Latest news with #Naqi
Business Recorder
12-07-2025
- Business
- Business Recorder
KATI vows full support to planned nationwide strike
KARACHI: The Korangi Association of Trade and Industry (KATI) have announced its full support for the nationwide peaceful strike called by the business community on July 19, under the leadership of the Karachi Chamber of Commerce and Industry (KCCI). KATI President Junaid Naqi said the traders' decision to strike is both timely and justified, accurately reflecting the sentiments of the business community. He criticized the government's recent fiscal measures, introduced in the Finance Act, as anti-business and damaging to the economic environment. 'The policies being implemented are harsh, unrealistic, and simply unacceptable to traders, SMEs, and industrialists,' Naqi said. 'Restrictions on cash transactions, arbitrary arrest powers, and the imposition of digital invoicing are alarming signals for businesses.' He further stated that these unilateral decisions by policymakers, made without consulting stakeholders, demonstrate a lack of foresight and are pushing the economy toward informality and disorganization. Naqi urged the government to immediately review and revise the controversial clauses of the Finance Act and to initiate meaningful dialogue with the business community. Copyright Business Recorder, 2025
Business Recorder
02-07-2025
- Business
- Business Recorder
KATI urges FBR to extend deadline for sales tax e-invoicing
KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has called on the Federal Board of Revenue (FBR) to extend the mandatory deadline for sales tax e-invoicing and integration with the FBR portal by at least three months. He stressed that the business community is not yet fully prepared for this critical transition and warned that rushing its implementation could result in widespread non-compliance and disruptions to business operations. While acknowledging and supporting FBR's digitalization drive, Naqi emphasized that the current deadlines, July 1, 2025, for corporate taxpayers and August 1, 2025, for non-corporate entities are unrealistic, as the majority of businesses have not completed preparations for integration with the FBR's e-invoicing system. 'There have been technical issues and delays since the early stages of this system's rollout, causing serious concern among the business community,' Naqi said. 'We fully support the idea of digitization, as it is the future of tax systems, but it must be implemented gradually and thoughtfully.' He further explained that without adequate time for training and system readiness, the policy may backfire and undermine FBR's own goals of transparency and operational efficiency. 'Forced and hasty implementation will disrupt business continuity and increase non-compliance,' Naqi warned. Highlighting the importance of a practical and phased approach, Naqi said, 'If a three-month extension is granted, businesses will have sufficient time to adjust, align their systems, and implement the changes in a sustainable manner. Without this flexibility, businesses may face compliance challenges and technical hurdles that will damage confidence and performance.' He urged FBR to focus on facilitation, not pressure, saying that the business community is willing to comply but needs realistic timelines to do so effectively. 'Industry and commerce are the backbone of the economy,' Naqi concluded, 'and no revenue targets can be achieved without ensuring their sustainability and support.' Copyright Business Recorder, 2025
Business Recorder
01-07-2025
- Business
- Business Recorder
KATI opposes gas price hike decision
KARACHI: Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has strongly opposed the federal government's decision to increase gas prices for the industrial sector, bulk consumers, and the power sector from July 1st, calling it 'disastrous' for Pakistan's already struggling economy. Naqi expressed deep concern over the move, stating that industries are already burdened with skyrocketing electricity, fuel, and raw material costs. 'Now, this increase in gas tariffs will deliver a serious blow to the economy,' he said. Gas, he added, is a critical raw material for several key sectors, particularly textiles, food processing, iron and steel, chemicals, and fertilizer, all of which will be directly impacted. He also criticized the government's simultaneous decision to raise fixed gas charges for domestic consumers by 50%, noting that the indirect financial burden would also eventually fall on industries. 'By shifting the weight of this increase onto the industrial sector, the government is once again treating businesses as scapegoats,' Naqi remarked. The KATI President warned that the hike in gas prices would not only raise production costs significantly but also render Pakistani exports uncompetitive in the global market. 'The government seems oblivious to the fact that a decline in exports directly affects foreign exchange reserves and slows down overall economic momentum,' he added. Naqi pointed out that independent power producers (IPPs), who rely on gas to generate electricity, would now produce even more expensive power, a cost that would ultimately be passed on to the public, small businesses, and the industrial sector alike. 'At a time when Pakistan desperately needs industry-friendly policies to stay afloat, such decisions are akin to stalling the wheels of economic activity,' he stressed. Referring to OGRA's approval of a 6.6% increase in gas tariffs for fiscal year 2025–26 to help gas companies recover a revenue target of Rs 890 billion, including Rs 354 billion for Karachi-based SSGC alone, Naqi said the industrial sector is being unfairly forced to shoulder the consequences of financial mismanagement by public gas utilities. Copyright Business Recorder, 2025
Business Recorder
26-06-2025
- Business
- 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
26-06-2025
- Business
- 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
