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  • Traders urged to show unity for resolution of issues

    Traders urged to show unity for resolution of issues

    KARACHI: Chairman Businessmen Group (BMG) & Former President Karachi Chamber of Commerce & Industry (KCCI) Zubair Motiwala has urged all shopkeepers and small traders to exhibit complete unity and solidarity under KCCI’s umbrella so that one strong voice could be raised to compel the federal and provincial governments to pay attention to Karachi and immediately resolve all the issues being suffered by Karachiites.

    “The Karachi Chamber, being the premier Chamber and a true representative of the entire business community, is not just for resolving problems of businessmen and industrialists but small traders and shopkeepers are also equally important and dear to us hence, BMG Leadership and KCCI Office Bearers are always available to help out small traders and shopkeepers who are an integral part of this Chamber”, he added while speaking at the first meeting of Special Committee for Small Traders which was also attended by Vice Chairman BMG Jawed Bilwani, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Chairman of KCCI’s Special Committee for Small Traders Majeed Memon, Former Presidents KCCI Majyd Aziz & Younus Muhammad Bashir, Former Senior Vice President Talat Mehmood, KCCI Managing Committee Members and a large number of shopkeepers and representatives of commercial markets’ associations.

    Commenting on the hardships being suffered by shopkeepers due to outbreak of COVID-19 pandemic and the subsequent lockdowns, Chairman BMG urged the Federal and Provincial Governments to provide a helping hand to the perturbed small traders and shopkeepers who were still distressed and have not come out of crises because of the severe losses suffered during lockdowns. He said that the Karachi Chamber was struggling really hard to some how convince the government to extend financial support to shopkeepers as compensation for the losses suffered by them during COVID-19 pandemic.

    Responding to concerns expressed by meeting participants over poor attitude of police officers towards shopkeepers, Zubair Motiwala assured that the Karachi Chamber was well aware of this particular issue hence it has already been discussed with Karachi Police Chief Imran Yaqub Minhas who assured to deal with it at the earliest so that the small traders and shopkeepers could carry out their business activities without any kind of fear from police.

    He also promised to invite Additional IG for a meeting again at KCCI in which small traders and shopkeepers will also be invited so that they could directly discuss issues pertaining to parking, police patrolling, encroachment, thefts, robberies, mobile snatching and other heinous crimes taking place in their areas. “We will keep striving and continue to raise a very strong voice until all the issues are resolved exactly as per aspiration of small traders.

    Commenting on problems being faced by small traders and shopkeepers due to complete closure of businesses on Sunday which has been earmarked as Safe Day, Chairman BMG informed that this issue has been taken up with Chief Minister Sindh Syed Murad Ali Shah who has assured that if the NCOC declares Sunday as working day for shopkeepers, he would immediately lift the restriction of carrying out business activities on Sundays. “Chief Minister will also be visiting KCCI next week where we will again highlight this issue so that it could be taken into consideration”, he added.

    He further informed that KCCI has also taken up the issue of forced registration with Chairman Sindh Revenue Board (SRB) Khalid Mehmood who was advised to hold consultation with relevant markets’ associations instead of forcing the shopkeepers to get registered. “Any misconduct or demand for bribe by SRB official may please be reported to KCCI and we will take up this matter with SRB to ensure that no injustice was being done to anyone”, he added.

    Keeping in view the hardships being faced by Shopkeepers in obtaining trade license, Zubair Motiwala assured to develop some kind of system within KCCI so that the shopkeepers could get the trade license without any demand for bribe by just paying the fee. “We will also take up the possession issue being suffered by displaced shopkeepers of the encroachment drive who although have been allotted shops at alternate locations but the possession has not been given so far”, he added.

    Regulations needed for used mobile phones’ accessories
  • Regulations needed for used mobile phones’ accessories

    Regulations needed for used mobile phones’ accessories

    KARACHI: Additional Inspector General Imran Yaqub Minhas has stressed that the sale of second-hand mobile phones accessories has to be brought into a regulatory framework.

    It would help in dealing with the most serious issue of rising street crimes as the accessories and spare parts of all the snatched phones were being disposed of by selling them in the local markets, he added.

    “The street crimes would only reduce when a regulatory framework for sale of second-hand mobile phones’ spare parts is in place otherwise it would remain a challenge and we may reach at the verge of disaster in terms of street crimes,” he added while exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry.

