100 percent increase in paid-up capital limit demanded

Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and many other traders and industrialists bodies have again approached the government for 100 percent increase in paid-up capital ceiling for private limited companies. They argue that the concession would help the import of industrial machinery and plants for expansion of their units for additional production.
Sources said the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in its letter addressed to Prime Minister Shaukat Aziz, said that 100 percent increase in paid-up capital was inevitable, to facilitate the private limited companies in getting state-of-the-art machinery, for their industrial units to become efficient in today''s world, when they have to compete with countries such as China, Turkey and Japan, to increase their exports.
The FPCCI wants that the Prime Minister should take personal interest and direct the Securities and Exchange Commission of Pakistan (SECP) to amend its rules to increase the limit of paid-up capital for private limited companies.
Sources said that the FPCCI raised the issue when its representatives had held a meeting with Central Board of Revenue (CBR) Chairman Yousaf Abdullah last week, to apprise him that low ceiling of paid-up capital was a major irritant in private sector investment and the SECP should amend its rule to increase it to over 100 percent.
Sources said FPCCI and many other traders and industrialists bodies such as Lahore Chamber of Commerce and Industries (LCCI), Sialkot Chamber of Commerce and Industries (SCCI) and Sarhad Chambers of Commerce and Industries (SCCI) had also demanded 100 percent increase in paid-up capital limit for private limited companies in their budgetary proposals and they expected positive response in budget announcement.
But, their demand remained unheard. This shocked the traders and industrialists bodies, which termed the demand in line with the government policy of allowing them maximum expansion for additional production to get more surpluses for exports.
These bodies had apprised the government that low paid-up capital ceiling for private companies was hampering their expansion, as it was not practically possible to import high-tech machinery for big expansion within the limit. These organisations had termed this area as a major irritant in investment in the country.
They wanted that the government should direct the Securities and Exchange Commission of Pakistan (SECP) to amend the rules, in order to increase the limit substantially, so that the private sector could import modern technology plant and machinery for massive expansion to help Pakistan achieve sound industrial base to meet upcoming challenges of the WTO. The demand is also in line with the government policy of promoting private sector to take the role of engine in the national economy and play a vibrant role to get Pakistan more shares in the world market.