January 19, 2020 (MLN): The outgoing week was host to a number of policy-oriented developments among which the important ones that have a direct impact on the economic operations of Pakistan include:
On Friday, Minister for Economic Affairs Hammad Azhar while speaking in the Senate said that government set the target of reducing fiscal deficit to four percent in the next one or two years.
To promote exports of furniture products, President, Islamabad Chamber of Commerce and Industry Muhammad Ahmed Waheed on Friday Urged the government to establish furniture cities or furniture zones in Islamabad and in other major cities of the countries.
On Thursday, the Federal Board of Revenue (FBR) apprised the details through notification regarding the measures introduced in the Sales Tax Act, 1990 and Federal Excise Act, 2005 through the Finance Supplementary (Second Amendment) Act, 2019
Meanwhile, Power Division through an official notice apprised that the zero-rated industry would only be charged 7.5 cents/kWh tariff by WAPDA.
In a statement issued on Thursday, the Ministry of Finance said actions by the government have helped stabilize the economy and reduce the unsustainable fiscal and trade deficits, leading to a restoration of business confidence.
Furthermore, advisor to Prime Minister on Commerce, Industries, Textile and Investment Abdul Razak Dawood said that China-Pakistan, Free Trade Agreement (CPFTA) is a game-changer for increasing the Pakistan exports and also for maintaining a balance of trade with China. Phase II of the Free Trade Agreement could be weighed as better negotiated than the previous phase due to enhanced protection given to businessmen, he added.
On Wednesday, the United States Agency for International Development (USAID) hosted the first-ever ‘Modernizing Agriculture through Innovative Technologies Conference 2020’ in Islamabad. The event showcased the transformational impact of the U.S.-Pakistan partnership to advance agricultural commercialization in Pakistan through strategic partnerships with 30 dynamic agricultural technologies businesses.
The same day, Minister for Housing and Works Tariq Bashir Cheema told the National Assembly that the government was planning to provide 50 percent subsidy on building of affordable housing for low income employees with substantial grants from Italy and Japan amounting to billions of rupees.
On Tuesday, Adviser to Prime Minister on Finance and Revenue Dr Abdul Hafeez Shaikh said the government was taking steps to tackle inflation and enhance domestic productivity through greater spending on social safety net, improving cash transfer programme, ensuring greater ease of doing business and providing subsidized loans, electricity and gas to the exporters.
On the upside, Entrepreneurs from the US have shown keen interest to invest in the China Pakistan Economic Corridor (CPEC)'s first Special Economic Zone (SEZ), Allama Iqbal Industrial City due to immense market potential of the country and improved governance.
In addition, The Heimtextil 2020 Trade Fair turned successful for the Pakistani exporters as a home textile sector received large orders during Heimtextil gatherings in Frankfurt. Advisor to PM for Commerce, Textile, Industry & Production, Abdul Razak, in a tweet, has congratulated to all businessmen who received the orders this time even larger than the last time.
Meanwhile, Minister for Planning and Development, Asad Umar says PTI government is determined to establish four economic zones in all provinces. Talking to a private news channel, he said that feasibility for ML-1 project has been prepared and some nine billion dollars would be spent to improve the railway system.
On Monday, the Oil and Gas Regulatory Authority (OGRA) on notified revised prices of Re-gasified Liquefied Natural Gas (RLNG) for the SSGC and SNGPL for the current month.
On a positive front, the growth in foreign remittances that soared to $11.4 billion during the July-December period of FY 2020 is likely to continue for the rest of the year due to a host government measures that may help achieve the target of $24 billion set for the financial year 2020.
Besides, the Asian Development Bank (ADB) and the Royal Norwegian Embassy in Pakistan signed an agreement today to expand support for the National Disaster Risk Management Fund (NDRMF), further strengthening financing for natural disaster risk reduction and preparedness in the country. Under the agreement, the Government of Norway will provide $5 million to NDRMF from the unused resources of the Pakistan Earthquake Fund. Norway’s assistance for NDRMF will be administered by ADB.
On the positive side, the major development was witnessed as Fitch Ratings affirmed Pakistan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B-' with a Stable Outlook.
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