Newsletter 175

Newsletter

Publication 175

15 May 2024

Maersk, the top global logistics company, is famous and well known for its widespread expertise in shipping, port management, supply chain operations, and warehousing. Maersk intentions to set up Karachi's first Green Transshipment Terminal, aligning with Pakistan's investment and regional connectivity goals. The collaboration with the Special Investment Facilitation Council underscores the importance of public-private partnerships in fostering a conducive environment for investment and development. Furthermore, this initiative is poised to catalyze economic growth and enhance regional integration. This decision of making Green Transshipment Terminal reflects another pivotal groundbreaking in the company’s history of industry leadership and pledge to sustainable progress and expansion in infrastructure and enhanced connectivity.

Maersk Significant Development Of Green Transshipment Terminal In Karachi

Duty Increase On Key Imports To Protect Reserves Imposed By Government

Pakistan is antedating increased customs duties on imports of used cars and wheat, is strategic response to increasing import expenses and domestic agricultural challenges. The potential imposition of heightened customs duties on used cars with engines up to 1,300cc and wheat imports reflects a desire to protect local industries and address economic concerns. These negotiations concurred with the arrival of an IMF mission in Pakistan, highlighting Pakistan's commitment to seeking international guidance and cooperation in navigating its economic challenges. The proposed adjustments are preliminary and subject to review by the Tariff Policy Board, indicating a thorough evaluation process before implementation. The anticipated revenue generated from these measures could significantly contribute to Pakistan's fiscal stability while also helping to control the surge in car imports witnessed in recent times. According to a local media report, officials are considering on reinstating customs duties on wheat imports and intensifying duties on smaller used cars. Additionally, there’s consideration for a 1% increase in customs duties on various items presently taxed between 3% and 11%, which could yield an estimated Rs20 billion in the upcoming fiscal budget.

Jazz intentions to list on the Pakistan Stock Exchange (PSX) a proactive effort to bolster capital markets of the country. This is to facilitate the economic growth and also provide local investors with a stake in its success. Going public was to express more obligation and assurance to the country economic development and to avoid the perception that foreign entities solely profiting from the country. perceptions of foreign entities solely profiting from the country. By offering shares to local investors, Jazz seeks to foster a sense of ownership and engagement within the community. Jazz to reward its employees with equity, thereby enhancing their loyalty and motivation. Retaining top talent is crucial for Jazz's continued success in a competitive market. Jazz has the potential to become one of the largest IPOs in the country’s history.

Proactive Approach Of Jazz On Public Listing

New Trade Policies To Boost Exports In Pakistan

The development and expansion of new trade policies underscores at encouraging the business sector and increasing competitiveness of Pakistani exports. A key comprehensive strategy to evaluate the performance of trade and investment officers posted in Pakistan’s missions abroad. By rewarding the high performing and addressing the incompetent ones. The authorities concerned to formulate the trade policies with a core objective of smoothing the business sector, calling for urgent measures to enhance the competitiveness of the country’s exports for steps to promote exports of non-traditional goods and for immediate payment of the certified duty drawback of the exporters and to ensure consultation with them during the policy.

The Cabinet Committee on Privatization (CCoP) on Friday principally and for the time being approved 24 State Owned Enterprises (SOEs) for the Privatization Program, directing the Privatization Ministry to thoughtful the phasing of each and individual entity in consultation and discussion with the respective ministries. It was recommended that priority shall be accorded to privatization of loss-making entities while the federal footprint shall be limited only to the Strategic and Essential SOEs under the federal government’s domain. The CCoP stressed that even the making profits SOE shall be considered for privatization. After considering on the privatization policy guidelines, the CCoP considered 84 SOEs in detail in accordance with the SOE Act and Policy. Following the discussions and negotiations, the committee suggested that 40 SOEs, categorized as Strategic or Essential, shall be placed by respective ministries before the Cabinet Committee on State Owned Enterprises (CCoSOE) for their categorization as Strategic or Essential. Those SOEs which will not be categorized as Strategic or Essential shall be included in the Privatization Program. The CCoP directed all ministries/ divisions to take up their cases of Strategic and Essential SOEs at the earliest so that a comprehensive phased privatization program is finalized in the next meeting.

