the pakistan business council · acca and the undp and has recently signed another mou with the ifc...

The PakistanBusiness Council

P R O F I L E

THE PAKISTAN BUSINESS COUNCIL:AN OVERVIEW

The Pakistan Business Council (PBC) is a business policy advocacy platform, established

in 2005 by Pakistan’s prominent private-sector businesses and conglomerates,

including multinationals. PBC businesses cover nearly all major sectors of the formal economy.

The PBC is a not-for-profit entity, registered under Section 42 of the Companies

Ordinance 1984. Though it is not required under the law to do so, the PBC follows to the

extent possible, the Code of Corporate Governance as applicable to listed companies.

The PBC is a pan-industry advocacy group. It is not a trade body nor does it advocate for

any specific business sector. Rather, its key advocacy thrust is on easing barriers to allow

Pakistani businesses to compete in regional and global arenas. The PBC conducts

research and holds conferences and seminars to facilitate the flow of relevant information

to all stakeholders in order to help create an informed view on the major issues faced by

Pakistan.

The PBC works closely with the relevant government departments, ministries, regulators

and institutions, as well as other stakeholders including professional bodies, to develop

consensus on major issues which impact the conduct of business in and from Pakistan.

The PBC has submitted key position papers and recommendations to the government on

legislation and other government policies affecting business. It also serves on various

taskforces and committees of the Government of Pakistan as well as those of the State

Bank, SECP and other regulators with the objective to provide policy assistance on new

initiatives and reforms.

T H E PA K I S TA N B U S I N E S S CO U N C I L - P R O F I L E 02

THE PBC’S FOUNDINGOBJECTIVES

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02

03

04

05

To provide for the formation and exchange of views on any

question connected with the conduct of business in and

from Pakistan.

To conduct, organize, set up, administer and manage campaigns, surveys, focus groups,

workshops, seminars and field works for carrying out research and raising awareness in

regard to matters affecting businesses in Pakistan.

To acquire, collect, compile, analyze, publish and provide statistics, data analysis

and other information relating to businesses of any kind, nature or description and

on opportunities for such businesses within and outside Pakistan.

To promote and facilitate the integration of businesses in

Pakistan into the World economy and to encourage in the

development and growth of Pakistani multinationals.

To interact with governments in the economic development of Pakistan and

to facilitate, foster and further the economic, social and human resource

development of Pakistan.


MEMBERSHIP CRITERIA

The PBC is neither a trade nor a representative body for a specific industry. It does not advocate sector

and industry specific issues; instead, its advocacy thrust is on improving the general business

environment of the country. Currently, there are two categories of membership open to companies:

Executive Membership, which is the primary category and Associate Membership which is presently

limited to businesses in the knowledge economy. The financial criterion, Joining Fee and Annual

Membership Fee have been relaxed for Associate Members, - recognizing that the main resources these

companies deploy in their businesses/practices are human and intellectual capital rather than merely

financial. Meeting the qualifying threshold, financial or other, for either category of membership is not a

guarantee for acceptance; companies desirous of PBC membership have to indicate their interest and

thereafter be invited to join the PBC. The ultimate decision on membership is of the Board and the

reputation of the business and its sponsors carries a heavy weight. The authorized representative of

businesses admitted into membership is invariably the Chairman / President / CEO / MD / Country

Head / Senior Partner etc., in order to retain a high quality of contribution to PBC’s objectives. However

functional heads may represent members on its various committees.

Executive Members are private sector businesses registered and operating in Pakistan, with substantial

investments in manufacturing, exports and the financial / services sectors. To ensure quality of

membership, the qualifying threshold for this category has been kept high to maintain a sharp focus on

medium to long term policies aimed at achieving sustainable growth. It is estimated that no more than

approximately a hundred existing private sector businesses operating in the country can potentially

qualify for PBC’s Executive Membership. Currently, over 80% of such businesses have recognized the

value of PBC’s role and have joined as Executive Members. In the last four years, the membership

doubled in numbers.

The current qualifying threshold for Executive Membership for a non-financial sector company is to have

shareholders’ funds of at least Rs. 1 Billion, or Net Fixed Assets equivalent to this value. For a financial

sector company, the qualifying requirement is a paid-up capital of at least Rs. 2 Billion. Qualifying

thresholds are for individual or group holding companies. Paid-up capital and fixed assets of

Executive Membership


commonly-owned companies outside a group structure cannot be clubbed together for meeting the

qualification criteria.

