Pakistani companies to participate in road shows in China starting next week

The general view showing buildings of the central business district in Beijing on July 17, 2023. (AFP/File)
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Updated 24 October 2024
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Pakistani companies to participate in road shows in China starting next week

  • Road shows to be held on Oct. 29 and Nov. 5 in Qingdao and Guangzhou cities, respectively
  • Seventeen Pakistani fisheries and 10 leather companies to participate in the road shows 

ISLAMABAD: Around 27 Pakistani leather and fisheries companies will participate in “major” road shows in different cities of China on Oct. 29 and Nov.5, the privatization ministry said this week as Islamabad eyes enhancing business-to-business activities with key economic ally Beijing. 

Pakistan has been eyeing foreign investment and business collaboration with various regional states, including China, to ward off a prolonged economic crisis. China’s prime minister visited Pakistan with a high-level delegation this month, during which the two countries signed various agreements to boost trade, business and investment cooperation. 

The first of the road shows will be held on Oct. 29 in China’s Qingdao city while the second has been scheduled for Nov. 5 in Guangzhou. The privatization ministry said 30 representatives from 17 Pakistani fisheries companies and 16 from ten leather companies will be participating in the road shows. 

“Business-to-business activities between China and Pakistan are ongoing and in this regard, major roadshows for Leather and Fisheries are being organized in different cities of China,” the ministry said. 

The statement came after Privatization Minister Abdul Aleem Khan chaired a meeting on Wednesday to review progress on Pakistan-China business-to-business activities.

Khan said seven major sectors. including leather, textiles, medical and surgical equipment, fruits, vegetables, plastics, fisheries and animal foods could prove to be a “breakthrough” for the country’s economy.

He said organizations in both countries were engaged in cooperation to boost business ties with one another. 

“A total of 168 companies from China and 78 companies from Pakistan are working under cooperation and Pakistan should take maximum share in the transfer of industries from China,” the statement said. 

“Executives of leading Pakistani organizations participated in the high-level meeting and assured full participation in both the Road Shows in China,” the statement said. 

Chinese investment and financial support for Pakistan since 2013 have been a boon for the South Asian country’s struggling economy, including the rolling over of loans so that Islamabad can meet external financing needs at a time when foreign reserves are low. 

Beijing has over $65 billion in investments in road, infrastructure and development projects under the China-Pakistan Economic Corridor, which is a part of the Belt and Road scheme.


Pakistan’s leading co-working platform raises $2 million, plans to enter Saudi market

Updated 3 min 47 sec ago
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Pakistan’s leading co-working platform raises $2 million, plans to enter Saudi market

  • Founded in 2019, COLABS has become a key player in Pakistan’s tech and venture capital ecosystem
  • It supports startups, freelancers and creatives, with its partners collectively raising over $1 billion in funding

ISLAMABAD: A major Pakistani flexible workspace and community platform, which aims to empower startups and tech ventures, has secured an additional $2 million in a pre-Series A funding round, said a statement released on Thursday, as it plans to expand in Saudi market.

Founded in 2019, COLABS wanted to create a business model to help with ease of doing business in Pakistan.

In five years, the company has emerged as a key player in Pakistan’s tech and venture capital ecosystem, with a presence in more than 10 locations and 5,000 members, as it continues to support startups, freelancers, and creatives.

“The company has raised additional $2m in pre series A, bringing the total to over $5m in venture capital funding from top investors,” the company said in an official handout.

“With a new funding round bringing our total raised to over $5m, COLABS is set to expand into the KSA [Kingdom of Saudi Arabia] market, replicating its success by promoting a culture of innovation, networking, and community building in Saudi Arabia,” it added.

In recent years, Pakistani startups have gained international prominence by raising significant amounts of capital and entering international markets, especially in the Gulf region.

COLABS supports technology entrepreneurs through initiatives like the Freelancer Fellowship and Pitch to Win.

“Our members have collectively raised over $1Billion in funding and expanded their footprint through COLABS,” the company added.


