Pakistani, foreign business stakeholders seek continuity of policies, ‘charter of economy’ after polls

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Updated 22 January 2024
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Pakistani, foreign business stakeholders seek continuity of policies, ‘charter of economy’ after polls

Pakistani, foreign business stakeholders seek continuity of policies, ‘charter of economy’ after polls
  • Representatives say they expect new government to reduce energy tariffs, ensure availability of foreign exchange 
  • Government will have to make ‘hard decisions’ to deal with economic challenges facing Pakistan, they say

KARACHI: As Pakistan gears up for national elections next month, Pakistani and foreign business stakeholders wish for the establishment of a transformative government after the polls, anticipating the continuity of present policies, a “charter of economy,” and the willingness to make tough decisions to tackle economic challenges. 

Scheduled for February 8, the general elections are coming after more than a year of economic and political turmoil in the South Asian country that narrowly escaped a default in June last year, thanks to a last-gasp $3 billion International Monetary Fund (IMF) bailout. 

Despite these challenges, there has been a palpable optimism within the business community, which hopes that the upcoming political transition would usher in a new era of much-needed stability and prosperity in the country. 

“After the election we are expecting that there would be the economic stability and continuity of policies that is what actually the business community needs,” Saquib Fayyaz, senior vice president of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), told Arab News recently.

The FPCCI official said businessmen in Pakistan wanted to see the issues of high energy prices and interest rates as well as the shortage of foreign exchange resolved. 

“We will emphasize that the new government should resolve the problem of energy, electricity and also the problem of foreign exchange, which is a very big problem and also we want reduced rate of interest,” he said. 

Iftikhar Ahmed Sheikh, president of the Karachi Chambers of Commerce and Industry (KCCI), said they required long-term policies and a “charter of economy” for the resolution of these issues. 

“We need long term policies,” he told Arab News. “We are always in favor of a charter of economy and we call for this and when a charter of economy is made, it encompasses long-term policies for exports, for development, as against the prevailing system of short-term policies running for decades.” 

The concept of a charter of economy has been discussed extensively in the Pakistani discourse, with calls for a comprehensive agreement between stakeholders to create a stable economic environment. 

Traders and industrialists advocate for a charter that could move Pakistan away from the decades-old tradition of short-term strategies, which have often proven to be flawed. 

The KCCI chief said they wanted the new government to work on long-term policies “in consultation with businessmen,” promising an increase in Pakistan’s exports on the basis of such policies. 

Asif Inam, chairman of All Pakistan Textile Mills Association (APTMA), appreciated the caretaker government of Prime Minister Anwaar-ul-Haq Kakar for its measures to boost the economy, including curbs on Afghan transit trade, crackdown on currency smugglers and efforts to bring in foreign direct investment. 

“The caretaker setup is doing well and they (the next government) should adopt the same policies,” Inam said. “Current policies should be maintained and [the] stability we have achieved should not be deterred.” 

Pakistan’s textile sector contributes around 60 percent to the overall exports of the country. In Dec. 2023, the Pakistani commerce ministry set an ambitious export target of $100 billion, including $50 billion for the textile sector, in the next five years. 

However, the APTMA chief said expensive energy was an impediment in the way of textile industry to achieve this $50 billion target. 

“One of the main reasons why the export is not flourishing is the expensive energy, which is two or three times [more] than the regional competitors,” he said. 

Foreign investors expect the new government to create a conducive environment and boost investor confidence through some “hard decisions.” 

“I think from the developments that have taken place, we do see that the election will take place on time. Sooner or later, they will have to work and bring some sort of a maturity and stability,” said Abdul Aleem, CEO of the Overseas Investors Chambers of Commerce and Industry (OICCI) that represent multinational companies operating in Pakistan. 

“So, our expectation is that whoever sits in the government will understand that the environment has to be created with political and policy stability.” 

Aleem said this stability would give confidence to foreign investors to invest more in Pakistan. 

“Economic challenges right now facing the country are quite serious and therefore, they will have to take actions which may not be very popular,” he said. “The situation is such that there will be some hard decisions to be made.” 

Pakistan has already taken some painful decisions, including energy tariff and interest rate hikes that have fueled decades-high inflation. 

