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Tag: Federation of Pakistan Chambers of Commerce and Industry

  • FBR to install more scanners for customs clearance

    FBR to install more scanners for customs clearance

    KARACHI: The Federal Board of Revenue (FBR) will add more scanners for digitization of customs clearance, said Wajid Ali, Chief Collector, MCC Appraisement (South) Karachi.

    Addressing at Federation of Pakistan Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday, he said that more container scanners will added on a regular basis and customs is moving towards best-practices in digitalization; however, accepted that more work needs to be done to facilitate the traders.

    READ MORE: FBR promotes Customs officers to BS-19

    Agreeing to the top demand of FPCCI, Wajid Ali promised that the online complaint mechanism will be launched at Federation House to address all the issues, concerns and complaints of the business community pertaining to customs.

    It will not only promote the liaison between the customs department and the business community; but, will also expedite the complaints resolution process.

    The Chief Collector informed the session that Input/Output Co-efficient Organization (IOCO) has determined the quotas for the erstwhile FATA and PATA region; hence, its misuse will be eliminated.

    He also committed that refunds will be swiftly processed to facilitate the traders. He added that National Single Window (NSW) will contain HS Codes in 12 digits.

    READ MORE: FBR drafts ID evidence rules to subscribe Pakistan Single Window

    Wajid Ali has asked FPCCI to propose the inclusion of its representative into the classification committee and apprised that Alternative Dispute Resolution Committee (ADRC) will also be refreshed.

    He also welcomed the recommendations of appointing a focal person for FPCCI for the greater good of business community; more proactive 90-day advanced rulings and effective implementation of protections covered under SRO 598 to already issued Bill of Lading and Letter of Credit.

    Earlier, Irfan Iqbal Sheikh, President FPCCI, discussed the issues and anomalies endured by the business community with top customs officials in a detailed session at Federation House.

    He enlisted that lack of regulation of container terminals; misuse of erstwhile FATA and PATA exemptions; delay in refunds processing; unfair demurrages charges; insufficient investment into digitalization & container scanners; inadequate diversification in HS and PCT Codes; overlooking cascading principle on raw materials and irregular consultative process with the trading community’s stakeholders are the top impediments in the smooth functioning of the customs operations.

    READ MORE: Trade Information Portal of Pakistan

    Sheikh demanded formation of a regulatory authority for container terminals for a better working environment between traders and container terminals.

    He also expressed his profound concerns over misuse of erstwhile FATA and PATA exemptions as the phenomenon has disturbed the even-playing-field.

    Sheikh also expressed his dismay over paying technology upgradation and container scanner charges since the year 2005; but, no wide-scale upgradation has taken place as yet. He also called upon customs authorities to adopt 16-digit HS Codes to cater to the diverse imports.

    Engr. M. A. Jabbar, Vice President FPCCI, pointed out that tariff rationalization should be an ongoing process to adapt to the ever-changing trade & industry environment and proposed that member policy of FBR should keep consulting the stakeholders.

    READ MORE: PSW to link 27 banks for trade facilitation

    Shabbir Hassan Mansha, VP FPCCI, demanded a focal person for FPCCI and also apprised the session that the business community faces delays in refunds as the pay orders are encashed without informing the traders; and, critical working capital is blocked due to the practice.

    Saqib Fayyaz Maggo, Convener Customs FPCCI, highlighted the lack of uniformity in the disposal of cases under Sections 81, 25A, 25D; on top of the excessive adjudication cases and ever-increasing demurrages charges.

  • FPCCI demands CNIC condition withdrawal

    FPCCI demands CNIC condition withdrawal

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded the authorities to withdraw CNIC condition on transactions.

    FPCCI president Irfan Iqbal Sheikh categorically demanded that CNIC Condition needs to be withdrawn in the upcoming Federal Budget 2022 – 23 and the Finance Act 2022 for being counterproductive as it has failed to generate more taxes.

    READ MORE: FBR urged to wave further tax on providing CNIC number

    The CNIC condition has given a rise to the use of flying invoices and fake documentation.

