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Pakistan and Saudi Arabia have agreed to strengthen economic ties, marking a significant step in the long-standing bilateral partnership between the two countries.
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ISLAMABAD: Pakistan and China on Saturday underscored China-Pakistan Economic Corridor (CPEC) has entered the new phase of high-quality development, greatly contributing to the socio-economic development in Pakistan.
“The two sides will continue to firmly advance the construction of CPEC, ensure timely completion of under-construction projects, focus on economic and social development, job creation and improvement of people’s livelihood, and further strengthen cooperation in Industrial Park, infrastructure development, science and technology, medical and health, agriculture, human resources training, with the aim to continuously unleash the great potential of CPEC to make it a hub of regional connectivity,” a joint press release said.
Both sides agreed on the need to build health, industry, trade, digital and green corridors.
Both sides reviewed with satisfaction the remarkable achievements of CPEC.
The two sides look forward to convening the 10th JCC meeting to jointly promote the high-quality development of the CPEC and move forward the high-quality construction of BRI.
Both reached a consensus to collectively take measures to safeguard their common interests and promote peace, prosperity and development in the region.
The reiteration was made during a third session of the foreign ministers’ strategic dialogue in Chengdu, capital city of Sichuan province, China.
During their talks, Foreign Minister Makhdoom Shah Mahmood Qureshi and State Councilor, Foreign Minister of China Wang Yi exchanged views on bilateral strategic, economic and security cooperation, besides other global and regional issues.
Both the sides also discussed COVID-19 pandemic, peace and reconciliation in Afghanistan and international and regional issues of mutual interest.
On the invitation of the State Councilor and Foreign Minister Wang Yi, Foreign Minister Shah Mahmood Qureshi paid a two-day visit to China. The foreign minister was accompanied by senior officials. The visit was part of the high-level exchanges between Pakistan and China.
Both sides reviewed their cooperation on regional and international issues at multilateral forums such as the United Nations, Shanghai Cooperation Organization and ASEAN Regional Forum, and agreed to deepen coordination and cooperation to safeguard mutual interests and uphold principles of fairness and justice.
“Both sides reaffirmed their commitment to the purposes and principles of the UN Charter, and support for multilateralism, free trade and win-win cooperation,” it was added.
Both sides underscored that a peaceful, stable, cooperative and prosperous South Asia was in the common interest of all countries. Both sides agreed on the need to settle disputes and issues in the region through dialogue on the basis of equality and mutual respect. The Pakistan side briefed the Chinese side on the deteriorating situation in Jammu & Kashmir, including its concerns, position and current urgent issues.
“The Chinese side reiterated that the Kashmir issue is a dispute left over from history between India and Pakistan, which is an objective fact, and that the dispute should be resolved peacefully and properly through the UN Charter, relevant Security Council resolutions and bilateral agreements. China opposes any unilateral actions that complicate the situation,” the joint press release said.
Both sides recalled that the enduring Pakistan-China friendship has reached the momentous milestone of the 70th anniversary of establishment of diplomatic relations, being enthusiastically marked in the two countries with holding of more than hundred celebratory events throughout this year, demonstrating warmth and deep sentiments of their unshakable fraternal bonds.
In further strengthening their all-weather strategic cooperative partnership and together charting course for the Pakistan-China community of shared future in the new era, both sides were committed to firmly implementing the consensus reached between their leaders, enhance mutual strategic trust, strengthen all-round cooperation, maintain momentum of high-level exchanges, further advance Belt and Road partnership, promote bilateral relationship to a higher level, and delivering greater benefits to both countries and the two peoples.
Extending felicitations to the Chinese side on the 100th anniversary of the founding of the Communist party of China, the Pakistani side recognized CPC’s immense contributions for the Chinese people, for China’s stellar rise at the world stage, and its unrivalled achievement of lifting 800 million people out of poverty.
