Tag Archives: S.I.T.E. Association of Industry

SITE President criticizes devaluation

Karachi, October 11, 2018 (PPI-OT): Mr. Saleem Parekh, President, SITE Association of Industry, Karachi, while commenting on the recent massive rupee devaluation by the Government of Pakistan, has said that in spite of the fact that we are in the free-fall basket of currencies, yet the currency is controlled by government through State Bank or directly through Finance Ministry. If we are to act as per free-fall basket of currency, then we have to see that it has to fluctuate as and when the rupee appreciates or depreciates. In this manner fashion, when we do a massive devaluation of 8-9 rupees, it really disturbs the entire system and the inflation goes just unbounded and no strings can be attached to control the inflation in the local market.

He said that the industries are effected in the most severe manner as the raw materials suddenly becomes very expensive. Industries have contracts of sales locally and international for 6 months and sometimes they are even of more than 6 months. So there is remote possibility that one can get a price hike specially in the international market where you are covered under agreements with the buyers. To have this kind of a blow where the cost increases by 10 to 15 pc, is a nightmare for the manufacturing sector.

Due to high hopes of the industrial sector especially exporters towards the sympathetic approach of the government to boost exports, many exporters have already booked latest textile machinery to take advantage of government’s positive policy towards exports but after massive devaluation, cost of machinery will be unbearable and that will slow down the BMR process.

He further commented that even for the export sector, it would be a big setback. Other than natural cotton based commodities, all other commodities are 70 pc import-based. The imports would become expensive. The input would become expensive and the industry would again suffer and this 30 pc would not serve the purpose. On the other hand, hearing the news of depreciation of rupee and appreciation of dollar, the buyers immediately float the idea of reducing the price which actually hurts the industry most. If we look at the recent past, in the last 10 years, there have been massive devaluation in last 4 years, made overnight. At one point in time, a correction was made. But at the most of the time, corrections were never made (CHART ATTACHED).

He further commented that this is a big blow to the Pakistan’s economy. The debt burden has increased by 900 billion in rupee terms and the ability to pay back debts has also effected. When we are doing everything in rupee, the taxation would not serve the purpose and we would not be able to retire our debts. It is a vicious circle. Then we need more money for which we need more taxes and increase in utility prices. So this will end up in lesser exports. We would be higher in cost as compared to our regional competitors, especially Bangladesh where according to previous dollar parity, we were 40 pc more in gas price and almost similar in electricity, minimum wages and so many other things which actually played pivotal role in terms of cost.

So how to run a factory? How industry can be sustainable? Can we sustain with this kind of instability in foreign exchange? he questioned. Can we sustain this attitude of the government to tackle the issues and put the industries in such terrible position. He said that the government should go for the consultation with the industry and stakeholders. On the one hand the government intends to narrow down the trade deficit and on the other hand, it is creating such kind of situation whereby the massive devaluation has been made.

These are all together two different things and if the government thinks that by devaluation, they will be able to increase exports, it is not like this. Specially, in textile sector, the industries which do little business in local markets and more in exports, their local sales will drop and exports sales will suffer as buyers would think that supplier is getting 10 pc more and would ask for price reduction.

“We have started receiving such requests to reduce price in the current orders and quote new prices. If case of no, they are not ready to buy from Pakistan. Today, the government should realize that commodities having logo ‘Made in Pakistan’ are hard to sell in the world markets. If we increase our cost, we will not be going in the right direction,” he added.

He further said that consultation is the keyword. Even if you build a road, you think about diversions first for smooth flow of traffic. He asked the Finance Minister to let the industry know what are the diversions or ways out for the industry in current situation. He said that going to IMF was the last choice but he suggested that it should be taken as stop-gap arrangement and not as continuous policy. We need to formulate a financial discipline in the country which should also be above the political system of the country. All the political parties should sign a Charter of Economy on a long term basis.

Mr. Parekh suggested that there has to be short term, mid-term and long term programs so that industry can decide about future investments, create efficiencies and utilization of their existing production capacities. These are fundamental questions.

