tag:blogger.com,1999:blog-5848640164815342479.post944731961411942354..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: Pakistan Now: Darkest Before Dawn?Riaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger48125tag:blogger.com,1999:blog-5848640164815342479.post-7154061692673399642023-09-08T10:22:35.958-07:002023-09-08T10:22:35.958-07:00SIFC focuses on 5 sectors for investment - Busines...SIFC focuses on 5 sectors for investment - Business - DAWN.COM<br /><br />https://www.dawn.com/news/1774316<br /><br />KARACHI: In continuation of its efforts to improve the country’s business climate, the Special Investment Facilitation Council (SIFC) has asked Karachi’s business community to exploit huge investment potential in agriculture, livestock, information technology, mining and energy sectors.<br /><br />---------------<br /><br />Special Investment Facilitation Council<br /><br />Interaction with Business Community by Special Investment Facilitation Council (SIFC)<br /><br />As part of outreach strategy, SIFC arranged an interaction with Business Community of Karachi on 5 September 2023.<br />SIFC’s Team led by Dr Jehanzeb Khan made detailed presentations encompassing various aspects of SIFC Initiative. Pakistan's latent potential and investment opportunities in the key sectors of Agri/ Livestock, IT, Mining/ Minerals and Energy were highlighted along with ongoing efforts to improve business climate in the country.<br />Business Community was taken on board to attract investments in Pakistan and be part of valuable projects. SIFC ensured to extend its facilitative role in realising such endeavours by domestic investors.<br />At the end, an interactive session provided Business Community with the opportunity to share their investment-related feedback and suggestions. Business Community also displayed keen interest in asking questions related to various investment opportunities and investment environment in general.<br /><br /><br />https://twitter.com/PTVNewsOfficial/status/1699042739479019660?s=20Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-73357959916284400172023-09-04T21:43:28.869-07:002023-09-04T21:43:28.869-07:00Pakistan Expects $50 Billion Investment from Saudi...Pakistan Expects $50 Billion Investment from Saudi Arabia, UAE Within 5 Years<br /><br /><br />https://www.voanews.com/a/7254662.html#:~:text=Pakistan's%20caretaker%20prime%20minister%20said,strapped%20country%20within%20five%20years.<br /><br /><br />Pakistan's caretaker prime minister said Monday that Saudi Arabia and the United Arab Emirates will invest $25 billion each in his cash-strapped country within five years.<br /><br />Anwaar-ul-Haq Kakar told a group of Islamabad-based foreign journalists late Monday that different sectors, such as mines and minerals, agriculture, defense production and information technology, would receive the investment. He did not elaborate.<br /><br />Economic revival<br /><br />The prime minister said that the Saudi and UAE investments are part of a new "strategy for economic revival" to increase foreign direct investment in Pakistan under the supervision of the recently set up Special Investment Facilitation Council, or SIFC.<br /><br />Established in June, the council comprises Pakistan's civilian and military leadership.<br /><br />Kakar spoke a day after the Pakistani military chief Asim Munir, while addressing business community leaders in the southern city of Karachi, emphasized the SIFC's potential to attract investments of up to $100 billion from Saudi Arabia, the UAE, Qatar, Kuwait and other Middle Eastern countries.<br /><br />"I can confirm it," he said when asked for his comments on the reported remarks by his military chief that Pakistan could receive an unprecedented $25 billion each from the Saudi Kingdom and the UAE under the SIFC.<br /><br />Saudi and UAE officials did not immediately comment on Kakar's assertions.<br /><br />Kakar said that Pakistan's untapped mineral deposits are estimated to be worth around $6 trillion. He noted work on the massive Reko Diq gold and copper mines in southwestern Baluchistan province was expected to start in December.<br /><br />Last month, a Saudi delegation visited Pakistan to study mining sector investment opportunities and showed its readiness to tap into the Reko Diq deposits.<br /><br />Pakistan is scrambling to deal with a critical balance of payments crisis. The country of about 241 million people needs billions of dollars in foreign exchange to repay international debts and bridge its trade deficit in the current financial year.<br /><br />Islamabad is implementing long-delayed economic reforms in line with IMF requirements, leading to a historic increase in energy prices when inflation is already hovering at around 29%. The tough reforms have triggered almost daily nationwide protests, bloated electricity bills and soaring fuel prices.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-15171086905284860842023-09-04T16:51:00.200-07:002023-09-04T16:51:00.200-07:00Pakistan's interim PM says Saudi Arabia to inv...Pakistan's interim PM says Saudi Arabia to invest $25 bln over next five years<br /><br /><br />https://www.reuters.com/world/asia-pacific/pakistans-interim-pm-says-saudi-arabia-invest-25-bln-over-next-five-years-2023-09-04/<br /><br />By Gibran Naiyyar Peshimam<br /><br /><br />ISLAMABAD, Sept 4 (Reuters) - Saudi Arabia will invest up to $25 billion in Pakistan over the next two to five years in various sectors, Pakistan's caretaker Prime Minister Anwaar-ul-Haq Kakar said on Monday, adding his government would also revive a stalled privatisation process.<br /><br />The South Asian nation is embarking on a tricky path to economic recovery under a caretaker government after a $3 billion loan programme, approved by the International Monetary Fund (IMF) in July, averted a sovereign debt default.<br /><br />Kakar, speaking to journalists at his official residence, said Saudi Arabia's investment would come in the mining, agriculture and information technology sectors, and was a part of a push to increase foreign direct investment in Pakistan.<br /><br />There was no immediate response to a Reuters request to the Saudi Arabian government for comment on Kakar's remarks.<br /><br />If confirmed, a series of investments worth $25 billion would be the biggest ever by the kingdom in Pakistan.<br /><br />A longtime ally of Riyadh, Pakistan is dealing with a balance of payments crisis and requires billions of dollars in foreign exchange to finance its trade deficit and repay its international debts in the current financial year.<br /><br />Kakar did not specify projects Riyadh was looking at for investment, but last month Barrick Gold Corp (ABX.TO) said it was open to bringing in Saudi Arabia's wealth fund as one of its partners in Pakistan's Reko Diq gold and copper mine.<br /><br />Pakistan's untapped mineral deposits are conservatively valued at about $6 trillion, said Kakar, whose government is meant to be an interim set up to oversee national elections scheduled for November but are expected to be delayed by months.<br /><br />Barrick considers the Reko Diq mine one of the world's largest underdeveloped copper-gold areas and it owns a 50% stake, with the remaining 50% owned by the governments of Pakistan and the province of Balochistan.<br /><br />Kakar also said his government would push to complete two privatisation deals, probably for state-run power sector entities, in the next six months, and would also look to privatise another government owned enterprise outside the energy sector.<br /><br />Pakistan's state owned enterprises have long been an area of concern with bleeding financials adding to financial stress. Recently Pakistan added struggling state-run Pakistan International Airlines to the privatisation list again.<br /><br />The privatisation process has largely stalled in the country with selling of state assets a politically sensitive issue that many elected governments have shied away from.<br /><br />Reporting by Gibran Peshimam; Additional reporting by Aziz El Yaakoubi in Riyadh; Editing by William MacleanRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-86270547918159038882023-08-19T10:57:38.121-07:002023-08-19T10:57:38.121-07:00SIFC to continue working for fast-track foreign in...SIFC to continue working for fast-track foreign investment: PM<br /><br />https://www.pakistantoday.com.pk/2023/08/16/sifc-to-continue-working-for-fast-track-foreign-investment-pm/<br /><br />Lauds vision of Saudi leadership, saying KSA can always count on Pakistan as trusted partner<br />Says looking forward to working with UAE on advancing cooperation in various fields<br />ISLAMABAD: Caretaker Prime Minister Anwaarul Haq Kakar on Wednesday said that the recently-instituted Special Investment Facilitation Council (SIFC) would continue to work as before to lay the foundations to fast-track foreign investments, particularly from Saudi Arabia.<br /><br />The prime minister, in a meeting with Saudi Ambassador Nawaf bin Saeed Ahmad Al-Malkiy, who called on him, highlighted energy, infrastructure, agriculture, IT and manpower as potential sectors of cooperation.<br /><br />The Saudi ambassador congratulated the prime minister on assuming office and conveyed the best wishes and greetings on behalf of the Custodian of Two Holy Mosques, as well as Crown Prince Mohammed Bin Salman, and the people of Saudi Arabia.<br /><br />The prime minister said that Pakistan and Saudi Arabia enjoyed historic and deep-rooted ties.