EU calls for ‘transparency’ in CPEC economic zones to attract European investment 

European Union’s ambassador to Pakistan, Androulla Kaminara, speaks to Arab News in Islamabad, Pakistan, on March 5, 2021. (AN Photo by Aamir Saeed)
Short Url
Updated 09 March 2021
Follow

EU calls for ‘transparency’ in CPEC economic zones to attract European investment 

  • In wide ranging interview with Arab News, EU ambassador says Pakistan must limit number of crimes carrying death penalty as part of obligations under GSP-Plus status
  • The ambassador urges Pakistani government to enact legislation on enforced disappearances and ensure the wellbeing of journalists and rights workers 

ISLAMABAD: The European Union’s ambassador in Pakistan has said Islamabad should ensure implementation of labor laws in special economic zones being set up under the China-Pakistan Economic Corridor so that European businesses would also come forward to invest in the $60 billion agreement with Beijing to build energy and infrastructure projects. 
Western officials have repeatedly criticized CPEC, saying the project is not sufficiently transparent and will saddle Pakistan with the burden of expensive Chinese loans. 
“Any investment to a country that can lead to jobs is a good thing,” Androulla Kaminara, ambassador of the EU to Pakistan, told Arab News in a wide-ranging interview last week. “What we want to ensure is that there isn’t a backtracking of the rights of the workers or environmental protection in specific economic zones.” 
The ambassador said the EU would want transparency, predictability and information about the laws and to see how long tax breaks would be applicable in the strategic economic zone so that European companies could also invest in Pakistan. 
“More transparency and more predictability on these types of things will attract investments here,” she said. 

Kaminara said the European Union had urged the Pakistan government to limit the number of crimes that carried the death penalty as part of its obligations under the GSP-Plus status that has helped the country boost its exports from 4.5 billion euros in 2014 to 7.5 billion euros last year.
The Inter­national Trade (INTA) Com­mittee of EU Parliament last year extended the Genera­lized System of Preferences-Plus (GSP-Plus) status granted to Pakistan in 2014 which enables the country to enjoy preferential duties on exports for the next two years. The EU’s GSP removes import duties from products coming into the EU market from vulnerable developing countries to help them alleviate poverty and create jobs. 
“Under the GSP-plus obligation, Pakistan should limit the number of crimes that lead to the death penalty,” Kaminara said, adding that the EU would convince countries to eliminate the death penalty, but under the GSP-Plus regime, UN conventions mandated in the very least limiting the number of crimes leading to the death sentence. 

Pakistan has 33 crimes that carry the death penalty and over 4,000 people on death row. “So obviously we would like to see some addressing of this issue,” Kaminara said, adding: “We don’t prescribe as to where the death penalty should be.” 
Pakistan’s GSP-Plus status has been extended till 2022, but the country has to ensure tangible improvement in its human rights and labor laws’ record to keep enjoying the preferential incentives. 
The EU accounts for at least 33 percent of Pakistan’s total global exports, composed mainly of textile and leather products. The EU published its last report on Pakistan’s progress on the 27 UN conventions in February 2020, citing “mixed progress.” 
Under the obligations, Pakistan is required to enact legislation on enforced disappearances, the wellbeing of journalists, appoint human rights commissioners and provide a conducive working environment to aid workers and civil society. 
“One of our concerns is the bill for protection of journalists [which] has not been actually tabled though we understand that this bill has been drafted,” Kaminara said. 
The ambassador lauded a recent Supreme Court judgment barring the death penalty for at least three inmates with mental disorders. 
“I have to note that most of these people on death row are not there on the basis of terrorist charges which is of course of particular concern to Pakistan, but for other types of crimes we won’t expect to lead to the death sentence,” she said. 
The EU has also been working with the Pakistani judiciary to improve access to justice, manage caseloads and ensure swift delivery of justice to litigants. Under the program, the Pakistani chief justice would undertake study visits to European countries for training, exchange of knowledge and experiences. 
“It’s a peer to peer knowledge transfer [program]” she said. 
The EU is spending around 100 million euros annually in Pakistan under its development cooperation program to train and enhance the capacity of the police to collect evidence and curb sexual violence against women. It is also financing a forensic laboratory in Lahore to upgrade its equipment to ensure that evidence is not lost, the ambassador said.
“The evidence is properly handled that can help the judiciary prosecute in certain cases rather than fingerprints being lost, and other evidence not being properly handled, therefore not leading to convictions,” Kaminara said. 

The ambassador said the EU was launching a 90 million euro program for business development at the local level in Khyber Pakhtunkhwa, Balochistan and Sindh to help women entrepreneurs and small and medium enterprises. 
“We are working actively with the business community in Pakistan to see what opportunities exist and what potential impediments exist for them to export in the EU,” she said. “This country has quite a lot of talent, not just in men, but also in women, and if the country is to develop, you need the totality of the talent to be able to participate in business.”
The ambassador also acknowledged Pakistan’s performance to meet an action play by the Financial Action Task Force [FATF] so it could be removed from the global watchdog’s grey-list of countries with inadequate terror funding controls: “What we have seen and what we have recommended publicly is the progress. Huge progress was made.”


