Pkrevenue.com

Category: Trade & Industry

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

  • IMF assistance only option for economy: Shaikh Rasheed

    IMF assistance only option for economy: Shaikh Rasheed

    KARACHI: Sheikh Rasheed Ahmed, Federal Minister for Railways on Saturday said the economy is facing immense difficulties.

    “We are stuck in a lot of crises and it is a well-known fact that IMF conditions will be really stiff. I, as Minister, have been reiterating this since day one that we have no other option but to approach the IMF for assistance,” he said while addressing business community at Karachi Chamber of Commerce and Industry (KCCI).

    He also said that there will be no economic stability without the political stability.

    Highlighting the improved performance of Pakistan Railways (PR), the Minister said that PR has earned Rs4 billion more as compared to the earnings during the same period of previous year. “We have also provided three more container trains to the business community and the number of freight trains during Imran Khan’s has enhanced from just 8 to 14,” he added.

    He said that a total of 24 new trains have been initiated so far in which five categories have been defined for different types of passengers while the occupancy of Rehman Baba Train has reached 160 percent with improved earnings.

    “We have also initiated Jinnah Express and Green Line which will be followed by Sir Syed Express with a target to attract all five types of customers and our overall strategies have been very successful.”

    Referring to 1760km long ML-1 project from Karachi to Peshawar, the Minister said that in this regard, Prime Minister Imran Khan will be signing the agreement on 27th April 2019 which would result in laying of completely new double track from Karachi to Peshawar with fencing on both sides and a minimum speed of 160Kms. Work on this project will be completed in the next five years, he added.

    Commenting on Karachi Circular Railway Project, the Minister committed that as soon as the Sindh government signs agreement, approves the design and feasibility, Pakistan Railway will remove all encroachments, of which many of the commercial encroachments have already been removed, and hand over the track to Sindh government but the Sindh government has to work in this regard.

    “If KCR is not completed during our tenure, it will never be completed”, he opined, adding that it was a really essential project which has become part of CPEC now and the Gwadar port which is capable of docking 190 ships each day.

    Responding to a suggestion, he invited the business community to undertake joint venture for setting up setting up the proposed parking plaza on PR land at II Chundrigar Road but Pakistan Railways must continue to get its share regardless of whether the parking plaza becomes successful or not.

    Speaking on the occasion, Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli, while referring to Imran Khan’s last year’s visit on July 22 to Karachi to meet the business community just a couple of days before the general election, requested the Sheikh Rasheed to ask PM Imran Khan to honor all his commitments including his commitment to visit KCCI.

    He said, “during the said meeting, we suggested to remove all those individuals who are involved in wrongdoings and corruption. We cautioned that the corrupt bureaucracy will not allow Imran Khan to take remedial measures but these elements have to be pinpointed and sidelined while the honest officers must be brought forward at the helm of the affairs.”

    “However, except a few nominal changes done recently, no major change was witnessed in the FBR, NAB and FIA and the same old corrupt elements were given freehand, allowed to continue their wrongdoings and asked to make corrections”, he added.

    Referring to a letter sent to Prime Minister Imran Khan, Siraj Teli said that the Private Sector’s representatives, who work on the Boards of Public Sector Companies such as Karachi Port Trust (KPT), Pakistan International Airlines (PIA) and Civil Aviation Authority (CAA) etc., take/ endorse decisions purely on the basis of whatever information is provided to them at the Board Meeting of any particular Public Sector company and that information may not be correct or may be incomplete.

    “However, after a number of years when FIA or NAB find anything wrong in these public sector companies, they immediately start pursuing private sector representatives who have got nothing to do with day-to-day activities of the public sector companies yet they are accused and undergo extensive investigation and frequent summoning by NAB or FIA”, he added.

