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Tag: Federation of Pakistan Chambers of Commerce and Industry

  • FPCCI, IBA to collaborate for budget proposals, research

    FPCCI, IBA to collaborate for budget proposals, research

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Institute of Business Administration (IBA) have agreed to collaborate in policy research and formulating proposals for federal and provincial budgets.

    The two institutions have agreed to collaborate in the spheres of Data-based Policy Research; Data Sharing; formulating Proposals for Monetary Policy and Federal & Provincial Budgets; Policy Advocacy; conducting Economic Surveys, etc., according to a press release on Tuesday.

    Mohammad Younus Dagha, Chairman of FPCCI’s Policy Advisory Board & Dr. Akbar Zaidi, Executive Director of IBA Karachi, signed a Memorandum of Understanding at a ceremony attended by the press representatives at the FPCCI Headquarters, Federation House, Karachi.

    Mian Nasser Hyatt Maggo, President FPCCI, said that a strong proponent of industry-academia linkages & cooperation, he has always pursued the promotion of knowledge-based economy and the MoU is a manifestation of his vision for FPCCI.

    Mian Nasser Hyatt Maggo maintained that, to him, FPCCI & IBA are natural allies as FPCCI is the apex representative business & trade body of Pakistan and IBA is one of the most prestigious business schools of Pakistan.

    Mohammad Younus Dagha said that Policy Advocacy, the primary function of FPCCI, should be data-driven & evidence-based. Policy advocacy should be the primary function of FPCCI; but, it has to be grounded in hard facts to be valid, pragmatic and result-oriented.

    Dagha added that an effective policy advice has to reconcile the inspirations of entrepreneurs & expectations of the society at large. He said that the Policy Advisory Board has therefore started its journey by joining hands with the academia & economic think tanks; as well as NGOs working in social sectors.

    Amjad Rafi, a Senior Member of FPCCI & a Member of the Board of Governors of IBA, emphasized that business & industry should start looking towards academia & researchers for solutions to their real-world management & operational issues for indigenous, sustainable and research-based ideas; in order to contribute to socioeconomic growth & employment generation.

    Dr. Akbar Zaidi said that FPCCI & IBA are old allies and, historically, IBA has always had a member from FPCCI on its board. He expressed his satisfaction that the MoU is a step forward. He added that IBA is a university now; but, its business school continues to be the most important part of it.

    FPCCI disagrees with high markup on SME financing
  • FPCCI disagrees with high markup on SME financing

    FPCCI disagrees with high markup on SME financing

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has denounced high mark-up rate on financing to Small and Medium Enterprises (SMEs) under a scheme announced by the State Bank of Pakistan (SBP).

    In a statement on Monday, FPCCI President Mian Nasser Hyatt Maggo expressed shock over the interest rate of up to 9 per cent under SBP’ SME Asaan Finance Scheme (SAAF).

    The SMEs were appreciative of the announcement of collateral-free SAAF Scheme; but, the interest rate of 9 per cent makes it unaffordable, unproductive and unsupportive for SMEs, he added.

    Maggo said that it is a welcome step that SBP has selected eight banks to get financing under SAAF Scheme from SBP; however, it makes no economic and commercial sense to allow these eight banks to charge up to 8 per cent in addition to 1 per cent of SBP’s lending fee to banks.

    The FPCCI chief demanded that SAAF scheme should not have a total interest rate over 3 per cent, which will make it at par with TERF to make it affordable for SMEs, i.e. 1 per cent for SBP financing and 2 per cent for banks’ margin.

    He said that in the post-pandemic scenario, nowhere in the world SMEs can afford to get capital at 9 per cent and pay it back without getting bankrupted. Maggo also noted, with concern, that SBP itself sets maximum interest rate under TERF Scheme at 3 per cent for larger enterprises and business groups; and, for SMEs, it has taken a discriminatory and unsupportive stance.

    Iftikhar Ghani Vohra, Convener of FPCCI’s Central Standing on SMEs, said that based on the feedback from across Pakistan, he can say that SMEs are not happy with the exorbitant interest rate; as 9 per cent will make the SAAF Scheme unaffordable for them.

    Vohra added that his committee had a detailed meeting with the SBP officials in the mid-September; and, they categorically conveyed their concerns to the officials. However, FPCCI’s concerns have fallen on deaf ears and no change in interest rate has been announced.

    Maggo said that he disagrees with the assertion by SBP that all stakeholders have been taken onboard on SAAF Scheme; as FPPCI’s proposal has not been taken into account. It is pertinent to note that FPCCI is the apex representative body of all the SMEs, chambers & associations of Pakistan and; therefore, the biggest stakeholder in the policies affecting SMEs, he added.

