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  • Pak-Iran trade to start soon through Gwadar Port: Bajwa

    Pak-Iran trade to start soon through Gwadar Port: Bajwa

    ISLAMABAD: Work for Iran’s trade through the Gwadar Port (in and out) is in progress and the trade will start soon through the port, Chairman China Pakistan Economic Corridor (CPEC) Authority Lt. Gen. (Retd) Asim Saleem Bajwa said on Monday.

    “The Ramadan-Gabd crossing point near Gwadar is active and fully functional now, fencing work with Pakistan-Iran border is going on rapidly and new border markets are being established at the crossing points,” he said adding the smuggling to and from Iran is decreasing due to increase in regulated trade.

    According to state media, the Chairman said after completion of development works of Gwadar Port and first phase of Gwadar Free Zone, Prime Minister Imran Khan was going to perform the ground breaking of second phase of the Zone.

    He said as compared to the first phase which comprised of 60 acres of land, the second phase would be a huge project comprising of 2200 acres of land.

    Chairman Bajwa said around 7 to 8 big Chinese investors from Shanghai would also participate in the ground breaking ceremony where they would make commitments in Gwadar Zone and inform about their future plans in Pakistan.

    He said some 46 enterprises were engaged in the Free Zone phase-I while 12 factories were being established out of them three were completed.

    He informed that the traffic at the port was increasing everyday and last year the trade volume increased by hundreds of times as 60,000 MT of cargo was transported during the year 2020-21 compared to only 1300 MT in the preceding year.

    Besides, he said five LPG vessels were berthed at the Gwadar Port.In future, he said the cargo volume would increase with even higher pace as interest for transshipment and industrialization was increasing with every passing day.

    He said the Prime Minister would also sign an accord for installation of desalination plant in the city with capacity of 1.2 million gallons per day. He said the project would complete within a year and this would be a gift from the Chinese government.

    Furthermore, he said another water desalination plant with capacity of five million gallons per day was also included in the Prime Minister South Balochistan package.

    Provision of basic facilities including electricity, water and health was the prime focus of Prime Minister Imran Khan, he added.

  • Consumer prices inflate by 9.7 percent in June 2021

    Consumer prices inflate by 9.7 percent in June 2021

    ISLAMABAD: The inflation based on Consumer Price Index (CPI) has increased by 9.7 percent on year-on-year basis in June 2021 as compared to an increase of 10.9 per cent in the previous month and 8.6 per cent in June 2020, Pakistan Bureau of Statistics (PBS) said on Thursday.

    On month-on-month basis, it decreased by 0.2 per cent in June 2021 as compared to an increase of 0.1 per cent in the previous month and an increase of 0.8 per cent in June 2020.

    CPI inflation Urban, increased by 9.7 per cent on year-on-year basis in June 2021 as compared to an increase of 10.8 per cent in the previous month and 7.6 per cent in June 2020. On month-on-month basis, it decreased by 0.4 per cent in June 2021 as compared to an increase of 0.2 per cent in the previous month and an increase of 0.7 per cent in June 2020.

    CPI inflation Rural, increased by 9.7 per cent on year-on-year basis in June 2021 as compared to an increase of 10.9 per cent in the previous month and 10.0 per cent in June 2020. On month-on-month basis, it decreased by 0.1 per cent in June 2021 as compared to a decrease of 0.03 per cent in the previous month and an increase of 1.0 per cent in June 2020.

    Sensitive Price Indicator (SPI) inflation on YoY increased by 17.6 per cent in June 2021 as compared to an increase of 19.7 per cent a month earlier and an increase of 11.5 per cent in June 2020. On MoM basis, it decreased by 0.4 per cent in June 2021 as compared to an increase of 0.8 per cent a month earlier and an increase of 1.4 per cent in June 2020.

    Wholesale Price Indicator (WPI) inflation on YoY basis increased by 20.9 per cent in June 2021 as compared to an increase of 19.4 per cent a month earlier and an increase of 0.9 per cent in June 2020. WPI inflation on MoM basis increased by 0.9 per cent in June 2021 as compared to an increase of 0.3 per cent a month earlier and a decrease of 0.3 per cent in corresponding month i.e. June 2020.

