Pakistan’s envoy to UAE says food exports to Middle East hit $700 million this year

An overview of the Pakistani pavilion at the Gulfood Exhibition in Dubai, UAE on Feb. 20, 2024. (Photo courtesy: Pakistan mission, UAE)
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Updated 22 February 2024
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Pakistan’s envoy to UAE says food exports to Middle East hit $700 million this year

  • Pakistan’s envoy to UAE says country’s regular participation in annual Dubai food exhibition resulted in better market access for products 
  • Pakistan’s trade development authority projects food exports to hit $7 billion this fiscal year, up from $4 billion previously

ISLAMABAD: Pakistan’s top diplomat to the United Arab Emirates (UAE) said this week that the country’s exports of food and agriculture products to the Middle East and Gulf region reached $700 million during the current financial year, crediting Pakistan’s consistent presence at an annual Dubai food exhibition for enhancing market access for the country’s products. 
The five-day Gulfood Exhibition, one of the world’s largest annual food and beverage trade exhibitions, kicked off this year on Feb. 19 and will be held till Feb. 23. The event brings together global industry leaders to showcase food and beverage products. 
Over 500 exhibitors from 200 countries are taking part in the exhibition this year. A total of 100 Pakistani exhibitors are taking part in the ongoing festival, out of which 45 are sponsored by the Trade Development Authority of Pakistan (TDAP). 
“Pakistan’s exports in this sector (food and agriculture products) stood at $700 million in the Gulf and Middle East region during the financial year 2023-2024 (up to December),” Pakistan’s ambassador to the UAE, Faisal Niaz Tirmizi, told Arab News. 
Gulfood Exhibition features exhibitors from various sectors of the food and beverage industry, including manufacturers, producers, distributors, and suppliers. The event attracts thousands of visitors and exhibitors from across the globe, making it a significant event for the food industry.




An overview of the Pakistani pavilion at the Gulfood Exhibition in Dubai, UAE on Feb. 20, 2024. (Photo courtesy: Pakistan mission, UAE)

Tirmizi said the significant presence of Pakistani firms at the exhibition would lead to increased B2B (business-to-business) collaborations and joint ventures in Pakistan.
“Regular participation in Gulfood has resulted in better market access and expansion,” he said. “Causing around a 40 percent increase in food and agri exports to UAE and Middle East/African markets.”
Tirmizi said Pakistani exhibitors represented diverse sub-sectors including dairy, meat, poultry, and beverages sectors. He said sideline events, such as workshops, chef talks, and investment opportunities, are also discussed at the venue. 
Visitors include traders, investors, government officials, and regulators that come with numerous opportunities for collaboration, the envoy added.
Muhammad Zubair Motiwala, TDAP chief executive, said Pakistani exporters have been participating in the Gulfood Exhibition for several years with the trade authority’s support. He said it was encouraging to see the increasing number of Pakistani exhibitors each year. 




Pakistani entrepreneur engages with visitors at Gulfood Exhibition in Dubai, UAE, on Feb. 20, 2024. (Courtesy: Pakistan mission, UAE)

“Considering the ongoing trends, it is safely projected that our exports of food items will cross $7 billion (globally) by the end of this financial year,” Motiwala told Arab News. 
“Which is in sharp contrast to about $4 billion in annual exports in this sector, previously.”
Motiwala said the TDAP has specifically focused on enhancing food and food-allied products, which was paying dividends in the form of a substantial increase in the country’s exports in the sector.
“It is extremely encouraging to share that there is a remarkable increase of 300 to 400 percent in the exports of sesame seeds this year,” Motiwala disclosed.
He said Pakistani rice exports would cross $3 billion in comparison to the previous figure of $1.5 billion. 




Pakistani entrepreneur engages with visitors at Gulfood Exhibition in Dubai, UAE, on Feb. 20, 2024. (Courtesy: Pakistan mission, UAE)

Motiwala said enhancing Pakistani exports was the way to achieve economic prosperity, adding that TDAP was contributing substantially toward this objective.
Pakistani exhibitors noted that the Gulfood Exhibition helped expand their business outreach to new markets through joint ventures and marketing deals.
Mustafa Hemani, chief executive officer of the Hemani Group of Companies, said his company signed numerous deals with various companies and buyers from around the world during the ongoing exhibition.
“We have signed contracts for sale and market our products with companies from Belgium and Kosovo and a few will be signed in the next two days,” Hemani told Arab News.
“I have been exhibiting at Gulfood for many years, which has helped our products enter 84 countries, resulting in a $50 million business, with $12 million generated solely in Gulf states,” he added.




