Karachi contributes Rs 16 billion to GDP a day

[aks18]

Karachi contributes 60-70pc of revenue


KARACHI - Federal Board of Revenue Chairman Sohail Ahmad has said the Karachi contributes 60-70 per cent of the revenue to national exchequer.

At a discussion organized by the KCCI he announced that the committees for direct and indirect taxation and Customs will be formed.

The KCCI had organized a discussion, in which it was highlighted the budget anomalies, confusion and issues in the new taxes imposed in recent Budget.

FBR Chairman suggested KCCI to nominate representatives to discuss the budget anomalies. He said that previous tax policies would continue and assured them that no harassment would be done in future.

FBR chairman accepted the fact that business community is in confusion with GST and VAT. He elaborated that the Finance Minister Hafeez Sheikh is reviewing policies; very soon clarifications would be made public. He assured that nothing will be done without consultation of the stakeholders.
President Karachi Chamber of Commerce and Industry (KCCI) said that there were lot of expectations from this democratic Government but the policies were the same. The domestic industrial growth, self-reliance of business community and issues of businessmen and a commonman were not on Government priority. Business community is also waiting for the special committee to be addressed anomalies.

Zubair Motiwala, Advisor to Chief Minister, VC BMG and Former President KCCI suggested FBR to do consultative sessions with business community on VAT and remove confusions. There should be clear classification between services sector and manufacturing sector.

He said there should be no customs duty on these five sectors like Textiles, Leather, Surgical goods, etc as they are the main contributors to exports.

Giving the example of textile sector, Motiwala added that today textile industry is in crisis as the cost of yarn has been doubled; liquidity has been reduced to an alarming level. And at present when the burden is added with multiple taxes, Government should also give attention to the raise in tariffs of electricity and gas. In addition, Shipments usually takes 3-6 months that will dry up liquidity and it is like an interest free loan to the Government.

He also highlighted that WHT is imposed on service industry; the vending sector in automobile industry dont make that much to give that tax, hence proper classification needs to be done. Small refunds are pending from many years, even a small refund of 50-60,000 is still not released. Reference to ATTA, Motiwala added that he has forwarded Government suggestions on the list of 20 sensitive items which includes tea, dry milk, electronic goods, etc should be specially monitored, also the usage of these items in Afghanistan needs to be scrutinized. Moreover, the trade should be done through LCs and authorized banking channels. Motiwala also acknowledged the achievements of FBR particularly in Customs and various other departments. He suggested that opening of Letter of Credit in a bank would solve half the problems in ATTA. He also mentioned about proposal of using advance tracking and monitoring devices on shipments to Afghanistan. The number of Audits and notices has been increased seriously and I am a witness to it. Certain powers delegated to Commissioner level needs to be restored back to FBR.

The power of assessment and hearing should not remain with the same person. The attitude of FBR towards the taxpayer should be friendly and there is a drastic need for a positive change Motiwala added.

Karachi contributes 60-70pc of revenue | The Nation



The above statement is from Chairman FBR.

The fact remains Karachi LTU collects 70% of revenue which is spent all over Pakistan. Do some research on Lahore LTU.

Your analogy is incorrect. The reason I have repeatedly mentioned. Had that been the case then Karachi being at a standstill wouldn't make much of a difference right? according to you Punjab is the driving force then please answer why does PAKISTAN lose billions of dough as a result of disruption in Karachi? you have no answer to this question.




Never denied Punjab's share. However, I know for a fact Karachi accounts for 30+% of national GDP.

Where is the report ??? i am asking reports not saying FBR Chairman

 

[aks18]

why does PAKISTAN lose billions as a result of any disruption in Karachi? if it just COLLECTS tax as you say so.



I do not trust wiki. However, there is an old chart showcasing Sindh's contribution to GDP from 1973-2000 remained at 32%. It has increased since then.


I

what do you think just karachi;s disruption hurted pakistan;s economy ?? do you even know electricity and gas shortage hitted billions of dollars loss to our exports alone from punjab its not about rupees its about billion of dollars and punjab is not based on single city it have a lot of industrial estates of every type in different region and do you even know about the GOLDEN TRIANGLE of pakistan which is backbone of pakistan's export industry after faisalabad ?? gujrat gujranwala and sialkot

Golden Export Triangle:

Pakistan consists of Small and Medium Enterprises, (SMEs) which form the backbone of its economy. About 60% of Pakistan's SME's are located in the region of Export Triangle of Pakistan comprising Sialkot, Gujrat and Gujranwala.

