FPCCI – Page 8 – PPI News Agency

August 12, 2022

Regional Trade Deficit with 9 Countries Widened in FY22

Karachi, August 12, 2022 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has noted with profound concerns that Pakistan’s regional trade deficit has further widened as Pakistan’s imports from 9 regional countries have increased by 28.84 percent; whereas, exports to the same have increased only by 16.97 percent.

President FPCCI explained that these nine countries include all geographically contiguous or countries in sub-regional periphery and these countries include China, Afghanistan, Iran, Bangladesh, Sri Lanka, India, Nepal, Bhutan and the Maldives.

Mr. Irfan Iqbal Sheikh said that our imports with the regional countries clocked at $17.814 billion for the period of July 2021 to June 2022 as compared to $13.826 in FY21; which has put additional burden on rupee value and foreign exchange reserves.

FPCCI Chief maintained that it escalates FPCCI’s longstanding trepidations that despite the fact that the regional trade is the key to sustainably accelerating country’s exports and realizing its true export potential, the government is still not ready to think out-of-the-box to offer a facilitative and incentivizing regional export support program. There are regional blocs and countries in the world who are having 70 – 80 percent of their total trade with the regional and sub-regional countries, he added.

Mr. Irfan Iqbal Sheik has called for an enhanced focus on intra-regional trade through the platforms of economic cooperation organization (ECO); which has ten countries and developing eight(D-8); which has eight countries.

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
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Email: info@fpcci.org.pk
Website: http://fpcci.org.pk/

August 4, 2022

Commemorate 14th August with Austerity and Divert Funds to Flood Relief: Irfan Iqbal Sheikh

Karachi, August 04, 2022 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has demanded that the government should commemorate the Independence Day this year with austerity; and, divert the funds toward the flood relief operations and rehabilitation of the affectees. He noted with profound concern that more than 500 people have died in Balochistan alone; thousands are injured and lakhs are displaced.

FPCCI President has demanded that the government should also provide interim relief to the affected businesses all over the country to resume their operations and keep providing employment opportunities as usual. The relief measures may include waiver of utility bills; relaxation in taxes and restructuring of business loans.

Mr. Irfan Iqbal Sheikh emphasized that, in times of financial crunch, the government’s best bet is to save funds from austere measures and redirect them to rescue operations and food and medical supplies. He also urged the business community of the country to help their brethren in need and misery.

FPCCI Chief maintained that national disaster management authority (NDMA) and provincial disaster management authority (PDMA) Balochistan should be better equipped to deal with natural disasters in particular as, due to climate change, we should be prepared to face climatic catastrophes on a larger scale.

Mr. Irfan Iqbal Sheikh has particularly pointed out, from a managerial perspective, that the response-time is the key to minimizing the loss of life and property; and, that is the area where we lack as a nation. Mr. Suleman Chawla, Senior Vice President FPCCI, has proposed that the political parties should unite on a charter of socio-economic upliftment of the people for a change; rather than fighting over political matters all the time.

August 4, 2022

Governor SBP to set up Joint Interaction Committee with FPCCI

Karachi, August 04, 2022 (PPI-OT):Dr. Murtaza Syed, Governor (A) State Bank of Pakistan (SBP) has announced the formation of a committee and appointment of an SBP liaison officer for close coordination with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and timely redressal of grievances of business committee. He made this announcement during his visit to the FPCCI on the invitation of their management.

The senior management of the SBP led by Governor (A) Dr. Murtaza Syed and comprising, among others, Deputy Governors Dr. Inayat Hussain and Ms. Sima Kamil visited the FPCCI to discuss current economic challenges and the measures being taken by the Government and SBP. The Governor (A) appreciated business community for their endurance in facing the challenges posed by both international and domestic events and ensured that SBP will provide them its full support by addressing their concerns as much as possible.

The Governor (A) in his address apprised the audience that staff-level IMF agreement is already in place and the board-level approval is expected in the third week of August as their board will meet after their vacations in the first-half of August are over. He added that SBP believes that rupee is undervalued at the moment and dollar has overshot in the forex market due to several reasons; however, he hoped that it will come down to its real value in 2 – 3 months.

He invited the business community to sit together with the SBP for a constructive consultative process and give suggestions on prevailing economic situation, foreign exchange and other related issues. Dr. Syed also assured the participants to look into technical requirement of prior approvals required by the commercial banks from SBP on the clearance of financial documents of the consignments with the H.S. Codes starting with 84 and 85 as these restrictions were affecting the import of tractor parts and other agricultural machinery as well.

