ISLAMABAD: Prime Minister Shehbaz Sharif on Friday welcomed more than 400 delegates from 60 countries who are currently visiting the country’s southern port city of Karachi to attend the 4th International Textile Exhibition (TEXPO), a statement from the Prime Minister’s Office said.
Pakistan’s textile and clothing industry plays a vital role in sustaining its economy since it accounts for more than 60 percent of the country’s total exports. According to Statista, a market and consumer data platform, the South Asian country was among the top 10 global textile exporters in 2021 with a value of about $9 billion.
Owing to an ongoing economic turmoil amid energy shortages and a major balance of payments crisis, however, the country has witnessed a gradual decline in its textile exports since last October, according to the Pakistan Textile Mills Association (APTMA).
The government has arranged several international exhibitions in this context to once again boost the textile exports, including TEXPO 2023, which is taking place in southern Karachi port city from May 26 to May 28.
Pakistan also hosted the Textile Asia Exhibition in March, which witnessed the participation of eight countries.
“Prime Minister Shehbaz Sharif on Friday stressed the country’s exporters to come up with innovative and unique ideas to boost exports which would ultimately help the country earn valuable foreign exchanges,” said the PM Office in the statement.
“Welcoming the foreign delegates, the PM said he was happy to learn that over 400 foreign delegates from 60 countries were visiting on the occasion, [showing that] Pakistan was a valuable destination for foreign guests, buyers, and traders.”
Addressing a ceremony at the TEXPO, the premier pointed out that despite financial challenges and other difficulties, the government was committed to providing genuine support to all the export sectors, including textile, leather and sports, to help increase the country’s commercial potential.
“I have no doubt in mind that we can still recover from these setbacks and … excel in our exports,” he said.
The PM also appreciated local industrialists, exporters and experts, saying they had contributed immensely to promoting Pakistan’s textile and leather exports.
Over 400 delegates from 60 countries visit Pakistan for international textile exhibition
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Over 400 delegates from 60 countries visit Pakistan for international textile exhibition
- PM Sharif asks exporters to come up with innovative and unique ideas to enhance Pakistan’s commercial potential
- Pakistan was among the top 10 global textile exporters until 2021, but the sector witnessed slowdown more recently
Pakistan to present budget today for next fiscal year as economy continues to melt down
- The South Asian country is facing an acute balance-of-payment crisis, currency devaluation and inflation at record 38 percent
- On Thursday, Finmin Ishaq Dar said the outgoing year was ‘a difficult year for economy’ and posed ‘extreme challenges’
ISLAMABAD: Pakistani finance authorities will present on Friday federal budget for the next fiscal year 2023-24, the state media reported, as the South Asian country is likely to post a Gross Domestic Product (GDP) growth of 0.29 percent in the fiscal year ending June 30.
Pakistan missed the GDP target by a huge 4.7 percent this fiscal year, which is well below the target of 5 percent set last year, according to the country’s economic survey that highlights the trend of macro-economic indicators, development policies and strategies as well as sectoral achievements of the economy.
The cash-strapped country is due to present its budget at a time when it is in desperate need of bailout funds from the International Monetary Fund (IMF) to shore up its foreign currency reserves that are barely enough to cover a month’s imports.
“Finance Minister Ishaq Dar will present the budget in the National Assembly scheduled to meet at four in the evening at the parliament house in Islamabad,” the state-run Radio Pakistan broadcaster reported on Friday.
At a pre-budget presser on Thursday, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.
“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.
“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”
Islamabad has been hoping to have $1.1 billion of the funds released since November, but the IMF has insisted on a number of conditions being met before it makes any more disbursements.
On Thursday, an IMF official said Pakistan had to satisfy the lender on three counts, starting with a budget due on Friday, before its board reviews whether to release at least some of the $2.5 billion still pending under the $6.5 billion program expiring on June 30.
“As communicated to the authorities, there can be one remaining Board meeting under the current EFF at end-June,” Perez Ruiz said in an email response to Reuters.
“To pave the way for a final review under the current EFF, it is essential to restore the proper functioning of the FX market, pass a FY24 Budget consistent with program objectives, and secure firm and credible financing commitments to close the $6 billion gap ahead of the Board.”
The IMF had tasked Pakistan with securing external financing commitments for $6 billion from other sources, but so far it has only obtained commitments for $4 billion, mostly from Saudi Arabia and the United Arab Emirates.
Under pressure to shift to a more market-determined exchange rate regime and shut down an unofficial currency market, Pakistan removed daily limits on fluctuations earlier this year.
The country is already reeling from an economic crisis with inflation reaching a record 37.97 percent in May.
The government has imposed taxes, raised energy tariffs and scaled back subsidies in an attempt to persuade the IMF to unlock funding, while its central bank has also raised policy interest rates to a record 21 percent.
The IMF has so far conducted just eight of the 11 reviews that were to take place during the three-year program. The last review took place in August last year.
