KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) questioned the wisdom behind the recent finance bill presented by the Pakistan Tehreek-e-Insaf (PTI) government, pointing out on Monday that increasing the cost of input would not yield the desired export targets for the country.
“The FPCCI has lamented the recent increase in gas prices and urged the government to bring the utility rates on par with our regional competitors, such as Bangladesh and India, since that will enable Pakistan to perform well in the international market and bridge the yawning trade deficit as well,” FPCCI’s Vice President Waheed Ahmed told Arab News.
The PTI government is facing a huge balance of payment deficit, but its economic managers have tried to reduce it by launching an austerity drive and introducing new budgetary measures.
Economic experts believe, however, that the ruling administration must focus on increasing the country’s exports to deal with the problem.
“It is buffalos versus balance of payment. Pakistan desperately requires big steps to fill the external payment gap rather than relying on short-term measures, such as selling a few cars or animals,” Dr. Bilal Ahmed, a senior economist, commented, adding: “The country needs better management of export package and work on import substitute that can increase our exports to $30 billion.”
“The balance of payment pressure persists due to our dwindling foreign exchange reserves, trade deficit, and current account deficit that was reduced to some extent in July and significantly went down in August. However, this was not due to any policy intervention by the government, but rather to the rise in exports vis-a-vis our imports,” Dr. Ikram-ul-Haq, an economic expert said.
Pakistan’s balance of payment deficit for the fiscal year 2017-18 was $18.1 billion, easing while it eased off in the first two months of the current fiscal year. Federal Minister for Finance, Revenue, and Economic Affairs, Asad Umar, has warned that the deficit may reach $21 billion if corrective measures are not taken.
The government has announced measures to reduce imports through the imposition of regulatory duty, subsidizing the export industry, and curbing government spending under austerity measures.
“Our export industry, which has to compete in the international market, has been given break of Rs44 billion. Similarly, we are focusing on foreign direct investment. Talks with Saudi Arabia about greater investment was also part of it — and enhanced exports to markets in the Middle East. We also took up the issues of Pakistani laborers since they constitute a major source of remittances to the country,” Umar told Arab News.
Responding to criticism of the price hikes, Asad Umar told the National Assembly on Monday: “The increase in fertilizer prices is due to enhanced rates on exporters of Punjab in the previous government, PTI government has even reduced the price of gas by 44 billion rupees for the exporters.”
However, exporters said that they are not clear about the measures announced by the government through the new finance bill. “They have announced duty exemption on raw material for the export sector and separated five zero-rated export industries, but we have not received written orders yet,” Jawad Bilwani, Central Chairman of Pakistan Hosiery Manufacturers and Exporters Association, said.
“Our major issue is trade deficit. What we need to do is enhance our exports, although it is not a simple task and will take time. We have to increase our exports and simultaneously bring down imports,” said Abdullah Yousuf, a member of the government’s task force on austerity and former chairman of Federal Board Revenue.
He added: “The cost of doing business in Pakistan is high as compared to our competitor nations. The government has to play a role in reducing production costs. Overheads, such as electricity, are high in comparison to competitors in India and Bangladesh.”
Pakistani exporters question government package to boost trade
Pakistani exporters question government package to boost trade
- Pakistan needs better management of exports to reduce current account deficit, say experts
- The government is actively engaging at multiple fronts to increase exports and reduce balance of payment deficit, said Finance Minister Asad Umar
Pakistan and Bangladesh establish business council in ‘milestone’ agreement
- FPCCI chief says strengthening trade relations requires cooperation between both business communities
- Pakistan’s deputy PM is also scheduled to visit Dhaka next month to further consolidate bilateral ties
ISLAMABAD: A landmark agreement to establish a joint business council was signed with Bangladesh on Tuesday, marking a “milestone” in efforts to enhance trade and economic cooperation between between the two states, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said.
Both countries share a complicated history, having once been a single entity known as East and West Pakistan until Bangladesh gained independence in 1971 following a war of liberation backed by India, Pakistan’s arch-rival.
Relations reached a new low in 2016 when Bangladesh executed several Jamaat-e-Islami leaders for alleged war crimes during the 1971 conflict, a move Pakistan condemned as “politically motivated,” saying the executions targeted individuals with a pro-Pakistan stance during the war.
Ties have warmed in recent months after former Prime Minister Sheikh Hasina was ousted last year following violent student-led protests. Her subsequent flight to India strained Dhaka’s relations with New Delhi, with Dhaka repeatedly demanding her extradition.
