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  • SRB says cases worth Rs 80 billion stuck in litigation

    SRB says cases worth Rs 80 billion stuck in litigation

    KARACHI: Sindh Revenue Board (SRB) Friday said that cases worth Rs80 billion were stuck in litigation and it is willing to resolve amicably.

    SRB chairman Dr. Wasif Ali Memon highlighted that Rs80 billion worth of cases are stuck in litigation and the provincial revenue board is all-willing to resolve as many cases amicably as possible.

    READ MORE: Customs appraising officer awarded major penalty for inefficiency

    “We want to be the facilitators and partners to the business community and no highhandedness is ever desired by SRB,” he added during his visit to Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

    On the demand of FPCCI, Dr. Wasif Ali Memon announced that an effective and inclusive Alternative Dispute Resolution Committee (ADRC) would be formulated by SRB in few weeks and we will include 5 – 6 nominees of FPCCI into the committee.

    READ MORE: Further tax collection on pharmaceutical products unlawful: KTBA

    Chairman SRB also proposed that FPCCI nominees should come from varied sectors to address issues of all the sectors. Additionally, he requested the business community to exhaust the ADRC and other SRB procedures before going into litigation as it only delays the dispute resolution.

    On the occasion, Irfan Iqbal Sheikh, President FPCCI, has stressed upon the need to strengthen and broaden the scope of ADRC to save the precious time, resources and hassle of both the sides, i.e. business community and the SRB.

    Co-chairing the high-profile meeting with SRB Chairman, Suleman Chawla, SVP FPCCI, offered to nominate technical and expert members of the business, industry and trade community from the platform of FPCCI to facilitate SRB’s efforts to strengthen ADRC.

    READ MORE: Non-filers will not be included in ATL 2022

    FPCCI nominees will come with the first-hand knowledge of real issues and with deep understanding of the taxation matters, he added.

    Shabbir Mansha, VP FPCCI, demanded that as Karachi contributes the lion’s share of taxes in federal & provincial authorities, there should be an enhanced focus on the infrastructural development of Karachi – specifically in industrial& commercial areas and port infrastructure. This will only increase the revenue generation from Karachi, he added.

    READ MORE: FBR directs BS-21 officers to submit declaration of assets

    Shuakat Omerson, VP FPCCI, apprised the top management of SRB that many members of FPCCI are qualified in alternative dispute resolution mechanism; including the incumbent and former office bearers of FPCCI; and, they can offer great support to SRB’s ADRC initiatives.

    Khurram Ejaz, Advisor to the President of FPCCI on FBR & revenue matters, said that FPCCI considers SRB as their partners and not as adversaries; because objectives of both the institutions are same – economic development of the province and resolution of all disputes & anomalies pertaining to provincial tax collection.

  • FPCCI demands release of soybean, canola cargoes

    FPCCI demands release of soybean, canola cargoes

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday demanded the government to release the consignments of soybean and canola cargoes at the earliest.

    In different communications sent to the Prime Minister, the finance minister and the commerce minister, the apex trade body informed that soybean seed was a major raw material for the different industries in Pakistan.

    READ MORE: KATI urges removal of regulatory duty on yarn

    Initially it has been used for oil extracting industry for the production of oil purpose then its residual is used in the feed of animals because it is protein rich substance. In poultry industry it has been used as feed.

    If the supply of this raw material is stopped or delayed then the industries which are directly attached with the poultry industry like hatching industry and feed mills may also suffer and as a result of this millions of people will lose their jobs.

    READ MORE: Pakistan slaps 5pc regulatory duty on yarn import

    “It is also used in the feed of cows, goats and buffalos in this connection the Halal industry of Pakistan will also be hurt by this decision,” the FPCCI added.

    The soybean and canola cargoes are stuck up at port area Karachi due to restriction of PPRO organization which comes under the ministry of food security. The ministry has stopped the consignments on the arguments that the goods are GMO Seeds with the apprehension which may cause cancer to humans.

    “Whereas the industry has a point of view that it only happens when it is used in sowing purpose and in Pakistan it is only used in oil extracting and feed industry,” the FPCCI informed.

    READ MORE: Industries threaten mass protest against gas supply shutdown

    The cargoes are under heavy demurrage and detention since their arrival and adding cost to the miseries of stakeholders. It is pointed out that soybean meal is an ingredient which contributes 15-20 per cent of used in the industry.