The area is rightly called a Golden Triangle consisting of three districts namely, Sialkot, Gujrat and Gujranwala.

 

[aks18]

Textile and Manufacturing:

Punjab accounts for almost 60% of all industrial value addition in Pakistan
Large-scale manufacturing sector constitutes 55.03% of value addition
in the sector
Manufacturing sector has a 15% share in the National GDP and 25.7% in
the GPP of Punjab
Manufacturing sector growth was over 10% per annum from 2004 to 2007
A survey of 8006 industrial units revealed that these units provide employment
to over 841,000 people
Total investment in these projects topped Rs. 736 billion in Punjab
Large scale manufacturing sector grew at over 14%

Textile:

60 % of Pakistan's export comprise of textiles
Punjab contributes to over 70% of Pakistan's cotton production
Nearly 99% of the country's handloom units are located in Punjab
Total textile units: 11,820
Ginning industries: 6,778
Punjab is the 6th largest producer of cotton in the world
Punjab contributes about 70% of the total cloth production and 57% of the
total yarn production
Textile is the largest single determinant of growth in manufacturing sectors
About 42% of large scale industry is derived from textile sector
Punjab has very well established vertical linkages
Employs over 38% of the total labor force
With over 320 units in place, total cotton yarn production is 870 metric tons
Total cotton cloth production reached 401 million meters
Total jute production at137, 000 metric tons
Total wool production topped 4.5 million kgs.

Punjab's share in textile Production in Pakistan :

Cotton yarn - 69.2 %
Cotton Cloth - 52%

Punjab share of world textile Market :

Cotton yarn - 32.8%
Cotton Cloth - 8.1%

Punjab Textile production efficiency (against installed capacity)

Spinning - 70%
Weaving - 54%
Processing - 60%
Knitting - 65%

Punjab Board of Investment & Trade

 

[z9-ec]

what do you think just karachi;s disruption hurted pakistan;s economy ?? do you even know electricity and gas shortage hitted billions of dollars loss to our exports alone from punjab its not about rupees its about billion of dollars and punjab is not based on single city it have a lot of industrial estates of every type in different region and do you even know about the GOLDEN TRIANGLE of pakistan which is backbone of pakistan's export industry after faisalabad ?? gujrat gujranwala and sialkot

Golden Export Triangle:

Pakistan consists of Small and Medium Enterprises, (SMEs) which form the backbone of its economy. About 60% of Pakistan's SME's are located in the region of Export Triangle of Pakistan comprising Sialkot, Gujrat and Gujranwala.

The area is rightly called a Golden Triangle consisting of three districts namely, Sialkot, Gujrat and Gujranwala.

ISLAMABAD: The Federal Board of Revenue has suffered massive revenue loss of approximately Rs 13 billion as a result of total closure of trade and industry in Karachi due to law and order situation particularly on March 27, 2012.

It has been reliably learnt on Wednesday that the tax authorities have suffered huge revenue loss due to political unrest and law and order situation in Pakistan’s economic hub, Karachi during the last two days where one day unrest causes billions of rupees revenue loss. The ongoing law and order situation in Karachi has direct negative impact on the revenue collection of the FBR. The revenue reduction would have direct effect on the March’s collection.

A huge revenue loss has been suffered on March 27, 2011. The industrial production in the major industrial estates of the city suffered major production losses owing to thin attendance of workers who failed to report on duty due to fear of violence and non-availability of public transport. The country also lost billions of rupees in revenue, as workers and officials preferred to stay at home. The supply of finished goods to the wholesale and retail markets meant for exports from industry remained suspended due to non-availability of transport and closure of markets. The industry suffers production losses, and port suffers revenue loss on imports and exports to the tune of billions on March 27.

If the law and order situation at Karachi persists on Thursday (March 29), the revenue loss to the exchequer would further increase in coming days. It may make further difficult for the tax managers to achieve the assigned target for March 2012, sources said.

