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.
Pakistan’s finance chief says government aims to privatize national flag carrier in November
https://arab.news/4zwur
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
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.
Saudi Arabia aims for central role in global supply chains, says Alkhorayef
RIYADH: Saudi Arabia is a “great believer” in becoming a central player in the global supply chain across multiple sectors, according to a top official.
In an interview with Arab News during the Multilateral Industrial Policy Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef emphasized the Kingdom’s vast resources, competitive energy landscape, strategic location, financial and political stability, and advanced infrastructure.
“We are a great believer that Saudi Arabia is a great place to solve for so many challenges, especially with the supply chain. The combination of the resources that we have allows us to be a great place and hub for different capabilities,” Alkhorayef stated.
He added: “International players are engaged with us to understand how we can complement their offering and where we see their contribution in our industrial strategy journey.”
The minister also highlighted that the Kingdom has identified 800 key projects across sectors such as automotive, pharmaceuticals, and renewable energy, as part of its broader industrial strategy aimed at attracting significant foreign investment. This vision underscores Saudi Arabia’s commitment to becoming a global industrial hub, leveraging its energy resources, strategic location, and financial strength to foster both national and international partnerships.
“There’s so much opportunities we have, but in a nutshell, we have identified 800 projects in Saudi that are essential for our industrial strategy. Those range from automotive to pharmaceuticals to renewable to downstream chemicals and so on,” Alkhorayef noted.
He further explained that 12 specific subsectors have been defined, with the projects and investment technologies being developed indicating that Saudi Arabia will play an active role in the supply chain of each division.
Alkhorayef also elaborated on the Kingdom’s efforts to implement various policies and programs designed to support small and medium-sized enterprises and entrepreneurs as part of the country’s industrial transformation and green energy initiatives.
“We have a program called 1000 Mile. It takes an entrepreneur from an idea to an actual project. We also have the industrial hackathon, which incentivizes entrepreneurs to collaborate with large corporations to develop proofs of concept and solve problems,” the minister stated.
He added: “We also have a program to support small and medium enterprises and entrepreneurs entering the sector through the Industrial Support Program, which offers loans and grants to newcomers, especially those targeting specific areas of interest.”
Similarly, Omar Al-Suwaidi, undersecretary at the UAE’s Ministry of Industry and Advanced Technology, highlighted a comprehensive initiative that has assessed over 500 firms.
“We’ve had a comprehensive program, the program, in the last couple of years, assessed over 500 companies. These 500 companies, what they get out of it is a roadmap on how to do their transformation,” Al-Suwaidi told Arab News.
He continued: “They get incentives with a number of other partner banks for a reduced financing for their projects. These plans have resulted in these companies allocating almost 600 million dirhams in investment plans, which are going to be coupled now with the financing banks.”
Al-Suwaidi further elaborated on the growing significance of international partnerships, particularly in balancing national security and enhancing global supply chain resilience amidst geopolitical challenges.
“We have the initiative that we’ve started more than two years ago. It’s called the Industrial Alliance for Sustainable Economic Development, which we worked on with UAE, Egypt, Jordan, Bahrain and Morocco,” he said.
He concluded: “In the last two years, we’ve had 15 joint projects, joint agreements that are worth more than $3 billion.”
Saudi firms advance to Entrepreneurship World Cup finals in Riyadh
- The finalists represent a range of innovative ventures, highlighting the Kingdom’s entrepreneurial spirit
- The Saudi companies advanced through national and regional qualifying rounds and now stand among 100 firms competing in the EWC finals
RIYADH: Six Saudi companies have secured spots in the finals of the Entrepreneurship World Cup, a competition organized by the General Authority for Small and Medium Enterprises, or Monsha’at.
The finalists represent a range of innovative ventures, highlighting the Kingdom’s entrepreneurial spirit. Among them are Ammar Real Estate, a platform that offers technology-driven solutions for lease management, and AmplifAI, which focuses on diabetic foot care using artificial intelligence, the Saudi Press Agency reported.
Another finalist, Ballurh, is a business intelligence platform that integrates with point-of-sale systems to generate actionable insights from various data sources.
Other finalists include Fbni, a leader in eco-friendly construction materials; MisMar, which provides an app for car maintenance and repair services, and Moddakir, an educational platform that helps users develop customized learning plans for the Qur’an.
The Saudi companies advanced through national and regional qualifying rounds and now stand among 100 firms competing in the EWC finals. Their innovative solutions span diverse sectors, positioning them to enhance local and global competitiveness.
The EWC is hosted by Monsha’at in partnership with the Prince Mohammed bin Salman Foundation, or Misk, and the Global Entrepreneurship Network.
The finals will take place during the Biban 24 Forum, held from Nov. 5— 9 at the Riyadh Exhibition and Convention Center, under the theme “A Global Destination for Opportunities.”
Closing Bell: Saudi main index slips to close at 11,901
- Parallel market Nomu lost 25.27 points, or 0.10%, to close at 26,379.91
- MSCI Tadawul Index lost 5.85 points, or 0.39%, to close at 1,495.35
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Wednesday, losing 55.22 points, or 0.46 percent, to close at 11,901.77.