Pakistani entrepreneur engages with a visitor at the Gulfood Exhibition in Dubai, UAE, on Feb. 20, 2024. (Courtesy: Pakistan mission, UAE)

 


Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security

Updated 13 May 2024
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Pakistan, US discuss jointly countering Daesh, Pakistani Taliban to advance regional security

  • Development comes amid renewed violence in Pakistan’s western regions that border Afghanistan, where TTP and Daesh are said to have sanctuaries
  • A Pakistani military spokesman last week said a suicide attack that killed five Chinese engineers in March was planned in neighboring Afghanistan

ISLAMABAD: Pakistan and the United States (US) have discussed jointly countering Daesh, Pakistani Taliban and other militant groups to advance regional security and address transnational threats, the Pakistani foreign ministry said on Monday.

The consensus was reached during a recently held Pakistan-US Counterterrorism Dialogue in Washington DC, which was co-chaired by Pakistan’s Additional Foreign Secretary Syed Haider Shah and US State Department coordinator for counterterrorism, Elizabeth Richard.

The dialogue underscored the cooperation between Pakistan and the US in addressing challenges to regional and global security, including the Tehreek-e-Taliban Pakistan (TTP) and Daesh-Khorasan, with discussions centered on the counterterrorism landscape in the region.

“Pakistan and the United States recognize that a partnership to counter Daesh-Khorasan (Daesh-Khorasan), TTP and other terrorist organizations will advance security in the region and serve as a model of bilateral and regional cooperation to address transnational terrorism threats,” the Pakistani foreign ministry said in a statement.

“Both governments resolved to increase communication on these topics and continue collaboration to detect and deter violent extremism through whole-of-government approaches.”

The development came amid a renewed wave of violence in Pakistan’s western regions that border Afghanistan, where the TTP and Daesh are said to have their sanctuaries.

Islamabad has accused Kabul of not doing enough to tackle militant groups targeting Pakistan from across the border. Last week, a Pakistani military spokesman said a suicide bomb attack that killed five Chinese engineers in March was planned in neighboring Afghanistan, and that the bomber was also an Afghan national.

Kabul has denied allowing the use of its territory against any country and says rising violence in Pakistan is a domestic issue of Islamabad.

During the dialogue, Pakistani and US officials emphasized the importance of expanded counterterrorism collaboration and capacity-building, including exchanges of technical expertise and best practices, investigative and prosecutorial assistance, provision of border security infrastructure and training, and strengthening multilateral engagement such as in the United Nations and the Global Counterterrorism Forum, according to the Pakistani foreign ministry.

“The Counterterrorism Dialogue reaffirms Pakistan’s and the United States’ shared determination to contribute to both regional and global security and stability,” it added.


Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests 

Updated 13 May 2024
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Three killed in clashes with paramilitary Rangers amid Azad Kashmir protests 

  • Protesters have been calling for reduction in wheat, electricity prices in Himalayan valley through days-long demonstrations
  • Earlier on Monday, PM approved $83 million wheat flour and electricity subsidy and Azad Kashmir announced new prices 

ISLAMABAD: At least three people were killed and scores injured as protesters clashed with paramilitary Rangers troops in Azad Kashmir, officials said on Monday, despite Pakistan’s announcement of a $83 million subsidy to reduce wheat flour and electricity prices in the region.

The development comes amid days-long protests in the disputed Himalayan valley, which is administered by Pakistan, led by the Jammu Kashmir Joint Awami Action Committee (JAAC), which is demanding subsidized wheat flour and that electricity prices be set as per the hydropower generation cost in Azad Kashmir.

On Saturday, a policeman was killed in clashes between police and demonstrators as authorities blocked a rally from moving toward Azad Kashmir’s capital, Muzaffarabad, from the region’s Poonch and Kotli districts. Weekend talks between the JAAC core committee and AJK Chief Secretary Dawood Bareach in Rawalakot ended in a stalemate and a planned march by protesters to the capital resumed on Monday.

Azad Jammu and Kashmir (AJK) Prime Minister Anwar-ul-Haq said at a press conference on Monday the regional government had notified reduced prices of wheat flour and electricity after Pakistani Premier Shehbaz Sharif okayed Rs23 billion ($83 million) in subsidies.

“Despite the issuance of notifications to reduce electricity and wheat prices, along with addressing other demands, protesters attacked a Rangers convoy, leading to an exchange of gunfire that resulted in the death of three civilians and many injuries on both sides,” Abdul Majid Khan, a spokesperson of the AJK government, told Arab News.

“The deployment of Rangers is not uncommon and their [protesters] attack on the convoy was uncalled for as it occurred after the government had already accepted their demands,” he added.

“The situation is currently under control and we are trying to bring calm as the government will not allow mischievous elements to succeed.”

Amjad Ali Khan, a member of the JAAC core committee member, said the protesters had been contemplating calling off the protest after the price reduction announcements, but the situation had “completely changed” after the killings of the three demonstrators.

“At the moment, we are not clear about the exact number of injured as many are injured, while three deaths have been confirmed,” he told Arab News.

