KARACHI: SITE Association of Industry has termed the massive hike in key policy rate to 20 per cent as interest bomb, making it impossible for businesses to borrow money.
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Foreign exchange crisis halts economic activities in Pakistan
KARACHI: Foreign exchange crisis has halted economic activities in Pakistan, said President SITE Association of Industry Riaz Uddin on Wednesday.
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SITE Association demands dollar availability to avert industrial shutdown
KARACHI: SITE Association of Industry has demanded the government to ensure dollar availability for import of raw material and avert industrial shutdown.
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Business community mourns demise of SM Muneer
KARACHI: Business community has mourned the demise of renowned business leader SM Muneer, who died yesterday on November 28, 2022.
S.M. Muneer business leader of Pakistan who have walked through hard time and become an example to entire Pakistani entrepreneur. The start from the rise of his Din Group of Companies as one of the major business groups in the country is the story of almost 50 years of hard work and perseverance.
The leadership of Businessmen Group (BMG) and Karachi Chamber of Commerce & Industry (KCCI), while expressing deep grief and sorrow on sad demise of Chairman Din Group & United Business Group (UBG) SM Muneer, stated that Late SM Muneer will always be remembered not only by the business community of Karachi but the entire Pakistan for his valuable services to the country.
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In a joint statement, Chairman Businessmen Group Zubair Motiwala, Vice Chairmen BMG Tahir Khaliq, Haroon Farooki, Anjum Nisar, Jawed Bilwani, General Secretary BMG AQ Khalil, President KCCI Mohammed Tariq Yousuf, Senior Vice President Touseef Ahmed and Vice President Muhammad Haris Agar stated that Late SM Muneer was a good human being who generously contributed to dedicatedly serve the humanity as he was an active philanthropist. His sad demise has undoubtedly created a vacuum in business politics as he was a person who always raised a strong voice for the rights of business & industrial community.
While extending heartfelt condolences to members of the bereaved family members, friends and well-wishers of Late SM Muneer, BMG & KCCI Leadership prayed that may Almighty Allah place the departed soul in Jannat ul Firdous and grant courage to all of them to bear this irreparable loss.
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Chairman BMG Zubair Motiwala, who recently assumed charge of Trade Development Authority of Pakistan (TDAP) as its Chief Executive, said that SM Muneer visited TDAP office just two days ago to congratulate him on taking over his new assignment at TDAP. “Late SM Muneer, besides discussing matters of mutual interest, gave valuable advises for improving the exports”, he added and prayed that may Almighty Allah grant higher ranks to Late SM Muneer in Jannat ul Firdous.
Faisal Moiz Khan, President North Karachi Association of Trade & Industry (NKATI), SVP Shabbir Ismail, VP Naeem Haider, Akhtar Ismail, Sadiq M, Imran Moiz and Younus Khamisani, have expressed their grief and sorrow over the sad demise of S.M. Munir Bhai Jan. They termed a big loss for the business community.
In a statement, NKATI leaders were of the opinion that S.M. Munir’s outstanding services to the business community will always be remembered.
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They prayed that Almighty Allah may grant courage to the members of bereaved family to bear this irreparable loss with fortitude and the departed soul may rest in eternal peace.
Former President and Patron in chief SITE Zubair Motiwala, Former President and Chief Coordinator Saleem Parekh, Former President Jawed Bilwani, President Riaz Uddin and office bearers of SITE Association of Industry, have, condoled the sudden demise of KATI Patron-in-Chief S.M. Muneer.
The leaders said that the passing away of S.M. Muneer has created a vacuum in business politics. He was a good human being and his services were acknowledged by the President of Pakistan who conferred on him ‘Sitara-e-Isaar’ and ‘Sitara-e-Imtiaz’ in recognition of his outstanding public service for the cause of humanity.
Zubair Motiwala said that a few days ago, (late) S. M. Muneer came to meet & greet him on his appointment as CEO, TDAP.