    Karachi Police Chief, while terming the social media as a ‘menace and a curse’, stated that a huge portion of the content revolving in the social media was based on unauthenticated reporting which was playing with public’s nerves hence, it also needs to be regulated.

    “I appeal the business community of Karachi Chamber to raise a strong voice for regulating all the social media sites and apps”, he said, adding that the social media sites which build the perception about Karachi and Pakistan must be brought into a legal framework.

    He admitted that robberies were taking place in Defense area where three gangs were operational, of which one gang has been nabbed and its coordinators have also been identified.

    “Serious efforts were underway and strategies have been adopted to control crime hence, the situation in DHA is likely to improve in the next few days,” he added.

    To drastically improve the law & order situation of Karachi, AIG stressed the need for an effective surveillance system in the city otherwise the crimes will never stop.

    “Enhancing the number of police officers would not yield results so we have to adopt scientific and technological practices being used all around the world for effectively controlling street crimes,” he added.  

    He said that due to lack of proper planning, the city is collapsing and it was a matter of grave that there was no expansion plan for Karachi which has been missing since many decades. The city is turning into an ocean of concrete with undocumented and uncontrolled population. The city has to be reframed in a planned way otherwise it will become prey to its own serious issues, he added.

    He said: “We are facing another serious challenge within the department i.e., criminalization of police force and we are fighting really hard with that challenge which is not less than confronting the ocean’s waves.”

    Imran Minhas also assured to look into the possibility of nominating a focal person exclusively for Karachi Chamber.   

    Speaking on the occasion, Chairman BMG Zubair Motiwala, while expressing deep concerns over deteriorating law and order situation of Karachi city, pointed out that in addition to infinite incidents of street crimes taking places all over the city, 26 robberies happened in Defense area alone whereas 17.5 percent rise was witnessed in murder cases, car snatching escalated by 67 percent, gang rape incidents upsurged by 130 percent and 100 percent increase was recorded in murder while resisting a dacoity and bank robberies.

    Urging the lawmakers to stop step-motherly treatment with Karachi, he stressed that the law & order situation of this city has to be given special attention and an effective strategy has to be devised on war footing otherwise, the situation would worsen further and the city will be plunged to a point of no return.

    “Law & order issue was linked with poor economic performance as it has been observed that the economic and business activities were shrinking and joblessness was rising therefore, many people were landing up in the world of crime to fulfil their needs”, Zubair Motiwala opined while referring to US$4 billion deficit suffered by the country in the month of August.

    “Despite contributing 68 percent revenue and 55 percent exports, the business community is compelled to continue their activities without security, gas and electricity and they have to face all the hindrances being created by civic agencies as well. In this scenario, running an industry in Karachi is not less than a Jihad”, he added.

    Chairman BMG also appealed the Sindh Government to look into the possibility of raising pay packages of police officers to such an extent that they were able to easily overcome all their domestic expenditures and honestly discharge their duties without seeking bribe as under the present circumstances, it has become impossible for a police officer with four kids to handle his domestic expenses, hence he has no other choice but to seek bribe. “Penal action and regards are equally important to improve the law & order situation of Karachi. Those officers who perform really well must be promoted whereas the others who fail to deliver should be demoted and transferred to far flung areas of the province”, he added.

    To deal with frequent traffic jam issue, he suggested that signal adherence must be strictly implemented and one-way violation should also not be tolerated at any cost while the youngsters must also not be allowed to ride bikes without a valid driving license.

    Vice Chairman BMG Jawed Bilwani hoped that during the tenure of Imran Minhas, the law & order situation improves in Karachi which has deteriorated sharply nowadays particularly in District South and West. He suggested to compile a database of criminals in which date-wise records pertaining to arrests and bails of criminals must be maintained and publicized so that the honorable judges and everyone could see and analyze how many times these culprits had been apprehended and released on bail which would prove very fruitful.

    General Secretary BMG AQ Khalil stated that it was a matter of concern that Karachi was the only city whose actual population has not been determined to date hence, in such a situation, it was impossible to evaluate the problems of this city, particularly the size of police force required for maintaining law and order situation of Karachi. “Rangers enjoys more powers and facilities as compared to police which needs to be strengthened, provided insurance facility and other perks, besides fully equipping them for efficiently dealing with criminals”, he added.