  • National Assembly may pass Finance Bill 2021 on June 29

    National Assembly may pass Finance Bill 2021 on June 29

    ISLAMABAD: The National Assembly will meet on Tuesday June 29, 2021 in which Shaukat Fayaz Ahmed Tarin, Minister for Finance and Revenue to move the Finance Bill 2021 with certain amendments for approval from the house.

    A notification issued by the National Assembly Secretariat stated that the assembly will meet on Tuesday June 29, 2021 at 11:30AM.

    Finance Minister Shaukat Tarin to move that a bill to give effect to the financial proposals of the federal government for the year beginning on the first day of July 2021 and to amend certain laws [The Finance Bill, 2021], be taken into consideration at once.

    “Further, the finance minister to move that a bill to give effect to the financial proposals of the federal government for the year beginning on the first day of July, 2021 and to amend certain laws [The Finance Bill, 2021], be passed,” according to the notification.

  • FATF retains Pakistan in grey list

    FATF retains Pakistan in grey list

    ISLAMABAD: The Finance Action Task Force (FATF) on Friday kept Pakistan in ‘grey list’ despite the country has made significant progress of addressing 26 action plan out of 27.

    FATF President Dr Marcus Pleyer in a press conference announced that Pakistan will continue to remain on the increased monitoring list, also known as the grey list.

    Admitting the performance of the country FATF President Dr Marcus Pleyer said: “Pakistan has made significant progress and it has largely addressed 26 out of 27 measures.”

    Pleyer, however, added that the action plan on financial terrorism still needed to be addressed.

    “In 2019, the regional partner of FATF identified problems in Pakistan’s anti-money laundering measures. But since then it has improved. There remains risk of money laundering and subsequently FATF had discussions with Pakistan.

    “I want to thank the Pakistan government for their continued commitment to address the concerns and make the necessary changes they were asked to effect,” Pleyer said.

    The FATF president said all action plan items needed to be addressed and goals fulfilled for countries to exit the grey list.

    “All countries are equal. This is also our expectation from the Pakistan government.”

    In its last presser following a plenary, on Feb 25, FATF President Dr Marcus Pleyer had said Pakistan remained under increased monitoring, adding, “while Islamabad has made significant progress, there remained some serious deficiencies in mechanisms to plug terrorism financing”.

    Pakistan has been on the FATF’s grey list for deficiencies in its counter-terror financing and anti-money laundering regimes since June 2018.

    Until the last assessment, Pakistan was found deficient in acting against organisations allegedly linked to the terror groups listed by the UN Security Council, prosecuting and convicting banned individuals and tackling smuggling of narcotics and precious stones.

  • China desires to invest more for Pakistan’s economic growth

    China desires to invest more for Pakistan’s economic growth

    ISLAMABAD: Ambassador of the People’s Republic of China Nong Rong has expressed the desire of the present Chinese Government to invest more in all sectors to lift the economic standing of Pakistan.

    The Chinese envoy said this at a meeting with Finance Minister Shaukat Tarin on Monday.

    Nong Rong informed about the progress of Chinese investments in China Pakistan Economic Corridor (CPEC) related projects.

    He expressed the desire of the present Chinese Government to invest more in all sectors to lift the economic standing of Pakistan.

    He re-affirmed the commitment of Chinese Government to overcome any obstacle in deepening the bilateral ties between the two countries.

    Federal Minister for Finance & Revenue while extending a warm welcome to H.E. Mr. Nong Rong stated that Pakistan and China enjoy long-term, broad based and multi-dimensional relationship.

    Federal Minister for Finance & Revenue expressed the commitment of the present government to further strengthen economic relations with China.

    He briefed the Chinese Ambassador about the measures introduced in the recent budget for ensuring inclusive and sustained economic growth in the country.

    Federal Minister for Finance & Revenue expressed hope that not only Chinese government but the Chinese entrepreneurs would also like to enhance their investment in the field of finance, industry and agriculture development of Pakistan.

    Finance Minister and Chinese Ambassador both agreed to take the bilateral relations of both countries to next level in order to ensure sustained economic growth. Federal Minister for Finance briefed the Chines Ambassador that increase in exports was the top most priority of the Government.

    He particularly referred to the budget proposals which would specifically promote exports in the long run and usher in growth in the economy.