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They have prayed to the almighty Allah to rest the departed soul in eternal peace, grant him place in ‘Jannatul Firdaus’ and give strength & fortitude to the bereaved family to bear this irreparable loss with equanimity.
M. M. Zubair Motiwala, Patron-in-Chief All Pakistan Textile Processing Mills Association (APTPMA), has expressed heartfelt condolence on the sad demise of SM Muneer, leader of business community.
May Allah the Almighty, rest the departed soul in eternal peace and grant strength, courage and fortitude to the breaved family of Mr. SM Muneer to bear this irreparable loss, Ameen!
“WE ARE FROM ALLAH, TO WHOM WE RETURN”
He said that SM Muneer will be long remembered as a man of conviction and commitment. His demise would create vacuum in business community. May Allah rest his soul in peace!
Pervaz Lala, Chairman APTPMA, Mr. M. Imran, Regional Chairman, Mr. Amjad Jalil, Sr. Vice Chairman, Mr. M. Iqbal Arbi, Saleem Parkeh, former Chairman APTPMA, M. Arif Lakhani, Sikander Imran, Anwer Aziz, all Members Executive Committee and other senior members of the Association have condoled the sad demise. May Allah rest his soul in peace.
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Connecting Pakistan, Iran customs stressed to resolve trade issues
KARACHI: Customs authorities of Pakistan and Iran should be connected for improving bilateral trade between the two neighboring countries.
Consul General Hassan Nourian, Consul General of Iran said there were two issues impeding trade i.e. banking channel transactions and second one is absence of proper bilateral trade regime between the two countries.
Regarding barter trade, he suggested developing an active linkage to resolve two countries’ two customs related issues by connecting customs of two countries.
READ MORE: Karachi Chamber welcomes Dar’s decisions
On the IPI & TAPI gas pipeline, he said that India is no longer part of the project and finally Iran and Pakistan need to proceed with the project.
He said that it is our second visit to SITE Association of Industry, and informed that during this visit of delegation, three MoUs have been signed. In the month of January 2023, Iran Single Country Exhibition is being organized at Karachi Expo Centre, and proposed that a similar exhibition may also be organized by Pakistan in Tehran, Mashhad or Isfahan.
A businessmen delegation from Islamic Republic of Iran visited SITE Association of Industry, and met President Riaz Uddin, office bearers and Executive Committee members to discuss the matters of enhancement of bilateral trade relations between the two brotherly countries.
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The delegation was headed by Yaganeh Fard, President Chamber of Commerce Zanjan. Consul General of Islamic Republic of Iran H.E Hassan Nourian, Commercial Attaché Hossein Amini were also present in the meeting. Riaz Uddin, President, SITE Association of Industry, Abdul Kadir Bilwani SVP SITE Association, VP Muhammad Hussain Moosani, Former President Abdul Rasheed and Abdul Hadi, Muhammad Kamran Arbi, Anwer Aziz, Azeem Motiwala, Haris Shakoor, Imran Ghani and others were also present in the meeting. Iranian Businessmen delegation visited a renowned Textile unit to see the manufacturing process.
Leader of the Iranian Businessman delegation Yaganeh Fard, President Chamber of Commerce Zanjan, on this occasion said that Pakistan and Iran have many things in common including trade, but the trade volume is much below the abilities and potential of the two countries.
The businessmen and products of the two countries should be introduced to each other and for this purpose, travelling and participation in exhibitions are important.
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“Trade is a two-way road we can engage ourselves through partnership, joint investments and production. He added that Iran is facing difficulties due to US sanctions imposed and barter trade is a welcoming sign amid such sanctions. The target of $5 billion trade volume per annum has been set.”
Riaz Uddin, President, SITE Association of Industry welcomed & thanked the valued guests from Iran and thanked the Consul General for making efforts to promote business ties between the two countries. He said that Iran was the first country to recognize Pakistan at the time of its birth. In reciprocation Pakistan was amongst the first countries who recognized Islamic Revolution of Iran.
