Karachi Chamber of Commerce and Industry (KCCI) has demanded of the government not to waste time and make economic policy decisions on war footing to save the country from economic turmoil. The KCCI also urged the federal finance and commerce minister to hold meeting with KCCI within a week to discuss the issues and resolve them.
Briefing about KCCI meeting on gas, power and research and development (R&D) issues held on Wednesday, former President KCCI, Zubair Motiwala said that the meeting has welcomed government decision of continuing R&D support for garment sector and demanded that it should be extended to home textile as well. He said that the meeting also discussed issue of gas tariff and also about the meeting held with federal finance minister on the same issue.
He said that during the meeting KCCI presented a proposal how gas tariff can be reduced. The finance minister agreed with the proposal. However, no decision has yet been made in this regard.
He said that gas tariff for industrial use at 31 percent is on higher side and industry cannot sustain it. Many industrial units may go out of production rendering a very large number of people unemployed. He said that due to uncertainty about gas tariff, the industrialists cannot fix prices for exports orders.
Zubair Motiwala said that the chamber had demanded that the government must announce its decision within a week time. He said that the meeting also discussed issue of withholding tax (WHT) concession given to the large retailers.
The chamber has demanded the same concession for all retailers. The meeting also discussed monitory policy and said that the industries cannot operate at 13 percent interest rates. He said that the business community was of the opinion that tight monetary policy is a result of high borrowing by the government. The same was also admitted by the Governor State Bank of Pakistan, he added.
Speaking on the occasion, former President KCCI A Q Khalil said that the business community was hopeful that government will announce pragmatic trade policy, monitory policy and federal budget but all hopes have gone with the wind. Economic condition declining fast and it may take serious turn, he added.
Referring to Wapda note to KESC for payment of dues and on failure to clear dues it will disconnect KESC power supply, he said that the government must take notice of this issue.
He said that the chamber wants no confederation with the government. "What we want is consultation and resolving the issues on priority bases," he added. He said that the finance and commerce ministers should hold weekly meeting with representatives of business community to resolve prevailing issues. He said that finance minister and commerce minister must hold meeting with KCCI within a week to discuss issues and get them resolved.
Leader of the business community and former president KCCI Siraj Kassim Teli pointed out that 80 percent of governor State Bank of Pakistan speech was that all ills was a result of huge borrowing by three governments in a year.
He said that benefit of Rs 6000 increase in minimum wages and 20 percent increase in government official pension and pays have gone with the increase of prices of food, utilities and other essential items. In present prices structure even a single man cannot purchase food for a month in Rs 6000. He urged the government to reduce its non-development expenditures. He also criticises increase in gas tariff and said that it is an indigenous product and its tariff should be kept at reasonable level to keep wheels of industry moving.