KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that inflation in Pakistan is cost push and it cannot be controlled through tight monetary policy stance.
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FPCCI urges convention compliance for continuation of GSP Plus
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to ensure compliance to international conventions for continuation of GSP Plus status granted by European Union (EU).
In a statement issued on Saturday, Engr. Daroo Khan Achakzai, President, FPCCI urged the government to take all necessary measures in compliance of core international conventions pertaining to social compliance, including human rights, labor rights, environment and good governance which are pre requisite for the continuation of GSP Plus status to Pakistan.
While highlighting the importance of GSP Plus, he stated that Pakistan is the major beneficiary of GSP Plus from EU which is the second largest trading partner of Pakistan after USA and has positive trade balance with the bloc.
He stated that GSP Plus allows 20 percent of Pakistani exports to enter EU market at zero tariff and 70 percent at preferential rates and it was expected that Pakistan’s exports to the EU would increase by 20 percent or more during the next few years.
EU GSP Plus granted in 2013 and since then our export has increased to US$ 7.9 billion from US$ 6.2 billion but this increase is only in textile and clothing while the exports of many products like carpet, pharmaceutical, iron & steel, edible fruit, oil seed, copper, plastic, sugar etc. has declined as compared to pre GSP Plus period, he lamented.
Pakistan’s export to EU is mainly dominated by textiles and clothing which accounts 82 percent of total exports which is facing strict competition with Bangladesh and Sri Lanka.
He underscored the need to diversify and value addition in Pakistan’s export including carpets, leather, furniture, plastics, sports goods and agriculture products to exploit the full potential of GSP Plus.
The EU assessment report (2016) has also indicated that Pakistan’s export to EU is heavily relied on one product which indicates a risky situation for Pakistan, he added.
The President FPCCI also appreciated the signing of the EU-Pakistan Strategic Engagement Plan (SEP) in June 2019 for the establishment of a Security Dialogue, expanding relations in the areas of connectivity, migration, mobility, climate change and energy, education and culture, and science and technology.
He also underlined the need of enhancement of foreign investment in Pakistan from EU as Pakistan has improved its ease of doing business and has brought several reforms in business.
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FPCCI hopes improved ease of doing business to encourage foreign investment
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hoped that improvement in ease of doing business in Pakistan will encourage foreign investment into the country.
Engr. Daroo Khan Achakzai, President FPCCI in a statement issued on Friday congratulated Prime Minister of Pakistan Imran Khan and his team for improvement of Pakistan’s ranking from 136 to 108 in Ease of Doing Business 2020 report issued by World Bank.
The report indicated that the World Bank and others institutions has started recognition of Pakistan’s Business reforms.
He added that the improving of Pakistan in Ease of Doing Business will definitely pave the way in encouraging the international investors to make substantial investment in Pakistan as most of the international investors make decisions of investment on the basis of this report.
The President FPCCI said that the Present Government has achieved another milestone of their manifesto i.e. to bring Pakistan into top investment destinations.
He hoped that the continuous reforms of the Government will bring Pakistan into top 80 countries next year. He added that Pakistan’s ranking had improved in six indicators i.e. starting a business, dealing with construction permits, getting electricity, registering property, paying taxes and trading across borders which made Pakistan in top ten business reformer countries.
This will also facilitate the other countries to investment in CPEC related projects which will connect South Asia with Central Asia and Europe.
He suggested the government to make similar incentives/reforms in Baluchistan and KPK as the World Bank report has only covered two main provinces Punjab and Sindh.
Inclusion of these provinces will help in their economic development.
He further added that improvement in ranking will improve the business environment and overall economy become visible because of the reforms introduced by the government which will focus on the mandate of ensuring well being of masses and providing quality education and health to all segment of society.
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FPCCI hopes Pak-China FTA Phase II to be instrumental for bilateral trade
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hoped that the second phase of China-Pakistan Free Trade Agreement (FTA) will be instrumental in enhancing the bilateral trade to its optimum potential.