President FPCCI Mr. Irfan Iqbal Sheikh in his inaugural remarks welcomed Dr. Syed and the senior management of the central bank for their visit to the FPCCI. Shedding light on current business scenario from FPCCI perspective, he requested the Governor (A) to use policy tools available at the central bank’s disposal to check the speculative dollar trading over the past few weeks. He observed that importers, manufacturers and industries were at the receiving end due to speculative nature and unavailability of dollars, shortage of industrial raw materials and the resultant disruptions in the production processes. Mr. Irfan maintained that over the past several weeks the commercial banks have been offering LCs to importers at the rates higher than inter-bank rates and requested the SBP to play its role for course correction.

A senior SBP official highlighted the support extended to the businesses in general and to the exporters in particular. SBP enhanced short term Export Refinance limits from Rs432 billion to Rs857 billion in just last four years reflecting an increase of almost 100%. Likewise, outstanding stock of SBP’s long term fixed rate financing for the exporters (LTFF) has also witnessed an increase from Rs209 billion to Rs329 billion in last three years reflecting 57% growth.

The Federation acknowledged that Temporary Economic Refinance Facility (TERF) massively helped in stimulating investment and boosting economy in the backdrop of COVID-19. It will not be out of context to mention that most of the business entities availed TERF at rates far below than the maximum cap of 5%. The overwhelming success of TERF indicated that it was successful in filling the gap for long term investment in the country. An amount of Rs436 billion had been approved under this facility for 628 businesses.

The FPCCI members raised certain questions which were comprehensively answered by the senior SBP management during the meeting and ensured the FPCCI members that the senior management of the central bank was always available to listen to their issues and resolve them on priority. On a question regarding expiry of SBP’s Refinance Facility for Renewable Energy, the Federation was informed that the scheme has been extended till June 2024. In the end, the President FPCCI submitted some suggestions for consideration of the SBP. The Governor (A) assured to look into the merits of these suggestions and take a decision soon.

August 2, 2022

4.5% Intra D-8 Trade is insufficient; PTA needs implementation: Irfan Iqbal Sheikh

Karachi, August 02, 2022 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has expressed his astonishment that the potentially potent economic and trade bloc of Developing Eight (D-8) has only achieved 4.5 percent regional or intra D-8 trade so far; despite being formed 25 years back and having a D-8 Preferential Trade agreement (D-8 PTA) in place.

Mr. Irfan Iqbal Sheikh has stressed the need to implement the D-8 PTA at the earliest and in its true spirit; as regional trade will bring prosperity and economic cooperation in the entire region. He added that regional economic blocs have up to 70 – 75 percent of their total trade intra-regionally; and, we are still stuck at a meager 4.5 percent. Mr. Irfan Iqbal Sheikh has apprised that D-8 includes seven other very important countries for Pakistan economically for trade, investment and joint ventures; i.e. Bangladesh, Indonesia, Egypt, Iran, Malaysia, Nigeria and Turkiye.

FPCCI President noted that the D-8 bloc represents more than 5 percent of the global GDP; which makes the alliance a significant one for the D-8 countries in particular and the entire region in general. He explained that only if we can capture the D-8 market in value-added textiles; IT and ITeS services; sports goods; rice, fruits and vegetables; surgical equipment and construction materials, Pakistan can enhance its exports by $5 – 10 billion within 2 – 3 years.

FPCCI Chief said that the latest high-profile assembly of the bloc, i.e. D-8 Business Forum and Expo 2022, held in Dhaka Bangladesh; and, has seen the participation of several foreign, commerce and investment ministers from D-8 countries. Specifically, presidents of various federal and apex chambers of the D-8 countries also attended the business forum and expo; along with prominent business leaders of their respective countries, he added.

Mr. Irfan Iqbal Sheikh has informed the business, industry and trade community of Pakistan that a decision to fully operationalize the D-8 PTA by the end of October has been taken; with the objective of growing the trade within the bloc to $500 billion by the year 2030. Mr. Irfan Iqbal sheikh has highlighted that, in the last 25 years, D-8 countries have increased their intra D-8 trade volume from approximately $40 billion to $140 billion and has pinned his hopes in the alliance to achieve the target of $500 billion trade by 2030.

July 28, 2022

Playing with the economy for power very depressing

Karachi, July 28, 2022 (PPI-OT):Former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Muhammad Ali Sheikh on Thursday said playing with the country’s economy for power is very damaging. He said that national assets should not be sold in haste to raise funds and fulfil the demand of international lender. Every government had envisioned short-term plans to suffice their own political agenda and compromised national economic interests resulting in a default-like situation, he said.