<br /><br />He thanked the Saudi government for its consistent support for Pakistan’s economic stability and development.<br /><br />He particularly mentioned the large number of Pakistanis working in Saudi Arabia and requested the Saudi side to continue to extend all possible facilitation to them.<br /><br />Prime Minister Kakar lauded the vision of the Saudi leadership and said that Saudi Arabia could always count on Pakistan as its trusted and reliable partner.<br /><br />Ambassador Nawaf reiterated that Saudi Arabia and Pakistan were bound together in a fraternal relationship, which was characterized by mutual trust and understanding, and close cooperation on all bilateral and regional issues of common interest.<br /><br />Looking forward to advancing trade, investment ties with UAE<br /><br />Meanwhile, Caretaker Prime Minister Anwaar-ul-Haq Kakar on Wednesday said that he looked forward to working with the United Arab Emirates (UAE) on advancing bilateral cooperation in various fields, especially trade, investment and energy.<br /><br />The prime minister, in a meeting with the UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi, who called on him here, expressed gratitude for the UAE’s support for Pakistan’s economic and financial stability.<br /><br />The ambassador conveyed the greetings of the UAE leadership to the prime minister on his assumption of office.<br /><br />Prime Minister Kakar thanked the UAE government for the warm congratulatory messages and said that Pakistan and UAE enjoyed historic and deep-rooted fraternal ties.<br /><br />He also wished the UAE success in hosting the COP28 Summit later this year.<br /><br />The prime minister also emphasized the important role played by the Pakistani diaspora in the UAE and sought the UAE government’s continued support to them.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-33510574145573227772023-08-11T16:20:23.677-07:002023-08-11T16:20:23.677-07:00Pakistan’s army is back in charge of politics
htt...Pakistan’s army is back in charge of politics<br /><br />https://www.economist.com/asia/2023/08/10/pakistans-army-is-back-in-charge-of-politics<br /><br />The jailing of Imran Khan heralds a period of tighter military control<br /><br /><br />Mr Sharif’s indulgence of the army is explained by the state of the economy. He secured a $3bn imf emergency agreement last month to ward off the possibility of default. But the price is steep: higher energy tariffs, high interest rates and a market exchange rate, none of which is popular with voters. The later the election, the more time Mr Sharif and his allies will have to put distance between themselves and unpopular decisions.<br /><br />Yet Mr Sharif may be tempting fate. Nine months into the job, newly victorious in his battle with Mr Khan and his supporters, General Asim Munir, who heads the armed forces, is growing assertive. He is spearheading a new economic council and is busy touting Pakistan’s investment potential to Gulf states that have grown tired of doling out cash to Pakistan. More than their money, he may be eyeing their political support. “We are probably moving towards a new political order, a controlled democracy where civil liberties are curtailed in the name of economic development,” says Ahmed Bilal Mehboob, president of the Pakistan Institute of Legislative Development and Transparency. In perennially chaotic Pakistan, order can seem attractive to an ambitious general.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52412553867475793992023-08-11T16:19:20.104-07:002023-08-11T16:19:20.104-07:00Pakistan’s army is back in charge of politics
htt...Pakistan’s army is back in charge of politics<br /><br />https://www.economist.com/asia/2023/08/10/pakistans-army-is-back-in-charge-of-politics<br /><br />The jailing of Imran Khan heralds a period of tighter military control<br /><br /><br />Fifty miles—and five years—separate Imran Khan’s greatest political triumph and the nadir, for now, of his political career. At one end is Parliament House in Islamabad, where the assembly that elected him prime minister of Pakistan in 2018 wrapped up its term on August 9th, with power due to be handed to a caretaker administration. At the other is the district jail in Attock in Punjab province, where Mr Khan began a three-year prison term for “corrupt practices” on August 5th.<br /><br /><br />Mr Khan denies wrongdoing and has unsuccessfully appealed the conviction. He says the charges are politically motivated, which the government denies. The conviction, which comes with a five-year ban from politics, is the culmination of a campaign by Pakistan’s powerful army to remove Mr Khan and his party, Pakistan Tehreek-e-Insaf (pti), from the political fray. It also heralds a period of more active involvement in politics by the generals.<br /><br />The case has exposed a taste for cash and bling that is at odds with Mr Khan’s idea of himself as a pious anti-corruption crusader. Yet the nature of the conviction, for violating electoral laws that are rarely enforced, hints at the former prime minister’s true crime: challenging Pakistan’s army. Like many Pakistani politicians before him, Mr Khan started out as a general’s favourite. Yet the army eventually tired of his political grandstanding and his mismanagement of Pakistan’s faltering economy. In April 2022 he was removed from office in a vote of no confidence.<br /><br /><br />Unlike some of his predecessors, Mr Khan refused to go quietly, attacking the generals in a series of rallies across the country and claiming that they tried to assassinate him last November. After he was briefly arrested in early May, his supporters smashed up military installations. The army, unused to and enraged by such displays of defiance, dismantled his party and rounded up his supporters. Eventually, Mr Khan was nabbed for good.<br /><br />Mr Khan’s forced exit from politics heralds more ambitious plans. Assisted by the outgoing prime minister, Shehbaz Sharif, and a pliant parliament, the army has rearranged Pakistan’s hybrid system decisively in its favour. Among the scores of laws tweaked or introduced before parliament’s lights were switched off, several granted sweeping new powers to the armed forces and intelligence agencies, alarming civil-rights groups. The incoming caretaker government has been given the power to negotiate with the imf and sign foreign investment deals. It may also stick around for longer than the 90 days prescribed by the constitution. The day Mr Khan was arrested the government ratified a new census which could require a fresh demarcation of electoral constituencies. The outgoing law minister says this could delay elections by at least five months. The caretakers will in effect report to the army until then.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-85160581038339474032023-08-11T11:18:10.000-07:002023-08-11T11:18:10.000-07:00The Special Investment Facilitation Council’s Role...The Special Investment Facilitation Council’s Role in Pakistan’s Economic Resurgence<br /><br /><br />https://thediplomat.com/2023/08/the-special-investment-facilitation-councils-role-in-pakistans-economic-resurgence/<br /><br />The SIFC’s mandate is far-reaching, extending from agriculture and energy to telecommunications and infrastructure. Its “single window” approach to cooperation with GCC countries signals a proactive stance toward attracting FDI. Notably, the SIFC holds the authority to summon regulatory bodies and government representatives when bureaucratic bottlenecks hinder investment operations. Moreover, the council can recommend regulatory relaxations or exemptions, ensuring they align with existing legal provisions. This flexibility could expedite investment procedures, enhancing Pakistan’s appeal to potential investors.<br /><br />The inclusion of military officers in the SIFC’s apex and implementation committees sparks concerns about potential overreach and diminishing civilian oversight. While an “institutionalized” army role in economic decision-making can offer stability, it also poses challenges to democratic governance. The delicate interplay between civilian and military spheres demands meticulous management to prevent undue military influence over crucial economic policies.<br /><br />While the military’s involvement in the SIFC might alleviate immediate investor concerns, it is not a panacea for Pakistan’s economic challenges. The council’s focus on Gulf investments and its goal of achieving high FDI targets could offer short-term relief, but sustained economic stability demands comprehensive policy reforms. A closer look at India’s 1990s reforms provides valuable lessons in addressing deep-rooted economic issues and driving long-term growth.<br /><br />The Special Investment Facilitation Council’s establishment signifies Pakistan’s commitment to economic resurgence and foreign investment attraction. However, as the nation treads this uncharted territory, it must strike a delicate balance between ensuring policy predictability and safeguarding democratic governance. While the military’s involvement can potentially bolster investor confidence, the long-term stability of Pakistan’s economy hinges on holistic policy reforms that address structural challenges. The SIFC can serve as a stepping stone toward economic growth, but the ultimate key lies in Pakistan’s ability to cultivate a business-friendly environment, foster sustainable growth, and uphold democratic principles in its pursuit of prosperity.