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Business Recorder
30-06-2025
- Business
- Business Recorder
Weekly Cotton Review: Mixed trend persists on improved trading
KARACHI: The cotton market witnessed a mixed trend. Trading activities showed improvement. The spot rate recorded a decline of Rs 200 per maund. In the recent budget, the government has fulfilled the long-standing demand of APTMA by discontinuing the Export Facilitation Scheme (EFS) on imported cotton, yarn, and fabric. This move has provided a level playing field for the local industry to compete internationally, earning appreciation from industrial circles. Recent rains in Sindh and Punjab have led to the partial closure of ginning factories, affecting production activities. However, experts suggest that while the rainfall will benefit the cotton crop, standing water in the fields could pose a risk of damage. Earlier, the crop had already suffered due to extreme heat, prompting farmers to remain vigilant about weather fluctuations. On another front, discussions were held between the leadership of China and APTMA to promote bilateral trade. Both sides emphasized maximizing benefits from the Free Trade Agreement (FTA) to further strengthen trade relations between the two countries. Joint measures in this regard are currently under consideration. Sohail Talat, Chairman of the Pakistan Business Forum (PBF) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has demanded the revival of the cotton industry in South Punjab. He declared that the struggle to eliminate taxes on cotton would continue until the government meets their demands. Ahsan-ul-Haq, Chairman of the Ginners Forum, stated that Pakistan's agriculture sector, particularly cotton crops, is facing severe damage due to the inefficiencies of the Meteorological Department. He emphasized the need for better weather forecasting and policy interventions to protect farmers' livelihoods. The Pakistan Cotton Ginners Association (PCGA) had demanded the removal of taxes on Khal and Banola, but the government has yet to take action. This delay has caused significant unrest among cotton growers, who are already struggling with financial and operational challenges. The local cotton market witnessed mixed trends in cotton prices over the past week. While prices in Sindh remained relatively weak, the Karachi Cotton Association's Spot Rate Committee reduced the spot rate by PKR 200 per maund, closing it at PKR 16,300 per maund. The supply of phutti (seed cotton) increased in both Sindh and Punjab, leading to the resumption of operations in several ginning factories. However, due to the distribution of phutti among a larger number of factories, many are operating only partially. The recent rains in Sindh and Punjab have discouraged ginners from purchasing large quantities of phutti, which is expected to disrupt the arrival of phutti and affect cotton quality. The government has discontinued the Export Facilitation Scheme (EFS) for cotton, yarn, and fabric in the budget and imposed an 18% sales tax on imported cotton, yarn, and fabric. This fulfills APTMA's long-standing demand for a level playing field, which is expected to benefit cotton farmers and encourage textile mills to purchase local cotton, thereby boosting domestic trade. According to a report, the sales tax on imported cotton, yarn, and fabric—as well as local cotton—may be reduced from 18% to 10%. However, confirmation of this news will only be possible after the official notification is issued. Meanwhile, the Pakistan Cotton Ginners Association (PCGA) remains concerned as its demand for the removal of taxes on cotton by-products, such as cottonseed oil and cake, has not been met. The Pakistan Kissan Ittehad has also raised its concerns and urged the government to address PCGA's demands. Sohail Talat, Chairman of the Pakistan Businesses Forum (PBF) and FPCCI, emphasized that the struggle to eliminate taxes on cotton will continue until the demands are met. The rate of cotton in Sindh is in between Rs16,200 to Rs 16,500 per maund, while the rate of phutti is in between Rs 7,500 to Rs 8,200 per 40 kg. In Punjab, cotton prices stood at Rs 16,700 to Rs 16,800 per maund. The rate of Phutti is in between Rs 7,800 to Rs 8,400 per 40 kg. However, prices of Banola have declined. The Spot Rate Committee of the Karachi Cotton Association reduced the spot rate by Rs 200 per maund, closing it at Rs 16,300 per maund. Karachi Cotton Brokers Forum Chairman Naseem Usman said that international cotton prices showed a mixed trend, with New York cotton futures trading between 66.00 to 69.00 cents per pound. According to the USDA's weekly production and sales report, 27,300 bales were sold for the 2024-25 season. Pakistan remained the top buyer, purchasing 9,200 bales, followed by Vietnam with 7,700 bales, and Japan in third place with 2,500 bales. For the 2025-26 season, sales reached 64,700 bales. Vietnam led with 34,300 bales, followed by El Salvador with 15,300 bales, and Malaysia in third place with 8,000 bales. Chinese Consulate General and All Pakistan Textile Mills Association (APTMA) leadership have resolved to upsurge bilateral trade, take maximum advantage of Free Trade Agreement (FTA) and to explore possibilities of joint ventures in textile industry. Zhao Shiren Consul General of China, Li Haoteng, Commercial Counsellor and Wang Yaqiang, Vice