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Tag: FPCCI

  • SBP urged to extend refinance scheme for salary payments

    SBP urged to extend refinance scheme for salary payments

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday urged the central bank to extend the refinance scheme which was introduced for businesses in order to reduce the adverse impact of coronavirus pandemic.

    The FPCCI said that the State Bank of Pakistan (SBP) should extend the refinance scheme by one year for payment of wages and salaries, launched to support employees and prevent layoffs due to the COVID-19 outbreak in Pakistan.

    FPCCI President Mian Nasser Hyatt Maggo appreciated the initiative of SBP; introducing schemes like salary payments, deferred loans, introduction of temporary economic refinance facilities etc. to resolve the cash flow problems of businessmen and industrialists.

    He added that these schemes helped many industrial and service oriented sectors to retain employees during the Corona pandemic period. Under this scheme, SBP has released Rs. 238 billion to the private sector.

    While commenting on the refinance scheme for payment of wages and salaries, the FPCCI chief said that the aim of this scheme is to prevent layoff by financing wages and salaries of employees (permanent, contractual, daily wagers as well as outsourced) for all kind of businesses except for the government entities, public sector enterprises, autonomous bodies and deposit taking financial institutions.

    Since the companies that availed this credit facility through banks have not been recovered from the devastating economic impact of COVID-19, it would be advisable if SBP extend this scheme for more one year.

  • FPCCI laments FBR’s non-serious behavior in taxpayers’ facilitation

    FPCCI laments FBR’s non-serious behavior in taxpayers’ facilitation

    KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has strongly criticized the Federal Board of Revenue (FBR) for its lack of responsiveness in addressing taxpayers’ concerns.

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  • Customs reluctant to give WeBOC access to ANF

    Customs reluctant to give WeBOC access to ANF

    KARACHI: Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotics Force (ANF) said that the force has not direct access to export related documents on Customs online system i.e. WeBOC, according to a statement issued on Saturday.

    He said that ANF does not require any sort of undertaking or affidavit from a clearing agent or exporter. “If somebody from the terminal operators demands such a document then it is not under the instruction of ANF,” he said while talking to office bearers of Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

    While responding to the issues raised by participants of the meeting, said that it is high time to put combined efforts into the development of the economy in Pakistan.

    He further informed that drug smuggling is a transnational crime. Federal Board of Revenue (FBR), Customs, Coast Guards, ANF and other departments are working under their authorities. “We do not receive BL, invoice, or other documents, and Customs are reluctant to permit us access to the WeBOC system,” he added.

    Mian Nasser Hyatt Maggo, President of FPCCI while welcoming Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi stated that repacking of the exported goods after examination caused delays, cost and confidence of the buyers.

    The President FPCCI also appreciated the working of the force especially during the lockdown due to COVID-19. He added that the problems of the trade to the extent of 70 – 80 percent have been solved due to cooperation of the force officials.

    However there are still some problems being faced by the trade and industry such as repacking of the export cargo after examination by ANF.

    The export cargo after examination is usually stuffed and the worthy factory packing is disturbed due to which there are complaints from the buyers that the packing of the goods is not satisfactory.

    There is a need of updating the information of precursor chemicals within the ANF staff working at ports. This may be achieved with joint sessions of ANF and stakeholders.

    There should be a fixed time period by the ANF for breaking the seal of the container so that the clearing agent may line himself up for examination accordingly. This will also save the exporter from shutting out of his containers by the shipping agents and could be exported in time.

    The meeting was attended by Athar Sultan Chawla, Arif Jeeva Vice Presidents, Muhammad Ayub in charge of the port control unit Anti-Narcotics Force Khurram Ijaz, Waseem Vohra former Vice Presidents and Shabbir Mansha,

    Convener FPCCI Committee on Customs. Meeting was concluded with the presentation of FPCCI crest to the Brigadier Syed Waqar Haider Rizvi, Force Commander Anti Narcotic Force Karachi.

  • Turkish envoy holds meetings with FPCCI, KCCI members to boost bilateral trade

    Turkish envoy holds meetings with FPCCI, KCCI members to boost bilateral trade

    KARACHI: Consul General of Turkey Tolga UCAK on Tuesday held meetings with members of leading trade bodies of Pakistan to discuss possibilities of enhancing trade and commercial ties between the two countries.

