Latest news with #AtifIkramSheikh
Business Recorder
3 days ago
- Business
- Business Recorder
Pakistan should take advantage of ‘lowest' US tariffs: FPCCI
KARACHI: President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh has emphasised the need that Pakistan should take full advantage of the lowest tariffs from the US in the region. He said that the US tariff imposed on India is 50 percent, on Bangladesh and Vietnam 20 percent, and on Pakistan 19 percent. He expressed fear that higher production costs compared to other countries in the region can neutralize this benefit. Taxes and high electricity and gas prices for the industry are a major obstacle to taking advantage of low tariffs, said Atif Ikram Sheikh. The government should immediately pay attention to the issue and reduce energy prices for the industrial sector, Atif Ikram Sheikh demanded. He said a significant increase in exports, especially textile exports, to the US is possible with a reduction in production costs. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Pakistan risks wasting ‘golden opportunity' in US market: FPCCI
Despite securing the lowest tariff rates on exports to the United States in the region, Pakistan risks losing this competitive edge due to high energy costs and production inefficiencies, warned Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The United States has lowered its reciprocal tariff rate on Pakistani goods to 19%, compared to the 20–25% imposed on regional competitors such as Bangladesh, Vietnam, and Sri Lanka. Meanwhile, archrival India faced a 50% tariff after US President Donald Trump issued an executive order imposing an additional 25% tariff on goods from India on Wednesday, adding to the 25% tariffs already announced. 'The US has imposed the lowest tariff in the region on Pakistani products,' said Atif Ikram Sheikh, urging authorities to 'take full advantage' of this situation, read a statement on Thursday. However, higher production costs in Pakistan, as compared to other countries in the region, can neutralise this benefit, he warned. 'Taxes, high electricity rates and gas prices for the industry are a major obstacle to taking advantage of low tariffs,' said Sheikh, urging the government to take immediate action to resolve these issues and reduce energy prices for the industrial sector. 'A significant increase in exports, especially textiles, to the US is possible amid a reduction in production costs,' he said. The US administration struck a deal with Pakistan, in which Washington would work with Islamabad to develop the South Asian nation's oil reserves. 'We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,' Trump wrote on social media. Islamabad described the deal as a marker of a broader partnership with Washington. Finance Minister Muhammad Aurangzeb, who led the final round of talks, said there was a larger economic and strategic agreement. The US is Pakistan's biggest trade partner. 'This golden opportunity should be taken advantage of,' said President FPCCI. He said that investment in the export sector is essential, saying that Pakistan must create a conducive environment for FDI. 'Low tariffs, single-digit interest rates, sustainable policies and long-term planning are the solution to the problems,' he said.
Express Tribune
4 days ago
- Business
- Express Tribune
FPCCI questionsinfrastructure cess
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has demanded clarification from the Sindh government over the recent hike in the Infrastructure Development Cess (IDC) on imports, which has risen from 1.25% to as high as 1.85%. FPCCI President Atif Ikram Sheikh raised the concern during a consultative session with Sindh Minister for Excise and Taxation Mukesh Kumar Chawla at Federation House. He said businesses are frustrated by the financial burden, legal ambiguity, and lack of visible infrastructure upgrades despite significant revenue collections. Chawla offered to reduce the IDC to 1% and keep it at that level for three years, provided businesses collectively withdraw ongoing court cases. He also agreed to consider withdrawing IDC on solar panel imports.
