Pakistan expects Middle Eastern investment following inaugural food and agriculture exhibition

People attend Pakistan's first International Food and Agriculture Exhibition in Karachi on August 10, 2023. (AN photo)
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Updated 10 August 2023
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Pakistan expects Middle Eastern investment following inaugural food and agriculture exhibition

  • Representative of a Saudi company says Pakistan is ideally placed to serve the markets in the Gulf region
  • Pakistani exporters hope to get around a million-dollar business by the end of the food exhibition

KARACHI: A top Pakistani official expressed confidence on Thursday the country would get increased investment from the Middle East after inaugurating the first International Food and Agriculture Exhibition in Karachi to display the export potential of Pakistan’s agriculture sector.

Organized by the Trade Development Authority of Pakistan (TDAP), the three-day exhibition was launched by the governor of Sindh province, Kamran Tessori, at the Karachi Expo Center. The event has brought together over 200 exhibitors who have put a wide range of agriproducts and technologies on show for foreign delegates from 55 countries.

Addressing the media after the inauguration ceremony, Tessori mentioned a recent agreement signed by the United Arab Emirates (UAE) to develop the Karachi port.

“You will see in the coming days that all the gulf states will come to Pakistan and sign agreements like the UAE,” Tessori said, adding: “In the future, these agreements will be signed by governments themselves.”

UAE’s Abu Dhabi Ports signed a 50-year concession agreement with the Karachi Port Trust earlier this year to develop a bulk and general cargo terminal in the southern port city.

According to details, Pakistan is likely to see an estimated investment of $220 million over a period of 10 years under the project.

The governor said the country’s leadership had become serious about economic development for the first time in its history.

“For the first time in 75 years, the development of Pakistan’s economy has been taken seriously and there will not be any obstruction in the way,” he said.




People attend Pakistan's first International Food and Agriculture Exhibition in Karachi on August 10, 2023. (AN photo)

He maintained that he was confident the country’s exports would increase at least three times by the coming year.

Tessori said over 600 foreign delegates were attending the exhibition which reflected that investor confidence had been restored in Pakistan.

Speaking to Arab News, Sayed Mohey, a commercial manager at Jeddah-based Jahaf Group that deals with fruits and vegetables, said he was impressed by Pakistan’s export potential.

“This is my first visit to the county,” he said. “As far as the business is concerned, there is lot of potential for food stuff like fruits, vegetables, and fisheries.”

He maintained that Pakistan was ideally placed to serve the markets in gulf countries and Saudi Arabia. Mohey specifically mentioned Pakistani mangoes and citrus fruits, calling them the best in the world and saying they were suitable for consumers in the Middle East.

A Nigerian delegation also said they were visiting Pakistan while looking for the good quality food products.

“Most of the Nigerian delegates who are here today actually saw what they want and they are buying it and taking it home,” Unegbu Alexander Nwachukwu, trade and development officer at the High Commission of Pakistan in Nigeria, told Arab News.

A large number of Chinese were also present at the exhibition and looking for products either to import or export from Pakistan.

Alan Xi, an agriculture project manager at the China Machinery Engineering Corporation, said Pakistan’s agriculture sector had great potential and his company was ready to invest in the country.

“Pakistan is an agricultural country and has a big potential in the supply chain and even value-added parts,” he told Arab News. “So, as a company, we are also ready for investing in the supply chain and value addition.”

“In the future, we will not only want to supply some advanced technology to Pakistan but also like to have our own manufacturers [here],” he continued. “The manufacturer unit is from China, but made in Pakistan.”

Pakistani exporter also expressed optimism the event would help boost the country’s agriculture product exports from the country.

“Foreign visitors are coming in large numbers to the exhibition and taking great interest,” Waheed Ahmed, an exporter of fruit and vegetables, said. “I think at the end of the exhibition, Pakistani exporters will get around a million-dollar business since we have fresh fruits, vegetables, and food items.”


