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Business Recorder
2 days ago
- Business
- Business Recorder
KCCI praises faceless customs assessment system
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani has said that only those individuals who are engaged in mis-declaration, under-invoicing, or other malpractices have faced difficulties under the new system. For the vast majority of compliant importers and exporters, the FCA has made processes faster, simpler, and more transparent; hence, all types of rumours circulating about the rollback of this system must be fully discouraged.' While strongly praising the performance of the Faceless Customs Assessment (FCA) system and calling for its immediate implementation across the country, Bilwani commended the Federal Board of Revenue (FBR) and Pakistan Customs for launching the FCA system in Karachi, which he described as a model of effective reform that has brought far-reaching benefits to the business community. The system, which leverages Information Technology (IT) and Artificial Intelligence (AI) to eliminate physical interaction in customs assessment, has drastically curtailed corruption, enhanced transparency, reduced losses on account of demurrage & detention and restored confidence among genuine traders. He noted that the introduction of FCA has significantly improved the efficiency of customs operations by expediting clearance times and simplifying documentation. With reduced dependence on clearing agents and elimination of discretionary powers, businesses now experience faster processing, fewer delays, and greater predictability in their import-export operations. The adoption of self-clearance by a growing number of traders has led to a considerable reduction in their cost of doing business, empowering them to manage their shipments independently through a digital interface. Bilwani emphasised that one of the most commendable achievements of the FCA system is the minimisation, almost complete elimination of physical visits to Customs House. This not only saves valuable time and operational resources but also reduces the opportunities for malpractices historically associated with manual assessment systems. As a result, legitimate businesses are finally operating in a more secure and equitable environment. Highlighting the success of the Karachi rollout, he stressed the need for swift nationwide replication. 'The outstanding results in Karachi clearly demonstrate that Pakistan's trade infrastructure can be modernised when technology is implemented with integrity and vision. There is no reason to delay its expansion to other cities and ports.' He further urged the government and relevant authorities to introduce similar IT and AI-enabled systems in all other departments linked with trade, taxation, and regulatory approvals. By reducing human involvement, he stated, the government can eliminate the root causes of corruption and inefficiency across the board. He also called for full digitisation of the entire trade process, from documentation and submission to assessment, approvals, and final clearance so that the entire ecosystem functions with greater transparency, accountability, and speed. Jawed Bilwani also appreciated the Customs officials in Karachi for their commitment to ensuring the success of the FCA system. He reiterated KCCI's full support for all initiatives that aim to simplify trade, reduce bureaucratic hurdles, and foster an environment conducive to fair and transparent business practices. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
‘EFS scheme a must for export-led growth, trade balance improvement'
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Jawed Bilwani, while highlighting the crucial role played by the Export Finance Scheme (EFS) in sustaining Pakistan's exports said the EFS scheme is imperative to ensure continued export-led growth and trade balance improvement. He emphasised that the said scheme must continue in its original status and position prior to Federal Budget 2025-26 with reinstatement of local purchases under Section 880 (1)(b) of SRO 957(I)/2021 for acquisition of input goods (to allow local input goods liable to sales tax shall be supplied against zero-rated invoices) to ensure liquidity, competitiveness, and formalisation across the entire value chain as already recommended by the inter-ministerial committee headed by the federal minister for planning constituted by the prime minister. 'Despite contending with the highest regional costs of electricity, gas, water, and interest rates, Pakistan's exports have shown remarkable resilience, a feat largely attributable to the support provided by the EFS. Preserving and enhancing this scheme is essential for maintaining our export competitiveness,' he added. He highlighted the EFS was strategically developed through broad-based consultation with stakeholders to simplify and streamline export procedures, enabling a more progressive and accessible export environment. It consolidated all previous schemes under one umbrella, minimized documentation requirements, and facilitated ease of doing business through a fully automated system integrated with WeBOC and Pakistan Single Window (PSW). The scheme included real-time audits and end-to-end traceability to regulate compliance costs and ensure transparency. Bilwani added the EFS has played a crucial role in easing liquidity pressures for exporters, particularly in the value-added textile and apparel sector, where access to input goods is vital for sustaining production and delivery timelines. The import of specialized yarns and fabrics under EFS has been particularly instrumental in enabling exporters to meet international quality standards. 'Much of the quality yarn and fabric used by Pakistan's apparel exporters is not produced domestically, and the local alternatives, where available, are often of lower quality and higher cost,' Bilwani explained. 