Business Recorder
4 days ago
- Business
- Business Recorder
FPCCI chief seeks clarification about IDC on imports in Sindh
KARACHI: Atif Ikram Sheikh, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has strongly sought the clarification on infrastructure development cess (IDC) on imports in Sindh as it has been even further increased from 1.25 percent to 1.80 percent - 1.85 percent. As per details, Mukesh Kumar Chawla, Sindh Minister of Excise, Taxation and Narcotics visited FPCCI on Wednesday for a detailed, interactive and consultative session on the longstanding issue. Atif Ikram Sheikh explained that the business community in Sindh is primarily concerned about the financial strain, legal validity and lack of visible infrastructure improvements despite the substantial revenue generated from the cess. While the Sindh government defends the cess as essential for infrastructure maintenance, the ongoing legal battles and perceived mismanagement of funds continue to fuel tensions. However, Chawla offered that provided the businesses and companies can all collectively withdraw all court cases vis-à-vis infrastructure development cess, the Sindh Government is ready to lower the cess to 1.0 percent from the current 1.85 percent – and, keep it at that level for the next 3 years. He also agreed to consider withdrawing cess on solar panels. On the issues of delay in the issuance of number plates, the minister informed that 200,000 number plates will be delivered within a week; and, additionally, the government is planning to have the number plates generating plant installed at the Civic Centre, Karachi, in order to fully resolve the issue. Saquib Fayyaz Magoon, SVP FPCCI, apprised that the recent efforts to resolve the cess issue through dialogue and collaboration indicate a potential path forward; but, the business community remains cautious – seeking tangible outcomes and greater transparency. He mentioned that cess on solar panels should be withdrawn. He said that FPCCI, being the apex body, is receiving feedback from all chambers, associations and trade bodies from various sectors to advocate reversal of these counterproductive measures, he added. Abdul Mohamin Khan, VP & Regional Chairman Sindh, FPCCI, elaborated that international export markets are very competitive; and, any addition in cost of production through duties, taxes or cess on temporary imports; i.e., raw materials used for export-oriented production have direct detrimental effects on fulfilment of export orders in a profitable, timely and competitive manner. He proposed that the imports falling under Export Facilitation Scheme (EFS) should be exempt from IDC as these are essentially aimed for industrial production meant for exports – and, the imposition of the cess on those imports makes no economic sense and it undermines the very spirit of EFS. Copyright Business Recorder, 2025
Business Recorder
31-07-2025
- Business
- Business Recorder
Pakistan's business community applauds new trade deal with US
Federation of Pakistan Chambers of Commerce & Industry (FPCCI), the country's apex body of trade and industry, has welcomed the recent trade agreement between Pakistan and the United States aimed at tariff reduction, terming it a major step forward in strengthening bilateral economic ties. 'The trade agreement between Pakistan and the US regarding tariff reduction is highly commendable,' Atif Ikram Sheikh, President of FPCCI, said in a statement on Thursday. 'The tariff agreement reflects the strengthening of bilateral cooperation, trade, and investment ties between the two countries,' he added. The remarks come after Pakistan and the US struck a deal that will result in lower tariffs for the South Asian nation as well as an agreement in which Washington will help develop Islamabad's oil reserves, the two sides said. 'We have just concluded a Deal with the Country of Pakistan, whereby Pakistan and the United States will work together on developing their massive Oil Reserves,' US President Donald Trump wrote on social media on Wednesday. 'We are in the process of choosing the Oil Company that will lead this Partnership.' Trump's social media post did not provide further details. Meanwhile, Pakistan's Finance Minister Muhammad Aurangzeb, in a video message on Thursday, termed the trade deal a 'win-win' situation for both countries. 'We are in a good place today in Pakistan, in terms of where we have arrived before August 1. We have come a long way in terms of our overall strategic partnership between Pakistan and the United States,' he said. Pakistan faced a potential 29% tariff on exports to the United States under tariffs announced by Washington in April on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place. US total goods trade with Pakistan was an estimated $7.3 billion in 2024, according to the website of the Office of the US Trade Representative, up from around $6.9 billion in 2023. The US goods trade deficit with Pakistan was $3 billion in 2024, a 5.2% increase over 2023. 'The US is Pakistan's largest trading partner, and this agreement will further boost the country's exports. The agreement will lead to reduced tariffs on Pakistani products in the US and improve market access,' said Sheikh. He added that the agreement will 'mark the beginning of a new era of economic cooperation between the two countries in key sectors'. The FPCCI President also reaffirmed the business community's full support for the government's initiatives aimed at national development.