    Soybean is termed as to contain the highest crude protein content to the extent of 44 per cent which contributes to reasonable yield in milk production.

    It is to record that soybean is being imported in the country since last many years and widely traded commodity. However, its clearance is at halt for the reasons best known to the hierarchy. “The situation is causing cancellation of market commitment and contracts escalating the cost of doing business,” it added.

    READ MORE: Member Customs assures swift clearance of export consignments

    On the other hand its substitute i.e. canola meal is also being treated on the same line and consignments are pending clearance at the port.

    The FPCCI of the view that if such practices are carried on and the consignments are stuck up at the port, the situation will result in shortage of poultry, meat and dairy items are the basic commodities which has a routine use in daily life,

    FPCCI is analyzing the situation seriously, and strongly recommended that immediate relief to the stakeholders may be granted before the situation gets out of control.

  • No tax amnesty, no tax rate cut under IMF program: FBR chief

    No tax amnesty, no tax rate cut under IMF program: FBR chief

    KARACHI: The chairman of Federal Board of Revenue (FBR) Asim Ahmad on Saturday said that under ongoing program of the International Monetary Fund (IMF) the government committed for not granting any tax amnesty scheme and no tax rate cut.

    FBR chief was talking to business community at the Federation of Chamber of Commerce and Industry (FPCCI) during his visit to the Federation House.

    READ MORE: FBR may withdraw condition of invoice, packing list in containers

    He said that the government had agreed with the IMF for neither allow any tax amnesty nor allow tax rate cut under the loan program. “Therefore, all the stakeholders have to work together on the policy,” he added.

    The chairman admitted that under imports under Chapter 84 and 85 of Customs Act, 1990 was problem not only for the business community but it was also for the tax authorities as well. “Hopefully this issue will be resolved very soon,” he assured the business community.

    READ MORE: Customs Enforcement announces auction of vehicles on Nov 09, 2022

    Asim Ahmed said that FBR never wanted to stop the clearance of parts and machinery. “Because industrial activity ensures revenue collection for the country,” he added.

    The chairman said that tax officials were in touch with the business community to resolve the issues.

    He said that tax reform commission had started its work soon after Ishaq Dar assumed as the finance minister. The chairman also informed that the tax audit would be conducted once in four year.

    READ MORE: FBR auctions confiscated immovable properties on Nov 15, 2022

    The chairman said that the retailer and wholesaler sectors were not filing income tax returns, which was main hindrance in identifying true income. He said by enforcing the relevant tax laws on retail sector there was revenue potential of Rs20 billion. In contrast the tax authorities were able to collect only Rs6 billion from this sector.

    READ MORE: FBR issues circular to relax income tax return filing deadline

    On the occasion, Suleman Chawla, senior Vice President of the FPCCI said that business community was uncomfortable on the issues of return filing and selection of audit. These issues should be resolved on priority.

  • Women entrepreneurs organize breast cancer awareness seminar

    Women entrepreneurs organize breast cancer awareness seminar

    KARACHI: Women entrepreneurs belonging to various chambers and associations have organized a seminar for awareness on breast.

    Women Entrepreneurs Committee of Federation of Pakistan Chambers of Commerce & Industry and Karachi Women Chamber of Commerce and Industry Malir (KWCCI Malir) in collaboration with Samina Alvi Task force organized a seminar on Breast Cancer Awareness aimed at providing awareness to women about this disease.

    In the seminar, President FPCCI, Irfan Sheikh, SVP Suleman Chawla, VP Shabbir Mansha Churra, VP Haji Yaqoob, VP Engr. M. A. Jabbar, VP Shaukat Omerson, Convener Women Entrepreneurs Committee FPCCI and Founder President, KWCCI District Malir, Nazli Abid Nisar, MNA Syma Nadeem, Member Samina Alvi Task Force Misbah Khalid, Dr. Kausar, Plastic Surgeon and Breast Cancer Specialist, South City, Shahid Khan, Brooklyn Chamber of Commerce VP, FPCCI Rafat Alam, Dr Sana Mirza, Chairperson and associate professor, Lums, SVP KWCCI District Malir Afzala Shaheen , VP Yasmeen Arif and Farah khan were also attended the awareness session.

