Latest news with #Bilwani
Express Tribune
12 hours ago
- Business
- Express Tribune
'Gas price hike will hit exports'
Listen to article Chairman Businessmen Group (BMG) Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani have strongly opposed the proposed gas tariff hike for industrial processes, calling it illogical and damaging for Pakistan's already struggling industrial sector. The proposal is expected to be discussed in the upcoming meeting of the Economic Coordination Committee (ECC). In a joint statement, Motiwala and Bilwani said the hike is unjustified in light of current global and domestic energy trends. They noted that Brent crude prices have declined and that the SNGPL system is already facing a surplus of imported RLNG, with 300 to 400mmcfd going unutilised due to high prices and excessive taxes. They argued that the government should focus on improving supply management instead of further burdening industry. They emphasised that although only 80 to 100 Independent Power Producers (IPPs) use process gas, more than 8,000 Small and Medium Enterprises (SMEs) rely on it. A tariff increase would cripple these SMEs, which form the backbone of Pakistan's manufacturing sector. Instead, they recommended a 20% reduction in gas tariffs to help SMEs stay afloat amid rising input costs and harsh budgetary taxes. The leaders highlighted that OGRA's recent decision on May 20, 2025, reduced SSGC's gas tariff by Rs103.95 per MMBtu to Rs1,658.56, reflecting falling global fuel prices. They questioned how a hike for industrial users could be justified when regulatory bodies themselves recognised falling costs. OGRA also set a revised tariff of Rs1,895.25 per MMBtu for SNGPL, which remains below the proposed rate. Petitioners during OGRA's hearings also flagged inflated RLNG diversion costs and unrealistic Brent crude pricing assumptions that distort true gas pricing. Motiwala and Bilwani warned that raising gas tariffs would worsen inflation, increase unemployment, and discourage local and foreign investment. Industry, already hit by electricity costs, currency instability, and shrinking demand, cannot absorb further shocks. They called on the ECC to immediately withdraw the proposal and conduct a transparent review of gas pricing, aligning it with OGRA's findings and global trends. "Burdening industry to offset inefficiencies elsewhere is unacceptable," they said. "Support for industry is essential for true economic recovery."
Express Tribune
2 days ago
- Business
- Express Tribune
KCCI slams FBR proposals
Listen to article President of the Karachi Chamber of Commerce and Industry (KCCI), Muhammad Jawed Bilwani, has strongly criticised the Federal Board of Revenue (FBR) for what he termed its authoritarian conduct and disregard for the Business Anomalies Committee, comprising presidents of chambers and trade bodies from across Pakistan. Following extensive consultations with its members, KCCI has launched a citywide protest by displaying banners across Karachi against what it calls "oppressive" provisions in the Finance Bill 2025-26, particularly the proposed Section 37AA in the Sales Tax Act. "This is just the beginning," Bilwani said in a statement. "The protest will escalate, with press conferences by KCCI and other major chambers. If our demands are ignored, we may have no choice but to call for citywide or even nationwide strikes." He dismissed the finance minister's claims of a "public-friendly" and "business-friendly" budget as detached from reality. "Industrialists and exporters unanimously agree — there is no relief." Bilwani outlined a grim outlook for the business environment, citing high energy costs, poor infrastructure, gas shortages, water scarcity, and delayed tax refunds. "Our exports survive not because of policy support, but due to the resilience of our business community. Some buyers are even advising us to shift operations to more stable, business-friendly countries." Criticising Section 37AA as a "draconian law," he said it allows FBR to freeze bank accounts, seize funds, and arrest taxpayers based solely on suspicion, regardless of their past compliance. "Who will continue to do business under such hostile conditions?" He revealed that many businessmen have asked KCCI to help them explore options for relocating abroad. "We still want to stay and contribute. But we need the government and prime minister to listen and give us confidence." Bilwani stressed that this frustration is nationwide. "Faisalabad, Lahore, Sialkot — all major export hubs — are raising the same concerns."
