KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that inflation in Pakistan is cost push and it cannot be controlled through tight monetary policy stance.
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US companies reluctant to visit Pakistan: USDA counselor
KARACHI: Rey Santella, Agricultural Counselor of United States Department of Agriculture (USDA) has said although they were inviting the US business community but many of them were still reluctant to visit Pakistan mainly due to negative perception and also because of legal and Information Technology related hurdles that need to be addressed.
While speaking at a meeting during his visit to the Karachi Chamber of Commerce and Industry (KCCI), he said that Pakistan had many challenges in the past but the country has been progressing well and the situation was much better now.
“Good opportunities for US investors exist in Pakistan where they can surely explore trade and investment opportunities in numerous sectors including the agriculture, dairy, food items and animal feeds etc.”
Rey Santella pointed out that besides exporting meat, soybean and other agricultural products, non-fat dry milk worth US$50 million was also being sent to Pakistan annually.
“There is a big potential for further expanding trade and investment ties between the two countries but the business communities will have to meet more frequently so that this potential could be realized.
“Meanwhile, USDA, which is already cooperating in the agriculture sector, is ready to provide technical assistance and training of trainers in the dairy and animal husbandry that would lead to improving the productivity.”
He sought KCCI’s assistance in identifying numerous trade opportunities so that these could accordingly be focused and disseminated amongst US companies with a view to improve the existing trade ties between the two countries.
Rey Santella further informed that USDA will be participating in Gulfood Exhibition scheduled to be staged in Dubai in February 2020 where Pakistani companies can visit the stalls of numerous US companies to examine their products and services.
Earlier, President KCCI Agha Shahab Ahmed Khan, in his welcome address, stated that it was really heartening to see many US companies were taking keen interest in Pakistani market hence, it was the right time to fully facilitate and encourage joint ventures between the business communities of the two countries in numerous sectors.
He was of the opinion that there was a huge potential to enhance trade and investment cooperation between Pakistan and the United States, particularly in the agriculture, dairy, livestock, fisheries etc.
“We must promote collaborations in all such sectors with huge trade and investment potential which would certainly prove favorable for both the nations”, he added while acknowledging the support and cooperation being extended by USDA.
He mentioned that Pakistan, being the 4th largest producer of milk, produces around 54 billion liters of milk per annum hence, this was an area where the business communities of the two countries must look for joint ventures while the USDA must extend technical cooperation so that the dairy yield could be improved further.
Agha Shahab further noted that as US has an advanced agricultural sector while Pakistan’s economy is also agri-based, it is very crucial to cooperate in this particular sector by focusing on exploring ways and means on how to transfer US technology to Pakistan’s agricultural sector, which was facing several issues including limited cultivatable land, water and fertilizer scarcities and also the energy crises.
“US can provide assistance in enhancing the yield of cultivatable land and you can also share water conservation and energy saving techniques, besides providing good quality fertilizers at competitive prices to Pakistani farmers”, he added.
He also underscored that instead of staying confined to just sending the same old traditional items only, the business community must look into the possibility of diversifying the exports by exploring new avenues and they must also effectively market their products and services in order to maximize share in the US markets.
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FPCCI urges convention compliance for continuation of GSP Plus
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to ensure compliance to international conventions for continuation of GSP Plus status granted by European Union (EU).
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Banking channel between Pakistan, Iran to become reality soon: KCCI
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday hoped that banking channel between Pakistan and Iran will become reality soon.
Agha Shahab, President, KCCI said at a meeting with an eight members high level delegation from Iran, which was led by the Managing Director of Milad-e-Noor Ali Mohtassham Amiri .
Agha Shahab noted that the negotiations on Free Trade Agreement (FTA) are underway as both the countries have shared their desire of upgrading Preferential Trade Agreement (PTA) into Free Trade Agreement (FTA) for which initial drafts have already been shared while the State Bank of Pakistan has also shared draft of Memorandum of Understanding (MoU) for signing its Banking Paying Arrangement (BPA) with Iran’s Iranian Bank Markazi Jomhouri.