ADB highlights special focus on climate action, social equity in post-floods Pakistan

Updated 16 min 55 sec ago
Follow

ADB highlights special focus on climate action, social equity in post-floods Pakistan

  • The bank provided $180 million for climate-resilient, low-carbon municipal services in Punjab province last year
  • It also worked to increase female inclusion in agriculture sector by helping them handle pesticides and fertilizers

KARACHI: The Asian Development Bank (ADB) announced on Thursday it deployed significant resources in Pakistan last year to aid the country’s economic recovery from the devastating 2022 floods, while supporting the government in other areas, including climate change, food security and gender parity, for sustainable and inclusive development.
The Philippines-based international financial institution began its operations in December 1966 and has since been promoting economic and social development in Asian and Pacific regions. Pakistan, one of its early members, has received ADB assistance over the years and developed many urban services and social sectors with its help.
In its Annual Report 2023, the ADB highlighted different areas in which it provided assistance to Pakistan during the last year.
“ADB signed a loan of $180 million to help develop climate-resilient and low-carbon municipal services for up to 1.5 million residents in the Punjab cities of Bahawalpur and Rawalpindi,” the report said.
“For Bahawalpur, the project includes a new recycling facility, a landfill with measures to mitigate greenhouse gas emissions and leachate, and new equipment and vehicles for citywide waste collection,” it continued. “For Rawalpindi, the project will, among other deliverables, construct a water treatment plant to process 54 million liters per day and implement distribution systems to serve around 82,000 households with metered connections.”
The report said the bank also signed an emergency grant of $5 million with the authorities in Islamabad to top up its flood assistance of $475 million from 2022.
“The grant supports farming households, including those headed by women, in the most flood-impacted area of Balochistan Province,” it informed. “It provides about 60,000 households with climate-resilient rice seeds sufficient to cultivate around 54,000 hectares, and includes measures to strengthen on-farm resilience to disasters triggered by natural hazards.”
The ADB also worked to improved agricultural productivity in the flood-affected Khyber Pakhtunkhwa province while trying to bolster the inclusion of women in by providing around 28,000 of them with training on seed cleaning and storage practices as well as on the safe handling of pesticides and fertilizers.
“ADB is also working to improve conditions for Pakistani women seeking to establish or expand their own businesses, particularly access to finance without the need for credit history or collateral,” the report added.
The bank also signed a $250 million loan for power transmission strengthening in the Khyber Pakhtunkhwa and Punjab provinces to help achieve environmental sustainability and climate resilience in the country’s power sector.
“The project aims to expand the national grid and enhance grid stability to improve energy access in the country, where only 80 percent of the population has access to electricity,” it said. “Upgrades under the project are expected to help supply 2 gigawatts of additional clean peak power and avoid about 13,700 tons of greenhouse gas emissions every year.”
ADB said it also provided a $300 million policy-based loan to the country for sustainable, broad-based and inclusive economic growth by strengthening the government’s capacity to generate domestic revenues to reduce budgetary constraints and restore macroeconomic stability.
“The program will help Pakistan improve tax administration and compliance, including through digitization,” the report said. “It will also enhance public expenditure and debt management, and increase trade and investment flows.”
Additionally, the bank committed $360 million under the Central Asia Regional Economic Cooperation (CAREC) program to help upgrade 330 kilometers of the national highway in Pakistan.
“This span of roadway links Pakistan’s hinterlands to CAREC Corridor 5, a vital trading route between landlocked Central Asian countries and the ports of Gwadar and Karachi,” it explained. “By enhancing the climate and disaster resilience of the highway, ADB is helping overcome high risks of road flooding and opening up a bottleneck to regional trade.”


Pakistan’s planning minister discusses enhanced educational ties with UK delegation

Updated 25 April 2024
Follow

Pakistan’s planning minister discusses enhanced educational ties with UK delegation

  • Ahsan Iqbal proposes faculty training, research collaboration and UK campus expansions in Pakistan
  • He says UK universities should develop specialized knowledge clusters through Pakistani scholars’ expertise