    Nowhere in the world a buyer is asked to submit their NIC while making a purchase and the conditionality defies every administrative, regulatory, operational, commercial and economic sense, he added.

    Irfan Iqbal Sheikh maintained that introduction of CNIC condition was merely a part of political sloganeering at the cost of economy and now the same vested interests are propagating for its continuation; whereas, they have no understanding of the ground realities of business, industry and trade.

    READ MORE: Tax exemption sought for plant, machinery import

    Irfan Iqbal Sheikh added that FPCCI has also briefed Miftah Ismail, Federal Minister for Finance & Revenue, on the issue and how it is hampering the economic and commercial activities in the country.

    FPCCI Chief explained that this condition negatively affects the production and market sales of the businesses in Pakistan. He recalled that Chairman FBR visiting FPCCI did concede that due to the condition of CNIC there has been a drop in sales tax collection, during his visit in the year 2021.

    READ MORE: Proposed list of higher withholding tax rates for non-filers

    President FPCCI has added that the only workable solution to generate more taxes is to present a business-friendly and pro-growth budget in consultation with the stakeholders, i.e. businessmen, traders and industrialists.

    Irfan Iqbal Sheikh has reiterated, as President of the apex body, his resolve to play his mandated role of creating bridges and promoting cooperation between the business community and the government &its regulators from the platform of FPCCI.

    READ MORE: PSX demands slashing CGT rates on disposal of shares

  • FPCCI suggests amnesty for cryptocurrency declaration

    FPCCI suggests amnesty for cryptocurrency declaration

    KARACHI: Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has recommended the government to launch an amnesty scheme of asset declaration for cryptocurrencies.

    The FPCCI, which is the apex trade body of the country, in a letter to Prime Minister Shahbaz Sharif suggested measures to improve foreign exchange reserves.

    READ MORE: FPCCI protests over advisory council formation

    It said: “Investments in cryptocurrencies started with speculative gaming but in recent years have grown into humongous sizes. It is imperative for government authorities to first launch a one-time asset declaration scheme and devise a regulatory framework for future transactions.”

    Capital gain taxes, similar to stock market investments, should also be introduced which will provide an additional source of tax revenues for the country.

    READ MORE: FPCCI demands reducing income tax slabs to five

    The FPCCI suggested a mechanism for the proposed amnesty scheme, which included:

    i. Encashment of cryptocurrencies in Pakistan and converting the foreign exchange into the Pakistani rupee may be allowed with no tax.

    ii. Encashment of cryptocurrencies in Pakistan and held as deposits in foreign exchange accounts Pakistan may be allowed with a 5 per cent tax.

    iii. Encashment of cryptocurrencies in Pakistan and held as deposits in Roshan Digital accounts may be allowed with 10 per cent tax for non-resident Pakistani nationals/dual nationals.

    READ MORE: Tax slabs reduction may be considered: FBR chairman

    The apex trade body also advised the government to launch amnesty scheme to deposit dollars in local banks.

    It said that Pakistan’s total foreign exchange reserves have been depleting significantly since December 2021.

    The liquid forex reserves have reached the lowest level of US$ 17.01 billion in April 2022 since June 2020 (on weekly basis).

    READ MORE: High interest rate to destroy economy: FPCCI

    The reserves held by SBP are only enough to bear the imports bill for only two more months7. Increasing current account deficit and debt repayments (including repayment of the US$ 2.4 billion loan facility given by China) have eroded reserves significantly.

    The government should launch an incentive scheme to channelize dollar holdings from lockers and personal safes into bank accounts.

    The government may exempt such deposits from any taxes if these have not been declared earlier in tax returns which will be held in local accounts for at least one year.

  • FPCCI protests over advisory council formation

    FPCCI protests over advisory council formation

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly protested over no consultation of industry in formation of economic advisory council by the new government.

    In a statement on Friday, FPCCI President Irfan Iqbal Sheikhhas expressed his shock over the formation of Economic Advisory Council under the leadership of Prime Minister Mian Shehbaz Sharif without consulting the business, industry and trade community of Pakistan.