One of the major economic problems Pakistan has continued to face throughout its history is the scarcity of foreign exchange, primarily the US dollar, but recent measures by the caretaker administration have raised hopes for its continued availability. 

Malik Bostan, chairman of the Exchange Companies Association of Pakistan (ECAP), said the government’s actions would continue to bring stability and the greenback would eventually settle around Rs250. 

“At a time when dollar went up to Rs330 and people were talking about Rs400 and Rs500, we had announced that it may go [back] to Rs250 and it gradually depreciated and has to go to 250,” he said. 

Bostan even called for drawing a charter of economy before the elections, binding all political parties to pledge continuity of policies. 

“I think the government has to make a charter of economy even before the elections,” he said. “All political parties should be called and they should give pledge to implement the charter and they should not get involved in leg-pulling.” 

FPCCI’s Fayyaz said they had also prepared a charter of economy and would hold consultations on it with political parties and the new government. 

The stakeholders stressed the importance of reducing government expenditures, broadening the tax base, and making tough decisions for financial stability and economic self-reliance to meet the present economic challenges. 


Minister calls for strict measures to curb carbon emissions to deal with Pakistan smog crisis

Minister calls for strict measures to curb carbon emissions to deal with Pakistan smog crisis
Updated 19 January 2025
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Minister calls for strict measures to curb carbon emissions to deal with Pakistan smog crisis

Minister calls for strict measures to curb carbon emissions to deal with Pakistan smog crisis
  • Pakistan’s eastern Punjab province experiences smog each year, with the provincial capital of Lahore ranking second among world’s most polluted cities on Sunday
  • Officials say smog is a byproduct of large numbers of vehicles, construction and industrial work as well as burning of crop residue at the start of winter season

ISLAMABAD: Pakistan’s Law Minister Azam Nazeer Tarar on Sunday called for the enforcement of stringent policy measures to mitigate heat-trapping carbon emissions from vehicles in order to tackle the issue of smog, Pakistani state media reported.
Pakistan’s eastern Punjab province experiences dense smog each year, with the provincial capital of Lahore ranking second among the world’s most polluted cities on Sunday, according to Swiss air monitor IQAir.
Late last year, the province closed down schools and offices, banned outdoor activities and shortened timings for restaurants, shops and markets in a bid to contain the crisis.
The dangerous smog is a byproduct of large numbers of vehicles, construction and industrial work as well as burning of crop residue at the start of the winter wheat-planting season.
“Smog has emerged as a serious environmental and public health concern,” Tarar said as reported by Radio Pakistan, stressing the need to ensure conformity with Euro-5 or higher-grade fuels to improve the air quality and mitigate heat-trapping carbon emissions.
The comments came at a meeting of a committee to implement the National Climate Change Policy, aimed at steering Pakistan toward climate resilience and low carbon development.
Officials informed the participants that efforts had already been ramped up to transition the South Asian country to renewable energy sources, with significant investments in solar, wind, and hydropower projects.
“The government’s plan to achieve a 30 percent share of renewables in the energy mix by 2030 is well on track and all-out efforts are being made to promote Electric Vehicles to reduce the environmental impact of transportation,” they were quoted as saying.
Pakistan is among countries deemed most vulnerable to extreme weather caused by climate change, despite contributing less than 1 percent to global carbon emissions, according to officials. 
In 2022, devastating floods, blamed on human-driven climate change, killed more than 1,700 Pakistanis, affected another 33 million and caused the country over $30 billion in economic losses.


Top Bangladeshi commander meets Pakistan Navy officials, discusses regional maritime security

Top Bangladeshi commander meets Pakistan Navy officials, discusses regional maritime security
Updated 19 January 2025
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Top Bangladeshi commander meets Pakistan Navy officials, discusses regional maritime security

Top Bangladeshi commander meets Pakistan Navy officials, discusses regional maritime security
  • The development comes amid a thaw in relations between both nations since PM Sheikh Hasina’s ouster in August
  • The two sides discussed joint military exercises, reciprocal visits and training exchange programs, Pakistan Navy says

