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  • FPCCI demands extending refinance scheme for three months to support employment

    FPCCI demands extending refinance scheme for three months to support employment

    KARACHI: The business community has demanded the State Bank of Pakistan (SBP) of extending refinance scheme, which was introduced to prevent layoff owing to coronavirus outbreak, for further three months.

    The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) in a statement on Tuesday urged the central bank to consider extension in refinance scheme to support employees and prevent layoff of workers due outbreak of coronavirus, by December 31, 2020.

    Mian Anjum Nisar, President FPCCI while appreciating the initiative of SBP for introducing Refinance Scheme, which had helped many industrial and service oriented sectors to retain employees during Corona pandemic, stated that since the companies that availed this credit facility through banks have not been recovered from devastating economic impact of covid-19, it would be advisable if Ministry of Finance keep shouldering with SBP and extend this Scheme till end of the year.

    “In many of the countries, the second wave of Corona Virus has already started, Pakistan not being the case of exception, should be prepared to take proactive precautionary in view of increase in corona patients from 4500 in August to more than 1000 in September.

    “Therefore, discontinuation of this facility on September 30, 2020, would not serve the purposes,” added President FPCCI.

    Nisar further added that before discontinuing credit facility on concessional markup rate, Ministry of Finance and SBP need to review the prevailing economic situation closely as such the small and medium sized businesses have not been able to regain pre-corona economic stability. Further, processing of documentation and furnishing of employees’ data to avail credit facility was also a time consuming activity.

    Therefore, withdrawal of this facility at this stage would neither be in the interest of private sector nor in the interest of the Government that aimed at controlling unemployment situation in the country.

    Under the SBP’s Refinance Scheme to Support Employment and Prevent Layoff of Workers due to the impact of COVID-19, businesses that commit to not lay off workers in the next three months can avail credit through banks for the three months of wages and salaries expenses at a concessional markup rate.

  • FPCCI lambasts shipping companies, terminal operators for unfriendly behavior

    FPCCI lambasts shipping companies, terminal operators for unfriendly behavior

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lambasted shipping companies and terminal operators for their non-cooperative behavior in trade facilitation, a statement said on Monday.

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  • Iran ready for barter trade with Pakistan

    Iran ready for barter trade with Pakistan

    KARACHI: Iran is ready for barter trade with Pakistan to strengthen the economic ties between the two neighboring countries. Iranian Consul General Reza Nazeri has stressed the need for strengthening trade ties between two neighboring countries, saying Iran is ready for barter trade and it will export petrochemical, steel and LPG to Pakistan while importing rice, meat and other agriculture products from Pakistan.

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  • FPCCI praises SBP for timely action to avert coronavirus impact

    FPCCI praises SBP for timely action to avert coronavirus impact

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has praised State Bank of Pakistan (SBP) for timely action to minimize adverse impact of coronavirus on trade and industry, a statement said on Monday.

    “However, implementation of such measures is required to reach at the grass root level,” said Khurram Ijaz, Vice President, FPCCI, while chairing webinar on ‘Implications of Covid-19 on the Financial Market/Institutions of Pakistan.’

    He said that outbreak of Coronavirus has not only affected the trade and industry of Pakistan, but drastically declined the performance of the financial market and major economic indicators in the economy.

    During discussing, Arjumand Qazi, Group Head (SME)- Pak Brunei Investment said that SBP has indeed extended maximum support to the trade and industry in term of designing and announcing effective financing schemes since April 2020.

    However, commercial banks and other financial institutions are still reluctant to extend such facilities to rural businesses.

    Khurram Shehzad renowned financial expert appreciated SBP’s measure to decrease the interest rate from 13 percent to almost 7 percent in last 6 months.

    He said that it is high time that commercial banks, investment companies and other stakeholders of the financial market play their part in the economic and financial survival of the economy.

    Hasan Raza, Head of Project Management in Research Dept. Pakistan Stock Exchange (PSX) said that Pakistan Stock Exchange fell down to 27000 index point in February 2020 at the start of the lockdown, but with the efforts of PSX, the KSE index point has reached upto 40,000 index point in August 2020.

    He further shared information regarding newly launched mutual funds and new Sukuk bonds in 2020.

    While expressing his views, Zubair Haider Sheikh, Head of Cooperate & Investment Banking-Dubai Islamic Bank said that as the country is moving back to normal activities amid ease of lockdown in the economy, the commercial banks must come upfront to expand Temporary Economic Refinance Facility (TERF) as well as long term financing schemes to the masses.