    Earlier, President KCCI, in his welcome address, stated that the Karachi Chamber, being the premier and largest chamber, plays the role of a bridge between the law enforcing agencies and the business community so that the issues could be amicably and promptly resolved. He underscored the need to carry out effective policing all over Karachi where the population has risen to around 25 to 30 million whereas the law & order situation has been worsening day by day due to increase in street crimes, burglaries, thefts, motorcycle and vehicle snatching etc. which were widely being reported from almost all parts of the country.

    PCLC Chief Hafeez Aziz requested AIG to nominate a DSP who must be tasked to look into and promptly resolve the issues being raised by KCCI.

    The meeting was also attended by Chairman Businessmen Group & Former President KCCI Zubair Motiwala, Vice Chairman BMG Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President Abdul Rehman Naqi, Vice President Qazi Zahid Hussain, Former Presidents Saeed Shafiq, Majyd Aziz, Younus Muhammad Bashir, Shamim Ahmed Firpo, PCLC Chief Hafeez Aziz and others.

    KCCI flays restoration of IR officers bank freezing powers
  • KCCI flays restoration of IR officers bank freezing powers

    KCCI flays restoration of IR officers bank freezing powers

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has criticized the decision to restore powers of Inland Revenue (IR) officers to recover due and taxes through bank account attachment without prior information.

    (more…)
  • KCCI expresses grief over human loss in earthquake

    KCCI expresses grief over human loss in earthquake

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Thursday expressed deep grief and sorrows over loss of human lives in earthquake, which jolted the Baluchistan province last night.

    In a joint statement issued, Chairman Businessmen Group and Former President KCCI Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki, Anjum Nisar and Javed Bilwani, General Secretary BMG AQ Khalil, President KCCI Muhammad Idrees, Senior Vice President KCCI Abdul Rehman Naqi and Vice President KCCI Qazi Zahid Hussain noted that 20 people have fallen prey to the earthquake in Baluchistan and more than 300 people including women and kids have been injured whereas hundreds of houses were also damaged in various areas including Quetta, Sibbi, Pishin, Muslim Bagh, Ziarat, Qila Abdullah, Sanjavi, Zhob and Chaman.

    They said that our brother and sisters, particularly those inhabiting in far-flung and impoverished areas of Baluchistan province, should not be left alone in this hour of grief and need. It is the duty of everyone to help and support the affectees during the most difficult time of their lives.

    BMG leadership and KCCI Office Bearers, while appreciating the quick response of the government and armed forces, said that the government and the military forces were doing a fine job by promptly undertaking rescue operation and immediately dispatching relief goods and medical teams to the quake-hit areas of Baluchistan.

    BMG leadership and KCCI Office Bearers, while praying for the wellbeing of people affected by the natural disaster as well as their recovery from the trauma and pain, offered heartfelt condolences to those families who lost their loved ones in this tragic incident.

    They also appealed the fellow businessmen and industrialists to donate generously in whatever way they can for supporting the affectees of Baluchistan earthquake.

    “FBR not to take action directly against non-filers”
  • “FBR not to take action directly against non-filers”

    “FBR not to take action directly against non-filers”

    KARACHI: The Federal Board of Revenue (FBR) will not take any action directly against non-filers or under-filers, Finance Minister Shaukat Tarin assured the members of Karachi Chamber of Commerce and Industry (KCCI).

    A statement issued by the KCCI stated that Finance Minister Shaukat Tarin had assured to review the matter of filers and non-filers and look into the possibility of re-examining the term ‘non-filer’ and ‘under-filer’ in consultation with stakeholders whereas in the meantime, “no one will suffer as FBR will not take the action directly.”

    FBR will share relevant data with Chambers and also upload the same on its website.

    The government intends to take help of artificial intelligence and assessment will be done through third party while appropriate time of 90 days will be provided to non-taxpayers for settlement, the Finance Minister added while speaking at a meeting with a delegation KCCI.

