ISLAMABAD: Pakistan will cut taxes on imports of raw materials to spur manufacturing and overall economic growth, Bloomberg quoted Prime Minister Imran Khan’s trade adviser as saying on Monday.
Customs duties on input items needed by pharmaceutical, chemical, engineering and food processing industries will be reduced by 3 percent to 10 percent, Abdul Razzak Dawood, Khan’s adviser on commerce, said in an interview to Bloomberg.
“That will help lower the import of finished goods, encourage local production and put the nation in a position to boost exports,” he said. “Pakistan had ridiculously high duties. The objective is to put Pakistan on par with other countries on trade taxes.”
Bloomberg said the proposal would be part of the federal government’s annual budget for the year starting July 1, by when it targets to achieve a growth rate of 4.8 percent. The nation forecast growth to be 3.9 percent this year after a rare contraction last year. The new budget is scheduled to be presented in the lower house of the parliament on June 11.
“Paring import taxes will be a huge policy shift for Pakistan, given more than 40 percent of its total tax revenue is generated from levies on inbound shipments,” Bloomberg said. “Khan’s government is seeking to end the nation’s reliance in recent years on foreign loans and bailouts, and instead boost industrial productivity and the share of exports in the economy.”
To that end, the administration will extend concessional long-term financing for exports and working capital financing to businesses in the next fiscal year, Dawood told the American publication.
The nation’s exports haven’t grown significantly in the past decade, averaging $23 billion annually. For the next financial year, the government hopes it will be higher than $25 billion.
Pakistan to cut taxes on imports of raw materials to boost growth
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Pakistan to cut taxes on imports of raw materials to boost growth
- Customs duties on input items needed by pharmaceutical, chemical, engineering, food processing industries to be reduced by 3 percent to 10 percent
- Proposal to be part of federal government’s annual budget for year starting July 1 by when it targets to achieve growth rate of 4.8 percent
CM Bugti promises ‘good governance’ as 14-member cabinet takes oath in Pakistan’s Balochistan
- Development came more than two months after Balochistan elected its representatives in Feb. 8 national polls
- CM Sarfraz Bugti says the formation of the cabinet took time due to consultation with all coalition partners
ISLAMABAD: Balochistan Chief Minister Sarfraz Bugti on Friday promised “good governance” and provision of maximum relief to public as his 14-member cabinet took oath in the southwestern Pakistani province, Pakistani state media reported.
The cabinet members were sworn in at a ceremony held at the Governor House in the provincial capital of Quetta, where Governor Malik Abdul Wali Kakar administered the oath to them.
The development came more than two months after Balochistan elected its representatives in the national election that was held on February 8, this year.
Bugti said the formation of the cabinet took time due to consultation with all coalition partners, the state-run APP news agency reported.
“Balochistan was facing many challenges, including terrorism,” he was quoted as saying in the report. “Providing maximum relief to the public and strengthening good governance were key priorities for the provincial government.”
Balochistan is the site of a long-running insurgency by separatist 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 the insurgency, violence by groups demanding independence from the central government has persisted in the province.
Pakistan says will continue ‘constructive engagement’ with Riyadh to enhance economic, strategic partnership
- Saudi foreign minister visited Islamabad this week to discuss investments
- Saudi deputy defense minister is also currently visiting Pakistani capital
ISLAMABAD: Pakistan’s foreign office said on Friday the South Asian country would continue its “constructive engagement” with the Kingdom of Saudi Arabia to enhance economic and strategic partnerships between the longtime allies.
Saudi Foreign Minister Faisal bin Farhan Al Saud came to Islamabad on a two-day visit this week aimed at strengthening bilateral economic cooperation and pushing forward previously agreed investment deals. Pakistan has said it pitched investment projects worth$30 billion to Riyadh during Prince Faisal’s visit.
The Saudi official’s visit followed a meeting in Makkah between Prime Minister Shehbaz Sharif and Saudi Crown Prince Mohammed bin Salman in which the Kingdom had pledged to expedite $5 billion in investments.
