DUBAI: The economic implications of the attacks on Aramco oil facilities will be felt way further than the region, say representatives of the Pakistani community in the UAE.
Expressing concerns over the attacks that took place on Saudi Arabia’s biggest oil supply chain early on Saturday, the Pakistani community members in the UAE said that the economic outcomes will pose a challenge immediately and in the long run as well.
“Conflict is in nobody’s interest and whoever is behind the attacks, obviously has a bigger agenda,” Javed Khamisani, CEO of Allianz Hosting, an IT Services Company operating in the UAE, Pakistan and UK, told Arab News.
“We, in the UAE, are not immune to implications of the attack and the consequential increase in the oil prices. In fact, the impact will be felt globally and especially so in Pakistan which is highly dependent on imports,” said Khamisani.
Global oil prices are already 10 percent higher since the attack on the heart of Saudi Arabia’s oil infrastructure.
Ahmed Shaikhani, vice president of Pakistan Business Council (PBC) in Dubai, condemned the attack in clear terms.
“This attack should not have happened...the economic conditions are already not too viable worldwide and will further become challenging after this incident including in the UAE,” he told Arab News, adding that the common man would bear the brunt of this attack.
According to Khamisani, the disruption in oil production would drive up costs, impacting the salaried class majorly. “Transport costs will go up and it will make a huge difference to the day to day life of common man...budgets will be affected. This will happen only in the UAE, where majority of the people are from the salaried class, but even beyond the region, until Pakistan.”
However, the President of Pakistan Business Council (PBC) in Dubai, Iqbal Dawood was quite optimistic that the situation would was short lived and would be handled well.
“A disturbance has definitely been created and oil prices have gone up but I am positive that all the problems will be resolved in a proper manner since the leadership in Saudi Arabia is very strong,” he said.
The attacks on Aramco’s main crude processing facility knocked out 5.7 million barrels of daily oil production for Saudi Arabia, or more than five percent of the world’s daily crude production.
Dr. Hadi Shahid, Chartered Accountant and Managing Partner, Alliot, UAE said that “We, as a community, feel terrible and all our support is with Saudi Arabia at this point,” adding that the country’s leadership was strong and would get to the heart of the matter.
Global energy prices spiked Monday by a percentage unseen since the 1991 Gulf War after the weekend attack on key oil facilities in Saudi Arabia caused the worst disruption to world supplies on record, further fueling heightened tensions between Iran and the US.
Saudi Arabia is the world’s biggest crude exporter and one of the top producers. The attack removed half of its output- 5.7 million barrels per day (bpd), or the equivalent to five percent of global supplies.
Aramco attack implications to go beyond region: Pakistani expats
Aramco attack implications to go beyond region: Pakistani expats
- Say the economic conditions will become challenging after this incident including in the UAE
- As a community, feel terrible and all our support is with Saudi Arabia,” - Pakistani expat Dr Hadi Shahid
Pakistan stocks bounce back strongly a day after ‘massacre’ at bourse
- The KSE-100 index gained 3238 points to close the weekend trading session at 109,513 points
- Stock analysts attribute strong recovery of the market to easing pressure at local mutual funds
ISLAMABAD: The Pakistan Stock Market on Friday bounced back strongly and gained more than 3,000 points, stock analysts said, a day after it witnessed a “massacre” on the back of significant redemptions from local mutual funds and year-end profit-taking.
The benchmark KSE-100 index gained 3238.17 points to close the weekend trading session at 109,513.14 points. On Thursday, the index plummeted by 5,132 points, or 4.32 percent, to close at 106,274.97 points, compared to Wednesday’s close of 111,070.29 points.
Stock analysts attributed the strong recovery to easing pressure at local mutual funds.
“Likely easing redemption pressure at local mutual funds together with the opening up of attractive valuations encouraged value buyers to reenter the market,” Raza Jafri, head of equities at Intermarket Securities, told Arab News.
Thursday’s slump was led by Hub Power Company Limited, United Bank Limited, Oil and Gas Development Company, and ENGRO, cumulatively contributing a staggering 1,556 points to the index’s overall decline, according to Topline Securities.
