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Pakistan minister in Saudi Arabia to finalize investment part of free trade agreement with GCC

Pakistani delegation, headed by country's caretaker commerce minister Gohar Ejaz, in a meeting with GCC officials in Riyadh, Saudi Arabia on December 2, 2023. (Photo courtesy: Ministry of Commerce)
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Updated 02 December 2023
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Pakistan minister in Saudi Arabia to finalize investment part of free trade agreement with GCC

  • Pakistan, GCC signed framework agreement to discuss the FTA in 2004, but only a few rounds of talks were held in subsequent years
  • Last year, both sides held technical-level talks to examine the possibility of signing the agreement that can help Pakistan boost exports
Updated 02 December 2023
Arab News Pakistan

ISLAMABAD: Pakistan's Caretaker Commerce Minister Gohar Ejaz arrived in Saudi Arabia for the finalization of investment-related chapter of a proposed free trade agreement (FTA) between Pakistan and the Gulf Cooperation Council, the Pakistani commerce ministry said on Saturday. 

Pakistan and the six-member GCC bloc signed a framework agreement to discuss the FTA in August 2004 but only a few rounds of negotiations took place in subsequent years. However, the GCC and Pakistan resumed the discussions in 2021 after a significantly long period. 

Last year, both sides held technical-level talks to examine the possibility of signing the agreement that could help Pakistan boost its exports to the six-nation bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar and Kuwait.  

The Pakistani commerce minister on Saturday held parleys with the GCC's chief negotiator to finalize investment-related part of the proposed agreement. 

"The technical teams from two sides held extensive discussions on the remaining details of the investment chapter, including investment protection and facilitation,"  the Pakistani commerce ministry said in a statement. 

"They also discussed the potential impact of the FTA on bilateral trade and investment flows." 

The FTA is expected to boost trade and investment between Pakistan and the GCC, according to the statement. The agreement will also create new jobs and opportunities for businesses in both regions. 

“This is a major step forward in our efforts to strengthen economic ties between Pakistan and the GCC,” Ejaz was quoted as saying by his ministry. 

It said the investment chapter was an important part of the agreement and it was confident that an agreement would soon be reached between the two sides.  

"The two sides also discussed the possibility of holding a joint business forum in the near future to promote trade and investment between Pakistan and the GCC," the ministry added.  

The development comes as Pakistan treads a tricky path to economic recovery after securing a crucial $3 billion bailout deal with the International Monetary Fund (IMF) in June. 

Currently, the South Asian country has free trade agreements with China, Malaysia, and Sri Lanka, but it still needs to increase exports to other trade destinations. 

Topics: Pakistan Saudi Arabia Pakistan Saudi Ties

Pakistan, Russia sign first ever barter trade deal at inaugural trade forum in Moscow

Updated 10 sec ago
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Pakistan, Russia sign first ever barter trade deal at inaugural trade forum in Moscow

  • More than 60 Pakistani and 100 Russian companies are participating in the event in the Russian capital of Moscow
  • Pakistan and Russia, once Cold War rivals, have warmed up to each other in recent years through regular interactions
Updated 10 sec ago
SAIMA SHABBIR

