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  • Cabinet renews aviation licenses of four airlines

    Cabinet renews aviation licenses of four airlines

    ISLAMABAD: The Federal Cabinet on Tuesday approved the renewal of aviation licenses of four airlines under the National Aviation Policy 2019.

    Prime Minister Imran Khan chaired the meeting of the federal cabinet in Islamabad.

    On the recommendation of the Ministry of Aviation, the Cabinet approved the renewal of aviation licenses of M/S SERENE AIR, M/S AIRBLUE, M/S PIACL and M/S PRINCELY JETS under the National Aviation Policy 2019.

    Federal Minister Asad Omar briefed the Cabinet on the new variant of COVID-19, Omicron. The meeting was informed that the new variant originated in Africa. According to initial reports, the rate of spread is very high. The cabinet called for the implementation of COVID SOPs such as use of mask in public places, social distancing, and vaccinations for public safety.

    The Cabinet was briefed regarding the introduction of an electronic voting machine and the empowerment of Overseas Pakistanis to vote. Federal Minister Shibli Faraz gave a briefing on procurement of Electronic Voting Machines, training of staff, responsibilities of concerned agencies, public awareness campaign and timely delivery. The cabinet expressed grave concerns over the release of a video of alleged vote-buying during the by-elections in N.A 133. The cabinet said such illegal actions were anti-democratic.

    Keeping in view the transparency, the Cabinet directed the concerned departments to clarify about the audit report on the package for COVID-19.

    Advisor for Finance presented a comparative review of the prices of essential commodities to the Federal Cabinet.

    Weekly inflation fell to 0.67%. Prices of 5 Commodities have seen a reduction trend. The Cabinet was informed that apart from the prices of ghee and tea leaves in the region, prices of all other household items are lower in Pakistan.

    These items include flour, grams, dal mash, dal mung, tomato, onion, chicken and petrol. The Cabinet was informed that the prices of flour, sugar, lentils and gram lentils in Sindh are much higher than other provinces. The Cabinet expressed grave concerns over the rising prices of essential commodities in Sindh.

    Petroleum Division briefed the Cabinet on the vacancies of MD and CEO in the organizations under the division. The Cabinet was informed that at present 04 posts are vacant on which appointment process is in progress.

    The Cabinet, on the recommendation of the Ministry of Aviation, approved the delimitation of high-rise buildings around airports under the Civil Aviation Authority Rules. The height limit of buildings in Islamabad Blue Area has been fixed at 1000 feet. The decision will also help prevent the rampant spread of urban boundaries, save vegetables and preserve agricultural land.

    On the recommendation of the Ministry of Commerce, the Cabinet allowed the staff stationed at the Pakistani Embassy in Tehran to import personal vehicles on repatriation under the Hardship Policy.

    On the recommendation of the Ministry of Interior, the Cabinet approved to increase the visa period from 120 days to 150 days for those coming to Pakistan from Tablighi Jamaat from abroad. The Cabinet also approved to grant 45 days Visa on Arrival for Tablighi Jamaat. Visas can be obtained through the online visa portal.

    Cabinet approved procedure for appointment of EOBI (Employees Old-Age Benefits Institution) Chairman. This appointment will be carried out under the Competitive Process of Management Position Scale Policy 2020.

    Cabinet on the recommendation of the Ministry of Overseas Pakistanis postponed approval to issue Overseas Employment Promoter Licenses. The Cabinet directed that a procedure be worked out within a week to review the work of these promoters. Special care should be taken that promoters should not be illegally charging extra money from those travelling abroad.

    The Cabinet ratified the decisions taken at the meeting of the Committee on Institutional Reforms held on 12 November 2021. The meeting recommended the reorganization of the Pakistan Gems and Jewelery Development Company.

    The Cabinet ratified the decisions taken at the meeting of the Committee on Energy held on 18 November 2021.

    The Committee on Energy had recommended Gas Load Management Plan for Winter 2021-22 and setting up of Oil Depot at Kemari Karachi. Gas Load Management Plan for Winter 2021-22:-

    Domestic gas will be reserved for domestic consumers only because of its low cost. The CNG sector will be closed from 01 December 2021 to 15 February 2022. Gas supply to IPPs and fertilizer factories will continue.

    Gas supply to export sector industries will continue.

    Power plants running on LNG will be provided 5 per cent additional gas.

    Electricity prices have been reduced for domestic consumers in winter (Rs. 12.96 per kWh) to meet the gas shortage.