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-18253828504156315462023-08-11T11:17:01.979-07:002023-08-11T11:17:01.979-07:00The Special Investment Facilitation Council’s Role...The Special Investment Facilitation Council’s Role in Pakistan’s Economic Resurgence<br /><br /><br />https://thediplomat.com/2023/08/the-special-investment-facilitation-councils-role-in-pakistans-economic-resurgence/<br /><br />The SFIC has to strike a balance between including military decision-makers to raise investor confidence and upholding democratic governance.<br /><br />By Shabbir Ahmed<br /><br />The inception of the Special Investment Facilitation Council (SIFC) represents a pivotal juncture in Pakistan’s economic evolution. Intended to attract foreign investments and invigorate economic growth, this pioneering initiative has captured national attention. Nevertheless, as the SIFC emerges as a distinctive amalgamation of civil and military entities, it ignites discussions surrounding the nuanced equilibrium between safeguarding policy coherence, upholding the principles of democratic governance, and managing the military’s active role in shaping economic decisions.<br /><br />This convergence of interests and authority prompts an exploration of how this “hybrid” forum can effectively navigate its responsibilities, engender investor confidence, and ensure that the military’s involvement aligns harmoniously with the broader democratic fabric of the nation.<br /><br />The SIFC’s creation is rooted in a dire need for economic rejuvenation, particularly in the face of bureaucratic hurdles and regulatory complexities that deter foreign direct investment (FDI). By providing a platform to streamline cooperation with Gulf Cooperation Council (GCC) nations, the SIFC aims to unlock investment opportunities across sectors ranging from agriculture to information technology. Nonetheless, the inclusion of military officials in key roles raises questions about the balance between civilian and military authority, reflecting both opportunities and challenges.<br /><br />Prime Minister Shehbaz Sharif’s proclamation of the SIFC as a “unified approach” toward economic challenges underscores the value of collective insight. Undoubtedly, cooperative endeavors that engage both civilian and military leadership hold the promise of establishing policy steadiness and instilling confidence among foreign investors. Yet, the crux of the matter resides in harmonizing the military’s role with, rather than eclipsing, civilian authority. This equilibrium is essential to safeguarding the tenets of democracy, upholding accountability, and preventing the erosion of democratic values. The success of this collaborative venture hinges on the delicate choreography between these two distinct spheres, facilitating an environment wherein policy predictability is fortified without compromising the essence of democratic governance<br /><br />The decision to entrust the SIFC with a substantial military presence emerges from a broader context of geopolitical considerations and the desire to instill investor confidence. The involvement of Saudi Arabia, Qatar, and the United Arab Emirates in pressing for military-backed guarantees highlights a lack of confidence in Pakistan’s political stability and its ability to honor business agreements across government transitions. The army’s engagement in the SIFC could offer a sense of continuity, but it also underscores the need for comprehensive, long-term policy reforms to address underlying structural challenges.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-71081043480686742672023-08-10T19:41:08.824-07:002023-08-10T19:41:08.824-07:00#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Po...#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Poised to Invest Billions in #Pakistan.<br />#Islamabad’s powerful #military has sought to ease the path for oil-rich monarchies to acquire stakes in #mining (#copper, #gold) & #energy (#refinery) https://www.wsj.com/articles/gulf-nations-poised-to-invest-billions-in-pakistan-as-it-seeks-infusion-of-foreign-currency-9dfbb2ad via @WSJ<br /><br />Riyadh has ambitions to turn Ma’aden into a global company, but it is wary of the security risks at the Pakistani mine. In July, Saudi Arabia said it would buy a $2.5 billion stake in Brazilian mining company Vale, also through the same fund and Ma’aden.<br /><br />For Islamabad, there are strategic advantages to tying Saudi Arabia in, while Barrick has joined with Saudi Arabia elsewhere too. Barrick and Ma’aden didn’t respond to requests for comment. The Public Investment Fund declined to comment.<br /><br />The Saudis are the most interested in the mining opportunities, say officials and experts, while the U.A.E. is looking most keenly at agriculture, clean energy and logistics.<br /><br />Just ahead of the launch of the Gulf initiative, the U.A.E. swooped in early, acquiring a 50-year lease in June to operate part of the container terminal at Karachi port. The financial terms weren’t disclosed for the deal, which was awarded without an open bidding process. Many coming transactions are also not expected to involve competitive bidding, Pakistani officials say. That approach could open the divestments up to domestic controversy.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-66215216733454674572023-08-10T19:40:36.593-07:002023-08-10T19:40:36.593-07:00#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Po...#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Poised to Invest Billions in #Pakistan.<br />#Islamabad’s powerful #military has sought to ease the path for oil-rich monarchies to acquire stakes in #mining (#copper, #gold) & #energy (#refinery) https://www.wsj.com/articles/gulf-nations-poised-to-invest-billions-in-pakistan-as-it-seeks-infusion-of-foreign-currency-9dfbb2ad via @WSJ<br /><br />Egypt and Pakistan offer big populations, large tracts of arable land and huge armies, all attributes lacking in the Gulf, said Faisal Aftab, founder of Pakistan-based Zayn Venture Capital.<br /><br />“This is a last chance for Pakistan,” said Aftab. “It needs to leverage in investment.”<br /><br />Iqbal, the planning minister, said Pakistan was hoping for deals worth around $25 billion, including in solar energy and information technology. Pakistan’s defense industries are also open for investment, and the country is prepared to offer uncultivated government land on long leases for agriculture.<br /><br />The Gulf nations haven’t put figures in recent weeks on how much they might spend. In January this year, the Saudis said they were willing to invest $10 billion, after Pakistan’s army chief visited.<br /><br />Economic crises in Egypt and Pakistan, which have been buffeted by higher fuel and food prices from the Russia-Ukraine war and seen their currencies plummet, mean that assets are potentially available on the cheap. But Riyadh has still balked at prices in Egypt, meaning fewer deals than anticipated have materialized so far. Pakistan will also have to manage competition between Gulf nations for assets, already being felt, especially between Saudi Arabia and U.A.E., which have strained relations.<br /><br />Among the first contracts likely to attract interest, from both U.A.E. and Qatar, is a tender announced this week, by open bidding, to run terminal services at Islamabad airport. The two Gulf countries fiercely competed for the contract to run Kabul airport in Pakistan’s neighbor Afghanistan, a contest won last year by the U.A.E. Islamabad is also looking for investors to take on its national carrier, Pakistan International Airlines.<br /><br />Musadik Malik, Pakistan’s departing petroleum minister, said that a deal for a Saudi refinery was “very close.” Saudi Aramco, the company named by Pakistani officials as its partner for the project, declined to comment. The refinery would likely be located at Gwadar, the port developed by China on the Arabian Sea, and the centerpiece of Beijing’s investment program in ally Pakistan. Riyadh is moving closer to Beijing, at the expense of its relationship with Washington.<br /><br />Officials from both sides are aiming for a final deal on the refinery—which would be the country’s biggest—by the end of this year, with construction to begin early in 2024.<br /><br />Malik said that he anticipated a series of mining deals that would be much bigger in value than the refinery contract.<br /><br />“We have enormous untapped resources just sitting there,” he said.<br /><br />The obvious prize is copper, a metal needed in the transition to cleaner energy. One of the world’s biggest new copper mines is expected to begin production in 2028. The Reko Diq mine is a joint venture between Barrick Gold and the government of Pakistan, in a remote part of the country hit by two violent insurgencies.<br /><br />Talks are under way for the Saudis to buy into the Reko Diq mine. The Saudi sovereign-wealth fund, Public Investment Fund, would team up with Saudi mining company Ma’aden, to acquire part of the 50% stake in the mine owned by Pakistan, according to people involved. In addition, the Saudis could be given exploration rights in other parts of the copper-rich area.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-2906449625998041392023-08-10T19:39:52.924-07:002023-08-10T19:39:52.924-07:00#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Po...#Arab Gulf Nations (#SaudiArabia, #Qatar, #UAE) Poised to Invest Billions in #Pakistan.