    Irfan Iqbal, FPCCI President, said that it is very important for women to be healthy for the formation of a strong society. FPCCI provided 2 vans equipped with modern medical facilities to Cancer Care for providing healthy life to women, and 300 women were tested out of which 11 women were found to have breast cancer.

    Nazli Abid Nisar, Convener FPCCI Women Entrepreneurs Committee and Founder President of Karachi Women Chamber of Commerce & Industry Malir, said that we have been organizing seminars with the support of Samina Alvi Task Force for 3 years and to prevent women from this disease. Providing awareness.

    “If a woman is healthy and strong, then a strong society will be formed and women can work by sitting at home alongside men”, she said.

    Nazli Abid was of the view that we want to reach the government from the platform of FPCCI to provide medical teams in cities and villages to prevent breast cancer so that women can be made aware of their health and provide treatment facilities.

  • FPCCI seeks statutory time for return filing after error removals

    FPCCI seeks statutory time for return filing after error removals

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the apex trade body of the country, has urged the tax authorities to give statutory time for filing tax return after removing all errors in the return form.

    “Proper legal time for compliance should be granted as per the statute after resolving all problems in the tax return forms,” said Suleman Chawla in a letter sent to Asim Ahmad, chairman, Federal Board of Revenue (FBR).

    READ MORE: FBR advised to extend tax return filing date for three months

    The apex trade body pointed out numerous errors and mistakes in the return forms on the Iris – the online filing portal of the FBR – both technical, related to IT, and legal.

    Due to the technical errors the tax filers are reluctant to pay undue taxes, and their consultants remain unable to file the returns, the FPCCI said in the letter sent on September 24, 2022.

    “It is regretful to note that none of the issues have been addressed as yet and, therefore, the pace of compliance of filing the tax returns is very slow,” Suleman Chawla said.

    READ MORE: PTBA suggests measures to resolve refund adjustment ahead return filing deadline

    The FPCCI highlighted the following issues in its letter to the FBR chairman:

    Column for adjustment of brought forward capital losses under the head of capital gains tax is not available in income tax returns form due to which tax on capital gain cannot be calculated correctly.

    The column of tax credit for specified industrial undertaking under section 65G of the Income Tax Ordinance, 2001 is inadvertently available in the tax credit annexure of income tax return for salaried individuals, which has no correlation with such tax credit.

    READ MORE: Penalties for failure to file return tax year 2022 within due date

    Column for adjustment of brought forward capital losses under the head of capital gains is not available in Income tax return form due to which tax on capital gain cannot be calculated correctly.

    The Column of tax credit for specified industrial undertakings u/s 65G of the Income Tax Ordinance, 2001 is inadvertently available in the Tax Credits Annexure of income tax return for salaried individuals, which has no correlation with such tax credit.

    Although the rate of tax on contract receipts under section 153 was reduced from 7.5% to 7% for Tax Year 2022, however, there is no column for such reduced rate in the return for the TY 2022 available on IRIS.

    The draft of manual return forms for the Individuals and AOPs for the Tax Year 2022 was issued belatedly on August 26, 2022, whereas the final SRO. 1733(1)/2022 was issued on September 13, 2022 meaning thereby only 17 days of time has been allowed to file the manual returns, which is insufficient as provided under the law.

    READ MORE: FBR fails to remove return filing glitches; KTBA seeks legal time

    The IRIS portal is calculating incorrect tax liability on gain on sale of immovable properties in violation of section 37(1A) of the Income Tax Ordinance, 2001 which needs to be taken care off as soon as possible.

    The IRIS portal is calculating incorrect tax on profit/yield on Bahbood Certificates/ Pensioner’s Benefit Account/ Shuhada Family Welfare Account in violation of clause (6) of Part-III, 2nd Schedule of the Income Tax Ordinance, 2001, which provides that tax shall not exceed 10 percent of such Profit/ Yield.

    There lies no option list in drop downs country and currency under Code “7006” having description “Investment (Non-Business) (Account / Annuity / Bond / Certificate / Debenture / Deposit / Fund / Instrument / Policy / Share / Stock / Unit, etc.)” due to which a taxpayer remains unable to file the Foreign Income & Assets Statement under section 116A(1) of the Ordinance.