    Federal Minister for Energy Hammad Azhar, Advisor to PM on Commerce Abdul Razak Dawood, Chairman Federal Board of Revenue Ashfaq Ahmed and other senior officials of Finance Ministry and FBR also accompanied Shaukat Tarin at the meeting while KCCI’s delegation, which was led by Chairman Businessmen Group & Former President KCCI Zubair Motiwala, comprised of Vice Chairmen BMG Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil and President KCCI Muhammad Idrees.

    Referring to Chairman BMG’s remarks about discrimination with export-oriented industries of Sindh with regards to supply of RLNG at $6.5 per MMBTU, Energy Minister Hammad Azhar agreed to supply RLNG at $6.5 per MMBTU to export-oriented industries of Sindh. In this regard, the Ministry of Finance will sanction subsidy and relevant notification will also be issued.

    Hammad Azhar stated that the Ministry of Energy will also convene a meeting to discuss KCCI’s concerns over gas crises in winter season so that they could explore ways and means for smooth supply of gas to industries/ consumers of SSGCL in winter season. MD SSGC will also be advised to hold a meeting with KCCI in this regard, he added.

    On the occasion, PM’s Advisor Abdul Razak Dawood said that they were considering waiver of duty on import of cotton yarn. It was also concurred that KCCI’s proposal to reduce concessional rate of 0.1 percent to 0.01 percent on Traders/ brokers of Cotton Yarn under SRO.333 (I) 2001 dated 02.05.2011 has been taken into consideration in the larger interest of value-added exports.

    Razak Dawood, while appreciating KCCI’s idea of giving Industry status to “Warehousing / Cold Chain / Cold Storage”, said that the government will look into this matter.

    He reiterated that Drawback on Local Taxes & Levies (DLTL) will either continue with same rate or the government may increase the rate of drawback whereas the old income tax claims will also be refunded at the earliest.

    Speaking on the occasion, Chairman Federal Board of Revenue (FBR) Dr Ashfaq Ahmed assured that the Government will review the matter pertaining to CNIC requirement and 3 percent tax which KCCI believes should not be mandatory but optional as 3 percent tax on sales to unregistered persons was already being collected hence there was no need for demanding CNIC. He also promised to hold a meeting within next week via zoom facility to discuss the progress on various taxation issues.

    In response to problems being faced because of the condition to put invoice and packing list inside imported container or consignment, the lawmakers assured to review KCCI’s proposal that the bank should only receive document when invoice and packing list is attached with the documents and consignment should be released with the provision of invoice and packing list from Customs.

    It was also assured that the government will also look into KCCI’s proposals to amend provision under S. No.4 in which a new section 114B has been inserted in Income Tax Ordinance 2001, providing discretionary powers to FBR to issue General Orders to disable mobile phones/SIMS, disconnect electricity and gas connection etc. to enforce filing of returns by the persons not appearing on the ATL. The Karachi Chamber, in this regard, has proposed the provision may be amended to substitute the words “Persons not appearing on ATL” with “Unregistered Persons” to achieve the purpose of broadening of tax-base.

    KCCI delegation, while conveying gratitude to Finance Minister for fulfilling his commitment of holding today’s meeting in Islamabad along with Hammad Azhar, Razak Dawood and others, expressed confidence over the stewardship and seriousness being exhibited by Shaukat Tarin towards resolving the problems being suffered by the business and industrial community.

    Finance Minister, in his concluding remarks, said that he will keep on visiting KCCI after every three months while Chairman FBR will also be visiting the Chamber on a monthly basis.

    Tax to GDP ratio at 20% prime objective: Tarin
  • Return filing date extended for 15 days

    Return filing date extended for 15 days

    KARACHI: The last date for filing income tax returns has been extended for 15 days till October 15, 2021 from September 30, 2021.

    Finance Minister Shaukat Tarin on Thursday announced to extend the date after listening to the problems being faced by taxpayers in filing income tax returns, which were highlighted by a delegation of Karachi Chamber of Commerce & Industry (KCCI) at a meeting held in Islamabad on Thursday.

    KCCI delegation, which was led by Chairman Businessmen Group & Former President KCCI Zubair Motiwala, comprised of Vice Chairman BMG Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil and President KCCI Muhammad Idrees who appreciated the finance minister for understanding the hardships being faced by taxpayers in filing income tax return and accordingly announcing relief.