<br />#Islamabad’s powerful #military has sought to ease the path for oil-rich monarchies to acquire stakes in #mining (#copper, #gold) & #energy (#refinery) https://www.wsj.com/articles/gulf-nations-poised-to-invest-billions-in-pakistan-as-it-seeks-infusion-of-foreign-currency-9dfbb2ad via @WSJ<br /><br />The Saudis are in talks to buy into a copper mine being developed at a cost of $7 billion by Canada’s Barrick Gold in western Pakistan, according to people familiar with the project. Separately, negotiations are at an advanced stage to set up a Saudi oil refinery in Pakistan, which could cost up to $14 billion, according to Islamabad and Gulf officials.<br /><br />For the Gulf states, the deals represent a shift from when they provided loans or grants to poorer countries in the region, such as Pakistan or Egypt, to a new focus on acquiring assets for their sovereign-wealth funds.<br /><br />Pakistan, a nuclear-armed nation of 240 million, has been racked by an economic crisis and political instability. It reached an agreement with the International Monetary Fund in June on another bailout.<br /><br />Its powerful military, which has clamped down on political freedoms in recent months, is seeking to ease the path for investment by streamlining the deal-making process for Gulf investors, who had complained about red tape and political indecision in the past.<br /><br />Mining, energy infrastructure, farmland and privatizations of Pakistani government businesses could all be part of the planned selloff to Saudi Arabia, the United Arab Emirates and Qatar, which are increasingly competing for assets in struggling political allies.<br /><br />This summer, Islamabad established the Special Investment Facilitation Council, which includes the army chief, to smooth the bureaucratic path for Gulf investment.<br /><br />“Pakistan is strategically located, at the junction of the engines of growth in Asia, between south Asia, central Asia, China and the Middle East,” said Ahsan Iqbal, Pakistan’s departing planning minister, who also heads the executive committee of the Special Investment Facilitation Council. “There is a very big opportunity for investors to come here, as long as we can give them assurance that there will be continuity of policy for their investment.”<br /><br />The Saudi deputy mining and foreign ministers visited Islamabad this month for talks about the investment initiative.<br /><br />Pakistan Prime Minister Shehbaz Sharif said Wednesday that Parliament would dissolve, ahead of elections that are likely to be delayed into next year. The installment of a nonpolitical caretaker government in Islamabad in the next few days, to oversee the period up to the next election, is expected to kick-start the deals. New powers have been given to the caretaker administration, which will likely be under even greater influence of the military, to enable it to make major economic decisions.<br /><br />The army is Pakistan’s dominant institution, a permanent power in a country where no prime minister has completed a term in office. The Gulf has long dealt directly with Pakistan’s army, the sixth largest in the world, which has provided a contingent of troops to Saudi Arabia for decades. The first overseas trip for Pakistan’s current army chief, Gen. Asim Munir, was to Saudi Arabia, where he met Crown Prince Mohammed bin Salman in January.<br /><br />A splurge in Pakistan is expected to come from government-owned entities in the Gulf, which in recent years have invested in Egypt, a country also in the midst of an asset sale, as well as Sudan, Ethiopia and elsewhere in the Horn of Africa.<br /><br />“For the Gulf, Pakistan and Egypt are a regional security priority,” said Karen E. Young, a researcher at Columbia University’s Center on Global Energy Policy. “They absolutely cannot afford to see a failed state in Egypt or Pakistan.”<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-24078978677480532252023-08-10T19:39:11.014-07:002023-08-10T19:39:11.014-07:00Aging populations will shake up the global economy...Aging populations will shake up the global economy by 2050<br /><br /><br /><br />https://www.marketplace.org/2023/08/10/by-2050-demographic-shifts-could-mean-a-very-different-global-economy/<br /><br />Earlier this year, the United Nations put out new data showing that China, which has been the most populous country in the world for at least the last 70 years, has been overtaken by India in population size.<br /><br />And, based on population projections for the next few decades, that’s far from the only big demographic shift we’ll be seeing in the near future.<br /><br />Lauren Leatherby is a visual journalist with the New York Times who has been looking into what those demographic shifts will mean for economies around the world. She joined Marketplace’s Kai Ryssdal to talk about how the world will shift by 2050. An edited transcript of their conversation is below.<br /><br />Kai Ryssdal: On paper, or, as it were, on the internet, this is great story because the graphics are kind of amazing. And they really illustrate it. It’s a little trickier to do on the radio, but that’s fine. That’s kind of my job. I do wonder, though, how you got interested in this story.<br /><br />Lauren Leatherby: The richest most powerful countries today have long had these really large working-age populations. And economists agree that that’s been a huge, huge advantage economically and geopolitically. And meanwhile, a lot of developing nations have had quite high dependency ratios having a high number of children compared to working-age people. And so, I think we know a lot of these storylines one by one, but putting it all together, it’s just like the world is going to shift really dramatically.<br /><br /><br /><br />Ryssdal: The example that comes up pretty early in this piece is, of course, Japan, which has already started to make that shift from having a good, robust, working-years workforce to a much older population with far fewer workers.<br /><br />Leatherby: Absolutely. And then I think what we see in Japan today is only the tip of the iceberg. A lot of East Asia, China, Europe, South Korea will be much older than Japan is today, in just you know, 20 or 30 years. Some countries will have upwards of 40% of their population that are 65 or older in just two or three decades. And meanwhile, on the other end, you have a lot of these other countries that have long been, you know, hindered economically by their age structures. And suddenly a lot of them will start to enjoy the exact same age structures that Europe and East Asia, the U.S., that a lot of those countries have historically enjoyed.<br /><br />Ryssdal: Right. So what happens in a population, what happens in a country, when that shift happens when that prime-age workforce is big enough to support all the retirees? What does it let that country do? What is the opportunity?<br /><br />Leatherby: The upside can be absolutely enormous. Some of the best research is that a third of the economic growth in East Asia at the end of the last century is because of this concept of a demographic dividend. But what the experts who I spoke to were very cautious to say is that it’s not automatic.<br /><br /><br /><br />Ryssdal: It’s not automatic, but we’ve been told, and I say this every now and then, that demographics is destiny. And yet, actually, maybe it’s not.<br /><br />Leatherby: Yeah, because it can go multiple ways. I mean, if you have the policies in place with education, with good jobs, then that can be a tremendous upside. But I think the perilous thing that we worry about is extremism. I mean, what studies have shown is that [for] a lot of people that turn to extremism, it’s not because of religious ideology, it’s because it’s a better job opportunity. It’s economics. And so it’s just going to be really critical that these places that have suddenly a huge number of, like, healthy 21-year-olds, that they have jobs and education for those people.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-20397296686117566342023-08-10T19:38:26.699-07:002023-08-10T19:38:26.699-07:00Dependency ratio is the ratio of children (under 1...Dependency ratio is the ratio of children (under 15) and retirees (65 and above)) to working age (15-64 years) people in a population. Countries with high dependency ratios tend to perform poorly relative to countries with low dependency ratios in terms of economic growth.<br /><br />A recent NY Times article by Lauren Leatherby titled "How a Vast Demographic Shift Will Reshape the World" uses charts and graphics to show how the world economic landscape will change during the rest of the century.<br /><br />It shows that Pakistan will join the top 10 countries with highest share of working age population and lowest dependency ratios.<br /><br />https://www.nytimes.com/interactive/2023/07/16/world/world-demographics.html<br /><br />Pakistan will join top 10 countries in working age population in 2050<br /><br />Bangladesh is already in the top 10 working age population countries today.<br /><br />https://www.nytimes.com/interactive/2023/07/16/world/world-demographics.html<br /><br /><br />Countries are categorized as having large working-age populations if people between the ages of 15 and 64, an age group commonly used by demographers, make up at least 65 percent of the total population.