Analysts hail Saudi FM’s ‘significant’ visit, say investments will boost Pakistan’s economy

Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan (center) attends the Pakistan-Saudi Arabia Investment Conference with his Pakistani counterpart, Ishaq Dar (not pictured), in Islamabad, Pakistan on April 16, 2024. (@KSAMOFA/X)
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Updated 17 April 2024
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Analysts hail Saudi FM’s ‘significant’ visit, say investments will boost Pakistan’s economy

  • Saudi Arabia’s foreign minister visited Pakistan this week to discuss investments and enhance bilateral economic cooperation
  • Former diplomat says Saudi investments could increase to $25 billion if Pakistan provides conducive environment to Saudi investors

ISLAMABAD: Former Pakistani diplomats and analysts on Wednesday hailed Saudi Foreign Minister Faisal bin Farhan Al Saud’s “significant” visit to Pakistan, saying that investment agreements reached between the two sides could lead to the creation of thousands of jobs in the South Asian country and boost its economic prospects. 
Prince Faisal bin Farhan arrived in Islamabad on a two-day official visit on Monday. The minister led a high-powered delegation to Islamabad with his visit aimed at enhancing bilateral economic cooperation and pushing forward previously agreed investment deals. 
His trip came a little over a week after Crown Prince Mohammed bin Salman met Prime Minister Shehbaz Sharif in Makkah and reaffirmed the Kingdom’s commitment to expedite investments worth $5 billion.
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and the top source of remittances to the cash-strapped South Asian country.
“Pakistan has longstanding ties with Saudi Arabia but now it has taken a new dimension of economic cooperation,” Zahid Hussain, a senior journalist and political analyst, told Arab News. 
“And that’s why this visit was very significant.” 
Hussain said the Saudi foreign minister’s visit had turned out to be a “very productive” one as both sides held discussions on investment opportunities that he said Pakistan could offer to Saudi businessmen.
“They have discussed various opportunities which are beneficial for Saudis for investment and that could be said as the turning point in the Pakistan and Saudi relationship,” Hussain added.
During his two-day official trip, the Saudi foreign minister held meetings with top civilian and military leadership including Prime Minister Shehbaz Sharif and army chief General Syed Asim Munir. The Saudi delegation was also briefed by the Special Investment Facilitation Council (SIFC), a key government body set up in June 2023 to fast-track decisions related to international investment in Pakistan’s key sectors IT, mining, energy and agriculture.
Speaking at a joint press conference in Islamabad on Tuesday along with his counterpart Ishaq Dar, Prince Faisal said there was a “significant opportunity” for the Kingdom to increase its investments in Pakistan. 

Former diplomat Javed Hafeez said potential Saudi investments will enhance Pakistan’s exports and lead to the creation of thousands of new jobs for Pakistani professionals in the energy, mining, agriculture, and other sectors. 
“This would have an overall positive effect on other sectors as well and on Pakistan’s economy,” he noted.
Hafeez said the Kingdom’s investments in Pakistan could increase to the tune of $25 billion from initial investments of $5 billion, provided Islamabad succeeds in ensuring a conducive environment for Saudi investors. 
“I see it [initial investments of $5 billion] as a test case,” Hafeez said. “If we can provide the foolproof security [to Saudi investors] and if these projects are successful, then of course much more investment will come.”


Gang mastermind, extradited from Pakistan, jailed for life for UK police officer killing

Updated 10 May 2024
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Gang mastermind, extradited from Pakistan, jailed for life for UK police officer killing

  • Piran Ditta Khan fled UK after Sharon Beshenivsky was shot at close range in Bradford in 2005
  • Khan, a former takeaway boss, was said to be the ringleader of the gang involved in the murder 

LONDON: A 75-year-old man who was extradited from Pakistan was jailed for life on Friday for the murder of a British police officer nearly 20 years ago.

Piran Ditta Khan fled the country after Sharon Beshenivsky was shot at close range as she and a colleague arrived at the scene of a robbery at a travel agency in Bradford, northern England, in 2005.

Although he did not pull the trigger, prosecutors at his trial said he was equally guilty of murder as he had planned the raid and knew that loaded weapons would be used.

Judge Nicholas Hilliard at Leeds Crown Court on Friday handed Khan a life sentence with a minimum term of 40 years and told him: “You will inevitably spend the remainder of your life in custody.”

Beshenivsky, 38, had only been an officer with West Yorkshire Police for nine months before her death, which happened on her daughter Lydia’s fourth birthday.

