KARACHI: The most repetitive word in Pakistani discourse which met with international acclamation is “CPEC” (China-Pakistan Economic Corridor) but most of the people do not know exactly what they are talking about as the agreements remain shrouded in ambiguity, according to members of the business community and lawmakers.
“The PML-N government did not share the details of the CPEC agreements they signed with China, with parliament and concerned stakeholders,” Senator Syed Shibli Faraz, member of the Senate’s standing committee on planning, development and reforms which is mandated to oversee the CPEC projects, told Arab News.
Senator Faraz, who is representing Pakistan Tehreek-e-Insaf PTI in the Senate of Pakistan, said his government will make all the CPEC agreements public through parliament. “After the formation of the government we will review the projects’ agreement and decide about those which are not in the country’s interest.
“We will honor the agreement but would request friendly countries for ‘further improvement’ to create a win-win situation,” Faraz added.
The PTI, led by cricketer-turn-politician Imran Khan, who has taken over as the Prime Minister of Pakistan, has announced in his election manifesto that he will ensure local Pakistani businesses are fully involved in the implementation of the CPEC project and policy.
Pakistan’s business community has also expressed reservations about the agreement and remains uninformed.
“We are not clear about the CPEC projects because relevant agreements were not shared with us. We cannot do anything at this stage when we lack information,” said Syed Mazhar Ali Nasir, senior vice president of the Pakistan Chamber of Commerce and Industry. “We are in an unstable and uncomfortable position. What incentives will be offered to existing industries as compared with those being offered for setting up units in Special Economic Zones are some of the ambiguities that need to be clarified.”
However, Ahsan Iqbal, the former planning and development minister who spearheaded the CPEC project, negates the impression that parliament was kept in the dark. “All relevant committees of the National Assembly and Senate were on board. These committees are represented by every political party, including the PTI. I have been answering all their queries about CPEC projects,” Iqbal told Arab News.
As Senator Faraz hinted at a thorough review of CPEC agreements and the liquefied natural gas (LNG) import agreement made with Qatar, Ahsan Iqbal warned against the move.
“If you go for a project review you have signed with any foreign country, the move will jeopardize the country’s international standing and credibility. No country will sign any agreement with you in future,” Iqbal said. “The CPEC is the most scrutinized project in the history of Pakistan because scrutiny of each project was ensured, which rules out the possibility of any secrecy.”
Ahsan Iqbal is confident that “nothing will come out if projects are reviewed because everything is crystal-clear ... If they make the CPEC unnecessarily controversial it will hurt investors’ confidence,” he said.
Energy projects were set up under the country’s energy policy, which was open for all investors including the US, the Middle East, etc, but only the Chinese made use of this opportunity, Iqbal said.
The government will not be extending loans on the energy project, while those in the infrastructure sector will be extended at a rate of 2.2 percent and payable in 20 to 25 years, which means there is no burden on the country, Iqbal noted.
However, the PTI election manifesto ensures the completion of the CPEC by encouraging a shift toward partnerships for project completion. “We will utilize expertise from China to supplement domestic manufacturing capabilities and enhance yields in agriculture. We will create more opportunities to promote local value addition through joint ventures and by offering incentives for value-added exports,” the party’s election manifesto reads.
Most commonly referred to as the game changer, the CPEC is a framework of regional connectivity.
The investment made under the CPEC umbrella is estimated at $62 billion, mainly in energy and infrastructure projects in progress throughout Pakistan.
PTI government to open CPEC, Qatar LNG agreements in parliament, says Senator Shibli Faraz
PTI government to open CPEC, Qatar LNG agreements in parliament, says Senator Shibli Faraz
- CPEC and LNG import agreements are shrouded in ambiguity, says senator
- Projects review move would jeopardize country’s international standing and credibility, warns Ahsan Iqbal
Pakistan, China sign multiple MoUs focusing on flood rehabilitation, IT and development
- Agreements were signed during meeting of Chinese International Development Cooperation Agency officials with PM Sharif
- Pakistan PM commended CIDCA for its vital support during 2022 floods that killed 1,739 people, caused $30 bln losses
ISLAMABAD: Pakistan and China on Tuesday signed multiple memorandums of understanding (MoUs) that focused on flood rehabilitation, information and communication technologies, and development, Pakistani state media reported.
The agreements were signed during a meeting between a high-level delegation of the Chinese International Development Cooperation Agency (CIDCA), led by Luo Zhaohui, and Prime Minister Shehbaz Sharif in Islamabad.
The MoUs pertained to flood rehabilitation, information and communication technologies, Juncao technology to address soil erosion and desertification, and China-Pakistan Development Cooperation Planning (2024-2028).
“Welcoming the delegation, the Prime Minister said China is Pakistan’s most trusted friend and appreciated China’s steadfast support to Pakistan,” the state-run Radio Pakistan broadcaster reported.
