Inflation can only be reduced through Business and Industrial Progress. State Bank to reduce Mark up. Says Yakoob H. Karim
Hub, October 24, 2024: Mr. Yakoob H. Karim, The President and the Executive Committee of the Hub Chamber of Commerce and Industry demanded at least a 4% reduction in the mark-up in the upcoming Monetary Policy Committee meeting.
Addressing an urgent Meeting of the Executive Committee of the Hub Chamber of Commerce and Industry, he said that there is only one way of fulfilling government claims to reduce inflation supported by the World Bank; A fast-track growth of business and industry across the country. Gearing up the business and industrial activity may not be possible with the current mark-up rate of 17.50% p.a.
Mr. Maqsood Ismail. The ex-president of the Hub Chamber said that the proposed 4% reduction in the mark-up rate will encourage business activity and new investments resulting in a reduction in inflation.
The Chamber urges the State Bank of Pakistan’s Monetary Policy Committee to consider this reduction in their upcoming meeting, supporting Pakistan’s economic recovery and growth.
KARACHI: Newly elected Hub Chamber of Commerce and Industry President Yakoob H Karim, ex-presidents Maqsood Ismail and Ismail Suttar, and the executive committee have demanded of the Balochistan government to withdraw the notice of Balochistan Revenue Authority for collection of infrastructure cess on all exports.
Addressing an urgent meeting of the Executive Committee, Yakoob Karim said that the industry in Balochistan is going through a difficult time. It lacks the basic utilities including energy, gas, and water to keep the manufacturing process moving.
Despite all the odds, the industrialists of the province and in particular, of Hub which hosts 99% of the industry of the province, are trying hard to keep running their units.
RECORDER REPORT
KARACHI: Ismail Sattar, President of the Lasbela Chamber of Commerce and Industry (LCCI), has voiced concerns regarding the government’s economic policies in light of the global economic scenario.
He stated that the exclusive emphasis on only five zero-rated export sectors and the prioritization of policies are significant obstacles hindering economic and industrial development.
Ismail Sattar has appealed to the government to reconsider its stance, proposing an extension of the zero-rated facility beyond the existing five sectors. He recommends providing the same concessions in taxes and duties to all export sectors, emphasizing the need for a more inclusive approach.
His plea aims to enable all export sectors to actively contribute to the country’s economic development according to their individual capacities. This, he believes, would ensure a more equitable distribution of contributions to the national treasury. Sattar urges the government to adopt a broader perspective to facilitate the growth and participation of all export sectors in the economic development of the country.
President LCCI rejected the government’s policy of prioritizing only five export sectors for the benefits aimed at increasing exports. He contends that the government’s rationale is to exclusively concentrate on five sectors of Pakistan’s export industry, namely textiles, carpets, sports goods, surgical, and the leather industry.
It has been observed that these specific sectors enjoy subsidized electricity and gas rates along with lower duties and taxes. In contrast, the remaining manufacturing divisions receive no subsidies to enhance their competitiveness in the international market, despite outperforming the five zero-rated export sectors.
Sattar argues that the government’s focus on only the zero-rated export sectors is entirely unfair, as it disregards the better performance of other industries and exacerbates the imbalance in subsidy distribution.
Furthermore, he emphasized that the government, through unwise strategies and unjust incentives, is fostering division among different industrial sectors.
The discriminatory policies, particularly the recent biased government decision to impose nine-cent energy tariff on the ‘Sacred Five Sectors’ have created a rift among various industrial segments. Today, Pakistani industrialists have become victims of this debacle and lunacy, as the unwise strategies are creating a divide among different industrial sectors through unfair incentives, states Ismail Suttar.
President LCCI emphasized the fact that Pakistan’s industrial foundations are laid by SMEs, and today, these industries are taking a serious hit because of ill-advised policies that support only a handful of setups. Their impractical plans have damaged the roots of small to medium industrial arrangements in the country.
“We are fortunate to have a country like Pakistan with remarkable regional diversity. Each province possesses its own unique set of skills and comparative advantages in various industries. For instance, Punjab is renowned for its fertile soil and textile hub, Balochistan for its rugged terrain abundant in mineral resources, Sindh for its coastal line ideal for the fisheries industry, and Northern Pakistan for its potential in tourism and winter nuts. Currently, only Punjab is considered the epitome of industries in Pakistan, while the rest of the regions are neglected. This implies that the country has missed numerous growth opportunities in areas where it could have easily flourished by leveraging regional strengths and resources,” he said.
Ismail Suttar was of the opinion that it is high time for the Government of Pakistan to realize the potential of every export-oriented industry and place them on an equal footing to experience economic growth.
“I am certain that many industries, suppressed under the top five, can single-handedly amplify the existing export revenue by four times if given a level playing field. Therefore, I am pleading with the government at this moment to take heed of past practices and provide equal opportunities to all sectors. This will allow them to thrive and reflect their prosperity in the economy,” he said.
Training Announcement
A one-day training program on Productivity improvement is being organized at the LCCI office. Details are as follows:
Topic: Productivity Improvement Through 5S & 5T
Trainers: SMEDA, Ministry of Industries & Production, Government of Pakistan
When: Thursday January 25, 2024 10:00 -04:30
Where: LCCI Conference Hall
Program Flyer: I’ve attached it here.
Course Fee: Your Smile
Registration: Please send your nominations to the chamber or use the link provided in the program flyer.
January 04, 2024 – Meeting with Chairperson Balochistan Revenue Authority.
A delegation of Balochistan Revenue Authority headed by Mr. Noorul-Haq Baloch called on the President of the Lasbela Chamber of Commerce and Industry to discuss the issues of migration of payment to provincial authorities consequent to the 18th Constitutional Amendment.
The discussion included the registration of companies with BRA and the payment of contributions of WWF and WPPF to BRA which are currently being paid to FBR. This was the fourth meeting in the series. The meeting was attended by representatives of the member industries. The way of the smooth transition from FBR to BRA was discussed.
January 10, 2024: Seminar by Balochistan /food Authority
Secretary Food Balochistan, Mr. Muhammad Saleh Baloch, Director General Balochistan Food Authority Mr. Naeem Bazai along with the team of Balochistan Food Authority visited the LCCI office for an awareness session at the Chamber office on January 10, 2024, for the food sector industries at Hub. The objective of the meeting was to develop an understanding of the registration process with BFA and the legal responsibilities of the industries. Mr. Maqsood Ismail, Ex-President of LCCI, Mr. Madni Khanani, Vice President of LCCI, and Mr. Anjum Rafat Ullah Khan, Secretary General of LCCI attended the seminar. Mr. Maqsood Ismail assured the Secretary of Food of LCCI’s cooperation in compliance with all the rules and regulations and registration requirements as per law applicable to food sector industries.
January 11, 2024
For the Capacity Building of the staff of various industries, Lasbela Chamber arranged a one-day training workshop on the “Lean and Six Sigma Awareness” for the member industries at the LCCI office. Trainers were engaged from M/s “Inspiring Time Leaders”. Managers from member industries attended the seminar and updated their knowledge of modern techniques. Mr. Madni Khanani, Vice President of LCCI and Mr. Anjum Rafat Ullah Khan, Secretary General of LCCI were present and spoken at the occasion.