To further ensure participation of only serious businesses, the joining fee and the annual

subscription fee for this category of membership have been kept at premium levels of Rs. 3 Million

and Rs. 2 Million respectively. Half the entry fee is payable on admission, the balance on the following

July 1. The annual fee is payable on each July1, while companies joining during the year are required to

pay the annual fee on a pro-rata basis.

Executive Members have voting rights and can nominate candidates to stand for election to the Board

of Directors. Currently the Board comprises 14 elected directors. The 15th member is the CEO.

In opening the membership to the “knowledge’ economy, the PBC recognizes the need to include

these rapidly emerging sectors in its research and advocacy. However, such businesses which meet the

financial criterion for Executive Membership will not qualify for admission as an Associate Membership.

Furthermore, businesses admitted as Associate Members would be required to pay the differential of

fee when they grow in size to qualify for Executive Membership.

The new category of Associate Membership is open to businesses in the knowledge economy which

presently are unable to meet the financial criteria for Executive Membership. The Shareholders’ Funds

and Fixed Assets criterion have been removed. Instead, to qualify for application as an Associate

Member, a business must either belong to the IT or IT-enabled services sector or be a provider of

professional services, such as legal, accounting and consulting. The size threshold is as follows:

ASSOCIATE MEMBERSHIP


Annual Turnover

Sales generated through portal/call-centre/back office

Employees on own payroll

Indirect Employees (for digital intermediaries e.g. “Captains” for Uber)

Annual Payroll Cost

Years Established/Operating in Pakistan

Evidence of tax filing

N/A

Rs. 5 Billion per

annum

50

5,000

Rs. 100 Mn

3

Yes

Rs. 1 Bn

N/A

60 for Law firms

150 for all other services

N/A

Rs. 300 Mn

10

Yes

IT/IT-Enabled Services Professional Services

The Joining and Annual Fee for Associate Membership is also set at a reduced rate of Rs.1,000,000 and

Rs. 500,000 respectively.

Associate Members have the right to vote but not nominate candidates for election to the Board of

Directors.


CENTER OF EXCELLENCE INRESPONSIBLE BUSINESS

As Pakistan’s premier business body composed of the largest and most successful businesses in the

country, the PBC recognized in 2016 the need to share and spread the best practices on responsible

business conduct. As an outreach initiative to grow the formal sector and to enhance PBC’s credibility

and relevance, the PBC established a Center of Excellence in Responsible Business (CERB).

CERB leverages global and local best practices to inculcate a change in mind-set among businesses

including small and medium-sized enterprises.

CERB's VIS ION

To be a multi-sector business coalition assisting Pakistani enterprises to pursue sustainable value creation in the short, medium and long-term.

CERB's Miss ion

To engage with businesses and

industry leaders and enable the

transformation towards the conduct

of responsible business in Pakistan

To leverage private sector growth for

inclusive development, poverty

reduction and sustainability guided by

the UN Sustainable Development

Goals (SDG) framework


ONLINE RESEARCH ANDINNOVATION INIT IATIVE

CERB comprises of Online Research & Innovation Initiative and two inter-dependent business units.

This will be developed as an online research portal with a determined effort to integrate the business

research community with industry to develop world class research to support CERB’s strategic

objectives outlined in its Mission.

ETHICS, VALUES ANDGOVERNANCE FORUM

This forum promotes responsible practices which strengthen the formal sector in pursuit of sustainable

value creation.

INCLUSIVE AND SUSTAINABLEDEVELOPMENT FORUM

This forum focuses on generating livelihoods, promoting women’s empowerment and decoupling

growth from its impact on the environment.


CERB aims to impact private sector to create wealth through the conduct of responsible business in a

competitive global economy. It will assist businesses to maintain a competitive edge through high value

research and dissemination of knowledge. It will use real time business knowledge and will turn it into

sustainable competitive advantage for the private sector.

Since 2016, CERB has engaged 1000+ executives in webinars, 500+ in workshops, 700+ in events,

1000+ through social media also with 250 businesses. CERB partners the World Bank’s IFC, the Global

ACCA and the UNDP and has recently signed another MOU with the IFC on the Pakistan Investment

Competitiveness Project to be run in collaboration with the Board of Investment. This project is funded

by UK's DFID.