Both countries have already signed MoU through which channels would be opened in the central banks of both the countries for trade transactions that would reduce the usage of dollar account for Letter of Credit (LC) clearance.
He hoped: “the desperately needed proper banking channel between Pakistan and Iran becomes a reality soon which would surely boost the existing trade ties.”
He was of the opinion that abundant opportunities were available in the Iranian dairy, livestock, meat and beverages sectors for Pakistani traders and investors while Pakistan can also take benefit of Iran’s petrochemical sector.
Agha Shahab underscored the need to sort out infrastructural constraints to enhance bilateral trade via Quetta-Taftan land route whereas regular operation of ECO container train will lend impetus to cargo and transit facilities between the two countries.
While underscoring the need for a realistic approach, President KCCI said that KCCI was keen to strengthen trade ties with their counterparts in Iran.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri, on the occasion expressed the eagerness to improve trade ties with the Pakistani business community which would surely result in further improving the existing trade volume between the countries.
Managing Director of Milad-e-Noor Ali Mohtassham Amiri stated that they were intending to improve trade ties with Pakistan and if serious efforts are made from both side, Pakistan and Iran can certainly become powerful partners.
Commercial Attaché of the Iranian Consulate in Karachi Mahmoud Hajy Yousefi Pour, in his short remarks, pointed out that huge potential exists to enhance trade and investment cooperation between the two countries but because of some hurdles, trade was not prospering at the desired pace which requires attention.
The bilateral trade between Pakistan and Iran was much less than the potential as Pakistan exports stood at a mere $330.2 million while the imports were around $1.247 billion during 2018.
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Qatar to open two more visa centers in Pakistan: envoy
KARACHI: Consul General of Qatar Mishal Muhammad Ali Al Ansari has said his country will open two more visa centers in Pakistan for facilitating visa processing, a statement said on Friday.
At a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI) that, he said that two Qatari visa centers were already operational in Karachi and Islamabad while two more such centers will also be established in Peshawar and Lahore in future for processing visas of mostly the skilled and semi-skilled labors.
“Around 150,000 Pakistanis are living in Qatar as compared to around 40,000 Pakistani expats just four years ago,” he said.
Qatari Envoy further stated that Qatar and Pakistan have been enjoying very old and strong relations since many decades. “We have initiated visa on arrival service for all Pakistanis while Qataris were also benefiting from a similar visa on arrival facility during their visit to Pakistan. Pakistan is exporting fruits, vegetables, fishes, rice, minerals, steel and cement to Qatar and is one of the fastest growing partner of Qatar in the region.”
He said, “We’ve opened up the country and are looking for partners from all over the world. We’ve also eased the restrictions and regulations for anyone who wants to do business in Qatar. There are numerous sectors where no local Qatari partner is required anymore while Qatari Banks are also fully assisting such foreign investors.”
Qatari CG pointed out that 90 percent of Qatari imports from Saudi Arabia and Emirates were suspended because of the blockade imposed around two years ago subsequently, they partnered with other countries including Turkey, Iran, Pakistan and India, besides focusing on becoming self-sufficient in numerous sectors.
“A lot of changes happened in Qatar during the last two years. We are now self-sufficient and not relying on anyone in the dairy, poultry, farming sectors. Our farms have increased production by almost a thousand percent and all the major vegetables are also being grown in Qatar now. Even our fish farms have now tripled as compared to what they were before the blockade”, he added.
Keeping in view the recent developments, he was fairly optimistic that the blockade would ease up which would create a much better situation for Qatar. “There was an effect, which I cannot deny but now we are doing well without them and with them (Saudi Arabia & Emirates), we will do great”, he said, adding that all the projects were going on smoothly in Qatar as the new expansion of the airport has started while Qatar Airways was also doing very well since the blockade as the airline added 26 new destinations, raising the total number of destination to 160.