ISLAMABAD: Pakistan and Russia have signed a first ever agreement on barter trade between the two countries, the Pakistani embassy in Moscow said on Tuesday, as a delegation of over 60 Pakistani companies participated in an inaugural Pakistan-Russia Trade and Investment Forum in Moscow.
The forum was inaugurated by Pakistan’s Ambassador to Russia Muhammad Khalid Jamali along with high-level Russian officials, including Deputy Minister of Industry and Trade Alexey Gruzdev and Evgeny Fidchuk, an adviser to the Russian transport minister.
The Pakistani delegation, led by Privatization Minister Abdul Aleem Khan, attended the forum with an aim to strengthen economic ties and explore new business opportunities in Russia. According to the Pakistani embassy in Moscow, over 100 Russian companies are taking part in the forum as well.
“A significant milestone was achieved with the signing of the first-ever MoU [Memorandum of Understanding] on barter trade between Pakistan and Russia,” the Pakistani embassy told Arab News in a statement.
“The Russian company, LLC Astarta Agrotrading, and Pakistani firms, Meskay & Femtee Trading Company and National Fruit Processing Factory, entered into agreements for the exchange of goods, including chickpeas, rice, mandarins, potatoes and red lentils.”
More than 60 Pakistani companies, having a combined export value exceeding $500 million, showcased a diverse range of Pakistani products and services, including textiles, leather, sports goods, pharmaceuticals, food, agricultural products, logistics, and tourism, at the event, according to the Pakistani mission.
On the Russian side, more than 60 officials from the Industry and Trade, Agriculture, Economic Development and other ministries as well as representatives from the Russian Export Center, Federal Chamber, Moscow Chamber, regional chambers and leading associations attended the forum. Additionally, Russian banks such as MKB were present to explore potential collaborations.
Addressing the forum, Pakistani Privatization Minister Khan said the current trade volume between the two countries did not reflect their potential.
“Our desire is to enhance trade and investment,” the minister said in televised comments, adding that Pakistan constituted the 5th largest market in the world and had the most liberal trade and investment regime.
“There is a huge potential for an increase in trade between the two countries and today marks the start of new bilateral relations with Russia.”
Russian Deputy Trade and Investment Minister Gruzdev welcomed the Pakistani delegates and said this interaction would have a positive impact on bilateral relations between the two countries.
“This forum will open new avenues of trade and investment,” he added.
In his inaugural address, Pakistan’s Ambassador Jamali emphasized the forum would increase trade opportunities between Pakistan and Russia.
“Trade will benefit both countries and we already have a mechanism for road transport as we signed a road transport agreement in 2022,” he added.
Pakistan and Russia, once Cold War rivals, have warmed up to each other in recent years through regular business and trade interactions. As Islamabad seeks to enhance its role as a transit hub for landlocked economies in Central Asia, it has expressed interest in connecting with Russia through Central Asian states for bilateral trade.
Islamabad’s ties with Russia also saw significant improvement last year after Pakistan started purchasing Russian crude oil at a discount rate. The development came after geopolitical tensions almost doubled the fuel prices in Pakistan last year, forcing the South Asian country to opt for cheaper sources of fuel.
Pakistan also received its first shipment of liquified petroleum gas from Russia in September 2023, marking Islamabad’s second major Russian energy purchase.
Last month, Russia’s Deputy Prime Minister Alexei Overchuk arrived in Islamabad on a brief visit, seeking to expand trade and investment ties with Pakistan.

Topics: Pakistan Russia Ties

Pakistan annual inflation slows to lowest in almost four years in September

Updated 01 October 2024
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Pakistan annual inflation slows to lowest in almost four years in September

  • Consumer prices rose 6.93% in September from a year ago, according to Bureau of Statistics 
  • CPI decreased by 0.5% in Sept. 2024 as compared to increase of 0.4% in previous month
Updated 01 October 2024
Aamir Saeed

ISLAMABAD: Pakistan’s inflation clocked in at 6.9% on a year-on-year basis in September 2024, the bureau of statistics said on Tuesday, slowing to the lowest rate in almost four years after the government slashed fuel prices and food costs eased.

Consumer prices rose 6.93% in September from a year ago, according to data released by Pakistan Bureau of Statistics. The reading in August 2024 stood at 9.6%.

On a month-on-month basis, CPI decreased by 0.5% in September 2024 as compared to an increase of 0.4% in the previous month and an increase of 2.0% in September 2023.

“CPI National for the month of September, 2024 decreased to 6.93% over September, 2023,” the statistics bureau said in a statement. “The Urban CPI decreased to 9.29% while Rural CPI decreased to 3.65%.”