Over 60 US lawmakers call for release of former Pakistan PM Imran Khan in letter to Biden

Updated 43 min 24 sec ago
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Over 60 US lawmakers call for release of former Pakistan PM Imran Khan in letter to Biden

  • The Democratic members of Congress urge the US president to make human rights central to Pakistan policy
  • They ask the US government to ensure Khan’s safety in prison, send embassy officials to meet him in jail

ISLAMABAD: Over 60 Democratic lawmakers from the US House of Representatives on Wednesday urged President Joe Biden in a letter to secure the release of all political prisoners in Pakistan, including former Prime Minister Imran Khan, who has been in jail since his arrest in August last year.

Khan has faced a slew of charges since the downfall of his administration in a parliamentary no-confidence vote in April 2022, with authorities trying him on charges ranging from treason to corruption and contracting an illegal marriage.

The ex-premier and his Pakistan Tehreek-e-Insaf (PTI) party have maintained that all charges against him are fabricated to keep him out of national politics.

US Representatives Greg Casar, Jim McGovern and Summer Lee, along with 59 other Members of Congress, urged President Biden to take stock of the situation in Pakistan, calling for human rights to be the central pillar of American policy toward the country.

“We write today to urge you to use the United States’ substantial leverage with Pakistan’s government to secure the release of political prisoners including former Prime Minister Khan and curtail widespread human rights abuses,” the US lawmakers wrote in the letter.

They also criticized the last general elections in Pakistan held earlier this year in February, saying they had witnessed “a historic level of irregularities” and set the country on a path toward “authoritarianism.”

“The government has intensified its crackdown on social media and the internet as part of a broader effort to suppress political activism, which it deems to be ‘anti-state propaganda’ and ‘digital terrorism,’” said the letter.

“These repressive measures are not only an attack on fundamental human rights, but they also damage Pakistan's growing IT industry and further weaken the economy, with one industry group estimating that it could cost the sector $300 million,” it added.

US Representative Casar, who spearheaded the initiative to write the letter, said it marked the first such collective call from multiple members of the US Congress for the release of Khan, who had had testy relations with Washington as a long standing critic of US foreign policy.

The American lawmakers also asked the Biden administration to secure guarantees from Pakistan for Khan’s safety and and urge US embassy officials to visit him in prison.


Pakistan’s finance chief says government aims to privatize national flag carrier in November

Updated 24 October 2024
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Pakistan’s finance chief says government aims to privatize national flag carrier in November

  • Muhammad Aurangzeb attributed months of delay in PIA privatization to bidders’ due diligence
  • He denies media reports saying the government is not serious about broadening the tax base