CERB’s outcomes


Recent Publications The PBC’s advocacy is supported by research work, some of the major publications of the PBC include:

Contours of a National Charter for Exports (2020)

Framework for SEZs (2019)

Preliminary Analysis of the Pak China FTA Phase 2 (2019)

Review of Potential Pakistan-Australia FTA (2019)

Review of Potential Pakistan - Canada FTA (2019)

Potential for a Pakistan – U.S. Free Trade Agreement (2019)

The Impact on Bilateral Trade of a Potential Pakistan – Japan Free Trade Agreement (2019)

A Policy Framework for Improving the Export competitiveness of Pakistan’s knitted apparel sector (2019)

Pakistan’s Readymade Garments Sector: Challenges & Opportunities (2019)

Enhancing the Export competitiveness of Pakistan’s Denim Sector (2019)

The North Africa Country Series: The Kingdom of Morocco (2019)

The North Africa Country Series: The Republic of Tunisia (2019)

The North Africa Country Series: Arab Republic of Egypt (2019)

Recommendations for a long term policy designed to broaden and diversify exports

Proposed framework for SEZs based on a compara-tive study of Asian zones

Identifies opportunities for exports from Pakistan under the revised agreement

Concludes that a Preferential Trade Agreement would promote export of textiles from Pakistan

Recommends a Preferential Trade Agreement to boost exports of Pakistan textiles and rice

Recommends Pakistan try and gain better market access for Pakistan’s apparel industry while offering market access for U.S. soybean & raw cotton exports

Recommends Pakistan try and get preferential access for apparel exports along the lines currently offered by Japan to Bangladesh and ASEAN countries

Report studied the competitiveness of Pakistan’s knitted apparel sector and made policy recommen-dations for enhancing export competitiveness of the sector

In this partnered research with CDPR, challenges and opportunities for Pakistan’s garment sector are outlined

Pakistan is one of the world’s largest exporters of denim fabric, the PBC report identifies policy interventions to increase competitiveness of denim apparel exports

Highlights opportunities available for Pakistani businesses in trade with the Kingdom of Morocco

Highlights opportunities available for Pakistani businesses in trade with the Republic of Tunisia

Highlights opportunities available in Pakistan Egypt bilateral trade

Title Brief Description


The North Africa Country Series: Peoples’ Democratic Republic of Algeria (2019)

5th Review of the Pakistan China Free Trade Agreement (2019)

Contours of a New Industrial Policy (2018)

Country Series – The Federation of Malaysia (2018)

Country Series – The Republic of Singapore (2018)

Country Series – Kingdom of Thailand (2018)

Review of the Pakistan – Sri Lanka Free Trade Agreement (2018)

Pakistan’s Trade with its Regional Partners: India, Iran & Afghanistan (2018)

4th Review of the China Pakistan Free Trade Agreement (CPFTA) & Recommendations for Phase II Negotiations (2018)

The Third Review of the Pakistan – Turkey Free Trade Agreement (2018)

A Review of the Proposed Pakistan Thailand Free Trade Agreement (2018)

Highlights opportunities available in promoting bilateral trade between Pakistan and Algeria

The report reviewed bilateral trade between Pakistan and China since implementation of Phase I of the FTA and made recommendations for Phase II negotiations of the CPFTA

Highlighted the need for a new Industrial Policy and recommended the key policy thrusts and focus areas to revive and promote manufacturing in the country.

Highlighted the opportunities for Pakistani businesses in Malaysia

Highlighted the opportunities for Pakistani businesses in Singapore

Highlighted the opportunities for Pakistani businesses in Thailand in the light of the proposed FTA.

This was a follow up report on the PBC’s study undertaken in 2015, analysing whether Pakistan has benefited from the agreement and highlighting the neglected potential areas.

The report analyses and explores the existing trade patterns Pakistan has with its 3 neighbouring countries and explores the trade potential that exists.

This was a follow up report on the 3rd Review of the CPFTA undertaken in 2016 with recommenda-tions for the phase II negotiations.

A follow-up report on the proposed FTA with Turkey, along with a word of caution for the policy-makers.

The report explores the proposed FTA with special emphasis on the Thai manufacturing sector.



