Gross premium in Pakistan less than 0.9 percent of GDP: Dr Murtaza Mughal

Islamabad, October 22, 2020 (PPI-OT):Federal Insurance Ombudsman Dr. Muhammad Khawar Jameel has said that insurance is a very import sector which provides risk coverage masses and businesses. Despite its importance the insurance penetration in Pakistan is dismally low due to lack of awareness while less than one percent of consumers take the pain to study the insurance policy which result in disputes.

Speaking at a seminar as the chief guest which was organised by Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal, he said that he is striving hard to improve the image of the sector amongst the general public and especially in the business circles.

He said that the Federal Insurance Ombudsman is providing speedy and free of cost justice to the policyholders and that now mediation is preferred over litigation which has proved very fruitful as not a single appeal has been filed against our decisions over the last one year. Dr. Muhammad Khawar Jameel noted that insurance has remained a neglected sector in the past but now the government is paying full attention to its development and an awareness campaign is underway.

He said that insurance companies should realise the latest trends in the market and adjust accordingly while improving their products and services. The official noted that complaints against bank assurance are increasing which indicate room for improvement in this sector.

Speaking at the occasion, Dr. Murtaza Mughal said that there are black sheep in the insurance sector which are defaming it and impeding growth. Delaying tactics by insurance companies in processing claims is denting the confidence of masses, he said, adding that majority opt for insurance when it is a legal requirement.

He said that insurance coverage in Pakistan is less than one percent and the total premium is just 0.9 percent of the GDP against the regional average of 2.2 percent while the global average is hovering at 6.6 percent of the GDP. This sector can only prosper if the process of product designing, sales as well as the claim process is made transparent and the issues of policyholders are addressed in a proper way.

For more information, contact:
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Pakistan Economy Watch (PEW)
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Govt LNG decision in the national interest

Islamabad, October 19, 2020 (PPI-OT):Chairman of Pakistan Economy Watch Brig. (retd) Aslam Khan on Saturday lauded the move of the government to promote the use of LNG in vehicles in place of CNG.

As per the plan, conversion of CNG stations to RLNG is in progress and the CNG stations will not get natural gas in future and they will use imported LNG which will bring an end to the scarcity of gas for vehicles during the winter, he said.

He said that the move of the government will reduce the oil import bill by almost 20 percent, reduce environmental pollution and fares for the masses.

Aslam Khan said that the imported LNG will be around 20 to 25 percent cheaper than petrol which will provide relief to millions of people linked to the transport sector and commuters.

This will also help the government to utilise the idle capacity of LNG terminals which is resulting in heavy losses. This will bring down the terminal charges on a unit basis while the private sector will start building new terminals by investing billions.

A sizable volume of local gas will be saved through this initiative which could be diverted to industrial sector reducing complaints and triggering production and employment.

He noted that RLNG usage should be encouraged throughout the year and the natural gas could be used for more efficient uses in the industrial and power sectors.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

Refund system should be handed over to SBP

Islamabad, October 12, 2020 (PPI-OT): FBR seems to be more interested in collecting refunds than taxes which is damaging the fragile economy, an FPCCI official said Saturday. The refund system should be automated and its responsibility should rest with the central bank to reduce complaints and corruption and improve the economic situation, said Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal.

He said that the government is trying hard to inject new blood in the economy and restore the confidence of the business community but the tax mechanism is working against it. Unrealistic tax targets have compelled the FBR to strangulate the business activities through highhandedness to show performance, he added.

Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch said that FBR continues to issue SROs which violates the government’s intention to spur growth. He said that recently SRO 889 has been issued for surveillance of factories which is being opposed by the industrialists as it will trigger harassment, corruption and litigation.

Similarly, through two SROs, banks have been directed to report anyone withdrawing one million rupees or more and depositing ten million rupees or more while real estate agents have been directed to report all the sales and purchases to FBR. These SROs will damage the realty sector, discourage investment and may reverse the gains made through the construction package, amnesty scheme and other incentives offered by the government to spur growth.

He said that all over the world the real estate market is kept insulated from fear, raids, unnecessary audits but here its different which is one of the reasons Pakistanis ignore the local market and invest in the realty sector of other countries.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

Masses cannot endure more burden: Dr. Mughal

Islamabad, October 06, 2020 (PPI-OT): A mini-budget is feared following the failure of the FBR measures to increase revenue on the behest of IMF, an FPCCI official said Tuesday. The masses are business community is worried about the future as the FBR move to raise Rs637.4 billion through Finance Act 2019.20 have backfired, said Convener FPCCI Central Standing Committee on Insurance said Dr. Murtaza Mughal.

He said that tax-to GDP ration has dropped to 9.6 percent which was between 11.4 and 12.6 percent during the past five years which is a major blow to revenue collection administration. He said that inflation is a positive sign if it is due to demand but inflation in Pakistan is due to repeated hike in power tariff, mafia, and absence of administrative control.