    Ahsan Mahenti, Managing Director, Arif Habib Commodities while appreciating SBP’s initiatives to fight the financial losses bared by the business during lockdown however, there is still need of incentive driven policies to support the corporate sector as well.

    Participants of the webinar included Ali Kamal, Head of Research National Investment Trust (NIT), Imran Khali, Chairman Pak-Maldives Business Councils of FPCCI, Shabbir Mansha, Convener FPCCI Standing Committee on Custom Affairs, Amber Paracha Head of Credit Risk Management of Pak-Brunei Investment, members Trade Bodies and prominent members of FPCCI appreciated the initiative by FPCCI for conducting such informative seminars on various topics economic issues highlighting the problems and solutions which is highly commendable.

  • Iqbal Tabish appointed as FPCCI secretary general

    Iqbal Tabish appointed as FPCCI secretary general

    KARACHI: Muhammad Iqbal Tabish has been appointed as general secretary of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) with effect from August 19, 2020, said a statement.

    FPCCI president Mian Anjum Nisar appointed Muhammad Iqbal Tabish as the Secretary General of the organization in accordance with rules and procedures laid out in Trade Organization Ordinance of Pakistan.

    The appointment of Iqbal Tabish has been termed as a hopeful prospect for FPCCI in view of his wide experience of working with public and private organizations at national and international level.

    Prior to assuming office of the Secretary General FPCCI, Iqbal Tabish has served in Ministry of Industries and Production as Chief Executive Officer of Pakistan Industrial Development Corporation (PIDC) and Secretary General SAARC Chamber of Commerce and Industry.

    He has also worked as a Senior Economist and Head (R&I) at WTO Cell of Trade Development Authority of Pakistan, Ministry of Commerce and has been associated with FPCCI as Director (R&D) in addition to other important assignments.

    Iqbal Tabish has a long term association with National and International organizations, which included Member, Economic Advisory Council (UNESCAP), Observer on World Banks’ Investment Climate Fund’s Program on Climate Resilience, Stakeholder Advisory Network-CIF, Steering Committee Member of Sweden Standards Institute (South and East Asia) and has been regular invitee to Expert Group Meetings on SAFTA, Honorary Secretary General, China-South Asia Business Council for Promotion of International Trade (CCPIT), Yunnan and Sichuan Province of Peoples’ Republic of China and Member, Advisory Committee of SAARC Trade Portal Network of GIZ in addition to involvement in projects of UNDP and World Bank Group.

    Scholastically enriched, Iqbal Tabish is a Ph. D Scholar in a leading university and holds M. Phil Degree in Management Sciences (Finance) along with Master Degree in the faculty of Economics as well as Business Administration.

    He has contributed in the development of literature on trade, economics, intra-regional transport and connectivity, energy, climate change and author of several publications in the similar areas.

  • NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    NBP makes payment realization mandatory for goods clearance; FPCCI fears delays

    KARACHI: Payment realization against financial instruments has been made mandatory for clearance of imported goods from August 10, 2020.

    In this regard National Bank of Pakistan (NBP) has issued necessary instructions to its branches receiving duty and taxes, customs clearing agents and other stakeholders.

    While referring to Federal Treasury Rules, the NBP said that it had observed the custom authorized branches of the bank after the introduction of WeBOC system were not adhering to the rules and Goods Declarations (GDs) were being issued against collection of clearing instruments.

    “A further clarification regarding the issue has also been take from State Bank of Pakistan (SBP), and the central bank had also advised to enforce Federal Treasury Rule 79 (1) (a),” the bank said.

    The NBP issued instructions to all its branches to ensure that only preliminary acknowledgement of the receipt of the cheque / payment order should be given on the prescribed form at the time of receipt of clearing instrument. “Posting in WeBOC and issuance of GD will be subject to clearing.”

    Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a statement on Saturday expressed its concerns over the instructions issued by the NBP and said it would cause unnecessary delays for clearance of consignments and also increase cost in terms of port charges.

    Chairman of FPCCI’s Committee on Customs Shabbir Mansha said that for the past 70 years a system for payment of duty and taxes was operational.

    The sudden change in procedure will cause delay of consignment clearance and business community will pay additional charges for procedural delays.

    He surprised over the implementation of revised procedure especially at a time when trade was badly hampered due to COVID pandemic.

    “The payment procedure will affect international trade and a bulk of containers will be stuck up at ports,” he added.

