Pakistan eyes $50 billion Chinese exports in 10 years, greenlights joint venture for industry relocation

Pakistan Planning Minister Ahsan Iqbal is chairing a meeting in Islamabad on June 22, 2024, to develop a roadmap ahead of the visit of Chinese experts at the end of June. (@PlanComPakistan/X)
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Updated 26 June 2024
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Pakistan eyes $50 billion Chinese exports in 10 years, greenlights joint venture for industry relocation

  • Chinese experts scheduled to visit Pakistan this month “to foster innovation, technology transfer, capacity building”
  • Earlier this month, Prime Minister Shehbaz Sharif was on a five-day visit to China in which dozens of MoUs were signed 

ISLAMABAD: The Pakistan planning ministry said this week it planned to increase exports to China to $50 billion in the next ten years, as the Prime Minister on Wednesday greenlit a joint venture project to relocate Chinese industries to Pakistan.

Earlier this month, Prime Minister Shehbaz Sharif went on a five-day visit to China that included meetings with top political and business leaders with the aim of upgrading the China-Pakistan Economic Corridor (CPEC), a flagship of the Belt and Road Initiative (BRI), through which Beijing has pledged over $60 billion to Pakistan. Dozens of MoUs were also signed during the visit. 

“The Planning Minister highlighted the goal of exporting fifty billion dollars to the Chinese market. The aim is to increase Pakistan’s exports from 30 billion dollars to 150 billion dollars in the next 10 years,” the ministry said in a statement, emphasizing the importance of learning from China’s experience and know-how.

“A delegation of Chinese experts from various fields is scheduled to visit Pakistan at the end of this month, aiming to foster innovation, technology transfer, and capacity building,” the statement added. 

“The focus will be on capacity building of Pakistani experts through training and knowledge sharing, learning from China’s experience in innovation and technological advancements, adapting innovative solutions to Pakistan’s specific needs, and skill development in key sectors.”

While chairing a meeting to prepare for the Chinese delegation’s visit, Planning Minister Ahsan Iqbal directed line ministries to be “selective and strategic” and focus on areas where China had experience that could be shared with Pakistani professionals. 

“He noted that China has 2.7 trillion dollars in imports, and Pakistan must focus on areas through which it could enhance exports and secure a share in Chinese imports,” Iqbal said, emphasizing the need for Pakistan to learn from China’s strategic advancements in knowledge and technology. 

“The visit aims to transfer Chinese expertise to promote innovation and technology across various sectors in Pakistan, with a focus on mutual cooperation and knowledge sharing.”

Separately on Wednesday, Sharif chaired a meeting of the Board of Investment (BoI) to discuss promoting both local and foreign investment in Pakistan.

“There was significant potential for relocating China’s textile, leather, footwear, and other industries to Pakistan,” state-run APP said in a report, quoting the PM, who okayed a joint venture project to relocate Chinese industries to Pakistan.


Pakistan PM stresses promoting trilateral economic cooperation with Azerbaijan, Turkiye

Updated 03 July 2024
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Pakistan PM stresses promoting trilateral economic cooperation with Azerbaijan, Turkiye

  • PM Sharif holds trilateral summit with presidents of Turkiye, Azerbaijan at sidelines of SCO moot
  • Calls for greater cooperation in energy, tourism, culture, education and technology sectors 

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday stressed the need to promote trilateral economic cooperation between Pakistan, Azerbaijan and Turkiye, during a meeting of the leaders of the three countries on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Astana. 

Sharif is in Kazakhstan’s capital to attend the SCO summit where leaders and diplomats from China, India, Turkiye, Iran, Azerbaijan, Kazakhstan, Kyrgyzstan and other countries are present to review economic and security cooperation. 

His visit takes place as Pakistan seeks to promote itself as a trade and transit hub that connects the landlocked Central Asian states to the rest of the world via the Arabian Sea. Troubled by a macroeconomic crisis, Islamabad has increasingly sought to attract investment and trade with regional allies in recent months. 

