Acting President of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Sheikh Khalid Tawab has expressed his great concern over the news of shifting of Trade Development Authority of Pakistan (TDAP) Head Office from Karachi to Islamabad. He said that it would create unrest amongst the FPCCI members' trade bodies that have strongly condemned the proposed decision and supported the FPCCI instance to do away with the proposed move to shift the TDAP Head Office from Karachi.
The Acting President of FPCCI argued that it would add woes to the manufacturers and exporters. He said that Pakistan's exports are showing a declining trend due to a variety of reasons such as slump in global market even in the wake of granting GSP Plus status to Pakistan; erosion of competitive edge of indigenous products against the foreign goods in the international market mainly due to highest cost of exports; inordinate delay/non-payments of sales tax refund claims within stipulated time etc.
He said that the decision would serve as a catalyst to further decline the exports. Therefore, in this backdrop, the FPCCI Acting Chief suggested not to take such unnecessary and drastic decision. The FPCCI Acting Chief argued that Karachi is the financial and commercial capital of Pakistan in line with its status as a major port and the country's largest metropolis; it generates a lion's share of more than half of the total collection of the Federal Board of Revenue (FBR) out of which approximately 50 per cent are from customs duty and sales tax on imports. In addition to it, he added, "Karachi produces about 30 per cent of value-added in large scale manufacturing (LSM); contributes 20 per cent of GDP and shares 70 per cent of the revenue of Pakistan". That is why the World Bank identified Karachi as the most business-friendly city in Pakistan and as per finding of the research conducted by the Global Human Resources Company, "Mercer", Karachi is the most inexpensive city in the world. Moreover, most of the exhibitors are also situated in Karachi and there is also an Expo Centre in Karachi to showcase their products and promote exports.
He added that it would create lack of co-ordination and interaction between the private sector enterprises and TDAP. He informed that Karachi is situated at a most strategic location of the gate-way to Middle Eastern and European countries, and as such is considered as a most lucrative city for the foreign and local investment.-PR