“Every birthday is a reminder of what happened that day,” Lydia said in an impact statement read in court.

“It has recently been Mother’s Day, and while my friends are celebrating with their mums, I sadly can never do that.”

She was “too young and innocent” to understand why her mother did not return from work to celebrate her birthday, the statement added.

Judge Hilliard praised Beshenivsky’s bravery in responding to the call “when she and her colleague had no way of knowing what they would be confronted with when they got there.

“Sharon Beshenivsky’s courage and commitment to duty that day cost her her life,” he added.

The rare fatal shooting of a police officer on duty caused widespread shock and revived calls for British police to routinely carry guns. 

Khan, a former takeaway boss, was said by prosecutors to be the ringleader of the gang involved in the killing on November 18, 2005.

He remained in a lookout car during the robbery, played a “pivotal” role in planning the heist and knew that loaded firearms would be used.

As such he was as culpable of Beshenivsky’s murder “as surely as if he had pulled the trigger on that pistol himself,” prosecutors told his trial.

He claimed he was trying to recoup money owed to him by the owner of the travel agency but lawyers said there was no evidence for this.

The gang escaped with little more than £5,000.

Khan was arrested in Islamabad in January 2020 after years on the run and extradited in April 2023.

He was found guilty of murder as well as firearms offenses. He had admitted robbery.

Six other gang members have previously been jailed over the shooting, which also saw Beshenivsky’s colleague Teresa Milburn shot in the chest.

Milburn, who was 37 at the time, had joined the force two years beforehand.

Three of the men, including one who fled to Somalia but was later extradited, were jailed for life and told they would serve at least 35 years behind bars.

West Yorkshire Police Assistant Chief Constable Patrick Twiggs said members of the force “welcome the life sentence handed down to Khan.

“West Yorkshire Police will continue to honor Sharon’s memory, we still mourn the loss, we still miss her, she will be forever in our thoughts,” he added.


Pakistan shares close weekend trading at all-time high on improving economic indicators, Saudi investments

Updated 10 May 2024
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Pakistan shares close weekend trading at all-time high on improving economic indicators, Saudi investments

  • KSE-100 index went up by 427 points and closed at 73,086 points on investor optimism
  • Analysts say Saudi crown prince’s visit could see stock market cross 85,000 level this year

KARACHI: Pakistan’s key stock index crossed the 73,000 mark on Friday to close the weekend trading session at an all-time high on renewed hopes of an interest rate cut and improving economic indicators as well as optimism about Saudi investments, analysts said.
 
The KSE-100 index went up by 427 points and closed at 73,086 points on investor optimism stemming from an anticipated lower inflation rate this month, which fueled speculation of an interest rate cut in the next monetary policy in June. 

Last month, the Monetary Policy Committee (MPC) of the State Bank kept the key interest rate steady at 22 percent for the seventh straight meeting.
 
“Pakistan stocks exchange made another new high today crossing 73,000 amid expectations that inflation may fall at a faster than expected rate,” Muhammad Sohail, CEO of Topline Securities, told Arab News, adding that optimism about Saudi investments had also played a key role in the bullish trend at the bourse in the last few days.
 
The Pakistan Stock market performed extremely well during the outgoing week and the index increased by around 1180 points.
 
“There are two to three reasons for this surge, first being the gradual improvement in Pakistan’s economic indicators,” Sheheryar Butt, Portfolio Manager at Darson Securities, said. 
 
The South Asian nation has witnessed increasing remittance by 28 percent to $2.8 billion while the central bank’s reserves soared above $9 billion, the highest in 1.5 years.
 
“Along with this, our currency is maintained at Rs278 against the US dollar and it is also stabilizing in the interbank market. We are also seeing an increase in remittances,” Butt said.
 
Pakistan saw one of the highest inflation regimes last year, with 38 percent inflation recorded in May last year, which eased to 17.3 percent this April. Pakistani analysts expect a further fall in May, renewing optimism of an interest rate cut from the current 22 percent in the upcoming monetary policy.
 
“Inflation in Pakistan is expected to decrease significantly to around 15 percent in May 2024. This substantial drop is a testament to the effective efforts of the government and central bank in curbing inflation,” Sohail added.
 
Talks with the International Monetary Fund (IMF) for a new bailout package and Saudi investment optimism have been key drivers of the stock index in recent days while the expected arrival of the Saudi Crown prince later this month is being seen as another “milestone achieving factor.”
 