The sharp sell-off was triggered by significant redemptions from local mutual funds, compounded by year-end profit-taking by institutions, that dragged the market into a “turmoil,” it added.
The decline came days after Pakistan’s central bank cut its key interest rate by 200 basis points to 13 percent, marking the fifth straight reduction since June.
Yousuf M. Farooq, head of research at Chase Securities, said the market had entered a corrective phase, following a significant rally over the past year.
“We believe that earnings will now drive market performance rather than valuation rerating,” he added.
Pakistan province aims to collect weapons to stem clashes, tribesmen may resist
- Kurram, a tribal district near the border with Afghanistan, has been a flashpoint for sectarian tensions for decades
- Last month’s clashes between Sunni and Shiite tribes have triggered a humanitarian crisis with reports of starvation
PESHAWAR: Provincial authorities in northwestern Pakistan said on Friday they planned to collect heavy weapons to stop sectarian clashes that have killed hundreds, but tribesmen in the historically lawless region said they would not give up their arms.
Kurram, a tribal district of around 600,000 near the border with Afghanistan where federal and provincial authorities have traditionally exerted limited control, has been a flashpoint for sectarian tensions for decades.
Fresh clashes between Sunni and Shiite Muslims erupted last month, triggering a humanitarian crisis with reports of starvation, lack of medicine and oxygen shortages following the blocking of the main highway connecting Kurram’s main city of Parachinar to the provincial capital Peshawar.
Mohammad Ali Saif, spokesman for the Khyber Pakhtunkhwa provincial government, said authorities had decided to dismantle private bunkers — observation posts used in the fighting by both sides — and collect heavy weapons from tribesmen in Kurram to stop the violence.
However, local tribesmen have refused to surrender their weapons, citing concerns about their safety.
“Our weapons are for self-defense, not against the state,” said Jalal Hussain Bangash, a local tribal leader.
Another tribal elder, Zakir Hussain, warned that disarmament would leave the Shiite community vulnerable to attacks. “The government is ignoring ground realities in Kurram,” he said.
“We don’t have medicine in medical stores and edibles in the markets. Previously we would use Afghanistan when the road was closed, but now the Afghan border is also closed for us after the Taliban took over the country.”
Mehdi Hussain, a doctor at the District Headquarters Hospital in Parachinar, told Reuters that more than 80 people, including children, had died in recent weeks due to the lack of medical supplies.
The provincial government and Edhi Foundation have started sending medicines to the region via helicopters.
Pakistan PM orders action against officials aiding human traffickers after Greek boat tragedy
- Five Pakistani nationals drowned last week after a boat carrying migrants capsized off Greece
- Four districts of eastern Punjab province identified as ‘most vulnerable’ to human traffickers
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday directed action against government officials who were facilitating human traffickers, his office said, following the death of five Pakistani nationals in a migrant boat capsize off Greece.
The boat tragedy, which occurred last week, underscored the perilous journeys many migrants undertake due to conflicts around the world. In the case of Pakistani nationals, the movement is mostly driven by economic reasons, with many young individuals attempting to reach European shores in search of better financial prospects.
Sharif presided over a meeting on Friday to discuss the measures the government needed to take to prevent human trafficking, which he said had brought disgrace to Pakistan worldwide.
“PM directs identification of Federal Investigation Agency officials involved in facilitating human traffickers and strict action against them,” Sharif’s office said in a statement.
The participants were briefed on the Dec. 14 boat incident off Greece and the steps taken to combat human trafficking, including parliamentary efforts to improve legislation on the issue.
The prime minister was informed that only five Pakistanis had been identified so far, while the identities of the others were still being verified, according to his office. The Pakistani embassy in Athens was in constant contact with Greek authorities regarding the migrant boat incident.
“For information and assistance regarding boat accident, Pakistan Embassy in Athens can be contacted on helpline +30-6943850188 and Ministry of Foreign Affairs Crisis Management Unit number 0519207887,” the statement read.
Sharif directed government authorities improve coordination to prevent human trafficking, highlighting that the Gujranwala, Gujrat, Sialkot and Mandi Bahauddin districts of Pakistan’s eastern Punjab province were the “most vulnerable” to traffickers.
