Karachi Chamber of Commerce and Industry – Page 3

December 15, 2011December 16, 2011

Chamber of Commerce and Industry President has expressed deep concern over Karachi Electric Supply Company

Karachi: Chamber of Commerce and Industry (KCCI) President Mian Abrar Ahmad has expressed deep concern over Karachi Electric Supply Company (KESC) load-shedding in the seven industrial zones of Karachi.

Mian Abrar voiced that despite of repeated reminders and efforts, the KESC is not adhering to regular supply of electricity to the seven industrial zones of Karachi and due to 12 hours of industrial load-shedding, the industries of Karachi are suffering very badly. Likewise, gas pressure is also extremely low due to which the industrial production has almost come to standstill.

The Karachi Chamber of Commerce and Industry and Seven Industrial Town Associations of Karachi appeal to the Federal and Provincial Government to kindly look into the matter and instruct KESC to stop load-shedding so that industrial production can be resumed which is being affected very severely.

For more information, contact:
M. Shafiq Baig
Public Relations Officer
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road,
Shahrah-e-Liaquat, Karachi-74000
Tel: +9221 9921 8001 -09
Fax: +9221 9921 8010
Email: pro@kcci.com.pk, pro2@kcci.com.pk
Website: http://www.kcci.com.pk/

November 21, 2011November 22, 2011

12 hour protract load-shedding in industrial areas a conspiracy to destroy industry and economy of Pakistan: Siraj Kassam Teli

Karachi: Mr. Siraj Kassam Teli, Chairman BMG Group and former President Karachi Chamber of Commerce and Industry, Mian Abrar Ahmed President Karachi Chamber of Commerce and Industry, Mr. Younus Muhammad Bashir, Senior Vice President, Mr. Zia Ahmed Khan, Vice President of KCCI have expressed their deep concern over persistent load shedding in industrial areas which now prolonged to 12 hours from 8 hours.

KCCI leadership severely criticized KESC and it mismanagement that have catastrophic loss to industry economy and employment. They said if such attitude continued soon industry will be closed down and huge unemployment would be witnessed.

They further said if government remained silent spectator and did not intervene situation would be worsened and will lead to volcanic shocks and tremors to Industry and Trade .In such a highly global competitive atmosphere where economic price gives you competitive edge but rising cost in situation like this will make Pakistani products uncompetitive in the international markets.

KCCI leadership appealed to President of Pakistan Mr. Asif Ali Zardari, Prime Minister of Pakistan Syed Yousuf Raza Gilani, Dr. Asim Hussain, Minister for Petroleum and Natural Resources to intervene the matter and resolve the circular debt issue that uninterrupted supply of electricity could be made possible to industry to enable it to continuously play its role in trade particularly export enhancement.

Delegation under leadership of Siraj Kassam Teli holds successful talks with Chairman FBR, SRO 283 restored while fate of SRO 1012 will be decided later

A high level business delegation under the leadership of Mr. Siraj Kassam Teli, Chairman, Businessmen Group (BMG) and former President Karachi Chamber of Commerce and Industry, held an emergency meeting with Mr. Salman Siddique, Chairman FBR, regarding havoc created by SRO.1012 with changes in Zero-Rated Tax Regime for five export sectors.

After intense negotiation with FBR Chairman by Siraj Kassam Teli leader of Business Community and Former President KCCI, Mr. Haroon Farooki, Vice Chairman BMG group and former President KCCI, the successful negotiation brought a fruit of restoration of SRO 283 while it has been decided that fate of SRO 1012 will be decided in consultation with KCCI committee and FBR on mutual consent.

The notification for restoration of SRO 283 is being issued by FBR. The delegation included Mr. Haroon Farooki, Vice Chairman BMG group and former President KCCI, Mr. Younus Muhammad Bashir, Senior Vice President KCCI, Mr. Muhammad Ibrahim Kasumbi Chairman GST sub-committee KCCI, Mr. Muhammad Irfan Moton, Chairman SITE Association of Industry, Mr. Najmuddin Chughtai, Chairman , Pakistan Chemicals and Dyes Merchants Association, Mr. Muhammad Usman, Chairman, Pakistan Yarn Merchants Association, Mr. Tahir Mahmood Sheikh, Central Vice Chairman from Punjab and KPK for Pakistan Yarn Merchants Association Faisalabad.

The drastic and unilateral changes had adverse affects on trade causing huge loss to economy and national exchequer since many containers were held at port due to manipulation of the said SRO by relevant Collectorate officers. The business community welcomed the move and praised the efforts of Mr. Siraj Kassam Teli, Mr. Haroon Farooki and other KCCI leadership who made efforts to get resolved this hard issue amicably.