The Pakistan side wished the Chinese government and people greater success in achieving the goal of socialist modernization in 2035 and building a modern, prosperous, beautiful, democratic, culturally advanced and harmonious socialist country in 2049, under the inspiring and visionary leadership of the CPC, with Comrade Xi Jinping at its core.
Stressing that peace and stability in Afghanistan was vital for socio-economic development, connectivity and prosperity in the region, both sides called on all Afghan stakeholders for comprehensive ceasefire, and work together in earnest to achieve broad-based and comprehensive, inclusive, negotiated political settlement.
Both sides reaffirmed their commitment to facilitate and support “Afghan-led and Afghan-owned” peace and reconciliation process for the early realization of a peaceful, stable, united and prosperous Afghanistan, which would firmly combat terrorism and live in harmony with its neighbours.
Both sides reaffirmed their support for the peaceful reconstruction of Afghanistan, their readiness to expand economic and trade ties, and support Afghanistan in enhancing its capacity for independent development.
Both sides reviewed with satisfaction their close cooperation in successfully controlling the spread of COVID-19, cooperation in protective and medical equipment, vaccine development and ensuring early post-pandemic economic recovery.
The Pakistan side thanked China for its steadfast support to the vaccination drive in the country, and setting up of vaccine finish facility at the National Institute of Health in Islamabad.
“Chinese side expressed its resolve to continue assisting Pakistan in strengthening its national health systems and dealing with adverse socio-economic impacts of the pandemic,” press release said.
Both sides believe that the study of origins of the SARS-CoV-2 was a matter of science, and should not be politicized. The joint report of the WHO-convened global study of origins of the SARS-CoV-2, published this March, has drawn an authoritative and scientific conclusion of related issues.
This joint report should be recognized, respected and preserved, and should be treated as the basis of the WHO next stage of the origin tracing study as well.
“We hope that the WHO can, together with international community, defend the scientific and serious study of origins of the SARS-CoV-2 and oppose the actions to politicize the issue, and safeguard the favorable atmosphere for global cooperation against the Covid-19 pandemic,” the press release quoted the sides.
Offering condolences on the loss of precious lives caused by torrential rains and flooding in Henan province, the Pakistan side expressed hope that with strenuous efforts of the Chinese government, normalcy would be restored soon and affected people would return to their homes.
Both sides vehemently condemned the terrorist attack in Dasu which caused loss of precious lives and injuries to the Pakistani and Chinese workers.
The Pakistan side conveyed its profound condolences and sympathies to the bereaved families, emphasized that the sacrifices of Chinese nationals would not be in vain, and that China-Pakistan partnership would emerge stronger through this test.
The Pakistan side promised to ensure medical treatment, care and comfort of the injured.
“Both sides expressed their firm resolve to expose the culprits and their reprehensible designs through the ongoing joint investigation, give exemplary punishment to the perpetrators, ensure comprehensive safety and security of the Chinese projects, nationals and institutions, and prevent recurrence of such incidents,” it was added.
Both sides agreed on continuing their unyielding support on issues concerning each other’s core national interests.
The Chinese side reiterated its firm support to Pakistan in safeguarding its territorial integrity, sovereignty and independence, independently choosing a development path based on its national conditions, striving for a better external security environment and playing a more constructive role on international and regional affairs.
The Pakistan side reiterated its commitment to the “One China Policy” and firm support to China on core issues of its national interest, such as Taiwan, Xinjiang, Tibet, Hong Kong and South China Sea.
Later, addressing a joint presser along with his Chinese counterpart, the foreign minister expressed satisfaction over the bilateral ties between the two countries.
He said on the issue of bilateral ties, they were satisfied that these were moving in the right direction.
All the strategic, economic and security cooperation between the two counties was moving ahead with determination, he said, adding that both sides in their bilateral meeting held today, co-shared their point of views on further strengthening of this cooperation.
He said their delegation level talks were held in a very friendly and cordial atmosphere in which both sides reiterated support to each other.
