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Pakistan’s top economic body approves $160 million grant for defense projects

Pakistan’s top economic body approves $160 million grant for defense projects
Pakistan's military vehicles carry ballistic missiles while participating in an annual parade to mark the country's National Day in Islamabad, Pakistan, on March 23, 2021. (AFP/File)
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Updated 04 October 2024
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Pakistan’s top economic body approves $160 million grant for defense projects

Pakistan’s top economic body approves $160 million grant for defense projects
  • Pakistan’s defense budget consistently attracts media attention due to the military’s substantial role in both the political and economic arenas of the country
  • The allocation of significant funds to defense sparks debates over balance between security needs and critical public services, such as education and health care
Updated 04 October 2024
Aamir Saeed
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ISLAMABAD: The Economic Coordination Committee (ECC), Pakistan’s top economic body, has approved a supplementary grant of around $160 million for defense projects in the current fiscal year, the Pakistani finance ministry said on Thursday.

The statement came after Finance Minister Muhammad Aurangzeb presided over a meeting of the ECC, at which decisions were made regarding special allowances for the Anti-Narcotics Force (ANF), Anti-Rabies Vaccine, and other matters.

Pakistan’s defense budget consistently attracts media attention due to the military’s substantial role in both the political and economic arenas of the country. The allocation of significant funds to defense sparks debates over the balance between security needs and other critical public services, such as education and health care.

“The ECC also considered and approved a proposal submitted by the Defense Division for a TSG amounting to Rs45 billion ($160 million) for various already approved projects of defense services during CFY 2024-25,” the finance ministry said on Thursday.

The development came weeks after the government approved Rs60 billion ($215 million) supplementary grants for Operation Azm-e-Istehkam to root out militancy from the country, apart from a 17.5 percent increase in the overall defense budget in June to Rs2.12 trillion ($6.15 billion) in view of the country’s security needs.

The ECC considered and approved a proposal for increase in the rate of special allowance (equal to 20 daily allowances) for employees of the ANF paramilitary force to bring it at par with other federal law enforcement agencies (LEAs), according to the finance ministry.

“The impact of revision to the tune of Rs. 264.744 million ($950,000) in DA rates for the ANF employees would be met from within the current year’s sanctioned budget,” it said.

Media coverage and public discussions about the defense budget also reflect concerns about transparency, with governments only mentioning the overall figure without sharing further details.

Last month, Dr. Kaiser Bengali, a prominent Pakistani economist who resigned from the government’s high-powered austerity committee in August, noted among several observations that the answer to addressing Pakistan’s large budget deficit lied in reducing the government’s expenditures, including non-combat defense spending.

Topics: Pakistan Pakistan economy

Pakistan issues dengue prevention advisory as outbreak expected in 10 cities this month

Pakistan issues dengue prevention advisory as outbreak expected in 10 cities this month
Updated 1 min 44 sec ago
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Pakistan issues dengue prevention advisory as outbreak expected in 10 cities this month

Pakistan issues dengue prevention advisory as outbreak expected in 10 cities this month
  • Karachi, Lahore, Peshawar, Rawalpindi, Islamabad, Hyderabad, Faisalabad, Sialkot, Larkana, Multan at risk
  • Dengue fever is endemic to Pakistan, which experiences year-round transmission with seasonal peaks
Updated 1 min 44 sec ago
Aamir Saeed

ISLAMABAD: Pakistan’s government-run National Institute of Health (NIH) on Friday issued a dengue prevention advisory after the Pakistan Meteorological Department (PMD) warned at least 10 Pakistani cities could face an outbreak in October. 

Over 21,000 dengue cases were reported in Pakistan last year while 8,909 cases have been reported so far this year, the NIH said. 

Dengue is an illness that spreads through vectors, carried by the bite of an infected mosquito. There is currently no cure or vaccine for dengue fever, which in its most severe form can lead to fatalities. People affected by dengue go through intense flu-like symptoms including high fever, intense headache, muscle and joint pain, and nausea and vomiting, typically persisting for approximately a week.

“It is imperative to work on prevention while staying vigilant for detection of cases and ensuring preparedness to launch response activities for curtailing the transmission of dengue fever,” the NIH said, urging the strengthening of disease surveillance and awareness campaigns by authorities and personal protection by members of the public. It also called on hospitals to improve preparedness. 