Consul visited APTMA office on Tuesday and discussed in detail prospects, ways and means to increase volume of trade and joint ventures in textile industry. Dr Gohar Ejaz, Patron-in-Chief APTMA and Chairman APTMA Kamran Arshad welcomed the Chinese Consul General at APTMA. They were accompanied by Syed Ali Ahsan, former Chairman APTMA, Zonal Management Committee members including Haroon Ellahi, Muhammad Ali, Faisal Jawed, Ahsan Shahid, Ismail Fareed, Habib Anwar, leading textile exporters, Secretary General APTMA Shahid Sattar and Secretary General North Mohammad Raza Baqir. Speaking on the occasion, Zhao Shiren said both China and Pakistan enjoy strong economic and cultural relations and China Pakistan Economic Corridor (CPEC) is an example of this robust relationship between both the countries. He highly appreciated the role of APTMA in general and of Dr Gohar Ejaz in particular in expansion of bilateral economic relations. He enumerated highly plausible services rendered by Dr Gohar Ejaz in cementing relation between China and Pakistan not only as Commerce Minister but also in his private capacity. He also spoke volume about community and welfare services being performed by Gohar Ejaz Foundation for poverty alleviation, medical services, educational and research uplift and industrialization of the country. Consul General highlighted expansion of bilateral trade since the signing of China-Pakistan Free Trade Agreement (FTA) in 2006 and resolved to further uplift the said volume by taking maximum benefits from FTA. He noted that balance of trade is presently in favour of China and assured of his help to not only expand trade volume but also to bridge the gap in balance of trade. He informed that textile goods falling in more than 800 HS tariff lines of customs chapters 50 to 63 enjoy duty free status under FTA on import into China from Pakistan. He emphasised Pakistani textile industry to avail duty free regime widely liberalized for Pakistani textile products since implementation of Phase II of FTA in 2020. According to reports, cotton has been cultivated on 3.128 million acres in Punjab and 1.005 million acres in Sindh. The expected yield per acre is estimated at 170 kg. Punjab is projected to produce 4.898 million bales, while Sindh is expected to yield 2.519 million bales. The total anticipated cotton production for both provinces stands at 7.417 million bales. Copyright Business Recorder, 2025
Business Recorder
26-06-2025
- Business
- Business Recorder
Pre-launch ceremony of ‘Mera Brand Pakistan' held
KARACHI: The Pakistan Business Forum (PBF) held a pre-launch ceremony on Thursday at a local hotel in Karachi, ahead of its third consecutive mega exhibition titled 'Mera Brand Pakistan', scheduled for January 3 and 4, 2026. Organizers announced that the upcoming event will be the largest of its kind, quadrupling in scale compared to previous editions. Speaking at the ceremony, Jamaat-e-Islami Karachi Chief, Monem Zafar Khan linked the initiative to a broader national and humanitarian cause. He described Mera Brand Pakistan as a response to Israel's ongoing brutalities in Gaza, condemning the Zionist regime for using starvation as a weapon of war against innocent civilians. 'You cannot slaughter our women and children with one hand and sell us your products with the other,' Monem Zafar stated, urging a nationwide boycott of Israeli goods and calling on all stakeholders to support locally produced alternatives. Korangi Association of Trade and Industry (KATI) President Junaid Naqi echoed the call for strengthening domestic industries. He emphasized the need to enhance the quality and branding of Pakistani products and pledged full support to the Mera Brand Pakistan campaign. 'The nation must unite to prefer 'Made in Pakistan' over imported products, especially those linked to regimes engaged in oppression,' he said. PBF Acting President Amir Rafi shared the journey of the exhibition's growth, noting that the first event was organized within just 21 days in a single hall at the Karachi Expo Centre. The second expanded to two halls, and the upcoming third edition will be four times larger. He expressed gratitude to both exhibitors and the public—particularly Karachi's women—for their enthusiastic response. Copyright Business Recorder, 2025
Business Recorder
21-06-2025
- Business
- Business Recorder
Govt urged to give special package to SMEs
KARACHI: Convener of the FPCCI Energy Committee, President of Pakistan Business Forum (Karachi Chapter), and Chairman & CEO of Malik Group, Malik Khuda Bakhsh has urged the government to introduce a special package for Small and Medium Enterprises (SMEs). He stated that this policy represents a step toward clean energy, sustainable transport, and industrial growth. He added that the government must create more opportunities for new investment, as foreign investors are willing to invest in Pakistan but currently lack the necessary facilities. He called on the government to provide full support and facilitation for investors. Bakhsh further shared that the installation of EV charging stations has already begun in Karachi and other parts of the country. A contract has been signed with a Chinese company for this purpose, which will ensure improved energy supply for vehicles. He also disclosed that CNG station owners in Sindh— including in Motorway, Nawabshah, Hala, Sukkur, and Hyderabad— as well as in other provinces, have approached them to set up EV charging stations, and several more agreements are expected soon. He expressed satisfaction over the National Electric Vehicle (NEV) Policy 30-2025 issued by the Government of Pakistan. He described the policy, presented by Haroon Akhtar Khan (Special Assistant to the Prime Minister on Industries & Production), as a historic and revolutionary step toward reforms in Pakistan's industrial, environmental, and energy sectors. Bakhsh said that the new Electric Vehicle Policy is fully aligned with Prime Minister Mian Shehbaz Sharif's vision, which aims to promote clean, sustainable, and affordable transport. Copyright Business Recorder, 2025