Another question is that cost of doing business and cost of manufacturing the country needs to be looked into. Referring to recent visit of Mr. Abdul Razzak Dawood, he said that we have already suggested him to appoint an international agency to prepare a comparison chart of cost of doing business of common commodities, for instance a polo shirt or a bed sheet. The chart should suggest what would be the conversion cost if the same item is manufactured in Bangladesh and same in Pakistan in cotton because today cotton is available at international price. The different between Pakistan and Bangladesh is about 21 pc and no industry in textile can make 21 pc. Textile is a business of low profits and high volumes. It is a business where you cannot earn more than 2-3 pc.

He further said that we would like to float an idea that short term, mid-term and long term strategies must be formulated in consultation with the industry leaders. On short term, government should go to IMF for stop-gap arrangement. On mid-term strategy, the government should immediately prepare the chart of industrial feasibility and input cost and laws of DTRE and Custom bond arrangement, ad-hoc imports which should immediately be made more comprehensive and business friendly and more flexible in future so that industry can get relief and when this comparison chart is evaluated, corrections should be made according to that so that industry could survive and produce their export goods.

Our recommendation is that we should export more and import less. For this purpose, import substitute industries needs to be designed and defined. For this purpose, sectoral research should be made. Research and Development Branch should be constituted in the Commerce Ministry for the setting up of import-substitute industries where people should come up with ideas and this department should also see the profitability of the industry. Industries not running in profits should be looked into.

More jobs creation is our intention in line with PTI government’s commitment to provide 10 million jobs which the government cannot do but can only be done by private sector people for which, profitability of the industry is the key requirement. Bottlenecks needs to be removed like in cotton, contamination is the bottleneck. Wastages should be brought down and new ginning industries should also be set up to provide contamination-free products. In the end Mr. Parekh stressed the Prime Minister, Finance Minister and Commerce Minister that only much needed actions should be taken with consultation of the industry.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org

President SITE Association expresses satisfaction over improvement in law and order situation

Karachi, September 11, 2018 (PPI-OT): “Peace and stability are inevitable for economic development, industrialization growth and generating more employment opportunities. The law and order situation is better than before during the last several months as compare to the past whereby crime number has been curtailed in the S.I.T.E. Industrial Area with the joint efforts of Sindh Police, Rangers and SITE Self Security System.”. This was stated by Muhammad Jawed Bilwani, President, S.I.T.E. Association of Industry in his statement to press and electronic media.

President SITE Association has expressed satisfaction over improvement in law and order situation in Karachi’s oldest industrial area SITE whereby the street crimes have reportedly declined and controlled. He appreciated the Addl. IG Police, DIG Police West and SSP West for their cooperation and sincere efforts to control the crime in the area and also supporting the SITE Association’s initiative of Crime Control Monitoring System which has been functioning 24/7 for the last more than five years. Besides 14 motorcycles have been give to police personnel for patrolling the sensitive areas. efforts are underway to increase the number of motorcycles and police force.

Sharing the figures, Jawed Bilwani informed that as per the data during Jan-Aug 2018 snatching / theft of Motorcycle; Mobile phone and Cash reports are 23, 45 and 50 respectively as compared to same period of last year reports were 221, 58 and 55 respectively which shows decrease of street crime reports by 861%, 29% and 10% respectively.

He recalled that in the past the business and industrial community, despite the huge potential of economic growth and development faced many economic hardships because previous governments were failed to provide peaceful atmosphere. Karachi is the financial, industrial and trade hub of Pakistan which contributes 53% of revenue to the national exchequer and 95% revenue for the provincial exchequer, and contributes to 40% of the total country’s exports. Hence, the first priority of the Government should be to improve and maintain law and order situation taking concrete and sustainable measures so that the wheels of industries must not slowdown.

Jawed Bilwani demanded the Government to always accord top priority to the law and order situation in the larger interest of our beloved country and its citizens. He also sought the continuous support of the Sindh Police and Rangers for smooth and effective functioning of SITE Self Security System.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org

AIGP Karachi Amir Shaikh announces setting up of Madadgar 15 in SITE Association

Karachi, September 04, 2018 (PPI-OT): ss“Police Helpline 15 service will be provided in SITE Association’s Self Security System office shortly to facilitate the industrial community.” This was announced by the Additional Inspector General of Police (Karachi Range) Dr. Amir Ahmed Shaikh, during his visit to SITE Association of Industry on invitation of President Jawed Bilwani to inaugurate the new building of SITE Self Security System.