The Potential Impact of Brexit on Pakistan – United Kingdom Bilateral Trade (2018)

Pakistan’s GSP+ Status …a missed opportunity? (2018)

Pakistan: Rising Imports, Declining Exports & Premature Deindustrialization (2017)

Country Series – Turkmenistan (2017)

Country Series – Uzbekistan (2017)

Country Series – Kyrgyz Republic (2017)

Country Series – Kazakhstan (2017)

Country Series – Tajikistan (2017)

Second Review of the Feasibility of a Free Trade Agreement between Pakistan and Thailand (2016)

Third Review of the Pakistan-China FTA and Recommendations for Phase 2 Negotiations (2016)

Afghan Transit Trade through Pakistan and Pakistan Afghanistan Bilateral Trade (2016)

Second Review of the Feasibility of a Free Trade Agreement between Pakistan and Turkey (2016)

A follow up report analyzing the post-BREXIT impact on Pakistan-UK bilateral trade considering that the largest market for Pakistan’s exports in EU has been the UK.

This report explores Pakistan’s trade with the EU post GSP+, and analyses why the zero-duty was never fully exploited.

This was a wake-up call for policy makers highlight-ing Pakistan’s unsustainable levels of current account deficit and premature deindustrialization in the country.

Highlighted the opportunities for Pakistani businesses in Turkmenistan

Highlighted the opportunities for Pakistani businesses in Uzbekistan

Highlighted the opportunities for Pakistani businesses in Kyrgyz

Highlighted the opportunities for Pakistani businesses in Kazakhstan

Highlighted the opportunities for Pakistani businesses in Tajikistan

This was a follow-up to the first review which was undertaken in 2015.

This was a follow-up to the second review which was undertaken in 2015.





Selected Trade and Manufacturing Data for Pakistan – A Brief Analysis (2016)

2nd Review of the Pak-China FTA (2015)

Review of Pak Sri Lanka FTA (2015)

Afghanistan’s International Trade Patterns Post-APTTA (2015)

1st Year Review of Pakistan’s GSP Plus (2015) Review of Pakistan’s PTA with Mauritius (2015)

Review of Pakistan’s FTA with Malaysia (2015)

Review of Pakistan’s PTA with Indonesia (2015)

Pakistan India Trade Normalization – A Word of Caution (2015)

A detailed Study on the Proposed Pakistan Turkey FTA (2014)

A detailed Study on the Proposed Pakistan Thailand FTA (2015)

Country Series – Argentine Republic (2016)

Country Series – Brazil (2016)

Country Series – United Mexican States (2015)

Country Series – Ghana (2015)

Continuing negative trends in manufacturing, 7th year of publication by PBC


This showed that full potential of the FTA was not being utilized

Main finding being that Pakistan remains the favored transit route for Afghan imports

Highlights increased reliance on EU markets especially textile sector

This PTA signed in 2007 has failed to achieve any objectives

Major concessions by Pakistan for no significant market access for exports

Again, opening up a captive market (palm oil) with no corresponding concessions

Caution advised against normalizing trade without corresponding easing of Indian restrictions

Recommended to the Government of Pakistan to ensure that the interests of Pakistani business were safeguarded in the negotiations

Suggested that this be deferred as there appears to be no major gains for Pakistan

Highlighted the opportunities for Pakistani businesses in Argentine Republic

Highlighted the opportunities for Pakistani businesses in Brazil

Highlighted the opportunities for Pakistanis to trade with and do business in Mexico

Highlighted the opportunities for Pakistani businesses in Ghana



Country Series – Chile (2016)

Country Series – Mozambique (2015)

Country Series – Iran (2015)

Country Series – The Russian Federation (2016)

Country Series – Ethiopia (2015)

Country Series – Nigeria (2015)

Country Series – South Africa (2016)

Country Series – Angola (2015)

Highlighted the opportunities for Pakistani businesses in Chile

Highlighted the opportunities for Pakistani businesses in Mozambique

Highlighted the opportunities for Pakistani businesses in Iran

Highlighted the opportunities for Pakistani businesses in Russia

Highlighted the opportunities for Pakistani businesses in Ethiopia

Highlighted the opportunities for Pakistani businesses in Nigeria

Highlighted the opportunities for Pakistani businesses in South Africa

Highlighted the opportunities for Pakistani businesses in Angola



In December, 2019, the PBC organized a 2 – Day Dialogue on Economic Revival and Sustainable

Growth in Islamabad. The major objective of this dialogue was to provide a platform for a candid

exchange of views between members of the government’s economic & strategic teams, senior

representatives of multilateral agencies based in Islamabad, diplomats from major world powers, key

Chinese investors operating in Pakistan and PBC members. The dialogue spread over two days started

with a dinner on December 10th at which Mr Abdul Razak Dawood, Adviser to the Prime Minister on