    Gas saved from CNG, Cement and Captive Power will be used for domestic consumption.

    A public awareness campaign is being launched to save gas.

    On the recommendation of the Ministry of Commerce, the Cabinet approved the import of MONTANIDE OIL from France for the treatment of Foot-and-Mouth disease in cattle in Punjab.

    On the recommendation of the Ministry of Information and Broadcasting, the Cabinet approved setting up of a selection board for the appointment of Chairman ITNE and Chairman Press Council of Pakistan. The Selection Board for Chairman ITNE will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Grade 21 Representatives of Establishment Division and Ministry of Law. The Selection Board for the Chairman Press Council of Pakistan will consist of the Minister of Information, Secretary Information, Additional Secretary Information, Representatives of Establishment Division and Ministry of Law.

    Cabinet approved the appointment of Muhammad Saleem as Chairman Privatization Commission.

    Federal Minister for Industries and Production gave a detailed briefing to the Cabinet on the current stock and prices of fertilizers in the country. The meeting was informed that this year the fertilizer companies released 53 per cent more fertilizer to the dealers in Sindh as compared to the previous year, due to which there was shortage of urea in Punjab and other areas and the price had gone up.

    However, on the directions of the Prime Minister, measures were taken to reduce this disparity and against hoarders, which resulted in an average reduction of Rs. 400 per sack.

    At present a sack of urea is available in Gujranwala for Rs. 1850. There is a surplus of 200,000 tons of fertilizer compared to the domestic demand. The Cabinet was informed that an online portal has been set up to monitor the supply of fertilizers through which the federal government, provinces and all district administrations can monitor the movement and stock of fertilizers.

    Punjab has taken several steps since November 13 to curb the hoarding of fertilizers. Among them 347 FIRs, 244 arrests, 21111 inspections, 480 warehouse seals and fines of Rs 2.79 crore have been imposed.

    In addition, control rooms have been set up in each district where complaints related to shortage of fertilizers, hoarding and profiteering can be lodged. Checkpoints have been set up at provincial borders to curb smuggling. Amendments are being made to the relevant laws against hoarding and profiteering in which informants will be rewarded in proportion to the confiscated property.

    The Cabinet ratified the decisions taken at the meeting of the Economic Co-ordination Committee held on November 29, 2021. Approval to hold a special meeting of OIC Foreign Ministers in Pakistan. Approval of 50,000 tons of wheat aid to Afghanistan.

    Cabinet to announce major relief in prices
  • Headline inflation surges by 11.5% in November 2021

    Headline inflation surges by 11.5% in November 2021

    ISLAMABAD: The headline inflation based on Consumer Price Index (CPI) has increased by 11.5 per cent on a Year-on-Year (YoY) basis in November 2021, the Pakistan Bureau of Statistics (PBS) said on Tuesday.

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  • Pakistan donates 50,000MT wheat to Afghanistan

    Pakistan donates 50,000MT wheat to Afghanistan

    ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved a donation of 50,000 metric tons of wheat to Afghanistan.

    The Federal Minister for Economic Affairs Division (EAD) Omar Ayub Khan chaired the ECC meeting and took several important decisions.

    Federal Minister for Energy Hammad Azhar, Abdul Razak Dawood Advisor to Prime Minister on Commerce, Textile, Industries & Production and Investment, Federal Secretaries and other senior officers participated in the meeting.

    The ECC considered the summary submitted by the Ministry of National Food Security & Research approved the proposal for the donation of 50,000 M. Tons of wheat to Afghanistan. ECC further directed the Finance Division to provide funds for the purpose on an actual cost basis.

    The ECC also recommended relaxation of the ban on the export of wheat/wheat flour to Afghanistan to the extent of the instant proposal with the direction that the Ministry of National Food Security and Research may inform the Federal Cabinet of the ratio for mixing of local and imported wheat in case export of wheat flour is required.

    On a Summary tabled by the Ministry of Foreign Affairs regarding “Extraordinary Session of the OIC Council of Foreign Ministers (CFM) in Pakistan” the ECC approved two Technical Supplementary Grants (TSGs) for the purpose during CFY 2021-22 i.e., (i) Rs.233.342 million in favor of the Ministry of Foreign Affairs and (i) Rs 64.2 million in favor of the Interior Division.

