Latest news with #ZubairMotiwala
Business Recorder
3 days ago
- Business
- Business Recorder
KCCI delegation visits KPT
KARACHI: A high level, 35-member delegation of KCCI led by Chairman KCCI Zubair Motiwala and President KCCI M Javed Bilwani visited Karachi Port Trust (KPT) on the invitation of the KPT Board of Trustees with a strategic aim of boosting national trade. A briefing on facilities available at KPT was given in connection with the Export Finance Scheme initiative of KCCI and thereafter avenues of boosting national trade with efficient port operations and infrastructure development initiatives pursued by KPT came under discussion during the meeting. Copyright Business Recorder, 2025
Express Tribune
7 days ago
- Business
- Express Tribune
Businessmen reject both budgets
Listen to article After condemning both the federal and Sindh budgets for 2025-26, business leaders called for mandatory amendments before their approval. They said neither budget fulfills serious commitments nor offers direct financial relief to micro and small businesses. They demanded substantial revisions to increase allocations for Karachi-centric development projects. The prosperity of Pakistan is tied to Karachi's, they said, warning that neglecting the city amounts to sabotaging the national economy. Businessmen Group (BMG) Chairman Zubair Motiwala and Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Jawed Bilwani blasted the federal and Sindh budgets for sidestepping Karachi's needs. Condemning the budgets as deeply disappointing and discriminatory towards Karachi, the country's economic hub, they expressed serious concern over the continued neglect and denial of essential development funds to Karachi and Sindh at large. Motiwala and Bilwani warned that chronic underinvestment and token budget allocations will worsen the city's infrastructure, civic conditions, and business confidence. They stressed that Karachi contributes 67% to the national exchequer, 90% to the provincial revenue, and 54% of the country's exports. Denying it fair development funds is not just a regional injustice but a national threat, they lamented. They called on both the federal and provincial governments to revise their priorities and ensure Karachi receives its due share. The time for symbolic allocations is over. Karachi's citizens and business community now demand concrete action, adequate funding, and political will. The two leaders also highlighted underfunding of the Sukkur-Hyderabad Motorway, a key project for Sindh and Karachi's connectivity. Though the project's cost exceeds Rs400 billion, the federal budget allocates only Rs15 billion — an amount they said reflects disregard for Sindh's development priorities. Karachi, Pakistan's commercial capital, would benefit directly from the project's completion, making the lack of funding more concerning. Similarily, they pointed to the stalled K-IV Water Supply Project. Despite being critical for a water-starved Karachi, the project remains in limbo. Though top officials, including the prime minister, have repeatedly promised support, the federal government has allocated only Rs3.2 billion of the Rs150 billion needed. This minimal allocation, they said, casts doubt on the government's seriousness about solving Karachi's water crisis. KCCI leaders expressed disappointment with the Sindh Budget 2025-26, saying the provincial government has also failed to address Karachi's needs. In its development outlay, the Sindh government allocated only Rs100 million for the K-IV project and Rs15 billion for the Sukkur-Hyderabad Motorway — amounts they called meaningless for project execution. Alarmingly, they said, this marks the third year without a single new mega project for Karachi. The only move was an Rs8 billion allocation to continue earlier projects, most of which are progressing at a snail's pace. They criticised the ongoing delay in the K-IV project. Despite growing water demand, the city's main lifeline remains stalled. Meanwhile, millions of gallons are wasted and discharged into the sea, while residents and industries suffer water shortages. Federal B Area Association of Trade & Industry (FBATI) President Shaikh Muhammad Tehseen also criticised the inadequate allocations by both governments for Karachi's industrial sector, infrastructure, and water projects. The budget reflects no serious effort to resolve chronic industrial issues such as crumbling infrastructure, water scarcity, and power instability — all of which undermine productivity and investor confidence, he said. He urged both governments to revisit their budgetary decisions and allocate sufficient resources to support the revival of the industrial sector. Former president of the Hyderabad Chamber of Small Traders & Small Industry (HCSTSI), Muhammad Farooq Shaikhani, said the federal budget includes digital reforms and SME policy initiatives that sound good on paper but offer no direct financial relief for micro and small businesses. He said the new taxes on digital services and cash-on-delivery (COD) are premature and will burden small enterprises. While the Sindh budget includes funds for infrastructure and social sectors, it does not prioritise industrial zones or SME support. Both budgets, he said, focus on macroeconomic goals but ignore grassroots business sustainability. There is a clear gap between the government's documentation drive and the actual incentives offered to small traders and manufacturers. Shaikhani added that both budgets fail to create a conducive environment for small businesses. The federal budget introduces new taxes — on digital services, cash on delivery (COD), and higher withholding rates — without providing simplified schemes or financial support for small enterprises. The Sindh budget also neglects trade infrastructure and offers no tax relief or subsidies for SMEs. It fails to address the rising cost of energy and unaffordable raw materials, he said. Without practical incentives or consultations with affected sectors, both budgets appear more focused on revenue collection than on industrial or trade development, he added.
