Leader of Businessmen Group (BMG) and former President, Karachi Chamber of Commerce and Industry (KCCI), Siraj Kassam Teli has urged the government to announce a economic bailout package for business and industries. He was speaking at the annual dinner of Motorcycle Spare Parts Importers and Dealers Group (MSPIDA) on Friday.
Teli said that the country is facing serious economic crisis and industrial production has sloped down due to prevailing recession in the market, while frequent power outrage and high taxes have added to this downslide. He said, The year 2009, is a difficult year and we have to gear our self up to face problems and make consolidated efforts to pass this year with minimum losses.
Further, If we manage to pass this year with minimum losses, next year would be a better for both the business and industries. He was of the view that 2008 was the year of crises, both poetical and economical. The former KCCI President said that the impact of world economic recession has started reaching Pakistan.
Beside the recession, poor government policies, higher tax rates and long hour power outrages is slowly paralysing the industries and business activities. In this present scenario, the government has no option but to announce a relief package for the industries and businesses as soon as possible.
He urged the government to resolve the issues of MSPIDA on priority basis and assured the members of MSPIDA that the chamber will include MSPIDA suggestion in its budget proposals for the year 2009-10. The BMG leader further advised Police-Chamber Liaison Committee (PCLC) to monitor the use of mobiles and motorcycles donated by the chamber for police patrolling in the city, as these vehicles were not meant for personal use, he added.
The President, KCCI, Anjum Nisar alleged that dry ports in the country have become smuggling and under invoicing points and suggested that custom clearance should only be carried out at seaports and dry ports should be used for import of raw materials and exports. He was of the opinion that country suffered huge losses due to privatisation of the KESC, which generate two third of the total revenue, while industries of this city have been made to sustain losses owning to continuous long hours power outages, he added. If the city has the regular supply of electricity, we might not suffer the loss of Rs 1.5 billion, he added.
The KCCI president announced to donate two more motorcycles for police patrolling in motorcycles spare parts market. He assured the members of MSPIDA that chamber would make efforts to get their problems resolved on priority basis. The President, MSPIDA, M Rehan Hanif said that there is a total of 80percent taxes on motorcycles import, which is an incentive for smugglers. He said due to huge smuggling of motorcycles, legal importers of spare parts are considering to switch to some other businesses.
Hanif said importers of motorcycles spare parts are paying 35 percent custom duty, 15 percent additional duty, 16 percent sales tax, 2 percent income tax besides other levies and taxes. He urged the Advisor to Prime Minister on Finance to reduce custom duty from 35 percent to 20 percent Finally, he urged the Nazim, City District Government Karachi to construct a pedestrian bridge near Radio Pakistan.
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