    During his visit to Federation of Pakistan Chambers of Commerce and Industry (FPCCI) commenting on the proposals of FPCCI President Mian Nasser Hyatt Maggo, the Consul General informed that there will be an inauguration of the services of Cargo Train between Istanbul and Islamabad with transit time of 9-10 days. This initiative will go a long way in promotion of bilateral trade.

    He also offered to organize road show in Pakistan with attracting Turkish Products. He was optimistic that in the post coronavirus the volume of bilateral trade will be further enhanced for which we have to prepare ourselves and make plans of future activities.

    He assured his full support to the initiative undertaken by FPCCI and its JBC for the joint activities between both countries.

    During his visit to Karachi Chamber of Commerce and Industry (KCCI), Tolga UCAK stressed the need to encourage joint ventures in different sectors of the economy whereas Turkey can also assist in setting up a tram service system in Karachi, particularly at the coastal line of sea view, which would change the face of Karachi and become a tourists’ attraction.

    While expressing keenness to strengthen trade and investment ties between the business communities of the two countries, Turkish CG assured that the commercial section of Turkish Consulate in Karachi was ready to fully assist Karachi’s business & industrial community intending to improve trade and investment ties with their Turkish counterparts.

    To deal with trade-related conflicts and protect the interest of customers, he suggested to form a private-to-private sector committee between the two countries

  • Industry rejects shutting down gas supply decision

    Industry rejects shutting down gas supply decision

    KARACHI: Trade and industry on Monday strongly rejected the government decision of discontinuing gas supply for export and manufacturing sectors.

    The industry will face the ever severe situation in the wake of discontinuation of gas supply to captive power generation for general industry from February 01 and the export-oriented sectors from March 01, 2021 leaving severe impact on the economy and exports of Pakistan.

    This was stated by Mian Nasser Hyatt Maggo, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) addressing a Press Conference.

    The President FPCCI also accompanied by President Karachi Chamber of Commerce and Industry Shariq Vohra and other business leaders.

    All the business leaders vehemently rejected the cabinet decision and appealed Prime Minister to revisit this decision in the best interest of the survival of industry and for enhancement of Pakistan’s export and creating employment in the country.

    He further went on saying that industry is already confronted with many challenges particularly with respect to procurement of long term orders for the exports.

    However, the Pakistan’s exports when witnessing a growth this decision has badly affected confidence of foreign buyers and asking for completion of their orders and it is apprehended the export orders are likely to shift elsewhere to the other competing countries.

    He also quoted that Pakistan utility tariff is comparatively very high than the other regional countries.

    He further said that transferring electricity from captive power to grid will take time and costly not feasible as the cost of electricity generated by our captive powers is lower than the cost involved in shifting to grid.

    Most of the industries were running on natural gas using boilers and regeneration system so it was impossible to be converted on the grid and change the whole appliances within one month.

    Mian Nasser Hyatt Maggo stated that the decision of Cabinet Committee on Energy (CCOE) appears to have been taken on non-professional advice and without consultation of main stakeholders that is businessmen and apex bodies. He further said that this decision will not only harm the economy of Pakistan but will also damage our image with international buyers which seem a conspiracy against the progress made by Pakistan in the last two years by the present government.

    While addressing the press conference, Shariq Vohra, President KCCI showed surprise on the decision and stated that they would not allowed K-electric sabotage Karachi’s progress and development and both representative from Karachi Chamber strongly emphasized that government should not take such decisions that create labor unrest due to closures of factories.

  • FPCCI resents electricity tariff hike, gas supply shortage

    FPCCI resents electricity tariff hike, gas supply shortage

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has resented increase in electricity tariff and supply shortage of gas to industry.

    Mian Nasser Hyatt Maggo, President FPCCI in a statement on Friday expressed concerns over electricity tariff hike and disconnection of gas for the industry.

    He said that instead of reforming the energy sector, the adhoc and painful decisions are being made detriment to domestic industry.

