The Apex Committee of the Special Investment Facilitation Council (SIFC) has prepared a roadmap for the national development and foreign investment in different sectors in the country. The Apex Committee decided to take different actions to attract foreign investors in the potential sectors of the country. Introducing Pakistan as an export-led country in the world is the first priority of the government. A country could develop only through foreign direct investment and every developing country now exploring this avenue to expand its exports. The China-Pakistan Economic Corridor (CPEC) became a tool to attract investments of up to $28 billion to Pakistan. Foreign investors will be given all facilities under one roof in five potential sectors including defense production, agriculture, information technology, minerals and energy.
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Apex committee decides on plan to attract foreign investors
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IMF Deal Charts Path To Economic Recovery
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An economic roadmap to Pakistan for a short-to-medium duration has been made available for the July-March period after the loan programme of $3 billion has been given by International Monetary Fund (IMF). This revived investor confidence in the domestic economy and started delivering the promising results immediately. The uncertainty that how Pakistan’s economy would survive without the IMF has thus been dispelled much to the relief of the GoP, and especially so for the caretaker government set-up.
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Two gulf states had shown the interest in investment in Pakistan. The hefty investment in Pakistan from the Gulf region would up lift business activities, in addition open many job opportunities. The Kingdom of Saudi Arabia planned to fix $24 billion in funds for investment purposes in Pakistan and the United Arab Emirates will invest in $22 billion exploring opportunities in three sectors, Information technology, Agriculture and Mining sectors of Pakistan.
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KSA, UAE Willing To Invest In Pakistan
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KPT Raises Port Charges After Two Decades
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The management of Karachi port, the Karachi Port Trust (KPT) has enhanced the port charges with immediate effect, this increase comes after a gap of 20 years. Over the past two decades, the costs of operation, maintenance and modernization have significantly increased due to the prevailing inflation and the escalation of the US dollar against PKR. These factors, coupled with the need to adapt to evolving market demands and address infrastructure challenges have necessitated a tariff adjustment. The wet charges were rather reduced in the years 2003, 2006 and 2010 as compared to those applicable in 1994. Following this recent enhancement, the revised wet charges of Pilotage/Berthage and Port Dues are still kept lower as compared those in 1994 despite significant increase of inflation. Whereas other dry charges may have a marginal impact on certain sectors, as KPT has decided to either maintain or negligibly increase the tariff structure for edible oil, food, grain, wheat, atta, seeds, fertilizers, meal, pulses, poultry feeds, etc. to mitigate any significant price hikes. While KPT has decreased the tariff on trans-shipment through the port of Karachi to boost shipping activities.
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Under the current geo-economics scenario Road Transport Agreement between Pakistan and Russia will prove a catalyst to boost the country’s economy and pave the way for a larger influx of trade. The Transport International Routes Convention made a significant breakthrough as the first truck carrying export goods from Russia reached Pakistan through the Torkham border successfully. Reportedly, by the end of May 2023 trade between Russia and Pakistan grew by almost 50% and amounted to more than $760 m (million). Since the beginning of diplomatic relations with Russia in 1948, this is the first time that a trade route through roads has been established. Russia is the fourth largest LNG exporting country in the world and Pakistan has a huge potential of exporting fruits, garments, surgical instruments, and agricultural products making them both potentially strong trade partners. The transport of goods will be carried out under TIR Carnet under which road transport permits are issued in order to simplify procedures at customs borders.
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First Truck Of Russian Goods Arrives In Pakistan
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CPEC’S Projects Attract $25.4b Of Direct Investment During Last 10 Years
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This year marks the 10th anniversary of the launch of CPEC. The China-Pakistan Economic Corridor a signature project of China-Pakistan cooperation in the new era, the projects under China-Pakistan Economic Corridor (CPEC) a flagship project of the Belt and Road Initiative (BRI), are flourishing all across Pakistan and have attracted $25.4 billion of direct investment from China during the last 10 years. The projects under the CPEC framework have created 192,000 jobs, producing 6,000 megawatts of electric power, building 510 kilometers of highways and adding 886 kilometers to the core national transmission network.
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The European Union (EU) has suggested prolonging Pakistan’s Generalized Scheme of Preferences Plus (GSP+) status for an additional four years, the proposed extension would maintain the existing trade benefits for Pakistan. Pakistan would still be required to comply with the 27 international human rights, labor rights, environment, and governance conventions outlined by the EU for the GSP+ status. The EU would continue to monitor Pakistan’s progress and regressions in meeting these obligations and would provide regular reports to the European Parliament and member states, the upcoming report on the GSP+ monitoring mission would be published soon, emphasizing that she did not want to speculate about its findings. The primary objective is to avoid a sudden termination of trade benefits at the end of the current year.
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EU Proposes Four-Year Extension Of GSP+ Status For Pakistan
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Indus Motor Company Sign Export Agreement With Egypt
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Indus Motor Company (IMC) has signed an agreement with Toyota Egypt to export “high-quality products” from July. Indus Motor Company (IMC) has become the first-ever auto manufacturer to open gates to the global supply chain by signing an agreement with Toyota Egypt to export high-quality products starting July 2023. This achievement paves the way for other local automotive part manufacturers to follow suit, creating new possibilities and efficiency to produce parts of superior quality. This collaboration sets a positive trajectory for Pakistan’s automotive industry, enabling local manufacturers to become part of the global supply chain and sell high-quality parts at competitive prices. This collaboration will strengthen connectivity between Africa and Pakistan, supporting the government’s “Look Africa” policy and boosting trade links.
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Pakistan talks with Russia to continue for buying a second shipment of discounted crude oil, as there's no situation under which Pakistan will not reap benefit from the relatively cheaper Russian crude despite its lower yield ratio, said the federal minister. The first cargo of 100,000 metric tons of Russian crude oil had been magnificently tried and tested at the Pakistan Refinery Limited (PRL), although it attaches limitations of higher freight/insurance cost, and more furnace oil production after refining compared to Arabian light oil from Saudi Arabia. The Pak-Arab Refinery Limited (PARCO) had also been enquired for possible import of Russian crude.
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Pakistan To Buy A Second Shipment Of Discounted Russian Crude Oil
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Call To Improve Trade Among SAARC Members
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Pakistan is fully committed to improving regional trade among SAARC member countries to make South Asia a prosperous and economically integrated region as it is one of the most dynamic regions in the world. The business community had a vital role to play in Pakistan’s economic uplift and the private sector for making crucial contribution to economic development. Emphasizing that the strengthening of the economy and promotion of trade were the government’s priorities, the government had steered the economy out of crisis by making sincere efforts. Pakistan had always strived to make SAARC an important vehicle for regional cooperation based on the principle of equality and commitment to restoring peace and ensuring prosperity in the South Asian Association for Regional Cooperation (SAARC) region as Pakistan wanted to forge bilateral and trade relations with regional countries on the basis of mutual respect.
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