The total trading turnover of the benchmark index was SR4.68 billion ($1.24 billion), as 68 of the stocks advanced and 159 retreated.
Similarly, the Kingdom’s parallel market Nomu lost 25.27 points, or 0.10 percent, to close at 26,379.91. This comes as 33 of the listed stocks advanced while 34 retreated.
The MSCI Tadawul Index lost 5.85 points, or 0.39 percent, to close at 1,495.35.
The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 3.45 percent to SR0.30.
Other top performers were Umm Al-Qura Cement Co. as well as Saudi Pharmaceutical Industries and Medical Appliances Corp.
The worst performer was East Pipes Integrated Co. for Industry., whose share price dropped by 4.49 percent to SR157.40.
Other fallers were Bupa Arabia for Cooperative Insurance Co. and Arabian Contracting Services Co.
On the announcements front, Bank Albilad has revealed its interim financial results for the period ending on Sept. 30.
According to a Tadawul statement, the firm recorded a net profit of SR2.016 billion in the first nine months of the year, reflecting a 14.4 percent surge compared to the same period in 2023.
The increase is mainly due to a rise in total operating income by 6 percent, which can be attributed to the growth in net income from investing and financing assets, other operating revenue, dividend income, and net fee and commission earnings.
Bank Albilad’s shares ended the session at SR36, up 0.28 percent.
Banque Saudi Fransi has announced its interim financial results for the period ending on Sept. 30. According to a Tadawul statement, the firm recorded a net profit of SR3.427 billion in the first nine months of the year, reflecting an 0.942 percent surge compared to the same period in 2023.
This increase is mainly attributed to a decrease in total operating expenses by 2.8 percent while total operating income decreased by 0.7 percent.
This decline in total operating expenses was primarily due to lower impairment charges for expected credit losses on loans and advances, which was partially offset by salaries and employee-related expenses, other operating and general and administrative costs, impairment charges for other financial assets as well as depreciation and amortization.
The decrease in total operating earnings was driven by lower net special commission income, trading revenue, and exchange profits, which was partially offset by higher net fee and commission income and gains on non-trading investments.
Banque Saudi Fransi’s shares ended the session at SR31.30, down 1.12 percent.
AI’s growing influence on global Industries takes center stage at UNIDO MIPF 2024
- Russian Deputy Minister of Economic Development Alexey Gruzdev highlighted the remarkable speed of AI’s growth in the global market
- Saudi official presented the Kingdom’s ambitious ‘Future Factories’ program to digitally transform 4,000 factories
RIYADH: The transformative impact of artificial intelligence on global industries was a key focus at the UN Industrial Development Organization’s event in Riyadh.
During this year’s Multilateral Industrial Policy Forum, discussions centered on how AI is reshaping various sectors and the global economy, with panelists sharing insights and strategies from their countries on navigating this rapidly changing landscape.
Russian Deputy Minister of Economic Development Alexey Gruzdev highlighted the remarkable speed of AI’s growth in the global market, noting that it ranks among the fastest across different sectors.
He elaborated on Russia’s strategic vision, presenting a comprehensive plan for AI development that extends to 2030.
“We made up the strategy for development of artificial intelligence in Russia until 2030,” Gruzdev stated, emphasizing the focus on scientific research, software development, data hardware improvement, and enhancing public awareness of AI technologies.
The plan also seeks to increase the availability of qualified personnel to meet the demands of the burgeoning Russian AI market.
In addition to the national strategy, Gruzdev mentioned the introduction of an AI code of ethics, which establishes general behavioral principles and standards to promote ethical AI use in the country.
Saudi Arabia’s Assistant Minister of Planning and Development Abdullah Al-Ahmari presented the Kingdom’s ambitious “Future Factories” program, aimed at digitally transforming 4,000 factories. He discussed how Saudi Arabia is leveraging AI to revolutionize industrial processes and strengthen its position as a leader in innovation.
Al-Ahmari explained that the initiative focuses on digitizing industrial processes through the integration of digital tools, positioning Saudi Arabia at the forefront of industrial innovation.
Concerns about AI’s impact on employment were also addressed. Siemens General Counsel Abdullah Al-Ajlan raised alarms about potential job displacement resulting from increased automation in industries. “One of the main concerns I’ve noticed in discussions around AI and digital transformation is employment and job displacement," Al-Ajlan noted.
He underscored the necessity of recognizing that certain sectors will continue to require human skills, even as automation and AI technologies evolve.
Al-Ajlan stressed that the success of AI integration relies not only on technological advancements but also on the establishment of legal frameworks: “It is important to touch upon the importance of clear laws and regulations policies that maintain the values of digitalization.”
As the panel concluded, it became clear that while AI presents vast opportunities, it also necessitates careful consideration of ethical standards, workforce impacts, and regulatory frameworks to ensure a balanced and progressive approach to its adoption.