    He asked Sheikh Rasheed to request the Prime Minister to look into this matter and give immunity to representatives of private sector from such investigations. They should not even be contacted until and unless there is a solid proof of their direct involvement or they being beneficiaries. The Karachi Chamber will never support anyone who is found guilty of any misconduct”, he said, adding that the business community was really worried and fed up due to constant harassment by NAB, FIA and FBR which is not acceptable to at all.

    Commenting on the forthcoming Amnesty Scheme, Siraj Teli said that the previous amnesty was better but this amnesty scheme would become a failure due to lack of trust as those individuals who declared their assets in the previous amnesty scheme, were constantly being pursued and harassed by FBR, FIA and NAB. “Amnesty without protection and without dealing with the trust deficit would lead to failure”, he added.

    President KCCI Junaid Esmail Makda, in his welcome address, stated that Karachi was one of the world’s most populous city and one of the mega cities. Lamentably, it may be the only city of this size that doesn’t have a mass transit transport system now when surprisingly, it did have Karachi Circular Railway (KCR) in the past.

    He said that Karachi produces about 30 percent of the manufactured good, handles 95 percent of foreign trade and contributes more than 70 percent to the national revenue yet it remains deprived of basic facilities including KCR.

  • FPCCI recommends single digit sales tax rate

    FPCCI recommends single digit sales tax rate

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed reducing sales tax to single digit from existing 17 percent. In its pre-budget conference on Wednesday, the apex trade body present its set of proposals for budget 2019/2020.

    (more…)
  • Second phase of Pak-China FTA not at cost of local industry: FPCCI

    Second phase of Pak-China FTA not at cost of local industry: FPCCI

    KARACHI: Federation of Chambers of Commerce and Industry (FPCCI) has advised the government that the second phase of Pak-China Free Trade Agreement (FTA) should not be at the cost of local industry.

    FPCCI President Engr. Daroo Khan Achakzai, while chairing session on Pak-China FTA, advised that Pakistan may enter into second phase of FTA with China but not at cost of closing our local industries and adversely affecting the economy at large.

    He said first phase had enhanced Pakistan’s trade deficit with China to US$ 17 billion.

    President FPCCI further added that Pakistan has already liberalized 60 percent of its trade with China, suggesting that Ministry of Commerce to take policy reforms for elimination of under-invoicing and settle to have agreements with China on removal of Sanitary and phytosanitary measures (SPS), Technical Barriers to Trade (TBT) and barriers other than tariffs.

    During the interactive session, the participants expressed their serious concern over the signing of second phase of CPFTA without ensuring the elimination of weaknesses of first phase of CPFTA.

    The participants said that considering the stances of several sub sectors industries like seafood, vegetable oil and leather products should also be considered to have zero rated export entry status like ASEAN so that enhancement of exports are contributed by these existing sub sectors of industries with available potential further to grow with the passage of time.

    The participants also considered to protect the domestic industries of Chemical, steel, leather, plastic and poultry, in specific industries in SME in such a way that the effects of FTA do not adversely affect the present industry, already hostage of domestic supply constraints.

    They said that time space, tariff reducing modalities, elimination of non tariff barriers should be rationalized in FTA in such a manner that circumstances surrounding the economies of FTA partners is fundamental to negotiate on non reciprocity basis due to huge difference in economic development levels of FTA partners.

    The participants of the meeting also showed concern on non-implementation of Electronic Data Exchange, earlier agreed between the Customs of both side countries.

    The participants also showed further concern on non documented data of at least 36 percent on account of reasons inclusive of continued reported under invoicing, which not only is making losses in custom collections but as well as is against fair practices of trade leading to unhealthy competition.

    The participants also stressed on the negotiation to focus negotiating on win-win concluded safeguard measures, transfer of technology and required skills for smooth operation of negotiated FTA.

    Moreover, the participants underlined the need of direct market access of Pakistan’s products in China; which presently allows import from Pakistan for sales in Chinese market through vendors, which have registered history of on rising trade disputes.

    The existing trade through such intermediaries creates the burden of not only apprehensions but also generates non resolved disputes arising of such mode trades in between Pakistan and China.