Business Recorder
2 days ago
- Business
- Business Recorder
KCCI slams FBR for its ‘authoritarian' conduct, ‘indifference'
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI), Muhammad Jawed Bilwani criticised the Federal Board of Revenue (FBR) for its authoritarian conduct and indifference towards the Business Anomalies Committee, comprising presidents of Chambers of Commerce and leaders of trade bodies from across the country. In a powerful move, the KCCI, after thorough consultations with its members, has launched a full-scale protest by displaying bold banners across Karachi against the oppressive measures proposed in the Finance Bill 2025–26, particularly the insertion of Section 37AA in Sales Tax Act. In a statement issued, Bilwani said, 'This is just the beginning. The protest will escalate, press conferences will follow not only by KCCI but also by other major Chambers across Pakistan. And if our demands are ignored, we may be left with no option but to call for citywide or even nationwide strikes. I appeal to the entire business community, especially small traders, to stand united with KCCI if such a call is made.' Bilwani criticised the Finance minister's repeated claims that the budget is 'public-friendly' and 'business-friendly', stating that these claims are totally contrary to reality. 'Industrialists and exporters across the board are unanimous; there is absolutely no relief in this budget. He painted a grim picture of Pakistan's business environment, citing soaring energy costs, substandard electricity, gas shortages, water unavailability, and delayed tax refunds that have paralyzed liquidity. 'Exports are not thriving because of any government policy. They are sustained solely due to the resilience and global reputation of our business community. In fact, many of our international buyers are urging us to shift operations to other countries where conditions are stable, sustainable, and truly pro-business.' Highlighting the most controversial provision, Section 37AA, Bilwani labeled it as a draconian law that defies all norms of justice. 'This section empowers FBR to freeze bank accounts, seize funds, and arrest taxpayers based merely on suspicion, even those who have been tax-compliant for decades. Is this a fair thing to do? Who will continue to do business in such a hostile climate?' He revealed that many businessmen are now asking KCCI to form a committee to guide them on how to relocate their businesses abroad so they can operate in a safer, fairer environment. 'But we are still here. We want to stay, we want to contribute, and we want the Prime Minister and the government to hear us and give us the confidence we need to make sound business decisions.' Bilwani emphasised that this is not just Karachi's grievance. 'Faisalabad, Lahore, Sialkot, all major export hubs, are echoing the same concerns. These cities including Karachi house most of Pakistan's industries and top taxpayers, yet they are being sidelined. If this continues and the people support us, we will not hesitate to call for strikes.' He also slammed the FBR for its mishandling of the Business Anomalies Committee meeting, calling it 'pathetic and humiliating.' Despite the presence of senior business leaders, the FBR failed to send officials to listen to critical recommendations. Instead of a proper Zoom link, a Cisco link full of flaws was shared, resulting in technical chaos as participants were unable to understand the audio or view the presentation slides. 'The Member IR showed up after a long delay, spoke for barely five minutes, and then disappeared, demonstrating the government's total lack of seriousness. To make matters worse, the anomalies list shared during the meeting didn't even include the issues raised by chambers, it only reflected inputs from a select few. Disgusted by this farce, most members walked out of the meeting and submitted their resignations, rightly concluding it was a complete waste of time.' Copyright Business Recorder, 2025
Express Tribune
16-06-2025
- Business
- Express Tribune
Frustration voiced over policy rate status quo
Business leaders on Monday voiced strong frustration over the State Bank of Pakistan's (SBP) decision to maintain the status quo on interest rates, announced on Monday, warning that the policy continues to choke economic growth and industrial recovery. Echoing this sentiment, Karachi Chamber of Commerce & Industry (KCCI) President Muhammad Jawed Bilwani said, "We appeal to the central bank to act with foresight and show empathy towards the productive sectors of the economy. Pakistan cannot afford to stifle its growth potential any longer." He expressed profound disappointment over the SBP's decision to keep the policy rate unchanged at 11%, describing it as an overly cautious and counterproductive stance given easing inflation and worsening industrial competitiveness. In a statement he said, "The business community had pinned hopes on a long-overdue reduction in the interest rate to single digits to help kick-start economic activity, reduce the cost of doing business, and support struggling industries. By choosing to maintain the status quo, the SBP has not only ignored market signals but also dampened business sentiment at a time when the economy urgently needs a boost." He noted that inflation had clearly bottomed out, with independent analysts projecting it to remain between 6% and 7% for FY26, while both the International Monetary Fund (IMF) and the government estimate it at 7.5%. In light of these forecasts, the decision to maintain the policy rate at a high level of 11% appears unjustified. While the SBP cited the uptick in inflation to 3.5% in May as a reason, this rate remains relatively low and still provides ample room for a further reduction in interest rates - a step that, regrettably, was not taken, he lamented. Bilwani emphasised that such high interest rates have rendered Pakistan's industrial sector uncompetitive in the regional and global markets. "Our exporters are struggling to maintain their foothold internationally, while domestic manufacturers face increasing pressure from cheaper imports. A rate cut would have provided critical breathing space for industrial revival and job creation," he said. Site Association of Industry (SA) Karachi President Ahmed Azim Alvi said this was a good opportunity for the SBP to reduce the interest rate to a single digit, offering hope to disappointed businesspeople and boosting economic growth. He added that the government needs competent economists and policymakers who can closely understand the fluctuations of the national economy and business environment. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh said the industry is disappointed at the status quo in the monetary policy. He said the business, industry and trade community of Pakistan is disappointed with the monetary policy as it continues to be based on a heavy premium vis-à-vis Consumer Price Index (CPI) and the SBP has maintained status quo in the policy rate in its Monday meeting. He said the CPI, as per government's own statistics, stood at 3.50% in May 2025; but, the policy rate continues to be 11% as of today – which reflects a premium of 750 basis points (bps) as compared to inflation and it makes no economic sense. He said after deliberations from the apex trade and industry platform with all industries and sectors, the FPCCI had demanded a single-stroke rate cut of 400 basis points during the Monday's monetary policy committee (MPC) meeting to rationalise the key policy rate; and, align it to the vision of special investment facilitation council (SIFC) and, the prime minister's vision for industrial development, import substitution and export growth. Sheikh noted that CPI is expected to remain between 24% in JuneJuly 2025, and therefore demanded the key policy rate be cut to 7%.