“Based on the analysis, the environment has become conducive from mid of September 2024 for dengue onset and it is predicted that it may outbreak in October 2024, particularly in ten major cities of Pakistan i.e., Karachi, Lahore, Peshawar, Rawalpindi, Islamabad, Hyderabad, Faisalabad, Sialkot, Larkana and Multan as well as in post monsoon rainfall affected areas of Pakistan,” the PMD said in an advisory last week. 

“It is advised to all stakeholders to take preemptive measures for the dengue outbreak in the districts. National Health agencies and Dengue control centers are advised to keep themselves updated on the PMD website.” 

The PMD said dengue outbreaks occurred in the post-monsoon season, which usually falls between Sept. 20 and Dec. 5 if conditions are favorable. It added that the active period for dengue attacks was two hours after sunrise and two hours before sunset, while breeding stopped once the temperature fell below 16°C. 

Dengue fever is endemic to Pakistan, which experiences year-round transmission with seasonal peaks. 

Topics: dengue Pakistan dengue fever

Indian external affairs minister to visit Pakistan for SCO summit amid strained relations

Indian external affairs minister to visit Pakistan for SCO summit amid strained relations
Updated 4 min 2 sec ago
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Indian external affairs minister to visit Pakistan for SCO summit amid strained relations

Indian external affairs minister to visit Pakistan for SCO summit amid strained relations
  • Subrahmanyam Jaishankar visit comes at a time when Pakistan has criticized Indian elections in Kashmir
  • The last high-level visit between the two countries took place in 2023 when Bilawal Bhutto went to Goa
Updated 4 min 2 sec ago
Arab News Pakistan

ISLAMABAD: Indian authorities announced on Friday their External Affairs Minister Subrahmanyam Jaishankar will visit Pakistan amid frosty relations between the two countries to attend the Shanghai Cooperation Organization (SCO) summit scheduled for this month.

This will be the first visit by an Indian external affairs minister to Pakistan in nearly a decade, though it is unclear whether he will meet Pakistani officials on the sidelines of the event.

Relations between India and Pakistan hit a major low in 2019 when New Delhi revoked Article 370, which granted special autonomy to Muslim-majority state of Kashmir.
Jaishankar’s visit comes at a time when India has held elections in the disputed Himalayan region, a process criticized by Pakistan as illegitimate and an attempt to normalize its control over the territory.

“The external affairs minister will lead a delegation to Pakistan to participate in the SCO summit which will be held in Islamabad on October 15 and 16,” Indian external affairs ministry spokesman Randhir Jaiswal announced during a news conference.

The South Asian neighbors have fought three wars, including two over control of the disputed Kashmir region in the Himalayas. New Delhi accuses Islamabad of aiding and abetting Islamist militants fighting Indian rule in the region, a charge Pakistan denies.

The last high-level visit between the two countries took place in May 2023 when Bilawal Bhutto-Zardari, Pakistan’s foreign minister at the time, attended the SCO foreign ministers’ meeting in India’s coastal state of Goa.

While Bhutto-Zardari did not meet any Indian leaders, he and Jaishankar used the forum to trade blame for their frosty ties.

- With input from Reuters

Topics: India SCO Summit Subrahmanyam Jaishankar

Pakistan calls for ‘comprehensive’ global counter-terrorism reforms

Pakistan calls for ‘comprehensive’ global counter-terrorism reforms
Updated 04 October 2024
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Pakistan calls for ‘comprehensive’ global counter-terrorism reforms

Pakistan calls for ‘comprehensive’ global counter-terrorism reforms
  • Pakistan’s representative made the call in his statement at the sixth committee of the UN General Assembly in New York
  • Usman Jadoon emphasized Pakistan’s role in the fight against terrorism and its key contribution in dismantling Al-Qaeda
Updated 04 October 2024
Arab News Pakistan

ISLAMABAD: Pakistan’s acting permanent representative to the United Nations (UN) Ambassador Usman Jadoon regretted insufficient progress on evolving and diverse forms of terrorism and called for “comprehensive” global counter-terrorism reforms, Pakistani state media reported on Friday.

The Pakistani diplomat said this in his statement at the sixth committee of the UN General Assembly in New York, the state-run Radio Pakistan broadcaster reported.
Jadoon emphasized Pakistan’s role in the fight against terrorism and its key contribution in dismantling Al-Qaeda as well as the 80,000 casualties it suffered in the war on terror.

“He raised concerns about state-sponsored terrorism from across Pakistan’s borders, highlighting threats posed by groups like the TTP, Daesh, and the [Baloch separatist] Majeed Brigade,” the report read.