The Pakistani prime minister attended the inaugural session of the Pakistan-Turkiye-Azerbaijan Trilateral Summit with Turkish President Recep Tayyip Erdogan and Azerbaijan President Ilham Heydar Aliyev in Astana. 

“Prime Minister Muhammad Shehbaz Sharif on Wednesday proposed to establish tripartite institutional mechanisms, particularly in economic and investment areas to further strengthen Pakistan-Turkiye-Azerbaijan trilateral economic and commercial cooperation,” the state-run Associated Press of Pakistan (APP) said. 

Sharif said Pakistan “deeply valued” its fraternal ties with Azerbaijan and Turkiye, saying that they were deep-rooted in cultural, historical and religious bonds. 

He affirmed Pakistan’s commitment to working together with Turkiye and Azerbaijan to elevate the tripartite cooperation into a “strong multifaceted partnership” across the sectors of economy, energy, tourism, culture, education and technology, APP said. 

SHEHBAZ MEETS PUTIN

Before taking part in the trilateral summit, Sharif met Russian President Vladimir Putin to discuss enhancing bilateral trade and diplomatic relations between the two countries. 

“Your excellency, our relations stand on our own strength,” Sharif told Putin in a one-on-one meeting. 

 “Neither our relations are driven by any geopolitical contingency nor these are impacted by our relations with other countries.”

Sharif recalled that Pakistan and Russia used to engage in barter trade in the 1950s and 1960s, saying that more can be done to enhance bilateral trade between the two nations which currently stands at about $1 billion. 

“I think today is the time we can overcome financial and other banking issues by renewing our trade and expanding our trade under barter that will be very beneficial for Pakistan and overcome many problems,” he said. 


Authorities evacuate residents from dangerously tilted Karachi building

Updated 03 July 2024
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Authorities evacuate residents from dangerously tilted Karachi building

  • Residents evacuated from two-year-old building, nearby structures in Baldia Town evacuated, confirms official
  • Building collapses due to shoddy construction, lack of safety regulations are common in Pakistan’s Karachi city

KARACHI: Authorities in Pakistan’s southern port city of Karachi on Wednesday evacuated a two-year-old building after it tilted dangerously to one side, a spokesperson of the Sindh Building Control Authority (SBCA) confirmed, putting the spotlight on the lack of implementation of construction safety regulations in the city. 

A four-story building in the city’s Baldia Town neighborhood was evacuated by authorities after it started dangerously tilting to one side due to structural damage. 

The SCBA has declared 722 buildings in Karachi, Pakistan’s largest city where over 20 million people live, as dangerous and unfit for living. The SBCA is the official authority in Pakistan’s southern Sindh province responsible for approving and regulating the construction of buildings.

Numerous building collapses in the city in recent years have led to accusations that the SBCA is negligent in ensuring builders adhere to construction safety standards. 

“This four-story building tiled to a side after one of its pillars were damaged,” an SBCA spokesperson told Arab News on condition of anonymity. 

“We immediately evacuated the nearby buildings as the collapse is likely to damage them,” he said, adding that action would be taken against those involved in the faulty construction.

The spokesperson said the authority is vigilantly working to identify dangerous buildings in the city. Building collapses in Karachi have, however, led to significant casualties and injuries in recent years.

Last month a three-story building collapsed in Karachi’s Liaquatabad neighborhood of the city. However, no casualties were reported in the incident as residents had already been evacuated from the building. 

On April 22, 2024, a three-story building in the North Nazimabad area collapsed, killing one man and injuring four others. On March 31, 2024, an old building in the city’s Ranchore Line area collapsed, injuring four men and one woman. 

On October 11, 2023, a building collapsed in Shah Faisal Colony, resulting in five deaths and two injuries. A two-story building in the Machar Colony area collapsed on December 18, 2023, killing three and injuring 17.

On June 10, 2020, a five-story residential building collapsed in Lyari, killing at least 25.


