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Business Recorder
a day ago
- Business
- Business Recorder
LCCI demands cut in DC rates, curbs on sealing of industries
LAHORE: The Lahore Chamber of Commerce and Industry has raised serious concerns about the plight of industrial units operating in Saggian Lahore and surrounding areas under the jurisdiction of Ravi Urban Development Authority (RUDA). In an emergency meeting held at LCCI, industrialists unanimously appealed to Punjab Chief Minister Maryam Nawaz to take immediate notice of the crisis. LCCI Acting President Engneer Khalid Usman, former LCCI President Muhammad Ali Mian, Convener of Standing Committee Ali Sheraz, Zafar iqbal, Akram dewan, Muhammad Ameen, Muhammad Hanan, Muhammad Yonus, Tanveer Hussain, Muhammad Adeel and Advocate M Waqar also spoke on the occasion. Engineer Khalid Usman and Muhammad Ali Mian highlighted that major issue is imposition of DC rate that is 10 times higher than standard rates in the jurisdiction of RUDA. They said that over 1,000 industrial units, ranging from small workshops to large factories, are facing existential threats due to these inflated charges. Usman emphasized that these industries employ more than 10,000 workers directly and support thousands of families indirectly. If RUDA continues with this unfair taxation, we will see massive job losses and industrial collapse. While painting a grim picture of the potential consequences, they said that forcing industries to pay unaffordable DC rates will lead to shut downs. When factories close, workers lose livelihoods, and that creates social unrest and law-and-order problems. They demanded immediate reduction in DC rates to reasonable levels, restriction on sealing or eviction of industrial units and consultation with stakeholders before finalizing new rates. Participants of the meeting said that industrialists have pinned their hopes on CM Maryam Nawaz's intervention. 'We believe the Chief Minister, who has prioritized economic development, will understand our plight and take necessary action. They warned that destabilizing this industrial hub could have ripple effects across Punjab's economy. These industries feed into larger supply chains. Copyright Business Recorder, 2025
Business Recorder
24-05-2025
- Business
- Business Recorder
LCCI says optimistic about govt's response to budget proposals
LAHORE: The Lahore Chamber of Commerce and Industry has expressed optimism the federal government would incorporate its recommendations into the upcoming budget to stimulate economic growth and industrial development. LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman and Vice President Shahid Nazir Chaudhry said that the recommendations for Federal Budget 2025-26 have already been forwarded to the government and concerned departments. They hoped that these recommendations would be given due consideration to address the country's pressing economic challenges. The LCCI's budget proposals come at a time when Pakistan's economy shows signs of gradual recovery, with GDP growth improving from 0.21% in 2022-23 to 2.38% in 2023-24. The current account deficit has also narrowed significantly, dropping from $3.27 billion to $1.69 billion with a surplus of $1.2 billion recorded in the first half of the current fiscal year. 'Despite these positive indicators, the economy remains vulnerable due to stagnant industrial growth, soaring public debt exceeding Rs 70 trillion and a persistent trade deficit of $24 billion in 2023-24. The industrial sector, a critical driver of economic activity, expanded by a mere 1.21%, while large-scale manufacturing saw negligible growth of 0.07%, underscoring the need for urgent policy interventions', the LCCI office-bearers added. To address these challenges, the LCCI has proposed a series of strategic measures. On the tariff front, the LCCI advocates for a cascading duty structure, with raw materials taxed at 0%, intermediate goods at 5-8% and finished products at 18% to encourage local value addition. It also calls for duty-free imports of wastewater treatment plants to help industries meet environmental standards and maintain export competitiveness. Additionally, the LCCI stresses the importance of protecting the local pharmaceutical industry by maintaining tariff shields on 22 essential active pharmaceutical ingredients (APIs) to reduce import dependency and ensure health security. In terms of policy reforms, the LCCI has stressed the need for reducing the policy interest rate to 6% to lower borrowing costs and stimulate private-sector investment. The LCCI has also recommended regionally competitive energy tariffs to align Pakistan's industrial costs with those of neighboring countries like India and Bangladesh. Other key proposals included reinstating