Amjad said protesters got agitated by the heavy deployment of the paramilitary Rangers and clashes resultantly erupted in different areas of Muzaffarabad.

“Although the actual issue for which demonstrations started [protesting] has been settled, this new development has changed everything and now we will decide our new course of action tomorrow (Tuesday),” he added.

The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947, with both countries ruling part of the territory, but claiming it in full. The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity while India rules the southern portion of the larger Kashmir region as a union territory.

While the Indian portion has faced an ongoing insurgency for decades and multiple armed attempts by the state to quell it, the Pakistani side has remained relatively calm through the decades, though it is also highly militarized.

SUBSIDY

Earlier on Monday, AJK PM Haq announced a reduction in the prices of wheat flour and electricity in the region, thanking Pakistan PM Shehbaz Sharif for approved a Rs23 billion ($83 million) subsidy to make it possible.

“He [Sharif] issued instructions and the things that had been pending for a long time with regard to subsidy, electricity prices, resources, have been provided to Azad Kashmir,” Haq said.

The new price of electricity in the region will be Rs3 per unit for 1-100 units, Rs5 per unit for 100-300 units and Rs6 per unit for those consuming above 300 units. Commercial unit price will be Rs10 for 1-300 units, and Rs15 for above 300 units, according to Haq. A 40kg bag of wheat flour, which was previously priced at Rs3,100, will now be sold for Rs2,000.

“This would cost more than Rs23 billion to the national exchequer,” Haq added, “which the [federal] government and the prime minister of Pakistan gladly accepted.”


IMF, Pakistani officials begin formal talks in Islamabad for fresh bailout program

Updated 13 May 2024
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IMF, Pakistani officials begin formal talks in Islamabad for fresh bailout program

  • The South Asian country last month completed a short-term $3 billion IMF program that helped stave off a sovereign default
  • While Islamabad expects a staff-level agreement by July, both sides have refrained from commenting on the size of the program

ISLAMABAD: A team of the International Monetary Fund (IMF) and Pakistani officials on Monday began formal talks in Islamabad for a fresh, longer-term bailout program for the cash-strapped South Asian country, the Pakistani finance ministry said.

The South Asian country, which has been facing low foreign exchange reserves, currency devaluation and high inflation, last month completed a short-term $3 billion IMF program that helped stave off a sovereign default, but the incumbent government of PM Shehbaz Sharif has stressed the need for a fresh, longer-term program.

While Islamabad has said it expects a staff-level agreement by July, both Pakistani and IMF officials have refrained from commenting on the size of the program. The South Asian country is expected to seek around $7-8 billion bailout from the global lender.

On Monday, the IMF team, led by Mission Chief Nathan Porter, met Pakistan Finance Minister Muhammad Aurangzeb, central bank governor, chairman of the Federal Board of Revenue and other officials to kickstart discussions on further engagement with the lender.

“The Finance Minister welcomed the IMF team and thanked them for the successful completion of the [$3 billion] Standby Arrangement (SBA),” the Pakistani finance ministry said in a statement.

“The Finance Minister apprised the IMF team of the improvement in the macro-economic indicators over the course of the SBA and underscored the government’s commitment to continue with and expand upon the reform agenda.”

Pakistan narrowly averted a default last summer and its $350 billion economy has slightly stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high of 38 percent in May last year.

However, the South Asian country is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year, compared to negative growth last year.

Wall Street Bank Citi expects Pakistan to reach an agreement with the IMF of up to $8 billion program by end-July, and recommends going long on the country’s 2027 international bond.

“While longer-term challenges pertain, we see several positive catalysts supporting the Eurobonds,” Nikola Apostolov at Citi wrote in a note to clients.

“First, a larger and longer IMF EFF (Extended Fund Facility) program could be finalized by July – possibly a $7-8 billion 4-year program and secondly and a possible inflow of Saudi investments,” Apostolov said after a team from Citi visited Pakistan and met policymakers, including Finance Minister Muhammad Aurangzeb.

Citi said it expected Pakistan’s international 2027 bond to offer a sweet spot to investors with sufficient liquidity and large upside as risks of default dissipate further.

— With additional inputs from Reuters.
 


Pakistan PM steps down as ruling party president, Nawaz Sharif poised to take charge 

Updated 13 May 2024
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Pakistan PM steps down as ruling party president, Nawaz Sharif poised to take charge 

  • Nawaz, who founded the Pakistan Muslim League-Nawaz in 1993, stepped down as president in 2018 
  • Supreme Court had ruled individuals disqualified under Articles 62/63 of constitution couldn’t head party

ISLAMABAD: Prime Minister Shehbaz Sharif has resigned as president of the ruling Pakistan Muslim League-Nawaz (PML-N), saying it was time for his elder brother and three-time former premier Nawaz Sharif to “resume his rightful place” as the party’s leader, the PML-N confirmed on Monday. 