He ordered action against officials who conducted a delayed investigation into those responsible for a 2023 boat capsizing incident in Greece that involved hundreds of migrants, including 262 Pakistanis, according to the statement.
The migrants drowned when an overcrowded vessel capsized in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever recorded in the Mediterranean Sea.
Sharif directed authorities complete the ongoing investigation into human traffickers at the earliest and submit a report in this regard.
Pakistan plans to set up 35 special economic zones to facilitate businesses, industry
- Pakistani officials say over 200 B2B agreements reached with several Chinese companies, signed MoUs worth $70 million
- PM Shehbaz Sharif calls for accelerating work on regulatory reforms to provide a conducive environment for businesses
ISLAMABAD: Pakistan plans to establish 35 special economic zones (SEZs) to facilitate businesses and industry, officials said on Friday, amid Islamabad’s efforts to boost foreign investment.
The statement came at a meeting of Board of Investment (BOI) officials, presided over by Prime Minister Shehbaz Sharif, to review progress of various ongoing projects, according to Sharif’s office.
Officials briefed the prime minister that they had conducted a survey of the 35 SEZs under the Geographical Information System (GIS) and had extensive data to accelerate the progress of projects in these zones.
More than 200 business-to-business (B2B) agreements have been reached with several Chinese companies and memorandums of understanding (MoUs) worth $70 million have been signed, they added.
“Work on regulatory reforms should be accelerated to provide a conducive environment for business in the country,” Sharif was quoted as saying by his office.
“An effective and comprehensive roadmap should be created for the completion of B2B agreements with international investors and the implementation of signed memorandums of understanding.”
Pakistan, which has been facing an economic crisis, has been making attempts to boost foreign direct investment in a bid to support its $350 billion fragile economy, with Islamabad seeing a flurry of high-level exchanges with China, Saudi Arabia, Japan, Tajikistan, Azerbaijan, Qatar and other countries in recent months.
During the BOI meeting, PM Sharif instructed officials to set investment targets that could be achieved at the earliest.
“Effective marketing of investment opportunities in Pakistan is essential to attract foreign investors,” he said. “Construction of business facilitation centers, organization of road shows and other such measures are very important to bring foreign investment to the country.
Pakistan announces tariff cuts on imports under Azerbaijan trade deal
- Imports from Azerbaijan exempted from all kinds of customs and regulatory duties from Dec. 16
- Pakistan and Azerbaijan signed trade agreement in July during President Aliyev’s visit to Islamabad
KARACHI: Pakistan’s Federal Board of Revenue (FBR) has waived off customs and regulatory duties on imports from Azerbaijan under the Pakistan-Azerbaijan Preferential Trade Agreement, the finance ministry said in a notification this month.
During Azerbaijan President Ilham Aliyev’s two-day visit to Pakistan in July, both nations agreed to enhance the volume of bilateral trade to $2 billion, vowing to strengthen ties and increase cooperation in mutually beneficial economic projects. They also signed the Pakistan-Azerbaijan Preferential Trade Agreement to boost economic cooperation through the reduction of tariffs on goods like Pakistani sports equipment, leather, and pharmaceuticals as well as Azerbaijani oil and gas products.
“The federal government is pleased to exempt with effect from Dec. 16, 2024, the import into Pakistan from Azerbaijan of the goods specified,” the finance ministry said in a notification. adding that imports from Azerbaijan would be exempted from all kinds of tariffs including customs duty, additional customs duty and regulatory duty.
“Provided that where the rates of customs duty, additional customs duty, and regulatory duty [...] are higher than specified rates, the lower rates [...] shall apply,” it added.
The tariff concessions cover items including shelled hazelnuts or filberts, apricots, vegetable saps and extracts, non-stemmed tobacco, polyethylene, propylene copolymers, casing, tubing, drill pipes and refined copper wire with a maximum cross-sectional dimension exceeding 6 mm.
In recent weeks, there has been a flurry of visits, investment talks and economic activity between officials from Pakistan and the Central Asian nations as well as other transcontinental and landlocked countries like Azerbaijan as Islamabad seeks to consolidate the South Asian nation’s role as a pivotal trade and transit hub.