Highlighting the activities underway for the FIFA 2020 World Cup and the Vision 2030, Qatari Consul General stated that preparations for the FIFA world cup were in full swing as a lot of projects are going on in Qatar, of which half of the development work on the subway system has been completed while the construction of two out of six stadiums has also been completed while work on the remaining four football stadiums will also be completed next year.
Moreover, 80 hotels were also being constructed in Doha while some huge cruise ships will also be arriving in Qatar just for the World Cup which is likely to be attended by millions of people from all over the world. “FIFA World Cup’s spending is almost US$200 billion while under the Vision 2030, around 150 large scale projects worth billions of dollars are to be offered after FIFA world cup in 2020.”
He further mentioned that although one or may be two projects, which are not even 10 percent of the total construction projects, suffered some delay because of the blockade but the construction industry continues to grow as many new buildings and hospitals are being constructed.
“We are also focusing on promoting tourism, particularly the Cultural Tourism as many new museums are being established and the Museum of Islamic Art and Cultural Centers in Qatar are already open whereas the Hamad Port, which is the largest port of Gulf region, also became fully operational a year ago”, he added.
Earlier, President KCCI Agha Shahab Ahmed Khan, while welcoming the Qatari Consul General, underscored the need to make collective efforts to enhance trade ties between Pakistan and Qatar. Both countries have been enjoying good bilateral relations particularly in the energy sector but efforts have to be made from both side to enhance trade and investment cooperation in other sectors as well.
Referring to FIFA 2020 being organized in Qatar, he stated that this particular event has opened up a host of opportunities for the business communities of both the countries to collaborate in numerous sectors of the economy.
He was of the opinion that Pakistan, being an agricultural economy, can offer many commodities to Qatar and there was also good potential for enhancing trade in fresh fruits, vegetables, rice, meat, livestock, gems & jewelry, Information Technology and Engineering sectors.
“As Pakistan produces some of the finest gems & jewelry whereas Qatar has been importing these products mostly from India, therefore the Qatari business community must look into the possibility of importing good quality gems and jewelry products from Pakistan as well”, he added.
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KCCI to raise commercial importers’ problems with FBR
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has assured commercial importers of taking up their issues with the Federal Board of Revenue (FBR) for resolving amicably.
President KCCI Agha Shahab Ahmed Khan, in a statement on Tuesday, assured Pakistan Chemicals & Dyes Merchants Association (PCDMA) that the chamber will approach the FBR and other concerned authorities so that the issues being faced by commercial importers could be amicably resolved.
Exchanging views at a meeting during the visit of PCDMA delegation to KCCI, President KCCI requested PCDMA to submit practical suggestions for resolving the issues being faced by the commercial importers.
General Secretary BMG AQ Khalil, Senior Vice President KCCI Arshad Islam, Vice President KCCI Shahid Ismail and KCCI Managing Committee members attended the said meeting with PCDMA delegation led by its Chairman Amin Yousuf Balgamwala, which also comprised of Vice Chairman Asif Ebrahim, Former Chairman Haroon Agar, Arif Balgamwala and others.
President KCCI was fairly optimistic that the issue pertaining to SRO 1190 will certainly be taken into consideration and resolved on KCCI’s intervention.
He also sought PCDMA’s suggestions for realistic valuation ruling so that the same could be forwarded to relevant authority for consideration with a view to provide a level playing field to commercial importers.
While agreeing to Chairman PCDMA’s suggestion to form a committee so that collective efforts could be made to get the issues resolved, Agha Shahab sought PCDMA’s nominations for the proposed Committee.
Speaking on the occasion, Chairman PSDMA Amin Yousuf Balgamwala brief President KCCI about the issues pertaining to Sales Tax, particularly the SRO 1190 being faced by the commercial importers.
