KARACHI: Bilateral trade between Pakistan and Afghanistan is constantly declining after measures taken by Pakistan at the Pak-Afghan border to check the inflow of terrorists from Afghanistan.
Increasing trade by India via Iran’s Chahbahar port and air routes is another cause, Junaid Esmail Makda, President of Pakistan-Afghanistan Joint Chamber of Commerce and Industry, told Arab News.
Pakistan and Afghanistan have been enjoying cordial trade relations but owing to increasing Indian penetration in the Afghan market, bilateral trade between two old partners has been on the declining trend for the past two years.
“In 2014-15 the bilateral trade was $2.7 billion but it has come down to $1.6 billion to date,” Makda told Arab News.
He said the Indian government is subsidizing their exports that enjoy greater excess to Afghanistan. “The Indian government is providing exporters with a subsidy to capture the market. They are exporting goods via air but are being charged freight of ship,” said Makda.
Pakistan exports a number of items to Afghanistan including sugar and sugar confectionery, salt, sulfur, stone, plaster, lime and cement, milling products, malt, wheat gluten, animal and vegetable fats and oils, articles of iron or steel and ready-made garments. However, many goods are now being supplied by Pakistan’s arch-rival, India.
New Dehli is using Iranian port of Chahbahar to transport its goods to Kabul, which also led to the trade volume decline between Pakistan and Afghanistan, Makda added.
Pakistan also extends a transit facility in the form of Afghan Transit Trade to the landlocked Afghanistan which, according to the traders and transporters, have also substantially declined over the past two years.
According to transporters, around 15,000 vehicles are engaged in the transportation of goods between Pakistan and Afghanistan. “Due to trade decline, the ATT cargo transportation has declined to 25 to 30 percent,” Hanif Marwat, general secretary of the Supreme Council of All Pakistan Transporters, told Arab News.
Around 3,000 vehicles are used to transfer goods to Afghanistan through the Quetta-Chaman border and that is the only sources of transporters’ livelihood. “Those who ply on this route are increasingly losing their livelihood,” Marwat said.
However, some of the transporters hope that with the increase of US troops in Afghanistan, their activity will pick up again.
“We were supplying goods to NATO forces in Afghanistan which has also substantially declined, but with the increasing troops we hope that our business will also increase,” Israr Shinwari, spokesman of All Pakistan Oil Tankers Association told Arab News.
Until the recent past, Afghanistan has been depending on Pakistan for its flour requirements but things have now changed.
“Russian states have overtaken Pakistan in supplying wheat and flour to Afghanistan. In the process, around 100 mills have been shut down,” said Chaudhry Ansar Jawed, chairman of Pakistan Flour Mills Association. However, after the $120 per ton rebate given by Pakistan government, the export of flour to Afghanistan has somewhat resumed.
Pakistani businessmen are not losing hope as they said that owing to the engagement of top officials of both countries, a solution to problems will be found that will lead to the normalcy of trade.
Pakistani traders see a bilateral trade potential of $5 billion between the two neighbors. Pakistan Bureau of Statistics data show that exports to Afghanistan declined from $1.44 billion in the fiscal year 2016 to $1.271 billion in 2017. Export worth $319 million was recorded in the first quarter of the current fiscal year 2017-18.
Pak-Afghan trade volume declines as India increases its share
Pak-Afghan trade volume declines as India increases its share
Over the moon: China launches high-stakes lunar mission with Pakistani satellite bound for orbit
- The launch is part of China’s Chang’e-6 mission that aims to obtain the first-ever soil and rock samples from the lunar far side
- The samples will contain material ejected from lunar mantle, be used to provide insight into history of moon, earth and solar system
ISLAMABAD: China on Friday launched a Pakistani satellite, ‘ICUBE-Qamar’ or ICUBE-Q, that is set to enter the lunar orbit on a high-stakes moon mission to reach the lunar side, Pakistani state media reported.