    READ MORE: FPCCI demands reducing income tax slabs to five

    “We have also not given a representation in the council; and, it is counterproductive – to say the least,” he added.

    The FPCCI is the apex trade body of the country and represents chamber of commerce and trade associations across the country.

    Irfan Iqbal Sheikh maintained that FPCCI is the apex chamber of the country and its representation would provide the able and timely assistance to the Prime Minister and his economic team in the matters of budget-making; taxation and tariffs; governance & administrative reforms; rapid industrialization; textiles and allied industries; promotion of information and communication technologies; EPZs and SEZs; export growth & import substitution; rupee-dollar parity and SMEs.

    READ MORE: Tax slabs reduction may be considered: FBR chairman

    FPCCI President noted with concern that current account deficit (CAD) will be close to $20 billion, which is well above 5 percent of GDP; inflation has crossed 12 percent and heading towards 15 percent by the year end; trade deficit has crossed $35 billion in the nine months of July – March; KIBOR is 14.10 percent after 13 years and 6-month treasury bills at 14.99 percent after 22 years.

    “Interestingly, this is happening in spite of record proceeds from exports, remittances and taxes,” he added.

    READ MORE: High interest rate to destroy economy: FPCCI

    While proposing the imposition of an economic emergency a few days back, FPCCI President has also expressed his willingness to engage with the government in a productive consultative process to take on the economic challenges collectively in the broader national interest.

    However, Irfan Iqbal Sheikh has reiterated his stance that policies should not be announced in a vacuum without consulting the business, industry and trade community – as they are the real stakeholders in the economy.

    READ MORE: Political unrest dents foreign investors’ confidence: Nisar

  • FPCCI demands reducing income tax slabs to five

    FPCCI demands reducing income tax slabs to five

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday urged the government to reduce income tax slab to 5 – 7 from 11 slabs.

    FPCCI President Irfan Iqbal Sheikh proposed the simplification of personal income tax slabs down to 5 – 7 from the current 11 slabs. Interestingly, IMF has also recommended the same and can add up to Rs200 billion to the tax collection in a couple of years.

    READ MORE: Tax slabs reduction may be considered: FBR chairman

    FPCCI president said that the economic and business environment has reached a point where the business community finds the demand of imposing an economic emergency justifiable to put an end to the economic uncertainty. He added that businesses cannot operate profitably under such harsh and unfavorable conditions.

    Irfan Iqbal Sheikh emphasized that the policy rate must be aggressively brought down to 7 percent from its current level of 12.25 percent to make access to finance affordable for the private sector to keep the economic activities afloat.

    READ MORE: High interest rate to destroy economy: FPCCI

    He also noted that the step will bring down the short-term debt servicing of the government by Rs300 billion; and, provide breathing space to the government for the better fiscal management.

    Irfan Iqbal Sheikh noted with concern that the budgetary deficit is also increasing due to the incessantly loss-making State-Owned Enterprises (SOEs) and now it is absolutely imperative to reform and restructure them decisively; as their share in budgetary deficit has reached to 23 percent.

    READ MORE: Political unrest dents foreign investors’ confidence: Nisar

    He also called for an increase in FED on cigarettes and carbonated drinks to serve the dual purpose of generating revenues and protecting the general public in general and the workforce in particular from health hazards that have been unleashed on them by smoking and diabetes-causing sweetened drinks. He added that if FED is raised on cigarettes to 70 percent, Pakistan can generate up to Rs. 240 billion additional revenues.

    FPCCI President expressed his willingness to engage with the government in a consultative process to take on the economic challenges collectively in the broader national interest. However, he reiterated his stance that policies should not be announced in a vacuum without consulting the business, industry and trade community – as they are the real stakeholders.

    READ MORE: FPCCI proposes charter of economy to new government

    Additionally, he called for a pro-business federal budget 2022 – 23; enabling the private sector to invest in the economy, set up new industry, increase exports on an expedited rate, generate employment and contribute towards revenue collection in a healthy manner.

  • FPCCI proposes charter of economy to new government

    FPCCI proposes charter of economy to new government

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday welcomed the new government and proposed a charter of economy to forge an unflinching commitment towards economic growth.