    The delegation members, while underscoring the need to modify the ineffective taxation policies, expressed deep concerns over the implementation of Tax Laws (Third Amendment) Ordinance 2021 which, they feared, would start from Karachi as it has been observed from time to time that all such laws carrying penalties always start from Karachi and stay confined mostly to this city only.

    If Karachi has to pay all the taxes and suffer penalties as well then why Karachi was not receiving development funds in proportion to its contribution, they asked and reiterated KCCI’s demand to replace term ‘under-filers’ in the controversial ordinance with ‘non-filers’.

    FBR says return filing system working seamlessly
  • One month date extension demanded for filing tax returns

    One month date extension demanded for filing tax returns

    KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Friday demanded the tax authorities to extend the last date of filing returns for the tax year 2021 up to October 31, 2021.

    KCCI President M. Shariq Vohra in a statement urged the government to extend last date for filing Income Tax Return from September 30, 2021 to October 31, 2021 as many taxpayers were finding it really hard to file their returns on time due to ongoing extraordinary situation in which many businesses have suffered badly because of limited timings and other curbs imposed to contain the spread of COVID-19 pandemic.

    President KCCI said that although the government has recently eased some restrictions but the businesses were still struggling to return to complete normalcy, hence they must be provided some breathing space by extending the last date for filing income tax return till October 31, 2021.

    He stated that KCCI has been receiving a lot of requests from the members of the business and industrial community who have been constantly asking the Chamber to approach the higher authorities to seek extension in last date. 

    “It is a well-known fact that the entire nation including the taxpayers were hit hard by the fourth wave of Covid-19 and the situation remains challenging to date. Hence, the Federal Board of Revenue must keep all the ground realities in mind and extend last date for filing income tax return to October 31, 2021 which would be widely appreciated by the business community,” he added.

    Non-filers get ready for suspension of phone, gas, power
  • Measures against non-, under-filers in ordinance: Tarin

    Measures against non-, under-filers in ordinance: Tarin

    KARACHI: Finance Minister Shaukat Tarin has explained the measures have been taken against non-filers and under-filers who are declaring zero income.

    Talking at a meeting with office bearers of Karachi Chamber of Commerce and Industry (KCCI) a day earlier, Shaukat Tarin categorically stated that victimization was definitely not the purpose of the Ordinance which was purely for non-filers and those under-filers who file zero tax.

    It was a matter of concern that out of a total of 2.9 million filers, one million are those who file tax returns and show zero taxable income.

    “We are intending to take help of artificial intelligence would examine electricity, gas, telephone bills along with banking transaction activities and other details of such filers and classify them as under-filers who will be asked to submit their taxes through a third party.

    He assured that the Drawback of Local Taxes & Levies (DLTL) has been extended and it will not be discontinued while the business community is going to get all its claim on time as funds for the purpose have already been allocated in the budget and the pending DLTL claims of Rs32 billion of the last fiscal year will also be settled in the next six months.

    Exchanging views with the leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce & Industry (KCCI) at a meeting held here in a local hotel on Sunday, Finance Minister advised KCCI to visit Islamabad in order to discuss their reservations about the new Ordinance, besides resolving all issues on the spot by arranging meetings with Prime Minister Imran Khan, Advisor Commerce & Investment Razak Dawood, Federal Minister for Energy Hammad Azhar and Federal Minister for Industries & Production Makhdoom Khusro Bakhtiar. “We will instantly give deadlines for all the pending policies as PM is determined to revive business, industrial and agricultural activities”, he added.

    Chairman Businessmen Group & Former President KCCI Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki & Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Vice President Muhammad Idrees, Former Presidents, KCCI Managing Committee Members along with prominent business figures attended the meeting.

    He said that the government was serious towards resolving issues in order to ensure sustainable economic growth at the rate of 5 percent which was the basic reason for enhancing the PSDP and reducing prices of raw materials so that the industry could stand on its feet. “Good news is that we are growing as all the indicators are showing improvements and we are growing faster than what was being expected.”, he said, “However, the import bill is going to touch US$19 billion this year as compared to US$13 billion of last year mainly due to rising petroleum prices and other commodities which we have to absorb.”