Sources said that the FBR is making extraordinary efforts to maintain the current momentum of growth of over 26 percent in the remaining months of current fiscal. At present the FBR team of tax managers headed by FBR Chairman Mumtaz Haider Rizvi and FBR Member Inland Revenue Shahid Hussain Asad are sitting late night at the FBR House on daily basis to monitor the revenue collection and progress of the enforcement and administrative measures during current days. In the presence of FBR Chairman and FBR Member IR, the subordinate officers are also assisting the tax authorities to monitor revenue collection on war footing. Interestingly, FBR House seemed to be the only government office which remained open till late night to check revenue progress of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs).

On March 27, the industrial production suffered and trading activities remained paralyzed throughout the day. It was second shutdown in a month as commercial hub of the country observed a complete closure on March 17 to protest rising incidents of extortion and kidnappings for ransom.

---

That's only a day's loss of revenue (TAX).

Where is the report ??? i am asking reports not saying FBR Chairman

How ironic, you chose to discard a statement by FBR Chairman. Nonetheless, there are more officvial links.

With 23% of country’s population, its contribution to the national GDP is around 33%. Sindh collects 70% of Pakistan’s Income Tax and 62% of Sales Tax.

Sindh has 54% of country’s textile units, 45% of its sugar mills, 20% of pulp & paper mills and 35% of edible oil processed locally. Sindh accounts for 34% of total industrial capacity in large scale manufacturing and 25% of small scale manufacturing.

48% of fish export from Pakistan is from Sindh. Moreover, 71% of marine fish resources, 65% of fresh fish resources, and 100% of brackish water fish resources are located in Sindh.

In the context of livestock, 28% buffaloes, 27% cattle, 24% sheep, 28% camels and 40% poultry in Pakistan is found in Sindh. The livestock and poultry headcount of 40 mn (approx) provides a strong base for dairy and meat processing industry for local and export purposes.

Sindh is a rich province in natural resources. Around 60% of the country’s oil fields and 44% gas fields are located here and contributes 56% oil and 55% of Pakistan’s daily gas production. It has one of the largest coal reserves in the world (185 bn tones) a huge potential for renewable energy with 60 km wide and 180 km deep wind corridor.

http://www.sbi.gos.pk/sindh-economy.php

http://www.sindh.gov.pk/default.htm

Textile and Manufacturing:


Punjab Board of Investment & Trade

There is no denying Punjab's contribution to GDP. Nevertheless, to say Sindh only accounts for 15% of GDP is wrong. Sindh accounts for 33+% national of GDP as shown on the above links. Should Sindh receive it's actual fair share of revenue/government spending it's contribution to national GDP would increase even more.

Further more, the fact remains Karachi contributes 70% of Pakistan's revenue (tax).

 

[Shabaz Sharif]

Karachi GDP is 20% of Pakistan. Where are you getting 30%? Because 30% is all of Sindh share in Pak GDP.

 

[z9-ec]

Karachi GDP is 20% of Pakistan. Where are you getting 30%? Because 30% is all of Sindh share in Pak GDP.

I guess you haven't read my posts properly. I said Sindh.

Further more, you need a geography lesson. Karachi ( Karācī (help·info), Urdu: کراچی; Sindhi: ڪراچ&#1610 is the largest city, and the main seaport and financial centre of Pakistan, as well as the capital of the province of Sindh.

 

[darkinsky]

most of all high profile industries and corporates are in karachi, karachi cant produce cotton, it doesnt have agriculture fields but it has all the brains, punjab is developing, nice enough, getting industrialised,nice enough, getting educated,nice, but it will have to develop for atleast 2 decades to reach the level karachi is even lahore, im not being pro MQM,im not being a racist or ethnic, or biased or something im just being truthful


karachi is the heart,brain,kidneys, lungs, digestive system and central nervous system combined, the blood which pumps the heart ispunjab, sindh, balochistan and KP

we all need each other and depend on each other,lets leave at there and stop fighting,hope this ends the long prevailing discussion

now why i was fighting,its because people here see punjab is developing, i dont want this,i want pakistan develop,i have nothing against if gawadar develops and leaves karachi behind, i will be more than happy, i want to see peshawar develop not just being a useless city with useless people, i want to see quetta develop, even if surpasses karachiim happy

what idont want to see is punjab alone becoming pakistan, if there was no karachi, pakistan had long become punjab with paralyed other pakistan, this is what i dont want to see,and if wars like this goes on i fear even karachi will become balochistan and some members are already praying for army action, this will be last nail on the coffin, honestly, i say punjab has good agriculture which no other province can match, green fields etc, but when has agriculture and greenry and population become a factor for development and superiority?? we need to stop being racist and becoming equal pakistan, other wose i dont see pakistan remaining pakistan very soon

i need to see peace every where

 

[RayKalm]

Karachi was our former capital, so it does make sense as to why it's booming.