    According to a statement issued, Irfan Iqbal Sheikh, President FPCCI, welcomed and felicitated the formation of new government and its cabinet. He said that the business community was profoundly concerned over the vacuum in the federal executive structure; which has now been taken care of after the assigning of major portfolios across the federal ministries.

    READ MORE: High interest rate to destroy economy: FPCCI

    Sheikh proposed a non-political, inclusive, sustainable and legally-binding Charter of Economy to forge an across the board contract and unflinching commitment towards economic growth, development and equality. He said that the aforementioned charter should encompass all sectors of the economy and all segments of the society. Let’s work together for a prosperous, egalitarian and industrialized Pakistan, he added.

    Expressing his optimism, Irfan Iqbal Sheikh said that FPCCI is very much positive that the incumbent Prime Minister will bring a noticeable change in the governance, administration and delivery on the back of his proven track-record to successfully implement reforms and complete wide-ranging mega projects before time.

    READ MORE: Political unrest dents foreign investors’ confidence: Nisar

    Irfan Iqbal Sheikh added that while FPCCI acknowledges the initial gains in the rupee-dollar parity & PSX, there are many immediate and pressing issues of trade, industry and the economy in the eyes of the apex chamber of the country.

    FPCCI Chief informed that credible international agencies now forecast Pakistan’s current account deficit in the Fiscal Year 2022 at $18.5 billion – which is more than 5 per cent of GDP. The new government and its Finance Minister should start an objective and inclusive consultative process with the stakeholders in the business community and take them into confidence on how and why the government will be able to manage the current account deficit.

    READ MORE: Tax slabs reduction may be considered: FBR chairman

    Irfan Iqbal Sheikh maintained that Trade Deficit has surpassed $35.4 billion in the nine months (July-March) of the current Fiscal Year 2022. FPCCI advocates tangibly incentivizing & subsidizing Industrialization, Import Substitution, IT Exports and Facilitating Small & Medium Enterprises (MSMEs) in the Export-Oriented Industries for the near-term gains, he added.

    FPCCI President emphasized that circular debt has reached PKR. 2.5 trillion and has put Pakistan’s energy security at a heightened risk. The government must ensure fuel & energy supplies to the industrial sector through an elaborate and well-communicated plan of action.

    Irfan Iqbal Sheikh noted that food inflation has crushed the masses on the back of international fuel & commodities prices and supply-side mismanagement. The government must swing into action with the assistance of private-sector to ensure food security.

    READ MORE: Political turmoil to create economic instability: FPCCI

    Sheikh, condemning the policy rate hike, said that raising the policy rate to 12.25 per cent can very well be proven as the last nail in the coffin of SMEs; which are already under dire strains due to the burgeoning cost of doing business; abysmal ease of doing business indicators; difficulties in access to finance; uncertainties in access to foreign exchange and regionally- uncompetitive costs of electricity & gas. He has demanded the immediate reversal of the policy rate hike.

    FPCCI Chief reiterated that FBR has become a notice manufacturing factory and proposed  strategic & sustainable reforms in consultation with the business community; elimination of maladministration, corruption & harassment and withdrawal of unfair notices.

  • High interest rate to destroy economy: FPCCI

    High interest rate to destroy economy: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday said that the recent increase in interest rate will result in disaster for the economy.

    Irfan Iqbal Sheikh, President FPCCI, has expressed his profound disappointment and concerns over an unexpected and massive hike in the key policy rate, i.e. 250 bps by the Monetary Policy Committee (MPC) of the State Bank of Pakistan.

    READ MORE: KCCI demands immediate withdrawal of policy rate hike

    He said that the business, industry and trade community is shocked; and, clueless at the same time on how to cope with its fallout on economic activities, viability of doing business in Pakistan and inevitable adverse impacts on exports – in the absence of any governmental support.

    President FPCCI added that a comparative analysis of the interest rates in Pakistan and the regional countries also show a big difference to Pakistan’s disadvantage; namely, Malaysia is at 2 percent China is at 3.7 percent; India is at 4 percent and Bangladesh is at 5 percent. He emphasized that if the interest and export refinancing rates are not decreased drastically in Pakistan, we will not be able to compete with the regional countries as well.