WASHINGTON: Pakistan is hoping to finalize both the delayed privatization of its flag carrier and the outsourcing of Islamabad’s international airport in November, the country’s finance minister said Wednesday.
Muhammad Aurangzeb, who took office earlier this year, spoke to AFP at the World Bank’s headquarters in Washington, where he is attending the annual meetings of the International Monetary Fund and the World Bank.
During a previous interview with AFP in April, Aurangzeb had said he hoped the privatization of the government-owned Pakistan International Airlines (PIA) could be completed by June 2024.
Speaking Wednesday, the finance minister said the five-month delay was down to two factors: ensuring macroeconomic stability, and doing the proper due diligence of the interested parties.
“The reality is, when any foreign investor comes in, or even the local investor, who are going to put in a substantial amount of money, they want to ensure that the foundation is there,” he said, referring to macroeconomic factors.
Aurangzeb noted that potential bidders for both PIA and Islamabad airport also required scrutiny, another factor in the delay.
“Therefore it’s ultimately the cabinet which approved the extension in the timelines so people can do their due diligence before they make these submissions,” he said.
Aurangzeb said Pakistan had been behind on existing profit and dividend repayments when the current government took office, and had taken steps to remedy that after making progress on macroeconomic stability.
The country came to the brink of default last year as the economy shriveled amid political chaos following catastrophic 2022 monsoon floods and decades of mismanagement, as well as a global economic downturn.
Inflation peaked at 38 percent, but has since dropped to less than seven percent, after the central bank maintained sky-high interest rates, amid other government tightening measures, including import bans to preserve foreign exchange.
Last month, the IMF approved a $7 billion loan, Pakistan’s 24th such payout from the multilateral lender since 1958.
Aurangzeb touted progress on the country’s current account deficit and the stabilization of the Pakistani rupee, which has depreciated against the US dollar by about 65 percent since 2020.
“In May and June on the back of this macroeconomic stability and building up on our reserves, we paid more than $2 billion to our existing international investors,” he said.
Pakistan’s gross public debt currently stands at 69 percent of GDP, according to the IMF, or roughly $258 billion.
Alongside privatizing state-owned enterprises (SOEs), Pakistan’s IMF deal also rests on increasing its tax base, and reforming of the country’s power sector.
Aurangzeb told AFP there was a common theme between all three major issues.
“Tax, power, SOE: There’s leakage, there’s theft, there’s corruption, right?” he said. “And we have to deal with all of that.”
But he dismissed media reports that the government was not serious about broadening its tax base, saying that the tax take had risen by 29 percent in the last fiscal year, which overlapped with a prior caretaker government, and was targeted to rise by a further 40 percent in the current fiscal year.
In a nation of more than 240 million people where most jobs are in the informal sector, only 5.2 million filed income tax returns in 2022.
“People who are not paying up, they need to start paying for the simple reason that we have reached a saturation point of the people who are paying,” he said.
“The salaried class, the manufacturing industry, reached a saturation point. And this cannot go forward,” he added.
The government was also committed to doing a better job of taxing certain sectors of the economy, he said, naming real estate, retail, retail distributors, and agriculture.


Pakistani expats say Kingdom’s Global Harmony Initiative ‘unique opportunity’ to engage with other communities

Updated 24 October 2024
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Pakistani expats say Kingdom’s Global Harmony Initiative ‘unique opportunity’ to engage with other communities

  • Saudi Arabia last week launched initiative to celebrate diverse range of nationalities and cultures among Kingdom’s residents
  • With over 2.5 million residents, Pakistanis are the second-largest expatriate community residing in Saudi Arabia

ISLAMABAD: Pakistan’s top diplomat in Saudi Arabia and expatriates this week welcomed and expressed support for the Saudi “Global Harmony Initiative,” stressing it would play a key role in fostering understanding and unity among diverse communities residing in the Kingdom.

Saudi Arabia unveiled its Global Harmony Initiative last week, which is aimed at celebrating the diverse nationalities and cultures of residents through exploring their lives, contributions and cultural integration. 

The initiative, a collaboration between the Quality of Life government program, Saudi Vision 2030, the Kingdom’s General Entertainment Authority and the Ministry of Media, will feature events during Riyadh Season showcasing the cuisines, cultures, and heritage of countries like Pakistan, India, Malaysia, Indonesia, and more.

Pakistanis are the second-largest expatriate community in the Kingdom, with reportedly over 2.5 million living and working in Saudi Arabia. The Kingdom remains the top source of remittances for the South Asian country. 

“The Global Harmony Initiative will play an important role in fostering understanding and unity among the diverse expatriate communities in Saudi Arabia,” Ahmad Farooq, Pakistan’s ambassador to Saudi Arabia, told Arab News on Wednesday. 

Farooq noted the initiative offers a valuable platform, especially for the Pakistani community, to share its rich cultural heritage and highlight its significant contributions to the Kingdom.

“The Global Harmony Initiative is a significant step toward acknowledging the vital role expatriates play in Saudi society,” he added.

He said Pakistanis, as the second-largest expatriate group in the Kingdom, have a “unique opportunity” to highlight their professional achievements, family values and cultural integration. 

Farooq added that the Global Harmony Initiative not only promotes inclusivity but also strengthens the bonds between different communities to enhance the overall fabric of Saudi society.

He encouraged Pakistani expatriates to actively participate in the initiative and showcase their stories and contributions for a brighter, more harmonious future.

