Karachi
The State Bank of Pakistan will remain closed for public dealings on July 3, 2017 (Monday) which will be observed as Bank Holiday.
All banks, Development Finance Institutions (DFIs) and Micro Finance Banks (MFBs) shall, therefore, remain closed for public dealings on the aforesaid date.
However, all employees of the banks / DFIs / MFBs will attend the office as usual.
The State Bank of Pakistan announced.
Karachi: The Chinese government has been requested to review its business visa policy by the Pakistan Soap Manufacturers Association (PSMA) and Karachi Chamber of Commerce & Industry President Abdullah Zaki.
The request stems from a complex process for obtaining visas to China which are rarely issued for more than three months. Zaki suggested granting multiple visas to the business community for a period of at least one year.
Acknowledging the close relationship between the business communities of the two countries, coupled with excellent trading ties, Zaki lamented the obstacles that Pakistani businessmen have to face when attempting to visit China for exploring trade and investment opportunities.
While commenting on the China-Pakistan Economic Corridor (CPEC), the PSMA chairman said that extensive avenues of economic cooperation and trade enhancement had been created due to the project.
To realize the full potential of these opportunities, Zaki stated that people to people contact and greater facilitation of businessmen needs to be assured by the two governments.
He laid special emphasis on Chinese authorities paving way for closer interaction and cooperation between the business communities of Pakistan and China by easing the visa issuance process and extending visa duration to one year.
Keeping in view these strong ties between the two countries, Zaki hoped that the Chinese government will pay attention to this request from the collective business community of Pakistan and accordingly issue directives to its Consulates in Pakistan for timely issuance of visas to Pakistani businessmen and industrialists which should be valid for a longer duration of at least one year.
Karachi: The State Bank of Pakistan (SBP) has revised the ‘Guidelines on Outsourcing Arrangements’ with the objective of enabling financial institutions (FIs) including commercial banks, microfinance banks and development finance institutions (DFIs) to effectively manage the potential risks associated with outsourcing arrangements.
The revised instructions are termed “Framework for Risk Management in Outsourcing Arrangements by Financial Institutions”.
The SBP earlier introduced the Guidelines on Outsourcing Arrangements for banks/DFIs in 2007. The guidelines were issued in view of the increasing use of outsourcing of services by banks/DFIs and potential impact of associated risks and obligations to customers. The framework is based on international standards and best practices, which is aimed at enhancing the proactive environment in FIs on various aspects of outsourcing.
These include, but are not limited to, governance, risk management, outsourcing of foreign branches of banks, insourcing of services, group outsourcing, information technology outsourcing and collaboration/outsourcing arrangements by FIs with financial technologies (Fintechs).
Besides, the framework also encompasses the list of critical functions/activities that cannot be performed by employees of the third party service providers. All new outsourcing arrangements by FIs will be governed under this framework.
The FIs are required to ensure that their existing outsourcing arrangements are aligned with this framework latest by June 30, 2018.
KARACHI
Ending interest-based transactions, adopting the Islamic mode of economy, and restoring proper collection of Zakat and other taxes under it, would help in poverty alleviation in Pakistan, said ‘Voice Against Corruption’ President Ahsan Bari Advocate.
In a statement here Monday, he said if we manage to properly collect Zakar, Ushar and other taxes as per Islamic teachings, we can end poverty from the country and provide ample job opportunities for our young people.
He said the interest-based banking is the mother of all evils and we as an Islamic ideological state should ditch the interest-based economy for good.
He said people do not trust the government-run Zakat collection system; that is why people withdraw money from their bank accounts before the Zakat deduction deadline. He said we should introduce more transparency in collection and spending of Zakat to restore the confidence of public in government mechanisms.
He said the graph of corruption in Pakistan is on the rise, because we have not adopted anti-corrupt practices as a state policy. He demanded for introducing more transparency into the affairs of the government departments through a better use of information technology.
He said corrupt contractor system is the mother of corruption in Pakistan and appointment of retired employees and other favorites as consultants in government offices is nothing but a shameless act corruption. He said another form of corruption in government is to give huge fees of millions of rupees to some particular lawyers despite availability of law officers in the government law departments.
He said officers and even clerical staff of some corrupt government departments own properties of billions of rupees. They run expensive cars and their children are enrolled in very expensive local and foreign schools.