“Due to aggressive monetary tightening, the State Bank of Pakistan (SBP) has achieved bringing inflation below the one-year target of 7% ahead of time,” Mohammed Sohail, CEO Topline Securities, said in a note.

Pakistan’s Finance Division announced on Monday it had slashed the price of petrol by Rs2.07 per liter till the next fortnight due to the fluctuating global prices of petroleum products.

Petroleum and electricity prices have been the key drivers of high inflation in Pakistan over the past two years. Inflation averaged close to 30% in FY23 and 23.4% in FY24, which ended on June 30, 2024.

The September inflation reading is lower than official expectations, as the finance ministry had expected inflation to decelerate in the next two months (September-October) and hover around 8-9%.

“Inflation is expected to remain within the range of 8% to 9% in September and October 2024,” the Ministry of Finance said in its ‘Monthly Economic Update and Outlook’ released last week. 

The slowing inflation figure also gives impetus to a further cut in the key policy rate.

In September, the central bank announced its most aggressive cut in the key policy rate since April 2020, reducing it by 200bps to bring it down to 17.5% amid slowing inflation and declining international oil prices.

“With continued disinflation expected, mainly on the back of high base effect, falling global commodities, this gives SBP room to keep lowering the policy rate, as real interest rates are nearly 1090bps positive,” Shahid Ali Habib, CEO Arif Habib Limited, said in a note.

The IMF last month approved a $7 billion loan program that includes tough measures such as higher taxes on farm incomes and electricity prices. The prospect of such moves has worried poor and middle-class Pakistanis. But inflation has started moving on a downward trend, albeit from a high base.

Topics: Pakistan inflation in Pakistan Pakistan economy Arab News Pakistan

Over 80 Pakistani firms to participate in major Gulf tech show this month

Updated 01 October 2024
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Over 80 Pakistani firms to participate in major Gulf tech show this month

  • Gitex Global is considered one of the world’s largest IT events 
  • This year’s event slated to be held at Dubai World Trade Center 
Updated 01 October 2024
Hasaan Ali Khan

ISLAMABAD: More than 80 Pakistani companies will be showcasing their products and services at the Gulf Information Technology Exhibition (Gitex) 2024, slated to be held this month in the United Arab Emirates, state-run media reported on Tuesday.

Gitex Global is considered one of the world’s largest tech shows, connecting industry leaders from big tech and innovative startups, as well as government officials, expert investors and corporate buyers. This year’s event will be held from Oct. 14-18 in Dubai. 

“The Pakistan Software Export Board and Trade Development Authority of Pakistan will be attending the event with more than 80 leading companies and start-ups participating,” Radio Pakistan said on Tuesday. 

Last year, representatives of Pakistani IT firms described the Gitex event as a “great” platform for Pakistani companies to connect with global firms and sign agreements and partnership deals. 

Last year’s 43rd edition of the Gitex event, focusing on AI innovations, featured over 6,000 exhibitors and at least 180,000 tech executives from 170 countries.

Topics: Pakistan Dubai Ties

T20 World Cup: Pakistan say have ‘advantage’ as conditions in Multan similar to Dubai

Updated 01 October 2024
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T20 World Cup: Pakistan say have ‘advantage’ as conditions in Multan similar to Dubai

  • Pakistan women’s team placed in Group B with Australia, India, New Zealand and Sri Lanka 
  • Pakistan will play their first match against Sri Lanka on Thursday before facing India on Oct. 6
Updated 01 October 2024
Hasaan Ali Khan

ISLAMABAD: Pakistan women’s cricket team member Tuba Hassan on Tuesday hoped the green shirts will be able to take advantage of the conditions in Dubai, saying that they were quite similar to Multan, as the national squad gears up for the upcoming T20 World Cup in the United Arab Emirates. 

The ICC Women’s T20 World Cup is scheduled to be played in the UAE from Oct. 3-20. Pakistan has been placed in Group B with heavyweights Australia, India, New Zealand and Sri Lanka. The South Asian nation will play their first match against Sri Lanka on Thursday before facing off against arch-rivals India on Oct. 6. 