    He said that the much awaited outcome of negotiations between IPPs and government which was considered to be directed towards reduction in base tariff do not assures any decrease in the base tariff, which again is shocking outcome questionable as the private sector was of the view that the report published on IPPs which was required to be further expanded towards the eventual objectives of resulting in the reduced cost of energy for increasing the competitiveness of economy and mitigating the inflationary trapped and consumption requirement of the poor segment of the economy.

    He said that the spokesman on the energy has attributed the need of tariff hike due to bad and corrupt agreements made with IPPs in the past. He said that if so, such situation requires to be corrected through invoking all the civil and criminal remedies to correct the agreements by excluding the pay or take, reducing O&M cost, converting the repatriation cost from dollar indexation to rupee and relevant recommended measures in the report.

    He said that while appreciating the present government in ordering the inquiry in respect of agreement with IPPs, the outcome does not appear to be reciprocating for base tariff reduction and availability of electricity sale at reduced cost.

    He further said that the announcement of Rs40 billion per year off-take of financial burden on Government is marginal even against the present announced tariff base hike wherein one rupee hike is over charging consumers of Rs 100 billion on consumption of electricity.

    President FPCCI also said that such on & off increase in tariff is coming in the way of economic development, in specific loaded by the carried forward adverse effect of COVID-19.

    The hike if is linked to any part of the memorandum of understanding with IMF can be fairly convinced for freezing such tariff hike when IMF itself projected low economic growth. Such duplicity cannot be justified.

    On the other side the predictable outward and inward oriented trade has become hostage of keep on increasing gas prices and intending to disconnect the gas supply of captive power plants.

    He said that mismanaged RLNG cargoes by the Petroleum Division are also answerable to such abrupt and non-justified late decisions. He said that during last November the spokesman on energy and petroleum had promised that increasing demand of gas in the winter season will be met through increase in RLNG imports.

    It appears that this non-living promise has forced Government to take decision of disconnecting the gas for captive power of industry. The setting of the deadline for disconnection of gas from February 1, 2021and 1st March 2021 is too short time to adjust.

    He said that some industry is running on captive powers with some emergency required grid loads need more time to arrange all the equipment’s and settle all the requirements of Discos which would take considerable time.

    He said that even CPP’s of industry with equivalent power arrangement from Grid also requires back-up adjustments of power by the Discos which is again time consuming.

    Mian Nasser Hyatt Maggo, President FPCCI proposed that the time period provided be extended reasonably in order to shift to Grid power. He said that the penalty of bad agreements with IPPs on capacity and take or pay clauses is being shifted to industry with their self-generation through captive power plants which basically is assurance for reliability and un-interrupted supply.

    Discos have yet to claim such performance to supply un-interrupted electricity without load shedding. He said that government spokesman has claimed saving of 150 MMCFD gas by disconnecting CPPs of industry, while the gas leakages in the systems are four times of this saving of 150 MMCD.

    He wondered that if there is any efficiency in the management over sighting the political economy of the gas affairs.

    He further suggested that even if the government reduces gas loss by one-fourth, the abrupt imposition of such decision may not have been required to adversely affect the industrial economy.

  • Duty, tax above Rs1 million made mandatory through e-payment

    Duty, tax above Rs1 million made mandatory through e-payment

    KARACHI: The payment duty and taxes amounting above Rs1 million has been made mandatory through the electronic mode from January 20, 2021, said Wajid Ali, Director General, Reforms and Automation, Federal Board of Revenue (FBR).

    At a meeting with members of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Wajid Ali said that the online system was introduced through a procedure in 2017 in collaboration with the State Bank of Pakistan (SBP), a statement said on Thursday.

    This system is connected with the WeBOC and payment of taxes can be made by pay orders and cash to create a balance.

    Such procedures are already adopted by a number of countries worldwide. The system is operated by a unique ID which is called a PSID number issued to the relevant users who are connected to approximately 16000 different branches of the relevant bank across Pakistan.

    In order to further ease the payment of taxes, the system is also supported by easy paisa / OTC on a mobile phone to the users as well and the facility through this system is available with the taxpayers on the basis of 24/7.