ISLAMABAD: Lt. Gen. SM Kamr-ul-Hassan, principal staff officer (PSO) of the Bangladesh armed forces division, on Sunday met senior Pakistan Navy officials and discussed with them regional maritime security cooperation, Pakistan Navy said.
Lt. Gen. Hassan toured Pakistan Navy ships and units during his visit to the southern Pakistani port city of Karachi, according to the Directorate General Public Relations (DGPR) of Pakistan Navy.
He met Pakistan Fleet Commander Rear Admiral Abdul Munib, Coast Commander Rear Admiral Faisal Amin and Managing Director of Karachi Shipyard & Engineering Works (KS&EW) Rear Admiral Salman Ilyas.
“During these engagements, discussions focused on professional matters of mutual interests, including regional maritime security and bilateral defense collaboration,” the DGPR said in a statement.
“Various potential areas of cooperation were highlighted, such as joint military exercises, reciprocal visits, and training exchange programs between the two countries.”
Pakistan and Bangladesh were once one nation, but they split in 1971 as a result of a bloody civil war, which saw the part previously referred to as East Pakistan seceding to form the independent nation of Bangladesh.
In the years since, Bangladeshi leaders, particularly former prime minister Sheikh Hasina, chose to maintain close ties with India. Relations between Pakistan and Bangladesh have warmed up since Hasina’s ouster as a result of a student-led uprising in August, witnessing a marked improvement.
“The visit of Lt. Gen. SM Kamrul Hassan is expected to further strengthen defense ties between the two brotherly nations, enhancing cooperation and solidifying the bonds between the armed forces of Pakistan and Bangladesh,” Pakistan Navy said.
Lt. Gen. Hassan, who is currently on a visit to Pakistan, this week met Chief of Army Staff (COAS) General Asim Munir in Rawalpindi, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. During the meeting, both military commanders stressed the need for an enduring partnership between the two countries to remain “resilient against external influences.”
Earlier in the day, the Trade Development Authority of Pakistan (TDAP) said it would send two trade delegations to Bangladesh on Jan. 19-20 to increase bilateral relations and economic collaboration as both countries move to repair strained ties.
“The first delegation of dates comprising 13 exporters will leave for a week-long visit on Jan. 19 while the second delegation of citrus will leave for a business-to-business (B2B) meeting on Jan. 20,” the TDAP said.
The delegations will explore more trade opportunities, promote business partnerships and Pakistan’s export potential in the Bangladeshi market, it added.
The development comes days after the signing of a landmark agreement between Pakistan and Bangladeshi businesspersons to establish a joint business council between the two countries.
Pakistan’s Deputy Prime Minister Ishaq Dar is also scheduled to visit Dhaka at the start of February to further consolidate the relations between the two countries.


Pakistan to launch yuan-denominated Panda bonds by June, finance minister says

Pakistan to launch yuan-denominated Panda bonds by June, finance minister says
Updated 19 January 2025
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Pakistan to launch yuan-denominated Panda bonds by June, finance minister says

Pakistan to launch yuan-denominated Panda bonds by June, finance minister says
  • The South Asian country intends to raise approximately $200 million from Chinese investors through Panda bonds
  • Muhammad Aurangzeb says the move is part of a strategy to achieve sustainability in Pakistan’s balance of payments

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan plans to launch yuan-denominated Panda bonds in June to enhance its presence in Chinese capital markets, Pakistani state media reported on Sunday.
The development follows an upgrade in Pakistan’s sovereign rating by all three major credit agencies. The country aims to get into the “single-B” category that would allow it to return to global bond markets to raise funds.
Aurangzeb said the South Asian country intends to raise approximately $200 million from Chinese investors through the issuance of the Panda bonds, the Radio Pakistan broadcaster reported.
“This step is part of a broader strategy to transition Pakistan’s economy toward export-driven growth, with a focus on achieving sustainability in the country’s balance of payments,” he was quoted as telling Hong Kong’s TVB news channel.
The South Asian country is navigating a challenging economic recovery path and has been buttressed by a $7 billion facility from the International Monetary Fund (IMF) in September. The government is optimistic it will meet the terms of the program.
Pakistan is being advised on the issuance of Panda bonds by the China International Capital Corporation, a partially state-owned financial services company, according to the finance minister. However, the latest figure is lower than the $300 million targeted by Pakistan last year.
Aurangzeb extended an invitation to Hong Kong to send delegations to explore trade and financial opportunities in Pakistan, according to the Radio Pakistan report.
“Hong Kong could serve as a strategic hub for joint ventures between Chinese and Pakistani companies,” he said.
To revive its $350 billion economy, Pakistan has been making efforts to position itself as a regional trade and transit hub by leveraging its strategic geopolitical position.
The South Asian country has witnessed a flurry of visits, investment talks and economic activity involving officials from Saudi Arabia, United Arab Emirates, China and Central Asian nations in recent months.