    He said that the government’s target was to improve the pace of exports from the existing 8 percent to 18 percent in the next few years while the narrow industrial base was also being expanded through incentivization. Incentives have been given to construction sector, pharmaceutical sector, spare parts manufacturers. “Anyone with economy of scale production is being incentivized to enable them to go for exports as well. We have to improve the exports and FDI by facilitating the local investors through Board of Investment. If our local investors will not be happy, how are we going to attract foreign investors.”

    He was of the opinion that inflation was not the issue of Pakistan alone as many countries around the world including regional countries were also facing this issue which was due to disruption in production all around the world due to covid along with logistics disruptions and exorbitant container chargers. “Prices of Palm oil, wheat and rice have been rising globally since 2018. We cannot isolate ourselves from international commodities prices as we are linked with them.”

    He also assured to convey KCCI’s concerns over dilapidated state of Karachi’s infrastructure to Prime Minister with a request to come up with some kind of a direct action by the Federal Government to improve the poor state of Karachi’s infrastructure.

    Chairman BMG & Former President KCCI, while expressing deep concerns over the newly promulgated ordinance in which enforcement measures have been introduced in the name of broadening the tax base, stated that this ordinance has frightened everyone mainly because of the term under-filer which was pinching in everyone’s mind and needs to be removed.

    He said that it was highly unfair that instead of appreciating and pampering the filers and acting strictly against the non-filers, this ordinance targets existing filers too by tagging them as under-filers which would open up more avenues of harassment and corruption. Hence, the term under-filer has to be expunged from the ordinance.

    Underscoring the need to take everyone into the tax net, he said that any income being derived from this country which crosses the benchmark set by the government should attract tax whether it was agriculture, industry or trading. “We are patriotic citizens and we would like to see Pakistan growing and tax collection at optimum level so that development takes places all over the country.”

    “Keeping in view all the expenditures, we really need at least a minimum tax collection of Rs12,000 billion but for that purpose, you will have to look where the funds were being lost instead of looking for them everywhere”, he said, adding that the ordinance was being considered as victimization for being in the tax net as the FBR, which has all the details of the filers would go for the easiest way by acting against filers instead of hunting for non-filers. “Before devising such laws, all the stakeholders should have been consulted and taken on board.”

    Zubair Motiwala also pointed out that DLTL has not been extended as no extension notice has been issued since July 1, 2021 and the exporters have no idea whether DLTL was there or not. “Although DLTL claims worth Rs32 billion have been cleared by FBR and sent to the State Bank as well but the amount has not been released as yet”, he added.

    Highlighting the issues of Karachi, he said that the Prime Minister announced an ambitious Karachi Transformation Plan (KTP) of Rs11,000 billion but nobody knows when it was going to come on ground and what was the progress so far. Representatives of business community, who know where exactly the development and upliftment works were needed in industrial areas, were also not being consulted in the transformation plan for Karachi. “The design of K-IV Project, which is the lifeline for Karachi, has been changed 11 times that resulted in escalating the cost of this project from Rs22 billion to more than Rs100 billion which was also a very serious issue.”

    He was of the view that although Pakistan’s ranking in World Bank’s doing business index has improved to 108th but it was still too high because the business community has not been provided an even-playing field. “Within Pakistan, we don’t have an even playing field as Karachi was expensive when compared with the cost of doing business in Punjab and other areas. Although the government extended RLNG at $6.5 per MMBTU and electricity at 9 cents per unit to five zero rated sectors but the RLNG relief has not been given to industries in Karachi who just started receiving electricity at 9 cents after a gap of two-and-a-half months.”

    He appreciated Finance Minister for allowing trade in rupees with Afghanistan but the State Bank has not issued relevant notification in this regard and the trade with Afghanistan has gone down by 60 percent.

    President KCCI Shariq Vohra, while welcoming the finance minister, appreciated the strategies adopted by the government that led to consolidating the economy with a GDP growth of 4.8 percent whereas consistency was visible in the exports and the large-scale manufacturing was also performing well, creating a much comfortable situation not only for the government but also for the private sector.

    Highlighting KCCI’s macroscopical perspective, he said that there has always been a mismatch in Exports vs. Imports as the exports remain stagnant in between US$22 to US$25 billion and the imports keep rising. Depreciating rupee value was also neither supporting the exports nor the businesses and the economy which can only be saved when the government devises effective strategies for enhancing the meager industrial base of the country and also creates an environment in which the industrial units could have surplus production.