    The participants also stated that since already 60 percent trade of Pakistan from China is being conducted in major at Zero percent and in minor in between 0 to 5 percent, therefore further liberalization in these zero and 0-5 categories on import of intermediary and finished goods may not be preferred to be part of FTA.

    The participant feared that economic growth of Pakistan closing to 3.7 percent during this year will further suffer due to addition of further trade liberalization and small and medium vulnerable SMEs may add to the closure and reduction of industrial economy of Pakistan.

    The country needs employment as fundamental to the requirement of law and order, which may be assured to be preserved during negotiation of FTA as liberalization also costs employments for weaker economies.

    The participants also suggested that China should also give concrete plan of relocating its labor intensive industries in SEZs of Pakistan and include Pakistan in the supply chain of its finish goods exports from Pakistan, example of which are countries like Vietnam & Cambodia doing so.

    The participants also strongly suggested that Mutually Recognition Agreement for quality and quarantine inspections and standards be adopted to include meat and agriculture produce exports, which has identified potential of exports.

    The meeting concluded that the second phase of CPFTA should be deferred for some period to analyze the benefits and losses and further analyze as what exactly went wrong in first phase negotiations concluding to development of huge trade deficit with China.

    Pakistan should ask China to facilitate entry of significant export share from Pakistan, which demand of stakeholders in Pakistan appears to be realistic in view of rising deficit since first phase from 2.9 Billion USD to over 17 Billion USD.

    Further this deficit number on exchange of electronic data may cross 20 Billion USD. The outcome of such negotiation should also take care of issues of balance of payments, which are also recognized by the multilateral negotiating mechanisms.

    The participants also asked for free access and publication of negotiating draft with GoP on all proposed matrix and reasons thereof being considered to be negotiated in second phase of CPFTA.

    The proposed draft on negotiation be provided with reasons of endeavoring win-win situation available with GoP negotiators in respect of phase-II negotiation of FTA with China with complete analysis as how the present and future of industries will be protected by fiscal incentives, through tariff rationalization and other measures deem necessary to keep the country further falling from the declining GDP growth.

  • Ministry assures softening labeling conditions on imported consignments till June 30

    Ministry assures softening labeling conditions on imported consignments till June 30

    In a significant relief to the industry, the government has agreed to relax labeling conditions until the end of June 2019 to expedite the clearance of consignments stuck at ports. This decision was confirmed by industry sources on Wednesday.

    (more…)
  • FPCCI criticizes increase in POL product prices

    FPCCI criticizes increase in POL product prices

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday criticized the increase in prices of petroleum products for the month of April 2019.

    In a statement issued by the FPCCI, its president Engr. Daroo Khan Achakzai had shown serious concern on exorbitant increase of Rs6 per litre in the prices of petrol and diesel with effect from April 01, 2019.

    He said: “ It will have a multiplier effect on almost all the business activities including cost of transportation – within and inter-city – of raw materials and consumer goods thus further escalating the cost of production of industrial goods and spurring inflationary trend which at present is already 8.2 percent.”

    The FPCCI Chief elaborated that the price of all the food (fruits and vegetables) and kitchen items; construction material; fertilizers; imported goods etc., would be dearer as these goods are supplied to the different cities of the country through diesel based vehicles.

    The FPCCI chief recalled that the price of crude oil in international market on August 2018, when the PTI government assumed the charge, was US $ 75 / barrel which up to March 28, 2019 was further declined to US $ 66.67 / barrel viz 7 percent – 8 percent.

    “However, instead of passing benefits to the masses, government had not responded to it accordingly and showed reluctance to provide relief to the consumers proportionately”, he added.

    He argued that the actual price of petrol is Rs. 58.94 / litre whereas it is supplied to the consumers @ Rs. 98.89 / litre out of which about Rs. 40 / litre is earned by the government, dealers and distributors.