“The IMF team is going to visit Pakistan and there are brighter chances for Pakistan to get a longer program with the IMF. Pakistan will easily get a program of $6-8 billion for 2-3 years,” Butt said, adding that the Saudi crown prince’s visit could see the stock market cross the 85,000 level this year.


Pakistan to play Japan in Azlan Shah Hockey Cup final tomorrow

Updated 10 May 2024
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Pakistan to play Japan in Azlan Shah Hockey Cup final tomorrow

  • This is first time Pakistan have advanced to tournament’s final since 2011
  • Pakistan have won the Azlan Shah Cup title thrice, in 1999, 2000 and 2003

ISLAMABAD: Pakistan remained unbeaten in the Azlan Shah Hockey Cup on Friday as their match against New Zealand ended in a tie and will take on Japan in the final tomorrow, Saturday. 

Pakistan are already through to the final which will take place at 5:30pm (PKT) on Saturday at the Azlan Shah Stadium in Ipoh. This is the first time Pakistan have advanced to the tournament’s final since 2011.

Friday’s match ended in a draw, with both teams securing one point each, the Pakistan Hockey Federation (PHF) said.

“Pakistan has managed to make it to the finals with a total of 11 points from five matches on the points table,” PHF said. “Pakistan won the bronze medal in the last event [Thursday] by winning the third place match. The final match between Pakistan and Japan will be played tomorrow [Saturday].”

Six teams are participating in the event, including host team Malaysia, Pakistan, Korea, Japan, New Zealand and Canada. 

Pakistan have won the Azlan Shah Cup title thrice — in 1999, 2000 and 2003 — and came third in the last edition which was also held in Ipoh in 2022. Malaysia are the defending champions of this year’s edition.

Addressing the squad via video link, Information Minister Attaullah Tarar reiterated the government’s commitment to hockey, state-run Radio Pakistan said, adding that the prime minister had ordered focusing on removing obstacles in the development of hockey in Pakistan.

“The entire nation is praying for the victory of Pakistan and is looking forward to welcome a champion team,” Tarar said. 

Pakistan is now 18th in hockey rankings after being consistently among the top four and winning a record four World Cups. The nation has not won a single hockey medal at the Olympics since 1992.


Amid privatization push, Pakistan says profit-making public entities also being considered for sale

Updated 10 May 2024
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Amid privatization push, Pakistan says profit-making public entities also being considered for sale

  • South Asian nation is striving to deliver reforms amid talks with IMF for new bailout loan package
  • Cabinet Committee on Privatization has in principle approved 24 entities for Privatization Programme

KARACHI: The office of Pakistan’s deputy prime minister said on Friday even profit-making state owned enterprises (SOEs) would be considered for privatization as the South Asian nation strives to deliver reforms amid talks with the International Monetary Fund for a new bailout package.

Under the last $3 billion bailout package from the IMF that was critical in averting a sovereign debt default last year, the lender has said state-owned entities whose losses are burning a hole in government finances would need stronger governance. Pakistan is now negotiating with the IMF for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs. 

“CCOP emphasized that even the SOE making profits shall be considered for privatization,” a statement from the deputy prime minister’s office said, referring to a meeting of the Cabinet Committee on Privatization (CCOP). 

Among the top profit-making SOEs are Oil and Gas Development Company Limited, Pakistan State Oil Company Limited, Pak Arab Refinery Company, Pakistan Petroleum Limited, the National Bank of Pakistan, National Power Parks Management, the Government Power Holding Limited, Mari Petroleum and Neelum Jhelum Hydro Power Limited.

“CCOP, while approving 24 entities for the Privatization Programme, in-principle, for the time being, directed Ministry of Privatization to deliberate the phasing of each entity in consultation with the respective Ministries,” the statement added. 

Among the main entities Pakistan is pushing to privatize is its national carrier, PIA. The government is putting on the block a stake ranging from 51 percent to 100 percent. 

The disposal of the flag carrier and other entities like a sprawling steel mill in Karachi is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on the privatization will help cash-strapped Pakistan pursue further funding talks with the IMF.


