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  • FPCCI criticizes increase in POL product prices

    FPCCI criticizes increase in POL product prices

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday criticized the increase in prices of petroleum products for the month of April 2019.

    In a statement issued by the FPCCI, its president Engr. Daroo Khan Achakzai had shown serious concern on exorbitant increase of Rs6 per litre in the prices of petrol and diesel with effect from April 01, 2019.

    He said: “ It will have a multiplier effect on almost all the business activities including cost of transportation – within and inter-city – of raw materials and consumer goods thus further escalating the cost of production of industrial goods and spurring inflationary trend which at present is already 8.2 percent.”

    The FPCCI Chief elaborated that the price of all the food (fruits and vegetables) and kitchen items; construction material; fertilizers; imported goods etc., would be dearer as these goods are supplied to the different cities of the country through diesel based vehicles.

    The FPCCI chief recalled that the price of crude oil in international market on August 2018, when the PTI government assumed the charge, was US $ 75 / barrel which up to March 28, 2019 was further declined to US $ 66.67 / barrel viz 7 percent – 8 percent.

    “However, instead of passing benefits to the masses, government had not responded to it accordingly and showed reluctance to provide relief to the consumers proportionately”, he added.

    He argued that the actual price of petrol is Rs. 58.94 / litre whereas it is supplied to the consumers @ Rs. 98.89 / litre out of which about Rs. 40 / litre is earned by the government, dealers and distributors.

    Supported by facts and figures Engr. Daroo Khan Achakzai argued, “About 90 percent of total consumption of POL products are jointly consumed by the transport sector and power sector, wherein, almost 65 percent electricity is generated by the thermal while fuel (furnace oil and diesel) consumption for thermal power generation is 52 percent”.

    He therefore, underscored the need to translate these cheaper prices in electricity tariff which would have a positive multiplier effect on cost of operation / production of industrial activities like cement, textile, paint chemical sectors etc. and ultimately contribute in promotion of exports and reduction in inflation.

    This will also help in shifting the burden from CNG consumption in transport to petrol and making it available to the industrial sector particularly in Punjab which is suffering from acute shortage of gas in winter season.

  • FPCCI to draft proposals for new tax amnesty scheme

    FPCCI to draft proposals for new tax amnesty scheme

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has decided to finalize draft proposals for new tax amnesty scheme.

    FPCCI President Engr. Daroo Khan Achakzai called a meeting of stakeholders on Tuesday to discuss the proposals for New Tax Amnesty Scheme 2019 at Federation House, Karachi, Regional office Lahore and Capital Office Islamabad via video link.

    The meeting decided that a committee will be formed consisting of experts which will be headed by President FPCCI for the finalization of draft of new amnesty scheme.

    The meeting was attended by S. M. Muneer, former President FPCCI, Iftikhar Ali Malik, Sr. Vice President SAARC-CCI & Former President FPCCI, Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI, all Vice Presidents of FPCCI and the representatives of different chambers and associations.

    While welcoming the participants of meeting, Engr. Daroo Khan Achakzai informed the house about the outcomes of last amnesty schemes and focused on the need of new amnesty scheme for the documentation of economy and enhancement of tax revenue.

    He also highlighted his discussion with the Prime Minister of Pakistan who showed his desire to launch another amnesty scheme and advised President FPCCI to formulate recommendations in consultation with stakeholders with the aim to document the economy by declaring of foreign and domestic assets.

    In his remarks, Iftikhar Ali Malik emphasized to create awareness about converting the black money into white money, to increase the confidence of tax payer, incentives for the SMEs, exports warehouses, agriculture sector, removal of piracy, mis-declaration and smuggling.

    S. M. Muneer underlined the need of revival of last amnesty scheme with some necessary amendments announced in April 2018 for three months.

    Dr. Mirza Ikhtair Baig, Sr. Vice President FPCCI also stressed on the same tax rates of last amnesty scheme 2018 and continuation of Foreign Exchange Reforms Act which allowed opening of account, transactions and remittance facility in foreign currency.

    During the meeting, the stakeholders suggested that the new scheme should be based on same rules, regulation and tax rates 2 percent, 3 percent and 5 percent announced in last amnesty scheme in 2018.

    The stakeholders also stressed on the strict monitoring of tax collection system, measures of discretionary power to conduct audit of tax filers, removal of harassment and ease of documentation.

    They argued that the tax collection system in Pakistan is very complicated which needs to be reviewed as per global requirement.

    Moreover, the tax amnesty scheme should also boost industrialization and create new investment in other than real estate sector of economy and improve cost/ease of doing business.

    The house also advocated imposing of taxes on agriculture and other sectors which are currently not under tax net instead of putting extra burden on minuscule number of existing tax payers.