    FPCCI alleges SBP for misguiding on Pak-Iran trade
  • FPCCI alleges SBP for misguiding on Pak-Iran trade

    FPCCI alleges SBP for misguiding on Pak-Iran trade

    KARACHI: The apex trade body of the country has alleged the State Bank of Pakistan (SBP) for misguiding the ministry of commerce on Pak-Iran trade.

    Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday said that the SBP had misdirected the commerce ministry by advising against banking channels with Iran for sanctions-related concerns; and, not offering and advocating its due and required facilitative role for the barter trade. “Any State Bank should be an enabler of trade and growth; not a block and disruptor like SBP,” the FPCCI said.

    The FPCCI chief hailed the Ministry of Commerce’s efforts to kick start barter trade with Iran on a mass scale; however, he has expressed his concerns and apprehensions pertaining to the conduct of the SBP for creating obstacles and showing inaction for the same.

    Maggo maintained that when Europe, India and China can do barter trade with Iran, why Pakistan can not do that; while, Pakistan is at the greater advantage on the back of long border and geographical contiguity as compared to all other countries and regions.

    Nasir Khan, VP FPCCI from Balochistan, emphasized that it is in the national interest of Pakistan to have barter trade with Iran and have marketplaces in the border areas of the two brotherly countries.

    He added that he considers the conduct of the Governor SBP against the national interest and detrimental to the economic growth and prosperity of Pakistan.

    Nasir Khan added that Pakistani exporters can export large quantities of rice, meat, pharmaceuticals and textiles to Iran and that can translate into upwards of equivalent of five billion dollars annually; which, in turn, will create millions of jobs.

    Nasir Khan further said that the current Governor SBP is an imported one and is not taking care of Pakistani interests into account. We need a die-hard Pakistani at the helm of the affairs, he added.

    FPCCI demands replacing SBP governor
  • Customs ready to form valuation advisory committee

    Customs ready to form valuation advisory committee

    KARACHI: Dr. Fareed Iqbal Qureshi, Director General, Customs Valuation has said that Pakistan Customs is ready to constitute an advisory committee of the stakeholders from government and business community; and he has an open-door policy for addressing all the grievances.

    (more…)
  • FPCCI demands replacing SBP governor

    FPCCI demands replacing SBP governor

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday demanded the government of replacing the governor of State Bank of Pakistan (SBP).

    “The business, industry and trade community of Pakistan demands a better, more competent and responsible leadership at the helm of the affairs at State Bank of Pakistan,” said Mian Nasser Hyatt Maggo, President FPCCI while criticizing irresponsible and fictitious statement by the Governor SBP on deprecating value of Pakistani Rupee and how it is benefiting Pakistan.

    FPCCI Chief said that there is no economic sense and justification in the statement that Pakistan has gained around $3 billion due to recent depreciation in Pak Rupee. He added that the ground realities are diametrically opposite than that of assertions by SBP Chief.

    Mian Nasser Hyatt Maggo emphasized that monetary policy should be devised in a manner to promote economic growth and bring stability in the economic indicators; however, monetary policy has failed to achieve any of the above.

    Nasir Khan, VP FPCCI, has said that unrelentingly depreciating exchange rate is playing a havoc with Pakistani society and the economy. This is unsustainable and the Prime Minister should intervene – in the larger national interest – immediately to arrest the slide in the value of Pak Rupee.

    Nasir Khan said that the government must address the domestic and imported inflation through its monetary and fiscal policies; instead of making lame excuses.    

    Mian Nasser Hyatt Maggo said that hardly any justification exists in continuation of the present Governor SBP. In fact, ethically speaking, he should prefer to resign himself in view of totally indefensible policy structure given by SBP.

    Mian Nasser Hyatt Maggo has also demanded a binding inquiry into the conduct of SBP in recommending sweeping tax concessions for non-resident companies to attract investments in government debt at very high rates to favor certain foreign commercial banks. The same conduct of Governor SBP is part of the history archives, when he was in Egypt.

    Dollar goes up to new closing high at Rs174
  • FPCCI rejects hike in petroleum, electricity prices

    FPCCI rejects hike in petroleum, electricity prices

    The Businessmen Panel (BMP) of Federation of Pakistan Chambers of Commerce and Industry’s (FPCCI) has rejected hike in prices of petroleum products and electricity.

    BMP Chairman Mian Anjum Nisar, while strongly reacting to increase in electricity base tariff by Rs 1.39 per unit for the second time in one year, along with exorbitant hike of Rs10.49 per litre in petrol prices, has said that the government has declared another minibudget by burdening the trade and industry with billions of rupees new taxes in the form of huge increase in electricity, gas and petroleum rates.

