Category: Business News

Karachi, February 03, 2023 (PPI-OT):Members of a delegation from Pakistan Automobile Spare Parts Importers and Dealers Association (PASPIDA), while expressing deep concerns over stuck up containers and non-issuance of LCs, stated that the situation has triggered severe crises for the automobile sector as it has been discouraging imports through legal channels and paved way for massive smuggling of spare parts through illegal channels including blatant misuse of the Afghan Transit Trade, causing severe losses not only to legitimate traders but also to the national exchequer.

“Although consignments remain stuck up at the ports yet the spare parts of all types of vehicles are easily available all over Pakistan as these are being smuggled into the country through illegal channels without any check”, said Sheikh Haroon Baksh, Leader of PASPIDA delegation during visit to Karachi Chamber of Commerce and Industry (KCCI). President KCCI Mohammed Tariq Yousuf, Senior Vice President Touseef Ahmed, Former President KCCI Muhammad Idrees, Patron-in-Chief PASPIDA Arshad Islam, Former Vice President Qazi Zahid Hussain, PASPIDA delegation and KCCI Managing Committee Members attended the meeting.

Haroon Baksh, while stressing the need to bring down the exorbitant duties on imported spare parts, informed that nowadays the Custom Authorities were imposing duties as per weight of imported consignment regardless of considering the actual worth of consignment which was totally illogical as several spare parts, though heavier, were not so expensive but these go beyond the reach of buyers after imposition of exorbitant duties calculated as per weight. “In this situation, smuggling is thriving which is neither in favour of businesses nor the already ailing economy”, he added while requesting KCCI to take up these issues with relevant authorities.

Speaking on the occasion, Patron-in-Chief PASPIDA Arshad Islam appreciated the Karachi Chamber for all the efforts being made to get the LCs and stuck-up containers’ issues resolved by devotedly taking up not only with the authorities at federal level but also with all the shipping lines and terminal operators. “While anxiously waiting for relief, the traders of spare parts are fairly optimistic that this issue will soon be amicably resolved thanks to all the hard work being done by KCCI in an extremely challenging environment”, he added.

President KCCI Tariq Yousuf, in his remarks, stated that as facilitator, it was Karachi Chamber’s top most priority to get the issues promptly resolved so that businesses as well as industries stay operational. Keeping in view the overall economic crises being faced by the country, he advised PASPIDA members to look into the possibility of setting up industries in Pakistan for locally manufacturing automobile spare parts as under the prevailing circumstances, it was no more feasible to keep relying on imported spare parts.

“In order to reduce the Current Account deficit, it has become inevitable to go for import substitution. We have to realize that Pakistan’s economic prosperity depends on greater exports and lower imports which can only be attained through industrialization”, he added and urged PASPIDA members to set up spare parts manufacturing units whereas, the Karachi Chamber will always be available to assist them in case they face any problem in dealing with relevant departments.

PASPIDA delegation members, while agreeing to President KCCI’s suggestion, stated that although they wanted to set up industries for locally manufacturing spare parts but were unable to do so due to several issues including high cost of doing business, poor infrastructure, electricity, gas and water crises along with unavailability of required raw material for manufacturing several types of spare parts.

Inconsistent policies, bureaucratic hurdles and taxation issues further discourage businessmen to get into this business whereas Pakistan’s engineering sector was also not mature enough to produce several high-quality spare parts. If the government provides an enabling business environment and a level playing field by bringing down the cost of doing business through reduction in taxes and tariffs in addition to announcing some kind of special incentives for automobile sector, many PASPIDA members would certainly set up units for local production.

For more information, contact:
Director Press/Electronic Media and Public Relations
Karachi Chamber of Commerce and Industry (KCCI)
Aiwan-e-Tijarat Road, Off Shahrah-e-Liaquat,
Karachi-74000
Phone: +92-21-99218001-09
Fax: +92-21-99218040
Email: info@kcci.com.pk, secretary@kcci.com.pk
Website: www.kcci.com.pk

The post Blocked imported consignments pave way for massive smuggling of automobile spare parts: PASPIDA appeared first on Business News Pakistan.

Karachi, February 03, 2023 (PPI-OT):President FPCCI on the occasion of book launch on Alternative to the IMF and other out of the box solutions by Dr. Shahida Wizarat, the eminent independent economist and author of more-than 100 books and papers said that the treasure of knowledge applied by the author has opened a debate in context of failure of another IMF program.

Mr. Irfan Iqbal Sheikh added that this envisages the need of debating to develop better alternatives available to sustain the economy, which has not been able to frame its structure since the rollout of 23 programs which Pakistan completely or partially has followed. He said that FPCCI the apex body representing private sector in trade, industry and service sector look forward for the alternatives built-in and applied-in from within available resources and knowledge so that the in-home structures can be the better prescription to treat the present severe ailing and crises ridden economy.