“The establishment of the Pakistan-Bangladesh Business Council is a milestone for trade relations between the two countries,” FPCCI President Atif Ikram Sheikh said after signing an agreement to that effect with representatives of the Administrative Federation of the Bangladesh Chamber of Commerce.
During the visit, the FPCCI chief led a Pakistani business delegation that held meetings with their counterparts in Bangladesh to discuss ways to enhance trade ties.
Speaking at a business forum hosted by the Bangladesh Chamber of Commerce and Industry, he also praised Bangladesh as a major economic power in South Asia.
“Strengthening trade relations requires mutual cooperation between the business communities of both nations,” Sheikh said, emphasizing the need to address key issues such as air connectivity, visa facilitation and prioritizing trade partnerships.
“There are vast opportunities for collaboration in agriculture, education, textiles and other sectors. The large populations of both countries should not be seen as a challenge but as an opportunity to drive economic growth,” he added.
Sheikh also reiterated his commitment to keeping the council active and fostering stronger links between the business communities of both nations.
The Trade Corporation of Pakistan also signed a memorandum of understanding for rice export to Bangladesh on Tuesday.
Pakistan’s Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka in the beginning of February to further consolidate the relations between the two countries.
Pakistan invites over 100 countries to maritime exercises from Feb. 7
- Pakistan Navy has conducted AMAN maritime exercise every two years since 2007 under the theme “Together For Peace”
- This year’s edition will include the inaugural AMAN Dialogue for senior naval and other leaders from participating nations
ISLAMABAD: Pakistan’s navy said on Tuesday it had invited over 100 countries for the AMAN maritime exercises that are held every two years involving ships, aircraft and special operation forces from Feb. 7-11, with the event including a dialogue for senior naval leaders for the first time.
The Pakistan Navy has conducted the AMAN (peace) maritime exercise every two years since 2007 under the theme “Together For Peace.” This year’s special feature is the inaugural AMAN Dialogue themed “Secure Seas, Prosperous Future,” with a focus on security challenges in the Indian Ocean including strategic competition, piracy, narco-trafficking, non-state actors, resource exploitation, climate change, emerging technologies like AI and unmanned systems, the blue economy, and the need for global collaboration to ensure stability and prosperity.
“Since its inception, AMAN exercise participation has grown steadily, with the 8th edition in 2023 hosting 50 countries, the largest ever, and this year we are expecting even more, as over 100 countries have been invited to the 9th edition scheduled from February 7-11,” Commodore Ahmed Hussain, Director General Public Relations of Pakistan Navy, said in a written statement shared with reporters at a briefing on Tuesday.
Hussain said the AMAN Dialogue would bring together chiefs of navies, coast guards and heads of defense forces of participating countries.
“Due to the growing global participation over the years, PN has initiated the AMAN Dialogue as an adjunct to the exercise and its inaugural session will be held in tandem with AMAN-25,” he said, adding that the aim of the dialogue was to provide a “dedicated forum” for senior leaders to discuss regional security and evolving challenges at sea.
“AMAN dialogue will include a summit of chiefs of navy and coast guards, a seminar encompassing academic activities and bilateral meetings between delegations,” he added.
“The main objectives are to promote peace and regional cooperation, enhance interoperability with regional and extra regional navies, thereby acting as a bridge between the regions, displaying united resolve against terrorism and crimes in the maritime domain.”
Other objectives of the dialogue include understanding maritime security issues and challenges confronting the region and their linkages with the economy.
Main activities during the exercise will include a maritime counter-terrorism demo by the Special Service Group (SSG) and Pak Marines, table top discussions on professional topics, and ship visits.
“An International Fleet Review is scheduled for February 11, 2025, alongside sea exercises to address collaborative security threats, with Special Operations Forces, Explosives Ordnance Disposal, and Marines teams participating in developing Tactics, Techniques, and Procedures for multinational responses to asymmetric threats,” the press statement added.
Pakistan polio program says 71 cases reported in 2024
- Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world
- Pakistan polio program is scheduled to hold first nationwide vaccination drive of 2025 from Feb. 3
ISLAMABAD: Pakistani health authorities on Tuesday confirmed one more polio case of 2024, which took last year’s nationwide count to 71.
Polio is a paralyzing disease that has no cure. Multiple doses of the oral polio vaccine and completion of the routine vaccination schedule for all children under the age of five is essential to provide children high immunity against this terrible disease.
