Jamadi ul Awwal 28, 1428

June 14, 2007

Stronger Armed Forces and businesses result in a developed economy --- KCCI Chief

“The efficiency of the Army at the border and inside, Navy on the high seas, and Air Force in the skies of Pakistan enables the business community to perform in a secured environment and provides the industrialists and businessmen the impetus to strive for economic development. The business community is solidly in favor of making available financial resources to modernize and strengthen the Armed Forces.” This was stated by Majyd Aziz, President Karachi Chamber of Commerce and Industry, while making a detailed presentation to a large team from the School of Army Air Defence led by its Commandant Brig Khalid Mahmood Ahmed.

The KCCI Chief while answering a barrage of questions from the delegation dwelt on the infrastructure crisis, the ramifications of the Federal Budget, especially on the textile sector, the free trade scenario, the law and order situation, the disastrous effects of smuggling, under-invoicing, and mis-declaration on the national economy, and other issues. He said that the pathetic performance of KESC resulting in daily riots and loadshedding is a direct result of the shenanigans of Siemens which has under a designed conspiracy created this disturbing situation. He said that the KESC hierarchy has now accepted that the blame for this crisis in KESC rests on Siemens. Unfortunately there has been no accountability in this respect.

Majyd Aziz further added that the textile industry had invested nearly US$ six billion in upgradation but has not taken advantage of the free trade regime due to the imposition of duties in European Union on Pakistani products, the anti-dumping levies, the high cost of production due to exorbitant rates of utilities and bank loans, lower worker productivity since most employees do not get rest or sleep due to loadshedding in the localities all thru the night, and other external factors that are advantageous to regional competitors.

The KCCI President moreover said that the blatant misuse of Dry Ports, Afghan Transit Trade Agreement, DTRE scheme, and porous borders have destroyed the local industry, especially textiles, footwear, and plastics, etc. He said millions of meters of fabrics from India come as made in Dubai even though there is no fabric production in Dubai.

Talking about the Federal Budget, the KCCI Chief said that there are new anomalies that would impact negatively on trade and industry. He also said that the imposition of 1% Import Surcharge is a ludicrous step taken to collect revenue that would be misused in providing so-called targeted subsidies thru the Utility Stores scheme envisaged by the Finance Ministry. This mode of providing subsidized edibles is a farcical way of introducing populist measures. This is no solution whereas it is better to provide safety nets that are effective and achievable.

Brig Khalid in his closing remarks thanked the KCCI President and his colleagues for a pragmatic, sincere, and honest assessment of the economy. He appreciated the sentiments of the business community regarding the Armed Forces and pledged that each and every soldier, seaman, and pilot is alert, dedicated, and ready to protect the motherland. He applauded the social and welfare activities of KCCI and said that he was pleased to learn that the business community is involved in caring for humanity also and not just involving in business activities.