While addressing the industrialists of SITE, he said that providing safety and security to citizens is the prime responsibility of police. He lauded Jawed Bilwani stating that he is the man of action who has always turned his commitments into reality. SITE Self Security System is the role model to be followed and replicated by other Associations which has covered the entire SITE Area with network of CCTV cameras and 24/7 real time monitoring with professional staff.

He confirmed to provide CCTV recording services to SITE Association to speed up apprehending of criminals and reduce investigation time. Focal persons shall also be appointed to liaise with SITE Self Security System Office. He also announced that as per proposal of Mr.Zubair Motiwala, he will pay visit to SITE once in a month to have an open house session with the industrialists to exchange views on law and order situation and improving policing system in the area.

Exchanging views with the industrial community, he informed that the Chief Minister Sindh has promised and assured to allocate funds to make Karachi a safe city while developing CCTV Network all over Karachi for surveillance as it is not possible to deploy policeman at every nook and corner of city. A Rapid Police Squad comprising of 2000 police personnel shall also be deployed who shall patrol all over Karachi.

He admitted that the Karachi Police has been facing lack of police personnel to cover the metropolitan city for effective policing while efforts are underway to increase police force. He added that the Sindh Police is also working on reforms to improve emergency response, investigation and forensic procedures. He was of the view that healthy criticism on police is always welcome but they also deserve recognition and appreciation because they risk their lives for the safety of citizens as from year 2011 to-date more than 546 police personnel have been martyred in the line of duty.

To combat with crime, he stressed upon the need to report the crime and lodge FIRs. He informed that in addition to helpline, WhatsApp 0343-5142770, facebook page “Karachi Police Office” is also created for the purpose to promptly respond to the complaints. He apprised that he was paying surprise visits to various Police Stations to check out their functioning and staff attendance. He said that the big crimes like terrorism and target killings have been almost curtailed.

Now efforts have been focused on to reduce the street crimes wherein mostly youth is involved who takes drugs and later fall into the hands of criminal elements who give them arms to loot the citizens. He requested the industrialists to create more employment opportunities as mostly youth involved in crime was due to unemployment. He also urged the privileged to establish rehabilitation centres for youth who has become the prey of narcotics and criminal elements.

Earlier Jawed Bilwani, President, S.I.T.E. Association of Industry along with Office Bearers and eminent industrialist welcomed Dr Amir Ahmed Shaikh, Addl. Inspector General Police (Karachi) to S.I.T.E. Association. After the inauguration of new building of SITE Self Security System, a briefing was given on the available facilities. In his welcome address, Jawed Bilwani recognized the services of Dr Amir Ahmed Shaikh on his previous assignments and hoped that he will perform beyond par to maintain peace in Karachi.

He apprised that SITE Self Security System was providing a platform to monitor and report the criminal activities and facilitate industrial community to maintain safety and security. The initiative was operated on personal contributions from the industries. To maintain security in the area, SITE Association has provided its owned and maintained 10 motorcycles to police force for patrolling. Number of bikes will be increased sooner as per plan. Monitoring is done on 24/7 basis through 143 CCTV cameras installed at different locations. Besides 28 pickets have been constructed where Guards have been deployed. To further improve security, protective walls have been constructed at 31 locations.

He requested to introduce a verification desk and provide access to SITE Self Security System for checking criminal record of persons intended to be hired by industries for purpose of security guards and gatekeepers. He informed that efforts were underway to provide facilitation to industries under one roof at the Association in respect to all important government department and authorities.

Zubair Motiwala, Former Chairman, S.I.T.E. Association of Industry speaking on the occasion stated that with industries participation, on self-initiative and personal contribution the safety and security situation in the SITE area has improved. Consequently, the law and order situation of the city can also be improved if deserving attention is accorded by the Government.

He was of the view that provided Government offers a better salary package, facilities and infrastructure the efficiency and performance of Police will increase. He recalled that in the past with the intervention of the then DG Rangers Maj. General Rizwan Akhtar entire SITE area explored, maps were made and police pickets and walls were constructed on sensitive entry and exit points which helped battling against criminals.