    FPCCI’s Businessmen Panel Chairman Mian Anjum Nisar observed that the government has raised the petroleum product price for the third consecutive time in one month period, lifting it by more than Rs20 per litter to Rs137.79 per litre, as the authorities hiked the oil prices by Rs4.50 on Sept 16, then by Rs5.50 on Oct 1 and now by Rs10.49 per litter on Oct 16, 2021.

    “It is unfortunate that the authorities had reduced the petroleum rates just by Rs1.50 one and a half months back on Sept 1, 2021,” he added.

    Moreover, the federal government has announced to increase electricity base tariff by Rs 1.39 per unit across the country from Nov 1, while it had already enhanced the base power tariff by Rs 1.95 per unit in January this year along with quarterly and monthly electricity price hike under fuel adjustment formulas, totaling the power price hike to over Rs5 per unit, he claimed.

    He said that the National Electric Power Regulatory Authority (NEPRA) has allowed an increase of Rs1.65 per unit in power tariff, under quarterly adjustments, which will empower the distribution companies to collect Rs173 billion from consumers in the next one year. He said that the trade and industry were expecting some relief at the expiry of early adjustments of Rs1.62 per unit on Sept 30, 2021, however, the NEPRA announced the transfer of new adjustments equal to Rs1.65 per unit to the consumers with effect from Oct 1, 2021.

    FPCCI former president rejected the increase in power prices along with the periodic hike in rates of petroleum products. He said the increase in power and fuel prices will increase the cost of production for the industrial section which in turn will impact the ease of doing business and exports. This will ultimately hit the economy as envisioned by the Prime Minister, he maintained.

    Condemning the government’s move, the ruling group chief of apex chamber said the increase was being done to meet the conditions of the International Monetary Fund.

    It is unfortunate that Minister for Finance Shaukat Tarin had pledged a day earlier – on October 14, 2021 in Washington DC while attending the annual meeting of IMF – that electricity tariff will not be increased.

    Rejecting the latest increase in electricity and petroleum prices, he termed it a cruel decision by the authorities, which will bring the economy to a grinding halt. Millions more will be unemployed while millions are facing abject poverty and starvation. Imposition of 17 per cent sales tax on exempted items, increase in petrol, electricity prices is not just for the economy, he said.

    He further said the government had dropped a new bomb on the trade and industry at a time when inflation and unemployment was at an all-time high and the economy was facing total collapse because of government’s incompetence.

    The government blindly acted on the terms of the IMF and did not bother to care about the public interest. He warned that severe inflation was creating a serious problem of economic viability of the country which was not a good omen for Pakistan.

    Businessmen Panel Chairman Mian Anjum Nisar said the constant increases in energy rates on the behest of the International Monetary Fund (IMF) would make the Pakistani products uncompetitive in the international market.

    He opposed the government’s move of raising power tariff by more than Rs5 per unit, besides lifting rates of petroleum products twice a month to qualify for the revival of the stalled $6 billion IMF loan program, leading the economy towards point of no return due to interference of the International Monetary Fund.

    Mian Anjum Nisar said it was imperative to make power and gas tariffs for domestic, as well as export sectors compatible with the tariff being applied in regional and neighboring countries.

  • FPCCI criticizes restoring bank account freezing powers

    FPCCI criticizes restoring bank account freezing powers

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday expressed serious reservations over restoration of powers to officers of Inland Revenue (IR) in freezing bank accounts without approval.

    FPCCI President Mian Nasser Hyatt Maggo recorded his strong reservations on the attachment of bank account under section 140 of the income tax ordinance, 2001 and section 48 of the sales tax act, 1990 and term new amendment as a hurdles to ease of doing business as envisioned by Prime Minister of Pakistan.

    He stated that on the instructions of the Prime Minister the government machinery made an atmosphere among the taxpayers that unless the taxpayers are at ease to do their business without any fear of the tax officials, it is not possible to boost the collection of revenue.

    However, it seems that the said atmosphere is again at its disturbance in the light of the Board’s letter dated 11-10-2021 wherein attachment of bank account is ordered to be made without informing tax the payers and implementation is ordered retrospectively on all recoveries.

    President FPCCI said that the trade is facing a blow due to escalation of parity between the dollar and rupee and now comes the draconian steps being taken by the Board in the shape of instructions to forcefully recover the disputed taxes from the bank accounts of taxpayers.

    Maggo further added that this is totally against the recent instructions to bar the tax machinery from taking money without prior intimation to the account holders and the fresh instructions would be a dent on the Finance Minister’s pro taxpayer posture. It is also not out of place to mention that the former Chairman FBR also against such steps of the Board to collect taxes forcefully and taken practical steps to stop such practices.

    He also said that the tax machinery is almost at a failure to dig out new taxpayers instead it is bent upon on hand twisting methods against the existing taxpayers to collect so called revenue.

