Category: Business News

Islamabad, February 27, 2023 (PPI-OT):Former Vice President of FPCCI Atif Ikram Sheikh on Sunday said interest rate hike by 200bps on IMF demand will be too much. The move will increase cost of doing business and bankrupt many businesses but it will also reduce inflation and strengthen rupee, he said. Pakistan has assured the IMF it will raise its policy rate by two percentage points in order to meet the conditions set by the lender to revive the loan programme, he added.

Atif Ikram Sheikh who has also served as Chairman PVMA said in a statement that the virtual negotiations between both sides continued and details regarding reforms in the power sector are being finalised which will lead to a staff-level agreement. The dysfunctional power sector has become one of the major stumbling blocks between Pakistan and the IMF.

Pakistan has also briefed the lender in detail on external financing till June, the sources said, adding that the IMF was also holding talks with the concerned countries for assurance. Our authorities have been negotiating with the IMF since early February over policy framework issues and are hoping to sign a staff-level agreement that will pave the way for more inflows from other bilateral and multilateral lenders.

Once the deal is signed, the lender will disburse a tranche of more than $1 billion from the $6.5 billion bailout agreed to in 2019. Pakistan has already taken a string of measures, including adopting a market-based exchange rate, hike in fuel and power tariffs, withdrawal of subsidies and more taxation to generate revenue to bridge the fiscal deficit.

The strict measures are likely to further cool the economy and stoke inflation, which stood at 27.50% in January. Pakistan’s economy has been in turmoil and desperately needs external financing, with its foreign exchange reserves dipping to around $3 billion, barely enough for three weeks’ worth of imports. Long-time ally China this week announced refinancing of $700 million which was a relief in the current situation.

For more information, contact:
Atif Ikram Sheikh
Ex. Chairman PVMA, Former VP, FPCCI,
Former President ICCI, Former President HCCI,
Tel: +92-51-4437597, 4440772
Fax: +92-51-4440773

The post Interest rate hike by two percent will be too much appeared first on Business News Pakistan.

slamabad, February 27, 2023 (PPI-OT):Achieving gender equality and women’s empowerment is integral to each of the 17 Sustainable Development Goals (SDGs). The implementation of SDGs ensures that women and girls will receive justice and inclusion in economies that work for all. Pakistan with a population of 107 million women, has been reported as the second-worst country in terms of gender parity. Focusing on the issue of gender equality is not only a necessity but also should be taken as a priority.

Pakistan has been ranked 145 out of 156 countries for economic participation and opportunity by the Global Gender Gap Index Report 2022. The missing elements in the country profile of gender statistics and the recognition of the need to fill critical gaps in data coverage have increased exponentially for Pakistan.

Islamabad Women’s Chamber of Commerce and Industry and Cyntax Health Projects have collaborated to focus on developing solutions for providing women with equal access to education, entrepreneurial opportunities, health care, decent work, and representation in political and economic decision-making processes for social cohesion and prosperity.

To turn this mission into action, IWCCI Gender Equity Hub has been launched which will address gender inequities and develop transformative gender and diversity policies for the female workforce in Pakistan. It will form a national focus for gender-balanced workforce transformation.

It will also act as a direct national link with the global equity programs. The hub will create clear evidence-based strategies for addressing gender and diversity inequalities in female workforce development in Pakistan for better SDGs achievement and reporting from a gender lens. The chief guest on the soft launch of the IWCCI Gender Equity Hub was Federal Ombudsman FOSPAH, Madam Kashmala Khan.

She appreciated the efforts of both organizations and highlighted the need of creating awareness of gender rights and opportunities for women available in the country through the use of digital media. The event was attended by members of the embassies of Italy and Egypt, representatives of the State Bank of Pakistan, and women entrepreneurs.

For more information, contact:
President,
Islamabad Women’s Chamber of Commerce and Industry (IWCCI)
Mobile: +92-323-5343199
Tel: +92-51-2252256

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Karachi, February 27, 2023 (PPI-OT):The Union of Small and Medium Enterprises (UNISAME) has invited the attention of Prime Minister Shehbaz Sharif that the Small and Medium Enterprises (SMEs) are the destiny of Pakistan and can bring about a betterment in the economy and must be facilitated, supported and encouraged in such challenging times, a statement said on Saturday.

UNISAME President Zulfikar Thaver said: “We have reiterated that the only sector, which can bring about a remarkable change in the badly-hit economy is the SME sector, as this sector is facing setbacks because of the rupee depreciation, inflation and unavailability of funds for imports of raw and packing materials, logistics, medicines and fuel.