    READ MORE: SBP increases policy rate sharply by 250bps to 12.25%

    Irfan Iqbal Sheikh explained that the current tide of the inflation had nothing to do with the policy rate of SBP; but, it was due to the political uncertainty and lack of any direction in economic policies due to it.

    Additionally, he added, that the inflation in Pakistan has been due to supply-side disruptions and again had nothing to do with the interest rate.

    President FPCCI elaborated that it was business community’s genuine demand, even before the recent interest rate raise, that the policy rate should be gradually brought down from 9.75 percent to ensure availability of capital to businesses at lower and affordable rates. Contrary to what was needed, the interest rate has now been hiked to 12.25 percent; which will put a halt to the economic and commercial activities in the country.

    READ MORE: KATI terms sudden policy rate hike as economic disaster

    Outlining three factors, Irfan Iqbal Sheikh said that volatile rupee-dollar parity, uncertainty in political & economic environment and interest rate hike will totally crush the SMEs; as cost of doing of doing business, ease of doing business, access to capital, access to foreign exchange and remaining profitable will all be next to impossible for SMEs.

    Irfan Iqbal Sheikh said if the authorities do not interfere immediately, there will be a lot of bankruptcies, many export orders would not be fulfilled, huge loss of employment opportunities; and loss of tax revenue will follow. He has called upon the authorities to instantaneously start a consultative process with all the stakeholders to find a workable way out of the current crises.

    READ MORE: SBP intervention sought to stop further rupee devaluation

  • Political unrest dents foreign investors’ confidence: Nisar

    Political unrest dents foreign investors’ confidence: Nisar

    KARACHI: The businessmen panel of Pakistan’s apex trade body has said that the political uncertainty has dented the confidence of foreign investors.

    The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has said political uncertainty has rattled the Pakistan economy, hitting the stock market constantly, as the country has witnessed the capital  outflow of around $1.5 billion during the ongoing fiscal year, with major foreign investment outflows from Pakistan Investment Bonds (PIBs) despite high-yields returns on them.

    The BMP chairman and FPCCI former president Mian Anjum Nisar observed that the uncertainty at the political front and parliament moving closer to the vote of confidence motion dented investors’ confidence, resulting into the investment outflow of at least $400 million from the country just in a single month of March.

    He said that country-to-country inflows reflect the changing situation on external fronts of the economy, as the FDI inflows from China has dropped to $384 million during Jul-Feb FY22 compared to $522 million in 8MFY21. In spite of good relations with China, Pakistan is unable to attract Chinese investors for any vital change in the economy. China is the biggest trade partner of the country but the balance is largely in favour of China.

    Quoting the figures of the central bank, he said that foreign direct investment (FDI) fell by 33 per cent in February 2022 compared to preceding month of January, as the second half of the current fiscal has been facing several negative impacts including political instability, the war in Ukraine and a hike in oil prices in the international markets.

    The record increase in oil prices as well as in other commodities rates has widened the trade deficit. Though the country reported a positive growth of FDI inflows by 6 per cent during July-February 2021-22 (8MFY22) but this growth is far lower than the $11.6 billion current account deficit confronting the country.

    Mina Anjum Nisar said that the returns on the treasury bills and PIBs are highly attractive for foreign investors, as such high rates on government-guaranteed risk-free bonds are unprecedented but unfortunately the outflows from PIBs reached $353 million in March.

    In the same way, the yields on the treasury bills rose to 11.99 percent for three-month papers, 12.5 percent for six months, and 12.7 percent for 12 months.

    During the ongoing fiscal year, the total outflows from equity, PIBs, and treasury bills stand at $1.558 billion against total inflows of $654.3 million. The cumulative net flow during the nine months through March 2022 comes in at $904.36 million.

    The single-day outflow on 24 March was $91.3 million against an inflow of $2.3 million in equity. The outflows from the PIBs and treasury bills were $50 million and $34.8 million, respectively, during the same day, the report shows.

