Private-sector investments businessmen sentiment at an all-time low

Karachi, April 11, 2023 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has apprised that the private-sector in Pakistan is under enormous distress and its investments have dried up due to 21 percent key policy rate; extreme volatility in rupee-dollar parity; consultation-less economic policymaking; absence of support package to cope up with the lingering aftermath of historic floods and multiple rounds of major upward revisions of electricity and gas tariffs.

Mr. Irfan Iqbal Sheikh stressed that the businessmen’s confidence in the government policies has completely evaporated and its handling of IMF program has brought all the economic activities on a standstill. We have never seen such a lack of ease of doing of doing business environment in the history of Pakistan, he added.

FPCCI Chief highlighted those exports have declined by 15 percent in eight months of the current fiscal year; remittances down by 20 percent except March 2023; Asian Development Bank (ADB) has cut down Pakistan’s economic growth forecast for FY23 to 0.6 and World Bank has projected it at 0.4 percent; no reliable data is available on the current state of unemployment in the country; gap between inter-bank and open-market continues to remain rickety and containers are still not released smoothly.

Mr. Sheikh, as President FPCCI, the apex trade and industry body of Pakistan, has questioned the seriousness of government, on behalf of the entire business, industry and trade community of Pakistan, in bringing transparency and consultation in the economic policymaking; and, has reiterated his stance that the government should provide answers to the two sets of questions for businesses to plan their year ahead:

(i) what are the factors or impediments that are hampering the never-so-elusive IMF deal and what the government is doing about it (ii) what steps will be taken after the resumption of IMF program to stabilize the economy and how and when the government plans to take the business community into confidence on these steps.

Mr. Irfan Iqbal Sheikh also stated that Pakistan’s domestic debt has climbed up to 27 trillion rupees as compared to 16.5 trillion rupees just a decade back; and, it has battered the ability of government to invest in infrastructural development; promoting industrialization; providing targeted subsidies to export-oriented industries and health, education, skills development, women empowerment and other social uplift avenues.

Mr. Irfan Iqbal Sheikh maintained that upping the budgeted tax collection target of 7,004 billion rupees to 8,709 billion rupees on the dictates of IMF will further tax the already tax; instead of broadening and simplification of the taxation system. In the above-mentioned scenario, no business will be able to operate profitably; let alone investing into new industries for exports, import substitution and employment generation, he added.

Mr. Irfan Iqbal Sheikh maintained that upping the budgeted tax collection target of 7,004 billion rupees to 8,709 billion rupees on the dictates of IMF will further tax the already tax; instead of broadening and simplification of the taxation system. In the above-mentioned scenario, no business will be able to operate profitably; let alone investing into new industries for exports, import substitution and employment generation, he added.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

Chairman senate’s announcement to give representation to FPCCI in senate committees

Karachi, April 10, 2023 (PPI-OT):Consulting the business community in economic policies and legislation is indispensable. Chairman Senate’s announcement to give representation to FPCCI in Senate Committees and FPCCI President to be given the status of Federal Minister. It was told to a high-level delegation of FPCCI under the leadership of Governor Khyber Pakhtunkhwa Haji Ghulam Ali and Mian Anjum Nasir who met Chairman Senate Muhammad Sadiq Sanjrani.

The delegation provided valuable feedback to the Chairman Senate on the current economic situation, and challenges faced by the business community. During the meeting, different ways to improve the overall business environment and economic situation in Pakistan were discussed. Mian Anjum Nisar former President of FPCCI.

Vice President FPCCI and Chairman Capital Office Aminullah Baig. Vice President FPCCI and Chairman Regional Office Lahore Muhammad Nadeem Qureshi. Former Senior Vice President FPCCI and Former Chairman PPMA Khawaja Shahzeb Akram. Chairman Coordination FPCCI Capital Office Mirza Abdul Rehman. Former Vice President FPCCI Muhammad Riaz Khattak.

