KARACHI: As Pakistan’s central bank amends regulations for exporters to simplify trade at international digital marketplaces, such as Amazon, e-Bay and Ali Baba, experts believe the new regulatory framework will help increase the value and volume of the country’s exports.
The State Bank of Pakistan issued a circular earlier this week, inviting feedback from the business community, banking industry and other stakeholders before making amendments to the Foreign Exchange Manual (FEM).
The amendment proposals, said the central bank, were to promote ease of doing business by simplifying existing instructions.
“The proposed changes are part of the SBP’s broader agenda to revise the existing foreign exchange regulations to align them with the changing market dynamics, business needs and global trade practices,” said the circular.
The SBP plans to create space for B2B2C, an e-commerce model which combines business-to-business (B2B) and business-to-consumer (B2C) arrangements.
The proposed changes to export regulations also seek to implement the Pakistan Single Window Project that will eliminate the requirement of Electronic Form-E which is currently used by exporters to declare and process shipments.
Other than that, there is also a proposal to delegate certain regulatory approvals required from the SBP to other banks to facilitate the business community.
“It is the democratization of exports and process of making SBP regulations compatible with modern requirements of the day,” Badar Khushnood, who is part of the National E-Commerce Council, told Arab News on Friday. “Now the amended regulations will allow any person to become an exporter.”
Khushnood said the SBP intervention was part of the e-commerce facilitation process, adding it was the first time in history regulations were amended through the recommendation of the industry.
“This will have multiple impacts,” he continued. “It will increase the number of exporters which currently stands at about 35,000, encourage the sale of value-added products in the international market and increase the volume and value of goods.”
Last month, Pakistan was officially added to Amazon’s seller list after a successful trial of some 40 companies for which regulations were made by the National E-Commerce Council.
Additionally, the SBP proposed changes to the FEM to allow exporters to receive cross-border payments against the international sales of goods in 270 days against the existing requirement of 180 days since “the exporters will now be selling goods to end consumers.”
Khushnood said the new regulations would encourage small and medium enterprises and women-owned businesses to scientifically market their products at various international e-commerce platforms.
“It is a good precedent that the central bank is seeking feedback from the business community and other stakeholders,” Zulfiqar Thavir, president of the Union of Small and Medium Enterprises, told Arab News. “Such open-minded SBP policy will not only be applauded by exporters but also create a hassle-free system leading to greater revenue for everyone.”
The process, he added, would also encourage documentation of Pakistan’s economy.
Pakistan’s central bank amends export regulations to benefit from global e-commerce market
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Pakistan’s central bank amends export regulations to benefit from global e-commerce market
- The State Bank of Pakistan has invited suggestions from exporters and other stakeholders to simplify use of Amazon and other international digital platforms
- Local businesses appreciate the central bank’s ‘open-minded’ policy, say it will lead to greater revenue for everyone
Pakistan seeks ‘viable business plan’ for state-owned broadcasting corporations
- A cabinet committee recognized ‘strategic nature’ of Pakistan Television Corporation, Pakistan Broadcasting Corporation
- The development comes amid Pakistan’s push for privatization, reforms in loss-making state enterprises for IMF bailout
ISLAMABAD: The Pakistani government on Monday sought a “viable business plan” for two state-owned broadcasting corporations, the Finance Division said, amid the South Asian country’s push for reforms in loss-making state entities.
The statement came after a meeting of the Cabinet Committee on State-Owned Enterprises (CCoSOEs) in Islamabad, which was presided over by Finance Minister Muhammad Aurangzeb.
The development comes amid Pakistan’s push for privatization and reforms in state-owned enterprises (SOEs) as it negotiates with the International Monetary Fund (IMF) a fresh bailout program.
The cabinet committee reviewed a proposal of the information ministry regarding the Pakistan Television Corporation (PTVC) and the Pakistan Broadcasting Corporation (PBC).
“The CCoSOEs recognized the strategic nature of Pakistan Television Corporation (PTVC) and Pakistan Broadcasting Corporation (PBC) and directed the Ministry of Information & Broadcasting (MoIB) to present a viable business plan to the committee for efficient management of these enterprises,” the Finance Division said in a statement.
Under the last $3 billion IMF program that helped Pakistan avert a debt default last year, the lender said SOEs whose losses were burning a hole in government finances would need stronger governance.
To negotiate a fresh bailout with the IMF, Pakistan must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.
Among the main entities Pakistan is pushing to privatize is its national flag carrier, the Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.
Pakistan PM prays for recovery of Saudi Arabia’s King Salman
- Saudi king is due to undergo treatment for lung inflammation, SPA reported
- Shehbaz Sharif says King Salman sincere friend of Pakistan, guide for Muslim world
ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday extended prayers for the recovery of Saudi Arabia’s King Salman, who is due to undergo treatment for lung inflammation.