November 19, 2011November 21, 2011

Karachi Electric Supply Company has started load-shedding again due to short supply of gas from Sui Southern Gas Company and stoppage of gas load management plan

Karachi: Mr. Siraj Kassam Teli, Chairman, Businessmen Group (BMG) and former President Karachi Chamber of Commerce and Industry, Mian Abrar Ahmad President Karachi Chamber of Commerce and Industry, Mr. Younus Muhammad Bashir, Senior Vice President, Mr. Zia Ahmed Khan, Vice President of KCCI have expressed their deep concern over persistent load shedding in industrial areas and resultant colossal loss to economy and employment.

They said KESC has started load-shedding again due to short supply of gas from SSGC and stoppage of GLMP, due to winter season shortage to manage supply and demand gap. KCCI has discussed this matter with Dr.Asim Hussain Minister of Petroleum and natural resources, also brought into the notice of Mr. Asif Ali Zardari President of Pakistan and Syed Yousuf Raza Gilani, Prime Minister of Pakistan about the gravity of the situation and appealed them to intervene in this matter and to issue orders to restore GLMP to KESC to ensure uninterrupted power supply in all the industrial zones.

November 18, 2011November 22, 2011

Karachi Chamber Of Commerce and Industry has demanded to defer the implementation of SRO.1012 dated 04.11.2011

Karachi: KARACHI CHAMBER OF COMMERCE and INDUSTRY (KCCI), President, Mian Abrar Ahmad has demanded to defer the implementation of SRO.1012 dated 04.11.2011 with immediate effect until necessary consultations are held with all stakeholders including the Chambers of Commerce and Trade Bodies before any changes are made in the “Zero rated Sales Tax” regime. In his letter to Chairman FBR, President KCCI has demanded immediate appointment for a detailed discussion with representatives of the KCCI along with other major stakeholders.

He was of the view that the framework and procedures provided in the SRO.283 for “Zero rated Sales Tax” regime for five export sectors has so far worked smoothly for both the trade and industry by ensuring a level playing field.

Therefore the rate of Sales Tax for both Industrial and Commercial importers be maintained at “Zero” to avoid distortions in tax policy, prevent misuse of the zero rated facility and eliminate the scope of corruption which is an integral part of “Refund” process.

Mian Abrar Ahmad informed that delegations of Pakistan Chemicals and Dyes Merchants Association and Pakistan Yarn Merchants Association led by their Chairmen visited KCCI and requested to immediately raise the issue with concerned authority while demanding to suspend SRO-1012 and reinstate SRO 283.

Besides a large number of representations from KCCI members belonging to trade and industry as well as affiliated trade bodies, expressing serious grievances over the drastic changes unilaterally made in “Zero rated Sales Tax regime for 5 export sectors” under the SRO No.1012 dated 04.11.2011 which cancels and supersedes the SRO No.283 (I) 2011 dated. 01.04.2011.

President KCCI articulated that the assessing officers of the relevant Collectorate are misinterpreting the conditions of the SRO 1012 and charging the value addition on Sales Tax as well as the Withholding Income Tax at normal applicable rates (3% to 5%) on commercial imports of notified items.

In some cases, the total incidence of Taxes charged by the Customs has been 13% to 14% on the consignments cleared on or after November 4, 2011. Ironically, the new rules introduced in SRO 1012 provide for commercial importers to claim refund for the 5% Sales tax by issuing “zero rated” invoices to the registered industrial buyer, whereas the very idea of “Zero Rated Sales Tax” was evolved and implemented to eliminate the “Refunds” which had been a major source of corruption and resulted in heavy losses to the exchequer. The modified scheme will once again open the floodgates of corruption that is always an integral part of “REFUND” procedures.

President KCCI voiced that apparently the true spirit of Zero rated tax regime has been undermined by eliminating the entire segments of “commercial importers, traders and wholesalers” from the scope of this scheme. These important segments are a vital link in the supply chain of raw materials and intermediates mainly catering to small and medium sized industries and exporters.

The sector is not just a source of indirect finance to the SMEs but also generate employment opportunities. Such measures may lead to closure of well-established markets in major cities of Pakistan dealing in chemicals, yarns and fibers, processing aids and accessories used in all major export oriented industries.

Under the amended conditions it would be impossible for the commercial importers and wholesalers to survive and compete with the imports by those registered as industry whether or not they have a physical presence or actually conduct any exports.

Mian Abrar stated that such drastic measures without consultation with relevant representatives of trade and industry are not only surprising but also raises questions about the sincerity of concerned authorities in providing a fair and equitable environment for investment in various sectors of economy which have the potential and will to generate substantial revenue for the exchequer.

November 18, 2011November 21, 2011

Karachi Chamber Of Commerce And Industry has rejected the recent news by Economic Coordination Committee to increase gas load-shedding for industry and CNG sector

Karachi: KARACHI CHAMBER OF COMMERCE and INDUSTRY (KCCI), President, Mian Abrar Ahmad, has rejected the recent news by Economic Coordination Committee (ECC) to increase gas load-shedding for industry and CNG sector. President KCCI, in a press note stated that the KCCI takes a very exception to the said news regarding gas load-shedding and the possible curtailment to the industries and CNG sector in Sindh in spite of ample reserves and gas availability in the province so that an even load shedding time table can be introduced across the country.