Founder President Sargodha Small Chamber Sheikh Mohammad Asif Iqbal. President Islamabad Small Chamber Muhammad Sajjad Sarwar. Group Leader Rawalpindi Chamber Sohail Altaf. Vice President Lahore Chamber Adnan Khalid Butt. Chairman Pakistan Cotton Yarns Association Talat Hussain.

Chairman All Pakistan Cotton Targeted Cotton Manufacturing Association Ijaz Qureshi. Chairman Ferozepur Industrial Association Muhammad Shahid Baig Founder President Malakand Chamber Shoaib Khan are part of the delegation. Governor Khyber Pakhtunkhwa Haji Ghulam Ali said that the business community has a key role in the economic development of the country.

The economy and industry are the main pillars of our state. All sections of society, including politicians and the business community, should think beyond all kinds of politics and play their role in the economic development of the country. Speaking on this occasion, Chairman Businessmen Panel and former President FPCCI Mian Anjum Nisar.

Vice President FPCCI and Chairman Capital Office Amanullah Baig. Vice President FPCCI and Chairman Regional Office Lahore Muhammad Nadeem Qureshi. Former Senior Vice President FPCCI and Former Chairman PPMA Khawaja Shahzeb Akram.

Chairman Coordination FPCCI Capital Office Mirza Abdul Rehman and others said that the consultation process between the government and the business community needs urgent recommencement.

During the meeting, the Chairman of the Senate expressed his keen interest in hearing the suggestions and recommendations of the members of the business community for effective legislation, and commitment to work together with the business community to create a favourable environment for economic development and business in the country. He further emphasized the need for joint efforts between the government and the private sector.

Senate said that the business community has a key role in the economic development of the country and the Senate of Pakistan will support them in every possible way he is of the view that despite the current most difficult conditions the businessmen and industrialists doing business in Pakistan are heroes of the country.

added that proposals from the business community should be included in the budget because they are an integral part of the budget as they are direct stakeholders. Many countries in the world are run by their businessmen, but in Pakistan, it is the opposite. He added that consultation with the business community should be mandatory in economic policies and legislation.

Chairman Senate Sadiq Sanjrani also announced the representation of FPCCI in the 3 Senate Standing Committees i.e. Finance, Commerce, Industry and Production he also said that the President of the Federation Chambers of many countries of the world has the status of Federal Minister, the senate of Pakistan has also taken up the matter working on it to get the status of Federal Minister for the President of the Federation of Pakistan Chambers of Commerce and Industry to elevate his position which will help in getting foreign investment.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

Tragedy at the ration drive FPCCI denounces arrests and harassment of factory owners Suleman Chawla

Karachi, April 03, 2023 (PPI-OT):Mr. Suleman Chawla, Acting President FPCCI, has offered heartfelt condolences to the families and loved ones of the tragic incident of stampede at a ration distribution drive in Karachi’s SITE industrial area – resulting in the most unfortunate loss of precious human lives.

Mr. Suleman Chawla explained that it was being conducted, without an iota of doubt, with a highly-noble, praiseworthy and exemplary intention; and, was aimed at the cause of helping poor, destitute and needy people of the city; so that, they can feed their families with dignity in these times of staggering food inflation and shortages – which is unmatched in the history of Pakistan!

Mr. Suleman Chawla, nonetheless, strongly denounced the illogically premature, disheartening and threatening arrests and harassment of the factory owners and management staff of the factory that took a noble, humane and socially-responsible initiative in the holy month of Ramazan. The people who help the needy on a mass-scale with sustenance food should be our role models and must be encouraged; instead of being punished for their philanthropy.

Acting FPCCI Chief also questioned the indecision and inaction of the government in tackling stagflation and unemployment in the country; and, its own numbers are showing a 46.65 percent inflation in the sensitive price index (SPI). What the government has done to manage and regulate the supply-side disruptions, he added.