The treatment will consist of a course of antibiotics at Al-Salam Palace in Jeddah, the state-run Saudi Press Agency reported on Sunday.
The king underwent medical tests at the royal clinics at the palace earlier on Sunday after he suffered from a high temperature and joint pain.
“I have learnt with grave concern about the health of His Majesty King Salman bin Abdulaziz. His Majesty is not only a sincere friend of Pakistan but as the Custodian of the Two Holy Mosques, a leader and guide for the entire Muslim ummah,” Sharif said on X.
“The people of Pakistan join me in praying to the Almighty for His Majesty’s complete recovery and swift return to full health.”
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to a large number of Pakistani expatriates and serves as the top source of remittances to the cash-strapped South Asian country.
Saudi Arabia has also often come to cash-strapped Pakistan’s aid by regularly providing it oil on deferred payment and offering direct financial support to help stabilize its economy and shore up its forex reserves.
Net-metering, tax controversies cloud future of solarization in Pakistan despite government clarification
- Government says it won’t end net-metering policy for solar power producers, promises to honor commitments made by companies
- Pakistan’s energy woes stem from high capacity charges consumers pay due to long-term government contracts with power producers
KARACHI: Controversies about net-metering and imposition of a new tax have cast a cloud over Pakistan’s transition to solar energy despite the government’s ambitious plans, stakeholders said on Monday, adding the situation has left them in a state of uncertainty.
Pakistan approved the net-metering policy in 2017 that allows consumers to sell excess electricity produced by their solar systems to power distribution companies, resulting in significant savings in their monthly bills.
However, the energy ministry stirred a controversy last month by declaring that net-metering was promoting “unhealthy investments” in installation of solar power by affluent domestic and industrial consumers, hinting at cutting the buyback rates.
“Before this [controversy], people were shifting to solar [energy] in such a way that we thought that 100 percent Pakistan embraced solar energy,” Zulfiqar Ali, an importer, supplier and installer of solar panels, told Arab News on Monday.
“Now, we’re witnessing a stark contrast, a slowdown in inquiries, stagnation in projects, all amidst a talk of governmental reconsideration of solar energy policies.”
Ali said the net-metering issue had a lot of effect on the market as the purchasing groups suddenly went silent and the deals that were going on became stagnant. “The planned projects have gone into an idle position, people are neither saying yes nor no,” he added.
Recent reports published by local media about new taxes and an end to net-metering policy further compounded the situation and prompted Energy Minister Awais Leghari to explain the government’s position on the matter.
“We completely reject these stories. The agreements our companies have made with net-metering users, whether they are for five years, six years, or seven years, will not be altered in any way and the government will not damage its reputation, nor will it cause any inconvenience to those investors,” Leghari said at a press conference in Lahore on Sunday.
He said the government was fully committed to renewable energy and solarization and was in favor of continuing the net-metering policy.
“If, after studying it over the next few months, there is a need to revise it, it will be done very responsibly and in consultation with stakeholders,” Leghari said.
“After the approval of the entire government, if necessary, we will rationalize this. At this moment, we are committed to fulfilling all the contracts we have signed with various people. We will uphold the integrity of the entire government and move forward together.”
But despite the government’s assurances, an atmosphere of uncertainty prevails in the South Asian country with regard to solarization.
“I wanted to install solar panels at my rooftop to mitigate the impact of high electricity bills but now I am unable to take a decision because of the government’s intended moves of either taxing panels or curtailing net-metering benefits,” said Khalid Abbas, a resident of Karachi, adding that he would wait for clarity on the subject.
Solar panel suppliers said people, who were buying solar panels by selling their cars or jewelry, had stopped purchasing the equipment.
“Residential consumers who wanted to install 5-20KW panels have stopped and are waiting for clarity,” Zulfiqar said.
Pakistan’s energy woes stem from the substantially high electricity bills, mainly due to the capacity charges that are as high as 65 percent and the nation is bound to pay these to power producers, even though their plants stand idle.
The power purchase price (PPP), or the average per unit price based on the generation cost, is Rs20.60, which includes Rs14.09 capacity charges, and Rs6.21 fuel and variable charges, according to Pakistan’s reference tariff for fiscal year 2023-2024.
Pakistani energy experts believe the volume with which solar energy is increasing is still “insignificant” and does not even make 1 percent of the total power generation in the country.
“But the way it is going on in Pakistan, perhaps a significant portion of our net-metering will be done from it,” Dr. Khalid Waleed, an expert on energy economics, told Arab News. “Around 2,000MWs will be coming from net-metering. So, it should not be discouraged at all.”
When consumers switch to solar power, Waleed said, capacity charges are borne by other consumers that ultimately increases their power burden.
Experts say the country won’t be able to get rid of the capacity charges before 2050 due to long-term contracts made with power producers.