  • Gas crises to continue until installation of more terminals

    Gas crises to continue until installation of more terminals

    KARACHI: Imran Maniar, Managing Director of Sui Southern Gas Company (SSGC) has said that gas crises being faced during the winter season were likely to continue for one to two more years until the new terminals for RLNG get installed at the Port.

    There were difficulties and challenges but the picture is rosy as upon completion and activation of Terminal III at the Port and if the SSGC decides to make a commitment with terminal owner only if consumers of SSGC pledge to buy the additional 500 mmcf, it would certainly help in resolving gas shortage issue being suffered by all types of consumers in Karachi, he added while exchanging views at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI).

    Chairman Businessmen Group (BMG) & Former President KCCI Zubair Motiwala, Vice Chairman BMG Jawed Bilwani, President KCCI Shariq Vohra, Senior Vice President Saqib Goodluck, Vice President Shamsul Islam Khan, Former Presidents KCCI Majyd Aziz and Younus Bashir, Former Vice President Muhammad Idrees, Chairman Public Sector Utilities Subcommittee Atif Jamil ur Rehman and Managing Committee Members along with representatives of industrial town associations also attended the meeting.

    While highlighting the overall gas demand-supply situation, MD SSGC informed that a total of 4,000 mmcf gas including indigenous gas and RLNG was being used all over the country, of which around 950 mmcf was being provided to SSGC from indigenous resources in Sindh and Baluchistan while 150 mmcf of RLNG was also being given to them and the rest of gas was being used by SNGPL. SSGC takes 110 mmcf from natural resources in Baluchistan while the rest of 75 percent gas comes into the system from resources in Sindh but these gas reserves were depleting fast at a rate of 10 percent per annum.

    He said that SSGC takes around 150 to 180 mmcf RLNG from two terminals at Port Qasim but the supply shrinks to 70 or 80 mmcf from these terminals during winter and the demand for gas in Baluchistan rises to 120 mmcf which creates an overall gas shortage of around 195 mmcf. To deal with gas shortages, the Ministry has designed a mechanism in which all the consumers from domestic to industrial have been ranked from top to bottom in which domestic consumers were at the top of the list, followed by export-oriented industry while CNG stations were at the bottom of the list and non-export industry was above CNG stations.

    Therefore, SSGC carries out load management during winter season exactly as per list provided by the Ministry whereas RLNG supplies to KE are completely cut to zero that helps in covering the gas shortage by 75 to 80 mmcf whereas suspension of gas to CNG stations further saves 20 mmcf that leads to reducing the gas shortfall by 95 mmcf, out of a total shortfall of 195 mmcf, he added.

    He further pointed out that there was a tremendous push to get villages gasified which requires significant investment of billions of rupees and huge resources including workforce and equipment who have to be sent to remote areas and villages.

    He further said that the industry was paying 70 to 80 percent of gas being consumed by the domestic consumers as the gas tariff for domestic users was very low and less than any other consumers all around the world including Qatar and Iran as it was being subsidized by the industry.

    Speaking on the occasion, Chairman BMG Zubair Motiwala pointed out that the first and foremost problems being faced by gas consumers was the low gas pressure in the industrial zones of Karachi which has created a serious havoc and the entire industry was unable to meet its requirements including the efficiency benchmarks and delivery time that intensifies the sufferings for the exporters. “As winter season is just ahead, what will happen to gas pressure during winter and what is the current condition of gas supply”, he asked.

    Zubair Motiwala said that the data of last one decade indicates that 1200 mmcf of gas was available from indigenous resources ten years ago when the industries were utilizing around 385 mmcf gas and then around 7 years ago, a decline to 335 mmcf was witnessed in the industrial consumption which later on picked up but to date, the maximum industrial consumption was not more than 400 mmcf.

    “We are concerned about the future as the demand for gas continues to rise because the industries have imported huge number of machines to enhance their production thanks to government policies but all these machines are going to require energy including gas and electricity so what is going to happen and what is the energy scenario for these machines which have been imported”, he said, adding that machineries worth US$1.5 billion dollars has already arrived, of which machineries valuing around US$400 to US$500 million have already been installed and started production whereas more machines worth US$1.5 billion were also in pipeline which would require more gas.