Mian Nasser Hyatt Maggo, immediate past President FPCCI, questioned the hushed-up operation against the philanthropists; who were practically and selflessly distributing the sustenance goods among the masses without asking for their cast, creed, color or religion.

Mian Nasser Hyatt Maggo maintained that a meticulous inquiry should have been conducted before taking any punitive or disciplinary action; and, the entire business, industry and trade community of Pakistan is taken aback with such harsh legal proceedings, i.e., arrests and remands.

Many businessmen will now be afraid of ration distribution for the fear of any untoward incident and their maltreatment in the aftermath; and, poor families will suffer the most as the result, he added.

Engr. M. A. Jabbar, VP FPCCI, stressed that there is no such SoP, law or regulation that mandates the compulsory intimation to police or DC office before distribution of ration, zakat or Sadaqat. He questioned the federal government over a number of deaths and injuries during their own distribution of wheat flour and added that these are very tough economic conditions and people are desperate.

Engr. M. A. Jabbar seconded that opinion of Sindh provincial minister, Mr. Saeed Ghani, that the government should have a consultative process with the philanthropists and business community to formulate a practicable mechanism for the delivery of aid through Benazir Income Support Program (BISP) database; in order to make aid delivery safe, efficient and transparent.

Engr. M. A. Jabbar has apprised that Mr. Riaz Uddin, President of SITE Association of Industry, has fully supported and endorsed FPCCI’s point of view in the above matter.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

The post Tragedy at the ration drive FPCCI denounces arrests and harassment of factory owners Suleman Chawla appeared first on Business News Pakistan.

Dwindling Exports National Economic Policymaking is rudderless

Karachi, March 25, 2023 (PPI-OT): Mr. Suleman Chawla, Acting President of the apex body, i.e. FPCCI, has strongly criticized the team of country’s economic managers for lack of direction; non-existent consultative process between the government and the business community and an unprecedented long-drawn-out waiting period before the IMF deal could be revived.

He reiterated FPCCI’s stance that most of the major economies of the world have a share of regional trade in upwards of 70 percent; whereas, Pakistan’s trade with the regional countries have never been able to take off and now it seems to have gone into a reverse gear.

Mr. Suleman Chawla added that exports and remittances – the two mainstays of generating foreign exchange for the country – are in a freefall; as exports to nine regional trade partners have declined by 18.3 percent in the first eight months of FY23; over all textile exports have declined by 11 percent with a contraction of 30 percent in February 2023 on a MoM basis and decline in country’s exports has been steady over the last eight months.

Mr. Suleman Chawla apprised unequivocally that FPCCI is observing with profound concerns that the decline in exports is incrementally snowballing into a complete nosedive, as on a YoY basis, October 2023 saw a 3.25 percent decline; November 17.6 percent; December 16.3 percent and January 2023 witnessed a decline in exports to the tune of 15.4 percent. This is a systemic decline; and, need to be arrested through a broad but effective consultative process, he added.

Acting FPCCI Chief noted that remittances experienced a 32-month low in January 2023 with a mere $1.89 billion inflows; which should have sent shivers down the spine of country’s economic managers. He added that country’s total foreign exchange reserves (FER) would have been close to $15 billion currently; if the government had managed only one aspect of the external inflows, i.e. worker’s remittances well and if they had not declined by 20 percent on a YoY basis – and that, by now, would have been the decisive factor in the successful materialization of IMF’s 9th review.

Mr. Suleman Chawla maintained that Pakistan’s total FER are just above $10 billion after accounting for the reserves with the commercial banks as well and SBP has only $4.6 billion. SBP reserves are what really counts, he added.

FPCCI has demanded that the government should bring forth some transparency and clarity vis-à-vis its management of external account; and, what exactly is hampering the IMF staff-level agreement (SLA). Mr. Chawla also demanded that government should also outline the subsequent steps for stabilization of the economy after and if IMF deal is finally struck.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

The post Dwindling Exports National Economic Policymaking is rudderless appeared first on Business News Pakistan.