<br /><br />Countries where at least a quarter of the population is under age 15 and where less than 65 percent of the population is working age are categorized as having a large young population. Countries are categorized as having a large old population if those age 65 and older make up more than a quarter of the population.<br /><br />Unless noted otherwise, graphics include all countries with a population of at least 50,000 people.<br /><br />The world’s demographics have already been transformed. Europe is shrinking. China is shrinking, with India, a much younger country, overtaking it this year as the world’s most populous nation.<br /><br />But what we’ve seen so far is just the beginning.<br /><br />The projections are reliable, and stark: By 2050, people age 65 and older will make up nearly 40 percent of the population in some parts of East Asia and Europe. That’s almost twice the share of older adults in Florida, America’s retirement capital. Extraordinary numbers of retirees will be dependent on a shrinking number of working-age people to support them.<br /><br />In all of recorded history, no country has ever been as old as these nations are expected to get.<br /><br />As a result, experts predict, things many wealthier countries take for granted — like pensions, retirement ages and strict immigration policies — will need overhauls to be sustainable. And today’s wealthier countries will almost inevitably make up a smaller share of global G.D.P., economists say.<br /><br />This is a sea change for Europe, the United States, China and other top economies, which have had some of the most working-age people in the world, adjusted for their populations. Their large work forces have helped to drive their economic growth.<br /><br />Those countries are already aging off the list. Soon, the best-balanced work forces will mostly be in South and Southeast Asia, Africa and the Middle East, according to U.N. projections. The shift could reshape economic growth and geopolitical power balances, experts say.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-45118351368035697842023-08-06T17:15:44.560-07:002023-08-06T17:15:44.560-07:00FROM CRISIS TO HOPE: WHAT CPEC PHASE-II CAN OFFER ...FROM CRISIS TO HOPE: WHAT CPEC PHASE-II CAN OFFER PAKISTAN<br /><br />https://tribune.com.pk/story/2429531/from-crisis-to-hope-what-cpec-phase-ii-can-offer-pakistan<br /><br />At a time when Pakistan faces severe economic challenges, the renewal of CPEC's second phase comes as a timely opportunity to address the country's immediate needs while paving the way for long-term development. As BRI's flagship project, CPEC has already demonstrated its transformative impact on Pakistan's infrastructure, energy, and regional connectivity. Now, with the initiation of Phase-II, the partnership between China and Pakistan is set to deepen further, solidifying their strategic relationship.<br /><br />The expansion of cooperation into rural revitalisation and agricultural development holds immense potential to uplift Pakistan's rural communities and boost the agriculture sector—a crucial backbone of the country's economy. Additionally, the focus on industrialisation and green development aligns with Pakistan's aspirations for sustainable growth and environmental conservation. Through the transfer of technology and expertise, CPEC's second phase promises to enhance Pakistan's capabilities in these critical areas.<br /><br />Vice Premier He Lifeng's visit to Pakistan and the signing of six MoUs demonstrate China's continued commitment to the success of CPEC. Despite global economic challenges and geopolitical complexities, China's unwavering support signals a firm belief in the project's potential to bring mutual benefits to both nations.<br /><br />As CPEC enters its second phase, President Xi Jinping's statement takes on heightened significance. By emphasising high standards, sustainability, and livelihood enhancement, Xi underscores the importance of inclusive growth and the well-being of the people at the heart of CPEC's objectives. This reaffirms the project's commitment to fostering shared prosperity and a closer China-Pakistan community with a shared future.<br /><br />Moreover, President Xi's statement of standing firmly with Pakistan, regardless of changing international landscapes, further solidifies the all-weather friendship between the two nations. In a time of global uncertainties, China's steadfast partnership provides much-needed reassurance for Pakistan's economic revival efforts.<br /><br />Despite criticism from Western analysts, with accusations of 'debt-trap diplomacy', CPEC has not solely relied on bilateral governmental investments; it has attracted private Chinese investments across various sectors, stimulating employment and economic opportunities in Pakistan. Moreover, China's foreign policy, emphasising non-interference in the internal affairs of other sovereign states, has led to limited meddling in Pakistan's politics or economic policies, unlike some Western multilateral financial institutions.<br /><br />To fully capitalise on the opportunities presented by CPEC's second phase, Pakistan must prioritise political stability, policy continuity, and broad-based economic reforms. The government's focus on fiscal discipline and economic growth aligns with the goals of CPEC, making it essential to overcome internal challenges and create an enabling environment for investment and development.<br /><br />As President Xi's upcoming visit to Pakistan approaches, anticipation builds for further high-level discussions and agreements that will reinforce the trajectory of CPEC's success. It is a momentous occasion that will not only deepen China-Pakistan ties but also set the stage for accelerated progress in the second phase of this transformative economic corridor.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52038712139375743772023-08-06T07:20:30.837-07:002023-08-06T07:20:30.837-07:00UAE, Saudi Arabia race for investment in Pakistan
...UAE, Saudi Arabia race for investment in Pakistan<br /><br />https://www.al-monitor.com/originals/2023/08/uae-saudi-arabia-race-investment-pakistan<br /><br /><br />Sabena Siddiqui<br /><br /><br />Providing equity for SIFC-approved projects for joint ventures, a Pakistan Sovereign Wealth Fund has also been created. In due course, seven profitable state-owned entities worth up to $8 billion are to be transferred to this fund.<br /><br />However, Shah cautioned that the Saudis and Emiratis' interest stems from "the removal of red tape, the ability to purchase potentially lucrative assets, and security of their investments, rather than being attracted to invest in Pakistan by structural economic reforms which would strengthen the Pakistani economy in the long term as well as Pakistani bargaining power as well.”<br /><br />For now, in reaction to the Gulf investments, the Pakistan stock market remains positive, reaching a two-year high.<br /><br />From the GCC, Qatar is also considering the investment offer, and Doha is having talks with Pakistan to jointly run the terminals of its three main airports, Karachi, Lahore and Islamabad. If this comes through, Doha would invest around $3 billion in cargo handling as well as providing five-star accommodation and modern facilities at the airports.<br /><br />In order to improve its food security, Doha is also considering a 10,000-acre corporate farming project in the Cholistan desert in Punjab province.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-11748764790725322712023-08-06T07:18:36.151-07:002023-08-06T07:18:36.151-07:00UAE, Saudi Arabia race for investment in Pakistan
...UAE, Saudi Arabia race for investment in Pakistan<br /><br />https://www.al-monitor.com/originals/2023/08/uae-saudi-arabia-race-investment-pakistan<br /><br /><br />Sabena Siddiqui<br /><br /><br />Both Riyadh and Abu Dhabi are prepared to develop closer business ties with less red tape, but experts caution that the Gulf nations stand to benefit most.<br /><br />The UAE and Saudi Arabia have accelerated the pace of investments in Pakistan. If Abu Dhabi decides to invest further in Pakistan, it is quite likely that Riyadh will follow suit as part of their unspoken rivalry.<br /><br />Since 2021, the kingdom has been giving incentives to multinational companies to headquarter at Riyadh. Therefore, even though Dubai is an established regional business hub, Riyadh is becoming its top competitor as a leading logistics center.<br /><br />If a UAE-Saudi business race starts off in Pakistan, Islamabad will have to balance both of its close allies.<br /><br />In search of a viable long-term solution to prop up its ailing economy, cash-strapped Islamabad has created a Special Investment Facilitation Council (SIFC), which has offered 28 high-value projects worth billions of dollars to friendly countries. The main focus is on Saudi Arabia, UAE, Qatar and Bahrain.<br /><br />First to avail the opportunity, the UAE-based AD Ports group leased four berths at Karachi Port for 50 years and around $220 million in June. Just weeks later, Abu Dhabi inked a second major seaport terminal deal. As a result, around 85% of East Wharf would be controlled by the UAE company.<br /><br />Zeeshan Shah, a financial analyst at FINRA in Washington, “The increasing rivalry between the Saudis and Emiratis should not be overlooked as both countries will probably try to one-up the other. ... Pakistan will have to be prudent in being even-handed between both countries if they happen to compete for various investment opportunities.”