    Opening wealth is being shown in “Reconciliation of Net Assets” Value of opening net assets is being shown under code ‘703002’ despite the fact that the taxpayer’s residency status is selected as “non-resident” for Tax Year 2022 after which, he should not be required to file the wealth statement including reconciliation of net assets.

    The withholding rates on payment of Dividend @ 7.5%, 15% and 25%, (under section 150 of the Ordinance) are appearing in the Income Tax Return Form of “Income for a person deriving income only from salary and other sources and the Column Code 64330052 (Dividend u/s 150 @25%) is missing.

    Proviso was inserted under section 22(2) of the Tax Ordinance by Finance Act, 2020 whereby depreciation on additions to fixed assets made after 01-Jul-2020 would be reduced by 50% However, when entries related to written down values are entered in in depreciation schedule as opening values, the IRIS is calculating depreciation at 50% on total values.

    In addition to above, what lately has been done by FBR is that it has deleted the column of “Adjustment of Refunds”, which is certainly an afterthought while the Manual Tax Returns, which were issued vide SRO 1612(I)/2022 dated 26 August, 2022 do retain the “Column of Tax Return Refund”. There is no explanation or justification for this glaring disparity, which is to be taken care of the clarification of Taxpayers.

    Online Refund Adjustment Column is still not available on Return loaded on IRIS irrespective of the fact that it is available in the SRO issued by Board.

    Profit on debt/interest income on government securities is subject to FTR

  • State Bank agrees to clear invoices up to $50,000: FPCCI

    State Bank agrees to clear invoices up to $50,000: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday said that the State Bank of Pakistan (SBP) has agreed to allow clearance of consignments valuing up to $50,000.

    FPCCI President Irfan Iqbal Sheikh in a statement apprised the entire business, industry and trade community of Pakistan that in a breakthrough achievement from the platform of FPCCI and under the leadership of its Senior Vice President and FPCCI’s focal person on SBP-related matters, Suleman Chawla, “SBP has agreed to clear / settle all the backlog and stuck up payments within two days, which fall under chapters 84 & 85 of the customs tariff; and, if their invoice values are up to fifty thousand dollars.”

    READ MORE: KATI expresses concern over delaying revision in petroleum prices

    Irfan Iqbal Sheikh maintained that FPCCI has been working relentlessly over the past couple of months on the issue of delayed clearance of dollar payments of importers; and, finally after multiple detailed rounds of consultative sessions between FPCCI and SBP, the central bank has agreed, in principle, to at least release all payments in the range of $50,000 or less.

    Suleman Chawla informed that he has also released an official notification from FPCCI on the development to inform all members of the apex body & stakeholders of the lingering issue.

    READ MORE: FBR suggested fixed tax regime for women entrepreneurs

    He added that FPCCI has been receiving numerous calls each day for the past couple of months from across Pakistan and across various sectors affected by the restrictions – which were also impacting raw materials and equipment falling under chapters 84 & 85 – and,FPCCI is expecting that all payments falling under the aforementioned category will be cleared within this week.

    READ MORE: Karachi Chamber urges allowing imports from India

    Suleman Chawla reiterated that the commercial importers and manufacturers have suffered a lot due to the restrictions as these were announced abruptly and without any homework or consultation. Authorities should have been meticulously selective in implementation of the restrictions to only luxury items; which, in turn, would have saved the business community millions of dollars in demurrages, container charges and lost export orders, he added.

    READ MORE: FPCCI rejects central bank’s claim of ‘no import restriction’

  • FPCCI rejects central bank’s claim of ‘no import restriction’

    FPCCI rejects central bank’s claim of ‘no import restriction’

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday strongly rejected the claim of the central bank regarding no restriction on imports.

    FPCCI’s acting president, Suleman Chawla in a statement categorically refuted the claims and assertions made by the State Bank of Pakistan (SBP) that there are no restrictions in place on import of raw materials.

    READ MORE: No restriction on imports, SBP clarifies

    Import payments not being cleared swiftly by SBP are resulting in disruptions in industrial production; unbearable demurrages and container charges; loss-making delays in fulfillment of export orders; inflationary pressures in the domestic markets and compounding of discouraging investor sentiments, he added.