The launch was part of China’s Chang’e-6 mission, a planned robotic lunar exploration mission, that aims to obtain the first-ever soil and rock samples from the lunar far side and return them to earth.
The samples will contain material ejected from the lunar mantle and will be used to provide insight into the history of the moon, earth, and the solar system.
“The satellite has been designed and developed by IST (Pakistan’s Institute of Space Technology) in collaboration with China’s Shanghai University and Pakistan’s national space agency SUPARCO,” the state-run Radio Pakistan broadcaster reported.
“The primary purpose of CubeSats is to facilitate scientific research, technology development, and educational initiatives in space exploration.”
The satellite launch was broadcast live on the IST website from the Wenchang space launch site in Hainan, China.
The primary phase of the mission is expected to last about 53 days. Like its predecessors, the spacecraft is named after the Chinese moon goddess Chang’e.
ICUBE-Q has two cameras as payload for taking images of the lunar surface that will be transmitted back to earth for analysis, according to its developers.
They described the launch as a “historic moment” that would open new avenues for future deep space missions from the South Asian nation.
“This is Pakistan’s first deep space mission which is indeed a historic moment and following that maybe in the future other deep space missions can be planned,” Khurram Khurshid, the head of the electrical engineering and computer science department at IST and a co-lead on the satellite project, told Arab News.
Pakistan’s proposal to build the satellite was accepted by the China National Space Agency (CNSA) from plans submitted by eight member states of the Asia-Pacific Space Cooperation Organization (APSCO).
Amid investment push, Pakistan prepares for upcoming visit by Saudi business delegation
- Pakistan and Saudi Arabia have been working closely in recent weeks to increase bilateral trade and investment
- Pakistani PM has visited Saudi Arabia twice in a month, met crown prince and top ministers and banking heads
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif said on Friday he hoped for “fruitful” meetings when a high-level delegation of Saudi businessmen that will visit Islamabad in the “next few days” amid a push by the South Asian nation to attract foreign investment.
Pakistan and Saudi Arabia have been closely working in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman also reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.
On Thursday, Pakistani Information Minister Attaullah Tarar said a “high-powered” delegation of Saudi businesspeople and heads of major Saudi companies would be in Islamabad in the “next few days” to discuss private sector investments.
“The best hospitality should be given to the Saudi delegation,” Sharif said as per a statement from the Prime Minister’s Office after a review meeting on Saudi investments in Pakistan.
“It is hoped that the meetings of Pakistani businessmen with the Saudi delegation will be fruitful.”
The business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum. On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.
This was Sharif’s second meeting with the crown prince in a month. Before that he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, during which Pakistan pitched projects worth at least $20 billion to Riyadh.
Pakistan and Saudi Arabia enjoy strong trade, defense and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.
Saudi Arabia has often come to Pakistan’s aid in the past, regularly providing it oil on deferred payments and offering direct financial support to help stabilize its economy and shore up forex reserves.
As things stand, Pakistan desperately needs to shore up its foreign reserves and is in talks with the International Monetary Fund (IMF) for a new bailout deal, for which it needs to signal that it can continue to meet requirements for foreign financing which has been a key demand in previous loan packages.
Last year Pakistan set up the Special Investment Facilitation Council, a body consisting of Pakistani civilian and military leaders and specially tasked to promote investment in Pakistan. The council is so far focusing on investments in the energy, agriculture, mining, information technology and aviation sectors and specifically targeting Gulf nations.
Pakistan envoy highlights Kashmir, Palestine at UN debate on ‘Culture of Peace’
- Munir Akram says the realization of the culture is intrinsically linked with adherence to the principles of the UN Charter
- ‘We must also confront and reverse the dark forces of fascism, aggression and occupation,’ Pakistan’s envoy tells the UN
ISLAMABAD: Pakistan’s permanent representative to the United Nations (UN), Ambassador Munir Akram, on Thursday participated in a general debate of the United Nations General Assembly (UNGA) on the ‘Culture of Peace,’ where he highlighted the issues of Kashmir, Palestine and growing Islamophobia in the world.