<br /><br />Not lagging far behind, Saudi Arabia’s Aramco has signed a memorandum of understanding with four Pakistani state-owned oil companies to build a $12 billion greenfield oil refinery at Gwadar in the province of Baluchistan. The local companies would contribute 70% equity while Aramco would initialize the project with 30% equity.<br /><br />Meanwhile, Pakistan has also offered its major airports for investment, and Saudi companies are interested in airports outsourcing.<br /><br />Zubair Faisal Abbasi, a development policy and management specialist based in Islamabad, told Al Monitor, “Pakistan requires foreign investment to expand and further diversify its economy. It envisions scaled-up IT sector contribution in the exports-based economy, and also seeks modernizing investments in agriculture sector to increase productivity. In addition, the country has huge potential in the mining sector.”<br /><br />Ranging from copper and gold mines in Chagai, the Thar Coal Rail Connectivity scheme to the Diamer-Bhasha dam and agricultural farms, the investment from these projects could go even higher than the $28 billion invested under the China-Pakistan Economic Corridor up till now, if all the projects get picked up by the Arab states.<br /><br />In the past, the absence of a swift, one-window operation for foreign investors used to be an impediment. But now, the SIFC mechanism has made things easier, especially as adequate legal cover has been provided.<br /><br />Abbasi noted, “One of the binding constraints on Pakistan’s economic growth has been bureaucratic inertia and problematic economic governance due to 'sludge' in the economic policy implementation.” The SIFC, he said, can “reduce red tape, bring in efficiency, and create synchronization in decision-making processes. Therefore, the investments may not only change sector growth, but also alter the institutional arrangements of economic governance.”Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-86998324079979931862023-08-05T21:05:38.795-07:002023-08-05T21:05:38.795-07:00Pakistan opens National Aerospace Science and Tech...Pakistan opens National Aerospace Science and Technology Park to induce technological advancement<br /><br />https://www.arabnews.pk/node/2349931/pakistan<br /><br /><br />ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Friday inaugurated the National Aerospace Science and Technology Park at the Pakistan Air Force (PAF) Base Nurkhan in Rawalpindi, his office said, with the premier saying the facility would help induce technological advancement in the South Asian country.<br /><br />The NASTP would foster research, development and innovation in the fields of aviation, space, cyber and computing to ensure social, economic, technological and scientific dividends for Pakistan and its valuable partners, according to a statement issued by Sharif’s office.<br /><br />In his address with attendees at the inauguration, the prime minister termed the National Aerospace Science and Technology Park a project of “national and strategic significance” that would reap multi-dimensional benefits for the country.<br /><br />“[The] NASTP project would induce technological advancement and would make the country more self-reliant by providing a platform for the youth and our future generations,” Sharif said.<br /><br />“The project is equipped with state-of-the-art design, innovation, research and development centers which would provide ample opportunities for foreign investment in the country.”<br /><br />He praised the efforts of the Pakistan Air Force and its skilled personnel in achieving of the “milestone” in record time.<br /><br />“[The] NASTP is a highly promising project that will leverage collective wisdom and would contribute to kick-starting Pakistan’s economy to bring it on a fast track toward progression,” the prime minister added.<br /><br />The facility, under the patronage and support of Special Investment Facilitation Council (SIFC), will enable the information technology (IT) sector as one of the key domains of the economic revival initiative, according to the statement.<br /><br />Reeling with an economic crisis, Pakistan set up the SIFC in June to attract foreign investment.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41053896973710634012023-08-04T09:04:16.828-07:002023-08-04T09:04:16.828-07:00Pakistan court pauses Imran Khan's trial over ...Pakistan court pauses Imran Khan's trial over sale of state gifts<br /><br /><br />https://www.reuters.com/world/asia-pacific/imran-khans-trial-charges-selling-state-gifts-halted-temporarily-2023-08-04/<br /><br />ISLAMABAD, Aug 4 (Reuters) - A Pakistan high court on Friday temporarily halted former Prime Minister Imran Khan's trial on charges he illegally sold state gifts, his lawyer said, in a case that could end the opposition leader's political career if convicted.<br /><br />A guilty verdict in the case could exclude Khan from national elections that are due to be held by November, legal experts have said.<br /><br />The halt comes after the high court asked a trial court to look into whether a legal complaint filed by the country's election commission, as part of an inquiry against Khan, constituted a criminal proceeding, his lawyer Naeem Panjhuta and several local TV news outlets said.<br /><br />Khan's legal team had challenged the commission's complaint, arguing that it was not a criminal case and that the judge conducting the trial was biased against Khan.<br /><br />The high court, however, turned down Khan's appeal to remove the trial court judge from hearing the case. It is not known when the case will resume, though the halt is expected to be brief.<br /><br />Khan's spokesman Farrukh Habib hailed the higher court's decision<br /><br />The trial, which is in its final stage, relates to an inquiry conducted by the election commission which found Khan guilty of unlawfully selling state gifts during his tenure as prime minister from 2018 to 2022.<br /><br />Khan has denied any wrongdoing.<br /><br />The 70-year-old cricketer-turned-politician was accused of misusing his premiership to buy and sell gifts in state possession that were received during visits abroad and worth more than 140 million Pakistani rupees ($635,000).<br /><br /><br /><br />The gifts included watches given by a royal family, according to government officials, who have alleged previously that Khan's aides sold them in Dubai.<br /><br />His tenure as prime minister was cut short when opponents won a no-confidence vote against him last year, which Khan alleges was passed with the help of the country's powerful military. The military denies any role in the matter.<br /><br />Khan's targeting of the military has raised political temperatures, and his brief arrest in May on corruption charges sparked violent protests in the country.<br /><br />Reporting by Asif Shahzad; editing by Jason Neely, Miral Fahmy and Sharon Singleton<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-36348001679174607192023-08-01T07:04:03.350-07:002023-08-01T07:04:03.350-07:00Pakistan lines up Saudi-backed refinery as it eyes...Pakistan lines up Saudi-backed refinery as it eyes more Russian oil<br /><br />https://asia.nikkei.com/Economy/Pakistan-lines-up-Saudi-backed-refinery-as-it-eyes-more-Russian-oil<br /><br />$10bn project in Gwadar draws skepticism but some experts see long game<br /><br />A $10 billion Saudi-backed oil refinery project planned in Pakistan's port city of Gwadar aims to capitalize on the troubled economy's potential, and, sources say, lay a foundation for taking in more Russian crude.<br /><br />Four Pakistani state-owned energy companies late last week signed a memorandum of understanding (MOU) with Saudi Aramco, which will inject the initial 30% equity into the project. Once built, the refinery will be able to process 300,000 barrels per day, according to details released by the government.<br /><br />That alone would surpass the combined total of 215,000 barrels per day of petroleum products refined in Pakistan in 2020-2021, according to a report by the Oil and Gas Regulatory Authority.<br /><br />The quartet of enterprises -- Pakistan State Oil (PSO), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL) -- also signed a memorandum with China National Offshore Oil Corp. for engineering, procurement and construction of the refinery. Gwadar has long been positioned as the heart of China's Belt and Road projects in the country.<br /><br />Pakistan is mired in political and economic crises, which forced it to go to the International Monetary Fund for a $3 billion standby bailout arrangement to avoid a default. For this reason, some experts Nikkei Asia interviewed expressed skepticism about the refinery project, questioning the need for the additional capacity in light of the economic woes. Security is also an ever-present concern, highlighted by a deadly suicide bombing in northwestern Khyber Pakhtunkhwa province on Sunday.<br /><br />But some argue that the parties involved are playing a longer game. James Dorsey, a senior fellow at the S. Rajaratnam School of International Studies in Singapore, reasoned that although the economic situation in Pakistan is not ideal, the country, with a population of over 200 million, still has huge economic upside. "This refinery will take a few years to build and by that time economic growth is anticipated in Pakistan," he said.<br /><br />The refinery could handle Russian crude, which Pakistan has just begun importing. With Ukraine war sanctions limiting Russia's export options and forcing discounts, a cash-strapped Islamabad turned to Moscow to bolster its energy supplies. Pakistan recently imported one shipment of Russian crude and is negotiating a second with a long-term oil transportation deal.