These employees and their families are treated in very expensive hospitals and they travel by air locally and aboard. He said if our investigative and anti-corruption agencies focus on property ownership, air travel record, costly school enrollment and hospital admission and selling and purchase of expensive cars, hundreds of very corrupt government officials could be easily exposed.
He said all forms and shapes of corruption should be dealt with strictly to make Pakistan a corruption-free society.
KARACHI
A high profile delegation comprising 28 business dignitaries from various sectors of Pakistan on the invitation of Prime Minister of Lebanon Saad Hariri visited Lebanon. The delegation was headed by Vice President FPCCI Irfan Sarwana.
During the visit, the delegation held various high level meetings with the government officials and representatives of business community of Lebanon.
During the meetings the leader of the Pakistani delegation, Irfan Ahmed Sarwana briefed the hosts that Pakistan is a business friendly country and offers good opportunities to foreign investors in many fields like agriculture, capital goods, sports, surgical instruments etc.
The Prime Minister of Lebanon mentioned that tourism industry is well developed in Lebanon and accounts for 10 per cent of the GDP. In addition to it the Prime Minister informed that the Lebanon offers bright prospects of Industrial, banking, agriculture and transport equipment sector.
The Pakistani delegation also had an exclusive meeting at the Ministry of Economy and Trade with Jacqueline Melhem during which various aspects of boosting trade ties between the two countries were reviewed and discussed including the exchange of trade delegation, organizing solo country trade exhibitions and cooperation in various sectors of mutual interest etc.
The delegation signed four MoUs with Chambers and Associations in Lebanon namely (i) The Chamber of Commerce Industry and Agriculture of Beirut and Mount Lebanon (CCIA-BML), (ii) The Chamber of Commerce, Industry & Agriculture of Tripoli & North Lebanon, (iii) The Association of Lebanon Business People in the World and, (iv) The Chamber of Commerce, Industry & Agriculture in Sidon and South Lebanon.
Sarwana while expressing the importance of free and preferential trade agreements stated that such institutional arrangements are imperative for the growth of trade and economy.
He further added that Pakistan’s export to OIC countries was about $ 1.6 billion and import was $5 billion having a significant imbalance of more than $3 billion, therefore he stressed that Pakistan should also focus on untapped and unconventional markets to improve the trade figures in favor of Pakistan. He shared that despite several challenges Pakistan’s economy is performing well and all indicators are in favor of Pakistan.
Pakistan Embassy in Beirut, Lebanon gave a grand reception to the Pakistani delegation which was also largely attended by the representatives of the Lebanese trade industry, Business dignitaries and Government officials of Lebanon.
Islamabad: The Islamabad Chamber of Commerce and Industry (ICCI) has shown concerns over the all-time high trade deficit that has reached $30 billion in the first 11 months of the current fiscal year, as it would cause serious external balance of payments problems and would create additional problems for the struggling economy.
Pakistan’s trade deficit was around $20 billion when the current government came into power in 2013, said ICCI President Khalid Iqbal Malik, adding that the business community was expecting the government to take measures to promote exports that would reduce the gap.
However, during the period 2013 to 2017, trade deficit has increased by almost 50%, which showed that the policies of the current government have failed to promote exports up to the real potential of the country.
He said that under the 3-year Strategic Trade Policy Framework (STPF), the government had set an annual export target of $35 billion by 2018, but in the 11 months of the current fiscal year, export have fallen to $18.54 billion from $19.14 billion during the same period of previous year. On the other hand, imports are on the rise, which should be a cause of concern for the policymakers.
He said exports were falling despite the government’s claims of providing round-the-clock power supply to the industry.
Although the government was providing Rs3 per unit concession in electricity tariff to export-oriented industries since 2016, all these concessions have failed to arrest the falling trends of exports.
He lamented that despite the announcement of prime minister’s Rs180 billion subsidy package for textile, clothing, sports, surgical, leather and carpet sectors, impact of this package on exports was yet to be seen.
“Pakistan is heavily depending on textiles industry for exports, while the share of textiles is on the decline in the global export market,” said Malik. The ICCI chief urged that the government should reconsider its export policy and make a new strategy to promote exports of engineering goods and value-added IT products that would significantly boost our exports and reduce trade deficit.
Listing the reason behind falling exports, Malik said the government failed to address the challenges faced by the export-oriented industries as no effective measures were taken in the budget 2017-18 for industrial progress, increase in exports, reduction in the cost of production and enhancing the competitiveness of Pakistani goods in the international market.
