Rajab 14, 1429
July 18, 2008
A delegation of Businessmen from across the country met Finance Minister Mr. Naveed Qamar at his office in Islamabad.
Invitation to meeting was extended to KCCI by Finance Minister while meeting Business community at Chief Minister’s House, Karachi.
Delegation comprising Mr. Shamim Ahmed Shamsi, President, KCCI, Mr. Zubair Motiwala, Former President, KCCI, Mr. Nisar Shekhani, Chairman, SITE Association of Trade & Industry, Mr. Jawaid Bilwani, Chairman, Pakistan Hosiery Manufacturers Association, Mr. Muzammil Hussain, Chairman GST, KCCI from Karachi, President Faisalabad Chamber, Khawaja Asem Khurshsid, President Lahore Chamber, Mr. Mohammad Ali Mian, President Sarhad Chamber, Haji Muhammad Asif, President Sialkot Chamber, Dr. Khurram A. Khawaja, President Islamabad Chamber, Mr. Muhammad Ijaz Abbasi, President Rawlapindi Chamber, Mr. Abdul Rauf Ch. & Chairmen of Sizing Association ,Power loom Association, Exporters Association, PHMA, APTMA, TMA and SITE Association and other leading businessmen from across the country participated.
Meeting lasted for more than four hours and issue of Gas Price Hike was at the top of the Agenda. Mr. Zubair Motiwala gave a presentation on Gas, apprising the Minister ways and means on how to arrest the recent hike. He apprised the Minister about the current state of competitiveness of industry in general and textile industry in particular and that Textile has not been able to achieve the target, only because of the reason of inability to compete in the world market due to increase in the cost of inputs and gas being a basic raw material of value added sector and 30 to 40% of the cost of wet Textile Sector, the main component of value added sector.
He apprised the minister about the anomalies in determining the tariff of the gas. He claimed that restructuring of well head, the gas hike can be taken back if steps are taken such as tariff mechanism, re negotiation with well owners, specially with Kadrpur and Kadenward, not allowing increase to wholly owned Government companies (which are 45% Re looking into the expenses by two gas distribution companies. Re looking into the return on their fixed assets after the expiry of convent, doing away with excise duties, doing away with cross subsidy being given to domestic and fertilizer by arranging the same through budgetary allocation and over and above most crucial aspect to re-interduce capping system of 12 US dollars and 36 US dollars.
He also cautioned the minister that in current circumstances where world oil price ware sky rocketing, we need to chalk out tariff of gas for next two years and industry must know what would be the tariff after every six months.
Minister agreed with every point and commented that there are crises time, and we should do every thing possible to keep the cost of manufacturing at the minimum level to make the industry viable in the world market and to enhance export. He said Government of Pakistan has no right to make money, when it is not subsidizing. He categorically declared that he will sit with experts from OGRA/Ministry and concerned people in government with open mind, and with intention to reduce the tariff in light of proposals given. He promised to hold another round of talks, if necessary within a week. He was optimistic about the reduction in tariff which was discussed at length.
Mr. Jawaid Bilwani and Asim Khursheed Khawaja briefed the issue of R&D and participant unanimously demanded, one rate across the board they also demanded that rate for fabric at 3%, Home textile 5% and 6% and garment & apparel at 9%.
Minister told the participants of good news within a day or two.
Mr. Muzammil Hussain brought up the issue of 10% withholding tax on power bills and it was discussed at length. Also 3.5% withholding tax extended to AOP was debarred as well as matter of tariff of WAPDA/KESC with regard to B1 and B3 tariff were also discussed.
Minister formed a committee to prepare recommendation to meet Chairman FBR, for which he will issue the directives to concerned departments.
Mr. Nisar Sheikhani apprised the minister of the unfortunate affairs in KESC with regard to non-availability of power, denial by WAPDA of the historical supply to KESC, right of KESC on hydel power and host of other issues. Minister promised to look in the matter seriously for permanent solution.
Mr. Shamim Ahmed Shamsi, President, KCCI brought the subject of 35% L/C margin. The minister assured that as soon as the fiscal space is available, this matter will be resolved. Mr. Shamsi also brought up the issues relating to Labour laws: it was also discussed at length and minister emphasized upon tri partite meeting to bring changes as an out-come of these meetings.