Dr. Murtaza Mughal who is also President of the Pakistan Economy Watch said that the central bank has also failed to contain inflation and it is now preparing for a rate hike which will hit masses, production and exports and add to poverty. The increasing poverty has forced poor to compromise on necessities and many have taken their kids out of school so that they can earn something to keep families afloat.

Masses have not seen any relief while the actions against wheat, sugar, pharma and other mafia has resulted in price hike raising many questions. He noted that drastic increase in the power tariff to please IMF will damage the masses and economy beyond repair as the unrealistic tax targets of IMF has already impaired economy.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

Licences of twenty-six trade associations cancelled

Islamabad, July 09, 2018 (PPI-OT): The Pakistan Economy Watch (PEW) on Monday said that Directorate General Trade Organisations (DGTO) has cancelled licences of twenty-six trade associations including nine chambers of commerce sparking widespread criticism. Licences of three chambers of commerce representing women entrepreneurs have also been cancelled igniting criticism among concerned circles, it said.

A group of business leaders called on Dr. Murtaza Mughal, President of PEW and informed him that the office of DGTO is discouraging the business community. They are being insulted for small technical faults in the papers which is adding to the uncertainty. The business community alleged that the DGTO office is full of remnants of a former government which are defaming the present government through such negative tactics.

The trade associations that have been declared illegal include Rawalpindi Women Chamber, Attock Women Chamber, Nowshera Women Chamber, Charcadda Chamber of Commerce and Industry, Benazirabad Chamber, Hunza Chamber, Qila Saifullah Chamber, Moosa Khail Chamber, and Nigar Chamber of Commerce and Industry, they informed.

They said that the other trade association that were declared illegal include Pakistan Computer Association, Chemists and Druggists Association, Travel Agents Association, All Pakistan Oil Mills Association, Small Hajj Organisers, Tractor Dealers, Aluminium Manufacturers, Scrap Importers, Copper Importers, Plastic Scrap Importers, Association of Transporters, Glass Manufacturers, Ghee Exporters, Custom Agents, Heater Importers, Health Care and Importers of Gen Stones.

At the occasion, Dr Mughal said that the country is passing through difficult times and confidence of the business community is imperative to tackle challenges, therefore, they should be facilitated. The timing of the move will not benefit the government of the business community in any way, he said.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

CPEC to help the country become self-reliant

Islamabad, June 20, 2018 (PPI-OT): The Pakistan Economy Watch (PEW) on Wednesday said CPEC will make the bumpy road to country’s self-reliance smooth. The journey will begin from self-reliance in the field of energy which will soon include many other sectors including local and regional trade, it said. The project will also boost Pakistan’s production, revenue, defense capability, internal security, political strength, international image and sustainable development, said Dr. Murtaza Mughal, President PEW.

He said that the initiative will put Pakistan on the path of progress which is not acceptable to some countries including USA and India as it will damage their dominant position in the region. China has remained a very close ally of Pakistan since decades and now economic interests have brought both the nations together which will help Pakistan resolve many problems, he added.

Poverty is rising in Pakistan which has a positive relation with environmental degradation and climate change. The poor try to consume whatever is available for their survival, so natural resources become the first victim but the CPEC has the potential to change the situation.

The creation of new economic centers across the country under CPEC will discourage migration of rural people to the cities ensuring overall development and help resolve the issue of poverty and climate change. Murtaza Mughal said that CPEC is a ray of hope for the people of Pakistan but some elements continue to criticise CPEC on different baseless grounds which is a result of lack of information.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com

Unabated oilseed imports hitting foreign exchange reserves

Islamabad, May 10, 2018 (PPI-OT): The Pakistan Economy Watch (PEW) on Thursday said government policies have reduced the area under cultivation of oilseeds which is being counterbalanced through enhanced imports draining forex reserves. The policy designed to benefit few influential individuals has reduced the interests of farmers in cultivation of oilseed, it said. Policy to please the nobility at the cost of exchequer and masses continue to damage the agricultural sector, said Dr. Murtaza Mughal, President PEW.

He said that the import of oil seed has increased from 7.5 lakh tonnes to 31 lakh tonnes over the last five years because it suits an influential lobby. On the other hand, the unabated imports has resulted reduced oilseed production by 2.5 lakh tonnes in the last few years. Dr. Murtaza Mughal said that the government has increased duty on import of soybean oil by 32.6 percent in the budget which has increased its price.

The decision will encourage the import of oilseed to five million tonnes in the next twelve months hitting exchequer, masses, and farmers. The government will have to bear the loss of around twenty billion rupees in one year on account of reduced duties and taxes on import of oilseed while the masses will also pay an additional amount of twenty billion for cooking oil.

For more information, contact:
President
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671
Email: president@pakistaneconomywatch.com
Web: www.pakistaneconomywatch.com