He stressed that it was high time that the government honour its commitments with exporters to turn around the dwindling exports and decrease the rising trade deficit.
KARACHI: The National Labour Council (NLC) and Pakistan Institute of Labour Education and Research (PILER) have expressed serious concern over grave violation of labour laws by the brand textile manufacturers, especially the local brands like Khaadi that do not provide safe working places and remove workers when they demand their due rights.
Khaadi had removed 32 workers before Ramzan and despite protests and NIRC instructions, Khaadi has not reinstated these workers.
In a statement here on Sunday, NLC and PILER leaders Karamat Ali, Latif Nizamani, Habibuddin Junaidi, Shafiq Ghauri, Saeed Baloch and others said these textile brand manufacturers often provide third-party employment to the workers and pay them wages, in many cases, less than the official minimum wages for unskilled workers that is fixed at Rs 15,000 per month.
The workers are not allowed to avail leaves and in the case of leave in emergencies, their wages are deducted for that period.
The workers complain that they work for more than 12 hours instead of 8 hours a day and no compensation is provided for their extra work. The owners demand more productions per worker when they receive additional orders. These textile manufacturing companies earn millions of rupees from their sale in local markets during Ramzan but avoid proper payments to their employees. Many of these textile manufactures also export their products.
The working conditions in these textile brands are unsafe as most of the companies often put locks on doors during the work hours on the pretext to avoid theft. Over 250 workers had lost lives in Ali
Over 250 workers were killed at Ali Enterprises, a garments manufacturing factory, in SITE Baldia in 2012 because the owners had locked all the exit points while workers were busy in doing their jobs inside the premises.
The provincial labour department, which is responsible for ensuring safe working conditions and health and safety of workers in the work places but the labour inspections system is inadequate as there is a small number of labour inspectors to cover all industries. This has encouraged the manufacturers to violate labour laws. The labour leaders said the employers and industries associations should take measures to ensure safe working conditions at the work places and provision of all rights to the workers.
The small traders of Karachi have warned to boycott payment of electricity bills if persisting load-shedding in the city is not stopped. A meeting of All Pakistan Organization of Small Traders and Cottage Industries (APSTCI), chaired by Karachi Chapter President Mehmood Hamid, expressed serious concern over prolonged load-shedding in the city market areas, saying that this has fully exposed the alleged incompetence of K-Electric. They said that continuous load-shedding has badly affected the economy of the city, adding that the small traders of Karachi would participate in an anti-KE protest on June 2. The meeting warned that the small traders would boycott paying electricity bills, as due to the electricity crisis, garment industry and tailor shops have been hit hard and it is not possible for them to meet Eid orders.
On the directives of Sindh Excise and Taxation and Narcotics Control Minister Mukesh Kumar Chawla, the department has launched a Geographical Information System (GIS) for property professional tax survey in the province. In the first phase, it has been started in Sukkur.
Addressing an awareness seminar in Sukkur as the chief guest, Excise and Taxation and Narcotics Control Secretary Abdul Haleem Shaikh said that the aim of launching the GIS for property professional tax survey was to provide better facilities to the people and it would eradicate corruption.
Through GIS, we would be able to measure exact longitude and latitude of Sukkur. He assured the tax payers that neither new tax had been enforced nor any change in rate and valuation table would be made.
He was sure that through GIS, the ownership of the property would be saved for good and no one would be able to temper it. While speaking on the occasion, Sindh Excise and Taxation and Narcotics Control Director General Shoaib Ahmed Siddiqui said that the minister had taken personal interest in introducing GIS in the province, and Sukkur was the first city and after successful completion of property and professional tax survey in Sukkur, it would extend gradually across the province.
He added, “120 yards/600 square feet residential property units had exemption and all the details of the properties will be uploaded on the geographic website.” He said that the department was working on scheme after which tax payers might pay online their dues and taxes using software and they can also lodge their complaints online as well.
Chawla has congratulated the E&T department on the successful launching of GIS in Sukkur and hoped that it would facilitate the people and computerisation of the system would greatly help in the reduction of corruption and increase the revenue for the government. Senior office-bearers of Sukkur chamber of commerce and industry also attended the seminar.
Islamabad Chamber of Small Traders on Sunday asked the government to promote edible oil sector to save import bill and empower farmers who are at the mercy of middlemen.
Self-sufficiency in the edible oil production can help the country save 2.5 billion dollars annually, which need some steps, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt in a statement.