Business Recorder
14-06-2025
- Business
- Business Recorder
Karachi: business community leaders say federal, Sindh budgets are ‘discriminatory'
KARACHI: Chairman Businessmen Group (BMG) Zubair Motiwala and President Karachi Chamber of Commerce & Industry (KCCI) Muhammad Jawed Bilwani have strongly condemned the federal and Sindh budgets, describing them as deeply disappointing and discriminatory towards Karachi, the country's economic nerve centre. In a joint statement, they expressed serious concerns over the sheer neglect and repeated denial of essential development funds to Sindh including Karachi at large. They particularly highlighted the gross under-funding of the Sukkur-Hyderabad Motorway, a strategic infrastructure project vital for the economic connectivity of Sindh and Karachi. Despite the project's total cost exceeding Rs400 billion, the federal budget allocates a meagre Rs15 billion. This lacklustre allocation reflects a blatant disregard for Sindh's development priorities, especially considering that Karachi, Pakistan's commercial capital, would directly benefit from the completion of this motorway. Similarly, they drew attention to the K-IV Water Supply Project, which has been in limbo for years despite being a critical lifeline for water-starved Karachi. Despite multiple promises made at the highest level, including by the Prime Minister himself, the federal government has once again failed to demonstrate commitment to the project, allocating only Rs3.2 billion out of the total required Rs150 billion. This allocation, they noted, is not only insufficient but also raises doubts about the government's sincerity in addressing Karachi's water crisis. KCCI leaders further expressed their dismay after reviewing the Sindh budget 2025–26, noting that the provincial government, too, has failed to do justice to Karachi's needs. In the provincial development outlay, the Sindh Government has allocated a meagre Rs100 million for the K-IV project and a symbolic Rs15 billion for the Sukkur-Hyderabad Motorway. What's even more alarming is that this marks the third consecutive year in which not a single new mega development project has been announced for Karachi. The only gesture made was the allocation of Rs8 billion for the continuation of previously announced mega projects, most of which have been progressing at a snail's pace. They said that it was a matter of grave concern that the K-IV project, despite being a vital lifeline for Karachi, continues to face inexcusable delays, even as the megacity's demand for water grows exponentially with each passing day. Shockingly, millions of gallons of water are being wasted and discharged into the sea, while the people of Karachi and its industrial zones remain parched and desperate for a sustainable water supply. While appreciating the ongoing development of the new canal from Hub Dam, KCCI leaders noted that the project was originally scheduled for completion by August. With barely two months remaining, it is imperative that the government accelerates work on a war footing to ensure its timely execution. They further recalled that an additional supply of 10 MGD (Million Gallons per Day) was promised for the SITE Industrial Area, and the relevant PC-I had already been approved— a move widely welcomed by the business community. However, the promised supply remains unfulfilled, leaving industries in a continued state of uncertainty. They emphasized that such chronic underinvestment and budgetary tokenism towards Karachi will only deepen the city's infrastructure decay, worsen civic conditions, and erode business confidence. They stressed that the continuous denial of fair development funding for Karachi is not just a regional injustice but a national threat, as Karachi contributes the largest share of 67 percent revenue to the national exchequer, 90 percent to provincial kitty and 54 percent in terms of exports. They called on both the federal and provincial governments to urgently revise their priorities and ensure that Karachi receives its fair share of development funding. The time for symbolic allocations and broken promises has long passed. Concrete action, substantial funding, and political will are now required to address the growing frustration of the citizens and business community of Karachi. The prosperity of Pakistan is inextricably linked with the prosperity of Karachi, they said, adding that neglecting the megacity is akin to sabotaging the national economy. They demanded that before the approval of the federal and Sindh budgets, necessary amendments be made by significantly enhancing allocations for Karachi-centric development projects. Copyright Business Recorder, 2025
Business Recorder
11-06-2025
- Business
- Business Recorder
KCCI says budget lacks steps for economic growth
KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has criticised the federal budget 2025-26, describing it as a 'more enforcement, less progressive' budget that lacks substantial measures for economic growth. Speaking to the media after the budget announcement by Federal Finance Minister Muhammad Aurangzeb, Chairman Businessmen Group (BMG) Zubair Motiwala, alongside KCCI President Muhammad Jawed Bilwani and other industry representatives, acknowledged the budget's technical soundness but expressed concerns over its limited focus on growth-oriented policies. Motiwala highlighted a significant imbalance in the budget's approach, noting that while import-related incentives have been proposed, there are no corresponding relief measures for exports. 'This is technically a sound budget but measures for economic growth are missing in it,' he stated. The business leader criticised the budget as a 'camouflage' document, suggesting that crucial details would emerge only after implementation. He expressed disappointment that despite the federal minister's emphasis on digitalisation, FBR's strict enforcement, and revenue collection, no attention was paid to exports growth and industrialisation. 'No measures were proposed in this budget for reduction in cost of doing business and cost of production.' Chairman BMG criticised the government for setting overly ambitious goals despite the country's poor economic performance in the previous fiscal year, during which all major targets, including GDP growth and fiscal consolidation, were missed. He questioned the rationale behind increasing the targets without providing any practical explanation of how these would be achieved, especially in a fragile economic environment dominated by uncertainty, high inflation, and IMF-imposed constraints. While acknowledging positive developments such as the reduction in interest rates, current account surplus, and a $2 billion increase in foreign reserves, he criticised the government's decision to increase gas tariffs. 'Prime fuel for export sector is gas and the government is increasing the tariff instead of reducing it.' The KCCI leader expressed disappointment over the agriculture sector's poor performance, which showed a depressing growth of just 0.6 percent against the ambitious target of 13 percent. He also criticized the allocation of only Rs1000 billion for the Public Sector Development Program (PSDP) calling it woefully inadequate, particularly in light of the deteriorating state of infrastructure. 'It is surprising to see a meagre allocation of Rs2.783 billion for climate change in a country which has witnessed increased frequency of climate-related disasters,' he added. While acknowledging that the budget was presented under strict IMF conditions, he said that despite being technically compliant, it fails to address the pressing needs of Pakistan's industrial sector or its citizens. He described the budget as one that may satisfy external lenders but does not offer any practical hope for businesses or the wider population. Vice Chairman BMG Anjum Nisar underscored the importance of establishing a fair and transparent taxation system that does not rely on intimidation or arbitrary enforcement. He warned that the environment being created through the proposed fiscal measures could foster fear among businesses instead of encouraging growth. He said that Karachi remains the economic lifeline of Pakistan and deserves special attention to unlock its full potential. Rather than continuously burdening it with revenue responsibilities, the government should empower it with infrastructure investment and policy support to enable it to contribute even more to the national economy. President KCCI Muhammad Jawed Bilwani rejected the budget, stating it completely failed to offer any meaningful relief to the industrial sector or the general public. He said the government's claim of reduced inflation does not align with the realities faced by households, where electricity bills remain unaffordable and basic necessities are out of reach. He criticised the lack of measures to reduce electricity tariffs and interest rates, which are key drivers of the high cost of doing business. He emphasised that without addressing these core issues, neither industrial expansion nor job creation is possible. The high cost of energy and borrowing has severely impacted the viability of businesses, and without urgent intervention, many enterprises may not survive. Bilwani expressed concern over the government's over-reliance on remittances and IMF programs to manage the economy, calling it an unsustainable and short-sighted approach. He stressed the need to develop a conducive environment for industrial growth, which is the only way to improve key economic indicators. He also criticised the minimal allocation for long-delayed infrastructure projects like K-IV, terming it a sign of the government's disregard for Karachi's needs and its vital contribution to the national economy. Despite repeated demands from the business community, no concrete steps have been taken to broaden the tax net or introduce structural economic reforms, which remain essential for long-term economic stability, he said, raising concerns about agricultural governance, noting that while the sector didn't perform when it was a federal subject, its transfer to provincial governments under the 18th Amendment has not yielded the expected improvements. Calling the entire budget an eye wash, Bilwani expressed frustration over the government's failure to implement serious measures for broadening the tax base, noting that the country continues to rely heavily on home remittances rather than expanding domestic revenue sources. However, not all business associations shared the KCCI's pessimistic assessment. The President of the Karachi Customs Agents Association (KCAA) termed it a 'public friendly budget,' welcoming its potential to provide relief to common citizens, particularly the salaried class. The KCAA president also praised the government's decision to reduce overall customs tariffs to rational levels over the next five years, describing the budget as 'so far so good.' Meanwhile, Mashood Khan, an expert of auto sector said that the FM's budget speech closely mirrors the IMF's recommendations. The downward trend in additional customs duty, regulatory duty and customs duty will likely hit local manufacturing instead of exports in the future, foreseeing severe consequences for our local manufacturing industry. He said that the auto parts and other manufacturing sectors would face significant challenges, urging FM to revisit the budget before seeking approval from the National Assembly. Copyright Business Recorder, 2025