    Federal Minister for Finance & Revenue conveyed full assurance on behalf of the Government of Pakistan to extend complete support in enhancing the level of economic cooperation between the two brotherly countries.

    He stated that Government of Pakistan would provide full facilitation to the Chinese companies in Pakistan to ensure long term and sustainable foreign investment in the country, which would lead to economic growth, peace and prosperity for Pakistan.

    Minister for Finance & Revenue stressed upon the need for economic uplift of the entire region and emphasized that Pakistan is willing to play its role in this endeavor.

    Both sides agreed to hold regular review meetings to ensure fast track implementation of ongoing projects.

  • Pakistan likely to exit from FATF’s grey list

    Pakistan likely to exit from FATF’s grey list

    KARACHI: The plenary meeting of Financial Action Task Force (FATF) is scheduled to start from June 21, 2021. The meeting may decide to give green signal to Pakistan for white list or maintain its status in the grey list.

    The virtual plenary meeting of the FATF will continue till June 25, 2021. It is hoped the watchdog would give clear Pakistan from its strict monitoring list as the country had done immense progress in meeting the required actions.

    The Asia Pacific Group on Money Laundering (APG) – an arm of FATF- in its mutual evaluation of Pakistan released in May 2021 welcomed the efforts of the country in meeting most of the actions set by the FATF.

    “Overall, Pakistan has made notable progress in addressing the technical compliance deficiencies identified in its MER and has been re-rated on 22 Recommendations.

    “Recommendations 14, 19, 20, 21 and 27 have been re-rated to compliant, and recommendations R.1, 6, 7, 8, 12, 17, 22, 23, 24, 25, 30, 31, 32, 35 and 40 to largely compliant.

    “Recommendation 28 has been re-rated to partially compliant. Insufficient progress has been made to re-rate Recommendation 38. Compliance with Recommendation 37 has been downgraded to non-compliant,” the report said.

    Pakistan government is hopeful that the FATF would delist the country from grey list.

    “Pakistan has achieved compliant rating in 31 out of 40 FATF recommendations (MER technical compliance). This is the parallel scrutiny being undertaken at FATF besides our current action plan. Upgrade of 20 criteria in less than 2 years is unprecedented in FATF history for any country,” Hammad Azhar, a federal minister, said in his tweet on June 04, 2021.

    The FATF put Pakistan in grey list in the year 2018.

  • World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    World Bank approves $442mn for improving access to water, sanitation services in Pakistan

    KARACHI: The Executive Board of the World Bank has approved a financing of $442 million to support Pakistan in improving access to water and sanitation services for the vulnerable rural communities in Punjab province, a statement on Saturday.

    It said that the Punjab Rural Sustainable Water Supply and Sanitation Project (PRSWSSP) will help upgrade water supply and sanitation infrastructure and services that ensure equitable and sustainable access to drinking water and safe wastewater management. The project prioritizes rural settlements, where water contamination and poor sanitation practices are more prevalent, causing high levels of illness and child stunting.

    “PRSWSSP will help more than six million rural residents in the poorest districts of Punjab to reduce child stunting and address areas at high risk to droughts and water scarcity,” said Najy Benhassine, World Bank Country Director for Pakistan.

    “The World Bank is committed to the government in improving sustainable water resource management. This project will support investments that increase climate resilience, including flood protection, rainwater harvesting and water conservation in these districts.”

    The project will implement tailored, cost-effective solutions for both large and small rural settlements, using scalable technologies that help facilitate solid and animal waste management at the household and community levels. It will also establish a water-quality monitoring system to ensure compliance with national standards for drinking water and wastewater.

    The PRSWSSP will promote safe water handling, hygiene, and water conservation practices at the household level, with a focus on maternal, newborn and child health.

    “The project is expected to yield substantial benefits to rural communities. It will help improve health outcomes by reducing water borne illnesses and ensure service quality and customer care through a financially sustainable public company,” said Farhan Sami, Task Team Leader for the project.

    The project will cover 16 districts, with 50 percent of districts drawn from south Punjab, and 25 percent each from central and north Punjab, benefiting 2,000 villages and more than six million people in rural areas. It will also provide training of village councils and community caretakers, which will have complementary responsibilities for operations and maintenance, monitoring and evaluation, and customer service.

