Tag: TRADE

March 20, 2019: Economic Coordination Committee (ECC) has approved release of funds for rehabilitation of temporary dislocated persons (TDPs) of North Waziristan.

The meeting also approved technical support grant of 202.637 million for CADD and 12.409 million for Pakistan Chairs abroad in favor of ministry of federal education and professional training. 

The meeting was held in Islamabad today with Finance Minister Asad Umar in the chair.

March 20, 2019: Malaysian Prime Minister, Dr. Mahathir Mohamad will arrive in Islamabad on Thursday on a three-day visit to Pakistan at the invitation of Prime Minister Imran Khan.

The Malaysian Prime Minister will be accompanied by a high-level delegation including several leading businessmen.

The two Prime Ministers will also speak at the Round Table meeting of the CEOs of Industries, who desire to invest in automobile and telecommunication sectors of Pakistan.

Foreign Office Spokesperson, Dr. Muhammad Faisal, in a statement today said the visit of Malaysian Prime Minister will further cement the existing friendly relations between the two countries.

He said the focus of the interest is on enhancing economic, trade, investment, and defence ties, for the mutual benefit of the peoples of the two countries.

The Businessmen Panel (BMP) for Federation of Pakistan Chambers of Commerce and Industry hailing visit of Dr. Mahathir Muhammad to the country hopes it will also give a new push to its trade in the ASEAN region.

BMP Chairman, Mian Anjum Nisar here on Wednesday said although Malaysia and Pakistan enjoy very close and fraternal relations as both shared several commonalities yet these could never translate into strong trade ties.

"Although Pakistan and Malaysia have also signed FTA yet not much momentum in trade has been witnessed," he said.

Emphasizing need for special attention and efforts on part of both the countries, BMP Chairman said regular exchange of trade delegations and participation in trade promotional activities may help boost economic relations between the two.

Pakistan, he said fully recognizes the importance of regular discussions to strengthen the trade relationship in key sectors and addressing bilateral trade imbalance.

"This is needed to be taken up on urgent basis as Pakistani Businesses eagerly need Malaysian market and ASEAN region to diversify its exports, particularly in horticulture, sports surgical and textile sectors," said the senior exporter and representative of local business community.

It was mentioned that Pakistan is a big supplier of IRRI and Basmati rice while the Malaysian requirement is of 1,000,000 metric tons annually for domestic consumption.

"Unfortunately share of Pakistan is not more than 200,000 tons and the Malaysian government must be requested to enhance the quota of Pakistani rice export to Malaysia, at competitive prices," said BMP leader.  

Nisar said Pakistani authorities need to also approach their Malaysian counterparts with the proposal to review 5% to 7% duties imposed on mango and kinnows import from Pakistan.

BMP Secretary General and Former President FPCCI, Senator Ghulam Ali supplementing his senior colleague said Malaysia and Pakistan are enjoying warm and friendly relations since the establishment of diplomatic ties in 1957.

"Both the countries being the members of Non-Aligned Movement (NAM), Organisation for Islamic Conference (OIC) and G77 also share a similar position on regional and international issues," he said mentioning Pakistan is also a dialogue partner of the Association of Southeast Asian Nations (Asean) and a member of the ASEAN Regional Forum.

"The exchange of trade delegations is direly needed to boost the bilateral trade ties and volumes," he reiterated.

Ghulam Ali said his panel also looks forward to the Memorandum of Understanding (MoU) expected to be signed between the National Chamber of Commerce and Industry of Malaysia (NCCIM) and Federation of Pakistan Chambers of Commerce and Industry (FPCCI) during the forthcoming visit of Malaysian Prime Minister.

The BMP officials were of unanimous opinion that Pakistan needed to manage its economy in a completely different way as presently the country's growth story is one of boom and bust, however, our history shows that a few years of strong growth are always followed by crisis.

To avoid such crises in the future, they said state's revenue collection and its private sector must be equally strengthened.

Efforts to broaden the tax net and bolster tax administration was said to help raise tax revenues on permanent basis, without increasing the burden on those already paying taxes.