“Acknowledging CIDCA’s pivotal role in bolstering Pakistan’s economic development, the Prime Minister specifically commended CIDCA for its vital support during the 2022 floods and for its relief, rehabilitation, and reconstruction efforts in Pakistan.”
In 2022, downpours swelled rivers and at one point flooded a third of Pakistan, killing 1,739 people. The floods also caused $30 billion in damages, from which Pakistan is still trying to rebuild.
The prime minister witnessed the signing of agreements alongside a Letter of Exchange on the establishment of a First Aid Center in Balochistan and Protocol on Cooperation in Human Resources Development under the Global Development Initiative.
“These agreements signify the deepening cooperation between Pakistan and China across various sectors,” the report read.
The meeting was also attended by China’s Ambassador to Pakistan Jiang Zaidong, members of PM Sharif’s cabinet and senior officials of Pakistan.
Beijing has been one of Islamabad’s most reliable foreign partners in recent years, readily providing financial assistance to bail out its often-struggling neighbor.
In July last year, China granted Pakistan a two-year rollover on a $2.4 billion loan, giving the debt-saddled nation much-needed breathing space as it tackled a balance-of-payments crisis.
China has inked more than two trillion dollars in contracts around the world under its Belt and Road investment scheme, with billions pouring into infrastructure projects in Pakistan.
Three militants killed, one arrested in Pakistan’s restive southwest — military
- The militants were killed in an intelligence-based operation in the Pishin district of Balochistan
- Military says one militant apprehended in injured condition was identified as an Afghan national
ISLAMABAD: Three militants were killed and another was injured in a shootout with security forces in Pakistan’s southwestern Balochistan province, the Pakistani military said on Tuesday.
The shootout took place during an intelligence-based operation in the Pishin district of Balochistan, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
The militants were killed after intense exchange of fire during the conduct of operation.
“One terrorist was apprehended in injured condition, who has been identified as an Afghan national,” the ISPR said in a statement.
“A huge cache of arms, ammunition and explosives was also recovered during the operation.”
Balochistan, which borders Afghanistan, is the site of a long-running insurgency by separatists and religiously motivated militants, who have recently carried out a number of attacks in the region.
Gunmen this month killed nine people, who hailed from the eastern Punjab province, after abducting them from a bus on a highway near the Noshki district. The outlawed Balochistan Liberation Army claimed responsibility for the attack.
Although the government says it has quelled militancy, violence by various groups has persisted in the region.
Last year, Islamabad also set a November deadline for all undocumented migrants, mostly Afghans, to leave or face arrest, forcing more than 500,000 Afghans to flee Pakistan.
Pakistan defended the crackdown by pointing to security concerns and is expected to begin a renewed push to deport more Afghan nationals in the coming weeks, according to officials.
At $306 million, Pakistan reported highest ever single-month IT exports in March — representative
- The Pakistani IT exports surged by $49 million in the last month from $257 million recorded in Feb.
- Representative calls the achievement a result of hard work of all stakeholders and favorable policies
KARACHI: Pakistan recorded highest ever single-month exports in the field of information technology (IT) in March, chairman of the country’s software houses association said on Tuesday.
The Pakistani IT exports surged by $49 million in the last month from $257 million recorded in the month of February, according to Pakistan Software Houses Association (P@SHA).
The exports, which stood at $225 million in March 2023, recorded an increase of 36 percent on a year-on-year basis.
“Crossing $300 million in a single month makes the IT industry second to only textiles in Pakistan,” Zohaib Khan, the P@SHA chairman, said in a statement.
“It is pertinent to note that IT exports for the month of March 2024 is also the highest exports of the industry in a single month in the country’s history.”
Khan said this achievement was a result of hard work of all stakeholders and favorable government policies over the past several months.
“All we need is policy continuity coupled with new initiatives vis-a-vis skills development and branding of the IT sector on a global-scale for the country’s soft-image,” he said, urging the country’s finance and revenue authorities to give due consideration and incorporation to their budgetary proposals that had already been submitted at concerned forums.
The P@SHA Chief reiterated the IT industry would fully support the initiatives of the Pakistani IT ministry in achieving the export target of $3.5 billion for the outgoing fiscal year, which ends in June.
“We should aim for $5 billion for the forthcoming fiscal year, i.e. FY25,” he added.
PepsiCo. reports double-digit revenue growth in Pakistan, China and other nations
- The company reported better-than-expected revenue in first quarter on strong demand for snacks, beverages
- PepsiCo. has leaned heavily into price increases over the past two years to combat higher ingredient costs
PepsiCo. reported better-than-expected revenue in the first quarter on strong international demand for its snacks and beverages.
The Purchase, New York-based company said revenue rose 2 percent to $18.3 billion for the January-April period. That was higher than the $18 billion Wall Street forecast, according to analysts polled by FactSet.