‘EXCELLENT STEP FORWARD’

Pakistani expatriates from all walks of life welcomed the initiative, saying it will provide them opportunities to engage with diverse cultures while also promoting their own.

“It is indeed a great initiative, as we will not only experience the diverse cultures of various expatriate communities but also have the chance to introduce the richness of Pakistani culture to others,” Muhammad Naveed, a Pakistani engineer in Riyadh, told Arab News.

He said the initiative would serve as a bridge to foster stronger ties between expatriates and the Saudi community.

“It is an excellent step forward and we are excited to become part of this during this Riyadh Season,” he said. 

Zainab Zahoor, a Pakistani expatriate who lives in Riyadh with her family, described the initiative as a wonderful opportunity for the community to connect and integrate with others. 

“As a Pakistani expatriate living in Riyadh, I believe the Global Harmony Initiative allows us to showcase the richness of Pakistani culture while building stronger connections with other expatriate groups and Saudi society,” she told Arab News.

Zahoor said the initiative creates a sense of unity and appreciation among diverse communities.

“It is now up to the Pakistani mission and community to fully utilize this opportunity to showcase our culture and highlight our contributions to Saudi society,” she said.

Muhammad Ahmed, a Pakistani who works for a multinational company in Jeddah, described the initiative as a “vital step” toward fostering mutual understanding.

“Saudi Arabia is home to millions of expatriates from various countries, with significant populations from Pakistan, India, and Bangladesh,” Ahmed noted. 

“These communities can foster deeper connections as they share a common regional background and cultural ties from their home countries.”

He said the platform offers Pakistanis a chance to engage with other communities in the Kingdom so that they can build lasting relationships and promote a spirit of unity.

Pakistan and Saudi Arabia share strong trade, defense, and cultural ties. Both nations have been actively working to enhance bilateral trade and investment agreements. 

Recently, the Kingdom reaffirmed its commitment to expedite a $5 billion investment package and private companies from both countries signed deals exceeding $2 billion during a visit by a Saudi business delegation to Islamabad earlier this month.


Pakistani venture Sarmayacar says Green Climate Fund pledges $15 million

Updated 24 October 2024
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Pakistani venture Sarmayacar says Green Climate Fund pledges $15 million

  • GCF pledges $15 million to help startups tackle impacts of climate change in Pakistan 
  • Pakistan’s macroeconomic crisis means cash to address climate change is in short supply

KARACHI: The Green Climate Fund (GCF) has committed $15 million to Pakistani venture capital firm Sarmayacar, the venture fund said on Wednesday, so it can help startups tackle the impact of climate change in the country that has been at the forefront of extreme weather.

Flooding in Pakistan, which scientists said was aggravated by global warming, affected at least 33 million people and killed more than 1,700 from the beginning of the monsoon season in mid-June 2022 until mid-November that year.

At the same time, the country’s challenging macroeconomic and political situation means cash to address the problem is in short supply.

In particular, venture capital funding fell to $16 million during the first nine months of 2024, a 57 percent year-on-year drop from the $37 million recorded in the same period the previous year, according to data compiled by Data Darbar.

Set up more than a decade ago, the GCF is part of UN efforts to help the world’s poorer countries adapt to climate change.

The deployment of the $15 million hinges on Sarmayacar raising an extra $10 million, CEO and Founder Rabeel Warraich said, adding he expected the fund will be able to begin funding action by the first quarter of next year.

He said the GCF funding would have “an anchoring role” in the new fund that Sarmayacar has set up, which he said could have a maximum of $40 million in funding.

Its capital is earmarked for startups in areas including energy, electric mobility, water treatment, recycling, sustainable agriculture, and carbon accounting, Warraich said, and is investigating startups to invest in.

The GCF’s website said it had allocated $282.7 million in total to Pakistan across 10 projects.
The GCF was not immediately available for comment on the latest pledge.

The International Monetary Fund, which last month agreed a bailout for Pakistan, has also agreed to hold talks with the country on financing under the Fund’s Resilience and Sustainability Trust (RST) to generate financing for projects related to climate change.