Chambers of Commerce – Page 7

June 13, 2018

Continued devaluation a recipe for disaster

Islamabad, June 13, 2018 (PPI-OT): Islamabad Chamber of Small Traders on Wednesday said rupee has been eroded by thirteen percent during the last six months pushing tens of millions of people below the poverty line. However, targets like a substantial increase in exports and reduction in imports cannot be achieved while continued erosion in the exchange rate has exposed the vulnerability of the economy, it said. Those who claimed to make the country an Asian Tiger borrowed trillions in the garb of development and now some economic managers consider devaluation an alternative to the reforms, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

Masses continue to pay for the inefficiency and greed of the economic managers while policy to keep masses and the business community in the dark about important economic matters is fanning uncertainty. Shahid Rasheed Butt said that erosion in the exchange rate will not reduce imports and increase exports significantly but it will slow down the economy and hit GDP. The central bank would increase interest rates which will add to the miseries of the business community.

He said that the former government continued to claim economic turnaround which was largely cosmetic while the IMF, World Bank and dozens of other international institutions lauded the economic policies of PML-N which proved wrong hitting their credibility. Pakistan can never experience economic stability as long as it obeys the dictates of western institutions, he said. The business leader said that the caretaker setup should take needed steps without delay as leaving critical matters to the next government may prove harmful for the country.

For more information, contact:
Islamabad Chamber of Small Traders and Small Industry (ICSTSI)
24-D, 3rd Floor, Rashid Plaza Blue Area, Jinnah Avenue, Islamabad, Pakistan
Phone: +92-51-2801045
Email: icstsiofficial@gmail.com, info@icstsi.com.pk
Website: http://icstsi.com.pk/

June 10, 2018

Pakistan and Japan can push trade to new heights

Karachi, June 10, 2018 (PPI-OT): The Ambassador of Japan to Pakistan Takashi Kurai has said that vast potential of economic cooperation exists between the two countries. Both countries can cooperate in the vendor industry, agriculture while the Japanese companies can also work in different projects under the CPEC, he said. He said this while speaking at an Iftar dinner held in honour of the President FPCCI Ghazanfar Bilour.

Takashi Kurai said that different Japanese companies are also considering investment in Karachi. The diplomat noted that JVs in the vendor industry will benefit Pakistan and the auto sector of Japan while cooperation in the field of agriculture and high-tech industry will be beneficial. The Ambassador said that Pakistan should improve the investment environment and expressed his intention to make the best efforts to introduce Pakistani goods and services in Japan.

He invited FPCCI to take part in Osaka, Kansai Expo 2025 being held under the theme of “Designing Future Society for Our Lives”. Speaking at the occasion, President FPCCI Ghazanfar Bilour said that Pakistan and Japan enjoy cordial relations and they have similar views on the majority of the international issues.

Both nations must cooperate to boost SME sector which will improve production, increase jobs and boost revenue, he said. He noted that Japan has always helped Pakistan to overcome challenges and she considers Islamabad an important ally in the region.

Vice Presidents of the FPCCI Atif Ikram Sheikh, Karim Aziz Malik and Tariq Haleem, former president of the Apex chamber Zubair Ahmed Malik, Chairman Coordination FPCCI Malik Sohail, Adeel Rauf, Yasir Sheikh, Ahmed Aziz Bilour and Amna Malik were also present on the occasion. They discussed issues of Pakistan’s economy, trade and investment between Pakistan and Japan, measures to strengthen bilateral economic relations and to promote investment and export, and economic cooperation.

For more information, contact:
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Shahra-e-Firdousi, Karachi-75600, Pakistan
Tel: +92-21-35873691, 93-94
Fax: +92-21-35874332
Email: info@fpcci.com.pk
URL: www.fpcci.com.pk

June 10, 2018

Drought like condition threatening Pakistan

Islamabad, June 10, 2018 (PPI-OT): Islamabad Chamber of Small Traders on Sunday said water crisis has developed into a drought like condition to become a serious threat to the economy. Dams are at dead level, there is almost no water in the rivers and the availability is hardly enough for human consumption, it said. There is no water for agriculture, industries and livestock which is unfolding a disaster, therefore, the government should take urgent steps, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt.

Majority of the population is dependent on agriculture while the water shortage has become a serious threat to Kharif crop which plays an important role in exports, he added. Shahid Rasheed Butt said that crops of sugarcane, cotton, and rice are under serious threat which will also hit the standard of living of tens of millions in the farming community.

