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Business Recorder
12 hours ago
- Business
- Business Recorder
Higher interest rates causing adverse impact on economy: Tanveer
LAHORE: S M Tanveer, Patron-in-Chief of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has pointed out that interest rates in Pakistan have been consistently higher over the past decade than in countries with currencies pegged to the US dollar, such as Hong Kong and the UAE. This has created an unsustainable gap between our interest rates and those of stronger economies, putting pressure on the rupee and making everyday life more expensive for all of us. He has urged the government to take immediate action to stimulate economic growth and alleviate the suffering of the common man. According to him, while global interest rates have remained stable around 4-5%, Pakistan's policy rate has peaked above 22% and still stands at 11%, despite inflation falling to just 4%. This wide interest rate gap is having a devastating impact on our economy and our people. Tanveer said high interest rates are causing savings to lose value faster, prices of essentials to rise, businesses to struggle to survive, job opportunities to shrink, and exports to become uncompetitive. The government is also spending trillions just to pay interest on domestic debt, which is unsustainable. He has demanded a reduction of interest rates to 6% - immediately to lower inflation further, cut debt servicing by Rs 3.5 trillion, boost businesses and create jobs, stabilize the rupee, and promote real growth and exports. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business
- Business Recorder
‘Need for implementing key developments to strength Pak-UK trade ties'
KARACHI: The Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Muhammad Aman Pracha has emphasized the need for implementing key developments aimed at strengthening bilateral trade relations between Pakistan and the United Kingdom. He stated that a trade agreement has been reached between Pakistan and the UK, which seeks to enhance economic cooperation and reduce trade barriers. Under this agreement, there is a need to establish joint working groups and conduct regular review meetings, focusing on cooperation in areas such as digital trade, renewable energy, agriculture, and pharmaceuticals. However, in order to truly boost bilateral trade, a formal Free Trade Agreement (FTA) is essential, Pracha stressed. He further noted that a 'Trade Dialogue Mechanism Agreement' has also been signed between the two countries, aimed at reinforcing bilateral economic cooperation, exploring trade opportunities, removing barriers, and promoting mutual investment. Pakistan can also benefit from the UK's Developing Countries Trading Scheme (DCTS), which will help boost exports in sectors like IT, agricultural technology, and pharmaceuticals. Pracha highlighted the need to engage the Pakistani diaspora in the UK to promote trade between the two countries. He pointed out that the current trade volume between Pakistan and the UK stands at around £4.7 billion, and that non-tariff barriers affecting this trade must be addressed. He acknowledged that while negotiating an FTA requires significant resources and time, such an agreement would align with the economic priorities of both nations. At present, no bilateral FTA exists between Pakistan and the UK, but authorities on both sides are working realistically towards laying the groundwork for a possible future agreement. Pracha also emphasized that Pakistan's technology and digital services sector is the most dynamic segment of its economy, and the UK is interested in having more Pakistani tech companies use the UK as a platform to access European and global markets. British development finance institutions are playing a key role in this effort, helping promote digital infrastructure and financial inclusion in Pakistan. Meanwhile, UK Export Finance is supporting Pakistani companies looking to expand exports or partner with British firms. He urged the Pakistani government to pay special attention to this opportunity. Copyright Business Recorder, 2025
Business Recorder
16-07-2025
- Business
- Business Recorder
FPCCI VP welcomes agreement signed between Pakistan, UK
KARACHI: Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Muhammad Aman Paracha has emphasized that strengthening trade relations with the UK could offer Pakistan and its industries a valuable alternative market, leading to sustainable socio-economic development, qualitative industrial advancement, and increased exports. Welcoming the agreement signed to enhance bilateral trade and address challenges between Pakistan and the United Kingdom. He described it as a positive step for trade relations between the two countries. He said that the agreement was signed by Pakistan's Federal Minister for Commerce, Jam Kamal Khan, and his British counterpart, UK Minister Douglas Alexander. This is the first high-level trade agreement between the two countries, finalized after approval from the Pakistani cabinet. He added that this agreement is a significant step toward institutionalizing bilateral economic cooperation between Pakistan and UK. Following the agreement, both countries should focus on exploring trade opportunities, removing obstacles, and enhancing mutual investment, Paracha said. The FPCCI Vice President reiterated that trade expansion with the UK could unlock a promising market for Pakistan's industries. British investors of Pakistani origin can also play an important role in this process. Aman Paracha highlighted that the current estimated value of bilateral trade is £4.7 billion, but with increased cooperation across various sectors, both nations stand to benefit mutually. To promote bilateral trade, he suggested that both governments take joint initiatives to pursue Preferential Trade Agreements (PTAs) or Free Trade Agreements (FTAs), organize regular exchange of business delegations, hold country-specific trade exhibitions and product fairs, and ensure FPCCI leadership is included in all consultations. Copyright Business Recorder, 2025
