed due to over-production costs, especially the SME sector will be ruined and even the remnants of exports will be completely closed.

    They expressed concern that due to of such measures, industries will be defaulted and Government will be responsible.

    Nkati’s leaders urged to President and Prime Minister to immediately cancel K Electric’s permission to collect 4-year fuel adjustment charges and measures should be taken to protect industries from destruction, otherwise the industries will be locked up, which will lead to unemployment and worsening financial crisis. It will also have a very negative impact on exports so such decisions should be avoided.

  • Gas shortage created purposely for using RLNG: KCCI

    Gas shortage created purposely for using RLNG: KCCI

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has said that the gas shortage in Sindh is created purposely to force industry to take RLNG.

    Agha Shahab Ahmed Khan, President KCCI in a statement on Wednesday said: “gas pressure has been reducing purposely to pressurize the industries to take RLNG, which has resulted in terribly affecting the overall production and was causing severe losses of up to billions of rupees.”

    He added: “Gas resources in Sindh are largely being mismanaged that has led to creating severe crises not only in Sindh but also in Punjab and the rest of the country.

    “None of the provinces were getting the required gas due to the said mismanagement. If gas resources are distributed exactly as per Article 158, there will not be any crises in Sindh and Karachi, which is the hub of economic & industrial activities while the rest of the country must get RLNG which has to be promptly imported.”

    He expressed displeasure over serious gas shortage being suffered by the industries situated in all industrial zones in Karachi, stressed that the gas being produced in Sindh must at first be provided to its inhabitants and industries whereas only surplus gas should be forwarded to other provinces as per Article 158 of Pakistan’s Constitution.

    Agha Shahab stated that RLNG, which was being imported to overcome gas shortages, must be provided to those provinces who either have zero gas production or were not producing sufficient amount of gas as per their requirement whereas, the Sindh province, which is blessed with abundant gas resources, must get gas from its own reserves.

    “Why the consumers in Sindh are being compelled to take RLNG, when the province has sufficient gas reserves to surmount its local demand,” he asked, adding that it is totally ‘contrary to the Constitution.’

    “We, the business & industrial community of Karachi, are already suffering badly because of high cost of doing business therefore the suspension of gas in Karachi would not only prove detrimental for the industry but would also lead to worsening the economic crises, besides raising poverty and unemployment,” he opined.

    Referring to Prime Minister Imran Khan’s remarks in which the business community was urged to set up industries and factories as 2020 is going to be a year of growth, Agha Shahab said that under the prevailing circumstances when the existing industries were confronted with severe gas crises, high electricity rates, exorbitant interest rates, devaluing rupee against dollar, rising petroleum prices, lack of infrastructure and other serious civic issues, how could anyone think of setting up industries or go for expansion.

    “In order to actually make 2020 a year of growth, the government will have to resolve all these issues on top priority otherwise there will be no growth at all and the economic performance would continue to remain depressed or it may even worsen further,” he added.