Pakistan working to issue domestic green sukuk bonds by December — finance minister

Updated 1 min 17 sec ago
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Pakistan working to issue domestic green sukuk bonds by December — finance minister

  • Proceeds of green bonds used to finance climate change mitigation, adaptation and environmental projects
  • According to recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Friday the Pakistan government was working to issue domestic green sukuk bonds by December 2024 to fund environmentally sustainable infrastructure projects. 

The green sukuk is a Shariah-compliant interest-free bond in which instead of interest, investors receive an agreed share of the profits generated by the pool of underlying assets, which are partially owned by investors. Proceeds of green bonds are used to finance climate change mitigation and adaptation, and environmental projects. 

“The government is working on issuing domestic green sukuk bonds by December 2024 to finance sustainable development projects,” Aurangzeb said as he delivered an online keynote speech at the UK-Pakistan Green Investment Forum, organized by the British High Commission in Pakistan. 

In his address, the finance minister emphasized Pakistan’s commitment to addressing climate change and promoting green investment opportunities, and highlighted Pakistan’s vulnerability to the adverse effects of climate change, despite its low contribution to global greenhouse gas emissions. 

According to a recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks.

Acknowledging a significant funding gap in adaptation, resilience, and mitigation projects and the need for a better portfolio of green investment projects, the minister emphasized Pakistan’s reliance on the private sector for support in this regard and highlighted the government’s efforts to enhance investor confidence in bankable green opportunities. 

He also outlined Pakistan’s plans to utilize innovative financing instruments like green sukuk to raise international climate finance. 

Pakistan ranks among the top 10 countries worldwide most affected by climate change and natural disasters.


Pakistani satellite relays first images of moon from lunar orbit

Updated 10 May 2024
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Pakistani satellite relays first images of moon from lunar orbit

  • ICUBE-Qamar was launched aboard China’s Chang’e-6 probe on May 3
  • The Chinese probe is tasked with landing on the far side of the moon

ISLAMABAD: Pakistan’s first satellite, ICUBE-Qamar (ICUBE-Q), has successfully beamed back first images of the moon, the Institute of Space Technology (IST) in Islamabad said on Friday, days after it entered the lunar orbit.
The ICUBE-Qamar satellite carries two optical cameras to image the lunar surface and weighs around 7kg. Cubesats are tiny box-shaped satellites that are mainly launched into low Earth orbit to observe the Earth, test new communications technology, or perform miniature experiments.
The satellite was launched aboard China’s Chang’e-6 probe on May 3. The Chinese probe is tasked with landing on the far side of the moon, which perpetually faces away from the Earth, after which it will retrieve and return samples. China is the first country to make such an ambitious attempt.
“Exciting news from ICUBE-Q! Our satellite has captured its first images, and they’re stunning,” IST, which contributed to the satellite’s development, wrote on X.
“Check out these shots where you can see both the moon and the sun in some of the images. Stay tuned for more updates from ICUBE-Q!“

Soon after the satellite entered the lunar orbit at 1:14pm Pakistan time on Wednesday, Dr. Khurram Khurshid, the head of the electrical engineering and computer science department at the IST and a co-lead on the project, said initial tests revealed there were no complications with the cubesat’s system.
The development meant Pakistan was officially in an exclusive club of countries that had conducted deep space missions, the official added.
Around 100 students from the IST contributed to developing the satellite. 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).
The design, development, and qualification of the ICUBE-Q satellite were spearheaded by faculty members and students of the IST in collaboration with China’s Shanghai Jiao Tong University (SJTU), with support from Pakistan’s National Space Agency, SUPARCO.

 


Pakistan, Gulf states in final stages of talks on Free Trade Agreement — PM Sharif

Updated 10 May 2024
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Pakistan, Gulf states in final stages of talks on Free Trade Agreement — PM Sharif

  • Pakistan and the Gulf Cooperation Council signed a ‘preliminary’ FTA in September last year
  • The development comes amid Pakistan efforts to boost trade to stabilize dwindling economy