Pakistani envoy visits University of Sharjah to seek collaboration with local varsities 

Updated 03 July 2024
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Pakistani envoy visits University of Sharjah to seek collaboration with local varsities 

  • Pakistan’s UAE envoy thanks University of Sharjah for giving opportunities to Pakistani students, teachers
  • Praises University of Sharjah for “rapid growth” toward quality education, reiterates need for collaboration

ISLAMABAD: Pakistan’s Ambassador to the United Arab Emirates Faisal Niaz Tirmizi visited the University of Sharjah on Wednesday where he took part in discussions with the university’s management on collaborating with local universities, the Pakistan embassy in Abu Dhabi said. 

The UAE has seen a significant increase in foreign student enrollments since the launch of the UAE National Strategy for Higher Education 2030 more than six years ago. 

UAE authorities reported in April that international enrollments since the 2022-23 academic year include a seven percent increase among Pakistani students. Educational professionals believe UAE, especially Dubai, is increasingly competing with traditional education destinations such as the United States, United Kingdom and Australia.

Tirmizi visited the University of Sharjah on Wednesday where he met its chancellor, Dr. Humaid Majoul Al Nuaimi, the Pakistani embassy said. 

“The meeting aimed at exploring avenues for cooperation and collaboration between Pakistani universities and the University of Sharjah,” it said. 

“Both sides reiterated the need for further collaboration among the faculty and students of the University of Sharjah with centers of excellence and higher learning in Pakistan.”

The Pakistani envoy lauded the University of Sharjah’s “rapid growth” toward quality education, where around 18,000 students from various nationalities are currently enrolled.

“He deeply appreciated the university’s management for giving opportunities to many Pakistani students and faculty members,” the embassy said. 

The meeting was also attended by senior officials from Pakistan’s diplomatic mission in UAE and the university management, the statement concluded.


Ex-senator among 5 killed in blast while campaigning for by-election in northwest Pakistan

Updated 03 July 2024
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Ex-senator among 5 killed in blast while campaigning for by-election in northwest Pakistan

  • Ex-senator Hidayat Ullah Khan was on his way to attend nephew's by-election campaign, say police
  • Pakistani Taliban deny involvement in blast, accuse Pakistan Army of killing the former senator

Peshawar: A former Pakistani senator was among five persons killed in a blast on Wednesday while they were campaigning for an upcoming by-election in the country’s northwestern Bajaur district, police and rescue officials confirmed.

Ex-senator Hidayat Ullah Khan was killed in a blast that targeted his vehicle in Bajaur district’s Damadola area while he was on his way to attend an election campaign for his nephew Najeeb Ullah, Bajaur Police Spokesperson Muhammad Israr Khan said. 

“The number of persons killed has reached 5.” Khan told Arab News. “Three were killed on the spot while the others were taken to the hospital and died during treatment.”

He said police were still ascertaining the intensity of the blast, adding that the Bomb Disposal Squad [BDS] was at the site to investigate the blast. 

Khyber Pakhtunkhwa’s Rescue 1122 Spokesperson Bilal Faizi had earlier said three persons had died in the blast. 

“Three dead bodies and one critically injured person were shifted to District Headquarters Hospital Bajaur,” he said, adding that two others were injured in the incident. 

Khan, who was an independent senator from 2018 to 2024, was the son of former National Assembly lawmaker Hajji Bismillah Khan and the younger brother of ex-KP governor Shaukat Ullah Khan.

He was campaigning for his nephew Najeeb Ullah Khan, who is contesting the by-election on the PK-22 provincial assembly seat in Bajaur as an independent candidate where polling is set to take place on July 11. 

Polling on the PK-22 constituency was postponed on Feb. 8 after independent candidate Rehan Zeb was killed by unidentified men days before the election.