He demanded to give worthy attention to the SITE area which contributes 30 percent to the national exports and generates massive employment. He also requested to provide facility of recording CCTV in the SITE Self Security System to produce post-crime recording to arrest the culprits.

President Jawed Bilwani also presented a memento to Additional Inspector General of Police (Karachi Range) Dr. Amir Ahmed Shaikh. Senior Vice President Abdul Rasheed, Vice President Saleem Nagaria, Managing Committee and a large number of member industrialists attended the occasion.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org

SITE Association of Industry demands immediate installation of Combined Effluent Treatment Plant

Karachi, March 07, 2018 (PPI-OT): An Extraordinary General Meeting (EGM) was held on 6th March, 2018 at SITE Association of Industry to discuss the proceedings being conducted by the Water Commission constituted by the Supreme Court of Pakistan and to formulate a lawful line of action by the industrialists.The EGM further discussed the measures being initiated by the SEPA and to apprise the members of the latest developments in the case filed by the SITE Association of Industry before the High Court of Sindh.

The said EGM was attended by about 200 industrialists. It was unanimously decided in the EGM that the Water Commission would be requested to afford the industrialists an opportunity of being heard in person so that they may substantiate their viewpoint for immediate installation of a Combined Effluent Treatment Plant (CETP).

During the said EGM, it was also decided that the Water Commission would be apprised about the efforts of SITE Association of Industry in getting the funds released from the federal and provincial governments required for construction of the CETP while the PC-I is also ready.The participants of the EGM, therefore, urged the Water Commission to direct the Government of Sindh for setting up of the CETP on urgent basis.

The EGM also decided to send a letter to the Chairman, Water Commission seeking appointment from him for a meeting with the industrialists enabling them to explain their standpoint in the matter. A resolution was also unanimously passed in the EGM held at SITE Association of Industry seeking immediate installation of a Combined Effluent Treatment Plant enabling the exporters to meet the WTO requirements to sell their goods in the international market.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org

Sindh Chief Minister, Syed Murad Ali Shah visits SITE Association of Industry

Karachi, January 10, 2018 (PPI-OT):Sindh Chief Minister, Syed Murad Ali Shah visited SITE Association of Industry on Wednesday, 10th of January, 2018 accompanied by Syed Nasir Hussain Shah, Sindh Minister for Transport and Mass Transit, Labour, Human Resources and Information. Mr. Muhammad Jawed Bilwani, President, SITE Association of Industry gave a detailed briefing about the severe infrastructure problems and lacked basic facilities in SITE Industrial Estate to the Sindh Chief Minister Syed Murad Ali Shah. He said that the industrial sector based in Karachi was the main contributor to the national exchequer besides being the largest employment provider but this sector was not given attention while making the budget.

Mr. Jawed Bilwani while demanding immediate release of the allocated funds from the Government of Sindh for the construction of First Combined Effluent Treatment Plant (CETP-I) in SITE Industrial Estate out of the five approved CETPs. After construction of CETPs in Karachi which holds the lion’s share of total country’s exports, Karachi will become the first environment-compliant city in Asia. He also stated that since the required land for established of the first CETP in SITE area has already been allotted, the project of CETP-I may kindly be commenced forthwith.

Mr. Jawed Bilwani, President, SITE Association of Industry proposed to the Sindh Chief Minister for grant of funds to the SITE Association of Industry for the uplift of the civic infrastructure particularly roads in SITE Industrial Estate in a transparent manner. Mr. Bilwani had also demanded review of the outdated system of audit and inspection of record regarding consumption of stamps under the Stamp Act, 1899 by the Sindh Board of Revenue. He also demanded immediate reduction in the rate of stamp duty which was increased by 100 per cent on Letters of Credit opened by banks for imports in the Finance Bill 2014-15.

Mr. Jawed Bilwani, President has further requested the Sindh Chief Minister for grant of funds to the SITE Association for construction of an Industry House on the plot adjacent to the Association’s Building where Convention Centre and Exhibition Hall are planned to be constructed for the industrial community. Regarding Karachi Circular Railway (KCR), Mr. Jawed Bilwani stressed the need to revive this mass transit project in the larger public interest.