ISLAMABAD: Pakistan and the Gulf states are in final stages of discussions regarding a Free Trade Agreement (FTA) between the two sides, Pakistani state media reported on Friday.
Pakistan and the Gulf Cooperation Council (GCC) signed a “preliminary” FTA in September last year, with the country’s commerce ministry calling it a “milestone in both sides’ economic cooperation.” The GCC also said the agreement represented “an important turning point in cooperation.”
In 2022, both sides held technical-level talks to examine the possibility of an FTA that could help Pakistan boost exports to the six-nation bloc, which includes Saudi Arabia, the United Arab Emirates, Bahrain, Oman, Qatar, and Kuwait.
Presiding over a meeting on the trade sector, Prime Minister Shehbaz Sharif asked the authorities to formulate trade policies with the core objective of facilitating the country’s business sector, the state-run APP news agency reported.
“In the meeting, the prime minister was told that the discussion on the Free Trade Agreement between Pakistan and the Gulf states was in the final stage and transit trade agreements with Uzbekistan and Tajikistan had already been materialized,” the report read.
During a recent Pakistan-Saudi Business Conference, according to the report, around 450 business-to-business meetings were held and the volume of e-commerce trade was witnessing a constant increase, with the enlisting of over 3,000 firms on the Pakistan Trade Portal.
Pakistan has welcomed numerous foreign officials and business delegations in recent weeks, encouraging local partnerships and asking them to explore investment opportunities across various economic sectors.
A Saudi business delegation, consisting of senior representatives from nearly 35 companies, recently concluded its visit to Pakistan, during which the delegates held several business-to-business meetings. Additionally, Prime Minister Shehbaz Sharif met with a group of Japanese industrialists, urging them to invest in Pakistan’s nascent electric car industry.
The country is also expecting the visit of Saudi Crown Prince Mohammed bin Salman later this month, hoping it would bring several billion dollars in investment.
During the meeting on the trade sector, the prime minister called for steps to promote exports of non-traditional goods and instructed authorities for immediate payment of certified duty drawbacks to exporters, according to the APP report.
He instructed officials to ensure consultation with them during the policy-making and implement the deletion policy to uplift the auto sector.
“Prime Minister Shehbaz directed the relevant ministry to devise a comprehensive strategy to scrutinize the performance of trade and investment officers posted in Pakistan’s missions abroad by rewarding the good performers and removing the incompetent ones,” the report read further.
The development comes as Pakistan seeks a fresh bailout from the International Monetary Fund (IMF) to stabilize its dwindling economy after completing its $3 billion IMF bailout deal that helped avert a default last year.
The South Asian country currently has Free Trade Agreements with China, Malaysia, and Sri Lanka, but it still needs to increase exports to other trade destinations.


Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts

Updated 57 min 23 sec ago
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Historic cuts in Pakistan car prices a ‘marketing stunt’ amid slow demand — experts

  • Lucky Motor Company, which assembles KIA cars in Pakistan, and Pak Suzuki Motors recently reduced Stonic, Swift prices by up to Rs1.5 million
  • Experts say the automakers wanted to “test” the market through the stunt and the benefit would not end customers as it was opened for few days