Although the IMF has agreed to revive a bailout package of US 6.0 billion, it will provide temporary relief to cash-strapped Pakistan which is on the brink of a payment crisis, he added. Muhammad Ali Sheikh said that an IMF loan is needed in urgent situations but it is considered a solution to the economic challenges in Pakistan which is wrong.

Presently, inflation in Pakistan is the highest in the region after defaulted Sri Lanka which has made life difficult for the man on the street while exchange rate erosion is threatening the entire economic system, he observed. The rise of the dollar has added almost Rs7000 billion to the debt and liabilities but politicians seem unconcerned at this critical juncture, he lamented.

He urged the Government to adopt an apolitical approach and revisit policies based on solid economic grounds that could help attain sustainable development rather than short-term measures to safeguard the political agenda. The business leader expressed apprehensions about the harsh conditions imposed by the IMF, which compelled the Government to revise energy tariffs, introduce super tax and make other tough decisions, which would consequently slow down economic growth.

Muhammad Ali Sheikh said that the government may withdraw rebates and subsidies and could review the fixed energy cost for export-oriented industries under the IMF conditions, which would not only make export products uncompetitive in the international market but also negatively affect the export targets.

Withdrawals of rebates and subsidies would save almost a billion dollars but it would hit industrial and agricultural production, jobs and revenue, therefore, it will not be a wise decision. He further added that such initiatives would further widen the trade deficit, compelling the Government to borrow more from international financial institutes. The Government should boost industry-led growth based on science and technology. If the subsidies and rebates for the Greenfield Industry are withdrawn and the tax on the IT industry continues, there would be scarce chances for achieving the export target, he warned.

July 27, 2022

Apolitical economic policies required to avoid borrowing

Karachi, July 27, 2022 (PPI-OT):Former Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Muhammad Ali Sheikh on Wednesday said the IMF bailout package will bring economic stability to Pakistan by mitigating the current financial crisis.

Every government had envisioned short-term plans to suffice their own political agenda and compromised national economic interests resulting in a default-like situation, he said. Although the IMF has agreed to revive a bailout package of US 6.0 billion, it will provide temporary relief to cash-strapped Pakistan which is on the brink of a payment crisis, he added.

In an interaction with the business community, Muhammad Ali Sheikh said that an IMF loan is needed in urgent situations but it is considered a solution to the economic challenges in Pakistan which is wrong. Presently, inflation in Pakistan is the highest in the region after defaulted Sri Lanka which has made life difficult for the man on the street while exchange rate erosion is threatening the entire economic system, he observed.

The rise of the dollar has added almost Rs7000 billion to the debt and liabilities but politicians seem unconcerned at this critical juncture, he lamented. He urged the Government to adopt an apolitical approach and revisit policies based on solid economic grounds that could help attain sustainable development rather than short-term measures to safeguard the political agenda.

The business leader expressed apprehensions about the harsh conditions imposed by the IMF, which compelled the Government to revise energy tariffs, introduce super tax and make other tough decisions, which would consequently slow down economic growth.

The Government should boost industry-led growth based on science and technology. If the subsidies and rebates for the Greenfield Industry are withdrawn and the tax on the IT industry continues, there would be scarce chances for achieving the export target, he warned.

July 6, 2022

9 Districts to Benefit if Sukkur Airport Gets International Flights: Irfan Iqbal Sheikh

Karachi, July 06, 2022 (PPI-OT):Mr. Irfan Iqbal Sheikh, President FPCCI, has demanded that the federal government should decisively proceed towards enabling Sukkur airport for international flights; which happens to be a longstanding demand of the business community of the Sindh province.

Mr. Irfan Iqbal Sheikh has apprised that Sukkur has geographical contiguity with eight big or small districts of Sindh with at a distance of merely of 30 – 45 minutes; and, Sukkur has all the potential to be an important spot for promoting business, industrial and trade activities. Upgradation of Sukkur airport will result in economic upliftment of the entire province, he added.

Mr. Irfan Iqbal Sheikh said that Sukkur is located right after Khairpur and it has Khairpur Special Economic Zone (KSEZ); and, KSEZ would also require Sukkur airport to have direct international flights to attract international investors. He added that when the KSEZ starts its operations and finds itself without an international airport in close proximity, it will badly hamper the prospects and potential of the SEZ.

FPCCI Chief has asked for the attention of Khawaja Saad Rafique, federal minster for aviation, to instruct the officials in civil aviation authority (CAA) to prepare the feasibility and come up with a practical timeframe to transform Sukkur airport into an international airport. Mr. Irfan Iqbal Sheikh has appreciated aviation minister’s directives to CAA to design a better and efficient flight schedule to facilitate the domestic flights to Sukkur airport to benefit the substantive business community in Sukkur and eight adjacent districts collectively.