    ECC approves cash reward for promotion of IT exports
  • SBP signs $3bn deposit agreement with Saudi Fund

    SBP signs $3bn deposit agreement with Saudi Fund

    KARACHI: State Bank of Pakistan (SBP) on Monday signed an agreement for a deposit of $3 billion from Saudi Fund for Development (SFD).

    The SBP in a statement said that a deposit agreement between the Kingdom of Saudi Arabia, represented by the Saudi Fund for Development (SFD), and the Government of the Islamic Republic of Pakistan, represented by the State Bank of Pakistan (SBP), was signed on Monday by the Chief Executive Officer of SFD, H.E. Sultan Bin AbdulRahman Al-Marshad and the Governor SBP, Dr. Reza Baqir at the State Bank of Pakistan in Karachi, Pakistan.

    Under this deposit agreement, SFD shall place a deposit of USD 3.0 billion with SBP.

    Saudi Arabia places $3bn with Pakistan’s central bank

    The deposit amount under the agreement shall become part of SBP’s Foreign Exchange Reserves. It will help support Pakistan’s foreign currency reservesand contribute towards resolving the adverse effects of the COVID-19 pandemic.

    The deposit agreement reflects the strong and special relationship between the Kingdom of Saudi Arabia and Pakistan and will further augment the economic ties between the two brotherly countries, the SBP said.

    PM Imran thanks Saudi assistance; dollar retreats
    Pakistan’s forex reserves fall by $776 mn in one week
  • Presidents of Pakistan, Iran discuss trade, economy

    Presidents of Pakistan, Iran discuss trade, economy

    ISLAMABAD: The president of Pakistan Dr. Arif Alvi and the president of Iran Seyed Ebrahim Raisi on Sunday discussed bilateral trade and economy.

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  • Pakistan’s forex reserves fall by $776 mn in one week

    Pakistan’s forex reserves fall by $776 mn in one week

    KARACHI: Pakistan’s foreign exchange reserves have declined by $776 million during a week owing to external debt repayment, the State Bank of Pakistan (SBP) said on Thursday.

    The country’s foreign exchange reserves fell to $22.774 billion by the week ended November 19, 2021 as compared with $23.55 billion a week ago.

    The reserves held by the SBP fell by $691 million to $16.254 billion by the week ended November 19, 2021 as compared with $16.945 billion a week ago. The central bank attributed the decline in its reserves to external debt repayment.

    The foreign exchange reserves held by the commercial banks also came down by $85 million to $6.52 billion as compared with $6.605 billion a week ago.

    Pakistan’s foreign exchange reserves slip to $23.55 bn
  • PM Imran launches incentive program for remittances

    PM Imran launches incentive program for remittances

    KARACHI: Prime Minister Imran Khan on Thursday launched an incentive program for overseas Pakistanis sending remittance to their homeland.

    The incentive program namely Sohni Dharti Remittance Program (SDRP) offered jointly by the State Bank of Pakistan (SBP), Ministry of Finance and financial institutions.

    SDRP is an innovative program designed to incentivize Pakistani workers abroad to send remittances to Pakistan through banks and exchange companies and earn reward points.

    These reward points could then be used to avail of different benefits offered by partner organizations.  SDRP can be accessed conveniently from anywhere in the world through a mobile application.

    In his address as the Chief Guest, the Prime Minister thanked the overseas Pakistanis for posing confidence in the bright future of their homeland by sending record high remittances of over $29 billion in the last fiscal year 2020/2021 and continuing the trend in FY22.

    The Prime Minister noted that his Government has always encouraged and appreciated the efforts of Overseas Pakistanis through various initiatives and programs.

    He especially mentioned the incentives like making remittances transfer free of cost, providing free airtime for remittances received through mobile wallets and covering the marketing cost of remittance service providers.

    The Prime Minister congratulated the State Bank of Pakistan (SBP), Ministry of Finance (MoF), financial institutions, participating public sector entities (PSEs) and all other stakeholders as without their efforts the launch of this remittance incentive program would not have been possible.

    He termed the launch of SDRP as a tribute to the Pakistani workers abroad who have been contributing in the development of the country by sending their hard-earned money back to Pakistan.

    He also appreciated the concept of giving incentives through a digital application for sending remittances via official channels.

    Governor SBP, Dr. Reza Baqir in his welcome address expressed heartfelt gratitude to the Prime Minister for his continuous interest and guidance in developing ways to facilitate the Overseas Pakistanis and workers abroad.