Express Tribune
10-06-2025
- Business
- Express Tribune
Businessmen air concern over budget measures
Listen to article Reacting to the federal budget for fiscal year 2025-26, business leaders and industrialists raised concerns, citing increased burden on taxpayers and the lack of incentives for economic growth. Businessmen Group (BMG) Chairman Zubair Motiwala, while calling it a "camouflage budget," expressed serious reservations about its unrealistic targets and the absence of any meaningful relief for the business community or the common man. The budget includes various announcements related to digitalisation and promoting the cashless economy. These measures alone are insufficient for stimulating exports or driving industrialisation, which are critical for sustainable economic growth, he stated. Addressing a press conference at the Karachi Chamber of Commerce and Industry (KCCI) after the finance minister's budget speech on Tuesday, he criticised the government for setting overly ambitious goals despite the country's poor economic performance in the previous fiscal year, during which all major targets, including GDP growth and fiscal consolidation, were missed. Motiwala questioned the rationale behind increasing targets without providing any practical explanation regarding how these would be achieved, especially in a fragile economic environment dominated by uncertainty, high inflation and the IMF-imposed constraints. He remarked that for achieving the elevated tax collection target, the government seems to be relying largely on extracting more revenue from the existing pool of compliant taxpayers, rather than expanding the tax base. He feared that instead of introducing meaningful reforms to bring untaxed sectors into the fold, the budget would result in increased discretionary powers for tax officials, burdening documented businesses and discouraging the economic activity. "This strategy of squeezing the formal sector could result in contraction of economic output rather than expanding it." The Overseas Investors Chamber of Commerce and Industry (OICCI) has expressed disappointment over the government's limited progress in addressing inequitable corporate tax rates in the recent budget. While a marginal reduction in super tax was acknowledged, the OICCI reiterated the need for a comprehensive overhaul of tax structures to enhance Pakistan's competitiveness and attract foreign investment. The chamber noted the absence of a meaningful reduction in government expenditure, which could have helped narrow the budget deficit. Fiscal discipline remains critical to ensuring macroeconomic stability. The OICCI urged the government to prioritise expenditure rationalisation in its budgetary measures. It regretted the missed opportunity to broaden the tax base, particularly the absence of a concrete strategy to document Pakistan's Rs9 trillion cash-based informal economy – a critical measure for meaningful revenue enhancement and economic formalisation that the chamber had consistently advocated for. Federal B Area Association of Trade and Industry President Shaikh Muhammad Tehseen commented that the federal government's announcement of the initiative to promote SMEs is a welcome move for owners of small and medium-sized businesses. He urged the government to engage relevant stakeholders and incorporate their recommendations to ensure the success of the proposed business scheme, support the export-based sector and generate jobs for the youth. According to the budget speech, on the directives of the PM, the Small and Medium Enterprises Development Authority (Smeda) has prepared a three-year business plan for 2024-27, which includes increasing SME financing, enhancing exports, building inter-industry linkages and promoting female inclusion in business. The speech also mentioned the success of the SME Risk Coverage Scheme, which generated more than Rs311 billion in assistance for over 95,000 SMEs by May 2025. The government's target is to increase SME financing to Rs1,100 billion by 2028. "The government should focus on reducing the cost of production to ensure benefits for industries, particularly through lower interest rates, utility charges and petroleum product prices, which will support the struggling SME units and attract both local and foreign investors to establish SMEs," Tehseen said. SITE Association of Industry (SAI) President Ahmed Azeem Alvi stressed the need for clearer policies, faster tax refunds and digital reforms to support exporters and industries. He said the government has recognised the need for relief within the Customs sector and intends to implement reforms. However, he noted that the full impact of these measures will only be clear once detailed budget documents are released.
