Day: June 7, 2023

The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the Government to incentivize foreign remittances in the form of tax rebates.

This step will not only increase foreign exchange reserves but also help in stabilizing the Pakistani Rupee (PKR). It was proposed that if an overseas Pakistani wants to purchase a vehicle or electronic goods, a 10 percent rebate in taxes and duties against foreign remittance should be given. A 50 percent discount in registration/taxes shall be offered to overseas Pakistanis in the purchase of property, which will attract more foreign remittances.

All the auto manufacturers should use each other’s locally produced auto parts; this initiative will not only allow the parts to be produced locally but also increase the sales of the vehicles. These views were expressed in a meeting held on the budget proposals under the chairmanship of Rawalpindi Chamber of Commerce President Saqib Rafiq and Group Leader Sohail Altaf at chamber house Rawalpindi.

The budget proposals prepared by the Rawalpindi Chamber were discussed in detail and representatives from the different trade associations shared their views and suggestions.

It was demanded that immediate steps should be taken to promote the industry. The liberalization of the economy is the need of the hour, said Saqib Rafiq who added that it is high time to put a check on government intervention and promote market-oriented policies. The availability of land on a lease can reduce capital investment for the industry.

Establishment of One Window operations for industry facilitation such as NOC, License, etc will attract more investments in the industry, he added.

Saqib Rafiq also proposed that the “One District One Product” (ODOP) model can be replicated in Pakistan to promote traditional industries and crafts in each district of the Provinces, with the objective of enhancing local entrepreneurship, generating employment, and boosting the overall economy. Chambers can identify and recommend in the identification of potential products and sectors, he added.

The speakers also suggested that GST be brought down to single digit or considered full and final tax adjustment and income tax slabs to be rationalized.

Source: Pro Pakistani

Fruit farmers in Punjab, Khyber Pakhtunkhwa, and Gilgit Baltistan are grappling with the severe consequences of a 50 percent decline in fruit-pulp procurement by pulping companies and juice manufacturers.

This significant drop in demand is primarily attributed to the imposition of a 10 percent federal excise duty (FED) in the supplementary budget of February 2023. The repercussions are adversely affecting the rural economy, hindering its formalization, and causing farmers to bear the brunt of wastage.

According to existing industry data, in 2022, an estimated 100,000 tons of mangoes and various other fruits were procured from local farmers to convert them into pulp. However, following the implementation of the FED in 2023, the projected fruit pulp purchase volume has plummeted from around 61,000 tons to 31,500 tons, representing a significant 50% decline.

This downturn is having a detrimental impact on the rural economy and impeding its development while also causing farmers to suffer from wastage.

Additionally, the formal packaged juice industry has experienced a substantial 45% decline in volumes during March and April 2023 as a direct result of the 10% FED on juices implemented in February 2023 through the Supplementary Budget.

This has led to a contraction in the industry’s size, resulting in unfavourable consequences for sales tax revenue. Prior to March 2023, the formal packaged juice industry contributed approximately Rs16 billion in tax revenues, but these circumstances are adversely affecting its revenue generation.

Moreover, the shrinking business size within the industry will likely contribute to increased unemployment. The FED imposition has prevented the industry from utilizing its full production capacity, discouraging any new investments in the foreseeable future (2023-2024).

It is important to note that the formal packaged juice industry, which typically contributes around Rs16 billion in tax revenues, is facing adverse effects due to these circumstances.

Farmers like Jabbar Tatypur, a local mango farmer in Multan, managing mango production in Rajanpur, Jhang, and Khanewal on over 1700 acres of farmland, are constrained to sell their surplus produce in the open market due to the decline in pulp purchase by pulping companies and juice manufacturers.

This exposes them to constant fluctuation in prices. Similar issues are faced by farmers growing other fruits, such as apples in Gilgit. Muhammad Esa, who owns a small farmland in Rakaposhi and primarily produces apples and cherries, shares the same concerns.

The perishable nature of fruits, coupled with inadequate handling, storage, packaging, and transportation practices, contributes to high rates of wastage. This compels farmers to sell their produce at low prices, particularly during peak seasons, further exacerbating their financial burden. Commission agents who serve as intermediaries in the buying and selling of fruits confirm this situation.

However, it is important to recognize the crucial role played by the formal packaged juice industry in reducing significant food wastage and safeguarding farmers’ livelihoods by procuring fruits in a timely manner. The industry has also been actively assisting farmers in adopting best practices, leading to their upliftment and overall development.

The formal packaged juice industry not only ensures the availability of safe and healthy fruit-based juices and drinks to consumers but also contributes to the economy with an annual turnover of approximately Rs60 billion and an investment of PKR 40 billion. It provides employment opportunities to over 5,000 individuals.

Source: Pro Pakistani

Former President Asif Ali Zardari says it is need for the hour to discuss charter of economy in the country.

He was addressing a discussion held on topic of Charter of Economy at Lahore on Wednesday.

He said economic problems can be solved by increasing exports as stable economy is must for our future generations.

He further stated that in order to increase business related activities, public private partnership should be promoted across the country.

Source: Radio Pakistan