'The garments manufacturers using imported yarn are of superior quality, giving our exporters a competitive edge in global markets.' The value-added apparel sector, he noted, achieves up to 70 percent value addition on export goods and requires uninterrupted access to high-quality raw materials. 'Countries like Bangladesh and Vietnam are completely reliant on imported raw materials for their export-oriented textile sectors, and their success is proof of the effectiveness of such models when supported by robust facilitation mechanisms,' he added. President Bilwani warned, however, that policy changes announced in the last federal budget, particularly the removal of zero-rating for local supplies, have disrupted the balance between imported and local raw materials. 'Currently, while imported raw materials are tax-exempt, local inputs are subject to an 18% sales tax with delayed and costly refunds,' he said. 'This creates a structural imbalance, discouraging local sourcing and impacting domestic SMEs across the value chain.' In view of the IMF's reservations about restoring full zero-rating, Bilwani proposed a pragmatic middle path, such as adopting a negative list to restrict high-risk imports under EFS, while preserving the broader scheme's facilitative framework. To further strengthen EFS, Bilwani reiterated the proposal for real-time audits and digital monitoring to reduce processing delays, enhance transparency, and ensure the scheme's credibility. 'If implemented effectively, the EFS has the potential to become a strategic pillar in eliminating Pakistan's trade deficit and ensuring long-term export sustainability,' he concluded. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
KCCI expresses concern over closure of highway at Moro
KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Jawed Bilwani has expresses deep concern over the highway being blocked once again in Sindh from Tuesday at Moro, Kundiaro, Naushahro Feroze. The trading community has not yet recovered from the losses caused by the recent sit-ins and protests at Bablu said Jawed Bilwani. The economy suffered heavy losses due to the 13-day highway closure in Bablu after a four-day strike, he said. President Karachi Chamber said, if the current closure of the national highway continues for even a week, it will take several months to clear the backlog. The Sindh government should intervene immediately and resolve the issue so that the movement of remittances can be restored. Copyright Business Recorder, 2025
Business Recorder
09-05-2025
- Business
- Business Recorder
SAPM says issues facing KCCI to be resolved
ISLAMABAD: Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan has assured the Karachi Chamber of Commerce and Industry (KCCI) of addressing all their concerns. The SAPM assured this to the members of the KCCI during a virtual meeting aimed to address several pressing issues concerning Karachi's industrial sector, including electricity supply, water provision, rising gas levies, tax collection problems, and the challenges faced by exporters. The committees were set up following the prime minister's directives to ensure a focused and systematic approach to resolving the concerns of local chambers and industrialists. 'The goal is to resolve all the issues that are hindering the growth of our industries,' said Haroon Akhtar Khan. In line with the Prime Minister's vision, Haroon Akhtar Khan reiterated the urgency of boosting industrial growth across Pakistan. He highlighted that the ongoing tariff war presents a unique opportunity for Pakistani industries to compete globally. 'The Prime Minister has directed us to revive local industries and significantly enhance exports,' he added. A significant update came from the Special Assistant, who reported that due to the prime minister's efforts, the policy rate has been reduced to 11 per cent, a move expected to ease the financial burden on businesses. However, Shawal Malik from KCCI pointed out a critical challenge—the aging and deteriorating electricity infrastructure in Karachi, which is leading to increased production costs for local businesses. Despite these challenges, Special Assistant Haroon Akhtar Khan reassured the KCCI that the government is fully committed to resolving these issues and supporting Karachi's industrial sector. This meeting marks a crucial step toward the government's ongoing efforts to ensure the growth and competitiveness of Pakistani industries. Copyright Business Recorder, 2025
Express Tribune
08-05-2025
- Business
- Express Tribune
Business community condemns Indian aggression
The business and industrial community of Karachi has expressed complete solidarity and unwavering support for the government and armed forces of Pakistan following the recent unprovoked and cowardly missile strikes by India targeting civilian areas in Pakistani territory. The Karachi Chamber of Commerce and Industry (KCCI) and various industrial town associations strongly condemned the blatant act of aggression, which resulted in the loss of innocent civilian lives and damage to public infrastructure. Chairman Business Management Group (BMG) Zubair Motiwala said that Pakistan is a peace-loving country, but will defend itself with full force when its sovereignty and citizens are attacked. He declared unwavering support for the armed forces, saluting their professionalism and courage. Motiwala called upon the business community to set aside differences and stand together for national defence. President KCCI Muhammad Jawed Bilwani appealed to the international community to take immediate action to de-escalate tensions and hold India accountable for targeting civilians. He emphasised that Pakistan's armed forces have shown strategic restraint but will respond decisively to aggression. Bilwani praised the sacrifices of martyrs and the resilience of soldiers, saying that every attack unites Pakistanis further. The business community declared unshakable loyalty to Pakistan's sovereignty, support for the government's policies, and absolute trust in the armed forces' preparedness and professionalism. They rejected Indian aggression and pledged to contribute resources and influence to support national preparedness.