Qureshi assured the leadership of China that Pakistan and China ‘are friends and will remain as friends….let the world should know that we are trusted friends’. ‘Pakistan and China are on the same page’, he further added.
The foreign minister also thanked the Chinese leadership for their reiterated commitment to the issue of Jammu and Kashmir.
Qureshi demanded that India should revoke its unilateral and illegal actions of August 5 on Indian Illegally Occupied Jammu and Kashmir and restore its status.
He also expressed his gratitude to China for its firm support to Pakistan in dealing with Covid 19 and by supplying doses of coronavirus vaccines.
ISLAMABAD: The federal government has imposed a ban on purchase of motor vehicles for official use. The government imposed the ban under austerity measures.
The finance division in a circular said that financial constraints forced to take the step.
The government has taken austerity measures for fiscal year 2021/2022:
(i) There shall be complete ban on purchase of all types of vehicles. The ban shall not apply on purchase of motorcycles, student buses, ambulances and firefighting vehicles.
(ii) There shall be complete ban on creation of new posts except those required for development projects.
(iii) Privilege of periodical, magazines, newspapers etc. to the entitled officers will remain restricted to only one.
(iv) The government directed the principal account officers to ensure rationalized utility consumption. The expenditures on purchase of assets and maintenance should be bare minimum level.
(v) The government offices should use both sides of of paper for communications.
(vi) Officials should hold meetings through internet only. Officials can hold meeting physically with justifications.
The finance ministry constituted a committee to look into the needs of ministries and departments. The members of the committee:
(i) Additional Finance Secretary (Expenditure) (In Chair)
(ii) Senior Joint Secretary/ Joint Secretary (Expenditure-CGA) (Member)
(iii) Senior Joint Secretary/ Joint Secretary (Expenditure-concerned Ministry/Division) Finance Division (Member)
(iv) Representative of the concerned Ministry/Division /Department.(Member)
(v) Deputy Secretary (Expendpre-CGA) (Secretary)
KARACHI: Pakistan’s foreign exchange reserves have increased to $25.128 billion by week ended July 16, 2021.
The State Bank of Pakistan (SBP) on Friday said the weekly reserves have increased by $816 million.
The country’s foreign exchange reserves were at $24.312 billion a week ago.
The official reserves of the SBP increased by $845 million to $18.051 billion by week ended July 16, 2021. During the week the SBP received proceeds of $1.041 billion against Pakistan Euro Bonds. The official reserves were at $17.206 billion a week ago.
The reserves held by commercial banks fell by $29 million to $7.077 billion by week ended July 16, 2021. The commercial banks had foreign exchange reserves of $7.106 billion by week ended July 9, 2021.
ISLAMABAD – Pakistan has formally requested the Financial Action Task Force (FATF) to take immediate action against what it alleges to be India’s concerted efforts to politicize the international watchdog and influence decisions to place Pakistan on the grey list.
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ISLAMABAD – The federal government has officially announced the amount of diyat for the fiscal year 2021-2022, fixing it at Rs 4.26 million. This amount corresponds to the value of 30,630 grams of silver, as prescribed under Islamic injunctions and outlined in the Pakistan Penal Code (PPC).
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ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved increase in prices of three essential items.
Shaukat Tarin, Federal Minister for Finance and Revenue chaired the meeting.
Ministry of Industries and Production presented a summary regarding extension of the Prime Minister’s Relief Package-2020. The package has provided subsidies on five essential commodities from July 15, 2021 to September 30, 2021. The extension has been provided till the Enterprise Resource Planning (ERP) system becomes fully operational.
Moreover, the ECC also approved the revision in prices of three essential commodities namely Atta (20 kg bag) to Rs. 950, Ghee (per kg) to Rs. 260 and Sugar (per kg) to Rs. 85 respectively. The increase was granted because of increasing gap between the subsidized prices and the prevailing market prices.
The committee approved revision in prices of three essential commodities to rationalize provision of subsidies by the Utility Stores Corporation (USC).