Pakistani security forces kill five militants in volatile southwest — military

Pakistani security forces kill five militants in volatile southwest — military
Updated 19 January 2025
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Pakistani security forces kill five militants in volatile southwest — military

Pakistani security forces kill five militants in volatile southwest — military
  • The militants were killed while attempting to ‘infiltrate’ Pakistan’s border in Balochistan’s Zhob district
  • Islamabad blames a surge in militancy on militants operating out of Afghanistan, Kabul denies allegation

ISLAMABAD: Pakistani security forces have gunned down five militants in the country’s southwestern Balochistan province, the Pakistani military said on Sunday.
Balochistan, Pakistan’s largest province in terms of landmass that borders Iran and Afghanistan, has been the site of a low-level insurgency by Baloch separatists and religiously motivated militant groups.
The militants were killed while attempting to infiltrate Pakistan’s border in Balochistan’s Zhob district, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the ISPR said in a statement.
“Interim Afghan Government is expected to fulfill its obligations and deny the use of Afghan soil by Khwarij [Pakistani Taliban militants] for perpetuating acts of terrorism against Pakistan.”
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have frequently targeted Pakistani forces in the northwestern Khyber Pakhtunkhwa (KP) province. The group has also maintained some presence in Balochistan. 
This week, Pakistani security forces also killed 27 militants in an intelligence-based operation in Balochistan’s Kacchi district, according to the ISPR. The deceased militants had been involved in militant activities against security forces as well as innocent civilians and were “highly wanted” by law enforcement agencies.
Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.


Masood defends Pakistan’s spin-spiced formula after West Indies win

Masood defends Pakistan’s spin-spiced formula after West Indies win
Updated 19 January 2025
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Masood defends Pakistan’s spin-spiced formula after West Indies win

Masood defends Pakistan’s spin-spiced formula after West Indies win
  • Pakistan completed the win before tea on the third day as spinners Sajid Khan grabbed 5-50 and Abrar Ahmed finished with 4-27
  • The Test lasted fewer than eight sessions on a dry, grassless Multan Stadium pitch, with spinners taking 34 of 40 wickets to fall

MULTAN: Skipper Shan Masood defended Pakistan’s formula of using spin-friendly pitches to win home Test matches after a 127-run victory over the West Indies in Multan on Sunday.
Pakistan completed the win before tea on the third day as spinners Sajid Khan grabbed 5-50 and Abrar Ahmed finished with 4-27 to dismiss the West Indies for 123 after setting a 251-run target.
The Test lasted fewer than eight sessions on a dry and grassless Multan Stadium pitch, with spinners taking 34 of the 40 wickets to fall.
Sajid finished with nine wickets, fellow spinner Noman Ali six and the West Indian left-armer Jomel Warrican took a maiden 10-wicket haul.
Pakistan bowled just one over of pace in the match.
“If we want to be a top side in the World Test Championship then we have to sacrifice some things, like we did with the fast bowling in this Test,” Masood said.
Pakistan made drastic changes after going winless in 11 home Tests since 2021, using industrial fans and patio heaters to dry the Multan pitch against England last year.
Sajid and Noman took 39 of the 40 wickets to give Pakistan a come-from-behind 2-1 series win against England, repeating the same ploy against the West Indies.
Masood’s captain counterpart Kraigg Brathwaite had no issue with it.
They will play the second Test from January 25 at the same venue.
“They’re at home so they got their decision how they want the pitch to behave,” said Brathwaite.
“It was a difficult pitch to bat on for sure.
“We expect the same type of pitch in the second Test so we got to come better with bravery and belief.”
Left-hander Alick Athanaze hit the only half-century for the tourists in the match with 55, an innings Brathwaite wants his batters to learn from.
“He swept it on both sides so we just have to be brave,” said Brathwaite.
“We have got one more Test and we have to believe in ourselves.”