The regional laboratory for polio eradication at the National Institute of Health in Islamabad confirmed the wild poliovirus type 1 (WPV1) in a male child in the Jacobabad district of the southern Sindh province. The case — the fifth one in Jacobabad last year — was reported on December 27, 2024, according to Pakistan polio program.
“Pakistan has been responding to an intense resurgence of WPV1, with 71 cases reported in 2024,” the polio program said in a statement. “Of these, 27 are from Balochistan, 21 from Khyber Pakhtunkhwa, 21 from Sindh, and one each from Punjab and Islamabad.”
Pakistan, along with neighboring Afghanistan, remains the last polio-endemic country in the world. In the early 1990s, Pakistan reported around 20,000 cases annually but in 2018 the number dropped to eight cases. Six cases were reported in 2023 and only one in 2021.
The Pakistan polio program is scheduled to hold first nationwide vaccination drive of this year from Feb. 3 till Feb. 9.
“It is crucial for parents to ensure vaccination for all their children under the age of five to keep them protected,” it said.
Pakistan PM calls for strategy to equip youth for global job market
- Shehbaz Sharif says Pakistan’s future is linked to the development of the information technology sector
- Government will soon launch a digital youth hub to provide information on employment to young people
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday called for a comprehensive strategy to equip Pakistan’s youth with professional skills tailored to international job markets while chairing a meeting on youth employment and skill development in Islamabad.
Estimates suggest that approximately 64 percent of Pakistan’s population is under the age of 30, offering a significant opportunity to drive economic growth through a young workforce contributing to entrepreneurship, innovation and diversification.
However, this youth bulge also poses challenges, including high unemployment rates, limited access to quality education and vocational training and the risk of social unrest due to underutilized potential.
The government, striving to stabilize the economy, has actively sought both domestic and foreign investment while engaging friendly nations, particularly in the Gulf region, to provide employment opportunities for young Pakistanis, especially in the field of information technology.
“It is essential to equip the youth with professional skills to increase employment opportunities,” Sharif was quoted as saying in a statement released by his office after he chaired a meeting of the Prime Minister’s Youth Program.
“Pakistan’s future is linked to the development of the IT sector,” he continued while directing the formation of a strategy aligned with the demands of the markets in friendly countries to provide overseas employment to young Pakistanis.
The prime minister emphasized the government’s focus on promoting the private sector to address domestic unemployment.
“The government is actively working on a policy to promote the private sector and address unemployment in the country,” he said.
He also called for action against fraudulent and unlicensed companies offering overseas employment, noting the need for stricter regulation to protect workers.
During the meeting, Sharif was briefed on the upcoming launch of the Prime Minister Digital Youth Hub, a platform designed to provide information on employment and other services to young people.
He directed the platform be made user-friendly and available not only in English but also in Urdu and other regional languages.
Trump look-alike sings to sell pudding in Pakistan
- Bagga, 53, sports distinctive blond quiff because of his albinism that makes him resemble Trump
- Residents of eastern Sahiwal say they take selfies with Bagga, tell people they met US president-elect
SAHIWAL, Pakistan, In a bustling market in Pakistan’s eastern Punjab province, a food vendor who locals say bears an uncanny resemblance to US President-elect Donald Trump gets more business — and attention — than others.
“We feel as if Trump has come here to sell kheer (pudding),” said Mohammad Yaseen, a local resident who prefers to buy the dessert from Saleem Bagga, the look-alike vendor who also sings to draw customers.
“When he sings to sell kheer, we come down to him,” Yaseen said.
Bagga, 53, pushes his colorful wooden cart along the road delivering the milky pudding, a black jacket over his beige shalwar kameez tunic to keep out the winter cold.
A crowd gathers as Bagga, who sports a distinctive blond quiff because of his albinism, sings the lyrics to a Punjabi song: “Now you come down to me my love, don’t delay, my eyes are tired of waiting.”
Local resident Imran Ashraf takes a selfie with Bagga. “His kheer is really delicious ... we talk to him and we take selfies with him and we tell our friends that we have taken these pictures with Trump,” Ashraf said.
Bagga is unfazed by the stream of attention and cameras that follow him throughout the market and even in his home neighborhood in the district of Sahiwal.
“My face resembles Donald Trump, that is why people take selfies with me...I feel very good,” he said, before extending an invitation.
“Donald Trump sahib (sir), you have won the election, now visit here and eat my kheer, you will really enjoy it,” he said.