    He said that the revised procedure was not practical because fluctuation in exchange rate was routine matter in the country. He said that importer make payment through financial instrument on the basis of prevailing of exchange rate and as per revised procedure the on the date of payment realization the exchange rate may be vary on the date of submission of the financial instrument. “In such a scenario the customs authorities will demand payment order for the exchange rate differential amount, he added.

    He lamented that in revised scenario the importer would face huge demurrage and detention charges despite duty and taxes paid through payment order.

    The FPCCI urged Prime Minister of Pakistan and State Bank of Pakistan to intervene into the matter and defer the implementation of revised payment mechanism.

  • Tenure extension request of trade bodies rejected: Razak Dawood

    Tenure extension request of trade bodies rejected: Razak Dawood

    KARACHI: Abdul Razzak Dawood, Advisor to Prime Minister on Commerce and Investment, has said that there is no provision in the law to extend tenure of trade bodies.

    “There is no consideration of extending tenure of trade bodies office bearers and even the law doesn’t allow such proposal,” a statement issued by United Business Group (UBG) on Monday quoting the advisor.

    He was talking to a delegation led by Patron in Chief of United Business Group (UBG) and former Chief Executive of Trade Development Authority of Pakistan (TDAP) SM Muneer.

    Secretary Commerce Salih Farooqui, Former Presidents of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Zubair Tufail, Abdul Rauf Alam, Khalid Tawab, Sohail Altaf, Zafar Bakhtayari and Malik Sohail Hussain were also present at the occasion.

    Dawood mentioned that office bearers of FPCCI and some other trade bodies have brought the idea to extend the term of their office for one more year in the backdrop of Coronavirus pandemic situation but it was rejected because there is no any provision in the related laws.

    While answering a question asked from the delegation he clearly said that elections of trade bodies would held on the time as the Trade Bodies Ordinance provides one year tenure for the office bearers.

    In the meeting SM Muneer applauded the measure to curb coronavirus taken bay Prime Minister Imran Khan and his team.

    He said that with the grace of Almighty now the spread of infection is under control, however another high spread is feared during Eid ul Adha. “People should follow the SOPs and precautions to avoid any break out,” he added.

    SM Muneer said that gradually the virus spread is lowering down globally and more exports orders were expected.

    He said that this the time to activate related TDAP official and commercial attachés globally to avail the opportunity.

  • FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    FPCCI expresses concerns over grant of huge exemptions to FTAs, PTAs

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over huge amount of exemptions, concessions granted under Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTA).

    The apex trade body urged the government to redesign the FTAs and PTAs with a view to promote the domestic industry of Pakistan, as the government has suffered revenue loss of over Rs45 billion during FY 2019-20 due to these agreements signed with different countries.

    Moreover, the general exemption on imports from China under this agreement has caused revenue loss of Rs 26.86 billion during this period.

    FPCCI President Mian Anjum Nisar suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    He recommended the government to include maximum finished goods which can be exported to China on tariff line offered by China to ASEAN countries.

    He demanded that the concerned stakeholders should also be taken on board while framing and finalizing the recommendations in this regard.

    Referring to the data of the Federal Board of Revenue, he stated that the government has suffered revenue loss of Rs 45.020 billion during current fiscal year due to the FTAs and PTAs signed with different countries.

    According to the reports, figures reveal that the general exemption on import from SAARC countries caused revenue loss of Rs 231 million during this period.

    The general exemption on import from SAARC countries under SAFTA Agreement has revenue impact of Rs1.602 billion.

    Similarly, the general exemption on import from SAARC countries under SAFTA Agreement caused revenue loss of Rs 15 million.

    The general exemption on import from China under the FTA has revenue impact of Rs6.911 billion during 2019-20.

    The general exemption on import from Malaysia under PTA caused revenue loss of Rs 2.517 billion during this period. Under the exemption on import from Indonesia under Pak-Indonesia PTA caused revenue loss of Rs3.65 billion.

    Mian Anjum Nisar suggested the government to devise a strategy in the light of impact on domestic industry, convincing other countries to liberalize their import policy by reducing tariff lines and easing sensitive list for Pakistan merchandise.

    He said that during the first phase of FTA with China, Pakistan’s trade deficit had improved from 2.9 billion dollar to over 12 billion dollars over the last decade.

    He suggested that Pakistan should have entered into Free Trade Agreements and Preferential Trade Agreements with only those countries where it has a clear and mutual competitive advantage.

    FPCCI President said that local cost of production is already high on account of high tariff of electricity and gas, coupled with import duties on inputs, making the local production uncompetitive.