‘Asia’s largest nursery’ in Pakistan’s Pattoki awaits government support to bolster Gulf exports

Updated 10 May 2024
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‘Asia’s largest nursery’ in Pakistan’s Pattoki awaits government support to bolster Gulf exports

  • Agriculture department says no other place worldwide where nurseries sprawl whole city
  • Plant exporters urge government to lift ban on import of seeds and new plant varieties 

Pattoki, PAKISTAN: From a bird’s-eye view, dozens upon dozens of nurseries can be seen dotting the city for several kilometers, featuring colorful flowers, massive trees and decorative plants. Around them, hundreds of workers flit about planting and trimming plants and plucking weed from the ground and out of clay pots. 

This is a scene from Pattoki, a city in the Kasur district of Pakistan’s most populous Punjab province, that exporters and government officials say is the largest nursery market in Asia. Spread over a thousand hectares, the market employs around 100,000 people directly or indirectly.

“This [nursery] is spread over ten villages and each village’s population is estimated to be around 10,000 people,” exporter Lala Shaukat told Arab News in Pattoki last week. “This is a profitable business and people are earning well from it, and this [Pattoki] has become Asia’s biggest [nursery] market.”

“Pattoki is indeed Asia’s largest nursery due to its sprawl at a single place, in one city, and this is the biggest market in Pakistan from where the plants and flowers are not only supplied across the country, but also exported to Saudi Arabia, UAE and other Gulf countries,” said Dr. Basharat Saleem, a deputy director at the Punjab general agriculture directorate. 

In Pattoki, an average nursery is spread over ten hectares with 30-40 gardeners taking care of around 350 types of plants and flowers that are sold both locally and exported. 

“Around 350 varieties [of different plants] are available with us [at this nursery], including palm trees and shadow trees,” Bilal Ahmed, a nursery owner, told Arab News. “Then there are fruit plants and flower plants which are available with us in abundance.”

GULF EXPORTS

Exporter Sheraz Ali said Pakistan’s plants and flower exports to Gulf countries had increased since 2018 from around 15 containers yearly to 250 in 2024. 

“In one container, around 10,000-12,000 plants are going [exported] and its value is around 3 million ($10,782) to 3.5 million rupees ($12,578),” Ali told Arab News. “In one acre, an average of 40,000-50,000 plants [are being planted].”

The plant protection department agreed with Ali, saying at least 250 containers were shipped yearly, with the Gulf region being a major destination.

“The exports of our plants and flowers have registered a significant increase in the Gulf region in the last couple of years, and the exporters’ number of 250 shipping containers for this year seems to be true,” said Dr. Khalid Zafar, a deputy director at the plant protection department, who said exact export numbers were not readily available with his department at the moment. 

Saudi Arabia and the UAE were the closest destinations to Pakistan where shipments could reach within a week, exporters said. . 

“We have been focusing on roses as per their demand to export them to bring dollars to our market, so that it could play a role in our country’s progress,” Ali added. 

For consignments that have to be exported, plants and flowers are transferred from clay pots to a soilless medium known as cocopeat. This is a necessary step as globally exporting clay from one country to another is banned for fear that soil could transfer viruses and bacteria. 

“First of all, to export to Saudi Arabia, Dubai and all these Arab countries, there should be soilless media as you cannot transfer clay from one country to another because it may contain viruses, bacteria and there is a huge chance of the spread of diseases so you can make it soilless,” Ali explained. 

“So we import cocopeat from Sri Lanka to make it soilless and then use it in plants after taking it through a certain process.”

“GOVERNMENT SUPPORT”

Pakistani traders and growers, however, said despite the nurseries and flower markets being a “billion-dollar industry,” farmers were struggling to grow new varieties of plants and flowers and bag more orders from abroad. 

“Dubai, Saudi Arabia, Kuwait, Oman, it is a huge market for us. I am exporting to only one country, Dubai [UAE], and the quantity to other countries is negligible,” exporter Shaukat, who has been in the business for 30 years, said. “We need the government’s assistance to boost exports. The government should cooperate with us and our exports can witness a huge increase. Unless we are presented as an industry, we cannot increase our exports.”

Shaukat said the government’s decision to ban the import of plants and seedlings to Pakistan had damaged business because growers could not bring in new varieties of plants.

“The world demands new varieties of [plants] as people don’t like the fifty-year-old variety,” Shaukat told Arab News. 

Ahmed, the nursery owner, agreed that government support and incentives were key to the industry’s future growth. 

“This is a billion-dollar industry in Pakistan and there is no focus of the government or any institution on it,” he said as he walked through a row of plants. 

“If there is focus, this billion-dollar industry can earn huge revenue for both the government and farmers.”