In his brief address, Mr. Muhammad Zubair Motiwala, Former Chairman, SITE Association of Industry has drawn the attention of the Sindh Chief Minister towards the exorbitant water rates in comparison with other parts of the country. He, therefore, demanded a fair water tariff for Karachi particularly for the industry. Mr. Zubair Motiwala further urged the Government of Sindh for immediate sanction of the required funds for laying of 24″ dia MS Bulk Water Supply Line from Hub Reservoir to SITE Limited near Valika Hospital Karachi.

Mr. Motiwala apprised the Sindh Chief Minister about the SITE Crime Monitoring Cell (SCMC) being run by the SITE Association of Industry from its own meagre resources to eliminate criminal activities. He sought financial support from the Government of Sindh for this project of public security.

Mr. Siraj Kassam Teli, Patron-in-Chief, SITE Association of Industry thanked the Sindh Chief Minister for visiting the SITE Association of Industry. He reiterated the demand for immediate release of the allocated funds from the Government of Sindh for the construction of First Combined Effluent Treatment Plant (CETP-I) in SITE Industrial Estate.

The Patron-in-Chief, SITE Association of Industry, Mr. Siraj Kassam Teli also demanded immediate execution of the project regarding widening of Bridge across Orangi Nallah in between Habib Bank to Nazimabad at Shahrah-e-Ibne Sina, Karachi. In his address, Syed Murad Ali Shah, Chief Minister Sindh while thanking all the participants of the meeting assured that he would support the demand of the SITE Association of Industry for grant of funds to the SITE Association of Industry in consultation with the Minister for Industries and Commerce, Sindh in the matter.

Regarding construction of CETP-I in SITE Industrial Estate, Sindh Chief Minister informed the meeting that the Government of Sindh has already sanctioned its share of funds and the work on this project would be started upon receipt of the respective share of the Federal Government in the required funds.

On this occasion, Syed Murad Ali Shah has stated that the major chunk of the country’s total exports is from Karachi. Hence, he demanded from the Federal Government to use the Export Development Fund (EDF) on the development of Karachi’s industrial areas in proportion to the Karachi’s contribution to it.

Sindh Chief Minister asked the Commissioner Karachi Division to look into the matter regarding the revision of the outdated system of audit and inspection of record pertaining to the consumption of stamps under the Stamp Act, 1899 by the Sindh Board of Revenue. Sindh Chief Minister further stated that the work on Lyari Expressway is in progress and will soon be completed.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org

Chinese delegation invested in textile sector in Pakistan

Karachi, December 21, 2016 (PPI-OT):A 16 member delegation from Xianjiang Region, China visited SITE Association of Industry. The delegation was headed by Mr. Zhang Shaoyu, Deputy Director General of Department of Commerce, Government of Xianjiang Region and Ms. Miranda Lee, Consular Attache, Economic and Commercial Office and consisted of the prominent manufacturers and exporters as well as Office Bearers of the Textile Associations. They expressed their keen interest in joint ventures and B2B Contacts.

Mr. Asad Nisar Barkhurdaria, President, SITE Association of Industry, welcomed the delegates and thanked them for their visit to the SITE Association of Industry. He hoped that through such visits greater opportunities could be explored for collaboration in the textile sector by both sides. Mr. Zhang Shaoyun expressed his gratitude and thanked the SITE Association for its hospitality and warm welcome.

He hoped that such like meetings would help understand and promote bilateral commercial and economic ties. Mr. M. Zubair Motiwala, Former President highlighted the strengths of Pakistan Textile Sector and invited Chinese delegates to invest and benefit from its growth potentials. He explained the production and exports statistics of Pakistan viz a viz its global competitors and the large gap in value addition, offering great opportunities to the Chinese investors.

He also dilated upon the recently announced incentives by Pakistan Government in tax and tariff for foreign investments and the continuously improving security situation across the Country. Chinese delegates expressed their excitement and interest in joint ventures and co-production projects which will certainly help boost the National economy.

For more information, contact:
Secretary General
S.I.T.E. Association of Industry
H-16, Textile Avenue, SITE, Karachi
Pakistan
Tel: +92-21-32562883, +92-21-32560705
Fax: +92-21-32560704
E-mail: site@site-association.org
Website: www.site-association.org