Principally Approved 24 Entities For Privatization Program By CCoP

Zimbabwe To Buy 12 Super Mushshak Aircraft From Pakistan

Pakistan has gained a contract to sell 12 MFI-17 Super Mushshak trainer aircraft to Zimbabwe, another significant achievement in recent export achievement after sealing a deal with China for JF-17 jets. The contract was made during a security expo in Islamabad back in 2022 and shows Zimbabwe’s efforts to revolutionize its military. The Super Mushshak comes with a piston engine, a glass cockpit, and advanced control systems, and is certified by the US. Zimbabwe is following a trend seen in other African countries like Nigeria, who are also procuring aircraft from Pakistan. This decision by Zimbabwe is partially in response to sanctions executed by Western countries. Even though Zimbabwe faces challenges with its current aircraft fleet, working with Nigeria will help them to improve their progress capabilities and address safety issues. This alliance shows Pakistan’s rising influence in the aviation industry and its capability to meet the needs of different countries.

Pakistan is enthusiastically formulating for its next satellite launch scheduled for May 30, following the noteworthy success accomplished with iCUBE. This next satellite, named MM1, represents a collaborative effort between SUPARCO and the National Space Agency. Its chief objective is transformed 5G internet services across Pakistan, striving to offer swifter and more dependable connectivity to citizens nationwide. Among its important errands is the scrutiny of lunar crater locations, as well as the discovery of water and traces of ice on the moon’s surface, iCUBE, continues its successful orbit around the moon. Despite enduring extreme environmental conditions, iCUBE remains operational, diligently collecting crucial data. Among its vital missions, iCUBE analyzes lunar crater locations and identifies water and ice traces on the moon's surface. It transmits high-resolution images back to Earth at a steady rate of 1-kbps, greatly enriching our comprehension of lunar geography and composition.

After iCUBE Success Another Satellite Into Space From Pakistan

Aide-Memoire For Enhanced Development Cooperation 2024-2026

The Economic Development Cooperation Fund (EDCF) and the Ministry of Economic Affairs (MoEA) contracted an Aide-Mémoire to chart a mid-term plan for implementation and execution of development projects between 2024-2026.The Aide-Mémoire, which was signed at the conclusion of visit by EDCF Country Program Mission from the Export-Import Bank of Korea (KEXIM), represents a important breakthrough in deepening and expanding economic bonds between Pakistan and the Republic of Korea. A project concept for the building of a Pediatric Hospital in Jamshoro was signed, with EDCF committing in financing for the hospital’s construction in Sindh. The EDCF mission’s aims also included knowledge sharing and capacity building, which both sides agreed to further improve in the years to come. The Aide-Mémoire underscores the mutual commitment to work towards sustainable development through projects in significant sectors, with transport, healthcare, energy, and information and communication technology.

Pakistan and Uzbekistan Commodity Exchange leaders have decided to take a joint future plan of action, concerning new capital market challenges and tasks through support and collaboration. The commodity exchange leaders, during the interaction, highlighted the joint action plan and initiative of the two commodity exchanges by adopting a joint future planning and action plan to face the challenges of the future market. Pakistan and Uzbekistan have significant potential in commodity exchange which comprises foremost sectors in the country’s Gross Domestic Products (GDP), including agriculture and textiles, food and oil sector, grain, sugar and energy sector. Uzbekistan is currently emerging in the market economy and at this time Pakistan Mercantile Exchange and Uzbekistan Commodity Exchange want to gain mutual profit from experiences. Pakistan and Uzbekistan have countless compatibility and many sectors are compatible on both sides, with which both sides want to move ahead with collaboration by implementing a common plan. Bilateral discussion negotiation should endure by accepting a common strategy for the promotion of capital markets on both sides.

Pak-Uzbekistan Joint Plan Of Action In Commodity Exchange