Pepsi reaffirmed its financial guidance for 2024, including organic revenue growth of 4 percent. The company has said it expects to return to more normal rates of growth this year after several years of inflation-driven price increases.
That may have disappointed investors who have grown used to stronger growth at PepsiCo. Last year organic revenue grew 9.5 percent, for example. PepsiCo’s shares fell more than 2.5 percent in morning trading Tuesday.
In North America Frito-Lay revenue rose 2 percent while Pepsi beverage sales were up 1 percent. Sales were hurt by a recall early in the quarter of Quaker Oats cereal, bars and snacks because of potential contamination with salmonella. Quaker Foods sales dropped 24 percent during the quarter.
But the company saw 11 percent sales growth in Asia Pacific and 10 percent sales growth in Europe.
PepsiCo. Chairman and CEO Ramon Laguarta said the company is optimistic that consumer demand will continue to rise this year in the US and elsewhere.
“The consumer, globally, we think is very resilient,” Laguarta said during a conference call with investors. “It’s basically supported by two facts: very low unemployment or quite low unemployment globally and wages growing at a good pace in the majority of the countries where we participate.”
In Europe, sales were driven by demand in Eastern Europe, Laguarta said. In Western Europe, consumers saw fewer PepsiCo. snacks and drinks on grocery shelves during the quarter. Carrefour, one of Europe’s largest supermarket chains, announced in January that it was pulling PepsiCo. products from stores in France, Belgium, Spain and Italy due to unacceptable price increases. The two companies resolved their pricing dispute and Carrefour began restocking PepsiCo. products in early April.
The company said it also saw double-digit organic revenue growth in Mexico, Brazil, Egypt, Pakistan, China and Australia.
But Laguarta added a note of caution. Consumer spending in China remains cautious, he said, and PepsiCo. is also keeping a close eye on lower-income consumers in the US, who are buying fewer snacks or switching to store brands in the face of higher prices.
“The lower-income consumer in the US is stretched,” he said. “That’s a consumer that we are emphasizing in our commercial programs and we are learning how best to keep that consumer in our categories.”
PepsiCo. has leaned heavily into price increases over the past two years to combat higher ingredient costs. The fourth quarter of 2023 was the company’s eighth straight quarter of double-digit percentage price increases.
Those increases moderated in the first quarter. PepsiCo. said net pricing was up 5 percent globally during the quarter, while volumes fell 2 percent. PepsiCo. has said some of that volume decline is strategic. The company has been shrinking package sizes to meet consumer demand for convenience and portion control.
PepsiCo. said its net earnings rose 5.6 percent to $2 billion in the first quarter. Excluding special items, the company earned $1.61 per share. That beat Wall Street’s forecast of $1.52.
Pakistani families urge President Raisi to release cargo crew detained in Iran
- Jalal Ahmed, the cargo boat captain, was on his way from Dubai to Somalia when he was caught by Iran four years ago
- The families of detained Pakistanis say they have not been informed of the charges against Ahmed, others on the boat
KARACHI: Families of Pakistani crew members aboard a cargo boat, which set sail from Dubai to Somalia but was detained by Iran four years ago, appealed to Iranian President Ebrahim Raisi on Tuesday for their release, citing a lack of cooperation from Iranian authorities.
Raisi, who arrived in Pakistan on Monday for a three-day visit, flew to Karachi today after a brief stopover in Lahore. During his stay in Karachi, the Iranian president is slated to meet with government officials and businessmen.
The family of Jalal Ahmed, the captain of the cargo boat, along with others, staged a demonstration in front of the Karachi Press Club to highlight the difficulties they have faced in securing the release of their loved ones, who have been incarcerated in Iran’s Minab city for the past four years.
“We have come here because my brother is imprisoned in the city of Minab in Iran,” Gul Saba, Ahmed’s sister, told Arab News while urging Pakistan’s President Asif Ali Zardari and Prime Minister Shahbaz Sharif to intervene in the matter to secure the release of the detained crew members.
“We also appeal to Iran’s President Ebrahim Raisi to release our brother and the other ten [people] who accompanied him,” she continued.
Saba added her 45-year-old brother, who has three children, was transporting cargo from Dubai to Somalia when his ship was stopped by the Iranian authorities.
She said her family members had traveled to Iran, but there had been no response from Iranian authorities.
“No statement has come [from Iranian officials] regarding why [the Pakistani crew members] have been imprisoned,” she added. “There may be no crime involved as their cargo ship was legal.”
Arab News could not independently verify the claims made by the affected family.
Jawad Jalal, Ahmed’s 10-year-old son, also participated in the protest along with his mother, Sadia Ahmed, and aunt Saba.
“When I was six, my father was imprisoned in Iran,” he said while reminiscing how Ahmed escorted him to school before being detained.
“He should be released so he can drop me off at school once again,” he continued, holding a placard emblazoned with the demand for his father’s release from Iranian prison.