“We are facing a lot of problems in value addition and have constantly been sending letters to concerned authorities but no relief has been provided so far”, he said, adding that the valuation ruling, which have not been revised since many years, must be regularly revised after every three months.
He further mentioned that as the CNIC condition will come into force from January 2020, therefore collective efforts have to be made on time to avoid any problems in future. “It is really unfortunate commercial importers, who regularly pay all their outstanding taxes, are being called tax evader and accordingly treated, which is not justifiable,” he added.
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Tax system not to improve without documentation of economy: Hafeez Shaikh
KARACHI: Dr. Abdul Hafeez Shaikh, Adviser to Prime Minister on Finance and Revenue, on Saturday said that taxation system will not be improved without documentation of economy.
He was addressing at a meeting with office bearers of Overseas Investors’ Chamber of Commerce and Industry (OICCI).
He said that achieving economic growth was not possible without generating tax revenue. He said trade community should not fear with the condition of Computerized National Identity Card (CNIC) because without documenting the economy tax system would not improve.
The adviser said that the prime minister was putting all his efforts to facilitate the business community with the realization that trade and business were backbone of the economy.
Shaikh said that the government had overcome the economic challenges. The government is giving around Rs250 billion subsidy to manufacturers and exporters.
In order to improve the taxation system of Federal Board of Revenue (FBR) the government is introducing large scale reforms.
He further said that the government was taken all those steps to strengthen the institutions.
Hafeez Shaikh said that the IMF had shown confidence on reform programs initiated by the government.
The government has not borrowed from the State Bank during past four months. Besides the government also reduced the current account deficit, he added.
He said that in order to facilitate the masses the government had not increased prices of petroleum products.
The adviser pointed out improvement in stock exchange due to measures of the government regarding confidence building of investors.
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Karachi Chamber urges PM to honor genuine taxpayers
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Monday urged Prime Minister Imran Khan to honor genuine taxpayers instead saying all the countrymen as tax thieves.
Chairman Businessmen Group & Former President Karachi Chamber of Commerce & Industry (KCCI) Siraj Kassam Teli and President KCCI Agha Shahab Ahmed Khan, while disagreeing to PM Imran Khan’s remarks wherein he accuses everyone for not paying taxes across the board, appealed to make public the city-wise tax collection so that everyone could know which city is paying what taxes and which isn’t and running away from the national obligation.
In a statement issued, Chairman BMG and President KCCI said that although there are gaps in the taxation system but that cannot be made the reason to call all the countrymen tax thieves hence, the Prime Minister Imran Khan may please amend his statement.
They said: “The Prime Minister talks a lot about Change and Justice but it is a matter of grave concern and a sheer injustice to the taxpayers when our Prime Minister claims that nobody wants to pay taxes. The loyal taxpayers contribute billions of rupees each year which are being utilized to run the government yet they (the taxpayers) are being discouraged as they stand at the same array where the tax thieves and evaders were standing.”
Referring to a press conference by Advisor Finance Hafeez Shaikh and Chairman FBR Shabbar Zaidi held to respond to Small Traders’ reservations along with a recent data of the FBR, they said that as per FBR statistics, the small traders of Karachi paid tax of Rs30 billion while the traders from Lahore paid a mere amount of just Rs567.7 million and the situation in other cities was much worse.
Hence, Chairman BMG and President KCCI urged the Prime Minister Imran Khan, Advisor Finance Hafeez Shaikh, Minister of State for Revenue Hammad Azhar and Chairman FBR Shabbar Zaidi to publicize the city-wise data of all other taxes including the Income Tax, Sales Tax, Custom Duty and Federal Excise Duty in detail so that the ground realities could be revealed.
“We believe that the actual contribution of Karachi, which is the economic hub of the country contributing 70 percent revenue to the national exchequer, has to be publicized without any excuse of being the port city with a precise breakup of tax collection from the ports and dry ports along with details of the imported items belonging to which city and the consignee, besides carrying detailed fragmented tax collection from the head offices of corporate entities and their branches located in all parts of the country which would surely present the actual city-wise contribution”, they suggested.