KARACHI: The recent historic cuts in prices of multiple car models were a “marketing stunt” by automakers in Pakistan, experts and dealers said on Friday, attributing it to slow demand in the South Asian country.
Lucky Motor Company, which assembles KIA cars in Pakistan, reduced the price of KIA Stonic by as much as Rs1,500,000, followed by a cut in Swift price by up to Rs710,000.
The rate cuts by Kia and Pak Suzuki Motors came on the heels of a reduction in prices of Toyota Yaris by Rs133,000 and Honda City by Rs140,000 respectively in March.
While KIA and Pak Suzuki Motors have said they received an “overwhelming” to the price drops, experts believe it to be a marketing stunt to help struggling models fare better in the Pakistani market.
“They (LMC) played a game because they had about 300-350 (KIA Stonic) cars lying dead which were not sold,” Hajji Muhammad Shahzad, chairman of All Pakistan Motor Dealers Association (APMDA), told Arab News.
“They threw [them] in the market and stopped the booking.”
Shahzad said the price cut by the LMC generated interest among investors who booked the car instead of “genuine buyers,” noting that the car would come with around Rs500,000 own money as well.
Mashood Ali Khan, an auto industry expert, believed that price plays a key role in the auto sector, because of the current economic situation and prevailing high inflation. He said the LMC wanted to “test” the market.
“The people who have booked, maybe I am wrong, but I think they are mostly the investors,” Khan told Arab News. “It could not reach the end consumers as it was opened for two days.”
Reached for comment, LMC Chief Executive Officer Muhammad Faisal said they corrected the KIA Stonic price to help it compete with sedan cars available in Pakistan and “took the hit” themselves, though the automaker didn’t anticipate the overwhelming response to the price cut.
“We tried to bring it to the price point at which competing sedans are available,” Faisal told Arab News. “When we brought it to this price point, the response from the market was unbelievable and better than our expectations.”
Though a Pak Suzuki Motor official did not respond to Arab News query about the cut in Swift price, the company said in a circular it had received an “overwhelming” response and was now introducing “stylish combinations” of a two-tone exterior.
Shahzad, however, said Swift did not get a “good response” despite the price cut. 
A decrease in car prices was already expected as the Pakistani government notified in March it would charge 25 percent sales tax on locally assembled cars, if their invoice price exceeded Rs4 million.
Car sales declined in Pakistan by 38 percent during nine months of the current fiscal year, which began on July 1, amid a declining trend in auto financing, historic high interest rate, soaring prices and shrinking purchasing power of consumers, according to a research report by the Karachi-based Darson Securities.
Asked about the delivery of vehicles to customers, LMC CEO Faisal said the company had not delivered the newly booked Stonic cars and was still filtering buyers.
“We have just made a commitment that we will deliver it now,” he told Arab News. “We have ensured that we will book one car per CNIC (computerized national identity card), we are filtering the investors, we are giving preference to genuine customers, so that we can deliver it soon.”
Faisal said the automaker was evaluating its stock position after the current response and it would resume bookings, however, the company would be giving delivery commitments for October onwards.
Car prices have increased in Pakistan by around 40 percent in the last two years and the costs of vehicles remain high despite the recent cuts, according to car dealers.
Khan, the auto sector expert, called for localization of auto parts and a 10-year policy to promote auto industrialization to make affordable cars in Pakistan.


Pakistan seeks Beijing’s support for completion of 1,800MW hydropower projects

Updated 10 May 2024
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Pakistan seeks Beijing’s support for completion of 1,800MW hydropower projects

  • The Kohala and Azad Pattan hydropower projects have reportedly been delayed for past several months
  • Beijing is investing more than $65 billion in energy and infrastructure projects in Pakistan as part of CPEC

ISLAMABAD: Pakistan’s Planning Minister Ahsan Iqbal has sought Chinese support for early completion of two hydropower projects, Pakistani state media reported on Thursday, amid the minister’s visit to China.
The 1,124 megawatts (MW) Kohala and 700MW Azad Pattan hydropower projects have been delayed for the past several months, according to media reports.
In his meeting with National Energy Administration of China’s Chairman Zhang Jianghua, Iqbal said his government intended to diversify energy mix toward clean and renewable energy.
“In that context, Minister for Planning sought Chinese continued cooperation for the early implementation of the Azad Pattan and Kohala Hydro Power Projects,” the state-run Radio Pakistan broadcaster reported.
Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of the China-Pakistan Economic Corridor (CPEC), a major segment of Beijing’s Belt and Road infrastructure initiative, which will connect China to the Arabian Sea and help Islamabad expand and modernize its economy through a network of roads, railways, pipelines and ports in Pakistan.
During the meeting, the two sides also discussed new initiatives to improve energy management system, aimed at reducing theft and line losses, according to the report.
“We intend to reform energy sector to be efficient and affordable in order to provide electricity to consumers and businesses at cheaper rates by cutting line losses and power theft,” Iqbal was quoted as saying.
The meeting was part of Iqbal’s engagements in Beijing to prepare for the next round of Joint Coordination Committee meeting as well as for the preparation of an upcoming visit of Prime Minister Shehbaz Sharif to China.
Earlier, the minister met officials of top Chinese companies, including Power China, TBEA Co. Ltd., and Electric Power Planning and Engineering Institute, that specialize in power transmission and distribution.