The Muslim-majority Himalayan region of Kashmir has been a flashpoint between Pakistan and India since their independence from the British rule in 1947. Both countries rule part of the Himalayan territory, but claim it in full and have fought three wars over the disputed region.
Pakistan also does not recognize the state of Israel and calls for an independent Palestinian state based on “internationally agreed parameters” and the pre-1967 borders with Al-Quds Al-Sharif as its capital. Akram has repeatedly raised the issue of Israeli war on Gaza at the UN in recent months.
In his address on Thursday, Pakistan’s permanent envoy said the world was witnessing the “rise of hate, violence and war” despite a unanimously expressed desire to promote peace, noting that more than 300 conflicts were presently raging across the world.
“The right of peoples to self-determination is being brutally suppressed, especially in Palestine and in Jammu and Kashmir,” he said in his address. “We see the spread of discrimination, bigotry, xenophobia and Islamophobia even in mature democracies.”
Akram said his country welcomed the consideration of the agenda item, adding the realization of Culture of Peace, as delineated in Article 3 of the UN Declaration, was intrinsically linked with the adherence to the principles of the UN Charter.
“In our turbulent world, promotion of a Culture of Peace is not only desirable but imperative. Our strategy must energetically promote the values of peace and harmony under the dialogue among civilizations,” he said.
“But we must also confront and reverse the dark forces of fascism, aggression and occupation and the threat they pose to peace, prosperity and stability and a world order based on the principles and purposes of the UN Charter.”
Speaking with regard to growing Islamophobia in the world, the envoy noted Pakistan and member states of the Organization of Islamic Cooperation (OIC) had initiated the adoption of a resolution designating March 15 as the Day to Combat Islamophobia and on the same day this year, the General Assembly adopted a resolution on Measures to Combat Islamophobia.
“We look forward to the appointment of the Secretary-General’s Special Envoy on Islamophobia and the initiation of a Plan of Action to Combat Islamophobia,” he added.
Pakistan takes stringent measures to broaden tax net ahead of IMF loan talks
- Islamabad expects an agreement with the IMF by July, though both sides have refrained from commenting on the program’s size
- Law Minister Azam Tarar says IMF is insisting on increasing tax net, implementing energy reforms and ensuring good governance
KARACHI: Pakistani authorities have taken some stringent measures to broaden the country’s tax net, including blocking mobile phone connections of individuals and registering retailers, ahead of Islamabad’s talks with the International Monetary Fund (IMF) this month for a new loan program.
Pakistan and the IMF are expected to begin formal talks after the arrival of an IMF team in Islamabad in the mid of May. Islamabad has said it expects a staff-level agreement by July. Though both Pakistani and IMF officials have refrained from commenting on the size of the program, the South Asian nation is expected to seek around $7 billion bailout from the global lender.
Last month, Jihad Azour, the IMF director for the Middle East and Central Asia, said that “reform is now more important than the size of the program.” The Fund is insisting on increasing the tax net, implement energy reforms and ensure good governance as part of the reforms, according to Pakistani officials.
Speaking at a press conference in Islamabad on Thursday, Law Minister Azam Nazeer Tarar said the IMF had recommended a number of measures and the government would utilize this revenue for the betterment of the masses.
“The IMF has recommended to expand tax net, control electricity theft and ensure good governance to save the resources,” Tarar said, adding that introducing reforms in the Federal Board of Revenue (FBR) was top priority of the government to address economic issues and broaden the tax net.
The Pakistani government has reshuffled officials within the tax collection agency to streamline operations and enhance its transparency, according to the official. It has decided to block more than half a million mobile phone connections of individuals, who had not filed their tax returns, and emphasized on the registration of retailers ahead of formal talks with the IMF.
“FBR has taken decisive action by issuing an order to disable mobile phone SIMs associated with 506,671 individuals who fall under the aforementioned category,” the tax collection agency said in a notification issued on April 30.
