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Category: Trade & Industry

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  • K-Electric, NIP sign MoU for enhancing supply for BQIP

    K-Electric, NIP sign MoU for enhancing supply for BQIP

    KARACHI: K-Electric and National Industrial Park (NIP) on Wednesday signed an MoU to ensure meeting electricity demands at Bin Qasim Industrial Park (BQIP).

    Under the MoU, KE will immediately start work on laying four 11KV feeder lines of 4-4.5 MW for the industrial units under construction and will ensure supply of needed electricity before they go into full production.

    A statement said that the current government is focusing on creating enabling environment for the businesses to grow and contribute in the economic development in the country.

    Special drive has been started by the Prime Minister’s Advisor on Commerce, Textile, Industries & Production and Investment Abdul Razak Dawood to address the chronic issues in the Industrial Zones of the country so that the business could grow and flourish in these zones.

    Bin Qasim Industrial Park (BQIP) is a 950 Acre Special Economic Zone situated on the Pakistan Steel land.

    It is a project of National industrial Parks Development and Management Company, a wholly-owned entity of Ministry of Industries & Production, Government of Pakistan. Currently, BQIP has only one 11KV feeder line of 4MW load capacity coming from K-Electric Pinri Grid station, which is currently unable to cater the needs of growing number of industrial units.

    Lately, four of the zone enterprises which are expected to come into full production capacity in the next 2-3 months showed their serious concerns on the inability of the Special Economic Zone to fulfill their immediate electricity needs of approximately 17MW.

    At the direction of the Advisor, Mr. Dawood KE authorities were engaged to find an immediate solution. NIP and KE have jointly come up with a short and long-term solutions to meet the electricity needs of the BQIP (SEZ) enterprises.

    Investors of the zone enterprises were also present at the signing ceremony and expressed their profound gratitude to Razak Dawood for his timely intervention and support to make it happen as it’s in larger interest of the country.

    They viewed that such measures are expected to attract more investment in the industrial Zones of the country.

  • Export sector complains non-compliance by power utilities

    Export sector complains non-compliance by power utilities

    KARACHI – The zero-rated textile export sector in Pakistan has raised concerns over the non-compliance of power utility companies in providing subsidized rates, according to a letter addressed to Abdul Razak Dawood, the Adviser to the Prime Minister on Commerce and Textile Industry.

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  • Steps afoot to rationalize tax regime: Asad Umar

    Steps afoot to rationalize tax regime: Asad Umar

    Finance Minister Asad Umar reiterated the government’s commitment to fostering a more supportive environment for taxpayers on Tuesday, announcing steps toward the rationalization of the tax regime.

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  • Chinese delegation visits FPCCI to explore business opportunities

    Chinese delegation visits FPCCI to explore business opportunities

    KARACHI – In a bid to foster stronger economic ties between Pakistan and China, a delegation of Chinese businessmen paid a visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), as per an official statement released on Saturday.

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  • Production activities halt on gas shortage: FPCCI

    Production activities halt on gas shortage: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that manufacturing activities have been halted due to gas shortage in the country.

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  • Textile mills demand uninterrupted gas supply for achieving export target

    Textile mills demand uninterrupted gas supply for achieving export target

    KARACHI: Textile mills have demanded federal and provincial government to ensure uninterrupted gas supply for achieving exports target.

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  • KCCI shows concerns over gas shutdown to industries

    KCCI shows concerns over gas shutdown to industries

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has expressed serious concerns over abrupt shutdown of gas supply to industries and said that such closure caused immense losses to the tune of billions of rupees.

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  • 100pc foreign shareholding allowed in legal entities incorporated in Pakistan: Razak Dawood

    100pc foreign shareholding allowed in legal entities incorporated in Pakistan: Razak Dawood

    KARACHI: Abdul Razak Dawood, Advisor to the Prime Minister on Commerce, has said that 100 percent foreign shareholding remained allowed in legal entities incorporated in Pakistan.

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  • Tighter monetary policy chokes investment in Pakistan

    Tighter monetary policy chokes investment in Pakistan

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday said that the tighter monetary policy stance by the central bank has strangulated the investment in the country.

    In a statement Eng. Daroo Khan Achakzai, President, FPCCI showed his serious concern over the hiking of policy rate by another 25 basis points in last two months in view of prevailing inflation, devaluation of currency and twin deficit in Pakistan.

    He said: “SBP continues to operate a tight monetary policy and increased policy rate by 4.50 percent in last one year despite the clear evidences that this policy strangulates investment in Pakistan and hampered the economic activities.”

    The statistics clearly showing that investment to GDP in Pakistan is very lower i.e. 16.4 percent of GDP compared to 22.5 percent in 2007 while in India the investment to GDP ratio is 30 percent and in Bangladesh it is 31 percent.

    He termed the contraction in monetary policy as an anti-investment policy which has declined the economic activities in the first six month of the current fiscal year due to declining of large scale manufacturing growth particularly textile industry, food-beverages, petroleum, iron, pharmaceutical, electronics and wood products etc.

    He indicated that the 10.5 percent policy rate is very high compared to regional economies like India 6.5 percent, China 4.35 percent, Sri Lanka 9.0 percent, Thailand 1.75 percent, Indonesia 6.5 percent, Malaysia 3.25 percent etc.

    He said that the present inflation rate is 6.0 percent which is high compared to last year same period 3.8 percent; but this inflation is cost push inflation which cannot be controlled through demand management policies.

    The major cause of rising inflation in the country is high cost of doing business particularly utility prices, increase in the prices of industrial inputs and shortage of essential items of daily necessity.

    The government should focus to increase the demand for credit by declining interest rates and make easy access to finance.

    “Globally, the aim of monetary policy is to protect the value of the currency in co-ordination with the fiscal policy in order to achieve the objectives of macro-economic stability with constraining inflation and expansion of private sector investment,” he added.

    The President FPCCI further stated that the government should create its own fiscal space for financing its expenditures instead of borrowing from SBP and other institutions.

    During the first half year, there was an expansion in private sector credit, but is largely attributed to high cost of raw materials (cotton, petroleum products, etc), continuation of capacity expansion in power and construction-allied industries.

    This private sector credit should be expanded to other industries which are showing declining growth trend, he suggested.

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  • Foreign investors’ Pakistan business confidence index decline by 26 percent

    Foreign investors’ Pakistan business confidence index decline by 26 percent

    KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) on Friday released results of its Business Confidence Index (BCI) Survey – Wave 17, which shows that the overall Business Confidence in Pakistan stands at negative 12 percent, a 26 percent decline from the 14 percent positive recorded in the Wave 16 results announced in May last year.

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