Dr. Shahida Wizarat said that the debt crisis causing outflow of massive revenues to service debts and interest payments alone, along with the very harsh conditionalities of IMF for lending, have led to very undesirable consequences on income distribution and poverty in Pakistan. Therefore, Pakistan needs to explore alternatives to IMF; including, tapping external resources from all the sources and not just export earnings; economic policies should be expansionary rather than recessionary as we are forced to have as the result of compliance to IMF and the costs of economic course correction should be transferred to the wealthy from the poor.

Ambassador Syed Hassan Javed at the book launching event said that the event is most appropriate as 28 developing countries including Pakistan have been short listed in the forecasts of IFIs, to have real chances of economic meltdown, if they continue with their current policies, which are paradoxically drawn by IMF itself. He said that it is the time that IMF needs to acknowledge clearly failure of its own prescriptions, conditionality, wisdom and programs. However, Dr. Shahida’s book is remarkable addition to literature on this subject. He said that Dr. Shahida’s book appears as a Hybrid book, meant to fight a Hybrid war, with Hybrid knowledge combining economics, diplomacy, politics and statecraft. It is a remarkable analysis of all development issues as well as solutions with strategic clarity.

Engr M. A. Jabbar, Vice President FPCCI while moderating the event and speaking on the occasion said that we must refer to understand the Einstein insanity “similar prescription with expected different results” is an analogy with Pakistan which has experienced quarter of a century IMF programs but yet it is not able to even marginally appear to be safe from the external account ambush. The example is of paying back 79 Billion Dollars in external debt by accumulating same amount in subsequent 4 years, the recent history has recorded so.

He said that much has been integral to reforms asked by IMF all the time when it enters in the claim of disciplining the Pakistan’s economy but there appears to be more complications and deterioration in economic governance in context of its bad and questionable quality and professionalism. The IMF is also accountable to its non-working treatment of the economy of Pakistan, which has caused socio economic disorder, a threat for the political and surviving stability required for a peaceful country to attract others for participating in the development economics of the country.

Mr. Nasser Hyatt Maggo Immediate Past President FPCCI said that as a business leader we tried to invite the attention of fiscal and monetary policy managers to sit with us and find the alternate solutions including in specific barter trade, currency swap and common currency settlement. He deplored the working of SBP in respect of non-availability of data in regard of import volumes and amounts as an excuse for the inability to manage the clearances of import economy. He said that SBP has also been not pro-active in taming the ill and wrong doing of banking system in Pakistan. He supported Dr. Shahida’s contents of the book supporting substituting barter trade to offset the increase in US Dollars demand.

Mr. Amjad Rafi Former President KCCI and business leader gave deliberations on the hard work which FPCCI has been doing to invite the due attention towards increasing the trade through transit and reach upto CIS for considering the same as alternate solution to reduce the demand on foreign exchange.

Mr. Suleman Chawla SVP FPCCI welcomed all the participants and said that the occasion provides all of us a chance to benefit from the knowledge leading towards increasing the advocacy for sustainable economy, which has been plagued by the complete wrong decision makings in economic management which has brought us to the bankruptcy level and is killing entrepreneurship, some of which will not be revocable. Mr. Zakaria Usman Former President FPCCI also participated and said that the approach towards active import substitution policy would be helpful in averting the trade imbalance and save us from external shocks.

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 Pakistan needs to explore alternatives to IMF: Irfan Iqbal Sheikh appeared first on Business News Pakistan.

Karachi, February 03, 2023 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has condemned the attack on the life Muhammad Lakhani, a renowned industrialist, in SITE industrial area in Karachi on Wednesday. This is unacceptable, raises fears even further and destroys whatever sense of security is left in the city; and, the Sindh Government and law enforcement agencies (LEAs) responsible for the law and order in Karachi owe an explanation in this regard, he added.

Mr. Irfan Iqbal Sheikh expressed his profound concerns that if the top industrialists are not safe in an industrial area itself, then what will happen to an SME-owner or a common man. He added that FPCCI has met the heads of all major LEAs operating or responsible for the protection and safety of the life and property of the business, industry and trade community in the last few months at the FPCCI Head Office, Karachi; and, we have categorically informed them of the increasing crime rate in the industrial and commercial areas.

Mr. Suleman Chawla, SVP FPCCI, highlighted that the abysmal law and order situation has been progressively worsening in Karachi for the past few months; and, the business community is not feeling safe in this environment. He expressed his gratitude to the almighty Allah that Muhammad Lakhani survived the attack. We cannot wait for a disaster to happen and must act now – and, act decisively, 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 Muhammad Lakhani attacked FPCCI condemns violent assault on the life of the industrialist: Irfan Iqbal Sheikh appeared first on Business News Pakistan.