Business Recorder
12-07-2025
- Business
- Business Recorder
Don't want to create any trouble: FPCCI chief
ISLAMABAD: President of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Atif Ikram Sheikh has said that they do not wish to create any difficulties in the current situation after enforcement of arrests powers under Finance Act 2025. In a statement on Finance Act 2205, he urged the business community across the country to demonstrate unity and immediately refrain from any form of protest. The Minister of State for Finance will hold monthly meetings at FPCCI to address the issues of the business community, follow up on previous meetings, and will be accompanied by officers from various relevant institutions. In a video statement, he said that during the meeting held at the Federation with the Minister of State for Finance, stakeholders expressed strong reservations about the controversial clauses. The business community has concerns regarding Sections 30A, 8B, and 40B of the Sales Tax Act, and Section 21S of the Income Tax Ordinance. Minister of State for Finance, Bilal Azhar Kayani, and his team have assured that the business community's concerns will be addressed. Copyright Business Recorder, 2025
Express Tribune
11-07-2025
- Business
- Express Tribune
Businessmen slam punitive laws
Listen to article Pakistan's leading business chambers on Friday asked the government to immediately suspend the laws that authorise the arrest of taxpayers on allegations of fraud and penalise the use of cash for over Rs200,000 worth of business transactions or else they will begin an agitation campaign. The demands were made from the platform of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in the presence of Minister of State for Finance Bilal Azhar Kayani and members of the Federal Board of Revenue (FBR). Finance Minister Muhammad Aurangzeb did not attend the FPCCI meeting, where representatives of almost all the chambers and associations were present. The business community wants the immediate withdrawal of the FBR's authority to arrest people on allegations of fraud, powers to add back 50% of cash expenditure above Rs200,000 in income and depute taxmen in factories, said FPCCI President Atif Ikram Sheikh. Sheikh demanded that the FBR's discretion to determine input adjustment and the enforcement of electronic invoicing should also be suspended. The government has taken these measures to minimise the use of cash in the economy and to crack down on tax fraud. "A thief will be called a thief but we will ensure that the law is not wrongly applied," said Minister of State Bilal Kayani while responding to demands from the business community. He stressed that those powers could not be suspended until the law was amended by parliament. "We may not agree with everything that the business community has demanded but discussions will continue in the coming days," said Kayani while indicating the government's resolve to withstand the pressure from the traders and business leaders. The easiest thing was that the government should have left the arrest powers in the hands of assistant commissioners but it introduced safeguards in it, said the minister of state. He added that the explanatory memorandum on budget would be issued on coming Tuesday, which should address some of their concerns. The FPCCI president said that the business community wanted to resolve the issue through negotiations but other participants of the meeting threatened to go on strike from July 19 if those powers were not withdrawn. Kayani said that there were many businesses that did formal transactions but there were others that dealt in cash and those should not be rewarded. According to new Section 21S and Q of the Income Tax Ordinance, 50% of the expenditure claimed in respect of sales, where the taxpayer received payment exceeding Rs200,000 otherwise than through a banking channel or digital means against a single invoice containing one or more than one transactions of supply of goods or provisions of services will be treated as income. Section 21(q) states that 10% of the claimed expenditure attributable to purchases made from persons who are not National Tax Number (NTN) holders shall be disallowed. These steps are taken to discourage the use of cash in business transactions. "People are extremely angry and it is getting difficult for us to control them," warned FPCCI Patron-in-Chief SM Tanveer. He said that the economy was passing through a difficult phase for the past two years and the government had chosen to harass taxpayers in the middle of this. "We do not want a strike on July 19 but the message from the government is that the FBR is the new NAB," said Sohail Altaf, a leading business leader from Rawalpindi. He warned that if the agitation began, it would be difficult for the government to reverse the negative perception. Saqib Fayyaz Chohan, another business leader, said that if the FBR did not withdraw the arrest powers and continued the implementation of e-invoicing, it would be difficult for them to move along. FBR Member Operations Hamid Ateeq Sarwar explained that those powers were only meant to be used against the people involved in tax fraud through fake sales tax invoices. He said that the adding-back income clause would also not impact return filing for tax year 2025 and any such question would be asked next year. Pakistan Vanaspati Manufacturers Association Chairman Sheikh Omar Rehan said that the FBR had deputed its staff in ghee factories that paid taxes at the import stage, urging them to withdraw the officers immediately. Sardar Tahir Iqbal, a representative of the real estate sector, said that the Capital Development Authority (CDA) chairman violated the prime minister's instructions and increased transfer fee charges from Rs250 per yard to 3% of the property value. He said that this single increase denied the benefit of reduction in withholding tax rates for the buyers of properties. Ajmal Baloch, who claimed that he had support of 12.5 million traders, threatened to go on strike if the powers to arrest and add-back income were not withdrawn immediately.