Federal Minister for National Food Security and Research Fakhar Imam, Federal Minister for Energy Hammad Azhar, SAPM on Finance and Revenue Dr. Waqar Masood, SAPM on Power and Petroleum Tabish Gauhar, SAPM on Youth Affairs Usman Dar, Secretary Finance Division, Secretary Communication, Secretary M/o Industries and Production, Governor SBP, Chairman PTA and other senior officers participated in the meeting.
The ECC considered and approved a summary regarding the elimination of documents attestation fee for goods imported into Pakistan from Kenya as this Non-Tariff Measure (NTM). The decision by the Committee would facilitate trade between the two countries and enhance Pakistan’s market share in the region.
The ECC approved a summary regarding non-cash settlement for power sector re-lent loans against subsidies payable by the government amounting Rs.116 billion.
The ECC approved “Kamyab Pakistan Program”. A flagship program which shall extend micro-loans to entrepreneurs and farmers under “Kamyab Karobar” and “Kamyab Kissan” schemes respectively.
The program shall also provide low cost housing loans through NAPHDA. The Kamyab Pakistan Program also includes ongoing skill development program for educational and vocational training under the title “Kamyab Hunarmand”.
The Kamyab Pakistan Program is aimed at extending loans to 04 million households at the lowest strata, as registered with the National Socio Economic Registry (NSER) of Ehsaas. Loans worth Rs.0.5 million, Rs.0.150 million and Rs.0.2 million through Micro-Finance Providers for Kamyab Karobar and Kamyab Kissan at 0% mark up will be provided. The third component of the scheme is introduction of a new tier in Naya Pakistan Low Cost Housing Scheme wherein loans of Rs.2.7 million (for NAPHDA) and Rs.2 million (for Non-NAPHDA) projects will be given at subsidized rates.
The salient features of the Kamyab Pakistan Program include loan size of Rs.150,000 (per crop) for purchase of agricultural inputs. The commutative disbursement under the program would be Rs.1.6 billion over the period of 03 years. It shall benefit 30,00,000 families.
The ECC commended all concerned for working out such a detailed program aimed at “bottom-up approach” for reducing poverty as envisaged by the Prime Minister.
The Finance Minister stated that the consultative process was followed in working out modalities of the Kamyab Pakistan Program ensuring that all relevant stakeholders are on board and micro-loans shall be disbursed as per the given criteria.
The ECC also considered and approved the Draft Policy Directives related to Auction of Next Generation Mobile Services (NGMS) in Azad Jammu & Kashmir (AJK) as submitted by the Ministry of Information Technology and Telecommunication before the Committee. This is the first time that the NGMS will be auctioned in AJK and it will improve mobile broadband services in the region.
Moreover, ECC also decided that for the payment of the Auctioned licence fee, the method in-vogue in the earlier auction processes will be followed. Ministry of Maritime Affairs presented a summary regarding award of Engineering Consultancy Service contract for up-gradation of Port Qasim Authority (PQA) amounting to Rs.86.6 million.
The ECC approved the execution of the project. ECC allowed Post Qasim Authority, Karachi Port Trust and Gwadar Port Authority Boards to transfer their Marine assets to the Pakistan Marine and Shipping Services Company Private Limited (PMSSC), a subsidiary of Pakistan National Shipping Corporation.
The maximum rates to be charged by the Pakistan Marine & Shipping Services Company (PMSSC) from the Public Sector ports & harbours shall be determined from time to time by Ministry of Maritime Affairs through a notification in official gazette.
The Ministry of National Food Security and Research (M/o NFS&R) presented a summary regarding procurement of 200,000 cotton bales by TCP to promote cotton production and bring stability in the domestic market.
The ECC also approved formation of Cotton Price Review Committee (CPRC) with a mandate to review market price and propose intervention at fortnightly basis.