    During the current fiscal year, the total PIB inflows stood at $104.3 million so far, and inflows have remained at just $0.15 million during this month.

    The total inflows of the PIBs and treasury bills during March stand at $0.15 million, while outflows of the two domestic bonds are $352 million. If the outflows from equity are counted, the total outflows of foreign investment were $402.35 million, while the cumulative net flow was $378.3 million. The inflows in equity during March stand at $23.9 million.

    Poor investment climate hit the FDI inflows which noted a sharp decline of 50pc to $110 million in January this year from $218.7m in December 2021.

    Real change was noted in January since the first half of the current fiscal year (1HFY22) witnessed a growth of 20pc in FDI. The inflow in December 2021 was much higher at $218.7m – showing a jump of 29pc – compared to $169.4m in December 2020.

    The declining trend of last two months could eliminate the positive growth trend of 20pc growth during 1HFY22.

    Though exports showed growth of 25pc but the amount is still not enough to mitigate the impact of the huge import bill. The only positive news was the inflow of remittances which kept its pace of growth during 8MFY22.

    The SBP data showed FDI inflow in February this year was $90.8m compared to $137m during the same month in FY21; a decline of 33.6pc.

    Portfolio investment during July-Feb FY22 showed that the outflow was higher at $314m compared to an outflow of $253m in 8MFY21.

  • Tax slabs reduction may be considered: FBR chairman

    Tax slabs reduction may be considered: FBR chairman

    KARACHI: Dr. Muhammad Ashfaq Ahmed, chairman, Federal Board of Revenue (FBR) on Tuesday said reduction in income tax slabs may be considered.

    Addressing the business community at Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that existing income tax slabs were implemented after due consideration.

    Earlier, the business community pointed out high number of tax slabs in the Income Tax Ordinance, 2001.

    READ MORE: Withholding tax should be on income: FBR Chairman

    Commenting on requirement of Computerized National Identity Card (CNIC) on transactions, he said this condition was introduced three years ago. The FBR has gathered bulk of information due to this condition. Further, many cases of using fake CNICs for making transactions were also reported, he added.

    The FBR chairman said that retailers had positively responded to integration of Point of Sales (POS) in Karachi. “Many issues will be resolved with improvement in supply chain,” he added.

    The business community raised the issues of audit notices. Dr. Ashfaq said that action would be taken if audit notices were not responded. “The audit notices should be responded with documentary evidence,” he said.

    READ MORE: UAE favorite hiding for Pakistan assets: Dr. Ashfaq

    About the tax laws, he said that foreign companies investment in Pakistan are unaware about our domestic laws, he said and assured that the FBR would facilitate both local and foreign investors to understand tax laws.

    Earlier, Anjum Nisar, Chairman, Businessmen Panel (BMP) said that delay in tax refunds create liquidity issues for industries. He said if taxpayers delays in compliance then he is subject to penalty and surcharges. Similarly, this should be apply to tax officials, he added.

    Irfan Iqbal Sheikh, President FPCCI, put forward the concerns and complaints of the business, industry and trade community of Pakistan to the Federal Board of Revenue during the detailed visit of its Chairman, Dr. Ashfaq Ahmed; along with the top brass of FBR.

    READ MORE: FBR explains cash discount under sales tax laws

    FPCCI President said that excessive and unsubstantiated tax notices; maladministration and corrupt elements; requirement of buyers’ CNIC copy; huge backlog of refund cases; double taxation; misuse of erstwhile FATA & PATA exemptions; higher rates of corporate, sales and withholding taxes; mandatory POS integration with FBR; multiplicity of income tax slabs and SRO culture are the major impediments in reforming the taxation system and broadening of the tax base.

    Irfan Iqbal Sheikh added that 29 percent corporate tax and 17 percent sales tax are too high for economic growth, industrialization and employment generation; and, rates of these taxes should be gradually and progressively brought down. He elaborated that no country of the world has ever progressed in the absence of industrialization; while commending the recently announced industrial growth package of the federal government.