He said that the signs of crisis like low rainfall and less snowfall appeared a few months ago but the politicians in the government and opposition remained busy in petty matters which has resulted in the crisis. Currently, the country’s entire water supplies are only enough to meet human consumption demand leaving crops, orchards and fodder without sufficient water, something that has never happened before in the history of the country.

Shortages are over 60 percent because of empty reservoirs and abnormally low river flows but we had the luxury to waste around 10.50 million acre-feet to the sea last Kharif crop, he noted. The business leader said that the country managed to save even one-third of the wasted water it would have been in much more comfortable position.

June 9, 2018

Former government borrowed $44 billion but failed to stabilise economy

Karachi, June 09, 2018 (PPI-OT): Chairman Coordination of FPCCI Malik Sohail Hussain on Saturday said PML-N government borrowed over 44 billion rupees during its tenure which is a record. Despite borrowing at such a massive scale standard of living of masses or economy could not be improved, he said. Now, the country is at the brink of bankruptcy as it was in 2013 when the PML-N came to power, he added.

Malik Sohail Hussain said that the former government continued to beat the drums of success but the forex reserves continue to fall necessitating another bailout package on harsh conditions. The former government increased debt by over fifty percent while it weakened the local currency by almost ten percent increasing debt and putting additional pressure on the masses, he said.

The business leader said that energy imports reached almost 60 percent of the exports but the government failed to end load shedding or settle circular debt which reached to new heights during its tenure. Mismanagement in LNG deal inflicted heavy losses on exchequer and paved way for gas sector circular debt for the first time in the history of the country.

The former PM and other government functionaries repeatedly claimed to have added over 11000 megawatts in the national grid but there is no place in the country which is immune from Load shedding in the sizzling heat of June, he observed. He said that the government failed to fulfill promises like tackling unemployment, poverty, corruption, and profiteering.

The PML-N also failed to introduce reforms in sectors like health, education, taxation, and provision of justice. Good governance, selling bleeding public sector entities, provincial harmony, reduction in debt, industrialization and developing agriculture remained a far cry.

The tax system could not be made friendly and nothing important could be achieved during the last five years set in the manifesto for the May 2013 election over the last five years’ rule, he said. Malik Sohail said that the loans acquired by the former rulers will not be paid by the politicians but our future generations.

June 7, 2018

First Meeting of FPCCI Standing Committee on Alternate Energy Development held

Karachi, June 07, 2018 (PPI-OT): First meeting of the FPCCI Standing Committee on Alternate Energy Development, Chaired by Vice President FPCCI, Mr. Zahid Saeed and Chairman of the Committee Mr. Fawad Jawed, was held on Monday 4th June, 2018 at the Federation House, Karachi. The members of this Committee are closely affiliated with the development of the renewable energy sector of Pakistan and therefore have first-hand knowledge of the state of affairs of RE Sector.

Through a presentation by experts, the Committee was informed that by the end of 2018, Pakistan will have only 1200MW of operational Wind Projects, while more than 2000MWs of projects are at various stages of development. It was informed that these were being stalled by the Ministry of Energy on one pretext or another for the past 2 years, in contradiction of the current CCI approved Renewable Energy Policy 2006. During discussion, it was found that most of these projects have competed all technical and financial milestones and are looking forward to achieve Financial Close, but were unable to do so due to obstacles being created by the MOE in negation to the Policy in vogue.

The Committee also discussed various benefits of having renewable energy in the energy mix of Pakistan; specially when, (i) as opposed to Oil, RLNG and Imported Coal RE projects have no fuel cost, leading to great saving in foreign exchange, which, under present circumstances should be our member on priority. (ii) Wind and Solar are environmentally friendly, which again is the need of the hour, as Pakistan in recent years is experiencing severe heat waves across the country. (iii) Cost of Wind and Solar technologies have seen rapid decline, making Wind and Solar one of the cheapest sources of energy in the world. On the other hand, Pakistan has relied heavily firstly on Imported Oil, and now on RLNG, which has rendered the cost of electricity unaffordable for the consumer.

The Committee concluded that unless cheaper forms of energy are brought in to the mix, Pakistan will continue to suffer the high cost of electricity, leading to collapse of exports and an in-competitive industry. The Committee further castigated the perception of LNG to be the only savour.

It was discussed that the tariff of LNG plants is cosmetically shown low in Tariff Determinations, whereas those tariffs have already increased by approximately 50% due to increase in price of this kind of fuel. That the impending decrease in the value of the Pak rupee would further increase the price of LNG, was another serious issue to contend with.

