
Industrial leaders hail armed forces
In solidarity with Pakistan's armed forces, a joint press conference was held at the Korangi Association of Trade and Industry (KATI), attended by presidents and officials from various industrial organisations.
KATI President Junaid Naqi proposed that May 9 be observed as Unity Day, annually. SITE Association President Ahmed Azim Alvi stated that the Pakistan Army made the nation proud.
FBATI head Sheikh Muhammad Tehseen said business leaders are fighting a war in the sphere of trade and industry.
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Business Recorder
2 days ago
- Business Recorder
Negative FCA for KE consumers: KATI concerned over delay in implementation
KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI) has voiced strong concerns over reported efforts by the Ministry of Energy (Power Division) to delay the implementation of the negative Fuel Cost Adjustment (FCA) for April 2025 for K-Electric consumers. He warned that these attempts, which lack legal and procedural basis, could sabotage the Prime Minister's reform initiatives. 'The FCA must be determined and implemented in accordance with NEPRA's formula-based regulatory framework,' said Naqi. 'Blocking its application solely for Karachi raises serious questions about regulatory independence and sets a troubling precedent of administrative overreach.' Naqi pointed out that in the past, when FCA charges were higher, the people and industries of Karachi paid the additional costs without delay. 'Now, when the relief is finally due, obstacles are being placed. This selective treatment is unjust and erodes public trust in the government's reforms,' he added. He further clarified that unless a uniform FCA policy is formally approved by the federal cabinet and directed to NEPRA, no intervention holds legal validity. Even if approved, such a policy can only be applied prospectively, not retroactively. President KATI called for the transparent, fair, and timely implementation of all regulatory decisions and urged the government to allow NEPRA to function independently. Junaid Naqi stressed the need for equal treatment of all consumers including those in Karachi and reaffirmed the importance of upholding the rule of law. He welcomed Prime Minister Shehbaz Sharif's recent move to reduce electricity tariffs for industrial consumers, calling it a timely and commendable step. Junaid Naqi said the decision reflects the government's commitment to supporting Pakistan's export sectors and driving industrial growth during a time of economic uncertainty. Copyright Business Recorder, 2025


Business Recorder
3 days ago
- Business Recorder
Minimum monthly wage: KATI President rejects Sindh govt's proposal
KARACHI: The business and industrial community of Sindh has raised serious concerns over the provincial government's proposal to increase the minimum monthly wage to Rs 42,000. Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), rejected the proposal outright, stating that such an increase would be detrimental to Sindh's economy, industrial growth, and employment generation. Naqi emphasized that economic decisions must reflect the actual ground realities and prevailing macroeconomic indicators. With the national inflation rate currently at a historic low of 6%, he questioned the rationale behind a significant hike in the minimum wage. He pointed out that minimum wages in Punjab and Khyber Pakhtunkhwa range between Rs 37,000 and Rs 40,000, and if Sindh sets it at Rs 42,000, it would become the highest in the country, potentially prompting businesses to shift operations to more cost-effective provinces, thereby affecting investment and employment within Sindh. He further elaborated that even at the current minimum wage of Rs 37,000; the total cost per worker already exceeds Rs 61,000 per month. This includes Rs 4,500 in contributions to EOBI and SESSI, Rs 3,100 as an annual bonus, another Rs 3,100 in gratuity, Rs 1,500 for annual leave payments, Rs 8,000 for overtime (based on 25 hours/month), and Rs 3,800 in other employee benefits. This means that the actual financial burden per worker is already nearly double the base salary. If overtime rises to 48 hours, the monthly cost climbs beyond Rs 69,000, making Sindh-based industries non-competitive compared to other provinces. Naqi highlighted the severe financial and operational pressure industries in Sindh are already facing. He expressed frustration over poor enforcement of minimum wage laws, citing reports from the Sindh. Employees Social Security Institution (SESSI) and the Public Accounts Committee that state 80% of industries in Sindh are not complying with minimum wage legislation. Many workers, particularly those in the informal sector, are denied benefits such as overtime, paid leave, and bonuses, often receiving less than Rs 30,000 per month despite working 10-hour shifts. This