    Dr. Baqir elaborated that SohniDharti Remittance Program is another outcome of the PM’s vision. Referring to earlier initiatives, he said that Roshan Digital Account and the Naya PakistanCertificates have been huge successes and the PM’s support has played an instrumental role in it.

    Adding further, he said that another initiative like the Mera Pakistan MeraGhar scheme providing low-cost housing finance for first-time homeowners is another example where the PM’s vision and support have led to a significant takeoff of housing finance in the country, which had otherwise been negligible.

    Dr. Reza Baqirsaid that he was delighted and privileged to announce the launch of SDRP, which is an excellent combined effort of the Government of Pakistan, SBP, financial institutions and other organizations.

    Divulging the details, he disclosed that all home remittances sent from anywhere in the world through legal channels are eligible for inclusion in the SDRP. Besides, funds received in Roshan Digital Accounts which are consumed locally through conversion, and thus become non-repatriable, also qualify for inclusion in the program.

    The Governor termed the launch of SDRP another step towards digitalization and financial inclusion that would play a significant role in the digital onboarding of Overseas Pakistanis and their beneficiaries in Pakistan. The mobile application of SDRPis available at both Google android and Apple IOS platforms. He took the opportunity to appreciate the participating banks, PSEsand other stakeholders in this regard as it was due to their hard work that this initiative finally saw the light of the day.

    Adviser to the Prime Minister on Finance and Revenue Mr. Shaukat Tareen congratulated SBP, PSEs and other relevant stakeholders for implementing the SDRP as a technology-based solution. He observed that the establishment of Pakistan Remittance Initiative in 2009 was a decision that has worked quite effectively to integrate country’s financial institutions with the ones abroad to help the Pakistani diaspora in sending remittance to their families in Pakistan in a very efficient and cost-effective manner.

    Under the SDRP, if an individual sends remittance to the limit of USD10,000 or equivalent in one fiscal year, then he/she will be awarded one percent as a reward and allotted a green card category. Similarly, for remittances sent by an individual between USD10,000 and USD30,000 or equivalent, the remitter would be given 1.25 percent as reward and classified into gold card category. Lastly, for remittances of more than USD30,000 or equivalent, he/she will be awarded 1.5 percent as reward and allotted a platinum card category.

    The reward points can be redeemed by remitters and their beneficiaries for availing free of cost services from eight (08) participating PSEs at the moment. The services offered include international tickets by Pakistan International Airlines (PIA) and the provision to pay for extra luggage on international flights of PIA.

    Along with this, Federal Board of Revenue (FBR) has allowed Overseas Pakistanis to pay duty on import of mobile phone and vehicles.  The National Database & Registration Authority (NADRA) will provide services related to the renewal of CNIC/NICOP and along with this, they can renew their passports without any hassle. Overseas Pakistanis can avail life insurance premium payment through state life insurance services and a facility to pay schools’ fee of Overseas Pakistanis Foundation schools.

    Moreover, overseas Pakistanis will be able to make purchases through a network of utility stores across the country. Federal Investigation Agency (FIA) will provide preferential services to overseas Pakistanis under the umbrella of this program by installing separate counters and provide priority clearance whereas Civil Aviation Authority (CAA) will ensure the placement of standees and banners for the promotion of this initiative.

    Pakistan offers huge potential for e-commerce: PM Imran
  • SBP expects fiscal deficit up to 7.3% in FY22

    SBP expects fiscal deficit up to 7.3% in FY22

    KARACHI: The State Bank of Pakistan (SBP) has released its annual report for 2020/2021, outlining projections for the fiscal deficit and economic indicators for the financial year 2022 (FY22).

    (more…)
  • Focus on increasing investment in export industry: PM

    Focus on increasing investment in export industry: PM

    ISLAMABAD: Prime Minister Imran Khan on Tuesday said that the government has focused on increasing investment in the export industry to create employment opportunities.

    The prime minister chaired a review meeting of PM’s Priority Sectors which was held in Islamabad.

    The prime minister said that the government is taking steps on a priority basis to increase economic activity in the country and is focused on increasing investments in the export industry for creating employment opportunities.

    All government institutions are working together to provide a conducive environment for investors. The government is taking steps to speed up work on Phase II of CPEC.

    The meeting was given a detailed briefing on the progress of Phase II of the China-Pakistan Economic Corridor (CPEC). The meeting was informed that work on gas and electricity supply in Rashakai, Dhabeji, Allama Iqbal, and Bostan Special Economic Zones (SEZs) is in full swing.