However, the majority sector is ready to face challenges and are prepared to continue to manufacture the requirements of domestic and foreign markets made mostly from the indigenous resources. Thaver said that the SME sector is demanding a facility for the import of a small percentage of items they need to import to complete their production cycle due to unavailability of specific components and parts or ingredients, which are needed to be imported.

The UNISAME Council members have; therefore, urged the government not to stop import of such items, as the entire production will not move unless such items are made available. The council has urged the State Bank of Pakistan (SBP) to contact the international support funds or donor agencies to finance or invest in the imports or seek support from the international commodities exporters on pay as you earn schemes or give 367-day credit for the payment of bills of exchange. Another option could also be to allow the overseas Pakistanis to import with their own funds from abroad and take the value back after a determined period of time.

The UNISAME Council also suggested measures to pump up dollars to the SBP, including giving a sizeable rebate on the workers’ remittances up to a specific threshold for short-term. The Pakistan Remittance Initiative (PRI) Scheme of the SBP can be expanded for it. Also evaluate a separate interbank rate for the workers’ remittances to encourage direct flows. The steps already taken by the government to increase the profit rates on the foreign currency accounts and other saving schemes of foreign residents are appreciated and hopefully increase savings in Pakistan, it added.

For more information, contact:
Union of Small and Medium Enterprises (UNISAME)
75/1 3rd Commercial Street, Phase IV, D.H.A.,
Karachi, Pakistan
Tel: +92-21-35884225-6
Fax: +92-21-35380642
Cell: +92-300-8245307, +92-321-8245307
Email: unisame@gmail.com
Website: http://www.unisame.org/

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Karachi, February 27, 2023 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has welcomed the Korea Trade-Investment Promotion Agency (KOTRA)’ initiatives in Pakistan for youth empowerment; skills development; world-class vocational training; productive efficiency enhancement and employment generation.

Mr. Irfan Iqbal Sheikh has expressed his satisfaction that the productive capacity of Pakistani engineers working in automobile plants has increased substantially and their efficiency has also increased by 20 percent with the help of various trainings and vocational education programs of friendly country of South Korea’s KOTRA. We need to learn from Korean industrial standards and try to adapt them in Pakistan, he added.

Mr. Irfan Iqbal Sheikh stressed that in the total bilateral trade of $1.6 billion with Korea, Pakistani exports stand at merely $191; resulting in a massive bilateral trade deficit, year after year. He proposed that KOTRA should help Pakistani exporters to improve B2B and Chamber-to-Chamber linkages with their Korean counterparts – and, enable them to find their expanded export market in value-added textiles; leather products; sports goods; IT and IT-enabled Services (ITeS); cement and related products; surgical goods and natural minerals.

Engr. M. A. Jabbar, VP FPCCI, said that FPCCI is concerned at the shortages of raw materials at Lotte’s Pakistan plant; which is a Korea’s top multinational conglomerate and playing an important role in Pakistan’s industrial and economic development. He added that FPCCI requests the government to resolve the pending LCs of Lotte ASAP.

Engr. M. A. Jabbar apprised that there are at least 25 major Korean companies operating in Pakistan and generating a lot of economic activities and employment. We should facilitate and incentivize them; so that, more Korean companies can establish their presence in Pakistan. Engr. M. A. Jabbar explained that the only way forward for Pakistan is rapid industrialization and aggressive import substitution; and, Korea is the right partner for FDI in various industrial sectors; joint ventures and manufacturing collaborations.

Mr. Sung Jae Kim, Director General of KOTRA Karachi Office, briefed the session that KOTRA is willing to expand its services and programs in Pakistan. He also emphasized that Pakistan can increase their exports to Korea through quality assurance at par with Korean standards; and, this will reduce the bilateral trade deficit of Pakistan with Korea. However, DG KOTRA, added that the government of Pakistan should look into the pending LCs; shortages and delays of raw materials; profit repatriation and other foreign exchange related issues of Korean companies in Pakistan.

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/

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Karachi, February 27, 2023 (PPI-OT):President Karachi Chamber of Commerce and Industry (KCCI) Mohammed Tariq Yousuf has requested Commissioner Karachi Iqbal Memon to establish ‘Special Reporting Cells (SRCs)’ at all districts in Karachi so that the local representatives could able to submit their recommendations about the infrastructure development work requirements in their respective areas. “Setting up the proposed SRCs would certainly help in prompt commencement and completion of development work and improve roads and drainage system in Karachi to some extent”, he added.

While expressing deep concerns over rising activities of drug peddlers during a meeting held at Commissioner Karachi’s Office, President KCCI pointed out that all such illegal activities were widely being carried out from slum areas where drug peddlers have established dens to sell narcotics which have to be completely cleansed by initiating anti-narcotics drive so that our youngsters could be saved from falling prey to these anti-human elements.