Siraj Teli and Agha Shahab further said, “We agree that many individuals and corporate entities from different areas of the country may not be paying their taxes to the level they should but that doesn’t mean that nobody was paying taxes. It is highly unfair to give such statement as it creates a false impression. Realistically, there are millions of individuals and corporate entities who are paying all their taxes. The FBR and Ministry of Finance should be told to get those individuals first who are paying zero tax instead of furthering squeezing the existing tax payers.”
They hoped that the Prime Minister Imran Khan would soon issues strict directives to the Ministry of Finance and the FBR to compile city-wise data of tax collection and the same will also be publicized at the earliest.
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Sales tax refund promises annoy value added textile industry
KARACHI: The value added textile industry has expressed its displeasure over government’s repeated promises of clearing sales tax refunds.
The government made promises for the past several months to clearing pending sales tax refunds but failed to honor, said Jawed Bilwani, Chief Coordinator of the Value Added Textile Export Sector said on Tuesday in a joint press conference at Pakistan Hosiery Manufacturers Association (PHMA) House.
He said that the value added industry was facing serious liquidity problems due to stuck up refunds.
The prime minister assured the business community to resolve the issue of refunds completely through a new mechanism. Besides, Hafeez Shaikh, Advisor to Prime Minister on Finance and Revenue and Syed Shabbar Zaidi, Chairman, Federal Board of Revenue (FBR) also promised the refunds would be issued when exporters would file their goods declarations.
Instead tall claims the situation has further aggravated, Bilwani said.
He said that around 40 percent of the industry was facing immense liquidity problems. “This resulted in closure of factories,” he added.
For the past pending sales tax refunds, the government issued bonds, which were never encahsed, he said.
For the past four months the government was repeatedly assuring to resolve the issue, he said, adding that nothing was done in this regard.
He said that on the one side the government was endeavoring to increase the exports but on the other side it was silent on the issue of refunds.
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FBR proposed imposing additional sales tax on failure to implement CNIC condition
KARACHI: SITE Association of Industry on Monday proposed the Federal Board of Revenue (FBR) to imposed additional sales tax as the government failed to implement condition of Computerized National Identity Card (CNIC).
Instead of disallowing proportionate input tax for sales made without CNICs, alternate is recommended for sales made without submission of CNIC to increase the further tax at 5 percent of sales till December 31, 2019, 7.5 percent of further sales till March 31, 2020 and further tax at 10 percent of sales till June 30, 2020.
The SITE Association of Industry proposed new formula to end the deadlock between Government and traders on the condition of production of CNIC on sales and purchase of goods by the Federal Board of Revenue.
Chairman of Taxation Committee of the Association Saud Mehmood has suggested that input tax inadmissibility against sales made without CNIC should be replaced with progressive increase in rate of further sales tax.
He said that the FBR has not been able to successfully implement the CNIC condition due to the complex nature of disallowing input against sales made without CNIC which is difficult for sellers as well.
Because of the complex nature of this condition, sales tax registered sellers have made CNIC submission the only option whereas legislation allows for sales without CNIC as well.
Saud further said that in order to make implementation of CNIC submission smooth, SITE Association of Industry strongly recommends that input tax inadmissibility be replaced with progressive increase in further tax. “Progressive increase in further tax will make the transition smooth. Moreover, it will be in line with the existing system of charging further tax of 3 percent of sales made to non-filers,” he added.
SITE Association of Industry believes in the documentation of the economy. When submission of CNIC is mandatory for availing a mobile connection then there is no reason to shy away from submitting CNIC for purchases above PKR 50,000/-.
“We feel that more than the requirement of CNIC, the sudden imposition is one of the causes of the stiff resistance being faced by FBR. A gradual and progressive implementation of further sales tax on sales without CNIC will make the whole process more palatable.”
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