Commerce, Textiles, Industries & Production and Investment was the Chief Guest. The dialogue ended

with a session on the 12th afternoon at which Dr Hafeez Shaikh, Advisor to the Prime Minister on

Finance was the Chief Guest. A brief summary of the various sessions is given below:

Mr Abdul Razak Dawood was the Chief Guest at the dinner held on the

evening of December 10th. At the dinner Mr Dawood spoke about the

government’s plans for increasing exports and improving the general

business environment in the country. He specially mentioned the ‘Export

Policy’ that is currently under preparation and the importance of the

‘National Tariff Policy Board’ which is in the process of finalizing its

recommendations. He was of the view that the current tariff structure was

not conducive for promoting exports. He also talked about the ‘Industrial

Policy’ which is under preparation and requested PBC members to work

with him to promote exports and revive manufacturing in the Pakistan. He

advised the PBC to consider globalizing its presence; a good start would

be an office in China.

RECENT EXAMPLES OF THE PBC'SADVOCACY ENGAGEMENTS

Dinner with Mr Abdul Razak Dawood

DIALOGUE ON ECONOMIC REVIVAL ANDSUSTAINABLE GROWTH


Engagement with Diplomats &Heads of Multilaterals

Session One on Day 1 started with a presentation by PBC’s Centre of Excellence in Responsible Business

(CERB). Farwah Sharif outlined the rationale behind CERB’s establishment which is to promote the adoption of

responsible business practices, in line with PBC’s objective of fostering the growth of the formal sector. She

mentioned that CERB had over the past three years engaged 1000+ executives through webinars, 500+ in

workshops, 700+ in events and 1000+ through social media. In the process CERB had touched 250 businesses

and partnered the World Bank’s IFC, ACCA and the UNDP. Following her presentation, an agreement was

signed between the PBC and the IFC by Syed Yawar Ali and Mr. Nadeem Siddiqui, respectively the Chairman

of the PBC and the Country Head of the IFC. This agreement, the third partnership with IFC, is part of the

“Pakistan Investment Competitiveness” Project organised with the support of the Board of Investment and

UK’s DFID.

In Session 2 of Day 1, the PBC CEO made a presentation on the state of the economy and the need to revive

domestic manufacturing. This consisted of a Progress Report to the members on PBC’s “Make-in-Pakistan”

initiative. He especially mentioned the positives which in his view included an adjustment in the value of the

rupee, provision of gas to industrial units at regionally competitive rates, the availability of electricity though at

higher cost, a review of import tariffs to ensure that they are cascading in nature, the renegotiation of the

China Pakistan Free Trade Agreement through Phase II etc. On future advocacy on the Make-in-Pakistan

initiatives, the major areas identified were: long-term export policy, a policy framework for promoting the

development of regional and global Pakistani brands, diversifying Pakistan’s export basket and export markets,

integration of SMEs in value chains of exporters etc., and a review of the FDI policy to make it more export

oriented.


The panelists who took part in this discussion included: Ms. Teresa Sanchez, Country Manager IMF, Ms.

Androula Kaminara, Ambassador of the European Union to Pakistan, Mr. Paul Jones, Ambassador of the

United States of America and Mr. Illango Patchamuthu, Country Manager, The World Bank. The panel was

moderated by Mr Ehsan Malik, CEO of the Pakistan Business Council. The key takeaways included:

The IMF program is on course, the rupee is stable with a

clear message that the exchange rate will be market driven,

current account deficit is down, interest rates firmly linked

to inflation expectations, things are improving, but the

government needs to hold the line.

Pakistan’s GSP + review is due in January 2020 and though

some progress has been made in implementing the

conventions, some areas still need to be worked on.

Pakistan needs to increase lobbying in Brussels as a new EU

parliament has recently been elected and most MEPs are

new.

The US is now looking at Pakistan beyond AfPak and CPEC

and Pakistan needs to therefore make the necessary

adjustments. Pakistan needs to look at the market access

opportunities offered by the US GSP program, especially in

light of the withdrawal of GSP status for some major

competitors.

Pakistan may have improved 28 ranks in the EODB, however a lot more needs to be done especially

in the area of regulations as Pakistan is a heavily regulated economy and this needs to change.

Pakistan needs to urgently address urbanization, population growth, stunting and education to

achieve its potential.

