INFONALYSIS

KCCI Research offers a holistic view of the economy, and its different facets like taxation, budget, manufacturing sectors, social issues etc. It serves to apprise its readers with insightful analyses, in-depth information and statistics of several areas like trade, manufacturing (leather, textile, food and plastics etc.), services (franchising, SMEs), energy, financial sector (IMF, debt profiling), transport and infrastructure development (CPEC), bilateral relations (with China, Turkey etc.) and commodities.

Trade Agreements: Negotiating a win-win!

Trade Agreements: Negotiating a win-win!

Published in: April 2021

In their pursuit for enhancing trade, countries often negotiate trade agreements with partnering nations to reduce or eliminate restrictions such as tariffs, quotas, and taxes. Pakistan has entered into several trade agreements with different countries including Free Trade Agreements (FTAs) with China, Malaysia, and Sri Lanka, Preferential Trade Agreements (PTAs) with Iran, Indonesia, Mauritius, as well as a Transit Trade Agreement with Afghanistan. However, even though bilateral trade with China and Malaysia increased after the implementation of respective FTAs, Pakistan’s imports grew more rapidly in absolute terms than exports to these partners, resulting in a rapid widening of the trade deficit.

2021- Balancing Lives & Livelihood

2021- Balancing Lives & Livelihood

Published in: March 2021

Like the rest of the World, the year 2020 brought about significant socio-economic challenges for Pakistan and the country found itself having to prioritize the well-being of its people over economic growth. As a result of the Global slowdown along with a complete lockdown in the country to prevent the spread of COVID-19, Pakistan’s economic health took a severe battering in the first two quarters of 2020. Although many businesses were unable to survive the lockdown, the post lockdown environment in Pakistan saw key economic indicators starting to revive with the government initiating several schemes and practices to stimulate the economy. However, areas such as high inflation, rising power utility rates, increasing fuel costs, etc. remained a major cause of concern at a time when the resilience of Pakistan’s 220Mn+ population was already stretched thin.

FY20 – KCCI Outperforms in Challenging Times

FY20 - KCCI Outperforms in Challenging Times

Published in: September 2020

KCCI fought on all fronts for ensuring ease of doing business. It launched relentless efforts in the areas of policy environment, taxation and much more. Even during COVID-19, KCCI persuaded the government to reprioritize its resources to protect the business and industrial community in order to save the economy. Even though KCCI had been advocating for solving Karachi’s woes, especially in the areas of infrastructure development and provision of uninterrupted supplies of utilities, the chamber shifted gears after torrential rains in the city uncovered the scale of the problems for Karachiites.

Impact of Corona Virus on Karachi Based Businesses

Impact of Corona Virus on Karachi Based Businesses

Published in: September 2020

KCCI in its persistent efforts to serve the business community of Karachi launched its second Survey titled: ‘Impact of Coronavirus on Karachi Based Businesses’ on 29th May’20 and concluded collection of response on 15th Aug’20. A total of 620 manufacturers, service providers and traders from diverse sectors filled the survey. The survey aimed to assess the impact of the Coronavirus on multiple dimensions of conducting business in Karachi. A large majority stated that the lockdown should have been limited only to hotspot areas. Respondents also identified a number of issues plaguing their business during the lockdown which includes: payment of fixed costs including salaries and rents, issues related to transportation, customer turnout and workforce management. Some went beyond the list provided in the survey to point out their own challenges, which included difficulties in recovering receipts, cancellation of export orders, and demurrage charges.

Sindh Budget FY21 – No compromise on helping itself

Sindh Budget FY21 - No compromise on helping itself

Published in: June 2020

At a time when governments around the world have been forced to take unprecedented steps to tackle the coronavirus, the Sindh government will continue spending most of its funds to meet non-development expenditures in FY21 such as paying salaries and pension. A mere PKR 232.94Bn is expected to be spent on development expenditure. The Sindh government has followed the federal by refraining from introducing any new taxes, however, unlike the federal government, it extended no tax relief. The only benefit extended to businesses is a PKR 5Bn allocation for Soft Loan Program. Development projects in Karachi remain ignored as barely any new projects have been included.

KCCI Post Budget Report – Federal Budget FY21 – An Illusion of Relief

KCCI Post Budget Report-Federal Budget FY21 - An Illusion of Relief_

Published in: June 2020

The entire Globe is experiencing some of the toughest economic and social times in recent history. Sadly, the global slowdown came at a time when Pakistan had just started to recover from its own economic crisis and was on its way towards recovery. In addition to its pre-existing hardships including record debt, managing the IMF bailout package and enforcing measures demanded by the Financial Action Task Force (FATF), the country has been hit hard by the COVID-19 pandemic and its resulting global economic slowdown. The government’s efforts to control the situation were off to a rocky start and the people of Pakistan relied on its leadership to tackle the prevailing crisis by providing relief through the FY21 Budget. The high pre-budget expectations were let down by the government which presented a budget that gave relief to only a handful of the sectors and largely left out the rest. Although the budget did not introduce any new taxes as promised, a number of existing tax rates were increased and the stakeholders of Pakistan’s economy remained largely unimpressed. The FY21 budget failed to address the country’s woes affectively. Only time will tell how the government is able to restore the confidence of the business and industrial community, which is the economic engine of Pakistan but is overlooked by the budget.