Senior Chinese official says Pakistan’s security challenges undermining investor confidence

In this handout photograph, taken and released by Pakistan’s foreign ministry, Deputy Prime Minister and Foreign Minister Ishaq Dar (center, right) meets Liu Jianchao, Minister of Central Committee of the International Department of Communist Party of China, in Islamabad on June 21, 2024. (Photo courtesy: MOFA)
Short Url
Updated 21 June 2024
Follow

Senior Chinese official says Pakistan’s security challenges undermining investor confidence

  • Liu Jianchao raises concern over the issue after several Chinese workers were targeted by militants in Pakistan
  • The Chinese official also asks political parties to work together and deal with complex challenges facing Pakistan

ISLAMABAD: A senior Chinese official on Friday identified Pakistan’s internal security deficit as a major challenge undermining investor confidence while addressing the 3rd Meeting of the Pakistan-China Joint Consultative Mechanism (JCM), which brought together representatives of all major Pakistani political parties.
Liu Jianchao, a prominent Chinese political figure, serves as the Minister of the International Liaison Department of the Communist Party of China, a key position that involves managing relationships with various political organizations around the world.
He arrived in Pakistan on Thursday night to co-chair the JCM meeting, focusing on the progress and future direction of the China-Pakistan Economic Corridor (CPEC).
Liu voiced concern over Pakistan’s internal security situation, as militant groups in the region have targeted Chinese nationals working on various CPEC projects around the country in recent years.
“We need to improve security and the business environment,” he said while addressing the forum. “Security threats are the main hazards to CPEC cooperation. As people often say, confidence is more precious than gold. In case of Pakistan, the primary factor shaking the confidence of Chinese investors is the security situation.”
“Without security, the business environment cannot really improve,” he continued, adding this may undermine development in the longer run.




Pakistan's Deputy Prime Minister Ishaq Dar (right) meets a senior Chinese Communist Party leader Liu Jianchao in Islamabad, Pakistan on June 21, 2024. (@ForeignOfficePk/X)

Earlier, Pakistan’s Deputy Prime Minister Ishaq Dar told the meeting the CPEC enjoyed full political support in his country while members of several rival political factions sat around the conference table.
However, the Chinese official also urged Pakistani politicians to work together to deal with the complex challenges facing the country.
“In the turbulent world of rising uncertainties, stability within a country is essential for the development of that country,” he noted. “Faced with complex internal and external challenges, Pakistan is navigating carefully the turbulent rivers and treacherous shores. Only when all political parties in a country join hands to ensure political and social stability can there be sustainable development.”
Liu also mentioned the “Western social media,” saying it had a huge impact on younger generation and was eroding the foundations of China-Pakistan friendship.
He pointed out the strategic nature of relationship between the two countries had yet to translate into mutual understanding and affinity between their people, emphasizing exchange programs on multiple levels to foster greater friendship.
The Chinese official said his country wanted to upgrade CPEC and take it to the next level of development to benefit the people of the region.
He praised Pakistani law enforcement agencies for capturing suspects who have “so badly sabotaged” the security situation in the country.
He also expressed optimism that the two sides would continue to cooperate with each other, adding that Pakistan would remain a major destination for Chinese businesses and investors in the coming years.
JIANCHAO MEETS PM SHARIF
The Chinese official met Prime Minister Shehbaz Sharif in Islamabad to discuss bilateral relations and the ongoing progress of CPEC projects, the Prime Minister’s Office (PMO) said in a statement. 
Sharif noted it was a matter of “great satisfaction” that there was complete political consensus in both countries about CPEC.




Pakistan Prime Minister Shehbaz Sharif (right) meets a senior Chinese Communist Party leader Liu Jianchao in Islamabad, Pakistan on June 21, 2024. (Photo courtesy: PMO)

“The Prime Minister underlined that early completion and implementation of all ongoing, as well as new CPEC projects, would contribute significantly toward Pakistan’s economic growth and inclusive development,” the PMO said. 
Sharif also stressed the importance of enhanced exchanges between Pakistan’s and China’s political parties to share experiences, build capacity in various sectors and adopt people-centered governance structures, the PMO said.
Sharif later hosted a banquet in Jianchao’s honor and for the Chinese delegation, which was also attended by representatives of major Pakistani political parties.