disparity, according to Naqi, fosters social injustice and growing unrest in urban areas. He noted that informal entities paying below-legal wages are creating unfair competition for compliant businesses and that the resulting discontent among workers is fueling instability. Additionally, the erosion of labour unions has left around 90% of workers without access to their basic rights. He argued that any wage policy would remain ineffective unless existing labour laws are properly enforced. Otherwise, only a few informal businesses would benefit the same entities already evading regulation. Naqi warned that unchecked increases in labour costs could push industries to relocate to provinces with lower operational costs and better infrastructure, weakening Sindh's economy, reducing employment opportunities, and straining provincial resources. Naqi urged the Sindh government to set minimum wages in the range of Rs 38,000 to Rs 40,000, keeping them consistent with national inflation and other provincial benchmarks to avoid overburdening the industrial sector. He also called for capacity-building within the provincial labour department to ensure laws are implemented across both formal and informal sectors. He advocated for a phased transition toward a 'living wage' model through consultation between the government, employers, and labour representatives to ensure worker welfare without compromising industrial sustainability. Naqi also stressed that the proposed Sindh Labour Code should not be adopted until it guarantees the protection of workers and rights. Concluding his remarks, the KATI President emphasized the need to link wage policy with the availability of industrial infrastructure, including power and water supply, to maintain Sindh's industrial competitiveness and economic stability. He appealed to the Sindh government to base its economic decisions on practical realities and engage all stakeholders to safeguard the province's economy, investment climate, and job market. Copyright Business Recorder, 2025


Business Recorder
12-06-2025
- Business Recorder
KATI concerned at imposition of 18pc GST on imported solar panels
KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Junaid Naqi, has termed the Federal Budget 2025-26 disappointing, stating that it neither meets the requirements of the industrial sector nor fulfils the expectations of the general public. Junaid Naqi said that the budget remains heavily reliant on indirect taxation, particularly sales tax, which continues to increase the cost of doing business and contributes to inflation. He pointed out that the government has set an ambitious revenue collection target of Rs14.131 trillion and a non-tax revenue target of Rs5.167 trillion, both of which, he claimed, are disconnected from ground realities. Naqi further highlighted that while the government has projected GDP growth at 4.2% and inflation at 7.5%, the proposed measures to achieve these goals are inadequate and unrealistic. Expressing serious concern over the persistent exemption of the agricultural sector from the tax net, Naqi emphasized that despite contributing 26% to the national GDP, agriculture accounts for less than 1% of the total tax revenue, exposing a glaring imbalance in the fiscal framework. He noted that while the overall budget outlay stands at Rs17.6 trillion, the business community had hoped for balanced and fair policies that would ease the burden on existing taxpayers. Instead, he said, the government has once again placed the weight of fiscal adjustments on the industrial sector without offering sufficient relief to offset rising costs of production. While allocations include Rs2.55 trillion for defense and Rs1 trillion for the Public Sector Development Programme (PSDP), Naqi lamented the absence of tangible initiatives to promote industry, exports, or employment generation. The KATI President also raised concerns over the proposed 18% sales tax on solar panels and the imposition of heavy petroleum levies and a carbon tax, warning that these steps will further inflate prices and escalate the cost of doing business. While acknowledging minor adjustments such as the reduction in super tax rates and changes in income tax slabs, Naqi asserted that the overall budget fails to restore investor confidence or provide meaningful support to the business community. Calling for urgent reforms, he urged the government to reduce its dependence on indirect taxes and focus on broadening the tax base through direct measures. 'Without fundamental tax reforms, sustainable economic recovery will remain out of reach,' he said. Naqi concluded that the current budget falls short of addressing the aspirations of both Pakistan's industrial sector and its citizens. He urged the government to adopt a realistic, inclusive, and growth-oriented fiscal strategy moving forward. Copyright Business Recorder, 2025