    They also suggested to announce incentives for filer/ taxpayers and should announce clean chit if taxpayers pay 2 percent or 5 percent additional tax and this scheme should be for three to five years.

  • FPCCI welcomes FBR focal person appointment

    FPCCI welcomes FBR focal person appointment

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has welcomed the appointment of focal person by Federal Board of Revenue (FBR) for resolving issues related to industry.

    In a statement on Friday FPCCI praised appointment of FBR focal person, Engr. Daroo Khan Achakzai
    Engr. Daroo Khan Achakzai, President FPCCI on behalf of Federation of Pakistan chamber of commerce & industry, praised Chairman FBR Jahanzeb Khan to appoint Ambreen Iftikhar Director Program office as focal person to solve any issue faced by business community by FBR relevant offices.

    Engr. Daroo Khan Achakzai said, FPCCI has requested Chairman FBR on his recent visit to Federation House to appoint a focal person to deal with harassment of the business community, he thanked

    Chairman for his prompt action as per his announcement made at the federation house.
    He added that, such measures will bring business community closer to FBR for better working relationship.

    Engr. Daroo Khan Achakzai also assured Chairman FBR their full cooperation & support.

  • FBR not to conduct raids: FPCCI

    FBR not to conduct raids: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Monday said that the tax authorities have assured of not to conduct raids and harass taxpayers.

    Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Dr. Mirza Ikhtair Baig Sr. Vice President FPCCI, Vice Presidents FPCCI, Mr. S. M. Muneer, Mr. Zubair Tufail, former President FPCCI and Sheikh Khalid Tawab Former Sr. Vice President FPCCI hailed the announcement of Chairman Federal of Revenue (FBR) Dr. Jehanzeb Khan made in a meeting with Business Community at FPCCI that henceforth there will be no raids on the tax payer as these raids had created great deal of concern, harassment and anxiety among the business circles.

    They also appreciated the decision of Chairman FBR to formulate a Committee consisting of FPCCI and officials of FBR to resolve the day to day issues of businessmen. They assured that FPCCI will not support tax evaders and will look into the individual cases of tax evasion on merit.

    The President FPCCI underscored the need of activation of Alternate Dispute Resolution Committee for resolving taxes related cases of Rs. 38 billion. He also suggested early issuance of promissory notes against the refunds as exporters are facing huge capital shortage for making new investments.

    He also emphasized on the identification of new tax payers and exploration of new areas for broadening of tax payers instead of putting more burden on the existing tax payers.

    The businessmen appreciated FBR for extending date of filing tax returns till March 31, 2019 and urged to enhance the tax base through direct taxes instead of indirect taxes which directly affects the low income group.

  • Business community applauds Pakistan response to India

    Business community applauds Pakistan response to India

    KARACHI: The business community has applauded the professional approach of Pakistan air force for downing two India jets, which intruding into Pakistani soil.

    Dr. Mirza Ikhtiar Baig, Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), business community leaders S.M. Muneer, Iftikhar Ali Malik, Zubair Tufail, Shaikh Khalid Tawab, have vehemently condemned the act of aggression by Indian air force by violating Pakistan Air space and targeting civilians inside Pakistan.

    They said that the Modi’s government is in hysteric state due to their anticipated defeat and they want to create an atmosphere where they can exploit the sentiments of their voters against Pakistan.

    The business community is behind our brave armed forces and expresses its full solidarity with them. Pakistan Armed forces are among the top Professional forces in the world and not only they can defend the motherland but resoundingly respond to the enemy.

    Dr. Baig said that Pakistan is a nuclear state now and any misadventure by India will have catastrophic consequences for them.

    Pakistan has acted with responsibility so far and Prime Minister has shown maturity by offering all options to India.

    Pakistan’s stance has earned support worldwide and no one has seriously taken Indian allegations against Pakistan for Pulwama incident.

    The incident was purely indigenous and reaction to Indian barbaric brutality against Kashmiri people.

    The business community congratulates the Pakistan Air force for downing the tow Indian jets. They said, India must have leant lesson from this response and will think several times before going any further.

    Dr. Baig also lauded the efforts of the Foreign Ministry for engaging the world on this crucial issues and effectively projecting Pakistan stance.

  • FPCCI condemns air space violation by India

    FPCCI condemns air space violation by India

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday strongly condemned India for violating Pakistani air space.

    In a joint statement on issued Tuesday the office bearers of FPCCI and business community of Pakistan, condemned India for violating Pak Air Space today.

    Vice President FPCCI Dr. Mirza Ikhtiar Baig called it frustration of Modi’s government, to point score for their forthcoming election campaign.