The ECC also approved a summary by the M/o Industries and Production for importing 200,000 metric tons of sugar to build strategic reserves and minimize the role of speculative elements in the domestic market. In case of need more reserves will be built through import, the ECC decided.
ECC approved the amendment in its earlier decision dated 19-02-2021 regarding the “Prime Minister’s” fiscal package for Agriculture in the wake of COVID-19 Kharif”. The package offered subsidy on DAP@1500Rs/acre for cotton and rice crops, during the Kharif Season 2021. Now according to the amendment, the farmers can avail subsidy on any phosphatic fertilizer according to their choice.
KARACHI: The foreign direct investment (FDI) into Pakistan has declined by 28.9 percent during fiscal year 2020/2021, the State Bank of Pakistan (SBP) said on Friday.
Inflow of FDI recorded at $2.059 billion during fiscal year 2020/2021. It was $2.316 billion in previous fiscal year.
Total foreign private investment declined by 11.1 percent to $2.058 billion during 2020/2021. It was $2.315 billion in previous fiscal year.
Inflow of portfolio investment in capital market increased to $211.5 million during fiscal year 2020/2021. It was an outflow of $281.7 million in preceding fiscal year.
However, the total inflows of foreign investment into Pakistan have registered 122.4 per cent increase during fiscal year 2020/2021.
The total inflows of foreign investment increased to $4.614 billion during fiscal year 2020/2021 as compared with $2.074 billion in the preceding fiscal year.
The foreign public investment registered a phenomenal increase to inflows of $2.555 billion during fiscal year under review as compared with an outflow of $241.3 million in the preceding fiscal year.
KARACHI: The State Bank of Pakistan (SBP) has said that the economic momentum is expected to accelerate further during FY22.
The optimistic outlook is premised on the expanding vaccine roll-out and relatively unhindered continuation of economic activity despite Covid-19, the SBP said in it’s the Third Quarterly Report on the State of Pakistan’s Economic for the Fiscal Year 2020/2021 released on Friday.
Temporary Economic Refinance Facility (TERF), which provides long-term lending for industrialization), the policy-led surge in construction and housing, and increased Public Sector Development Program (PSDP) spending, are also likely to be key growth drivers.
According to the report, there was growing evidence that the economic recovery gathered further momentum during the third quarter of FY21. The turnaround in the industrial sector, particularly large scale manufacturing (LSM), and the services sector, most notably in wholesale and retail trade, played a pivotal role.
In the agriculture sector, record output of four out of five important crops – namely wheat, rice, maize and sugarcane – offset the decline in cotton production. Further growth in high frequency demand indicators, such as local cement dispatches, Petroleum Oil and Lubricants (POL) and car sales, consumer financing, sales of Fast Moving Consumer Goods (FMCG), and power generation, reflected the accelerating rebound in economic activity. Against this backdrop, real GDP growth is provisionally estimated to be 3.9 percent for the full year, compared to a contraction of 0.5 percent in FY20.
These favorable outcomes were supported by the pro-active response of policymakers to the evolving pandemic. In addition to containment of the virus through smart lockdowns, targeted fiscal support while containing the deficit, a highly accommodative monetary policy stance, aggressive refinance facilities provided by the SBP to counter the health, employment and cash flow implications of the pandemic, as well as incentives and relief offered by the government and the SBP to households and businesses collectively lifted the economy out of last year’s Covid-induced recession.
Even as the economy rebounds strongly, stability in key macroeconomic indicators on the fiscal and external side were an additional source of comfort, as the current account and primary balance both remained in surplus during July-March FY21. The external account received significant support from workers’ remittances – which rose by US$ 4.5 billion to touch a record-breaking level of US$ 21.5 billion during July-March FY21 – as well as deferred interest payments on external debt through the G20 Debt Service Suspension Initiative (DSSI), curbs on international air travel, and lower global oil prices. Meanwhile, on the financing side, inflows from commercial, bilateral and multilateral sources were supplemented by new inflows under Roshan Digital Accounts, which crossed the US$ 1 billion mark in April 2021. Furthermore, the successful completion of the 2nd-5th IMF reviews unlocked US$ 500 million in direct financing from the Fund. Also, Pakistan reentered the international capital markets after a gap of over 3 years in early April 2021. As a result, SBP’s foreign exchange reserves rose to a three-year high of US$ 13.5 billion by end-March 2021, and the current account remained in surplus through the first three quarters for the first time since FY04.