<br /><br />The secretive dealings have raised several questions: over Pakistan's ability to process the Russian oil, as well as shipment costs, and how exactly the government can pay for the fuel in Chinese yuan. Nevertheless, a Pakistani government official privy to the developments told Nikkei on condition of anonymity that importing oil from Russia has been a success.<br /><br />"Pakistan plans to increase its oil imports from Russia, which would result in a need for additional refinery capacity in Pakistan," the official said. "The proposed refinery in Gwadar will possibly help refine increasing volumes of Russian crude."<br /><br />The Saudis, meanwhile, have been eyeing this project for some time. Crown Prince Mohammed bin Salman's visit to Pakistan in February 2019 brought the first announcement that a $10 billion oil refinery would be built in Gwadar. After a four-year interval, Dorsey believes Riyadh is likely serious about the project now.<br /><br />"Initially the Pakistanis tried to integrate the [Gwadar refinery] project in BRI but the Chinese refused it," Dorsey said, saying the project can now move ahead outside the Belt and Road framework.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-85031765897977828752023-07-31T22:29:43.197-07:002023-07-31T22:29:43.197-07:00China to work with Pak to build CPEC into ‘exempla...China to work with Pak to build CPEC into ‘exemplary project’: Xi<br /><br /><br /><br />https://tribune.com.pk/story/2428624/china-to-work-with-pakistan-to-build-cpec-into-exemplary-project-xi<br /><br />BEIJING:<br />Chinese President Xi Jinping said on Monday that China will work with Pakistan to aim for high-standard, sustainable and livelihood-enhancing outcomes and further build the China-Pakistan Economic Corridor (CPEC) into an exemplary project of high-quality Belt and Road cooperation.<br /><br />Xi pointed out that CPEC is an important pioneering project of the Belt and Road cooperation. Since its launch in 2013, China and Pakistan have been advancing CPEC under the principle of extensive consultation, joint contribution and shared benefits, and have achieved a number of early harvests.<br /><br />This has added new impetus to the economic and social development of Pakistan and laid a good foundation for regional connectivity and integration, he said, adding that it is a vivid testament to the all-weather friendship between China and Pakistan, and provides an important underpinning for building an even closer China-Pakistan community with a shared future in the new era.<br /><br />Stressing that China and Pakistan will continue to improve overall planning and expand and deepen cooperation, Xi said that no matter how the international landscape may change, China will always stand firmly with Pakistan.<br /><br />Xi added China and Pakistan will continue to work hand in hand and forge ahead in solidarity to carry forward the ironclad friendship, coordinate development and security, pursue cooperation of higher standards, broader scope and greater depth, and take the China-Pakistan all-weather strategic cooperative partnership to new heights, so as to make even greater contribution to peace and prosperity in the two countries and the broader region.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-37854191808953235882023-07-31T17:43:39.695-07:002023-07-31T17:43:39.695-07:00Pakistan, China sign six agreements to boost bilat...Pakistan, China sign six agreements to boost bilateral cooperation<br /><br />https://www.pakistantoday.com.pk/2023/07/31/cpec-pakistan-china-sign-six-agreements-to-boost-bilateral-cooperation-further/<br /><br /><br />China and Pakistan on Monday signed six agreements for the promotion of bilateral cooperation as Chinese vice premier Mr He Lifeng, Prime Minister Shehbaz Sharif, Foreign Minister Bilawal Bhutto-Zardari, Planning Minister Ahsan Iqbal and other foreign dignitaries looked on.<br /><br />On the occasion, Prime Minister Shehbaz Sharif said that “Pakistan is absolutely ready to contribute towards Chinese President Xi Jinping’s vision of the shared destiny of progress and prosperity.”<br /><br />The premier made these remarks during the signing ceremony of six agreements and MoUs for the promotion of bilateral cooperation between China and Pakistan.<br /><br />PM Shehbaz said that the documents signed by the two countries were aimed at further enhancing economic relations between the two countries.<br /><br />He added that under the China-Pakistan Economic Corridor (CPEC), more than $25 billion worth of investment has taken place in Pakistan’s power and hydel sector, road infrastructure and public transport.<br /><br />Shehbaz maintained, “We are now entering the second phase of the CPEC which will envisage investments in sectors, such as, agriculture and information technology.”<br /><br />He added that both ML-1 and Karachi circular railway projects are of immense importance, expressing the confidence that both sides “will successfully achieve these and many other projects”. He was also confident that this will help Pakistan stand on its own feet”.<br /><br />The premier said both Pakistan and China enjoy a unique relationship, adding “We are all-weather friends, iron brothers and this friendship will continue and will not tolerate any obstacles in its way”.<br /><br />The two countries have signed six agreements and MoUs for the promotion of bilateral cooperation. The first document was signed on the joint cooperation committee (JCC) of China Pakistan Economic Corridor (CPEC) and the second document was related to the establishment of an expert exchange mechanism within the framework of CPEC.<br /><br />The third document was signed by the Secretary Ministry of National Food Security Zafar Hassan and the Chinese Charge D’affaires Ms Pang Chunxue for the export of dried Chillies from Pakistan to China.<br /><br />Member Planning of National Highway Authority Asim Amin and Chinese Charge D’affaires Pang Chunxue signed the fourth document on the realignment of the Karakoram Highway Phase II project.<br /><br />Addressing the occasion, PM Shehbaz said, “I thank the Chinese president for sending his senior official to Pakistan, expressing the solidarity of people-to-people friendship between the two countries. This gesture demonstrates the strength of our friendship.”<br /><br />“I have no doubt that we are entering into the second phase of CPEC. Today, we have signed some important documents which will enhance our economic cooperation, and we will undertake the second phase under a new mode,” he told the gathering.<br /><br />The PM highlighted that the agreements would lead to investments in agriculture and IT, enabling Pakistan, with China’s support, to export items according to the requirements and standards of the Chinese government.<br /><br />He emphasised, “The CPEC was signed by then prime minister Nawaz Sharif and Chinese President Xi Jinping, and it was implemented promptly.”<br /><br />“Today, we can claim that under the CPEC, more than $25bn investment took place in power, energy, public transport, and other sectors.”<br /><br />He also expressed gratitude to the Chinese vice premier for visiting Pakistan as the two countries celebrate ten years of the CPEC. After the ceremony, delegation-level talks were held by PM Shehbaz and He Lifeng which encompassed multiple areas of bilateral cooperation.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-32816196405754917882023-07-30T18:56:39.788-07:002023-07-30T18:56:39.788-07:00Pak Approves Projects Worth Billions Of Dollars To...Pak Approves Projects Worth Billions Of Dollars To Gulf Countries For Investment Purpose<br /><br /><br />https://www.outlookindia.com/business/pak-approves-projects-worth-billions-of-dollars-to-gulf-countries-for-investment-purpose-news-306759<br /><br /><br />In a major development, Pakistan has in principle approved 28 projects worth billions of dollars that would be offered to Gulf countries for investment with the long-term objective to reduce reliance on loans and imports.<br /><br />The newly established Special Investment Facilitation Council (SIFC) -- a hybrid civil-military forum – is leading the drive to fast-track economic development to address the financial woes of the country.<br /><br />The list of the approved projects suggests that if all the schemes are picked up by countries, including Qatar, Saudi Arabia, the UAE and Bahrain, the quantum of investment under the SIFC banner can be greater than the USD 28 billion under the China-Pakistan Economic Corridor (CPEC), The Express Tribune reported.<br /><br />The approved schemes are in the food, agriculture, information technology, mines and minerals, petroleum and power sectors. They include cattle farms; the USD 10 billion Saudi Aramco refinery; explorations of copper and gold in Chagai; and the Thar Coal Rail connectivity scheme.<br /><br />The initial project also includes the Diamer-Bhasha dam which has also been offered to China for investment under CPEC.<br /><br />The CPEC is a collection of infrastructure and other projects under construction throughout Pakistan since 2013.<br /><br />In order to give legal cover to the SIFC working, parliament already approved a host of amendments to the Pakistan Army Act and the Board of Investment (BOI) Ordinance.