    Acting FPCCI Chief explained that due to the unavailability of foreign exchange, continuous rupee depreciation, speculative trading and delays by SBP, manufacturers and commercial importers are in a jeopardy and exports have started to fall. The country will suffer due to the dwindling exports, increasing trade deficit and yawning current account deficit (CAD), he added.

    READ MORE: Pakistan’s apex body wants fixed exchange rate regime

    Suleman Chawla has maintained that SBP has failed in exercising its constitutional duties of effectively regulating the commercial banks through various policy tools at its disposal; and, commercial banks are making windfall profits through speculative trading of dollars.

    FPCCI has time and again reminded SBP, in no uncertain terms, of their responsibilities to control commercial banks; but, it is always unfruitful & goes in vain, he added.

    Acting FPCCI President emphasized that dollar is trading in the open market at a premium of PKR. 8 – 10 and it is a glaring testimony of the fact that the importers are not being able to source the dollars that they need to fulfill their import contracts and related commercial transactional procedures from the banking channels. It will only aggravate the situation and promote the informal open market, he added.

    READ MORE: KCCI managing committee candidates elected unopposed

    Chawla pointed out that there are still difficulties in opening LCs with commercial banks under chapter 84 & 85 of the custom tariff; despite the claimed circular issued by SBP to the commercial banks and that reflects badly on SBP’s ability to implement its regulatory role. However, he emphasized, SBP has all the means and policy tools to implement its decisions & circulars.

    Engr. M. A. Jabbar, VP FPCCI, highlighted that despite taking responsibility of its failure, SBP has resorted to blaming the industrialists and their representatives; who are already under unprecedented strains due to the various other factors in addition to the dearth of dollars in the banking channel.

    READ MORE: APTMA demands immediate release of textile machinery

    Engr. Jabbar added that FPCCI sees SBP’s conduct as detrimental to industrial growth, an utter lack of responsibility, insensitivities to people’s sufferings due to depleting employment opportunities, debilitating inflation and counterintuitive coupled with lack of initiative to fulfill its mandated duties.

  • Pakistan’s apex body wants fixed exchange rate regime

    Pakistan’s apex body wants fixed exchange rate regime

    KARACHI: The apex trade body of Pakistan on Monday urged the government to reintroduce the regime of fixed exchange rate and stop latest cycle of devaluation of the Pakistani Rupee (PKR) against the US dollar.

    Irfan Iqbal Sheikh, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in a statement emphasized that the government and the State Bank of Pakistan (SBP) should immediately take cognizance of the fact the PKR has entered into a yet another depreciation cycle; and, there is no end in the sight for the falling spree to end as it has fallen for the seventh consecutive session as of Monday.

    FPCCI chief reiterated the earlier demand of FPCCI that if the government and the central bank of the country fail to reign in the ever-falling rupee yet again, the country needs to revert to a fixed exchange rate regime instead of the current free-floating exchange rate mechanism.

    READ MORE: KCCI managing committee candidates elected unopposed

    Irfan Iqbal Sheikh explained that all contractual obligations of manufacturers and commercial importers enter into an uncertain zone when the currency starts to lose value.

    He apprised that the rupee has lost 4 percent value in just five sessions of the last week alone. He wondered that why the government is adamant on taking no action over this clearly anti-people, anti-business, anti-exports and anti-growth phenomenon.

    FPCCI Chief apprised that the differential between inter-bank and open market has widened to PKR. 8 – 10 due to the speculative trading, rumors of further rupee depreciation and week implementation of policy tools by SBP.

    READ MORE: APTMA demands immediate release of textile machinery

    He has also questioned the government to explain how and why they will be able to manage the additional inflationary pressures – which seem inevitable now.

    Irfan Iqbal Sheikh maintained that it is an open secret that the commercial banks are also involved in the speculative trading of dollar and making windfall profits. He has demanded stricter controls over the commercial banks by SBP and it should swing into action immediately.

    READ MORE: Date extension demanded for electricity bills payment

    FPCCI President highlighted that the business, industry and trade community of Pakistan was all hopeful that rupee value will be stabilized after the deal with the IMF on extended finance facility (EFF) is sealed and the combined tranche of 7th& 8th review, i.e. $1.17, billion is disbursed. However, despite the said disbursal, the rupee has not yet been stabilized.