Express Tribune
05-06-2025
- Business
- Express Tribune
Govt urged to restore EFS in original form
Listen to article Pakistan Hosiery Manufacturers Association Chairman Babar Khan has emphasised that the Export Facilitation Scheme (EFS) should be restored in its true spirit and local supplies should also be included in its scope as the scheme has contributed to boosting exports not only in the value-added sector but also across several non-traditional areas. Speaking at a press conference in Karachi on Wednesday, he noted that the process of depositing sales tax and receiving refunds was taking five to six months, which created liquidity issues. He was of the view that the spinners' lobby was demanding duties on yarn and fabric to maintain its monopoly and was misleading the government. "We make up to 70% value addition in imported cotton; therefore, we demand a long-term policy," Babar Khan said, adding that there was constant anxiety before every budget over possible policy changes. Karachi Chamber of Commerce and Industry (KCCI) President Jawed Bilwani claimed that the All Pakistan Textile Mills Association (Aptma) chairman had acknowledged during a Planning Commission meeting that the quality of their yarn was substandard. He emphasised that imported cotton was both cheaper and of better quality, which enabled exports of non-traditional products. The EFS supported exports after the downturn caused by Covid-19 and should continue as originally envisioned, he said and mentioned that all textile composite units were supporting their stance. In response to a question, Bilwani stated that the value-added sector had not misused the EFS and a real-time audit could be conducted, alleging that the misuse occurred in the iron and steel sector. He stressed that the scheme had opened up new export opportunities. Bilwani questioned how exports were increasing when hundreds of spinning units had shut down. He proposed that the government should give sales tax exemption on local cotton and yarn sales as well. Furthermore, he urged that utility tariffs for the spinning and export industries be aligned with those in the regional competitor countries. He recommended introducing a final tax regime instead of a normal one for export sectors and abolishing the advance tax collection. Meanwhile, at a joint press conference held at the PHMA Lahore office, the hosiery manufacturers and the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) demanded urgent action to restore the EFS in its original spirit. The request comes after local yarn and fabric producers demanded the withdrawal of the scheme, citing its misuse. The leadership jointly called on Prime Minister Shehbaz Sharif to intervene and halt policy shifts that were threatening to dismantle the EFS. They warned that the ongoing bureaucratic distortions, compounded by lobbying from the spinning sector for new tariffs, were pushing the small and medium enterprise (SME)-based apparel export industry towards serious crisis. PHMA Zonal Chairman Abdul Hameed and PRGMEA Regional Chairman Dr Ayyazuddin said the EFS had been introduced to allow duty-free import of raw material for exporters, giving Pakistan's apparel sector a competitive edge. "Instead of simplifying exports, the EFS has become bogged down by manual procedures and is now under threat from proposed tariff changes," said Abdul Hameed. Ayyazuddin stressed that the SMEs, which formed the bulk of the value-added industry, could not survive under such conditions. "We operate on thin margins and short timelines. The EFS was a breakthrough for us, but now it's being reshaped to serve upstream interests. These tariffs, reportedly pushed by the spinners' lobby, protect a narrow segment at the cost of Pakistan's largest job-creating export base." The industry leaders expressed concern over reports of potential imposition of duties on raw material like synthetic yarn, man-made fibre, technical fabric and accessories – none produced locally. "Any tariff on items under HS Chapters 54, 55 and 96 is unacceptable," said Hameed. "These are essential production inputs and taxing them means taxing exports at the very beginning." Speaking virtually, former PRGMEA chairman Ijaz Khokhar said the entire value chain had welcomed the EFS as a much-needed correction in policy. "But distortions are creeping in. The original vision of a seamless, transparent system is being hijacked," he said.