    He said that Free Trade Agreements signed with different countries without taking the real stakeholders onboard, are damaging the local industry, as imports of several products under FTA with these countries are subject to zero percent import duty.

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  • FPCCI advises central bank to bring down interest rate to 5 percent

    FPCCI advises central bank to bring down interest rate to 5 percent

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has advised the State Bank of Pakistan (SBP) to bring down the key policy rate at 5 percent considering the prevailing situation due to coronavirus.

    FPCCI president Mian Anjum Nisar on Friday appreciated the SBP for slashing key policy rate by 100 basis points to 7 percent in an unscheduled meeting of Monetary Policy Committee which has so far slashed the key interest rate by 6.25 percent from 13.25 percent since March 17, 2020.

    He said the rate cut is a welcome move, but only 100bps (basis points) cut is not enough. In the prevailing circumstances, interest rate at 7 percent is not feasible for the businesses, he said.

    “FPCCI hopes the central bank will consider the plights of the business community and rates would be brought to 5 percent soon,” he added.

    He said that the businessmen’s apex body welcomes the central bank’s move to cut the interest rates by 1 percent, urging it to bring discount rate to at least 5 percent in line with global financial trend.

    “This is commendable step of the State Bank, as it has now started shifting toward supporting trade and industrial growth and employment generation which is not possible without sizeable cut in key policy rate,” he added. He said that the banks should now also be advised to follow the lines of SBP immediately accordingly.

    “The banks should be instructed to revise KIBOR on a monthly basis instead of quarterly basis to pass on the benefit of lower rates speedily to the trade and industry, which are struggling to survive, Mian Anjum Nisar suggested and added that the impact on banks on their deposits will be insignificant.

    FPCCI President said that the reduction in policy rate by 6.25 percent since March 17, 2020 is commendable step of the government in the present situation that will positively affect cost of doing business and will encourage the investors and industrialists to make new investment in the country.

    The president FPCCI also said that the pandemic COVID-19 has affected the global economy and pushed to the depression resulting contraction in the economic activities and a threat to unemployment.

    He asked the SBP to go the extra mile in these arduous times and leave no stone unturned in providing relief to the financially distressed businesses.

  • FPCCI seeks intervention to prevent Pak Rupee depreciation

    FPCCI seeks intervention to prevent Pak Rupee depreciation

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has urged the government to immediately control the depreciation of Pak Rupee.

    FPCCI President Mian Anjum Nisar has urged the government to control surge of dollar against Pakistani currency, as the rupee has dropped to more than two-month low of 167.65 against greenback in the interbank market while it has fallen to 168 versus the US dollar in the open trade.

    FPCCI President, in a statement issued here on Wednesday, observed that the rupee has dropped by Rs1.08 against the dollar in a single session in the interbank market, falling to 167.77, a level last seen in the start of April.

    He said that huge depreciation of Rupee continued to damage national economy, as the cost of deals done by the businessmen with their foreign counterparts has increased manifold due to massive fall of rupee against dollar.

    Apart from increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market, he suggested.

    He said that the rupee has dropped by 2.8 percent or Rs4.55 against the dollar since the start of June, as it was closed at 163.10 at the end of last month.

    Mian Anjum Nisar appreciated the positive development, related to the imports, which have now started decreasing since the last financial year followed by the government’s initiative of imposing regulatory duties.

    He said that the country would hopefully receive multilateral inflows during this week, which could help strengthen the rupee and the foreign exchange reserves, as the government has signed a $1.5 billion loan agreement with the World Bank, Asian Development Bank and Asian Infrastructure Investment Bank.

    FPCCI President said that excessive government borrowing, absence of foreign flows, lack of foreign investment and the huge current account deficit are the vital reasons for constant depreciation of Pak rupee.

    Terming rupee depreciation against dollar a mysterious development, the leader of business community said that continued fall of rupee is not understandable with a fact that there was no fundamental change in country’s imports during last few months while other economic indicators are also same for a long time.

    He said that the local currency has been under pressure due to falling foreign exchange reserves and increasing outflows amid foreign debt repayments.

    The SBP’s foreign exchange reserves have been under pressure due to external debt repayments recently, which were dropped to $10.1 billion as of June 12 from $12.3 billion on May 8.

    Mian Anjum Nisar was of the view that State Bank of Pakistan and Ministry of Finance will have to remain vigilant in this regard.

    Besides this, the SBP and the government also need to intervene and come up with policy reforms to control depreciation of rupee which is becoming more and more valueless.