READ MORE: APTMA demands immediate release of textile machinery
“Trade volume is extremely low as we are unable to avail the opportunities available in the brotherly country Iran. Pakistan needs basic commodities like oil gas petrochemical products, particularly Gas which is badly needed by industries and Iran has abundance of gas”, he said, adding that there has been development for barter trade with Iran but there is need to expand its operations to entire Pakistan and remove legislative barriers.
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SITE Association demand date extension for income tax return filing
Abdul Rasheed, the President of the SITE Association of Industry, has urged the government to extend the deadline for filing income tax returns, citing the recent heavy rains and floods that have severely impacted business activities across the country.
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Power tariff hike termed disaster for industries
KARACHI: SITE Association on Industry on Saturday termed the significant power tariff as disaster for industries.
Abdul Rasheed, President Site Association of Industry, while expressing deep concern over the massive hike in power tariff, Fuel Adjustment Cost (FAC) and reintroduction/ increase in fixed charges, has termed this unbearable upsurge in electricity tariff as disastrous for the industries.
In an appeal to Prime Minister Shahbaz Sharif and Federal Minister for Power Engr. Khurram Dastgir, SAI chief demanded to immediately withdraw FAC, fixed charges and increase in electricity rates to continue uninterrupted production activities, otherwise it will be impossible to run the industries due to cost overrun.
“The business community cannot bear the extraordinary increase of 80pc in electricity rates, rather industrialists will be forced to close their units as a result of this move, as they are not able to bear this huge increase in electricity rates,” he said, adding that the base tariff has been increased by Rs 9.8972 per unit, which has increased the price per unit from Rs 19 to around Rs 30 per unit.
Apart from this, 17pc sales tax and income tax will also be applicable on this increased basic tariff of Rs.30 per unit of electricity. When all these components are combined, an unbearable minimum impact to 80 per cent.
SAI president further said that various tariffs for industries suspended in the past under the policy of peak and off-peak hours have been reinstated once again. This will increase the production cost of the industries enormously. In such a case, the industrialists can reduce their production by 50 per cent because they cannot bear this burden in the severe economic crisis in the country.
Abdul Rasheed requested the Prime Minister and Minister Power to avoid excessive increase in fuel adjustment charges (FAC), fixed charges and electricity tariffs in the best interest of the economy and to save the industries from destruction.
It should be withdrawn immediately so that the anxiety of the industrial community can be removed, and they can continue their productive activities with satisfaction and create ample employment opportunities.
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Rupee depreciation disaster for industry: SITE Association
KARACHI: SITE Association of Industry on Thursday said that the continuous decline in rupee value against the dollar has brought the industry at verge of collapse.
Abdul Rasheed, President, SITE Association of Industry, in a press statement, expressed serious concerns over the silence of State Bank of Pakistan in controlling rupee devaluation.
READ MORE: SITE Association demands reversing policy rate at 7%
He demanded the central bank of taking steps to control rupee-dollar parity.
On Thursday, the dollar touched the highest ever level of Rs228 which is having adverse impact on the business activities in the country and the industries in particular, are now at the verge of collapse due to constantly increasing cost of production.
SITE President said that despite the demand of the business community to control rupee devaluation, no effective steps were taken by the State Bank of Pakistan.
READ MORE: SITE Association signs MoU for tax return filing
Instead the State Bank of Pakistan stated that the economic situation of the country is better. This statement of the SBP is contrary to ground realities as business and industries are suffering the most due to increasing dollar value.
Raw material is imported to meet the requirements of local industries. Due to costlier dollar value, the imports have also become costlier, thereby increasing production cost and making it difficult to run industries.
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Abdul Rasheed added that the government is focusing only on getting a loan from the IMF without considering how to refund the IMF loan when there will be no industry and no tax collection. In the absence of adequate tax collections, the economy will collapse.
Drawing attention of the federal government towards the gravity of the matter, Abdul Rasheed demanded to control of rupee devaluation and flight of dollar to avert its negative impact on industries and economy as a whole.
