KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday criticized the central bank for maintaining high policy rate stance.
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FPCCI expresses concerns over power tariff increase decision
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has expressed concerns over government decision to increase electricity charges.
FPCCI President Mian Anjum Nisar in a statement on Saturday urged the government to continue power tariff of 7.5 Cent/Kwh for Zero-rated sector as announced in the January 2019.
He said that upward shift in electricity charges will hurt exports target of US $ 26 billion set under Annual Plan 2019-2020.
The FPCCI president informed that few days back a delegation of FPCCI under him was met with the Prime Minister Imran Khan and he informed the Prime Minister about challenges and difficulties being faced by Pakistan industry.
He informed the Prime Minister that electricity charges in Bangladesh and India are nearly 7-9 Cent/Kwh while in China which is our major trading partner the electricity charges are less than 9 Cent/Kwh.
Similarly, high mark-up rate in Pakistan is also creating hurdles to industrial growth.
Interest rates in Pakistan are 13.25 percent while in India is 5.15 percent, China 4.2 percent and in Bangladesh the rate of interest is 6 percent.
President FPCCI further stated that if the government allow upward shift in electricity rate which is expected to be nearly 70 percent increase in existing 7.5 Cent/Kwh and from January 2019, the exports will be discouraged and our buyer will lose confidence in Pakistani suppliers due delay in exports orders.
He urged the government continuation and consistency in long term policies once it is announced. Changes and revisions hurt the industrialist’s plan of production and purchases and booking of orders which is made according to the policy announcement.
He emphasized the government to review its decision of changes in electricity tariff and continue the rates as announced to support industry.
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FPCCI fears no advantage for Pakistan under Phase-II FTA with China
KARACHI: Federation of Pakistan Chambers of Commerce & Industry (FPCCI) feared that Pakistan would not be able to take advantage of opportunities under Phase II of China Pakistan Free Trade Agreement (CPFTA-II).
Mian Anjum Nisar, President FPCCI and Sheikh Sultan Rehman, Vice President FPCCI said in a statement on Monday expressed fear that Pakistan may not be able to reap benefits under Phase II of China Pakistan Free Trade Agreement (CPFTA-II) despite elimination of duties on 313 tariff lines covering most of Pakistan’s exports.
He pointed out that during Phase I of China Pakistan FTA, the balance of trade remained greatly in favor of China which managed to export 57 percent of its product lines while Pakistan could take advantage of only 5 percent of its product lines.
Pakistan exported US $ 2.1 billion approx. while imports from China have reach more than US $ 17 billion approx. that created trade gap of US $ 15 billion approx. in favor of China.
While products included in this volume of Pakistan’s exports to China are cotton (US $ 872.85 million), Cereals (US $ 161.3 million), Copper (US $150.26), Beverages, spirits and vinegar (US $133 million), Fish, crustaceans, molluscs, aquatics invertebrates (US $ 91.21 million), Ores slag and ash (US $ 66 million), Machinery, boilers (US $45.9 million), Salt, sulphur, earth, stone, plaster, lime and cement ( US $ 43.36 million), Raw hides and skins (other than furskins) and leather ( US $ 35 million, Articles of apparel, knit or crocheted (US 30 million).
FPCCI Office Bearers expressed serious concern about Pakistan’s ability to benefit from Phase II, when Pakistan does not have surplus products to exportdue to a shrinking economy.
He further highlighted the fact that industrial output is declining because of de-industrialization in the last few years. Serious issues like, high interest rates, frequent increases in power and gas tariff, unavailability of gas to industries, abrupt changes in government policies, rampant smuggling, refunds to exporters and an overall hostile environment are making it difficult for industries to sustain their existence.
FPCCI Office Bearers urged Government of Pakistan to urgently develop a robust and holistic industrial policy that would lead to massive industrialization in the country, encourage R&D, innovation, diversification and development of new products, improve quality standards and enhance technical skills of labor.
He also urged Chinese companies to enter into joint ventures with Pakistani manufacturers and relocate their industries to Special Economic Zones. These efforts will significantly raise industrial output enabling Pakistan to take advantage from Phase II of China Pakistan FTA.
Otherwise, Pakistan will not be able to receive benefits from supposedly vast opportunities available to us and the fate of Second Phase of China Pakistan FTA will not be any different that the First Phase.
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FPCCI demands uninterrupted gas supply to meet export targets
KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday urged the government to allow gas connections to new industrial units and uninterrupted gas supply to existing units in order to meet export targets.
Mian Anjum Nisar, President and Sheikh Sultan Rehman, Vice President of the Federation of FPCCI urged the government to provide gas connection to new industrial units as well as uninterrupted supply of gas to existing industries in order to meet export targets.
They strongly criticized the stoppage of gas to industrial estates of Karachi by Sui Southern Gas Company Ltd, resulting in serious loss of productivity.
This in turn leads to failure in meeting export orders on time and financial losses to exporters as they have to ship by air to meet the deadlines.
They expressed their displeasure that industrialists of Karachi had to resort to sit-ins on this issue.
They underscored the need to provide basic amenities like water, power and gas so that industrialists can focus their attention on increasing productivity and meeting export targets rather than protesting on the streets.