The July-March fiscal deficit of 3.5 percent was lower than the 4.1 percent deficit in the comparable period last year. This was mainly attributed to a rationalization of spending, particularly a slowdown in non-priority current expenditure, and a robust increase in taxes. However, interest payments remained a significant burden, and continued to constrain the fiscal space for development spending. Besides the lower fiscal deficit, the revaluation gains from PKR appreciation and DSSI relief contributed to a reduced pace of debt accumulation during July-March FY21 compared to the same period last year.
Average headline inflation was lower than last year, both for the July-March FY21 period and for Q3-FY21. The third quarter outturn was mainly attributable to a deceleration in January 2021, led by the food and poultry groups. However, rising prices of electricity, sugar, edible oil, cotton cloth and readymade garments drove up inflation during February and March 2021.
Credit to the private sector was nearly 50 percent higher during July-March FY21 compared to last year. The third quarter witnessed a slowdown though, primarily due to retirements of short-term loans. By contrast, the SBP’s concessionary refinance schemes, such as the Temporary Economic Refinance
Facility (TERF), continued to spur the off take of fixed investment loans. Through the third quarter, loans of Rs 426.0 billion have been approved, of which Rs 74.0 billion have been disbursed under TERF, which bodes well for investment and growth going forward. Consumer financing also picked up considerably during the period compared to last year. In addition to auto and personal loans, there was a notable upturn in house financing as banks responded to the SBP’s mandatory targets to increase their housing and construction finance portfolios to at least 5 percent of the banks’ private sector credit by end-December 2021.
While the economy made an encouraging recovery during FY21, certain structural vulnerabilities continue to merit attention.
First, in the agriculture sector, the secular decline in cotton production needs to be addressed. Timely availability of pest-resistant seed varieties and further support from agriculture extension departments, particularly to promote the adoption of climate-smart farming practices, could enable better outcomes.
Second, in the external sector, the widening of the merchandise deficit needs to be contained to a sustainable level. Greater self-sufficiency in agriculture, through adoption of better farming and crop management practices, and maintenance of adequate stocks can reduce the need to import commodities (such as wheat, sugarcane and cotton) to bridge domestic shortfalls or counter temporary price pressures. Discouraging the import of luxury consumer items and promoting greater diversification of exports, in terms of value-added items and destinations, could also help.
Third, efforts are required to mitigate food inflation, triggered largely by supply-side issues in the management of agriculture commodities. This may be achieved through better coordination among federal and provincial food departments, provision of reliable data, vigilant monitoring of stocks and food prices, and timely import of commodities.
Fourth, the twin burdens of debt servicing and a narrow revenue base are leaving less fiscal room for public investment. This calls for an acceleration of efforts to broaden the tax base, increase documentation in the economy, improve public financial management, restructure loss-making public sector enterprises, and reduce circular debt of the power sector.
KARACHI: The foreign exchange reserves of the country have declined by $102 million for the week ended on July 09, 2021, State Bank of Pakistan (SBP) said on Thursday.
The country’s foreign exchange reserves fell to $24.311 billion by the week ended July 09, 2021 as compared with $24.415 billion by week ended July 02, 2021.
The foreign exchange reserves of the SBP came down by $26 million to $17.205 billion by week ended July 09, 2021 as compared with $17.231 billion a week ago.
The foreign exchange reserves held by commercial banks fell by $78 million to $7.106 billion by week ended July 09, 2021 as compared with $7.184 billion a week ago.