READ MORE: Key policy rate goes up to 9.75%; SBP raises 250bps in less than month
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SITE industrialists reject increase in power tariff, POL prices
KARACHI: SITE Association of Industry (SAI) on Friday strongly rejected the increase in power tariff and prices of petroleum products announced by the government a day earlier.
Abdul Rashid, President, Site Association of Industry, Karachi, while expressing deep concern over the recent increase in base tariff of electricity by Rs7.90 per unit, announced by NEPRA, and sharp increase in petroleum prices, saying that these steps should be taken back immediately in the best interest. Otherwise, the dream of development of the country’s economy will never come true.
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SAI President said that the business community would not accept the self-imposed decision of NEPRA as raising base electricity tariff without public hearing is a total violation of laws.
He termed the sharp rise in petroleum prices after the hike in electricity tariffs as dangerous for the economy, and said that it would not only lead to a storm of inflation but also cause huge losses to the industries as the production cost of the industries is already high. It has grown to an unbearable level, so the government should refrain from taking such measures as putting the survival of the industry at stake.
READ MORE: KATI demands withdrawal of electricity, petrol price hike
“The government needs to take steps to promote exports of Pakistani products so that the economy and business can flourish and that is possible only when the cost of doing business is reduced by significantly reducing the prices of electricity, gas, petroleum products and water,” he opined.
SAI chief added that raising electricity tariffs was not wise but these crises could be overcome only by focusing on increasing energy production and alternative energy projects.
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Abdul Rashid demanded Prime Minister Shehbaz Sharif to issue notification to abolish 17% sales tax on solar energy as per his promise, also explain the HS code for importing raw materials, and the 30% duty on the import of machinery should be abolished immediately so that the production activities can be promoted without any hindrance.
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Industry cries foul as gas suspension halts production
KARACHI: The industry has cried foul over suspension of natural gas, which has halted the manufacturing activities resulting dishonoring export orders.
The Industrialists of SITE Karachi have stringed up protesting banners over various roads and roundabouts of industrial areas against Gas load shedding, appealing the Prime Minister for uninterrupted supply of gas to industries of Karachi to save export and general industries including SMEs from disaster otherwise, fulfillment of export orders and new investments of billions of rupees shall be at risk.
READ MORE: SITE Association demands reversing policy rate at 7%
President, SITE Association of Industry, Abdul Rasheed, in a statement appealed Prime Minister Imran Khan that industries are facing suspension of gas supply since November 21, 2021.
Due to daily 16 hours’ gas load shedding or zero gas pressure, about 66 per cent industrial production has been effected whereas, discrimination with Karachi is catastrophic for industries and against the defined export policies of the prime minister.
Karachi is industrial and economic hub of Pakistan, despite of contributing 68 per cent to national exchequer, contributing over 54 per cent towards total exports and 52 per cent towards textile exports, Karachi is facing injustice by authorities.
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Abdul Rasheed raised the question as to why industries of Karachi solely suffers from shortage of Gas? Why is Sindh being prevented from using its own Gas?
“It seems that there is hidden intention of shutting down or destroying Karachi industries behind depriving Karachi of gas. Is depriving Karachi of gas aimed at thwarting Prime Minister’s export policy?”
Last year SSGC was provided with 150 MMCFD RLNG against only 34 MMCFD RLNG provided this year.
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He further added that Sui Northern Gas Company may also confer its appropriate share to Baluchistan and wrongly allowed 211 MMCFD gas to Sui Northern Gas may be provided back to SSGC to improve gas supply.
SAI chief has appealed to Prime Minister Imran Khan to ensure round-the-clock gas supply with adequate pressure to Karachi industries and requested to supply gas regardless of category i.e. Export, General industries or SMEs so that destruction of industries could be avoided failing which investment made by importing 3 billion dollars’ worth machinery by various industries shall be in jeopardy and will lead to a flood of unemployment.
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