the Final Tax Regime for exporters to simplify compliance, introducing a fixed tax regime for traders to broaden the tax base and capping individual and association taxes at 29% to prevent brain drain and encourage documentation. The LCCI has also highlighted the importance of promoting electric vehicle adoption, starting with public transport and two-wheelers alongside incentives for local EV manufacturing. Procedural improvements form another critical component of the LCCI's recommendations. The LCCI has called for the full digitization of the Federal Board of Revenue to minimise human intervention and curb corruption. It has also urged the government to expedite tax refunds, particularly for exporters, by ensuring that the FASTER system processes refunds within 72 hours, with compensation for delays. The LCCI has further proposed abolishing the Sindh Infrastructure Development Cess for exporters, automating sales tax filings and extending audit cycles to five years to reduce harassment of compliant businesses. Sector-specific recommendations included measures to support the IT and freelancing industry, such as allowing foreign exchange accounts and offering rebates to IT exporters to counter capital flight. In agriculture, the LCCI has advocated for a progressive income tax on large landholdings while exempting small farmers. The real estate sector has been advised to align property valuations with market rates to document hidden wealth, while the textile industry has been recommended for the reinstatement of the Drawback of Local Taxes and Levies scheme and an increase in duty drawbacks to 3%. LCCI President Mian Abuzar Shad has also stressed the need for broader macroeconomic reforms, including the privatisation of loss-making state-owned enterprises (SOEs) to reduce fiscal burdens, curbing non-essential government expenditures and cracking down on smuggling networks that cost the economy billions annually. Engineer Khalid Usman that the proposals are designed to foster growth through equity, efficiency and ease of doing business, calling for decisive government action to address debt, expand the tax net and boost exports. Vice President Shahid Nazir Chaudhry said that Pakistan's economic survival hinges on industrialisation and stable, long-term policies rather than ad hoc measures. Copyright Business Recorder, 2025
Express Tribune
21-05-2025
- Business
- Express Tribune
Businessmen oppose tariff rationalisation
Listen to article The Lahore Chamber of Commerce and Industry (LCCI) has strongly opposed proposed changes under the draft National Tariff Policy 2025-30 presented by the Engineering Development Board. Terming the measures anti-industry, LCCI President Mian Abuzar Shad warned that the new policy could have serious repercussions for Pakistan's industrial base, trade balance and economic sovereignty. "While reforming the tariff regime is important, the current proposal is likely to increase Pakistan's reliance on imports, shifting the country further away from a manufacturing-driven economy," he said, according to a statement issued on Tuesday. Shad was of the view that following a substantial reduction in import duties and the elimination of additional customs duty and regulatory duty, the government risked turning Pakistan into an import-dependent economy. He cautioned that lower tariffs would spark a surge in imports, thereby putting immense pressure on the current account and foreign exchange reserves, which were already under stress. "Pakistan cannot afford such liberalisation at the cost of macroeconomic stability," he emphasised. The LCCI chief criticised the proposed tariff spread of 0% to 15% as too narrow to reflect the development needs of a diverse industrial landscape. "Even globally competitive and specialised economies such as China maintain a much wider tariff spread to protect sensitive sectors. This narrow spread will blur the line between manufacturers and importers, discouraging local production," he elaborated. Shad underscored that such changes would cause revenue loss to the government while exacerbating the public debt burden. "The expected drop in customs revenue will need to be compensated through indirect taxes or further borrowing, both of which will hurt the economy." Pointing to the already high cost of doing business, the LCCI president stressed that the move would further impede industrial growth. "Our industries are already burdened by high energy tariffs, inefficient labour markets and a complex tax regime. These tariff cuts could lead to shutdowns and job losses." He urged the government to reconsider the premature rationalisation and engage in meaningful consultation with industry stakeholders to develop a tariff structure that could support both industrialisation and exports.