They urged the government to wholeheartedly support the industry which is facing a very hostile environment and fighting for survival.
“Failure to supply uninterrupted gas will lead to further closure of industry resulting in increased unemployment and serious law and order situation in the near future”, they added.
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FPCCI, KCCI sit together after long time
KARACHI: Members of Pakistan Federation of Chambers and Commerce and Industry (FPCCI) and Karachi Chamber of Commerce and Industry (KCCI) on Wednesday sit together after defeat of SM Muneer led group in the recent elections of FPCCI.
Siraj Kassem Teli, Chairman of Businessmen Group (BMG) along with office bearers of KCCI visited FPCCI on the invitation of newly elected FPCCI president Anjum Nisar.
President FPCCI Anjum Nisar in his welcome address appreciated the role of KCCI in supporting him in the election.
He vowed that business community would evolve a joint strategy for resolution of problems.
Nisar said that the economic conditions were not good and it was difficult for industries to operate in higher interest rates.
BMG chairman Siraq Kassem Teli, who visited the FPCCI after about 20 years, praised the unity of business community.
He said that his group would fully support the FPCCI on economic issues.
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KCCI assures support to newly elected FPCCI president, successful candidates of BMP
KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has assured full support to newly elected president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and successful candidates nominated by BMP panel.
Chairman Businessmen Group (BMG) & Former President KCCI Siraj Kassam Teli has congratulated Chairman Businessmen Panel and the newly elected President FPCCI Mian Anjum Nisar, Senior Vice Chairman BMP Mian Zahid Hussain, Shaukat Ahmed, Zakaria Usman and others on BMP’s impressive victory in FPCCI’s elections.
In a statement issued, Siraj Teli said that as BMP, under the leadership of Mian Anjum Nisar, has been struggling really hard since many years and this year they succeeded in overthrowing almost all their opponents, the business & industrial community hopes that the newly elected leadership at FPCCI would take practical steps to improve FPCCI’s functioning and make it a vibrant platform.
Siraj Teli opined that setting the FPCCI free from the clutches of UBG, which remained in power for five consecutive years, was not an easy task but due to hard work and sincere efforts along with BMG’s full support, BMP candidates outshined in FPCCI’s elections and they all deserve to be appreciated.
He was of the opinion that the new leadership at FPCCI will have to revisit all the policies, completely replace the existing mechanism and devise effective strategies in consultation with all stakeholders to improve FPCCI’s image and make it the leading voice of the entire business and industrial community at the national level.
Siraj Teli stressed that FPCCI, as a national institution will have to focus on getting the national issues resolved while the newly elected leadership must fulfill their commitments made to the business community during the election campaign. “Every step taken by BMP leadership to improve FPCCI’s performance and in the larger interest of the country will be fully supported by the Karachi Chamber and Businessmen Group as we firmly believe that we all can play the lead role in dealing with the ongoing economic crises if we make collective efforts”, he added.
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Border markets, warehouses to be established to contain smuggling: Member Customs
KARACHI: Pakistan Customs to set up border markets and border warehouses all border crossing of the country to contain smuggling, a top official of Pakistan Customs said.
A statement released by Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday quoted Jawwad Agha, Member Customs (Operations) as saying that on the instructions of the Prime Minister Imran Khan is being prepared under which border markets and border warehouse would be established at all border crossing of the country to contain the smuggling.
Jawwad Agha in response to the FPCCI president suggestion regarding restoration of 20 days period for clearance of imported or exported goods from 15 days said that the period was reduced to 15 days due to avoid port terminal congestion.
However, in case of default particularly for the LCL he agreed to consider downward revision of heavy penalty which at present Rs. 5000/- per day. Regarding reduction in utilization period from 24 monthsof input acquired for manufacture and export of output goods under DTRE, he informed that the time was reduced to boost the manufacturing and exports of goods and advised the importers to complete the cycle of manufacturing of goods within the stipulated time.
In response to a suggestion for data exchange between Pakistani and Chinese customs agencies to curb under-invoicing, the Member Customs (Operations), FBR informed that during the Prime Minister’s visit to China the agreement has been signed and would be initiated soon.
Engr. Daroo Khan Achakzai, FPCCI President in his recommendations said that in order to facilitate the exports, the government should introduce a new scheme for imports-cum-exports of packing material whereby a notified percentage of inputs may be allowed to be imported at zero rate duties against FOB value of exports of Previous year with flexibility to import any product among the notified list in any quantity within the overall entitlement of the exporter.
Similarly Garment and Home Textile industry be facilitated by allowing duty free import of Accessories up to 10 percent of last year export performance, which should be added automatically in WeBOC of Manufacturer Cum Exporter ID after closing of 30th June every year on the basis of record available in WeBoc.
Exporter should be allowed to use it in exports without the condition of mentioning these goods in Export goods declaration.
However, if an Exporter is required to imports accessories/packing material in excess of 10% then he may use (SRO-492), (SRO 327-Export oriented unit) and (SRO 450-Manufacturing Bond). New Exporter may also use SRO 492(I)/2009 dated June 13, 2009 in first year to make their performance.
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Inflation cannot be controlled through high policy rate: FPCCI
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.