Business Recorder
19-06-2025
- Business
- Business Recorder
Finance Bill 2025: PBF urges PM to repeal Sections 37AA and 37B
KARACHI: The Pakistan Business Forum (PBF) has formally appealed to Prime Minister Shehbaz Sharif to repeal Sections 37AA and 37B from the Finance Bill 2025 before its passage in Parliament, citing serious concerns over the adverse impact these provisions could have on legitimate business operations and investor confidence. In a letter addressed to the Prime Minister, PBF President Khawaja Mehboob ur Rehman expressed deep concern over what he described as 'regressive taxation measures,' particularly those that significantly expand the enforcement powers of the Inland Revenue Services. Rehman pointed to Sections 14AC, 14AD, 37B, and especially 37AA, which authorizes Inland Revenue officers to make arrests, as creating a 'highly concerning environment' that may lead to harassment of businesses. 'These provisions risk damaging the already fragile investor confidence and could have a chilling effect on economic activity across key sectors,' Rehman stated. He called for a serious review and amendment of these clauses prior to the bill's approval. The letter also addressed the government's neglect of the agricultural sector in the Finance Bill, despite agriculture being a devolved subject under the 18th Amendment. Rehman emphasized the need for meaningful fiscal relief and policy incentives, particularly for local cotton production. 'Despite the Ministry of National Food Security's assurances, no GST relief has been offered for domestic cotton, making it difficult for local producers to compete effectively,' the letter read. 'This lack of support not only harms local growers but also undermines Pakistan's textile industry; a vital contributor to employment and exports.' President Rehman reminded the Prime Minister of his longstanding support for the revival of cotton and expressed hope that the concerns of the business community would be addressed urgently. 'We trust your vision and your deep ties with the business community,' he concluded. 'We urge you to ensure that these problematic provisions are repealed before the Finance Bill is finalized.' Copyright Business Recorder, 2025
Business Recorder
14-06-2025
- Business
- Business Recorder
Budget lacks essential pro-business reforms: PBF
KARACHI: The Pakistan Business Forum (PBF) has raised serious concerns over the recently announced Federal Budget 2025, calling it a missed opportunity to stimulate economic growth and restore investor confidence. Senior Vice President of PBF, Ms Amna Awan, stated that the budget, as presented, lacks the essential pro-business reforms required to build momentum in a stabilizing economy. 'While Pakistan's economy is showing early signs of stabilization, the current budget does not provide the business community with the tools or confidence necessary to drive export-led growth,' said Amna Awan. 'We urge the government to reconsider anti-business tax provisions and to incorporate a more investment-friendly fiscal framework before the Finance Bill is passed by Parliament.' PBF leadership highlighted the sweeping discretionary powers proposed for tax authorities, warning that such measures would discourage investment, breed harassment, and exacerbate corruption and maladministration. Malik Khuda Baksh, President of PBF's Karachi Region, described the budget as 'deeply disappointing,' noting that it fails to address the real needs of the industrial sector or meet the expectations of citizens. 'The burden of fiscal adjustment has once again been shifted to the industrial sector, with no adequate relief to counteract rising costs of production,' said Malik. 'At a time when investor trust is fragile, the lack of meaningful incentives or reforms undermines the country's economic potential.' He also criticized the lack of emphasis on digitalization and one-window operational reforms, describing these as critical tools to improve the ease of doing business. Furthermore, PBF expressed concern that the government has not broadened the tax base, yet has set overly ambitious revenue targets that could harm compliant taxpayers and formal businesses. With the government projecting GDP growth of 4.2% for FY 2025 up from the current 2.7% PBF stressed that structural flaws within the budget must be addressed to meet these targets realistically. The Pakistan Business Forum has called for urgent consultations between the government and key business stakeholders to ensure the final Finance Bill supports sustainable economic growth, transparency, and private sector participation. Copyright Business Recorder, 2025