VISIT KARACHI 2012 - YouTube

 

[Sugarcane]

@drakinsky Point of discussion was not undermining the importance of Karachi, sindh or any other province because facts are facts, but to clarify the misconception that Karachi is feeding Pakistan and base less rants specially about Punjab instead of acknowledging it's significant contribution in Pakistan's economy and being largest consumer base it is paying large share in taxes (as you know more than 80% are indirect taxes). If you think People of Punjab doesn't feel the pain of other provinces than you are wrong, if some people support military operation that's mostly many of them don't know ground realities and political situation of the area but they are frustrated to see their country men being killed and they find it short cut to kill criminals and bring peace. We are dependent on each other and none can survive alone. United we can stand, grow and achieve everything which looks impossible at the moment.

But at-least educated people must understand the cheap tricks of politicians (of all parties) and bring awareness among others, so that we can stand against this corrupt creature and tell them that it's enough now, your dirty tricks for vote banks will not work anymore. Bring new and honest faces to parliament based on merit rather than race and kick out rotten eggs and don't pass on the idiotic propaganda (it's for every Pakistani) to next generation. In 65 years these opportunists have inflected hell of damage to Pakistan and didn't let us to form a nation, We need decades of day & night struggle to build nation. We need to reform and bring transparency to over revenue and funds allocation systems to eliminate the chances that someone can misinterpret it for it's personal gains. Irony is that the people who don't pay or taxes but live on taxes paid by common people treat them as slaves, making them fight each other, killing them just to remain in power. And we 99% majority are idiots who are being fooled by this 1% minority since 65 years.

 

[Shabaz Sharif]

most of all high profile industries and corporates are in karachi, karachi cant produce cotton, it doesnt have agriculture fields but it has all the brains, punjab is developing, nice enough, getting industrialised,nice enough, getting educated,nice, but it will have to develop for atleast 2 decades to reach the level karachi is even lahore, im not being pro MQM,im not being a racist or ethnic, or biased or something im just being truthful

Again saying false things without providing any sources.

"As of 2008, the city's gross domestic product (GDP) by purchasing power parity (PPP) was estimated at $40 billion with a projected average growth rate of 5.6 percent.[1] This is at par with Pakistan's other economic hub, Karachi, with Lahore (having half the population) fostering an economy that is 51% of the size of Karachi's ($78 billion in 2008).[1] The contribution of Lahore to the national economy is supposed to be around 13.2%.[2][3][4] Lahore's GDP is projected to be $102 billion by the year 2025, with a slightly higher growth rate of 5.6% per annum, as compared to Karachi's 5.5%."

Lahore GDP per capita >>> Karachi. All those industries also are in Lahore. The problem is other 2 provinces which need to quickly catch up with Sindh and Punjab on GDP per capita bases. Hopefully war on terror is over soon and these two provinces can also develop rapidly.

 

[aks18]

ISLAMABAD: The Federal Board of Revenue has suffered massive revenue loss of approximately Rs 13 billion as a result of total closure of trade and industry in Karachi due to law and order situation particularly on March 27, 2012.

It has been reliably learnt on Wednesday that the tax authorities have suffered huge revenue loss due to political unrest and law and order situation in Pakistan’s economic hub, Karachi during the last two days where one day unrest causes billions of rupees revenue loss. The ongoing law and order situation in Karachi has direct negative impact on the revenue collection of the FBR. The revenue reduction would have direct effect on the March’s collection.

A huge revenue loss has been suffered on March 27, 2011. The industrial production in the major industrial estates of the city suffered major production losses owing to thin attendance of workers who failed to report on duty due to fear of violence and non-availability of public transport. The country also lost billions of rupees in revenue, as workers and officials preferred to stay at home. The supply of finished goods to the wholesale and retail markets meant for exports from industry remained suspended due to non-availability of transport and closure of markets. The industry suffers production losses, and port suffers revenue loss on imports and exports to the tune of billions on March 27.

