Tag: Federation of Pakistan Chambers of Commerce and Industry

  • 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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  • 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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  • FPCCI to move review petition in demolition of illegal constructions

    FPCCI to move review petition in demolition of illegal constructions

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has announced its decision to file a review petition before the Supreme Court of Pakistan (SCP) concerning the demolition of illegal and unauthorized constructions in Karachi.

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  • FPCCI welcomes decision for making Torkham Border operational

    FPCCI welcomes decision for making Torkham Border operational

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed its approval of the government’s decision to make the Torkham Border operational around the clock.

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  • Income tax returns, sales tax procedure to be simplified: Asad Umar

    Income tax returns, sales tax procedure to be simplified: Asad Umar

    KARACHI: Finance Minister Asad Umar has expressed his resolve to simplify income tax return forms and sales tax procedure to facilitate business community.

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  • FPCCI blames former government for misusing GIDC

    FPCCI blames former government for misusing GIDC

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has blamed the former government for misusing Gas and Infrastructure Development Cess (GIDC) and urged the authorities to urgently address the persistent issue.

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