Business Recorder
15-05-2025
- Business
- Business Recorder
e-Visa facility for Pakistanis soon: Bangladeshi HC
LAHORE: High Commissioner of Bangladesh Muhammad Iqbal Hussain Khan has said that Bangladesh has recently simplified visa requirements for Pakistani citizens to encourage bilateral trade and cultural exchanges. He said that work is also under way to introduce an e-visa facility for Pakistani nationals in the near future. During his visit to the Lahore Chamber of Commerce and Industry (LCCI), the High Commissioner highlighted the importance of regular business delegation exchanges to explore new opportunities and deepen market understanding between the two countries. LCCI Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry and Honorary Consul General of Bangladesh Qazi Humayun Fareed also addressed the session and pledged to further deepen economic and commercial relations between the two nations. LCCI Executive Committee Members Waqas Aslam, Syed Hassan Raza, Shouban Akhter, Firdous Nisar, Ahad Amin Malik, Asif Malik, Ahsan Shahid and Asif Khan were also present. Highlighting Bangladesh's interest in expanding economic ties, the High Commissioner mentioned potential trade sectors including coconut and coal from Bangladesh and leather, meat, rice, sugar, fish and coal from Pakistan. He further disclosed that direct flights and shipping routes between the two countries are being considered to boost trade connectivity. LCCI President Mian Abuzar Shad, welcoming the envoy, said that Pakistan and Bangladesh, being the largest economies in SAARC after India, should utilise regional trade opportunities for mutual benefit. He said that Bangladesh's GDP has reached $437 billion while Pakistan's GDP stands at $373 billion. It is time we join hands to maximize trade potential,' he added. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Economic activities: Inclusion of minorities may help achieve economic stability target
LAHORE: Punjab Minister for Minorities Affairs, Sardar Ramesh Singh Arora has said that inclusion of the minorities in economic activities could help achieve target of economic stability in shortest possible time. He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former Senior Vice President Ali Hussam Asghar and Convener of the Standing Committee on Human Rights for Minorities Saleem Shakir also spoke on the occasion. The visit was marked by a shared commitment to promoting interfaith harmony, minority empowerment and economic inclusiveness across the business landscape of Punjab. In his address, Sardar Ramesh Singh Arora said that minorities are vital stakeholders in Pakistan's development and must be included in all spheres of national life, especially economic policymaking and enterprise growth. 'The government believes in complete inclusion of minority communities in the economic mainstream. The time has come to provide targeted facilities and remove structural hurdles that hold back minority entrepreneurs', he added. He further praised the minority-friendly policies of Punjab Chief Minister Maryam Nawaz and highlighted her vision of an inclusive and tolerant society. He said that the inclusive policies of Chief Minister Maryam Nawaz are reflective of Jinnah's Pakistan. Under one flag, we are united. Our Constitution gives minorities their rights and it is our duty to turn those words into action. He also paid tribute to the Sikh community worldwide for their unshakable support for Pakistan and lauded the role of Pakistan's armed forces in defending the rights of every citizen, regardless of religion or ethnicity. LCCI President Mian Abuzar Shad, in his welcome remarks, expressed his pride in the Lahore Chamber's diverse and inclusive membership, which includes a significant number of Christian and Sikh businesspersons. He said that the minorities have played an outstanding role in development of Pakistan 'It gives me great pride to say that the Lahore Chamber has always stood for the protection of human rights and equal economic opportunities for all citizens. Our Sikh and Christian members are actively contributing to the economic and social progress of Pakistan,' Mian Abuzar Shad added. He said that we appreciate the Government of Punjab for entrusting you with the important portfolio of Minority Affairs. The Minister's role in promoting interfaith harmony across the province is commendable. He assured LCCI's full support in any initiative that promotes peace, unity and inclusive economic growth. He also shared a comprehensive roadmap of the Standing Committee with the minister. The roadmap aims to illustrate how LCCI can play an effective role in interfaith harmony, human rights protection and the economic empowerment of minorities. During the session, participants paid rich tributes to Ramesh Singh Arora for his unwavering services toward interfaith peace building, social cohesion and policy advocacy for minority rights. The LCCI Vice President Shahid Nazir Chaudhry said that the business community and government should work together to uplift all segments of society, especially those that have been historically marginalized. The participants also made a human chain to expressed solidarity with the Pakistan's Armed Forces. Copyright Business Recorder, 2025