    He was of the view that demand from industries during winter remains intact yet the industries suffer the most which was not a correct approach. The demand for gas rises in Baluchistan to 200 mmcf from around 40 to 50 mmcf and it also increases in Sindh during winter season. Hence, the gas shortage was not because of rise in demand by the industry but purely due to enhanced consumption by domestic users. “Despite staying stagnant in terms of gas demand, supply to industry is curtailed and we are compelled to suffer. We don’t want more gas in winter, we want the same quantum of gas in winter at adequate pressure”, he added.

    Zubair Motiwala further stated that the five zero rated sectors agreed on a tariff of 6.5 dollars for RLNG gas which was available to entire Pakistan but SSGC has denied this tariff and the export-oriented industries falling under SSGC’s franchise have been compelled to use RLNG at exorbitant rate which was not affordable. “In this situation, when we are deprived of receiving RLNG, we might have to shift to SNGPL network.”

    He further expressed apprehensions over gas connections being given to new buildings which was going to intensify the hardships for industries because as per policy, supplying gas to domestic consumers was the top priority which means that the industries were going to suffer further curtailment due to more supply of gas to new domestic consumers. “All the new buildings should be provided gas via alternate means like bousers and the storage facility can be established at the basements of new buildings whereas the domestic consumers must be advised to switch over from gas-run geezers to solar-run geezers as successfully done in many countries all around the world”, he added.

    President KCCI Shariq Vohra, while welcoming the MD SSGC, said that gas has become a serious issue as Pakistan’s natural gas reserves were rapidly depleting while the gas distribution system of SSGC was in a pathetic state, causing severe line losses which was due to the fact that SSGC, which was once known as the best utility service provider company, has been through terrible circumstances during the last 10 years. SSGC has to define effective strategies to control waste of natural gas resources and theft in order to save the economy and the industry from severe losses, he added.

    KCCI demands COVID restrictions ease for businesses
  • KCCI demands COVID restrictions ease for businesses

    KCCI demands COVID restrictions ease for businesses

    KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has demanded the Sindh government to ease restrictions imposed related to business hours for markets and commercial activities.

    Chairman Businessmen Group Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Shariq Vohra have appealed to the Sindh Government to have mercy on perturbed small traders, shopkeepers, and restaurant businesses who must be allowed to keep their business activities operational throughout the week from Monday to Saturday without any closure on Friday whereas the business timings must also be extended till 10:00 PM.

    Expressing deep concerns over an ongoing sit-in and hunger strike by shopkeepers and small traders along with owners of restaurants and marriage halls, Zubair Motiwala and Shariq Vohra requested the Chief Minister Sindh Syed Murad Ali Shah, Minister for Local Government Nasir Hussain Shah, Minister for Information Saeed Ghani and Minister for Industries Jam Ikramullah Khan Dharejo to intervene in this matter and issue directives to ease the curbs on local businesses in Karachi otherwise many businesses, who are at the verge of complete collapse and bankruptcy, would vanish forever.

    Millions of people associated with all these businesses would die themselves due to mental torture, hunger, poverty, and joblessness instead of dying because of the pandemic, they cautioned.

    They pointed out that there was a clear disparity going on as the businesses in Punjab, other parts of the country and even in other cities all over Sindh excluding Karachi and Hyderabad have been allowed to stay operational throughout the week and up to 10:00 PM which has triggered a sense of deprivation amongst the business community of Karachi and Hyderabad.

    They said that associations of commercial markets from all over the city have been constantly approaching KCCI so that the Chamber, being the premier and actual representative of the entire business community, could play its role by convincing the Sindh government to allow businesses to keep on operating throughout the week except Sundays.

    Meanwhile, they have also assured that all shopkeepers and their staff have got themselves vaccinated and they were also prepared to fully comply with all the Standard Operating Procedures (SOPs) notified by the government.

    Keeping in view the overall situation and grievances suffered by small traders and shopkeepers in an extraordinary situation, Zubair Motiwala and Shariq Vohra hoped that the Sindh government, which has always played the lead role in efficiently rescuing the public from time to time, would provide the desperately needed relief to local businesses this time as well by relaxing the curbs and allowing the businesses to operate from Monday to Saturday up to 10:00 PM so that they could be saved from further disaster.