KARACHI: As the second phase of the Pak-China Free Trade Agreement (FTA) comes into force from January 1, enabling the country to export 1037 products to China on zero duty, Pakistani industrialists are caught in a classic catch-22 situation, saying they will not be able to draw immediate benefits from the arrangement.
Pakistan and China on December 31, 2019, signed the second Sino-Pak FTA which will allow Pakistani manufacturers and traders to export 313 new products on zero duty to China. Pakistan already enjoys export of 724 duty-free products to the Chinese market.
“I had the honor of concluding the agreement for Pakistan in April, 2019, hoping it would help increase our exports substantially,” Sardar Ahmad Nawaz Sukhera, Secretary Commerce, tweeted after signing the agreement.
However, Pakistani industrialists say it will be hard for them to reap the benefits of the deal against the backdrop of the gradual economic slowdown. “They have relaxed 313 items, but our problem is that we don’t have anything to sell because there is not productivity,” Mian Anjum Nisar, newly elected president of the Federation of Pakistan Chambers of Commerce (FPCCI) told Arab News on Thursday. “We have witnessed deindustrialization in the last five years.”
He said that the business community is facing liquidly problems since their refunds remained unpaid while the input cost, including gas, electricity and markup, had multiplied.
Pakistan expects that the production of cotton, which is a basic ingredient for textile goods, would be around 8 million bales this year against the demand of 15 million bales. “Pakistan will have to import around 6 million bales which will have value addition impact of around $6 billion,” Nisar added.
The FPCCI fears that the current situation will result in sick industries due to high input costs, if corrective measures are not taken.
To meet the international demand, industrialists say they will have to increase the production capacity by setting up new industries. “We will not be able to draw immediate benefits from the Pak-China FTA unless we managed to enhance productivity. You need to have something to sell in a market,” the FPCCI president said.
Pakistani industrialists also view the United States-China trade war as an opportunity, though they say they are unable to draw the benefits. “This is a new opportunity as industries in China are moving toward substitution and trade will be diverted to other countries. If we succeed in capturing a portion of that trade, it will increase our exports, though we will require long term planning and infrastructure development,” he added.
The protocol for the second phase of China-Pakistan FTA was signed by both countries during Prime Minister Imran Khan’s visit to Beijing on in April 2019.
“Under Phase-II, Pakistan has secured enhanced and deeper concessions on products of its export interests, revision of safeguards mechanism for protection of the domestic industry, inclusion of the balance of payment clause as a safety valve against balance of payments difficulties, and effective enforcement of the electronic data exchange,” according to the Commerce Ministry.
Pakistan to export 1,037 duty-free products to China
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Pakistan to export 1,037 duty-free products to China
- Local industrialists say they will not benefit from the arrangement immediately due to declining productivity
- Rising costs of gas, electricity and high markups are causing “deindustrialization” in Pakistan, President FPCCI
Pakistan, China ink deal to boost resilience against climate disasters
- Planning Minister Ahsan Iqbal holds meeting with CIDCA Director Luo Zhaohu in Kunming
- Pakistan’s Climate Information and Early Warning System Project was launched in February 2023
ISLAMABAD: Islamabad and Beijing have signed a climate cooperation agreement to implement an information and early warning system in Pakistan with the aim to strengthen the South Asian nation’s resilience against climate-related disasters, state media reported on Tuesday.
The Climate Information and Early Warning System Project, which is being implemented by the Pakistani ministry of climate change and the United Nations Development Program, began in February 2023 and aims to install early warning systems as well as carry out capacity building, community engagement and sustainable livelihood support projects, particularly in the northern regions of the country vulnerable to Glacial Lake Outburst Floods (GLOFs). GLOFs can occur when a glacial lake’s moraine dam rapidly accumulates water and bursts. The resulting release of water and debris can cause catastrophic destruction to downstream areas.
Pakistani Planning and Development Minister Ahsan Iqbal is visiting China to attend the 3rd China-Indian Ocean Region Forum on Blue Economy Cooperation from Dec. 15-17, a dialogue Beijing says is aimed at connecting governments, financial institutions and businesses to promote regional integration in the development of the blue economy.
During his visit, Iqbal held a meeting on Tuesday with the director of the China International Development Cooperation Agency (CIDCA), Luo Zhaohui in Kunming.