Nawaz, who founded the PML-N in 1993, stepped down as its president in 2018 after the Supreme Court (SC) ruled that an individual disqualified under Articles 62 and 63 of the constitution, which outline the rules for qualification and disqualification for parliamentarians, could not serve as the head of a political party. 

Sharif was disqualified as prime minister by the Supreme Court in July 2017, which declared him “dishonest” for not disclosing a separate monthly income from a company owned by his son. The court also ordered the National Accountability Bureau (NAB) to open a criminal trial into the ownership of London flats and several other revelations about the ex-PM’s family wealth disclosed in the Panama Papers’ leaks. 

A year later, following the investigations ordered by the court, Nawaz was sentenced to 10 years in prison for corrupt practices linked to his family’s purchase of the upscale London flat and subsequently to seven years in jail in a separate case for being unable to prove the source of income that had led to his ownership of a steel mill in Saudi Arabia. Nawaz has since been acquitted in both cases, which he always maintained were politically motivated. 

Sharif, who is Nawaz’s younger brother, subsequently became president of the party but has always maintained it was a temporary arrangement until his brother was exonerated by the courts. 

On Monday, PML-N information secretary and Senior Punjab Minister Marriyum Aurangzeb shared Sharif’s resignation on X.

“I am heartened by recent developments that have exonerated our leader with dignity, affirming his unblemished integrity and commitment to the service of our nation,” Sharif wrote. 

“Therefore, it is with a deep sense of duty and reverence for our party’s principles that I tender my resignation as the president of PML-N,” he added, pledging to support the PML-N with “unwavering loyalty” under Nawaz. “The time has come for Mohammad Nawaz Sharif to resume his rightful place as the president of the PML-N.”

After being jailed in 2018, Nawaz flew to London in 2019 after a court allowed him to leave for medical treatment, on the condition he returned when fit. However, he went into exile and ran his party affairs from London, while former cricketer Imran Khan ruled as prime minister until April 2022, when he was ousted in a parliamentary vote of no confidence. 

Nawaz’s younger brother, Shehbaz Sharif, subsequently became prime minister for 16 months ahead of general elections on Feb. 8 after which Sharif once again came to power in March and became premier, ruling Pakistan through a fragile coalition with smaller parties. 


PIA set to resume Europe operations with flights to Paris in June-July, says CEO

Updated 13 May 2024
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PIA set to resume Europe operations with flights to Paris in June-July, says CEO

  • The ban was instituted after PIA air crash in May 2020 which was followed by a fake pilot license scandal
  • EU’s Aviation Safety Agency says it is ‘not in a position to provide any information related to the status of PIA’

KARACHI: Pakistan International Airlines (PIA) would resume its operations in Europe with two weekly flights to Paris in June and July, the airline’s chief executive officer said on Monday, years after the national flag carrier was barred from operating flights to Europe.

PIA flights to Europe and the UK have been suspended since 2020 after the EU’s Aviation Safety Agency (EASA) revoked the national flag carrier’s authorization to fly to the bloc following a pilot license scandal that rocked the country.

The issue, which followed a plane crash in May 2020 that killed nearly a hundred people, had resulted in the grounding of 262 of Pakistan’s 860 pilots, including 141 of PIA’s 434.

“We hope we will commence our bi-weekly flights for Paris in the June or July timeframe. We are very hopeful about it,” said PIA CEO Muhammad Amir Hayat, while responding to questions during a Facebook Live.

“All our pre-operation formalities are complete, we just await final clearance, and as soon as we get it, we will start.”

Soon after the ban was imposed, Hayat said, PIA began compiling deliverables, systematically providing evidence to EASA, and telling the European agency the airline was safety-compliant.

“In March 2023, they conducted an online audit, and from my perspective, it was clear to them as they conducted the online audit that they would come for a physical audit, and they would be assured that we are at the level where they can confirm the audit,” Hayat said, adding the physical audit was conducted in November.

“In December, we received their confirmation that they accepted our deliverables. However, along with that, there are also some deliverables from the Civil Aviation Authority for which the CAA is in touch with them.”

For direct flights to the UK, Hayat said, an independent audit would have to be conducted post-Brexit.

“We have uploaded all the requirements on their portal. According to a careful estimate, after receiving clearance from EASA, the process should take two to three months,” he said. “We hope to achieve the goals of UK and European flights this year.”

Reached for confirmation, an EASA spokesperson told Arab News via email that the agency was “not in a position to provide any information related to the status of PIA.”

The spokesperson advised contacting PIA or the Pakistani CAA for information regarding any developments.

Pakistan is also set to privatize the national airline, which has been facing a financial crisis for the last several years, by June and July as part of the requirements set by the International Monetary Fund (IMF).

But no significant progress has been on that front made due to various reasons, including the suspension of the airline’s flights to Europe.