If the law and order situation at Karachi persists on Thursday (March 29), the revenue loss to the exchequer would further increase in coming days. It may make further difficult for the tax managers to achieve the assigned target for March 2012, sources said.

Sources said that the FBR is making extraordinary efforts to maintain the current momentum of growth of over 26 percent in the remaining months of current fiscal. At present the FBR team of tax managers headed by FBR Chairman Mumtaz Haider Rizvi and FBR Member Inland Revenue Shahid Hussain Asad are sitting late night at the FBR House on daily basis to monitor the revenue collection and progress of the enforcement and administrative measures during current days. In the presence of FBR Chairman and FBR Member IR, the subordinate officers are also assisting the tax authorities to monitor revenue collection on war footing. Interestingly, FBR House seemed to be the only government office which remained open till late night to check revenue progress of the Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs).

On March 27, the industrial production suffered and trading activities remained paralyzed throughout the day. It was second shutdown in a month as commercial hub of the country observed a complete closure on March 17 to protest rising incidents of extortion and kidnappings for ransom.

---

That's only a day's loss of revenue (TAX).



How ironic, you chose to discard a statement by FBR Chairman. Nonetheless, there are more officvial links.

With 23% of country’s population, its contribution to the national GDP is around 33%. Sindh collects 70% of Pakistan’s Income Tax and 62% of Sales Tax.

Sindh has 54% of country’s textile units, 45% of its sugar mills, 20% of pulp & paper mills and 35% of edible oil processed locally. Sindh accounts for 34% of total industrial capacity in large scale manufacturing and 25% of small scale manufacturing.

48% of fish export from Pakistan is from Sindh. Moreover, 71% of marine fish resources, 65% of fresh fish resources, and 100% of brackish water fish resources are located in Sindh.

In the context of livestock, 28% buffaloes, 27% cattle, 24% sheep, 28% camels and 40% poultry in Pakistan is found in Sindh. The livestock and poultry headcount of 40 mn (approx) provides a strong base for dairy and meat processing industry for local and export purposes.

Sindh is a rich province in natural resources. Around 60% of the country’s oil fields and 44% gas fields are located here and contributes 56% oil and 55% of Pakistan’s daily gas production. It has one of the largest coal reserves in the world (185 bn tones) a huge potential for renewable energy with 60 km wide and 180 km deep wind corridor.

Sindh Board Of Investment | About Sindh | Sindh Economy

Official Web Portal of Sindh Government




There is no denying Punjab's contribution to GDP. Nevertheless, to say Sindh only accounts for 15% of GDP is wrong. Sindh accounts for 33+% national of GDP as shown on the above links. Should Sindh receive it's actual fair share of revenue/government spending it's contribution to national GDP would increase even more.

Further more, the fact remains Karachi contributes 70% of Pakistan's revenue (tax).

when did i said sindh contributes 15% in gdp of pakistan ??? its around 30 to 33 % and i told you the major contributor to pakistan's economy is punjab which is engine of pakistan's economy punjab's economy have crossed 100 billion dollars marks and punjab's economy is greater then many countries around world

karachi collects 70% of revenue on the basis of port operation and major companies head quarters there and this is not only sole indicator of running a economy

 

[aks18]

due to energy crises of gas and electricity pakistan's textile industry is loosing 10 billion dollars per year and such crises majorly hits punjab specially faisalabad every year where textiles remains close for more then 100 days a year factories in punjab are not working on its full efficiency

 

[saiyan0321]

yep karachi contributes 16 billion gdp and zardari contributes minus 16 billion gdp thats whats happening and is the pressing issue

 

[Baby Leone]

when did i said sindh contributes 15% in gdp of pakistan ??? its around 30 to 33 % and i told you the major contributor to pakistan's economy is punjab which is engine of pakistan's economy punjab's economy have crossed 100 billion dollars marks and punjab's economy is greater then many countries around world

karachi collects 70% of revenue on the basis of port operation and major companies head quarters there and this is not only sole indicator of running a economy

i guess this figure of Punjab & other countries are from 2009?

 

[Shabaz Sharif]

So after couple of calculations Karachi GDP a day is Rs 10 billion while Rs 16 billion figure is for all of Sindh.

i guess this figure of Punjab & other countries are from 2009?

Latest figure would be 120 billion dollars for Punjab out of 203 of all Pakistan.