<br /><br />Amendments to the Election Act have also been introduced to ensure the continuity of work on these schemes during the tenure of the caretaker government.<br /><br />These laws will provide fast-track execution of the initially approved 28 multi-billion dollar investment projects, besides ensuring immunity to the decision-makers from any kind of investigation by various anti-graft bodies.<br /><br />Another law, the Pakistan Sovereign Wealth Fund, is also in the pipeline that will provide equity to the SIFC-approved projects for both jointRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-13183919406337930002023-07-28T16:59:00.233-07:002023-07-28T16:59:00.233-07:00Pakistan sets up center to boost agricultural grow...Pakistan sets up center to boost agricultural growth with $500 million Saudi assistance<br /><br /><br />https://www.arabnews.pk/node/2333736/pakistan<br /><br /><br />The center will work in collaboration with Saudi Arabia, the UAE, Qatar, Bahrain and China on various projects<br /><br />It aims to enhance modern agro-farming in Pakistan by utilizing over 9 million hectares of uncultivated state land<br /><br />ISLAMABAD: Pakistan has established a Land Information and Management System, Center of Excellence ((LIMS-CoE) to enhance modern agro-farming by utilizing over 9 million hectares of uncultivated state land, a senior official said on Thursday, adding that Saudi Arabia provided an initial $500 million investment to set up the facility.<br />Pakistan, an agriculture-based economy contributing 23 percent to the GDP and employing 37.4 percent of the labor force, faces recurrent economic hardships. Currently, the productivity remains below par, with a decreasing cultivation area, a population-production gap, and agricultural imports amounting to $10 billion.<br />According to the World Food Program, around 36.9 percent of Pakistanis are food insecure, with 18.3 percent experiencing severe food crises. The country faces a shortfall of 4 million metric tons in wheat production against a total demand of 30.8 million metric tons, while cotton production has fallen by 40 percent to around 5 million bales in the last decade.<br />“As far as the high efficiency irrigation system is concerned, Saudi Arabia has already given us [Pakistan] $500 million,” Maj. Gen. Shahid Nazeer, who heads the LIMS-CoE, told reporters at a briefing on Thursday.<br />“Aimed at enhancing modern agro-farming utilizing over 9 million hectares of uncultivated waste state land, LISM-CoE has been established under the Director General Strategic Projects of Pakistan Army.”<br />The state-of-the-art system will revolutionize means to steer agricultural development through real-time information about land, crops, weather, water resource and pest-handling under one roof, according to the official.<br />The center will work in collaboration with Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and China on various agri projects to enhance Pakistan’s exports.<br />“In the next 3-4 days, a very high-powered Saudi delegation is coming to Pakistan to explore this kind of investment in four major sectors including agriculture, mines and minerals, information technology (IT) and defense production,” he said, adding this would be done under the umbrella of the Special Investment Facilitation Council (SIFC) that was recently established to revive the Pakistani economy.<br />Nazeer said the LIMS-CoE was aimed at ensuring food security and optimizing agricultural production in Pakistan through innovative technologies and precise, sustainable agricultural practices based on agro-ecological potential of the land, while ensuring the well-being of rural communities and environment preservation.<br />“The main objectives of the center included consolidation and reclamation of uncultivated waste land, optimal decision; what and where to grow, development of a master plan for modern farming, implementation of state-of-the-art agriculture management practices, practicing agro-intelligence for digital and precision agriculture, better utilization of technology to enhance yield and effective decision support system,” he explained.<br />The LIMS-CoE recently initiated modern agri-farming projects in Punjab, according to the official. Efforts were being made to use certified hybrid seeds with concurrent development involving joint ventures with multi-national companies, which could pay rich dividends. In agriculture and gardening, a hybrid seed is produced by deliberately cross-pollinating plants that are genetically diverse.<br />“Hybrid seed gives 30-50 percent more yield, world is using 80 percent hybrid seed, while Pakistan currently uses only 8 percent of hybrid seed,” he added.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-61259933396922174632023-07-27T20:59:21.283-07:002023-07-27T20:59:21.283-07:00Mohammed Sohail
@sohailkarachi
Pakistan Stock Mark...Mohammed Sohail<br />@sohailkarachi<br />Pakistan Stock Market is best performing in the world in July with a USD gain of 15% (see Bloomberg picture enclosed)<br /><br />Benchmark KSE 100 Index at 20 months high to reach 47077<br /><br />Todays volume of PKR 28b (USD100m) at 19 months high<br /><br />The main factors of this rally....IMF deal, dollar inflows from friendly countries increasing FX reserves, falling inflation<br /><br />Moreover, clarity on smooth transfer of power to caretaker government who will organise election in Nov<br /><br />June quarter results and dividends are also better than expected, especially by UBL<br /><br />Interesting foreign portfolio investors are back with net buying of close to USD18m in July by foreign corporates<br /><br />https://twitter.com/sohailkarachi/status/1684528263710887937?s=20Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-42607317817633664412023-07-27T10:32:12.334-07:002023-07-27T10:32:12.334-07:00Pakistan says newly formed special investment coun...Pakistan says newly formed special investment council to help CPEC attract investment from Gulf nations<br /><br /><br />https://www.arabnews.pk/node/2343926/pakistan<br /><br /><br />Pakistan's planning minister says looks forward to more active engagement with Arab states<br />Ahsan Iqbal Gwadar Port has handled more than 600,000 metric tons of cargo during last year<br />ISLAMABAD: Pakistan’s newly formed Special Investment Facilitation Council (SIFC) would complement the China-Pakistan Economic Corridor (CPEC) by attracting investment from the Gulf countries, Planning Minister Ahsan Iqbal said on Tuesday, as the South Asian country looks for foreign direct investment to overcome an economic crisis. <br /><br />The minister expressed these views during the concluding session of a two days international conference on CPEC and the Belt and Road Initiative (BRI) that was organized by his ministry to celebrate 10 years of the project, which was signed between Pakistan and China in 2013. <br /><br />It followed the establishment of the SIFC by the Pakistani government in June this year to address the country’s economic woes by drawing international attention to business opportunities in the fields of agriculture, mining, information technology and defence production in Pakistan. <br /><br />“We have also formed SIFC for GCC countries' investment into Pakistan where SIFC and CPEC are two twins, who will complement each other and bring opportunities to Pakistan from the Gulf countries,” Iqbal said. <br /><br />CPEC, a major segment of Beijing’s Belt and Road infrastructure initiative, is a $65 billion network of roads, railways, pipelines and ports in Pakistan that will connect China to the Arabian Sea and help Islamabad expand and modernize its economy, with the Gwadar port city in Balochistan as the epicenter of it. <br /><br />Saudi Arabia expressed its intention to invest in CPEC projects as early as 2019, when the Middle Eastern country announced plans to set up a $10 billion oil refinery near Pakistan's deep-water port of Gwadar. <br /><br />Iqbal said CPEC was seen as a project that would help integrate South Asia, Central Asia, the Middle East, China and even beyond to Africa. <br /><br />“So, we are very much looking forward to more active engagement with GCC countries, with whom we have very strong brotherly relations,” the minister said. <br /><br />Through CPEC and BRI, Pakistan could promote cultural exchanges, educational collaboration and tourism between nations, deepening mutual understanding and appreciation, according to Iqbal. <br /><br />The South Asian nation attract a lot of investment due to its cheap labour as most of the labor-intensive companies or industries were relocating to other countries from China due to expensive labour. <br /><br />“Pakistan can benefit from it because it had a corridor, and it had an infrastructure, that is the reason we have fast tracked work on Special Economic Zones,” he explained. <br /><br />Iqbal said the Prime Minister Shehbaz Sharif-led government completed many of the unfinished CPEC projects last year in order to revive the multi-billion-dollar corridor. <br /><br />“After 2018, first major Chinese investment has come to Pakistan, $3.5 billion investment in Chashma Nuclear Power Plant 5, which will produce 1,200 megawatts of energy for Pakistan,” he said. <br /><br />Due to the government’s facilitation, Iqbal said, the Gwadar Port had handled more than 600,000 metric tons of cargo in 2022 compared to 100,000 metric tons of cargo in the preceding four years.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com