Until 1960, Pakistan was self-reliant in edible oil production after which imports started due to the exploitation of farmers and lack of interest on the part of authorities, he added. Butt said that farmers of different oilseeds were at the mercy of middlemen which was the biggest reason behind reduced production and increasing imports.
The government should take steps to increase the size of land under cultivation, announce support price and incentives, introduce latest varieties of seed and give preference to the coastal belt of Sindh and Balochistan for cultivation.
He called for enhanced research and development, subsidy on inputs, interest-free loans, a gradual increase in duty on imports, employing better technology, improving the capacity of grinding mills and empowering concerned institutions. Butt said that primitive grinding process resulted in wastage of two lac tonnes of cotton seed while 30,000 tonnes could be extracted from rice bran which is yet to gain proper attention.
Pakistan’s per capita consumption stands at 12-13 litres, which is increasing by three per cent annually which will increase import bill. Focus on local production, establishing new edible oil refineries and better functioning of the oilseed extraction industry can help improve the situation, create a million jobs and improve forex reserves.
Sindh Governor Muhammad Zubair said that Islamic finance has been growing rapidly in not only Muslim countries but also in non-Muslim countries.
Addressing participants at the inauguration of the 6th Islamic Finance Expo and Conference organized by The Professionals Network (TPN) here on Thursday, Zubair stressed the need to convince people towards Shariah-complaint banking as more than 95 percent of people strongly believe that conventional banking is against Shariah rules.
The current 14% share of Islamic banking in the overall banking industry is not sufficient and needs to be enhanced, he said.
He stressed that for the development of Islamic banking in Sindh all stakeholders will have to work together. “Sindh lags far behind in terms of development,” said Zubair.
Speaking on the occasion, Meezan Bank CEO Irfan Siddiqui sought government’s attention towards development of Islamic banking at par with the conventional banking by introducing Shariah-based financial instruments.
Siddiqui also pinpointed problems of Islamic banking industry in Sindh where according to him “lending by Islamic banks was the most difficult task” due to safety and return reasons.
“Bankers are reluctant to extend loans in the province, whilst Punjab has made significant progress in the financial sector,” he added.
According to Siddiqui, Islamic banking is growing as ADRs of Islamic banks have gone up by 57% of the total banking industry and total share of Islamic banks’ has increased to 13%.
TPN CEO Mehmood Tareen said that the purpose of organising the expo was to promote Islamic banking and products in the country by introducing Shariah based products at a vibrant forum. “It is a platform where people gather to exchange their ideas about the Islamic financial industry in a rightful manner,” he noted.
Karachi Chamber of Commerce and Industry Banking and Insurance Sub-Committee Former Chairman Ateeq ur Rehman said that 82% of small and medium size enterprises are neglected and do not get financing from conventional banking sectors.
“Islamic financing has been offered to them and they feel more comfortable to get finances through this route,” he added.
Chinese Ambassador to Pakistan, Sun Weidong has said that increasing relations between Pakistan and China are not only mutually beneficial but it will affect the whole region in a positive way.
Bond of friendship between the two friendly countries will be cemented further by the passage of time, he said. Weidong was talking to President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail and Chairman Coordination Malik Sohail Hussain.
All stakeholders must recognise the importance of China-Pakistan Economic Corridor (CPEC) which will change the fate of Pakistan, he added. The ambassador said that the CPEC will boost the economic and social development of Pakistan and the region and many new business opportunities are coming up for all the related nations, he said.
He said that reservations expressed by the business community about CPEC and some other circles are speculative and time will tell the reality. Pakistan is not producing things that are needed in China which is a reason behind imbalance in trade, he informed.
He said that Pakistan can enhance exports to 35 billion dollars for which serious efforts are needed. The ambassador furthered that not a single Chinese company will be allowed to install used machinery in Pakistan as a transfer of technology will be a prerequisite.
The ambassador informed that settling energy crisis in Pakistan is our top priority and we will add eleven thousand megawatt of electricity in the national grid as soon as possible through highly efficient power plants. After overcoming energy crisis we will develop infrastructure and in the last leg initiate process of industrialisation, he informed.
Security of the economic zones must be ensured so that Chinese experts working in Pakistan feel safe, he said, adding that visa procedure is being improved for Pakistani businessmen and that local business community should participate in the expos and seminars in China to improve understanding and trade.