Panel Discussion with Key Diplomatsand Multilaterals Heads


Dr Ishrat Husain briefed the members over lunch on the

institutional reforms being undertaken in Pakistan to reduce

the government’s footprint on the economy. Some of the

reforms for which cabinet approval has been obtained

include: reduction by 100 the number of government bodies

and entities, the induction of more specialists in the

government, especially in the technical cadre, ensuring

promotions of civil servants are dependent on performance

and competence as opposed to only seniority and increasing

the role of e-governance.

In the final session of Day 1, Dr Moeed Yusuf, the newly

appointed Special Assistant to the PM on national security

spoke about his role and the PM’s expectations. In this

session moderated by Syed Yawar Ali, Chairman PBC, Dr

Moeed laid bare the thinking behind the setting up of the

National Security Council (NSC) and his role as the Special

Assistant. The primary role of the NSC according to Dr

Moeed is identification of the major national security threats

faced by Pakistan. In Dr Moeed’s assessment the current

major threat to national security is economic vulnerability.

Based on his threat assessment, he stressed on the need for the private sector to play its role in

promoting economic growth, especially in the current geo-political scenario where trading with

its neighbors as a means for economic growth is not an option. Dr Moeed expressed his desire

to work with PBC on furthering his Council’s agenda.

Dr Ishrat Husain on InstitutionalReforms in Pakistan

Dr Moeed Yusuf on his role in theNational Security Council


PBC hosted a dinner in the evening of the 11th of December at which the Minister of Planning, Mr Asad

Umar was the keynote speaker. The dinner was arranged at the request of the Chinese Ambassador to

Pakistan with the objective of facilitating an interaction between the leading Chinese companies operating

in Pakistan and PBC members. The dinner was well attended with representation from 15 Chinese

companies operating in Pakistan in addition to the Minister Consular and Commercial Attaché from the

Chinese Embassy in Pakistan. In his keynote address Mr Asad Umar emphasized that Phase II of CPEC is

about private-to-private sector cooperation, Phase I was Government-to-Government cooperation and

that phase of CPEC is now concluding. He called on PBC members to come forward and sign joint

ventures with their Chinese counterparts and maximize the benefits from CPEC. From the Chinese side, in

addition to Dr. Wang Zhihua - Minister Counsellor (Economic & Commercial) - Embassy of People's

Republic of China, the others who spoke on the occasion included:

Dinner with Minister of Planning &Chinese Investors in Pakistan


Mr. Lv YanDeputy General Manager - China Road and Bridge Corporation

Mr. Wang HuaCEO and Chairman ofCMPak (Zong)

Dr. Wang ZhihuaMinister Counsellor (Economic & Commercial) - Embassy of People's Republic of China

Mr. Sun Yangjun Director Commercial - China Railway Group Limited (Pakistan)

Mr. Lv Yan - Deputy General Manager - China Road and Bridge Corporation, Mr. Wang Hua, CEO and

Chairman of CMPak (Zong) and Mr. Sun Yangjun - Director Commercial - China Railway Group Limited

(Pakistan). The Chinese speakers spoke of their desire to work with Pakistani companies to further build on

the relations between the two countries.


Session 2 of Day two was with Mr Zubair Gillani, Chairman

Federal Board of Investment (BOI). The Chairman BOI agreed

that BOI needs to change the perception that it only facilitates

foreign investors. On the Special Economic Zones (SEZ) Mr

Gillani agreed that a lot of work is required to operationalize

the SEZs and that the BOI is now prioritizing the SEZs based

on investor interest. He agreed with a suggestion that fiscal

laws currently in place discourage investments in industry in

general and in SEZs in particular and these need to be made

investor friendly. He also agreed with the suggestion that

Pakistan needs to develop SEZs in the plug-and-play mode to

attract FDI especially in the garment sector. The PBC CEO referred to PBC’s SEZ recommendations

and hoped that these would merit consideration by the BOI. Finally, the Chairman BOI informed the

audience that he had initiated a program to restructure and strengthen the BOI.