ARMY PLEDGES FULL SUPPORT FOR CPEC
Liu separately met Pakistan’s Army Chief General Syed Asim Munir at the General Headquarters (GHQ) in the eastern city of Rawalpindi, the state-run Associated Press of Pakistan (APP) said.
The two discussed matters of mutual interest, including regional peace and stability, and reviewed progress on CPEC, the state-run media said.
“The COAS reaffirmed Pakistan’s unwavering commitment to the strategic partnership with China and pledged full support for the successful implementation of CPEC, a flagship project of China’s Belt and Road Initiative (BRI),” APP said.
Liu commended Pakistan’s efforts in maintaining regional peace and stability, acknowledging the support of the country’s armed forces in providing security to Chinese nationals and projects in Pakistan, APP reported.




Security personnel inspect the site of a suicide attack near Besham city in the Shangla district of Khyber Pakhtunkhwa province on March 26, 2024. (AFP)

The Chinese official expressed satisfaction regarding the overall progress on CPEC projects, reiterating Beijing’s commitment to its timely completion, the state-run media added. 
Liu’s trip to Islamabad comes only days after Prime Minister Shehbaz Sharif concluded his five-day visit to China where he met with the top political leadership along with a number of investors and representatives of top technology companies.
The two countries principally agreed to usher CPEC into its second phase, expanding beyond the initial focus on infrastructure and energy to include broader economic and social development goals.
The new phase emphasizes rural revitalization, agricultural modernization, industrialization and green development, among other things.


Pakistan urges Microsoft users to update software as global tech outage eases after disruption

Updated 20 July 2024
Follow

Pakistan urges Microsoft users to update software as global tech outage eases after disruption

  • Pakistan Telecommunication Authority says the global IT outage was caused by a ‘faulty update’ from cybersecurity provider CrowdStrike
  • The outage also raised concerns that many organizations are not well prepared to implement contingency plans when an IT system goes down

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) on Friday urged Microsoft clients to update software from official support portal to restore tech services after a global computer system outage sparked widespread disruptions.
Services from airlines to health care, shipping and finance started coming back online late Friday after the outage was resolved, and companies were dealing with backlogs of delayed and canceled flights and medical appointments, missed orders and other issues that could take days to resolve.
A software update by global cybersecurity firm CrowdStrike, one of the largest operators in the industry, triggered systems problems that grounded flights, forced broadcasters off air and left customers without access to services such as health care or banking.
PTA, which regulates Internet in Pakistan, said the significant global IT outage was caused by a “faulty update” from cybersecurity provider CrowdStrike, impacting thousands of Windows machines worldwide.
“This outage also affected consumers of Microsoft in Pakistan. The fault forced affected PCs (personal computers) and servers into a recovery boot loop, preventing proper startup. Some Internet services are also affected because of this,” it said in a statement.
“The fault was identified, isolated and a fix is provided by Crowdstrike, as per Crowdstrike’s website. Clients are now suggested to update the software from their support portal to restore services.”
CrowdStrike is not a household name but it is an $83 billion company with more than 20,000 subscribers around the world including Amazon.com and Microsoft. CrowdStrike CEO George Kurtz said on social media platform X that a defect was found “in a single content update for Windows hosts” that affected Microsoft customers.
“We’re deeply sorry for the impact that we’ve caused to customers, to travelers, to anyone affected by this, including our company,” Kurtz told NBC News.
CrowdStrike has one of the largest shares of the highly competitive cybersecurity market, leading some industry analysts to question whether control over such operationally critical software should remain with just a handful of companies.
The outage also raised concerns that many organizations are not well prepared to implement contingency plans when a single point of failure such as an IT system, or a piece of software within it, goes down. But these outages will happen again, experts say, until more contingencies are built into networks and organizations introduce better back-ups.
- With additional input from Reuters


