Pakistan reiterates its promise to protect Kingdom’s sovereignty

The parliament building in Islamabad as shown here. At a recent Senate meeting, Pakistan said it would continue to stand by Saudi Arabia in it's time of need. (Photo courtesy: Press Information Department – PID)
Updated 10 November 2018
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Pakistan reiterates its promise to protect Kingdom’s sovereignty

  • Senate apprised of ongoing situation in the Gulf region
  • PM Khan cements ties with ally by visiting country twice since assuming office in August

ISLAMABAD: Expressing solidarity with the Kingdom of Saudi Arabia, Pakistan on Saturday once again reiterated its commitment to defend the sovereignty of the country, Muhammad Ateeq Shaikh, a member of the Senate told Arab News.
The comments followed a meeting conducted by the Senate standing committee on foreign affairs on Friday to review the situation in the Gulf and the role that Pakistan is expected to play in it.
Senator Shaikh said that Foreign Ministry Spokesman, Dr. Mohammad Faisal briefed the committee on the situation in the Gulf region, adding that there would be no change in Islamabad’s policy toward the Kingdom.
“We all (the members of the committee) unanimously expressed solidarity with Saudi Arabia,” Shaikh, a representative of the Mutahidda Qaumi Movement (MQM) said. MQM is an ally of the ruling Pakistan Tehreek-e-Insaf (PTI) party.
Ties between Islamabad and Riyadh are deep-rooted and Pakistan has always been vocal about its support for the Kingdom, insisting that it will always work toward protecting its sovereignty as a matter of principle and based on the historic ties shared between the two countries.
Saudi Arabia was the first country that Prime Minister Imran Khan chose to visit since assuming office in August this year. He returned to the Kingdom once again in October to participate in a prestigious business conference in Riyadh, also known as the “Davos in the desert”.
Earlier this week, Saudi Arabia’s ambassador to Pakistan, Nawaf bin Saeed Al-Maliki, met with President Dr. Arif Alvi at the President House in Islamabad.
A statement issued after the meeting said that the two countries would soon sign an agreement to establish an oil refinery in Pakistan, in addition to finalizing other major projects which Saudi Arabia has shown interest in.
Dr. Alvi, on his part, stressed on the need for more exchanges to take place between the business delegations of both the countries.


Bulls welcome PM Khan to Karachi with 738-point stock market gain

Updated 10 December 2018
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Bulls welcome PM Khan to Karachi with 738-point stock market gain

  • Premier assures promotion of CPEC project listings and reduction of advance tax
  • Move would help increase volume and market capitalization, analysts say

KARACHI: Bulls from Pakistan’s equity market gave a rousing welcome to Prime Minister Imran Khan on Sunday during the premier's visit to Karachi after he promised to create a conducive environment for investors which would include listings of projects from the China-Pakistan Economic Corridor (CPEC) initiative. 

The benchmark KSE-100 Index closed on Monday in the green zone, gaining 738 points – or 1.9 percent – and closed at the 39,300-level. Investors were mainly motivated by PM Khan’s meeting with a delegation from Pakistan Stock Exchange (PSX). 
“Stocks showed a strong recovery after the PM’s affirmation of a fast-track enactment of PSX proposals on taxes, regulations, and CPEC debt listings,” Ahsan Mehanti, Chief Executive of Arif Habib Corporation, told Arab News. 
Oil and gas exploration companies led the recovery, as OPEC and Non-OPEC countries decided to cut oil production by 1.2 mbpd from January 2019 onwards. This attracted investors towards oil scrips, such as PPL (+5 percent), OGDC (+4.25 percent), POL (+3.66 percent) and MARI (+2.66 percent), and the sector added 257 points to the index. 
During the trading session, the volumes increased by 20 percent to 154 million while traded value fell by one percent to $48 million, according to Topline Securities. 
“Trade remained higher, led by oversold banking, cement, and auto stocks. Renewed institutional interest on likely rationalization of PSX taxes and government measures for raising investor confidence acted as a catalyst in the bullish close at PSX,” Mehanti added.
On Sunday, a delegation led by PSX Chairman Sulaiman Mehdi met the prime minister and discussed strategies to rejuvenate the stock market. 
“The meeting was very fruitful and the PM agreed to revive investors’ confidence in PSX,” a statement issued by the PSX, after the meeting, read. 
PM Khan assured the delegation that Advance Tax of 0.02 percent on purchase and sale of shares (both sides) would be reduced to 0.01 percent. He also agreed to allow capital losses to be carried forward to up to three years from the initial one year, rationalization of taxation of holding companies on inter corporate dividend; and rationalization of capital gain tax on equities in line with real estate in the next budget, the statement added. 
CPEC is the umbrella of the Chinese mega project under the One Belt and Road Initiative (BRI) that is expected to stimulate economic activity across more than 65 countries. China is investing around $60 billion in Pakistan’s infrastructure and energy projects. 
PM Khan also assured the delegation of capital market to promote a listing of government and CPEC project debt at PSX. 
“It is good sign because it will increase the depth of the market following the listing of big Chinese companies,” Zafar Moti, former director of PSX, told Arab News. 
“There are many projects under CPEC, some of them have commenced operations and others are in the pipeline in public and privates sectors,” Muhamamd Sohail, CEO of Topline Securities, said. 
“The listing of CPEC projects will increase volume, market capitalization and, most importantly, shareholders, both Chinese and Pakistani, will know the real value of their projects after price discovery,” he added. 
PM Khan, during his daylong visit to Karachi, held separate meetings with different groups of traders, including with those from the Pakistan Chambers of Commerce and Industry, Karachi Chambers of Commerce and Industry, and Overseas Chamber of Commerce and Industry. 
Representatives from the business community expressed concerns over the recent devaluation of the rupee, interest rate hike and gas tariff increase, and raised the Gas Infrastructure Development Cess issue.