The 3rd Session on Day two was with Syed Shabbar

Zaidi, Chairman of the Federal Board of Revenue

(FBR). This session was moderated by Mr Shabbir

Diwan, PBC Director & Chair of the PBC Tax

Committee. The Chairman FBR started by stating that

the revival of Pakistan’s economy was in the revival of

its manufacturing sector, he continued by informing

the audience that 9 out of the 18 recommendations

made by PBC in the area of fiscal facilitation had been

accepted, and that these were in various stages of

implementation. The Chairman FBR requested

industries which felt that they were in low margin high volume businesses to approach the FBR

for a reduction in the rate of Minimum Turnover Tax (MVT). He further assured the documented

sector that the FBR would continue with its efforts to bring the undocumented /

under-documented sectors into the tax net to provide a level playing field for the domestic

sector especially the manufacturing sector.

Boosting Investment - Sess ion withMr Zubair Gillani , Chairman BOI

Syed Shabbar Zaidi – Chairman FBR


The 4th Session of Day two was with Mr Hammad Azhar, Minister

of State for Economic Affairs. Mr Azhar emphasized that Pakistan

following the FAFT conventions was in the interest of the formal

sector as FATF aimed to curtail the cash economy. He informed

the meeting that compliance with the FATF directives was an

ongoing activity and a lot still needs to be done to ensure that

Pakistan moves out of the gray-list.

Mr. Hammad Azhar, Minister forEconomic Affairs – Pakistan & the FATF

This session moderated by the PBC Vice-Chairman, Mr Saquib Shirazi saw the Adviser to the PM on

finance speaking in very candid terms about the challenges faced by the Ministry of Finance in

balancing the demands of a populist political government and those of the IMF program. He stated

that though some degree of macroeconomic stability had been achieved, it was important to ensure

that the hard-won stability was consolidated further. He commended the PBC members for taking a

realistic as opposed to a populist stand on the economic measures being implemented by the

government and requested for their continued support. He also requested the PBC to submit a list of

specific actions required to improve the business climate in the country.

Session with Dr Hafeez Shaikh,Adviser to the PM on Finance



Founder and former Chairman of the Pakistan Business Council.

Current Advisor to the Prime Minister on Commerce; Industry &

Production; and Textiles.

Member of the Federal Cabinet.

MEMBERS AND PAST OFFICE BEARERS Currently in the Government of Pakistan’s Economic Team

Mr. Razak Dawood

Founder and former Chairman of the Pakistan Business Council.

Current Minister for Planning.

Former Minister of Finance.

Member of the Federal cabinet.

Mr. Asad Umar

Former Chair of the Pakistan Business Council Macro-Economic Forum.

Current Advisor to the Prime Minister on Institutional Reforms and

Austerity.

Member of the Federal Cabinet

Dr. Ishrat Husain

Formerly Chair of the Pakistan Business Council Fiscal Reforms Forum.

Current Chairman of the Federal Board of Revenue.

Mr. Shabbar Zaidi

Founder, former Chairman and current Director of the Pakistan Business

Council.

Currently Special Assistant to the Advisor to the PM on Commerce and

Industries. Focussing on “Make in Pakistan”

Mr. Ali Habib


ABOUT THE PBC

The PBC is a private sector business policy advocacy forum composed of Pakistan’s largest businesses /

groups including multinationals that have a significant investment in and a long-term commitment to

the growth of Pakistan. Members turnover represents every ninth Rupee of Pakistan’s GDP and together

the members contribute 25% of the annual tax revenues and exports. More information about the PBC,

its members and its activities can be found on our website www.pbc.org.pk


Agro Industries

Cement

Chemicals / Fertilizer

Energy Engineering

Fast Moving Consumer Goods

Packaging Material Pharmaceuticals and Healthcare

Textiles

Total Members in Large-Scale Manufacturing

Financial service

Hospitality

Insurance

Logistics / Courier

Telecommunication

Utilities

Total Members in the Services Sector

Conglomerates

1

2

8

2

9

17

2

6

10

57

PBC currently has 81 members, whose businesses cover nearly all sectors of the formal economy. The

sector wise representation (in alphabetical order) is detailed below:

THE PBC MEMBERSBY SECTOR

Sector Member Companies

Large-Scale Manufacturing

Services

12

1

2

2

1

1

19

5


USA

UK

UAE

Switzerland

Japan

29 MNC’S FROM 13 COUNTRIES


29 MNC’S FROM 13 COUNTRIES

BahrainFrance

South Korea Hong Kong

Germany

Netherlands

TurkeySweden

8th Floor, Dawood Center, M.T. Khan Road,Karachi, Pakistan

T - +92 21 3563 0528 - 29F - +92 21 3563 0530

www.pbc.org.pk

the pakistan business council · acca and the undp and has recently signed another mou with the ifc...

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