Seeking Commissioner Karachi’s help in dealing with rising encroachments, President KCCI pointed out that although the government has been expanding roads from time to time to ensure smooth flow of traffic but unfortunately, traffic usually gets clogged for hours at some of the well-known and most busiest roads of the city as a substantial portion of these roads has been illegally taken over by restaurants, particularly tea sellers who place chairs and tables on roads as well as footpaths to provide dine-in facility to customers.

He said, “You’ll seldom find such an example in any other country except Pakistan, particularly in Karachi where dine-in facility was being provided either on a footpath or road whereas the fruit vendors can also be seen occupying almost two lanes of the roads, chocking the main boulevards, especially the road near the underpass which connects Site area with Nazimabad.”

He also pointed out that the sufferings of people living around the National Stadium was uncalled for and totally unparallel as people inhabiting in these areas are denied access to their own homes. “There has to be some other security measure which can be undertaken to protect the teams playing in the National Stadium but at this point in time, it is really a big harassment to the people living around the vicinity of national stadium, hence, the local administration has to come up with ideas to minimize the grievances being faced by the public”, he added.

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

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Karachi, February 22, 2023 (PPI-OT):Ambassador Rizwan Saeed, Additional Secretary Middle East Ministry of Foreign Affairs, visited FPCCI for a meeting with President Irfan Iqbal Sheikh and FPCCI Vice Presidents Aminullah Baig and Umar Masood Rahman. The purpose of the meeting is to discuss access of Pakistani products to the Middle East market and increase in exports, attract foreign investment through the facilitation of Pakistan abroad missions. The FPCCI President Irfan Iqbal Shaikh said that over the decades, countries around the world have started adopting their models of economic diplomacy, which aims to regulate the interaction of foreign policy with economic interests. The economy is of primary importance in today’s world politics.

Economically stable countries are important in foreign policy or power politics in the world. The tragedy of Pakistan’s politics is that both its internal and external fronts have been suffering from many kinds of problems and contradictions. This is the reason why we have not been able to stabilize politically and economically.

Irfan Iqbal Sheikh while presenting various suggestions regarding the improvement of the Pakistani economy and increase in exports said that the introduction of Pakistani products outlets of Pakistani retail sectors should be opened in the Middle East and instructions should be given to Pakistani embassies to take steps to promote investment in various sectors including medicine, tourism, information technology, agriculture. He urged that the appointment and deployment of commercial attachés should be on merit and related sectors and in the experiment and the approval of FPCCI and they should be given special targets to achieve within the specified time.

e. Special display centres for Pakistani products should be established in Pakistani embassies. High-level trade delegations and single-country exhibitions should be ensured to boost trade. In this regard, appropriate guidance should be obtained from FPCCI, the largest commercial organization in Pakistan.

On this occasion, the Additional Secretary of the Ministry of Foreign Affairs for the Middle East, Ambassador Rizwan Saeed, ensured all possible facilities and support to the President of FPCCI, Irfan Iqbal Sheikh, on behalf of the Government of Pakistan, the Ministry of Foreign Affairs and Pakistani embassies around the world, especially in the Middle East. He assured that the government of Pakistan is taking steps for the development of industry and trade in the country, increase in exports and promotion of tourism. All embassies of Pakistan will work together with FPCCI for investments in tourism, IT, medicine and other sectors, and access to international markets for Pakistani products.

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 Additional Secretary Middle East called on President FPCCI the economy is of primary importance in today’s world politics: President FPCCI Irfan Iqbal Sheikh appeared first on Business News Pakistan.

Karachi, February 22, 2023 (PPI-OT):Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday lauded the leadership of IMF that took note of the plight of Pakistan people and asked our government to tax rich and subsidize poor.

Pakistan will need another IMF programme after completion of the ongoing programme to survive giving the ability to the lender to impose conditions that will help the poor come out of the elite stranglehold, he said. Mian Zahid Hussain said that IMF continuously monitor the economic and financial policies of member countries and helps them design and implement sound policies and the disastrous impact of Pakistan’s policies is an open secret that should be fixed without delay.

Talking to the business community, the veteran business leader said that IMF typically forces member countries to boost revenues, manage public finances and monetary policy, regulate the financial system, and develop statistical systems but it should also consider providing some comfort to the masses.

He noted that a distinct politico-economic crisis has been brewing for almost decades in Pakistan and everyone in the country is worried about the impending collapse of the economy. So far no political implosion or mass unrest has occurred in Pakistan but increasing economic and political instability has given birth to discussions of a worst-case Sri Lanka-style collapse in Pakistan, he said.