Both the provincial and National Assembly seats from the constituency were won by Zeb’s brother Mubarak Zeb. He decided to vacate the PK-22 seat in favor of the National Assembly one, following which Pakistan’s election regulator then announced polling for the PK-22 constituency on July 11. 

TTP DENIES RESPONSIBILITY

Pakistan’s tribal areas bordering Afghanistan to the west have seen a surge in militant attacks since Nov. 2022 when a fragile truce between the Pakistani Taliban or the Tehreek-e-Taliban Pakistan (TTP) broke down. 

Pakistan blames the TTP for the surge in violence, accusing it of targeting Pakistani security forces, politicians and civilians from Afghanistan in a bid to enforce its strict version of Islamic law in the country. 

The TTP, however, did not take responsibility for the blast. In a statement released to the media, the banned outfit accused the Pakistan Army of killing the former senator to malign it. 

“We would like to reiterate once again that we consider only the security forces and their personnel as our targets,” the TTP said. 

Separately, PM Shehbaz Sharif condoled over the loss of lives in the blast. He directed authorities to apprehend those involved in the blast and bring them to book. 

“Terrorist elements are enemies of the country’s peace and democracy,” Sharif said. “We will not rest until we eliminate the menace of terrorism from the country.” 

Pakistan’s government announced last month it would launch a new anti-terrorism operation titled “Azm-e-Istehkam” or Resolve for Stability to root out militants in the country. 


Pakistan petroleum union announces strike against new tax from July 5, government rejects ‘blackmailing’

Updated 03 July 2024
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Pakistan petroleum union announces strike against new tax from July 5, government rejects ‘blackmailing’

  • Petroleum dealers association says government’s move to impose 0.5 percent advance tax will “devastate” their business
  • Pakistani official says government has taken steps to ensure “smooth” supply of petroleum products across the country 

ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) have announced it would close petrol pumps across the country on July 5 to protest the government’s decision to impose an advance tax on turnover, saying the move would “devastate” their businesses already reeling from high taxes and inflation. 

Petroleum dealers in Pakistan are demanding the government withdraw an advance income tax of 0.5 percent imposed in the recently passed federal budget 2024-25.

Pakistan’s tax-heavy $67.76 billion budget for the new fiscal year came into effect on Monday amid an annual inflation projection of up to 13.5 percent for June. The ambitious budget with a challenging tax revenue target of Rs13 trillion ($46.66 billion) has drawn the ire of the government’s allies and opposition alike. The revenue collection target for the new fiscal year is almost 40 percent higher than the last fiscal year. 

The PPDA says its members are earning minimal profit due to staggering inflation and high taxes. Talks between the government and the association this week failed to break the deadlock between the two sides. 

“We are going on a nationwide strike starting July 5 and plan to close petrol pumps across the country,” PPDA Chairman Abdul Sami Khan told Arab News on Wednesday. 

“Our demand is simple: the government should immediately withdraw the advance tax decision.”

Khan said the move would “devastate” the petrol pump business in the country, adding that dealers would be left with no other option but to wind up their businesses for good if the government does not reverse its decision.

“We are ready to discuss our concerns and possible solutions with the government,” Khan said. “We request the prime minister, petroleum minister and finance minister to immediately abolish this tax, otherwise we will be unable to continue running our businesses.”

Imran Ahmed, the director general of oil at Pakistan’s petroleum ministry, rejected the strike call. He said the government would not entertain “blackmailing tactics” but was willing to discuss petroleum dealers’ genuine concerns. 

“We will not support the strike or such tactics,” he told Arab News. “This new advance tax applies to all traders, not only petroleum dealers.”

Ahmed said the government is in talks with the dealers and their representatives, whom he said have also met officials of the Federal Board of Revenue (FBR), Pakistan’s tax authority. 

He said the ministry has instructed oil marketing companies to keep as many sites open as possible to ensure a smooth supply of petroleum products in the country. 

“We have also instructed PSO [Pakistan State Oil] to ensure maximum supply and storage of petroleum products by keeping their sites open,” Ahmed said.