    Irfan Iqbal Sheikh added that economists have a consensus that real effective exchange rate (REER) of the dollar against the rupee is less than PKR. 200 for a dollar; and, for all practical reasons, the current depreciation cycle is the direct result of speculative trading, lack of regulatory oversight and mismanagement of the forex market.

    READ MORE: Power tariff hike termed disaster for industries

  • Businessmen express shock over petroleum price hike in Pakistan

    Businessmen express shock over petroleum price hike in Pakistan

    KARACHI: Businessmen have expresses shock over hike in petroleum prices in Pakistan despite massive reduction in oil prices in international market. 

    The businessmen are in shock and expressed their serious concern over the hike in petroleum products in Pakistan despite the fact that crude oil prices have plunged to below $90 a barrel while the rupee has jumped by around Rs30 versus dollar during the last fortnight, said a statement issued on Wednesday.

    READ MORE: Miftah defends petrol price hike in Pakistan from August 16, 2022

    The chairman of Businessmen Panel (BMP) and former president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mian Anjum Nisar reiterated his demand of passing on relief of cut in oil prices in the global market to the industry, besides bringing key policy rate to a regionally competitive level.

    On Monday night, the federal government announced a hike of Rs6.72 per litre in the price of petrol for the remaining days of August 2022, according to a notification issued by the Ministry of Finance.

    He voiced his concern over the increase in fuel prices despite downward trend in international market. The present government came into power to give relief to the masses, which should be its top priority, as the hike in petroleum prices will trigger inflation in the country.

    READ MORE: New petroleum prices in Pakistan from August 16, 2022

    He said that it was beyond comprehension that why prices were raised despite a reduction in oil prices at the international level, adding that the government should have mercy on poor masses and give them some relief.

    Mian Anjum said when Russia invaded Ukraine last spring, energy experts were predicting that oil prices could reach $200 a barrel, a price that would send the costs of shipping and transportation into the stratosphere and bring the global economy to its knees.

    Now oil prices are lower than they were when the war began, having dropped more than 30 percent in barely two months. The news of a slowing Chinese economy and a cut in Chinese interest rates sent prices down further, to less than $90 a barrel for the American benchmark.

    Gasoline prices have fallen every day over the last nine weeks, to an average of less than $4 nationwide, and prices of jet fuel and diesel are easing as well. That should translate eventually to lower prices for things so that cost of production could come down to a regionally competitive level.

    READ MORE: New petroleum prices in Pakistan from August 1, 2022

    Moreover, a large number of fuel stations remained closed nationwide despite no strike or shortage of petroleum products in the country. He said that oil marketing companies (OMCs) and petroleum dealers have allegedly created an artificial fuel crisis as the coalition government increased petrol prices by Rs6.72 per litre.

    Recent practices suggest they usually stop supplies of petrol and diesel to end-consumers for a couple of hours to make additional profit. However, this time around the suspension lasted for almost an entire day. Many petrol pumps had gone dry by Monday evening and new supplies came on Tuesday afternoon.

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former president demanded the government to reduce petroleum prices without any delay.

    He demanded that the government should slash the prices of the petroleum products immediately as the international oil prices have substantively come down; and, the benefit needs to be shifted to the masses.

    He noted with a sigh of relief that oil prices are now under $90 per barrel. The move will bring down the inflation in a much more effective and tangible manner than raising the interest rate to a 14-year high of 15 percent, he added.

    Mian Anjum emphasized that the full force of the multiplier effect of the raise of the petroleum products has not yet materialized in Pakistan and inflation will keep rising in coming weeks if the relief from international market is not shifted to the end consumer.

    READ MORE: New petroleum prices in Pakistan from July 15, 2022

    FPCCI former chief explained that global macroeconomic sentiments are not optimistic and growth forecasts have been significantly lowered to the tune of being recessionary; and, the phenomenon may drive the international oil prices even lower than $90 per barrel in coming weeks. However, he maintained, we have to tread a cautious path and gradually but progressively lower the domestic petroleum prices.

    The BMP Chairman called for the prudent and diligent regulation of the markets to allow the country to benefit from the downward trends in international oil prices, edible oils and initial signs of receding supply constraints in some other commodities.