“Following the meeting Zhaohui and Iqbal signed cooperation documents including those related to the implementation of Pakistan’s Climate Information and Early Warning System Project,” the Associated Press of Pakistan (APP) said on Tuesday.
APP quoted Luo as saying CIDCA was committed to working with Pakistan to implement the climate agreements, actively promote the joint construction of Belt and Road Initiative (BRI) projects, implement the Global Development Initiative (GDI), and deepen China-Pakistan development cooperation in general.
“CIDCA is committed to supporting Pakistan’s post-flood reconstruction and rehabilitation efforts, solidifying the enduring partnership between the two nations,” state media said, quoting Luo.
According to the Global Climate Risk Index, Pakistan is the fifth most vulnerable country to climate change, annually facing extreme weather events like floods, droughts and heatwaves that significantly affect agriculture, infrastructure and livelihoods.
In 2022, unusually heavy rains triggered floods in many parts of Pakistan, killing over 1,700 people, inflicting economic losses of around $30 billion, and affecting at least 30 million people.
Aid reaches remote Pakistan valley hit by sectarian clashes
- Residents have reported food, medicine shortages in parts of northwestern Kurram district
- Government is struggling to end a reignited decades-old feud between rival communities
PESHAWAR: Aid flights landed in a remote Pakistan valley on Tuesday where thousands of people are stranded because of sectarian clashes that have killed more than 200 people since July.
Residents have reported food and medicine shortages in parts of Kurram district, which borders Afghanistan, as the government struggles to end a reignited feud between Sunni and Shiite Muslims stemming from decades-old tensions over farmland.
Sher Gul, the head of private welfare organization Edhi, said they would make several flights a day from the city of Peshawar to the valley for the rest of the week, depending on weather.
“We plan to bring around three wounded back on each flight... and deliver medicines for the injured,” he told AFP.
Various truces have been announced since the latest round of fighting began, as elders from the two sides negotiate a lasting agreement.
In the meantime, the government has shut down key roads in and out of the district in an attempt to quell the violence, after a security convoy escorting residents was attacked in November, leaving more than 40 dead.
Mobile and Internet services are also disrupted in the area.
Members of the Shiite community are also particularly vulnerable as they must pass through Sunni-majority neighborhoods to reach essential services.
At least 133 people have been killed and 177 wounded in sporadic clashes since November 21.
The Human Rights Commission of Pakistan said 79 people had been killed in the region between July and October.
Police have regularly struggled to control violence in Kurram, which was part of the semi-autonomous Federally Administered Tribal Areas until it was merged with Khyber Pakhtunkhwa in 2018. The feuding is generally rekindled by disputes over land in the rugged mountainous region, and fueled by underlying tensions between the communities adhering to different sects of Islam.
Two policemen killed, three injured in suspected militant attack on checkpoint in Pakistan
- Gunmen attacked a check post in Shangla district in Khyber Pakhtunkhwa province with guns and hand grenades
- Such attacks are rising in Khyber Pakhtunkhwa, with most claimed by Pakistan’s indigenous Taliban movement
PESHAWAR: Two policemen were killed and three injured in an attack on a check post in Pakistan’s northwestern Khyber Pakhtunkhwa province in the latest incident of suspected militant violence in the restive region bordering Afghanistan, police said on Tuesday.
Such attacks have been on the rise in KP in recent months, with most claimed by Pakistan’s indigenous Taliban movement, the Tehreek-e-Taliban Pakistan (TTP), and other militant groups that target security forces’ convoys and check posts and carry out daily targeted killings and kidnappings of law enforcers and government officials.
The TTP is a separate group but a close ally of the Afghan Taliban who rule Kabul.
“At around 11pm last night [Monday], terrorists attacked a check post which left two police officers martyred, and three policemen injured,” police official Maqbool Ahmed told Arab News on Tuesday, saying the assault took place in the Chakesar area of the province’s Shangla district, with militants hurling hand grenades at the post and opening fire in a drive-by attack.
No group has as yet claimed the attack.
Interior Minister Mohsin Naqvi condemned the attack, a report published in state broadcaster Radio Pakistan said, identifying the deceased cops as Assistant Sub Inspector Hassan Khan and Head Constable Nisar Khan.
Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting militant groups like the TTP, urging the administration there to prevent its territory from being used by armed factions to launch cross-border attacks.
The Afghan Taliban deny the charge, insisting Pakistan’s security issues are an internal matter.
Gaza, Lebanon in focus as Pakistani leaders head to summit of D-8 developing nations
- D-8 summit in Cairo from Dec 18-20 will see gathering of leaders from eight countries to promote economic cooperation
- PM to attend special session on Gaza where Israeli military campaign has killed over 46,000 people since Oct. 7 last year
ISLAMABAD: Pakistan will participate in the Eleventh Summit of the Developing Eight (D-8) countries being held in Egypt from Dec. 18-20 where Israel’s military offensive on Gaza and the humanitarian crisis and reconstruction efforts in the besieged enclave as well as neighboring Lebanon will be at the center of discussions, the foreign office said on Tuesday.
Prime Minister Shehbaz Sharif will leave for Egypt tomorrow, Wednesday, for the main summit while Deputy Prime Minister Ishaq Dar left today, Tuesday, to attend the 21st Session of the D-8 Council of Ministers on Dec. 18.
The D-8 Summit is a gathering of leaders from eight developing countries including Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkiye. It aims to promote economic cooperation and development among member states, with a focus on areas like trade, energy, agriculture, and transportation.
Besides addressing the summit and holding bilateral meetings on the sidelines, Sharif will attend a special session on the humanitarian crisis and reconstruction challenges in Gaza and Lebanon following Israel military offensives in the Middle East since October last year.
“He will underline Pakistan’s principled position on the situation in Palestine and call for peace in the Middle East,” the foreign office said.
Health officials in the Gaza Strip said on Monday the death toll from the 14-month war between Israel and Hamas had topped 45,000 people.
The Gaza Health Ministry does not distinguish between civilians and combatants in its count, but it has said that more than half of the fatalities are women and children. The Israeli military says it has killed more than 17,000 militants, without providing evidence.
The theme of this year’s D-8 Summit is “Investing in Youth and Supporting SMEs: Shaping Tomorrow’s Economy.”
“At the Summit, the Prime Minister will underline the importance of investing in youth and SMEs for building a strong and inclusive economy; creating jobs; advancing innovation; and promoting local entrepreneurship,” the foreign office said.
“He will express Pakistan’s strong commitment to the ideals of D-8; underscore the importance of fostering partnerships for mutual benefit and prosperity; and promoting cooperation in agriculture, food security and tourism. He will also underline Pakistan’s incentives for youth empowerment and financial development.”
Pakistani, Saudi interior ministers discuss security, narcotics control cooperation in Riyadh
- Naqvi’s meeting with interior minister follows meeting with head of Saudi General Directorate of Narcotics Control
- Naqvi arrived in Riyadh on Sunday as the longtime allies seek to forge closer economic, investment and security ties
ISLAMABAD: Pakistani Interior Minister Mohsin Naqvi met with Saudi Arabia’s Minister of Interior, Prince Abdulaziz bin Saud bin Naif, in Riyadh on Tuesday and discussed security cooperation and joint narcotics control measures.
Naqvi’s meeting with the Saudi interior minister follows a meeting on Monday with Major General Mohammed bin Saeed Al-Qarni, the head of the Kingdom’s General Directorate of Narcotics Control (GDNC).
Naqvi arrived in Riyadh on Sunday to discuss bilateral ties as both countries seek closer economic, investment and security ties.
“The ministers discussed security cooperation between Pakistan and Saudi Arabia,” the Pakistani interior ministry said in a statement. “Prince Abdulaziz and Mohsin Naqvi also discussed measures to combat drug smuggling and other issues of mutual interest. The meeting included discussions on enhancing cooperation in narcotics control.”
On Sunday, Naqvi also met with the Kingdom’s Director of Public Security, Lt. Gen. Mohammed bin Abdullah Al-Bassami, and inspected various departments of the state-of-the-art Directorate of Public Security and the Safe City Center.
“During the meeting, it was agreed to activate the joint task force [on public security] between Pakistan and Saudi Arabia soon,” the Pakistani interior ministry said in a statement, with Naqvi adding that he was glad to see “excellent” public security mechanisms in Saudi Arabia and both sides could benefit from each other’s experiences in the field of police training.