    Supported by facts and figures Engr. Daroo Khan Achakzai argued, “About 90 percent of total consumption of POL products are jointly consumed by the transport sector and power sector, wherein, almost 65 percent electricity is generated by the thermal while fuel (furnace oil and diesel) consumption for thermal power generation is 52 percent”.

    He therefore, underscored the need to translate these cheaper prices in electricity tariff which would have a positive multiplier effect on cost of operation / production of industrial activities like cement, textile, paint chemical sectors etc. and ultimately contribute in promotion of exports and reduction in inflation.

    This will also help in shifting the burden from CNG consumption in transport to petrol and making it available to the industrial sector particularly in Punjab which is suffering from acute shortage of gas in winter season.

  • Goods transporters reject increase in POL product prices

    Goods transporters reject increase in POL product prices

    Goods transporters in Karachi have expressed strong opposition to the recent hike in petroleum product prices, announcing a corresponding 10 percent increase in transportation fares.

    (more…)
  • FPCCI to draft proposals for new tax amnesty scheme

    FPCCI to draft proposals for new tax amnesty scheme

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has decided to finalize draft proposals for new tax amnesty scheme.

    FPCCI President Engr. Daroo Khan Achakzai called a meeting of stakeholders on Tuesday to discuss the proposals for New Tax Amnesty Scheme 2019 at Federation House, Karachi, Regional office Lahore and Capital Office Islamabad via video link.

    The meeting decided that a committee will be formed consisting of experts which will be headed by President FPCCI for the finalization of draft of new amnesty scheme.

    The meeting was attended by S. M. Muneer, former President FPCCI, Iftikhar Ali Malik, Sr. Vice President SAARC-CCI & Former President FPCCI, Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI, all Vice Presidents of FPCCI and the representatives of different chambers and associations.

    While welcoming the participants of meeting, Engr. Daroo Khan Achakzai informed the house about the outcomes of last amnesty schemes and focused on the need of new amnesty scheme for the documentation of economy and enhancement of tax revenue.

    He also highlighted his discussion with the Prime Minister of Pakistan who showed his desire to launch another amnesty scheme and advised President FPCCI to formulate recommendations in consultation with stakeholders with the aim to document the economy by declaring of foreign and domestic assets.

    In his remarks, Iftikhar Ali Malik emphasized to create awareness about converting the black money into white money, to increase the confidence of tax payer, incentives for the SMEs, exports warehouses, agriculture sector, removal of piracy, mis-declaration and smuggling.

    S. M. Muneer underlined the need of revival of last amnesty scheme with some necessary amendments announced in April 2018 for three months.

    Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI also stressed on the same tax rates of last amnesty scheme 2018 and continuation of Foreign Exchange Reforms Act which allowed opening of account, transactions and remittance facility in foreign currency.

    During the meeting, the stakeholders suggested that the new scheme should be based on same rules, regulation and tax rates 2 percent, 3 percent and 5 percent announced in last amnesty scheme in 2018.

    The stakeholders also stressed on the strict monitoring of tax collection system, measures of discretionary power to conduct audit of tax filers, removal of harassment and ease of documentation.

    They argued that the tax collection system in Pakistan is very complicated which needs to be reviewed as per global requirement.

    Moreover, the tax amnesty scheme should also boost industrialization and create new investment in other than real estate sector of economy and improve cost/ease of doing business.

    The house also advocated imposing of taxes on agriculture and other sectors which are currently not under tax net instead of putting extra burden on minuscule number of existing tax payers.

    They also suggested to announce incentives for filer/ taxpayers and should announce clean chit if taxpayers pay 2 percent or 5 percent additional tax and this scheme should be for three to five years.

  • Eatery owners knowingly ignore hygiene requirements: Sindh Food Authority

    Eatery owners knowingly ignore hygiene requirements: Sindh Food Authority

    KARACHI: Eatery owners are well aware about their shortcomings yet they ignore hygiene requirements and compromise with public health, Abrar Ahmed Sheikh, Director Operations, Sindh Food Authority (SFA) said on Tuesday.