It was further discussed with concern that this increase has taken place even when the entire LNG capacity of Pakistan has not come into operations. Consequently, the Committee discussed to make recommendations for the MOE as to the way forward instead of being captive to LNG imports.

Furthermore, the Committee deliberated that the Wind tariff right now is lower than the current LNG tariff. Knowing that LNG tariff will keep increasing every day and Wind tariffs would remain the same, one could imagine the temporariness of LNG as a solution. It was seen that the upcoming economies will drive to put-up and operate new Wind power and keep the already installed LNG plants on idle as a backup. Even that will prove cheaper than continuously operating the existing and up-coming LNG fuelled plants.

The Committee also believes that unjustifiably high levels of commitments have been deliberately placed in the CPPAG’s power purchase agreements, so that purchase of LNG power should continue, no matter at what price of the fuel. The Committee was perturbed to see that over 550,000MW of Wind and 220,000MW of Solar power plants were currently in operation globally, where Pakistan clearly lags behind. In view of these figures, the Committee resolved to recommend to the GoP for focus of all efforts to induct RE’s on the needed level and on a fast pace.

The Committee in this regards also took-up issue with the wrong perception of the MOE that the Power Sector was leading towards a so-called capacity trap and did not need to contract more power – specially, RE’s. This perception was considered to be propagated on the basis of non-professionalism and failure to ensure sustainability of the Power Sector during the operations of the last five years.

In the concluding remarks Mr. Zahid Saeed averred that FPCCI was very serious in supporting RE projects to facilitate environmentally friendly and cheaper forms of energy, which will support both business and residential consumers in the present economic and debilitating energy conditions in Pakistan.

June 2, 2018

Pakistan becoming the most water-stressed country in the world

Karachi, June 02, 2018 (PPI-OT): Chairman Coordination of the FPCCI Malik Sohail Hussain on Saturday said water has become an issue of life and death for Pakistan but it has yet to catch the attention of the politicians engaged in petty matters. Water availability has dropped from 9000 cubic feet to 900 cubic feet in the last seventy years which is set to transform Pakistan into a desert.

Pakistan is on its way to becoming the most water-stressed country in the world as a neighbouring country is destroying Pakistan through water terrorism but the government and opposition has no time to think about this critical issue, he added. Malik Sohail Hussain who has also served as SVP ICCI said that a reduction of fifty percent has been recorded in the annual snowfall which has resulted in water shortage of almost sixty percent that is a great threat to farming communities and the whole population.

The Kharif crop season has been started without enough water. Rice, sugarcane, cotton, and maize are some of the key crops of the season. Non-availability of water at such a critical time of sowing season is bound to impact food production. Higher temperatures increase the water demand for both agriculture and domestic consumption and can trigger a full-blown crisis, especially when it is not available.

Forty percent of people in the country would be without water in the next twenty years pawing way for civil war. The water scarcity can become a reason for the third world war resulting in massive losses, he warned. Despite the warnings, the general population thinks that authorities do not seem to take water insecurity seriously which is a crime.

June 1, 2018

PML-N Government failed to honour refund commitment: FPCCI

Karachi, June 01, 2018 (PPI-OT): The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday said the PML-N government failed to honour its commitment about releasing stuck-up refunds to the business community leaving them in a quandary. Refunds worth trillions of rupees are held by the government since years which are not being released despite repeated promises by the top government functionaries, said Ghazanfar Bilour, President of the FPCCI.

He said that slow processing of refunds has surfaced as a major issue confronting taxpayers of the country which is not acceptable, he said. FBR prefers to meet their tax collection targets to please the IMF instead of processing refunds of taxpayers that resulted in creating severe liquidity crunch for the businessmen compromising their ability to do business, he added.

He said that exporters are running from pillar to post for ensuring the release of funds against the Refund Payment Orders already issued them but it seems that government is not concerned about the plight of the business community. Ghazanfar Bilour said that the liquidity crunch is playing havoc with the viability of the industrial sector with the textile industry taking a major blow.

The textile exports have grown in double-digit after the announcement of this PM package but the commitments made under that package remained unmet discouraging the business community and putting the credibility of the government at stake. The negative attitude of the government has become a threat to the exports which are already insufficient to bridge the deficits, he warned. The business leader demanded a mechanism to ensure smooth clearance of refunds on a permanent basis to save the export sector from additional and unnecessary costs.