“He urged the international community to ensure that counter-terrorism measures are not misused to violate human rights and international humanitarian law as is occurring in occupied Palestine and Jammu and Kashmir.”

Pakistan, which has fought militants for decades, has strengthened its protocols and agreed to enhance cooperation with multiple countries in counter-terrorism domain in recent years.

In January, Pakistan and Britain agreed to further enhance cooperation in counter-terrorism at a meeting between Pakistan’s Interior Secretary Aftab Akbar Durrani and Simon Ridley, second permanent secretary of the British Home Office, in Islamabad.

In Dec. 2023, Islamabad hosted an inaugural session of the Pakistan-UK Counter-Terrorism dialogue, according to the Pakistani Foreign Office. The Pakistani side was led by Director-General (Counter-Terrorism) Abdul Hameed, while the UK delegation was led by Chris Felton, head of Counter-Terrorism and Extremism Network (CTEN) for Asia.

The dialogue covered a wide range of areas, reflecting the depth and breadth of counter-terrorism cooperation between the two countries, the Pakistani Foreign Office said.

Topics: Pakistan Usman Jadoon

Pakistan can be Malaysia’s ‘gateway’ to Central, West Asia — PM Anwar Ibrahim

Pakistan can be Malaysia’s ‘gateway’ to Central, West Asia — PM Anwar Ibrahim
Updated 04 October 2024
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Pakistan can be Malaysia’s ‘gateway’ to Central, West Asia — PM Anwar Ibrahim

Pakistan can be Malaysia’s ‘gateway’ to Central, West Asia — PM Anwar Ibrahim
  • Ibrahim concludes three-day state visit to Islamabad, Pakistan to open Malaysian Trade Office in Karachi 
  • Pakistan says will export halal meat worth $200 million, 100,000 tons of basmati rice annually to Malaysia 
Updated 04 October 2024
Arab News Pakistan

ISLAMABAD: Malaysian Prime Minister Anwar Ibrahim said on Friday Pakistan had the “potential” to be a gateway for Malaysian companies wanting to venture out into the Central and West Asian markets. 

Ibrahim left Pakistan on Friday after concluding a three-day visit accompanied by a delegation of ministers and senior officials who held wide-ranging talks with Pakistani counterparts on trade, connectivity, energy, agriculture, the halal food industry, tourism, and cultural and educational exchanges. The visit came as Islamabad is pushing for foreign investment from allies and beyond in a bid to shore up its $350 billion economy while navigating tough reforms mandated by the International Monetary Fund (IMF).

During a joint press stakeout on Thursday, Ibrahim and Pakistani PM Shehbaz Sharif Prime Minister Shehbaz Sharif announced setting up a Malaysian trade office in Karachi. It was also agreed that Pakistan would export halal meat worth $200 million and 100,000 tones of basmati rice to Malaysia per year.

“I believe Pakistan has the potential to be a gateway for Malaysian companies that want to expand the market in Central Asia and West Asia,” Ibrahim said in a farewell message posted on X. 

He said his state visit had “opened the widest possible space” for Malaysia and Pakistan to discuss and explore cooperation in various fields, including economic zones, trade and market issues, transport, halal industry, tourism, education, skilled labor and others.

Trade between Malaysia and Pakistan currently stands at $1.4 billion, including in palm oil, apparel, textiles, chemical and chemical-based products, and electrics and electronic products. Among South Asian countries, Pakistan is Malaysia’s third-largest trading partner.

“As part of the efforts to boost bilateral trade, both leaders agreed that Pakistan would export Halal meat worth $200 million per annum and 100,000 metric tones of Basmati Rice to Malaysia,” state news agency APP reported after Sharif and Ibrahim addressed a joint press stakeout on Thursday evening. 

In his remarks to reporters, Sharif said the two leaders had discussed the export of Pakistani basmati rice as well as of halal meat from Pakistan to Malaysia worth $200 million per annum.

“He said the Malaysian PM had also assured to address the discrepancies in the import of Pakistan’s rice into his country,” APP reported, saying the two leaders also discussed cooperation in defense, tourism, agriculture, green energy, skilled labor and youth empowerment.

In his remarks, Ibrahim said both sides had agreed on a number of issues and follow-up discussions would be held in an upcoming joint commission meeting in Kuala Lumpur later this month “to ensure swift implementation of the decisions.”

“He assured that a Malaysian trade office would be opened in Karachi soon to strengthen economic collaboration between the two countries,” APP said. “He said Malaysia was seeking more skilled labor in various sectors including IT, artificial intelligence, and semiconductors and Pakistan could also be a source for such skilled labor.”