Export Facilitation Scheme All Prior Schemes will be replaced on 14th August 2023

Karachi, March 21, 2023 (PPI-OT): Mr. Shabbir Mansha, Vice President FPCCI, has apprised the business, industry and trade community of Pakistan that, with effect from 14th August 2023, all prior SROs pertaining to export facilitation will be replaced by one comprehensive Export Facilitation Scheme (EFS) 2021 – which came under effect under SRO. 957 (i) / 2021.

Mr. Mansha reiterated FPCCI’s stance that customs procedures must be streamlined and simplified for greater awareness, trade-friendliness, compliance and encouraging exporters through facilitation and creating enabling environment – whereas, EFS 2021 is currently running parallel to other schemes, e.g. Manufacturing Bond, DTRE and Export Oriented Unit.

Mr. Shabbir Mansha noted that EFS entails remission of import duty, sales tax, FED and WHT on acquisition through import and local purchase of raw materials; as well as, plant, machinery, equipment and spares required for the manufacturing of goods meant for export. Domestic sale of output goods allowed under EFS would be up to 20 percent on payment of duty and taxes on assessed value of finished goods, he explained.

Mr. Shabbir Mansha, however, demanded the customs officials to iron out the teething problems before the full-fledged implementation of the EFS. We have also asked all chambers and associations; which come under the umbrella of FPCCI to share their concerns and feedback – so that, we can raise them with the officials, he added.

Mr. Jamshed Ali Talpur, Collector of Customs (Exports) for Karachi, explained that under EFS, regulatory functions have been assigned to Customs Collectorates, IOCO / EDB and PCA; while, territory-based jurisdiction has been assigned to Collectorates. Additionally, address of business place for commercial exporters and manufacturing units will be determined by Regulatory Collectorate.

Mr. Talpur further added that applications of all existing users of DTRE, MB, EOU, having IOR/wastage already determined will be processed by the Regulatory Collectorate. Application of new entrants are referred to IOCO for determination of input-output ratio and production capacity for uploading quota in the WeBOC or PSW. In case of delay beyond 30 days, the system shall automatically grant authorization for acquisition of input goods, as per application, on provisional basis, he added.

Mr. Jamshed Ali Talpur, Collector of Customs (Exports) for Karachi, highlighted that EFS is admissible to manufacturers for direct or indirect exports; commercial exporters; international toll manufacturers and common export houses as well. Scope of the term ‘export’ has been broadened in EFS and supply in Pakistan against international tender defined as export, he added.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

The post Export Facilitation Scheme All Prior Schemes will be replaced on 14th August 2023 appeared first on Business News Pakistan.

Lithuanian Ambat FPCCI Pakistani Exporters should tap the Baltic Region

Karachi, March 21, 2023 (PPI-OT): Mr. Suleman Chawla, Acting President FPCCI, has proposed that Pakistani exporters should tap the potential to export to the emerging European economy of Lithuania in the Baltic Region. He also expressed his admiration of the fact that Lithuanian economy has grown by over 500 percent since 1990 – and that, for all practical reasons, points us to the direction to where the Lithuanian economy is headed.

Mr. Suleman Chawla appreciated the fact that H. E. Ricardas Degutis, Ambassador of Lithuania to Pakistan, visited the FPCCI Head Office within days of his assuming the role; and, that shows his seriousness to promote trade and economic relations between the two countries. He added that FPCCI will explore the possibility of signing an MoU in trade promotion with its counterpart chamber in Lithuania to pave the way for an enhanced economic cooperation agenda between the governments of the two countries.