    He said that our industry already facing cut-throat competition in both national and international markets, as the industry was directly hit by the fluctuation of oil prices, which also directly increase inflation, he said. Its negative impact can be witnessed in the hike of cargo freight charges, which adds cost to the industrial production at all stages, he said.

  • FPCCI demands SBP to check speculative dollar trading

    FPCCI demands SBP to check speculative dollar trading

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday demanded the State Bank of Pakistan (SBP) to check speculative dollar trading.

    FPCCI President Irfan Iqbal Sheikh at a meeting with high level delegation of the SBP visited the Federation House, urged the central bank to use policy tool to check the speculative dollar trading over the past few weeks.

    READ MORE: FPCCI warns factories closure as rupee crashes against dollar

    The senior management of the SBP led by Governor (A) Dr. Murtaza Syed and comprising, among others, Deputy Governors Dr. Inayat Hussain and Ms. Sima Kamil visited the FPCCI to discuss current economic challenges and the measures being taken by the Government and SBP.

    President FPCCI Mr. Irfan Iqbal Sheikh in his inaugural remarks welcomed Dr. Syed and the senior management of the central bank for their visit to the FPCCI.

    Shedding light on current business scenario from FPCCI perspective, he requested the Governor (A) to use policy tools available at the central bank’s disposal to check the speculative dollar trading over the past few weeks.

    He observed that importers, manufacturers and industries were at the receiving end due to speculative nature & unavailability of dollars, shortage of industrial raw materials and the resultant disruptions in the production processes.

    READ MORE: Foreign investors discuss economic situation with SBP

    Irfan maintained that over the past several weeks the commercial banks have been offering LCs to importers at the rates higher than inter-bank rates and requested the SBP to play its role for course correction.

    Dr. Murtaza Syed, Governor (A) State Bank of Pakistan (SBP) has announced the formation of a committee and appointment of an SBP liaison officer for close coordination with the FPCCI and timely redressal of grievances of business committee. He made this announcement during his visit to the FPCCI on the invitation of their management.

    The Governor (A) appreciated business community for their endurance in facing the challenges posed by both international and domestic events and ensured that SBP will provide them its full support by addressing their concerns as much as possible.

    The Governor (A) in his address apprised the audience that staff-level IMF agreement is already in place and the board-level approval is expected in the third week of August as their board will meet after their vacations in the first-half of August are over.

    READ MORE: SBP introduces foreign currency, rupee value business accounts

    He added that SBP believes that rupee is undervalued at the moment and dollar has overshot in the forex market due to several reasons; however, he hoped that it will come down to its real value in 2 – 3 months. He invited the business community to sit together with the SBP for a constructive consultative process and give suggestions on prevailing economic situation, foreign exchange and other related issues.

    Dr. Syed also assured the participants to look into technical requirement of prior approvals required by the commercial banks from SBP on the clearance of financial documents of the consignments with the H.S. Codes starting with 84 & 85 as these restrictions were affecting the import of tractor parts and other agricultural machinery as well.

    A senior SBP official highlighted the support extended to the businesses in general and to the exporters in particular. SBP enhanced short term Export Refinance limits from Rs432 billion to Rs857 billion in just last four years reflecting an increase of almost 100 per cent. Likewise, outstanding stock of SBP’s long term fixed rate financing for the exporters (LTFF) has also witnessed an increase from Rs209 billion to Rs329 billion in last three years reflecting 57 per cent growth.

    The Federation acknowledged that Temporary Economic Refinance Facility (TERF) massively helped in stimulating investment and boosting economy in the backdrop of COVID-19. It will not be out of context to mention that most of the business entities availed TERF at rates far below than the maximum cap of 5 per cent.

    READ MORE: OICCI suggests duty cut on locally manufactured cars

    The overwhelming success of TERF indicated that it was successful in filling the gap for long term investment in the country. An amount of Rs436 billion had been approved under this facility for 628 businesses.

    The FPCCI members raised certain questions which were comprehensively answered by the senior SBP management during the meeting and ensured the FPCCI members that the senior management of the central bank was always available to listen to their issues and resolve them on priority. On a question regarding expiry of SBP’s Refinance Facility for Renewable Energy, the Federation was informed that the scheme has been extended till June 2024.

    In the end, the President FPCCI submitted some suggestions for consideration of the SBP. The Governor (A) assured to look into the merits of these suggestions and take a decision soon.