    “Child stunting is endemic and a huge constraint on Pakistan’s potential,” said Ghazala Mansuri, co-Task Team Leader for the project. “It impacts a child’s cognitive development and immune system, reducing educational attainment, making illness more likely, and leading to lower productivity and income. Its effects are inter-generational, transmitted from parent to child. This project would provide the template for a transformational shift in human capital accumulation since it addresses all the determinants of stunting.”

    The project design was informed by a 2018 flagship report, When Water Becomes a Hazard: A Diagnostic Report on The State of Water Supply, Sanitation and Poverty in Pakistan and Its Impact on Child Stunting, that examined linkages in Pakistan between water and sanitation services, and child stunting.

    This study also supported environmental sustainability and the need to provide information and support behavioral change in poor rural communities to reduce health risks.

    Pakistan has been a member of the World Bank since 1950. Since then, the World Bank has provided $40 billion in assistance. The World Bank’s program in Pakistan is governed by the Country Partnership Strategy for FY2015-2020 with four priority areas of engagement: energy, private sector development, inclusion, and service delivery. The current portfolio has 57 projects and a total commitment of $13 billion.

  • ECC approves policy for regulation of NGOs/NPOs receiving foreign funds

    ECC approves policy for regulation of NGOs/NPOs receiving foreign funds

    ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet in its meeting held on Wednesday approved the ‘Policy for Regulation of NGOs/NPOs receiving Foreign Contributions-2021’.

    The NGO Policy, 2021 has been designed with the aim to fostering a sense of partnership between government and non-government sectors.

    Furthermore, under the new policy approval process (for registration) will be completed within 60 days, maximum, through online submission of application and consultation, doing away with manual processing and eliminating long delays.

    The new policy seeks to expand space for credible organizations for a playing an effective role in socio-economic development while detering NGOs with dubious credentials.

    ECC appreciated the efforts of Economic Affairs Division for designing the much needed policy and directed that any further suggestions/positive feedback from all the relevant stakeholders may also be incorporated in the policy and a report on the same may be shared with the forum in 4-8 weeks.

    Federal minister for finance and revenue, Shaukat tarin, chaired the meeting of the economic coordination committee (ECC) of the cabinet.

    Federal Minister for Energy Hammad Azhar, Federal Minister for Railways Azam Sawati, Federal Minister for Economic Affairs Division Omar Ayub Khan, Federal Minister for Maritime Affairs Ali Haider Zaidi, Federal Minister for National Food Security & Research Syed Fakhar Imam, Federal Minister for Privatization Muhammad Mian Soomro, Adviser to the Prime Minister on Commerce Abdul Razak Dawood, Adviser to the Prime Minister on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Power Tabish Gauhar, SAPM on Finance and Revenue, Dr. Waqar Masood, Governor State Bank of Pakistan Dr. Reza Baqir, concerned Federal Secretaries and senior officers participated in the meeting.

    ECC approved the request of Ministry of National Food Security and Research for the provision of 500,000MT of wheat to the Government of Khyber Pakhtunkhwa out of PASSCO stock during the crop year 2021-22 on the usual terms and conditions. All charges, including incidental charges will be borne by the Food Department, KP. Similarly, 500,000MT imported wheat was also allocated to Food Department, KP to meet the provincial requirement.

    ECC approved the summary of Ministry of Energy (Petroleum Division) for allowing operational losses upto a maximum of 0.5% for gasoline transportation through WOP & MFM pipelines through Inland Freight Equalization Margin (IFEM). The same will be adjusted against actual based on physical inventory of pipelines to be undertaken periodically. The actual rate will be determined by OGRA based on actual losses and excess margin would be brought before ECC. ECC also approved the request of Ministry of National Food Security & Research for import of 3MMT of wheat subject to approval by PPRA Board for building up the strategic reverses of wheat in the country.

    ECC approved US$ 17.3m for PIA-IL for payment of recurring as well as one-off liabilities in respect of Roosevelt Hotel New York, USA, as verified by the Auditor and recommended by PIA-IL Board. ECC also directed that Finance, Privatization Commission, PIA/Aviation Division should consult with each other and propose a strategy in a month’s time for deciding the future of the asset.