Acting FPCCI Chief highlighted the fact that Pakistan has always regarded Lithuania as one of the important countries for trade and strategic affairs given its geographical location at the Baltic Sea; and, sharing land borders with Russia, Poland and Belarus. Mr. Chawla extended his full support from the platform of FPCCI to help organize trade visits and B2B engagements of Lithuanian importers and investors to explore Pakistani world-class textiles; leather products; IT and ITeS; sports goods; surgical instruments; mineral and natural resources; rice, fruits and vegetables and hospitality and tourism.

Mr. Suleman Chawla apprised the session that Pakistan has made tangible gains with Lithuanian neighbours Russia and Belarusin the recent months vis-a-vis trade relations. It is only logical to expand those gains to the Baltic Europe, he added. H. E. Ricardas Degutis, Ambassador of Lithuania to Pakistan, informed the prominent business personalities at FPCCI Head Office that he is willing to play his role, as country’s top diplomat for Pakistan, to connect FPCCI to Chamber of Lithuania as people-to-people and business-to-business linkages must be fostered to strengthen economic relations.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

The post Lithuanian Ambat FPCCI Pakistani Exporters should tap the Baltic Region appeared first on Business News Pakistan.

The Ambassador of the Republic of Kosovo held a meeting with Mr. Amin Ullah Baig Vice President of FPCCI Pakistan promoting trade relations with Kosovo could enhance its exports to the International Markets: Envoy

Karachi, March 15, 2023 (PPI-OT): H.E Agon Vernezi, Non-Resident Ambassador of the Republic of Kosovo to Pakistan visited FPCCI Capital Office, Islamabad held a meeting with Mr. Amin Ullah Baig Vice President of FPCCI and Incharge along with Zahid Anjum Honorary Consul republic of Kosovo and Mr. Gent Gjikolli, Frist Secretary Embassy of Kosovo. During the meeting, the matters of enhancing cooperation in diverse fields, including tourism, trade, investment, technology, and exchange of business delegations were discussed.

The Ambassador of the Republic of Kosovo appreciated Pakistan’s support in their struggle for independence. He said that Kosovo wants to strengthen its trade and economic relations with Pakistan as both countries have good potential to trade in many areas. Pakistani investors may use Kosove as a hub to promote their exports to European markets.

Agon Vernezi, said that Kosovo was interested in developing sector-specific relations with Pakistan to make some tangible progress and later those ties could be diversified to cover more areas of cooperation.

He was of the view that regular interaction between the private sectors of the two sides with follow-up meetings should be the way forward to further strengthen bilateral trade and economic ties between Kosovo and Pakistan.

Speaking on the occasion, Amin Ullah Baig Vice President FPCCI and Incharge Capital Office, said that Pakistan could export many products to Kosovo including textile goods, pharmaceuticals, surgical instruments, IT products and services, sports goods, leather products, fruits and vegetables.

He said that Kosovo is an unexplored market for the Pakistani business community and emphasised that both countries should facilitate the exchange of trade delegations and organise B2B meetings.

Amin Ullah Baig, emphasized evolving institutional mechanisms to promote economic and commercial cooperation as well as to enhance awareness about trade and investment opportunities available in the two countries.

He further said that the business community could play an important role in forging stronger relations between the two countries. The need for exploring the possibility of the establishment of a Pakistan-Kosovo Business Council in the respective Federation Chambers was also agreed upon during the meeting.

Mr. Rana Muhammad Siddique EC Member FPCCI, Mr. Arif Malik President Skardu Chamber, Mr. Syed Mansoor Nadeem, Islamabad Chamber, and Farukh Alvi Mining Association were also present on this occasion.

For more information, contact:
Head Office,
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
Federation House, Main Clifton, Karachi, Pakistan
Tel: +92-21-35873691-94
Fax: +92-21-35874332
Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

The post The Ambassador of the Republic of Kosovo held a meeting with Mr. Amin Ullah Baig Vice President of FPCCI Pakistan promoting trade relations with Kosovo could enhance its exports to the International Markets: Envoy appeared first on Business News Pakistan.