    No drastic adoption of the system was observed last year by the users and in order to enforce the online payment by the system, it is now automated in such a way that the payment of taxes beyond Rs. 1 million cannot be made through the old system of payment of taxes.

    “It is, therefore, mandatory to the taxpayers that they are bound to get PSID number if the amount of taxes to be paid accedes Rs. 1 million or above,” he added.

    The last date to adopt the new system by the taxpayers is January 20, 2021, as announced by the FBR so that the payment of taxes may be made more effective and transparent.

    This will also ease to compile the statistical data relating to revenue collection within no time. At present now 22 percent of the collection of taxes is being carried out with the help of a new electronic system and it is not out of place to mention that positive feedback is coming in from the taxpayers who are already using the facility.

    Mian Nasser Hyatt Maggo President, FPCCI appreciated Pakistan Revenue Automation Private Limited (PRAL) for improving ease of doing business and facilitating the business industry while presiding the meeting of FPCCI Standing Committee on Customs headed by Shabbir Hassan Mansha.

    He further said when it comes to business endeavors every business person has to deal with Customs, FBR, and SBP.

    Most people are confused by the complexity of processes. The meeting expects the experts to disentangle the process complications.

    A team of experts from Pakistan Customs and Pakistan Revenue Automation Private Limited (PRAL) joined FPCCI Head Office, Karachi the in the meeting of FPCCI Standing Committee on Customs, for a presentation with FPCCI member trade bodies across Pakistan simultaneously at FPCCI Head Office Karachi (Chair), Capital Office Islamabad and Regional Offices at Lahore, Peshawar & Quetta via Zoom Link to deliver the presentation.

    The team members include Mr. Wajid Ali, Director General, Reforms & Automation, FBR; Sanaullah Abro, Director Reforms & Automation, and Arshad Hussain, Sr. Manager, PRAL, Customs House, Karachi along with representative of State Bank of Pakistan (SBP).

    The presentation was attended by the trade bodies from all over Pakistan on Zoom.

    In the meantime, the trade bodies were also briefed by the other team members including representatives from the State Bank as to how to adopt the new system with minimum hurdles.

    During the question-answer session, the representatives of trade bodies from all over Pakistan were invited to share their views and queries in this respect. In general, the trade bodies have shown their interest and shown their willingness to register themselves within the newly adopted system of payment of taxes.

    The views were also shared by the representatives of trade bodies via Zoom Link from all FPCCI Stations who were present on Zoom.

    Shabbir Hassan Mansha, Convener, FPCCI Central Standing Committee on Customs informed that his committee will organize more sessions relevant to Customs, and SBP to enhance the knowledge and relevant information on the subject.

    Khurram Ijaz former vice president FPCCI while presenting the vote of thanks to the participants and the experts’ said that a close liaison between the FBR and SBP and trade bodies should be maintained by appointing a focal person from FBR and SBP respectively for the ease of trade.

  • Small traders seek FPCCI help in taxation, lockdown

    Small traders seek FPCCI help in taxation, lockdown

    KARACHI: Small traders have sought help of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in resolving their major issues including taxation and coronavirus related lockdown situation.

    In this regard a delegation of All Karachi Tajir Ittehad (AKTI) under the leadership of Chairman Atiq Mir visited the FPCCI to felicitate Mian Nasser Hyatt Maggo newly elected President of FPCCI on his success.

    The delegation shared its concerns over the issues of taxes, lockdown situation, the anti-encroachment drive of Government, maintenance of infrastructure, emergent situations during urban flooding, and fire incidents.

    Mian Nasser Hyatt Maggo President FPCCI said that unfortunately, the megapolis is lacking the chambers for SMEs, cottage industry, and the small traders, he suggested the step by step actions to resolve the issues of markets and business community, starting from a marked area and creating the best service model and carry on the successfully tested procedure throughout the city.

    He assured the social service of FPCCI to all business community without any discrimination. He proposed the delegation for a workable concept paper to set a line of action.

    The meeting suggested FPCCI, being the head institute of business and industry, to support in markets sustainability and small business enterprises of Karachi.