The senior businessmen further suggested urgency to turn the country's private more competitive through an improved business environment, increased openness to trade and investment besides reforms in the energy sector.

(APP)

March 20, 2019: A new World Bank report has said that the multi-country involvement including India in China Pakistan Economic Corridor (CPEC) can help achieve greater regional integration.

Suggesting various steps to be taken towards greater integration with the region to liberalize trade and improve logistics, the report titled "Pakistan@100: Shaping the Future" said CPEC can be used to improve relations with other countries that could benefit from it, including Iran, Afghanistan and those in Central Asia.

Other efforts to increase regional integration as relations with neighbors strengthen might include offering India an overland route to Afghanistan in return for gaining access to Central Asia for itself; offer both Karachi and Gwadar ports for use to all neighbors; and work with Iran to develop synergies and complementarities between the Gwadar and Chabahar ports," the report added.

Pakistan should push for the timely completion of connectivity projects already committed to by all countries in the region.

The process of unlocking Pakistan's regional promise must start with a consensus across Pakistan's leadership, and between civilian and military leaders, to use constructive regional relations to support economic competitiveness and growth.

To improve relations with India, the two countries could revitalize the Pakistan-India Joint Chamber of Commerce, normalize visa processing, including for business people, and enter into a dialogue on trade liberalization measures.

In the medium term, the report added that Pakistan could deepen some of the reforms undertaken in the short term, including opening up other border points with India, such as Khokhrapar-Munabao in Sindh and Sialkot in Punjab.

Border infrastructure such as warehouses and improved cold-storage facilities would be necessary to facilitate increased trade between the two countries.

Railway links to carry both passengers and freight from borders and ports to Pakistan's major cities are needed to reduce transportation costs.

On the western border with Afghanistan, similar investments in improved border infrastructure, customs procedures, and road and rail connectivity would expand trade capacity and foster domestic manufacturing growth in Pakistan.

The report also suggested to establish a simple, transparent tariff structure with reduced tariffs, and with clear and transparent rules governing the use of discretionary provisions, including a uniform, less discretionary duty exemption scheme for exporters.

Identifying and implementing key regulatory reforms in the services sector could improve Pakistan's international competitiveness in the tradeable services and manufacturing sectors that are increasingly reliant on professional services inputs, such as logistical and financial services.

Improving trade logistics through procedural facilitation and infrastructural improvement will also be critical. An automated internet-based processing system for border management has already been rolled out.

This roll-out should be completed and extended to all relevant regulatory agencies.

Assessing and subsequently upgrading the biggest infrastructural bottlenecks at borders, such as inadequate weighbridges and scanners, sheds and warehouses, customs facilitation centers, and quarantine and phytosanitary facilities, should be undertaken, the report added. 

Adopting a more modern risk-based compliance management strategy for border controls will help focus attention on the most high-risk consignments, while expediting those that do not pose serious issues.

(APP)

March 20, 2019 (MLN): Governor of the State Bank of Pakistan, Mr. Tariq Bajwa has said that the Central Bank sees inflation behaving well in the next financial year. But in spite of that, the Central Bank stands ready to use monetary policy tools in the future after witnessing the “most aggressive interest rate tightening” in Asia last year.

Speaking at the Bloomberg Economic Forum, the governor said that while inflation accelerated to 8.2 percent in February, the highest since 2014, the central bank doesn’t see average inflation breaching the double-digit mark in the next fiscal year.

He also that it will be no surprise if the inflation rate continues to be more or less the same for the next year, and starts declining by the end of next fiscal year.

Citing taming of inflation rate as one of the priorities, the Governor said that the Central Bank would continue to strive as far as policy rate is concerned. 

Copyright Mettis Link News

March 20, 2019: A meeting of Economic Coordination Committee (ECC) chaired by Finance Minister Asad Umar is in progress in Islamabad.

The Committee is taking stock of eight point agenda including release of funds for the return and rehabilitation of temporarily displaced persons of North Waziristan and the budget proposals of Employees Old-Age Benefits Institution.