Pakistan Deputy PM arrives in Kazakhstan to attend SCO Foreign Ministers’ meeting
- The SCO is a major trans-regional organization and its member states collectively represent nearly half of world population
- Deputy PM Ishaq Dar will meet Kyrgyz FM Jeenbek Kulubaev tonight to discuss the latest situation after Bishkek mob violence
ISLAMABAD: Ishaq Dar, Pakistan’s deputy prime minister and foreign minister, on Monday arrived in Kazakhstan to attend a meeting of the Council of Foreign Ministers of the Shanghai Cooperation Organization (SCO), the Pakistani foreign ministry said.
Founded in 2001, the SCO is a major trans-regional organization spanning South and Central Asia, with China, Russia, Pakistan, India, Uzbekistan, Tajikistan, Kyrgyzstan and Kazakhstan as its permanent members. The SCO member states collectively represent nearly half of the world’s population and a quarter of global economic output.
The organization’s agenda of promoting peace and stability, and seeking enhanced linkages in infrastructure, economic, trade and cultural spheres, is aligned with Pakistan’s own vision of enhancing economic connectivity as well as peace and stability in the region.
Upon arrival at the Astana airport, Dar was received by Director of the Kazakh Ministry of Foreign Affairs Nursalimuly Yergalym, Pakistan’s Ambassador in Astana Nauman Bashir Bhatti and Pakistan’s National Coordinator for the SCO, Ambassador Marghoob Saleem Butt.
“In Astana, a meeting has been arranged between the Deputy Prime Minister Dar with the Foreign Minister of Kyrgyz Republic, Jeenbek Kulubaev, this evening in order to discuss the latest situation in Bishkek with a view to ensure the well-being of Pakistani students,” the Pakistan foreign ministry said in a statement.
Frenzied mobs targeted hostels of medical universities and private lodgings of international students, including Pakistanis, in Bishkek last week after videos of a brawl between Kyrgyz and Egyptian students went viral on social media.
Pakistan has since then ramped efforts to repatriate its students from the city and more than 600 Pakistani students have returned home via three different flights. According to official statistics, around 10,000 Pakistani students are enrolled in various educational institutions in Kyrgyzstan, with nearly 6,000 residing and studying in Bishkek.
In Astana, Dar will represent Pakistan at the two-day meeting of the SCO Council of Foreign Ministers. He will also hold bilateral meetings with his counterparts on the sidelines of the summit.
Since becoming a full member of the SCO in 2017, Pakistan has been actively contributing toward advancing the organization’s core objectives through its participation in various SCO mechanisms.
During his visit to China last week, Dar also met SCO Secretary-General Ambassador Zhang Ming and reiterated Pakistan’s commitment to the organization’s charter and its ideals, the Pakistani foreign ministry said in a statement.
“He expressed Pakistan’s strong commitment to advancing SCO’s security and development cooperation agenda,” the statement said.
Pakistan gear up for FIFA World Cup Qualifiers matches against Saudi Arabia, Tajikistan
- Pakistan will play a home match against Saudi Arabia on June 6 in Islamabad
- It will be followed by an away match in Tajikistan on June 11, the PFF says
ISLAMABAD: The Pakistan football team has begun practicing in Islamabad for the upcoming matches against Saudi Arabia and Tajikistan as part of the FIFA World Cup qualifier round-2, the Pakistan Football Federation (PFF) said on Monday.
The Pakistan side is scheduled to play a home match against Saudi Arabia on June 6 in Islamabad, which would be followed by an away match in Tajikistan on June 11. Pakistan is in Group G along with Saudi Arabia, Tajikistan and Jordan.
A total of 36 football squads have been split into nine groups with four teams each in the second round of qualifiers. The winners and runners-up from each group would progress through to the third round of the World Cup qualifiers.
“Head coach Stephen Constantine is leading the team’s efforts, focusing on refining their skills and tactics for the encounter against one of the football powerhouses (Saudi Arabia),” the PFF said in a statement.
“Goalkeeping coaches Rogerio Ramos and Noman Ibrahim have been dedicating their efforts to the goalkeepers, while fitness coach Claudio Altieri is ensuring peak performance in preparation for the crucial match.”
Preliminary Pakistan squad
Goalkeepers: Hassan Ali and Tanveer
Defenders: Haseeb Khan, Mamoon Moosa Khan, Huzaifa, Waqar Ihtisham, Abdul Rehman, Umar Hayat, Muhammad Adeel, Muhammad Saddam and Zain ul Abideen
Midfielders: Yasir Arafat, Alamgir Ghazi, Ali Uzair, Rajab Ali, Moin Ali, Junaid Ahmed and Fahim
Forwards: Adeel Younas, Shayak Dost, Ali Zafar and Fareedullah
The PFF said the names of diaspora players joining the national training camp later would be included in the final squad.