    Talking at Karachi Chamber of Commerce and Industry (KCCI), the director urged the owners of all eateries, restaurants, bakeries and other food-related businesses to improve the hygienic conditions in their business premises and provide safe & healthy food to the public otherwise strict action will continue to take place and no compromise will be made over the quality and hygienic conditions.

    Abrar Sheikh said: “It is impossible that the eatery owners are not aware of the shortcomings. They know what exactly is going wrong and they simply cannot deny it yet they ignore it, do not take remedial measures and continue to play with lives of the masses by providing unhygienic and hazardous food which cannot be tolerated.”

    President KCCI Junaid Esmail Makda, Senior Vice President Khurram Shahzad, Vice President Asif Sheikh Javaid, Former President AQ Khalil, Former Vice President Agha Shahab Ahmed Khan, Chairman All Pakistan Restaurants Association Shaukat Ali Omerson, Managing Committee members and a large number of businessmen associated with food-related businesses also attended the meeting.

    Director Operations SFA further stated that SFA works under a transparent mechanism in which the working parameters for food technologists and food safety officers have been defined in such a manner that leave absolutely no room for any kind of under the table deal therefore, all businessmen associated with food businesses should stop thinking about bribing the officers and must rectify their shortcomings, improve the hygienic conditions and provide healthy food to the masses otherwise they will be taken to task by the Authority.

    He explained that SFA never seals any business premises immediately after identifying hygiene and food quality related shortcomings as the authority initially issues an improvement notice and also raises awareness about the hygiene and food quality requirements, which is followed by a warning notice and penalty if the eatery owners fail to improve.

    Subsequently, if the eatery owners continue to avoid taking corrective steps even after the imposition of penalty and warning notice, it leaves no other option for SFA but to seal the business premises under Section 45 of CrPC that results in temporary suspension of commercial activities until all the SFA requirements are complied.

    Referring to President KCCI’s remarks, Director SFA said, “We also want to promote the ease of doing business but no compromise will made over the food quality and hygienic conditions. It is high time to change which has become inevitable now.

    “We firmly believe in consultation rather than taking decisions in isolation, which is the basic reason why SFA carries out awareness drives prior to issuing any warning notice or imposing penalty.”

    He further informed that work was in progress at SFA for setting up a world-class state-of-the-art laboratory where the facility to carry out all forms of tests and verifications will be available which will be acceptable globally.

    Vegetables being cultivated by using the sewage water cannot be tolerated which was a very serious issue therefore, the SFA has decided to initiate a massive drive in which all such productions will be completely bulldozed and strategies will be devised to make that no sewage water is used in future for cultivation of vegetables, he added.

    He stressed that both institutions will have to work collectively to create a healthier society. “We need KCCI’s support otherwise we cannot move forward”, he added.

    Speaking on the occasion, President KCCI Junaid Esmail Makda stated that the Karachi Chamber has been successfully playing the role of bridge between the business community and SFA therefore, any grievance being faced by businessmen be brought to Chamber’s notice so that the issue could be amicably resolved.

    “The authorities at Sindh Food Authority must also work closely with KCCI and carry out all its operation in consultation with KCCI in order to create an enabling business environment”, he added.

    He was of the opinion that prior to taken any action, SFA must hold frequent awareness sessions and make people aware of the required hygienic conditions and food quality as it takes many years to build a brand name which is destroyed within minutes as it has been observed that all the activities being carried out by SFA were being widely broadcasted in the media.

    He also underscored the need to adopt uniform policies by all the food authorities across Pakistan as it has been observed that these policies vary in Sindh, Punjab and KPK, creating a confusing situation for businessmen.

    Referring to SFA operation largely confined to Karachi only, he said that the department should expand its operations to other cities of Sindh as well where hundreds of people were suffering terribly due to unhygienic and low-quality food stuff.