“Our focus is on professionals required to satisfy new demands, massive investments, probably the largest in the ASEAN region in terms of information technology, digital and artificial intelligence,” Ibrahim told reporters.

The two prime ministers also witnessed the exchange of signed Memorandums of Understanding (MoUs) and a Letter of Cooperation. This included an MoU between the Trade Development Authority of Pakistan (TDAP) and the Malaysia External Trade Development Cooperation (MATRADE) on trade cooperation, and an MoU for cooperation in halal trade between the Pakistan-Malaysia Business Council (PMBC) in Pakistan and the Malaysia-Pakistan Business Council (MPBC) in Malaysia.

A Letter of Cooperation between the Pakistan Telecommunication Authority (PTA) and Malaysian Communications and Multimedia Commission (MCMC) was also signed. Pakistan’s aviation ministry and Malaysian airline AirAsia also signed an agreement for four weekly flights.

Topics: Pakistan Malaysia ties Pakistan Malaysian PM Malaysian Prime Minister Anwar Ibrahim

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Pakistani rice traders fear decline in exports amid competition with India

Pakistani rice traders fear decline in exports amid competition with India
Updated 04 October 2024
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Pakistani rice traders fear decline in exports amid competition with India

Pakistani rice traders fear decline in exports amid competition with India
  • Pakistan exported rice worth $3.9 billion last year that traders fear could drop by $1 billion due to India’s lifting of ban on exports
  • In a tit-for-tat move, Pakistani commerce ministry has withdrawn minimum export price to keep traders competitive in global market
Updated 04 October 2024
Aamir Saeed

ISLAMABAD: Pakistani rice traders said on Thursday that exports of the commodity could face a setback this year as neighboring India, one of the major competitors in the global market, had lifted restrictions on rice exports.

Pakistan exported rice worth $3.9 billion this year as compared to $2.15 billion last year, benefitting from India’s more-than-a-year-long ban on rice exports to fulfil its domestic needs. Last week, the Indian government lifted the ban and removed minimum export price of the commodity following a bumper crop yield this year.

In a tit-for-tat move, Pakistan has also withdrawn the minimum export price for all rice varieties to compete with Indian exporters in the global market. Pakistan’s minimum export price for the rice ranged from $450 per metric ton to $900 per metric ton for super basmati and white sella rice, according to a government notification available with Arab News.

The South Asian arch-rivals are the only countries that produce basmati rice which is famous for its unique flavour and aroma around the globe. India has been the largest exporter of rice worldwide, followed by Pakistan, Thailand and Vietnam.

“Now the basmati rice with a label of either from India or Pakistan will be available in the global market this year, so Pakistan’s exports are expected to decline by at least $1 billion from the previous year,” said Malik Faisal Jahangir, chairman of the Rice Exporters Association of Pakistan (REAP).

He said Pakistan was exporting basmati rice to Europe and the Middle Eastern countries on an average $1,250 per metric ton as the Indian commodity was not available in the market due to the ban.

“India is direct competitor of Pakistan in rice exports, therefore our exports could decline in the international market after India lifted restrictions on the commodity,” he told Arab News. “Pakistan has withdrawn the minimum export price in reaction to India’s decision and we hope this will help create a level playing field to boost our exports.”

Pakistan’s commerce ministry said the minimum export price was introduced last year in response to rising global prices and a ban imposed by India on rice exports.

“The minimum export price has now become an obstacle for Pakistani rice exporters to remain competitive in global markets after India lifted its export ban and following a decline in international rice prices,” the ministry said in a statement.

Pakistani authorities have set a target of $5 billion rice exports for this fiscal year, while the exporters feared the government’s “regressive export policies and additional taxes” would bring down rice exports to $3 billion.

Irfan Noor, a rice exporter, said the government has increased tax from 1 percent to 29 percent on sales and profits of the exporters through a hybrid tax regime that would “definitely impact the exports negatively.”

He said Pakistan’s $3.9 billion rice exports were “an exception” due to India’s export ban on the commodity.

“Our rice exports will decrease this year due to India’s entry in the market that is also offering incentives to its traders on exports,” Noor said.

He urged the Pakistani government to review its tax policies and support rice farmers in growing new seed varieties resistant to adverse impacts of climate change to boost the per acre yield.

“We can compete with India in the global market only if our policy-makers come up with a holistic approach both for farmers and the exporters,” he added.

Topics: Rice Export Pakistan India Basmati Rice

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