    In a question Indian ban and imposing 200 percent custom duty of Pakistani goods, he said it’s now time for our industry to realize to achieve self-reliance in cotton production and import substitution of dyes & chemicals, importing from India.

    He said the whole business community of Pakistan and entire private & corporate sector are with the government on this critical junction of time, and are willing to give any sacrifice to defend our beloved country Pakistan.

  • FPCCI laments delay in releasing refunds, duty drawback

    FPCCI laments delay in releasing refunds, duty drawback

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has lamented delay in issuance of refunds and duty drawback to exporters.

    Engr. Daroo Khan Achakzai, FPCCI, President in a statement on Thursday urged the Finance Minister Asad Umar to release the exports sector’s overall outstanding refund claims including deferred claims; Customs Duty Drawback; DLTL etc., which have been lying pending for payment since long.

    FPCCI Chief recalled that he, during the Finance Minister’s Pre-Budget visit to FPCCI Head Office Karachi on January 12, 2019 and thereafter on his post budget visit to FPCCI Regional Office Lahore had stressed the need for an early clearance of back-log of refund claims and automatic payment within the stipulated time limit as the inordinate delay had made the exporters to suffer from liquidity crunch in meeting future export orders well in time.

    While referring to the Finance Supplementary (2nd Amendment) Bill, 2019 regarding issuance of Promissory Notes to exporters on annual profit of 10 percent with maturity period of 3 years for stuck-up refunds, he lamented: “There is a very slow progress in processing of the pending Sales Tax refunds and issuance of RPOs.”

    He wanted that all types of refunds including DLTL, Income Tax etc, should also be included in the Promissory Note Scheme to help the exporters to overcome financial crunch and ensure availability of working capital.

    He proposed that the Government may dole out funds – like for revival of PIA, Pakistan Steel Mills etc., – for clearance of stuck-up refunds, one time full-fledged.

  • Chinese delegation visits FPCCI to explore business opportunities

    Chinese delegation visits FPCCI to explore business opportunities

    KARACHI – In a bid to foster stronger economic ties between Pakistan and China, a delegation of Chinese businessmen paid a visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), as per an official statement released on Saturday.

    (more…)
  • Production activities halt on gas shortage: FPCCI

    Production activities halt on gas shortage: FPCCI

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that manufacturing activities have been halted due to gas shortage in the country.

    (more…)
  • Tighter monetary policy chokes investment in Pakistan

    Tighter monetary policy chokes investment in Pakistan

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday said that the tighter monetary policy stance by the central bank has strangulated the investment in the country.

    In a statement Eng. Daroo Khan Achakzai, President, FPCCI showed his serious concern over the hiking of policy rate by another 25 basis points in last two months in view of prevailing inflation, devaluation of currency and twin deficit in Pakistan.

    He said: “SBP continues to operate a tight monetary policy and increased policy rate by 4.50 percent in last one year despite the clear evidences that this policy strangulates investment in Pakistan and hampered the economic activities.”

    The statistics clearly showing that investment to GDP in Pakistan is very lower i.e. 16.4 percent of GDP compared to 22.5 percent in 2007 while in India the investment to GDP ratio is 30 percent and in Bangladesh it is 31 percent.

    He termed the contraction in monetary policy as an anti-investment policy which has declined the economic activities in the first six month of the current fiscal year due to declining of large scale manufacturing growth particularly textile industry, food-beverages, petroleum, iron, pharmaceutical, electronics and wood products etc.

    He indicated that the 10.5 percent policy rate is very high compared to regional economies like India 6.5 percent, China 4.35 percent, Sri Lanka 9.0 percent, Thailand 1.75 percent, Indonesia 6.5 percent, Malaysia 3.25 percent etc.

    He said that the present inflation rate is 6.0 percent which is high compared to last year same period 3.8 percent; but this inflation is cost push inflation which cannot be controlled through demand management policies.

    The major cause of rising inflation in the country is high cost of doing business particularly utility prices, increase in the prices of industrial inputs and shortage of essential items of daily necessity.

    The government should focus to increase the demand for credit by declining interest rates and make easy access to finance.

    “Globally, the aim of monetary policy is to protect the value of the currency in co-ordination with the fiscal policy in order to achieve the objectives of macro-economic stability with constraining inflation and expansion of private sector investment,” he added.

    The President FPCCI further stated that the government should create its own fiscal space for financing its expenditures instead of borrowing from SBP and other institutions.

    During the first half year, there was an expansion in private sector credit, but is largely attributed to high cost of raw materials (cotton, petroleum products, etc), continuation of capacity expansion in power and construction-allied industries.

    This private sector credit should be expanded to other industries which are showing declining growth trend, he suggested.

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