Saudi Arabia, UAE absorbed 77.5% of Pakistani expat workers in 2022 — economic survey
- More than 96% of Pakistani registered workers for overseas employment were in Gulf Cooperation Council countries in 2022
- As of December 2022, over 12.4 million Pakistanis used official procedures to travel abroad for employment in over 50 countries
KARACHI: Saudi Arabia and the United Arab Emirates alone absorbed more than 77.5 percent of total 829,549 Pakistani expat workers in 2022, according to the Pakistan Economic Survey 2022-23 released on Thursday.
The yearly flagship publication of the Ministry of Finance highlights the trend of macro-economic indicators and development policies and strategies, as well as sectoral achievements of the economy.
The survey revealed that as of December 2022, more than 12.4 million Pakistanis had used official procedures to travel abroad for employment in over 50 countries including 829,549 Pakistani who travel in 2022.
“More than 96 percent of Pakistani registered workers for overseas employment are in Gulf Cooperation Council (GCC) countries, especially Saudi Arabia and the United Arab Emirates,” the economic survey said.
“They are contributing to the development of Pakistan’s economy by sending remittances, which is the major source of foreign exchange after exports.”
Citing data from the Bureau of Emigration and Overseas Employment (BE&OE), the economic survey said more than 62 percent, or 514,725 Pakistanis workers, moved to Saudi Arabia followed by UAE, at 15.5 percent, to earn their livelihoods in 2022.
“Oman provided jobs to 82,380 or 9.9 percent and Qatar accommodated 57,984 or 7 percent Pakistani workers of different occupations,” the survey report said.
“Bahrain and Malaysia welcomed 13652 or 1.6 percent workers, and 6175 or 0.7 percent workers, respectively.”
The regional breakdown of those who traveled abroad during 2022 showed the highest number from Punjab (458, 241) followed by Khyber Pakhtunkhwa (224,88) and Sindh (59,067).
The survey said Pakistan had developed a comprehensive diversification strategy developed for five top priority countries including Saudi Arabia, UAE, Malaysia, Qatar and Oman along with five potential and non-traditional countries such as Kuwait, South Korea, Japan, Germany and China to promote the export of manpower.
Pakistan wins seat on UN Economic and Social Council
- Pakistan has in the past served ten times on the economic and social work body
- It has served as the body’s president in 1952, 1957, 1975, 1995, 2005 and 2020
ISLAMABAD: Pakistan was on Thursday elected to the United Nation's Economic and Social Council (ECOSOC) for a three-year term beginning January 1, 2024, state-run APP reported on Thursday.
The Economic and Social Council, under the overall authority of the UN General Assembly, coordinates the economic and social work of the UN and the UN family of organizations. The ECOSOC is responsible for promoting higher standards of living, full employment, and economic and social progress, identifying solutions to international economic, social and health problems, facilitating international cultural and educational cooperation, and encouraging universal respect for human rights and fundamental freedoms.
Ambassador Munir Akram, Pakistan’s permanent representative to the UN, said Pakistan’s election to the body was a recognition of “our positive role in international diplomacy.”
In balloting in the 193-member General Assembly, Pakistan received 129 votes. A two-third majority – 124 votes – was required for election.
“We’re very gratified at Pakistan’s success in an highly contested election. Our success is a recognition of Pakistan’s importance and its positive role in international diplomacy,” Akram said.
“We hope to play yet once again our active role in the forum of ECOSOC by fostering agreement on the structure and content of new, more dynamic and equitable structure of international economic cooperation.”
Others elected on the Asian seats are: Japan (127 votes) and Nepal (145 votes). Iraq, with 50 votes, and Tajikistan, with 120 votes, did not make it.
Pakistan has in the past served on the ECOSOC 10 times, and in the capacity as the 54-member body’s President six times in 1952, 1957, 1975, 1995, 2005 and 2020.
Pakistan says has ‘full trust’ in UAE’s Al-Jaber as COP28 president
- UAE, a major OPEC oil exporter, will be second Arab state to host the climate conference after Egypt in 2022
- Pakistan says the UAE had over the years demonstrated “strong commitment” to renewable energy sources
ISLAMABAD: Pakistan’s foreign office said on Thursday it had “full trust” in the nomination of Sultan Ahmed Al-Jaber, the UAE’s climate envoy and minister of industry and technology, as president of this year’s UN climate conference, COP28.
Al-Jaber's appointment to lead the climate summit this year fuelled activists' worries that big industry was hijacking the world's response to the global warming crisis.
The UAE, a major OPEC oil exporter, will be the second Arab state to host the climate conference after Egypt in 2022.
The UAE and other Gulf energy producers have called for a realistic energy transition in which hydrocarbons would keep a role in energy security while making commitments to decarbonisation.
“Pakistan has full trust that under the stewardship of H.E. Sultan Ahmed Al Jaber as President of COP28, we will be able to drive the global agenda on climate change in a positive direction decisively in December 2023,” the foreign office said.