FPCC president Engr. Daroo Khan Achakzai in a statement on Saturday appreciated the strenuous efforts made by the Prime Minister and his team in preparation of long awaited China-Pakistan Free Trade Agreement (CPFTA) – II in consultation and consensus of all the stakeholders and making it operational w.e.f. December 1, 2019 which will witness Chinese investment in all sector.
The FPCCI Chief hoped that the CPFTA-II would be instrumental in enhancing the bilateral trade to its optimum potential, exploring the new areas of joint ventures, transfer of Chinese technology to Pakistan as it had thin industrial based as compared to China, broadening and protecting indigenous industries and improving Pakistan’s trade balance with its counterpart.
He recalled that under FTA Part-I Pakistan had benefitted to the tune of only 4 percent whereas rest was derived by the China.
While commenting on the statement of the Advisor to the PM on Commerce, Textile, Industries and Production and Investment published in some section of newspapers, he clarified that FPCCI has always advocated / supported the decisions of the government in the best interest of Business Community and flourishing of business environment to make Pakistan economically stable and sound.
Being apex body of trade & industry of Pakistan FPCCI has all the capability and expertise to contribute in government efforts in expansion of all economic sectors such as manufacturing, investment, export etc. He said that the FPCCI status and its role should not be undermined as it has representation all members of trade and industry on its board across the country.
He also hailed the efforts of the government in the development plan of Balochistan and KPK under CPEC which will definitely eradicate their economic issues particularly unemployment and poverty and will bring least developed rural areas of Balochistan and KPK at par with the other part of Pakistan.
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FPCCI suggests one month extension in income tax return filing
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the government to extend the last date for filing income tax return up to October 31, 2019.
Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Advisor to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh, and Chairman of the Federal Board of Revenue (FBR) Syed Shabbar Zaidi to extend the deadline for filing of Income Tax Returns (ITR) from 30th September to 31st October, 2019.
The FPCCI Chief argued that a large number of business community members could not file their ITR mainly due to a variety of reasons such as uncertainty prevailing in the country because of changes in the taxation provisions of the Income Tax Ordinance 2011 ; slowdown of normal business activities; Election of FPCCI member trade bodies; interruption in on-line system of e-filing of ITR ; protracted rain etc.
“This will help the tax payers in discharging their tax liability well in time without penalty on the one hand and increase in government exchequer on the other hand”, he added.
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Container scanning charges abolished: Ali Zaidi
KARACHI: Syed Ali Haider Zaidi, Minister for Maritime Affairs, on Saturday said the container scanning charges has been abolished in order to reduce the cost of the industry.
He was addressing the members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
Zaidi said that the terminal operators had been scanning charging at $5 on each container handling. “The terminal operators were charging this amount from all the containers irrespective of scanning or no scanning,” he added.
The minister said the terminal had been stopped from charging this on those containers which were not scanned.
The minister also said that he had opposed to collect fuel freight charges on supplies to Karachi city. He said that all the petroleum products imported at Karachi ports and then supplied to other parts of the country.
Ali Zaidi said that he had openly opposed to this levy in order to facilitate people and the industry.
He said that land transfer of Port Qasim and KPT had been stopped till the audit of already allotted lands.
He disclosed that there was huge corruption in land allotments of port lands.
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FPCCI recommends dedicated accounts to stop fraud in sales tax refunds
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has recommended dedicated accounts for prevent fraud in sales tax refunds.
Engr. Daroo Khan Achakzai, President, FPCCI while commenting on SRO 981(I)/2019 of dated August 07, 2019 with special reference to Chapter V-A said that there is need of dedicated Head of Accounts sector-wise for creating transparency.
He further stated though Rs22 Billion have been released to exporters against RPOs issued as of August 31, 2019 but new RPOs have been stopped which creating shortage of liquidity crunch.
The new refund system promised to issue refund within 72 hours still not implemented under new rules that have some lacunas.
The new refund rules which are not very clear and has many lacunas and refunds promised to exporters within 72 Hours still not implemented.