Pakistan IT exports increased by nearly $300 million in June amid growth push

Updated 20 July 2024
Follow

Pakistan IT exports increased by nearly $300 million in June amid growth push

  • Pakistan is trying to navigate a prolonged economic crisis by actively pursuing foreign investments and enhanced trade opportunities
  • It has lately encouraged its IT sector and facilitated collaboration with a number of nations, including Saudi Arabia, China and Qatar

ISLAMABAD: Pakistan’s information technology (IT) exports rose by nearly $300 million in the month of June, the country’s state minister for IT said on Friday, amid a push for the growth of IT sector.
Pakistan is trying to navigate a prolonged economic crisis by actively pursuing foreign investments and enhanced trade opportunities, while it has also reached a staff-level agreement with the International Monetary Fund (IMF) for a $7 billion loan.
Pakistan has lately encouraged its IT sector and facilitated collaboration with a number of countries, including Saudi Arabia, China and Qatar, to boost IT exports in the South Asian nation of 241 million.
“Pakistan’s export remittance of ICT services increased by $298 million in June 2024,” State Minister for IT Shaza Fatima said in a statement. “IT exports have increased by 32.44 percent compared to June last year.”
From July 2023 to June 2024, Pakistan’s IT exports reached $3.223 billion, compared to $2.596 billion in the same period of the previous financial year, according to the minister.
Government measures are in progress to increase IT exports of the country.
“Thanks to the government’s ease-of-doing-business measures, our IT exports are increasing,” she said.
“The IT industry is striving to increase IT exports with the full support of SIFC (Special Investment Facilitation Council), IT ministry, Pakistan Software Export Board.”


Pakistani rice traders warn government of drop in exports due to additional taxes

Updated 20 July 2024
Follow

Pakistani rice traders warn government of drop in exports due to additional taxes

  • Local traders of the commodity set $5 billion of export target before government introduced new tax regime
  • National Assembly Standing Committee on Commerce will take up the issue in its forthcoming meeting next week

ISLAMABAD: Pakistani rice traders on Friday warned the government of a possible reduction in their exports to $2 billion, against the ambitious $5 billion target, blaming the new tax regime expected to make them pay a larger share of their earnings than in the past.
The country’s rice exports to Saudi Arabia, the United Arab Emirates, China, Malaysia and other countries reached $3.9 billion in the last fiscal year, a noticeable improvement compared to the previous year’s $2.1 billion, reflecting an upward trajectory.
For the current fiscal year, Pakistani rice traders have been eyeing $5 billion. However, they say this might not happen due to the government’s decision to replace the Final Tax Regime with the Hybrid Tax Regime, which would double the tax rates and force exporters to file returns each month.
The Final Tax Regime refers to a system where specific sources of income, such as dividends, have final tax deductions made at the source, meaning no further tax is payable. In contrast, the Hybrid Tax Regime applies to businesses or individuals with multiple income streams, combining final taxed income with additional taxable income, requiring more meticulous filing of returns and higher overall tax rates.
“This new tax regime will leave us uncompetitive in the international market,” Chela Ram Kewlani, Chairman Rice Exporters Association of Pakistan, told Arab News. “This will automatically result in a drop in our rice exports to $2 billion as we have already been doing business at record high markup rates and electricity costs.”
He said the new tax regime would open the door for the Federal Board of Revenue (FBR), the country’s tax collection body, to audit their business, resulting in “corruption and harassment” of rice exporters.
“There is a clear contradiction in the government’s statements and actions,” he said. “They want to boost the exports, but at the same time they want to burden the sector with heavy taxes.”
Kewlani said, besides the new tax regime, the government would levy 10 percent super tax if the exports of a trader went beyond Rs4 billion ($14.4 million).
He informed the exporters held a meeting with Federal Minister for Finance Muhammad Aurangzeb last week to discuss the issue, though it did not yield their desired results.
“You are aware of the economic situation, so the government has no option but to levy additional taxes on the rice exports,” he said while quoting the finance minister.
Muhammad Jawed Hanif, Chairman of the National Assembly’s Standing Committee on Commerce, said he was aware of the challenges posed by additional taxes, adding the committee would discuss the matter in its next meeting.
“We have a meeting on July 24 wherein we will discuss these rice export issues,” he told Arab News.
“All issues related to exports will be on my priority list as the country badly needs foreign exchange through increased exports of our products,” he added.