“These measures are aimed at encouraging individuals to fulfill their tax obligations and contribute to the country’s economic development.”
In an another move, the FBR has decided to expedite the registration of around 3 million retailers, under the Tajir Dost Scheme, which focuses on traders and shopkeepers operating through a fixed place of business, including a shop, store, warehouse, office or similar physical place.
However, representatives of trade bodies say the scheme, launched on April 1, had not produced the “desired results.”
“The scheme is failing because there is no awareness among traders about the pros and cons of the scheme, while business conditions are also not supporting such a move,” Atiq Mir, chairman of the All Karachi Tajir Ittehad (AKTI), told Arab News on Friday.
“Amid high inflation and slow business activities, traders are struggling to survive and they can’t afford another burden of taxes.”
To deal with the situation, the FBR has appointed Muhammad Naeem Mir, chairman of the All Pakistan Anjuman-e-Tajran’s Supreme Council, chief coordinator of the Tajir Dost Scheme.
Naeem, who has not yet taken the charge, said he would analyze and discuss the strategy with FBR officials next week.
“From Monday onwards, we will draw strategy and work on the scheme after discussing and getting know-how of it from FBR officials,” he told Arab News.
Naeem denied any resistance from traders, saying the FBR had not run a comprehensive campaign to introduce the scheme, but people were “voluntarily registering themselves.”
Under the scheme, the FBR has notified registration of retailers in six major cities, including Karachi, Islamabad, Lahore, Peshawar, Rawalpindi and Quetta. The tax agency expects around Rs100 billion revenue by imposing advance tax in these cities from the July this year, according to FBR officials.
If the FBR successfully implemented the scheme by bringing about 3 million more taxpayers in the net, the overall active taxpayers would increase to more than 7 million from the existing 4 million in Pakistan.
At least 20 killed as bus plunges into gorge in northern Pakistan
- The bus, which carried 42 passengers, was en route to Rawalpindi from Hunza
- Road accidents are common in Pakistan, where traffic rules are rarely followed
KHAPLU, GILGIT-BALTISTAN: At least 20 people were killed and over a dozen others were injured after a bus plunged into a gorge in Pakistan’s northern Gilgit-Baltistan (GB) region, officials said on Friday.
The passenger bus was en route to the garrison city of Rawalpindi from Hunza when it plunged into a 300-meter-deep ravine near the Gunar Farm area in GB’s Diamer district, according to Sardar Sheheryar Khan, senior superintendent of police (SSP).
Rescue 1122, police and paramilitary Frontier Constabulary and GB Scouts immediately reached the site and shifted all bodies and injured persons to the Regional Headquarters Hospital in Chilas.
“Soon after the accident, announcements were made from loudspeakers of mosques and local people rushed to the site and joined hands with the administration for the rescue,” Khan told Arab News.
“Dozens of locals are at the hospital for blood donation. Emergency has been imposed at the hospital and all doctors and paramedical staff are busy treating the injured.”
The driver lost control of the bus, which carried 42 passengers, while navigating a curve and it fell into the ravine, according to officials.
“Among the five critically injured, two were shifted to Gilgit via road and three others will be airlifted by army helicopter soon,” Fiaz Ahmad, the Diamer deputy commissioner told reporters.
“Best treatment was being given to injured,” he added.
Prime Minister Shehbaz Sharif expressed regret over the loss of precious lives in the accident. “The prime minister issued directives to provide all possible medical aid to the injured,” Sharif’s office said in a statement.
Interior Minister Mohsin Naqvi extended his condolences to the families of the deceased. “We equally share the sorrow of the bereaved families in this hour of grief,” he said in a statement.
Road accidents are common in Pakistan, where traffic rules are rarely followed and roads, particularly in many rural areas, are in poor condition. In the mountainous Gilgit-Baltistan region, road tragedies are daily news.
In July 2023 alone, at least 41 people, including tourists, were killed in road mishaps across the region, according to rescue officials. In 2022, at least 77 people died and 467 were wounded in accidents in GB.