    A working group may be formed for assessing and resolving the issues under the umbrella of FPCCI.

    The small business sector is willing to avoid protest for their rights if FBR announces to facilitates the taxpayers and implement business-friendly modules of tax collecting.

    Mian Nasser Hyatt Maggo President FPCCI further advised the delegation to produce a pre-budget suggestion paper in the perspective of their issues, which can be included in FPCCI pre-budget recommendations to the Ministry of Finance, Government of Pakistan

    The meeting was attended by Athar Sultan Chawla, Hanif Lakhani Vice Presidents FPCCI and the AKTI members.

  • Magoo elected FPCCI president

    Magoo elected FPCCI president

    KARACHI:  The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday announced the election of Mian Nasser Hyatt Magoo as president of the apex trade body for the year 2021.

    The FPCCI in its Annual General Meeting held on December 31, 2020, at Federation House Karachi wherein the Election Commission announced the results of FPCCI Elections 2021.

    As per the results of FPCCI Elections 2021, Mian Nasser Hyatt Magoo elected as President FPCCI with 180 votes while his opponent Khalid Tawab got 178 votes.

    Khawaja Shazaib Akram elected as Sr. Vice President FPCCI with 197 votes while his opponent Abdul Rauf Mukhtar got 161 votes.

    On the Association seats Athar Sultan Chawla, Hanif Lakhani, Chuhdary Muhammad Saleem, and Muhammad Arif Yousuf Jeva elected as Vice Presidents.

    Adeel Siddiqui elected unopposed as Vice President from Sindh, Muhammad Zahid Shah elected as Vice President from KPK with 18 votes while his opponent Lali Shah got 8 votes, Raja Muhammad Anwar elected as Vice President from Punjab with 28 votes while his opponent Amir Anwar got 12 votes and Nasir Khan elected unopposed as Vice President from Balochistan. On the seat of Women Chamber Farzana Ali Ahmed elected unopposed as Vice President. Competition ties up at Federal Area with 4 votes to Qurban Ali and 4 votes to Naseer Mansoor Qureshi.

  • Amnesty to builders, developers be extended for one year: FPCCI

    Amnesty to builders, developers be extended for one year: FPCCI

    KARACHI: Pakistan’s apex trade body has urged the prime minister to extend the date for availing a tax amnesty for builders and developers for one year.

    Mian Anjum Nisar, President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) while appreciating the Prime Minister of Pakistan for introducing Amnesty Scheme for Construction Industry, said that the scheme has boosted the socio-economic status of daily wagers and supported the construction and its allied sectors.

    It was a tremendous decision for the mitigation of COVID-19 impact over Pakistan. This incentive scheme attracts the builders, developers, and purchasers of housing units and plots who have not availed of it yet.

    Even the negative economic effects of Covid-19 pandemic have not hindered the Construction Industry in providing immediate jobs back to the millions of daily wages earners.

    He informed that Prime Minister Imran Khan had announced the tax amnesty scheme for the real estate and construction sector in April 2020 and will remain valid till 31st December 2020.

    The relief package was for the construction industry with twofold aim of providing employment to daily wage earners, and spurring economic activity.

    Those availing of this scheme need to register with the designated FBR portal since the ordinance was promulgated from April 2020 to December 31, 2020.

    The immunity from declaring the source of income was also available to builders, developers, and the purchasers of the housing societies and projects, and tax on gains on investment had been waived for all citizens who wanted to sell their homes.

    The tax amnesty had been given as part of the Prime Minister Package to lessen the impacts of the COVID-19 outbreak on the construction sector.

    President FPCCI urges the Prime Minister to extend the time period of the Amnesty Scheme for Construction Industry and introduce the same amnesty scheme facility to other sectors and industries.

    This scheme can support the economy of Pakistan during the second wave of COVID-19 and it will proved to be a turning point for the economy of Pakistan & for the revival of the housing and construction industry in Pakistan.

    He further said that if the Amnesty Scheme continues for another year the daily wagers, the most vulnerable segment of the population can get back to work to earn a respectable earning for their families as they were fighting with the second phase of COVID-19 and poverty at the same time.