He cautioned that the decision would severely harm the economy and demanded to consult with Business Community. He also warned that the situation arising out of gas outages will lead to colossal collapse in commitment to export orders, flight of capital, huge labour layoffs, and worsening of law and order situation and decline in the revenue of the government.

He said that on one side government is contemplating to increase targets for nominal growth and on the other side its harsh decisions to increase utility tariffs and gas and power outages are posing severe threats for achieving the said target. At present, country is going through a very serious economic crisis in terms of escalating cost of production/ manufacturing based on continuous rise on the utilities, he concluded.

October 12, 2011October 14, 2011

Karachi Chamber of Commerce and Industry rejects proposal of two-weekly holidays

Karachi: Karachi Chamber of Commerce and Industry (KCCI), President, Mian Abrar Ahmad, in a press statement, has expressed deep concern and rejected proposal of 5-days working week/ two-weekly holidays for all government departments and its affiliated institutions in the name of energy conservation.

President KCCI voiced that the country was passing through most difficult times of its history when the injured economy due to manifold internal and external problems was demanding to work 365 days in year for its recovery.

He strongly opposed the two-holiday proposal likely to be submitted in scheduled Energy Conference to be chaired by Prime Minister. He said that previous practice by the Government when 5-days week was observed for public sector, customs and ports severely hampered the commercial and industrial activity, exports of consignments and timely clearance of goods were suffered. He said that due to such practice Pakistan remain cut off for three and half days with rest of the world.

Mian Abrar was of the view that to uplift the economy Government must consider to curtail the gazetted holidays and reject the proposals of bureaucracy for two weekly holidays and advancing the clock in the name of energy conservation. He stated that such exercises proved futile in the past and every segment of life was disturbed by such activity.

Mian Abrar stated that nowhere in the world, banks close when the commerce and industrial sector is operative even in the countries where 5-days week is observed and commercial banks are open on Saturdays.

Exporters maintaining trade ties with Gulf countries faced additional elimination of Friday being observed as holiday in Gulf. Same is for the customs and ports and they cannot be close down for two days as their closure will stop valuable exports of this country and timely clearance of imported goods.

Mian Abrar voiced that conservation was a crying need of the day but same must not be done while penalizing the commerce and industry and ultimately this will severely impede the business activities leading to decline in government’s revenue and economic instability.

President KCCI also urged the Government to look into the matters of forceful strikes by political, ethic and religious elements. He was of the view that to curtail the government expenditure and conserve energy, austerity measures should be taken to minimize and control the management and administrative costs, power transmission and distribution losses, improve distribution of power and gas, introduce conservation management system and eradicate corruption.

October 3, 2011October 4, 2011

Karachi Electric Supply Company trying to create breech between industrial consumers and others

Karachi: Karachi Chamber Of Commerce and Industry (KCCI) President, Mian Abrar Ahmad, while commenting on the Press Release by KESC over industrial load-shedding, has strongly reacted that the KESC’s Press Release looks like that utility has taken upon the role of the Government and is trying to dictate the Government and at the same time trying to create breech between industrial consumers and others.

KESC is also trying to destroy billions of rupees investment of the industry in captive power plants. Here it would be worth mentioning that this huge investment was made by industrialists as KESC was unable to meet the requirements of industry and this investment was made as a last resort to keep the wheels of industry running.

President KCCI appealed to President of Pakistan, Prime Minister, Governor Sindh, Chief Minister Sindh to take notice of un-constitutional steps/ statements initiated by KESC. He went step further to say that KESC is trying to create law and order situation and it should be noted in light of PCO. He gave following points for their consideration.

1) Misleading statement with regards to quantum of gas utilized by Captive Power Plants, it is 160 MMCFD not 175 MMCFD

2) Industry has been closed for 8 hours. 2 spells of 4 hours each un-necessarily and in all the past years in case of supply of 160 MMCFD, there will be zero load-shedding. Why then today, Gas supply is 175 MMCFD, industry is being shaded for 8 hours.

3) KESC by shedding industry wants to bankrupt the entire industrial sector

4) Blackmailing Government of Pakistan, as when industry stops functioning, Government is afraid of unemployment ratio going up, and when industry creates hue and cry, new investment also shy away and the Government knowing population growth want it other way round.

5) To take Government of Pakistan under pressure so that they do not pressurize for payment to SSGC and PSO and they are somehow siphoning the fund in the name of expenditure, O and M import at exorbitant rates etc. Today KESC has to pay more than 50 billion to these utilities.

In the light of all above and with a confirm view of blackmailing attitude of KESC, Industrial Associations have decided not to pay KESC bills and deposit the same as per the due date to respective Associations and this would be paid only after immediate withdrawal of load-shedding and long term guarantee of KESC for un-interrupted supply to all industrial areas. President KCCI also informed that the way industry is being treated by KESC, is sure recipe of bankruptcy and chaos.