    READ MORE: FBR amends fresh property valuations for Islamabad

    Engr. M.A. Jabbar, VP FPCCI, emphasized that we have to do away with the notice manufacturing practices of the taxation machinery as that prohibits the new taxpayers to register themselves into the system to avoid unnecessary regulatory interferences.

    Dr. Ashfaq Ahmed, Chairman FBR, expressed his willingness to have policy deliberations over FPCCI’s demand of reducing audit period to three years from the current six years. He also apprised the session that FBR has performed exceedingly well despite the debilitating economic conditions arising out of COVID-19 pandemic and have collected record taxes. He also expressed his optimism that FBR can soon achieve a Tax-to-GDP ratio of 12 per cent.

  • Political turmoil to create economic instability: FPCCI

    Political turmoil to create economic instability: FPCCI

    KARACHI: Perturbed with ongoing political uncertainties following the no-confidence motion moved, the business community urged the treasury and opposition to resolve the issues through talks as unrest creating unstable economic conditions.

    Anjum Nisar, chairman, Businessmen Panel (BMP) and former president of Federation of Pakistan Chambers of Commerce and Industry(FPCCI) feared that political climate of the country has become unpredictable due to political uncertainty, reducing the level of investment and affecting the economic growth of the country, suggesting the government as well as the opposition parties to settle issues through talks in parliament, which the right way to resolve the issues.

    READ MORE: FPCCI demands allowing clearance of solar equipment

    He appealed the political leadership to act wisely and show commitment with the country, as the lack of political stability is ruining the trade and economic activities in the country.

    The FPCCI former president said that this situation might create unstable economic conditions, generating higher risks, and transforms into low investment while inflation is one of the key sources of uncertainty. The high rate of inflation leaves the nation uncertain about potential investments, he added.

    READ MORE: FPCCI proposes charter to protect economy from politics

    He said that the financial sector is stable, as the government has continuously been bringing reforms in different sectors. He said that the government has been working on sustainable growth which will boost up to 6% further. He said several reforms had been made in industrialization, housing and agricultural sector.

    He said that the country is facing a huge economic loss only because of wrong statements and irrational attitude of political players. He said that a week of stalled economic activity costs the country around $ 500 million and $2 billion per month and poor economy like Pakistan cannot afford even one million dollar loss to exports. He said that at a time when country is facing severe internal and external challenges, the situation is bound to affect the national interests.

    READ MORE: Banks not issuing forms for land trade with Turkey: FPCCI

    He said that in the past, politics of agitation has caused irreversible loss to the national economy besides tarnishing the soft image of the country. He said that in present scenario, country cannot afford to bear more economical loss. He said that business community is the main stakeholder of the economy and it should not be treated as useless thing.

    He said the economy of Pakistan was on the path of sustainable growth due to successful economic policies of the government.

    He appreciated the government to make all out efforts for reducing the negative effects of inflation by creating conducive atmosphere for investors, jobs for youth and targeted subsidies.

    READ MORE: FPCCI suggests regulating cryptocurrencies in Pakistan

    He attributed the higher economic growth to rising exports, increasing remittances and improving tax collection that had gone up by 32 percent. However, he also said the economy had to face certain difficulties due to higher commodity prices in the international market. The utilization of electricity had gone up by 13 per cent whereas the corporate profits were also at historic high, he said. The Pakistan economy has continued to recover despite the challenges of the Covid-19 pandemic, but imbalances have widened and risks remain elevated. Timely and consistent implementation of policies and reforms remain essential to lay the ground for stronger and more sustainable growth, he said.

    Pakistan can double its traditional exports in next five years and lift exports by providing incentives to the sector and building a strong ecosystem for startups in the country, he said.

    He said the government is also focusing on improving productivity by reviving industries and improving the agriculture sector.

    He said that China has planned to shift up to 85 million jobs to foreign countries in next 10 years and Pakistan government can request the Chinese leadership to move at least 10 million jobs to Pakistan by relocating its key industrial units to special economic zones in the country, he suggested. He said that China can increase imports from Pakistan that would also improve productivity and generate more opportunities for jobs in the country.