“Pakistan believes that the United Arab Emirates’ Presidency of COP-28 is an opportunity for meaningful progress and effective global action on key areas to mitigate and reverse the negative impacts of climate change.”
The foreign office said the UAE had over the years demonstrated a “strong commitment” to renewable energy sources, such as solar and wind power, and through initiatives like the Masdar City project, the Abu Dhabi Clean Energy Strategy, the UAE Net Zero by 2050, and clean fossil fuels, the Emirates had made “substantial investments” in leading global efforts for achieving the goal and targets of the United Nations Framework Convention on Climate Change and its Paris Agreement.
The UAE has also manifested its commitment towards combating climate change by implementing several sustainable initiatives to mitigate climate change effects.
“For instance, the Mohammed bin Rashid Al Maktoum Solar Park, one of the largest renewable energy projects globally, contributes to reducing carbon emissions,” the foreign office added.
“The UAE has also invested in sustainable agriculture, water conservation, and waste management, demonstrating a comprehensive approach to addressing various aspects of the climate crisis.”
Pakistan said UAE’s strategic location allowed it to play a key role in addressing climate change by serving as “a bridge between the global north and global south in fostering international cooperation, knowledge sharing, and innovation to find common solutions.”
Pakistan set for 0.29% GDP growth in FY23, well below target of 5%
- Finance minister says 0.29% GDP growth a “realistic achievement,” anything higher not achievable
- Fiscal deficit 4.6% of GDP for fiscal year up until April, slight improvement from last year’s 4.9 percent
KARACHI: Pakistan has missed its Gross Domestic Product (GDP) target by 4.7 percent and is likely to post GDP growth of 0.29 percent in the fiscal year ending June 2023, well below the target of 5 percent set last year, according to the country's economic survey launched on Thursday.
This was revealed as Pakistani Finance Minister Ishaq Dar presented the Pakistan Economic Survey 2022-23, a yearly flagship publication of the Ministry of Finance which highlights the trend of macro-economic indicators and development policies and strategies, as well as sectoral achievements of the economy.
Dar will present the annual budget document before parliament tomorrow, Friday.
Addressing a press conference, Dar called the outgoing year “a difficult year for the economy,” saying the coalition government faced “extreme challenges” when it came to power in April 2022.
Indeed, the country’s economy has suffered record high inflation and an economic slowdown compounded by devastating floods last year and a failure so far to unlock crucial finances from the International Monetary Fund. The IMF had demanded a number of prior actions from Pakistan, including reversing subsidies, a hike in energy and fuel prices, jacking up its key policy rate, a market-based exchange rate, arranging for external financing and raising over 170 billion rupees ($613 million) in new taxation.
The fiscal adjustments have already fuelled Pakistan's highest ever inflation, which hit 37.97% year-on-year in May, but the IMF has yet to release the $1.1 billion funding stalled since November as part of the $6.5 billion Extended Fund Facility agreed in 2019.
“Pakistan has paid a huge political cost of meeting IMF reforms … the structural reforms, the power reforms, gas reforms, the fiscal reforms … we had to do the pending actions,” Dar told reporters.
“For Pakistan, this political cost was worth it … The revival of this [IMF] program was important because of Pakistan’s credibility.”
Dar said he was hopeful the 9th review of the program would be concluded soon.
“The first priority is to pay off sovereign debts, then food and pharmaceutical imports,” Dar said, adding that the government had repaid $6.5 billion in international commercial loans, with $1.0 billion of that amount being in the form of international Sukuk.
The Economic Survey document said the Pakistan economy lost momentum in the first quarter of the ongoing fiscal year “due to the severe downturn in the global economy and flash floods of July-August 2022 and as a result the economy suffered from significant domestic supply disruptions.”
Pakistan estimated flood damage at Rs3.2 trillion ($14.9 billion) and loss to GDP at Rs3.3 trillion ($15.2 billion), and recorded the need for rehabilitation of damages at Rs3.5 trillion ($16.3 billion). On the international front, the prolonged Russia-Ukraine conflict had adversely affected global growth and inflation remained unexpectedly high, the document said.
The survey report revealed that agriculture sector growth remained 1.55 % as compared to 4.27% last year, industry posted negative growth at -2.94 % against 6.83% last year while manufacturing posted -3.91% against 10.86 % last year and wholesale and retail trade posted -4.46% as compared to 10.3% last year.
Average year-on-year inflation rate for the period up to May 2023 was recorded at 29.2 percent, the survey found.
In April and May, the country’s inflation hit record levels, which were also the highest in Asia.
The survey said Pakistan’s inflation had been driven by international commodity prices, global supply disruptions, flood damage to crops, currency depreciation, and political uncertainty in the country.
The fiscal deficit was 4.6 percent of GDP for the fiscal year up until April, a slight improvement from last year’s 4.9 percent, the survey showed, adding that the primary balance recorded a surplus of 99 billion Pakistani rupees.