“We will continue our constructive engagement with the Kingdom of Saudi Arabia to enhance our economic and strategic partnership,” foreign office spokesperson Mumtaz Zahra Baloch said at a weekly briefing, giving details of Prince Faisal’s visit, whose purpose she said “was to accelerate discussions on enhanced bilateral economic cooperation in the follow up of the understandings reached between Prime Minister of Pakistan Muhammad Shehbaz Sharif and Crown Prince and Prime Minister of the Kingdom of Saudi Arabia His Royal Highness Mohammed bin Salman.”
At a ‘Saudi Arabia-Pakistan Investment Conference’ co-chaired by the two foreign ministers in Islamabad, the two sides discussed investment proposals in diverse sectors such as energy, mining, agriculture, information technology, construction, human resource development and exports, Baloch said, adding that the investment conference was aimed at paving the way for Saudi investments in Pakistan.
“The Foreign Ministers of Pakistan and Saudi Arabia discussed global and regional developments,” Baloch added.
“There was unanimity of views on the increasing instability in the region. The two Foreign Ministers urged de-escalation and called for an immediate ceasefire, lifting of the siege of Gaza and access to unimpeded humanitarian aid for the besieged people of Gaza.”
The spokesperson said Pakistan was “deeply disappointed” at the result of last night’s debate at the United Nation Security Council and its inability to reach consensus and recommend Palestine’s membership of the UN to the General Assembly.
“We regret the US decision to veto the draft resolution granting full membership of the UN to Palestine,” Baloch said.
Rohit says India-Pakistan Test cricket would be ‘awesome’
- South Asian neighbors are bitter political adversaries, have not faced off in Test since 2007
- They play only occasionally in shorter versions of game usually on neutral territory
NEW DELHI: India captain Rohit Sharma has thrown his support behind any resumption of Test cricket against arch-rivals Pakistan, saying it would be “awesome.”
The South Asian neighbors are bitter political adversaries and have fought three wars against each other since they were partitioned at the end of British colonial rule in 1947.
Their cricket teams have not faced off in a Test since 2007. Instead they play only occasionally in the shorter versions of the game and usually on neutral territory in international tournaments.
Rohit appeared Thursday on a YouTube chat show hosted by former captains Adam Gilchrist of Australia and Michael Vaughan of England.
Asked by Vaughan if playing Pakistan in a Test series would be beneficial for the five-day game, Rohit said: “I totally believe that.”
“They are a good team, superb bowling line-up, good contest. Especially if you play in overseas conditions, that will be awesome,” added the 36-year-old.
“I would love to. It would be a great contest between two sides... so why not?“
Australia has said it would be prepared to host a series between the rivals.
India and Pakistan have not faced each other on either side’s soil in a bilateral series since 2012.
India last year refused to travel to Pakistan for the white-ball Asia Cup, prompting part of the tournament to be staged in Sri Lanka.
They last met at the 50-over World Cup in India in October.
Pakistan aims to agree outline of new IMF loan in May — finance minister
- Current $3 billion arrangement with IMF runs out in late April
- Pakistan is seeking longer and bigger loan of at least $6 billion
WASHINGTON: Pakistan hopes to agree the contours of a new International Monetary Fund loan in May, Finance Minister Muhammad Aurangzeb told Reuters, and has kicked off talks with ratings agencies to lay the groundwork for a return to international debt markets.
The country’s current $3 billion arrangement with the fund runs out in late April and the government is seeking a longer and bigger loan to help bring permanence to macroeconomic stability as well as an umbrella under which the country can execute much needed structural reforms, the minister said.
“We expect the IMF mission to be in Islamabad around the middle of May — and that is when some of these contours will start developing,” said Aurangzeb, who met with the Fund’s Managing Director Kristalina Georgieva on Wednesday during the International Monetary Fund and World Bank Spring Meetings.