ISLAMABAD: Pakistan’s planning minister Ahsan Iqbal met a delegation from the United Kingdom, said an official statement on Thursday, to discuss the possibility of fostering closer ties and enhancing collaboration between the educational institutions in both countries.
British universities are a popular destination for Pakistani students due to the quality of education and the strong historical and cultural ties between the two countries.
Many students from Pakistan go to these educational institutions on scholarships offered by various organizations, such as the British Council, UK government and universities themselves, while others fund their studies independently.
The Pakistani planning minister presented various recommendations during his meeting with the delegation led by Steve Smith, the UK government’s International Education Champion, along with officials of the British High Commission.
He proposed faculty training programs to bolster academic expertise across borders, encouraging UK universities to establish campuses in Pakistan to promote educational accessibility and harnessing the expertise of Pakistani scholars in British universities to develop specialized knowledge clusters on the country.
“Pakistan envisions a future where universities in Pakistan are categorized into the Champions League (having first-tier universities) and the National League (having second-tier universities), driving excellence and accessibility in higher education,” Iqbal said during the meeting.
He highlighted the imperative for joint research initiatives, pointing at the importance of establishing joint research groups and fostering collaborations between PhD scholars from both countries.
The visiting delegation official reaffirmed the British government’s commitment to building international partnerships in education, citing the presence of over 20,000 Pakistani students in his country and 8,000 students who are pursuing degree programs in Pakistan with UK’s financial support.
The two sides also discussed procedural issues while pointing to the need for streamlined regulations, with a particular emphasis on minimizing hurdles for universities and strengthening the link between research institutions and economic growth.
They agreed to hold further dialogue and take concrete action toward implementing the planning minister’s recommendations to further solidify the foundation for enduring academic cooperation between the two countries.


US ambassador optimistic about Pakistan-IMF talks ahead of key funding meeting on April 29

Updated 25 April 2024
Follow

US ambassador optimistic about Pakistan-IMF talks ahead of key funding meeting on April 29

  • The IMF has confirmed its executive board’s meeting to discuss the approval of $1.1 billion for Pakistan next week
  • Ambassador Blome says the IMF’s positive feedback will further encourage investors and help Pakistan’s ailing economy

ISLAMABAD: US Ambassador Donald Blome expressed optimism over the ongoing negotiations between Pakistan and the International Monetary Fund (IMF) on Wednesday, as the global lending agency confirmed its executive board meeting for April 29 to discuss the approval of $1.1 billion funding for the South Asian state.
The funding is the second and last tranche of a $3 billion standby arrangement with the IMF, which it secured last summer to avert a sovereign default and which runs out this month. Pakistan is now seeking a new long-term and larger IMF loan, with finance minister Muhammad Aurangzeb saying Islamabad could secure a staff-level agreement on the fresh program by early July.
Ambassador Blome praised the performance of the country’s economic team in a meeting with the newly elected Senate chairman, Yousaf Raza Gillani, at the Parliament House wherein he also discussed strengthening of US-Pakistan bilateral relations.
“Acknowledging the positive economic indicators of Pakistan, Ambassador Blome noted the downward trend in inflation and high dollar reserves, stating that the IMF’s positive feedback would encourage investors,” said an official statement issued after the meeting. “He highlighted the flourishing gaming industry in Pakistan and called for enhanced [US-Pakistan] cooperation in the digital sector.”
The American envoy also noted the potential for further economic cooperation between the two countries in his conversation.
Pakistan’s $350 billion economy faces a chronic balance of payment crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year — three-time more than its central bank’s foreign currency reserves.
Pakistan’s finance ministry expects the economy to grow by 2.6 percent in the current fiscal year ending June, while average inflation is projected to stand at 24 percent, down from 29.2 percent in fiscal year 2023/2024. Inflation soared to a record high of 38 percent last May.
With input from Reuters


In Rawalpindi, 77-year-old tea shop named after India’s Ludhiana is still a hit with customers

Updated 21 min 1 sec ago
Follow

In Rawalpindi, 77-year-old tea shop named after India’s Ludhiana is still a hit with customers

  • Ludhiana Tea Shop owners migrated from India’s northwestern city at the time of Partition in 1947
  • Customers say they come from far-off places to relish the taste of tea at the shop which they find unique