“The conditions in Multan and Dubai are almost the same,” Hassan said in a video message shared by the Pakistan Cricket Board (PCB). “We have this advantage.”

The South African women’s team beat Pakistan 2-1 in a three-match T20 series that took place in Pakistan last month. Despite the loss, cricketer Tasmia Rubab said she gained a lot of confidence after playing for Pakistan in the three-match series last month. 

The cricketer hoped she could muster the same confidence in the World Cup this month. 

“There are a lot of big teams in the World Cup against whom we will compete,” she said. 

Pakistan made a dismal start to their World Cup preparations, losing to Scotland and Bangladesh in both warm-up matches. On Saturday, Scotland defeated Pakistan by eight wickets while the green shirts lost to Bangladesh on Monday by 23 runs. 

Still, cricketer Najiha Alvi hoped the green shirts would put up a good performance against the other teams. 

“I hope we will perform well in the World Cup,” Alvi said. 

Pakistan squad: Fatima Sana (captain), Aliya Riaz, Diana Baig, Gull Feroza, Iram Javed, Muneeba Ali (wicket-keeper), Nashra Sundhu, Nida Dar, Omaima Sohail, Sadaf Shamas, Sadia Iqbal (subject to fitness), Sidra Amin, Syeda Aroob Shah, Tasmia Rubab and Tuba Hassan

Traveling reserve: Najiha Alvi (wicket-keeper)

Non-traveling reserves: Rameen Shamim and Umm-e-Hani

Topics: Pakistan cricket team Cricket Women T20 World Cup Dubai ICC T20 World Cup

International Maritime Organization launches major ship recycling project in Pakistan

Updated 01 October 2024
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International Maritime Organization launches major ship recycling project in Pakistan

  • Safe and Environmentally Sound Recycling of Ships and Decent Work Project holds first workshop in Karachi
  • Pakistan is among top five ship recycling nations in the world, new project builds on ongoing project in Bangladesh
Updated 01 October 2024
Arab News Pakistan

ISLAMABAD: The International Maritime Organization has launched a new project to promote sustainable ship recycling in Pakistan, one of the top five ship recycling nations in the world. 

The Safe and Environmentally Sound Recycling of Ships and Decent Work (SENSREC-DW) Project held its first workshop in Karachi last month, following IMO Secretary-General Arsenio Dominguez’s first official visit to the South Asian country. 

“The new project is a collaboration between the IMO and the International Labour Organization (ILO), aimed at enhancing safety and environmental responsibility in the ship recycling industry, while upholding global labor rights standards,” the IMO said in a statement. 

The primary focus of the workshop, which gathered approximately 150 people representing stakeholders from various sectors, was how to ensure compliance with international standards outlined in the Hong Kong Convention, the Basel Convention and ILO treaties, and strategies for improving working conditions, especially in developing countries, given the high risks associated with shipbreaking activities. 

Participants outlined specific objectives and activities for the project, emphasizing the need for capacity building and training programs tailored to local contexts. They took part in a technical visit to ship recycling yards in Gadani, Baluchistan, to learn from the field and observe some of the key challenges faced by the industry. 

“The outcomes of their discussions will guide the implementation of initiatives designed to promote decent work and sustainable practices in ship recycling facilities across Pakistan,” the IMO said. 

The Hong Kong Convention, adopted in 2009, is designed to ensure that ships are recycled without posing risks to human health or the environment. It mandates that ships carry an Inventory of Hazardous Materials and that recycling facilities develop a specific Ship Recycling Plan for each vessel. The Convention is set to enter into force on June 26, 2025 and aims to enhance safety standards across the global ship recycling industry. 

SENSREC-DW builds on the ongoing SENSEREC project in Bangladesh, first launched in 2015. 

Topics: International Maritime Organization Imo SENSREC-DW ILO Ship recycling Arab News Pakistan

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