He declined to outline what size program the government hoped to secure, though Pakistan is expected to seek at least $6 billion. Aurangzeb added that once the IMF loan was agreed, Pakistan would also request additional financing from the Fund under the Resilience and Sustainability Trust.
The struggling South Asian nation had managed to accumulate foreign exchange reserves in recent months and was on track for its war chest to hit $10 billion — or roughly two months import cover — by end-June.
The debt situation also looked more benign, Aurangzeb said.
“The bulk of our bilateral debt — including our China debt — is being rolled over, so in that sense I think we are in good shape and I don’t see a big issue during this fiscal year nor next fiscal year, cause we need to repay roughly $25 billion dollars every fiscal year.”
Pakistan also hopes to come back to international capital markets, possibly with a green bond. However, there was some more work to be done before that happens, said Aurangzeb.
“We have to come back into a certain ratings environment,” he said, having kicked off talks with ratings agencies, adding the government was hoping to get an improvement in its sovereign rating in the next fiscal year.
“In all likelihood, any international capital markets issuance will likely be in the 2025/2026 fiscal year.”
Five Japanese workers narrowly escape suicide attack in Karachi, guard killed
- Van attacked while heading to industrial area where the Japanese nationals worked at Pakistan Suzuki Motors
- Insurgents have recently targeted Chinese working on projects relating to China-Pakistan Economic Corridor
KARACHI: Five Japanese workers narrowly escaped on Friday after a suicide attack killed their security guard in the southern Pakistani city of Karachi, police said.
The Japanese nationals were traveling in a Hiace van to an industrial area, where they worked at Pakistan Suzuki Motors, when the suicide bomber detonated his explosive-laden vest near the van, according to local police chief Arshad Awan.
Police escorting the vehicle returned fire after coming under attack, killing an accomplice of the suicide bomber whose remains were found from the scene of the attack, he added.
“All the Japanese who were the target of the attack are safe,” Awan told media.
Two security guards and a bystander were wounded in the attack, according to police. One of the security guards, Noor Muhammad, later succumbed to his injuries.
“Noor Mohammad had been working in this company for more than two years,” Muhammad’s brother Rahib Ali told reporters outside the Jinnah hospital.
“The deceased had only one child who was born a few days ago. Noor Mohammad did not even visit home on Eid.”
Television footage on local news channels widely showed a damaged van, as police officers arrived at the scene of the attack. Awan said the three passersby who were wounded in the attack were in stable condition at a hospital.
Police were escorting the van after receiving reports about possible attacks on foreigners who are working in Pakistan on various Chinese-funded and other projects, said Tariq Mastoi, a senior police officer. He said a timely and quick response from the guards and police foiled the attack and both attackers were killed.
Prime Minister Shehbaz Sharif condemned the incident, according to a statement posted on X.
“Timely action by the police saved us from any major loss of life,” he said. “We will not rest until terrorism has been completely eradicated. We will thwart every nefarious act of disturbing the law and order situation.”
Murad Ali Shah, the chief minister of Sindh, of which Karachi is the provincial capital, directed the inspector general to submit a report after investigating the attack, including details on who the attackers were, where they came from, any information on their facilitators and details of explosives used in the blast.
He directed that immediate arrangements be made for the security of all foreigners in the province.
“Anti-national elements want to disrupt law and order, which will not be allowed at any cost,” the CM said, praising what he called timely action of the police in thwarting the attack.
No one immediately claimed responsibility, but suspicion is likely to fall on a small separatist group or the Pakistani Taliban who have stepped up attacks on security forces.
In recent weeks, insurgents have also targeted Chinese who are working in Pakistan on projects relating to the China-Pakistan Economic Corridor, which includes a multitude of megaprojects such as road construction, power plants and agriculture.
In March, five Chinese nationals and their Pakistani driver were killed when a suicide bomber in northwest Pakistan rammed his explosive-laden car into a vehicle when they were heading to the Dasu Dam, the biggest hydropower project in Pakistan, where they worked.
However, Japanese working in Pakistan have not been the target of any such attacks.
- With inputs from AP