Mian Zahid Hussain said that elite capture of the state and its machinery has resulted in sub-optimal policies for millions over decades but recent changes in the geopolitical system and growing inequality have made it difficult for policymakers to keep bribing the elite.

The business leader said that ventilator-style external support has so far prevented mass unrest on the scale of Colombo in Pakistan but this faux normality must not be taken for granted anymore. Addressing elite capture remains the most difficult but most necessary issue to addressing the structural causes of further unrest for which the answer is to reform.

The foremost tool and target of elite domination are the state’s extractive systems, which have been configured by elites over decades and are crucial in shaping policy outputs, they can also exploit the state apparatus for extractive gain. Pakistan’s power and governance mandate lie not with the people but with the elite collectively working to protect political power, which they then exercise for a mutually beneficial exchange and only IMF has the ability to break this nexus to provide relief to the masses.

For more information, contact:
President,
Pakistan Businessmen and Intellectuals Forum (PBIF)
Tel: +92-343-2226888
Tel: +92-300-8233364
Email: ceo@kenlubes.net

The post Negative policies have a disastrous impact on masses: Mian Zahid Hussain appeared first on Business News Pakistan.

Islamabad, February 22, 2023 (PPI-OT):The President of Kazakhstan Kassym-Jomart Tokayev will visit Pakistan this year, which will start a new chapter of trade and economic relations between the two countries. This was said by H.E. Yerzhan Kistafin, Ambassador of Kazakhstan while addressing the business community during his visit to Islamabad Chamber of Commerce and Industry (ICCI).

The envoy said that the President of Kazakhstan is visiting Pakistan after 20 years, which will be a historic visit as 20 MoUs would be signed during his visit to further strengthen the bilateral cooperation in multiple fields between Kazakhstan and Pakistan. He said that Kazakhstan is launching direct flights between Almaty and Lahore from April and Almaty and Karachi from May this year that would help promote B2B and P2P relations. He invited the ICCI delegation to visit Kazakhstan to join the launch of direct flights. He appreciated the role of Zafar Bakhtawari, former President ICCI for first-ever direct flights between the two countries. He said a delegation of businesswomen of Pakistan would also visit Kazakhstan to explore business cooperation with Kazakh counterparts.

He said that Kazakhstan intends to sign a transit trade agreement and agreement between the banking sectors of both countries that would provide a legal framework to the business communities of both sides for bilateral trade promotion. He said that Kazakhstan provides Pakistan easy access to Eurasian and Central Asian markets and Pakistan should take advantage of this potential. He said that a number of delegations from both sides would exchange visits this year that would take the bilateral relations of both countries to the next level.

Speaking on the occasion, Ahsan Zafar Bakhtawari, President, Islamabad Chamber of Commerce and Industry (ICCI) offered that ICCI would like to host a dinner reception in honour of the President of Kazakhstan during his visit to Pakistan. He said that both countries should focus on improving trade ties as their current bilateral trade is quite low. He welcomed the launch of direct flights and assured that the ICCI delegation would visit Kazakhstan to join its inaugural ceremony. He said that direct flights between Islamabad and Astana should also be started soon to connect the capital cities of both countries.

He said that Pakistani ports provide the shortest route to land-locked Kazakhstan to the Arabia Sea and emphasized that both countries should also establish land and railways links to enhance business relations. He said that both countries can cooperate in many fields including construction, agriculture, energy, textiles, pharmaceuticals, tourism, engineering equipment, machinery, banking and finance for mutual benefits. He invited the investors of Kazakhstan to explore JVs and investment in CPEC and in other sectors of Pakistan’s economy and assured that ICCI would cooperate in connecting them with partners in Pakistan.

Faad Waheed, Senior Vice President ICCI said that Pakistan and Kazakhstan are gateways for each other to get easy access to their respective regional markets and they should develop close cooperation to take advantage of this potential. Zafar Bakhtawari, former President ICCI termed the launch of direct flights a historic development between Pakistan and Kazakhstan. He said that Kazakhstan is an emerging power in Central Asia and Pakistan would like to develop close cooperation with it for improving trade and economic ties.

For more information, contact:
Islamabad Chamber of Commerce and Industry (ICCI)
Chamber House, Aiwan-e-Sanat-o-Tijarat Road,
Mauve Area, G-8/1, Islamabad, Pakistan
Tel: +92-51-2250526, 2253145, 8432676
Fax: +92-51-2252950
Email: icci@brain.net.pk, info@icci.com.pk
Website: www.icci.com.pk

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