    Electricity and gas are mainly available for the construction of industries, while the rest of the required electricity and gas will be supplied with further development of industries.

    In this regard, Plug and Play Model have been proposed by CPEC Authority, which is being worked on.

    Under the model, all the requirements of the investors will be met through one window operation to ensure the speedy construction of industries in these areas.

    At the same time, the Board of Investment is working on a portal to provide investors with information related to the construction of industries, approvals from various institutions, and other ancillary information, which will be launched soon.

    The meeting was also informed that a comprehensive system has been launched to review the progress of projects under CPEC and to expedite the development work.

    In addition, steps are being taken to increase investment in SEZs by identifying export industries. In the agriculture sector, not only work on corporate farming is in full swing, but also agreements are being made to increase the exports of the sector.

    The Prime Minister directed to complete all the steps related to CPEC Phase II within the stipulated time. The meeting was attended by Federal Ministers Asad Umar, Hamad Azhar, Advisors Shaukat Fayyaz Tareen, Moeed Yousuf, Special Assistant Dr Shahbaz Gill, Chairman CPEC Khalid Mansoor, Chairman Board of Investment Azfar Ahsan, and relevant senior officers.

    PM Imran launches tax monitoring ‘track, trace’ system
  • IMF Board to approve $1.059bn by Jan 12, 2022: Tarin

    IMF Board to approve $1.059bn by Jan 12, 2022: Tarin

    ISLAMABAD: Shaukat Tarin, Adviser to Prime Minister on Finance and Revenue, on Monday said that staff-level agreement has been finalized and IMF executive board would approve the tranche by January 12, 2022.

    The adviser said an agreement between Pakistan and International Monetary Funds (IMF) under Extended Fund Facility (EFF) worth $1.059 billion had been finalized.

    The adviser said that Pakistan and IMF had reached the US$1.059 billion agreement up to staff level and now the agreement was in the executive board which would be approved by the board by January 12, 2022.

    He said this while addressing to a press conference along with Minister for Energy Muhammad Hammad Azhar and Chairman Federal Board of Revenue (FBR) Dr Muhammad Ashfaq Ahmed.

    Tarin said that after the signing of this agreement between Pakistan and the IMF, the door of economic cooperation would be opened for Pakistan in various international economic institutions including the World Bank and the Asian Development Bank.

    As a result, there was potential for further improvement in the country’s economy in the future, he added.

    He said that the conditions proposed by the IMF were Rs 700 billion in taxes but the government agreed to Rs 350 billion.

    “We have saved fertilizers, food items and other things from taxes,” he said.
    Replying to a question regarding Fiscal Consolidation, he said that along with savings in many places, the Public Sector Development Program (PSDP) would be reduced from Rs 900 billion to Rs 700 billion and some more steps would be taken.

    Apart from the agreement with the IMF, we have set a tax revenue target of 5.8 trillion, he said.

    The government is optimistic about the tax revenue target as we are still seeing a 36 percent increase in tax revenue over the previous year, he added.

    Tarin said that after this program, the government would adjust the fiscal discipline, including the State Bank of Pakistan Act.

    He said that the government had agreed on some issues with the IMF in the previous review and some further discussions were held on it but due to the hard work of our economic team, this agreement was made possible.

    He said that to maintain energy prices, fiscal discipline and tax revenue collection were very important for the government which was working on it.

    He said that inflation was a global issue and it was due to the disruption of the global supply chain.

    He said that the IMF had agreed on public finance reforms, tax reforms and simplification. The IMF had also agreed to provide targeted subsidies, as well as to continue reforms, he added.

    Minister for Energy Hammad Azhar said that the International Monetary Fund (IMF) had acknowledged the government’s remarkable work in the energy sector as despite capacity payment, circular debt witnessed sharp decrease.

    The minister said the base tariff was increased as per the agreement. There would be no effect on both Winter Seasonal Energy Package and Industrial Energy Package due to the agreement, he said.

    Both the packages would continue as at Rs 12.96 per unit, he said. Hammad said prices of essential commodities witnessed sharp increases across the globe due to COVID-19 pandemic.

    He said the entire negotiation team led by the Adviser on Finance Shaukat Tarin deserved appreciation. He said the agreement would bring further stability in the country’s economy.

    IMF outlines actions for Pakistan to release $1.059bn