  • Printing details, ingredients on imported goods: KCCI demands reviewing notification implementation date

    Printing details, ingredients on imported goods: KCCI demands reviewing notification implementation date

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has demanded the commerce ministry to review the date of implementation of a notification regarding printing of details and ingredients on the imported goods.

    In a statement on Monday KCCI President Junaid Esmail Makda requested Advisor to PM for Commerce Abdul Razak Dawood to instruct relevant department to inform all concerned about the implementation date of SRO 237(I)/2019 i.e. July 1, 2019 to prevent blockage of clearance of pending consignments and direct the Ministry of Commerce & Textile (Commerce Division) to issue necessary amendment in the SRO stating the effective date as 1st July’2019.

    In a statement issued, President KCCI stated that SRO 237, which has been finalized and implemented without any consultation with the business community and other stakeholders, was not acceptable in its present state and it has to be reviewed in consultation with all stakeholders.

    Referring to a letter sent to PM’s Advisor and the discussions held with Chairman Businessmen Group & Former President KCCI Siraj Kassam Teli about the implementation of SRO 237(I)/ 2019 dated February 19, 2019, President KCCI said that although the PM’s Advisor clarified that the said SRO will be implemented from July 1, 2019 but no notification carrying the exact date of implementation has been issued so far which has created a confusing situation and resulted in blockade of containers at the ports which is totally contrary to government’s resolve towards the ease of doing business.

    He demanded that the losses suffered by importers on account of demurrage and detention due to the confusion must be waived off to provide some relief to perturbed traders who have been constantly approaching KCCI to seek assistance.

    “It is a matter of grave concern that Customs Authorities remain confined to SRO 237 and were not paying any attention to the hardships being faced by traders hence, the Ministry of Commerce must issue the clarification about the implementation date so that SRO 237 is not misused to create problems for traders”, he added.

    He said that since the effective date of 1st July’2019 was not mentioned in the SRO.237, in legal terms date of issue has been interpreted as the effective date, and customs officials at various levels have held the clearance of cargo on pretext of seeking clarification from FBR which led to delays and resulted in raising the costs of demurrage and detention to the importers.

    He was of the opinion that the implementation of said SRO from July 1, 2019 has provided sufficient time period of more than three months to foreign manufacturers of food stuffs to comply with recent amendments in the Import Policy Order 2016.

    According to SRO 237, it has been made mandatory that the ingredients and details of the imported food products (e.g. nutritional facts, usage instructions etc.) shall be printed in Urdu and English languages on consumer packaging while the logo of Halal certification body shall also be printed on the consumer packaging and the labelling shall not be in the form of a sticker, overprinting, stamp or scratched label.

    Moreover, the importers have been further advised that the shipment shall be accompanied by a Halal Certificate issued by Halal Certification Body, accredited with an Accrediting Body which is a member of International Halal Accreditation Forum (IHAF) or Standard Metrology Institute for Islamic Countries.

  • FPCCI welcomes FBR focal person appointment

    FPCCI welcomes FBR focal person appointment

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the appointment of focal person by Federal Board of Revenue (FBR) for resolving issues related to industry.

    In a statement on Friday FPCCI praised appointment of FBR focal person, Engr. Daroo Khan Achakzai
    Engr. Daroo Khan Achakzai, President FPCCI on behalf of Federation of Pakistan chamber of commerce & industry, praised Chairman FBR Jahanzeb Khan to appoint Ambreen Iftikhar Director Program office as focal person to solve any issue faced by business community by FBR relevant offices.

    Engr. Daroo Khan Achakzai said, FPCCI has requested Chairman FBR on his recent visit to Federation House to appoint a focal person to deal with harassment of the business community, he thanked

    Chairman for his prompt action as per his announcement made at the federation house.
    He added that, such measures will bring business community closer to FBR for better working relationship.

    Engr. Daroo Khan Achakzai also assured Chairman FBR their full cooperation & support.