    The following Technical Supplementary Grants were approved by the ECC:

    i) Rs. 1.370 billion for the Finance Division to provide wheat subsidy to the Government of Gilgit Baltistan.

    ii) Rs. 32.097 million for the Ministry of Industries and Production to meet the expenditure of its various Organizations.

    iii) Rs. 1.6 billion for the Ministry of Industries and Production for clearing the bill of SNGPL for the month of May 2021

     iv) Rs. 274.161 million for the Ministry of Information and Broadcasting to meet the shortage of budget of PTV Multan, AJK, English News Channel and APPC.

    v) Rs. 570 million for the Ministry of Interior for Security enhancement at Pakistan-Afghanistan Border.

    vi) Rs. 56.341 million for the Ministry of Maritime Affairs for its various miscellaneous expenditure.

    vii) Rs. 145 million for Pakistan Nuclear Regulatory Authority to meet its various employee related expenses.

    viii) Rs. 2.467 billion for Revenue Division for meeting the requirements of Pakistan Raises Revenue Program.

    ix) Rs. 834 million for Pakistan Atomic Energy Commission to meet its employee related expenditure.

    x) Rs.49 billion for Karachi Coastal Power Project Unit 1 & 2 as requested by Pakistan Atomic Energy Commission.

  • Budget 2021/2022: minimum wage increased to Rs20,000

    Budget 2021/2022: minimum wage increased to Rs20,000

    ISLAMABAD: The federal government on Friday presented budget 2021/2022 and announced increase in monthly minimum wage to Rs20,000 from Rs17,500.

    Finance Minister Shaukat Tarin while presenting the budget on floor of the house, announced to increase the minimum wage to Rs20,000 to reduce the burden on lower income group of rising prices.

    The minister also announced increase in pay and pension by 10 percent effective from July 01, 2021.

    He said that the government was aware of high prices and difficulties faced by the lower income group. He said that last year the government had taken austerity measures and due to this increase in salary and pension was not granted.

    He said that the economy had improved now and the government decided to increase the salary and pension by 10 percent.

    He said that from July 01, 2021 all employees of federal government would get adhoc relief of 10 percent. Similarly, pensioners would get increase of 10 percent in their pension from July 01, 2021.

    The government decided to increase integrated allowance for Grade 1 to Grade 5 employees of federal government from Rs450 to Rs900.

  • Govt. presents deficit budget 2021-22 with total outlay of Rs8.4 trillion

    Govt. presents deficit budget 2021-22 with total outlay of Rs8.4 trillion

    ISLAMABAD: The federal government on Friday presented a deficit budget with total outlay of Rs8.4 trillion with host of relief and budgetary measures.

    Presenting the fiscal year budget, Finance Minister Shaukat Tarin on floor of the house said despite the severity of 3rd wave of COVID-19 pandemic, the incumbent government in its third budget made remarkable allocations to carry out out massive development projects and welfare activities for the downtrodden segments of society, besides promoting the agriculture sector to ensure food security and reduce dependence on imports.

    He said the government steered the economy out of crisis and put it on the growth trajectory by pursuing prudent policies under the dynamic leadership of Prime Minister Imran Khan.

    The minister said the country was now out of dangerous situation as the government took initiatives for its economic sustainability as evident from 3.94 percent Gross Domestic Product (GDP) growth rate during the current fiscal year.

    The minister said it was for the first time that any government had to face a critical situation and it successfully put the economy on sustainable growth path.

    He said the Current Account was now $800 million in surplus, as compared to deficit of $20 billion at the end of last government.

    He said the previous governments had also manipulated exchange rate, which had adversely affected the economy, resulting into depletion of foreign reserves to $10 billion.

    However, they increased the reserves by taking loans, which were now being repaid by the incumbent government, he added.

    Tarin said the government had successfully fulfilled all the international commitments, besides putting the economy on growth trajectory. For the purpose, it had to take tough decisions, such as reducing public expenditures and enhancing revenues, he added.

    He said during the current year, the agriculture sector did perform well despite locusts attacks and all the major crops, except cotton, witnessed positive growth.

    Likewise, the services and the large scale manufacturing sectors also had considerable growth despite COVID-19 factor, he added.

    The minister said one of the top priorities of incumbent government was to uplift the downtrodden segments, and for the purpose 40% of the total population was given cash transfers, besides providing relief to 15 million households across the country.