Pakistan’s election body to enforce top court’s reserved seats verdict, may seek further legal guidance

Updated 19 July 2024
Follow

Pakistan’s election body to enforce top court’s reserved seats verdict, may seek further legal guidance

  • The court said earlier this month ex-PM Khan’s PTI was eligible for reserved seats for women and minorities
  • ECP dismissed PTI’s criticism asking its top official to step down while accusing him of bias against the party

ISLAMABAD: Pakistan’s election regulatory body said on Friday it would enforce the Supreme Court’s verdict in a case involving the reserved seats for women and minorities in national and provincial legislatures, adding it had asked its lawyers to determine if there were areas where it needed the court’s further guidance.
The country’s top court delivered a major decision in favor of former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, saying it was eligible for reserved seats in national and provincial assemblies, even as it put pressure on the fragile coalition currently ruling the federation.
PTI candidates were forced to contest the February 8 general polls as independents after the party was stripped of its election symbol of the cricket bat by the top court for not holding proper intra-party elections. While these candidates won the most general seats, the ECP ruled they were not entitled to the reserved seats since they were meant for political parties.
Subsequently, these seats were allocated to other political factions, mostly from those in Prime Minister Shehbaz Sharif’s ruling coalition. But the Supreme Court reversed the decision while criticizing the ECP for misconstruing its decision related to the election symbol by depriving PTI of its reserved seats.
“The election commission has decided to implement the Supreme Court’s decision,” the ECP said after holding a meeting to discuss the verdict. “However, the election commission has instructed its legal team to immediately identify any points of the Supreme Court decision that pose implementation challenges so that further guidance can be sought from the court.”
It also responded to PTI’s criticism, which called for the top ECP official to step down following the Supreme Court’s verdict, accusing him of harboring a bias against the party.
“The election commission did not validate PTI’s intra-party elections, which PTI contested on various forums, and the election commission’s decision was upheld,” it said.
It pointed out that PTI lost its election symbol for the same reason.
“Therefore, any accusations against the election commission are highly inappropriate,” it added.
Pakistan’s ruling coalition criticized the Supreme Court’s decision, with some of its members pointing out the court gave relief to PTI, though it had not originally filed the case.
However, the Supreme Court said in its decision that “PTI was and is a party,” despite its earlier verdict depriving it of election emblem right ahead of the general polls.


Pakistan deploys advanced warship for regional maritime security, port protection

Updated 19 July 2024
Follow

Pakistan deploys advanced warship for regional maritime security, port protection

  • PNS Yarmook is equipped with latest weapons and equipment, capable of dealing with multifaceted threats
  • It will also be used for ‘naval diplomacy’ during its deployment period and visit various ports around the region

ISLAMABAD: Pakistan has deployed a warship for regional maritime security and to protect commercial vessels arriving at its ports, according to a statement released by the military’s media wing, Inter-Services Public Relations (ISPR), on Friday.
The development comes as the country plans to upgrade its southern port facilities to strengthen its economy by bolstering trade with countries worldwide.
Pakistan has also offered the landlocked Central Asian states access to its harbor in Karachi while aiming to increase its capacity for handling incoming and outgoing cargo.
“The Pakistan Navy has deployed the warship PNS Yarmook on a regional maritime security patrol in the Indian Ocean,” the ISPR said in a statement. “Equipped with modern helicopters, PNS Yarmook will ensure the safety of commercial vessels arriving at and departing from Pakistani ports.”
The statement said the warship would participate in joint operations and exercises with friendly countries in addition to its own operations.
PNS Yarmook will also be part of “naval diplomacy” and visit various regional ports during its deployment.
“This ship is equipped with the latest weapons and equipment, capable of dealing with multifaceted threats and conducting extensive maritime operations,” the ISPR continued.
“Pakistan Navy warships regularly perform duties on regional maritime security patrols,” it added.