The exporters are confused as the new system does not release pending refunds since 2008.
The new system is full of Errors and the Exporters are facing lot of issues and they cannot file the returns of Refunds.
Unless the new system is perfectly tested it should not be applied.
FBR has already collected approximately Rs.48 Billion (on the basis of last year data as current year data still not available) for textile exporters. In the month of July nothing has been refunded.
The exporters should be informed how much amount of Sales Tax refund is outstanding as of August 31, 2019.
Engr. Daroo Khan Achakzai urged FBR to take remedial measure immediately to solve exporters problems.
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SBP urges business community to discourage cash transactions
Dr. Reza Baqir, the Governor of the State Bank of Pakistan (SBP), has called on the business community to reduce cash transactions to aid economic growth. Speaking to members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday, Dr. Baqir emphasized the importance of promoting transactions through the banking system.
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NAB not to process sales tax, income tax cases of business community
KARACHI: Justice Javed Iqbal, Chairman, National Accountability Bureau (NAB) has said that the bureau will not process cases of income tax and sales tax of business community.
He was talking with Engr. Daroo Khan Achakzai, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) at a meeting, said a statement issued by FPCCI on Friday.
A delegation of FPCCI under the leadership of President FPCCI Engr. Daroo Khan Achakzai met Chairman NAB, Justice Javed Iqbal at NAB Head Quarter Islamabad.
During the meeting Engr. Daroo Khan Achakzai expressed his views that entire business community of Pakistan appreciates the role of NAB and the measures taken by it for transparency and curb the corruption of the country.
He said that business community is the backbone of the country contributing in economic development. NAB is business friendly institution that considers business community as its priority and addressing the issues.
Chairman NAB said that NAB would not process the cases of income tax and sales tax of business community and has ordered to return back all previous cases of business community to FBR as per law. He informed that he has ordered withdraw all notices served by NAB Multan on owners of flour mills of Multan, Bahawalpur and D.G Khan division. He said that he himself would review the notices of flour mills.
President FPCCI Engr. Daroo Khan Achakzai appreciated the personal efforts of Chairman NAB for looking into the of issues of entire business community. He thanked the Chairman NAB for the establishment of Special Cell for entire business community in NAB Secretariat.
Chairman NAB Justice Javed Iqbal also acceded to the request of President FPCCI for visiting the Federation House.
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FPCCI demands immediate release of export refunds, duty drawbacks
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded the government of issuing all outstanding export refunds, rebates and duty drawbacks.
In a statement issued on Tuesday, Engr. Daroo Khan Achakzai, President, FPCCI urged the Advisor to the Prime Minister on Finance & Revenue, Dr. Abdul Hafeez Shaikh to fulfil his commitments made, from time to time, particularly in the Finance Act, 2019 and release export sectors’ all accumulated refund claims including deferred Claims ; Customs Duty Drawback ; DLTL etc., lying pending for payment since long for facilitating and enabling environment to the exporters to overcome their liquidity crunch, meet their export orders well in time; enhance exports and reduce trade deficit so that the export targets as envisaged in the Finance Act, 2019 are met.
Referring to the Finance Act, 2019 the FPCCI Chief recalled that although a provision had been introduced wherein promissory notes would be issued to the Claimants at their option by a newly formed company called the FBR Refund Settlement Company Ltd., but there is a very slow progress in processing of the pending Sales Tax refunds and issuance of RPOs.
The FPCCI Chief appreciated Dr. Abdul Hafeez Shaikh, Advisor to the Prime Minister on Finance & Revenue and FBR for initiating Expeditious Refund System (ERS) for automated payment on generated Refund Payment Orders (RPOs) in the wake of withdrawal of zero-rating on Sales Tax inputs for five export oriented industrial sectors and also appreciated for providing Sales Tax refunds for manufacturing of five export-oriented sector, within 72 hours through Risk Management (RMS), however, lamented for the delay in implementation of these system.
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