    On the other hand if such practices are enforced it will pile up the litigation between the tax collectors and taxpayers and the courts are already at a burden due to such litigation.

    The trade community feels that the hierarchy of the FBR is under pressure to meet their targets and to recover the disputed taxes by using their extra ordinary powers.         

    In recent months, the taxpayers have been complaining about the “highhandedness” by the FBR. The matter had also landed in the Senate Standing Committee on Finance that last week recommended the government to sack taxmen who made exaggerated tax demands and then rejected appeals of taxpayers under pressure from FBR headquarter.

    Maggo registered a strong complaint on behalf of the Business Community against the orders passed by the FBR and urged to review its policy and collect the taxes under the trade friendly atmosphere.

    FPCCI expresses annoyance over gas suspension
  • Business community mourns Abdul Qadeer’s demise

    Business community mourns Abdul Qadeer’s demise

    KARACHI: Pakistan’s business community has mourned the demise of Dr. Abdul Qadeer Khan, who was legendary scientist and father of Pakistan’s nuclear program.

    Mian Nasser Hyatt Maggo, President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in a statement said that the entire business, industry and trade community of Pakistan is mourning the demise of the legendary and celebrated scientist and father of Pakistan’s nuclear programme Dr. Abdul Qadeer Khan.

    FPCCI Chief added that Dr. AQ Khan lived an accomplished life and lived the dream of Pakistan to the fullest. He inspired and motivated three generations of Pakistanis and will continue to inspire and influence the future generations to come.

    Mian Nasser Hyatt Maggo said that the nuclear programme of Pakistan has effectively made the country’s defense invincible from external threats and has provided a secure environment for socio-economic growth of Pakistan.

    FPCCI will hold Fateha Khawani in all its office countrywide for the departed soul and to commemorate Dr. AQ Khan’s unparalleled contributions to country’s defense, academia and philanthropic landscape.

    FPCCI demands tax return filing date extension
  • FPCCI expresses annoyance over gas suspension

    FPCCI expresses annoyance over gas suspension

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed annoyance over suspension in gas supply to industrial sector.

    Mian Nasser Hyatt Maggo, President FPCCI, in a statement on Friday expressed his profound concerns over yet another gas supply suspension for 72 hours for the industrial areas of Sindh and Balochistan.

    It will bring many export-oriented industrial units to a halt and ensuing losses, he added.

    FPCCI Chief pointed out that after every few months the industrial sector has to endure the prolonged gas supply suspensions; despite repeated promises and assurances given to the business, industrial and trade community of Pakistan from the platform of FPCCI.

    Mian Nasser Hyatt Maggo maintained that governments all over the world protect the industries from unplanned gas and fuel outages; and, also help them ward off the adverse effects, if the suspensions occur.

    FPCCI President forewarned the government authorities that during winters there could be an unprecedented gas shortage and the country’s exports can be gravely impacted; and, the government should sit down with the business community at the earliest to chalk out a plan to protect the export-oriented industries from inevitable gas shortages.

    Mian Nasser Hyatt Maggo, as President FPCCI, has reiterated his full support to facilitate consultative process between government authorities and the business community before the winter starts. FPCCI wants to support the government’s vision to enhance Pakistan’s exports in a fast-paced; yet, sustainable manner, he added.

    Business community rejects hike in oil prices
  • FPCCI demands tax return filing date extension

    FPCCI demands tax return filing date extension

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday demanded the tax authorities of extending the return filing date at least for two months.

    In a statement, FPCCI President Mian Nasser Hyatt Maggo, demanded the Federal Board of Revenue (FBR) to extend the deadline for tax filing by two months to facilitate the business community and support the government’s drive to broaden the tax base and collect maximum taxes.

    FPCCI Chief, referring to the fast-approaching deadline of September 30, 2021, i.e. Thursday; and, recommended to the authorities that on the basis of feedback from businesses across Pakistan, FPCCI maintains that hundreds of thousands of SME owners will not be able to file their income taxes by Thursday. 

    Mian Nasser Hyatt Maggo said that FBR has notified a daily surcharge of 0.1 per cent for delayed filing on taxable income; which is not only harsh but also impractical as it translates into 3 per cent per month and 36 per cent per annum.

    The maximum surcharge by FBR should not be more than KIBOR plus 2 per cent; which also happens to be the rate when FBR delays the processing of tax refunds.

    Mian Nasser Hyatt Maggo, as President FPCCI, has reiterated his stance that FBR should stop taking one-sided radical anti-business decisions; instead, should have a detailed consultative process with the business, industry and trade community of Pakistan and FPCCI is ever-ready to provide its platform as their apex representative body.

    PM requested for return filing date extension