RAWALPINDI: At a small tea shop in Pakistan’s garrison city of Rawalpindi, Nazar Hussain pours piping hot tea from a kettle into small cups and hands them away to eager customers, many of them regulars who have been frequenting the shop for decades.
This is the scene from a typical evening at Ludhiana Tea Shop, located in the narrow streets of Rawalpindi’s old Lal Kurti area. The tea shop takes its name after the northwestern Indian city of Ludhiana, from where its owners migrated to Rawalpindi in 1947.
“My grandfather named this business in the memory of his hometown in India,” Hussain, who took charge of the shop in 1976, told Arab News, adding that he also sold dairy products and ghee.
“We are a family of milk sellers,” he said. “In India, we used to do the same. We were milk sellers and we used to own buffaloes.”
The shop has been serving tea to customers for the past 77 years. Agha Asghar Saeed, 72, is one of them and has been coming here since he was young.
“I was born here. I spent my childhood here, my youth and now my old age as well,” he told Arab News. “I’ve been having this tea since then.”
During the Muslim holy month of Ramadan, Saeed would break his fast at home but have tea at Ludhiana Tea Shop.
“I am addicted to this tea,” he explained.
But what inspires such loyalty in customers?
“You have to buy good quality milk,” Hussain said, adding that he purchased pure and organic milk for his shop that was a bit expensive. “Not everyone knows how to buy good milk.”
He maintained that most milk sellers in Pakistan did not sell pure milk, making him take several sips while buying to check the fat content.
Just like the milk, he continued, the quality of the tea leaves was also important.
The price of one cup of tea used to be around five paisas several years ago.
“Now, we sell it for Rs60 (22 cents),” he added.
The rich taste of Ludhiana Tea Shop means Muhammad Hasnain and his friends visit it every day rather than go to other tea shops in the neighborhood.
“Obviously, everybody wants a good bang for their buck,” Hasnain told Arab News. “The most important thing for anyone is that the quality should be good, and both quality and quantity are good here.”
Ludhiana Tea Shop offers customers deep-fried sweet and savory snacks, such as pakoras, samosas, jalebis and spring rolls, delectable items popularly consumed in Pakistan with tea.
Muhammad Shoaib Khan, a man in his 30s, informed he visited the shop with his friends at least a couple of times every day.
“We come on our bikes and travel for at least 1.5 kilometer on every trip,” Khan told Arab News. “It roughly adds up to 6 kilometers.”
Despite the cost of petrol, which has surged in recent times, Khan said he visited the shop for tea because it was worth it.
Hussain said he understood why customers came from far-off places just to have a cup of tea at his 77-year-old shop.
“Everyone cannot make good tea,” he said. “They don’t pour their heart in it. They lack passion. Making good tea is something that can only be done from the heart.”


Malala Yousafzai vows support for Gaza after backlash over Broadway musical

Updated 25 April 2024
Follow

Malala Yousafzai vows support for Gaza after backlash over Broadway musical

  • Yousafzai was criticized in Pakistan for co-producing a play with Hillary Clinton who supports Israel’s Gaza campaign
  • The Nobel laureate says ‘we do not need to see more dead bodies’ to understand the urgency of a ceasefire in Gaza

LAHORE: Nobel laureate Malala Yousafzai on Thursday condemned Israel and reaffirmed her support for Palestinians in Gaza, after a backlash in her native Pakistan over a Broadway musical she co-produced with former US Secretary of State Hillary Clinton.
Yousafzai, who was awarded the Nobel Peace Prize in 2014, has been condemned by some for partnering with Clinton, an outspoken supporter of Israel’s war against Hamas.
The musical, titled “Suffs,” depicts the American women’s suffrage campaign for the right to vote in the 20th century and has been playing in New York since last week.
“I want there to be no confusion about my support for the people of Gaza,” Yousafzai wrote on X, the former Twitter. “We do not need to see more dead bodies, bombed schools and starving children to understand that a ceasefire is urgent and necessary.”
She added: “I have and will continue to condemn the Israeli government for its violations of international law and war crimes.”
Pakistan has seen many fiercely emotional pro-Palestinian protests since the war in Gaza began last October.
Yousafzai’s “theatre collaboration with Hillary Clinton – who stands for America’s unequivocal support for genocide of Palestinians – is a huge blow to her credibility as a human rights activist,” popular Pakistani columnist Mehr Tarar wrote on social media platform X on Wednesday.
“I consider it utterly tragic.”
Whilst Clinton has backed a military campaign to remove Hamas and rejected demands for a ceasefire, she has also explicitly called for protections for Palestinian civilians.
Yousafzai has publicly condemned the civilian casualties and called for a ceasefire in Gaza.
The New York Times reported the 26-year-old wore a red-and-black pin to the “Suffs” premier last Thursday, signifying her support for a ceasefire.
But author and academic Nida Kirmani said on X that Yousafzai’s decision to partner with Clinton was “maddening and heartbreaking at the same time. What an utter disappointment.”
The war began with an unprecedented Hamas attack on Israel on October 7 that resulted in the deaths of around 1,170 people, according to an AFP tally of Israeli official figures. Hamas militants also abducted 250 people and Israel estimates 129 of them remain in Gaza, including 34 who the military says are dead.
Clinton served as America’s top diplomat during former president Barack Obama’s administration, which oversaw a campaign of drone strikes targeting Taliban militants in Pakistan and Afghanistan’s borderlands.
Yousafzai earned her Nobel Peace Prize after being shot in the head by the Pakistani Taliban as she pushed for girls’ education as a teenager in 2012.
However, the drone war killed and maimed scores of civilians in Yousafzai’s home region, spurring more online criticism of the youngest Nobel Laureate, who earned the prize at 17.
Yousafzai is often viewed with suspicion in Pakistan, where critics accuse her of pushing a Western feminist and liberal political agenda on the conservative country.