At the occasion Zubair Tufail lauded the Chinese cooperation aimed at development of Pakistan and claimed that China is more interested in development of Pakistan than trade.
He said that local business community need not to worry as CPEC will unleash a new era of development in Pakistan therefore ‘nothing’ should be allowed to slow the pace of this critical project.
Pakistan attaches great importance to its mutually beneficial trade and investment relations with the United States (US).
This was stated by Pakistan’s Ambassador to US Aizaz Ahmad Chaudhary, while talking to a delegation of Securities and Exchange Commission of Pakistan along with senior officers of US Department of Commerce in Washington DC on Monday.
He said the SECP is playing a vital role in introducing corporate and capital market reforms for the promotion of trade and investment in the country.
The SECP delegation is in the US to attend 27th Annual International Institute on Securities Market Growth and Development at the United States Securities and Exchange Commission.
Acting chairperson of US SEC, Michael Piwowar also lauded the recent developments with regard to its regulatory framework at the opening ceremony of the 27th Annual International Institute on Securities Market Growth and Development.
President of the Karachi Chamber of Commerce and Industry (KCCI) Shamim Ahmed Firpo, while referring to a recent meeting at Karachi Port Trust (KPT) to resolve the issue of Port Congestion Surcharge, said that its highly unfair on the part of KPT and a matter of grave concern for the business and industrial community that the Karachi chamber, which is the largest chamber and a major stakeholder, was totally ignored and not invited to attend the said crucial meeting despite the fact that KCCI has been constantly receiving dozens of complaints from traders each day, who always seek the chamber’s assistance whenever they face any such issue.
Nevertheless, President KCCI added that although the shipping lines agreed to withdraw the port congestion surcharge during the said meeting as there was no congestion at KPT and its terminals, but so far no relief has been provided to traders as shipping lines continue to charge port congestion surcharge of $150 and $300 per container.
In a statement issued, Shamim Firpo said that traders have been constantly complaining about the unjust port congestion surcharge by shipping lines despite the recent assurance to withdraw this surcharge as traffic flow remains normal. Shipping companies were charging $300 for a 40-foot container and $150 for a 20-foot container as port congestion surcharge, resulting in raising the cost of imported goods and intensifying the hardships for traders who were already under intense burden due to exorbitant duties/taxes and numerous other exorbitant charges by shipping lines, he added.
Shamim Firpo was of the view that it was highly unfair to penalise traders for inefficiencies at the ports as it is this inefficiency which causes delays in the clearance of containers, resulting in port congestion. But this was not the case as the KPT authorities have categorically rejected any kind of congestions by saying that plenty of space was available and they can even provide even more space if required.
He said that currently, Pakistan’s logistics were considered to be the poorest among the whole region and it was a matter of grave concern that the country stands below the global averages. “Pakistan’s 90 per cent international trade is routed through sea and Karachi seaports including Karachi Port Trust and Port Qasim Authority”, he informed, adding that however, the dwell time of container in Karachi is seven days, which is about three times more than that in developed countries, East Asia and Europe.
President KCCI urged the authorities in Islamabad to take strict notice of the exorbitant charges by shipping lines and take steps to speed up the container clearance procedures, besides urging the shipping lines to immediately stop levying the unjust port congestion surcharge.
Sindh Board of Investment (SBI) Chairperson Naheed Memon held dialogues with Chinese investors pertaining to value addition in agriculture sector, cold storage and investment opportunities in different sectors.
The 20-member Chinese delegation from Chinese province Hunan led by Hunan Chamber of Commerce and Industry Vice Chairman Wo Shugan called on the SBI chairperson. Representatives of chambers of commerce of different cities of the Hunan province and the Chairperson China Pakistan Business and Investment Promotion Council, Tang Jikai and other notables were also present.
Talking to the delegation, the SBI chairperson welcomed the Chinese investors in the province of Sindh and said the Sindh government with the cooperation of the investors will create more employment opportunities in Sindh. She said that excellent investment opportunities are available in value addition in agriculture, cold storage and other sectors in Sindh.
She said that the Sindh government was providing attractive incentives to the investors in packaging sector and also delivered a detailed presentation in this regard. The members of the Chinese delegation obtained details regarding available for opportunities for investors in Sindh. The Chinese investors also showed interest in agriculture, communication, pharmaceutical and chemical sectors and sought cooperation of the SBI. The chairperson SBI assured the delegation full cooperation on behalf of the SBI.