Day: January 10, 2022

Rice Export Association of Pakistan (REAP) has expressed concern regarding the withdrawal of the zero-rating status of various export-oriented sectors in the Finance (Supplementary) Bill 2021, reported Business Recorder.

REAP termed the bill as a “devastating step” and requested the parliamentarians and finance ministry officials to take immediate action and intervene before the bill is passed by the National Assembly.

Chairman REAP, Ali Hussam Asghar, in his letter to the various government departments, which include Senate, National Assembly Secretariat, and Federal Board of Revenue (FBR), stated that several portions of the bill would have serious implications on the exports of rice.

He specifically pointed out that after the bill passes, the zero-rating to the exported goods of an exempted item would no more be available, which would cause serious harm to the sector. He added that withdrawal of sales tax input adjustment/refund would result in an increase in the cost of doing business in the sector, which would result in many businesses shutting down.

The chairman also highlighted that Pakistan was the fourth-largest producer of rice and in competition with countries such as India.

Ali Hussam reminded the authorities that the exports of Pakistan have already been struggling in recent years, and if any wrong decision was taken, it would backfire and result in a great loss to the economy.

He requested the authorities to review the amendments that have been recommended by the new bill to ensure export performance and growth of this segment in the larger interest of the country.

Source: Pro Pakistani

Three to four companies have hijacked the entire electricity system, said the Federal Secretary Ministry of Water & Power, Hyder Shah, during a meeting of the National Assembly Standing Committee on Power.

The secretary expressed frustration at the companies saying that Peshawar Electric Supply Company (PESCO) was affecting the whole system. He added that there are districts of PESCO where there is no recovery of up to 80 percent.

Hyder Shah further said that the most complaints being received were against the distributing companies, which were failing to supply power to their allotted areas. He said that companies have been told that load shedding means disruption of power for only 4 hours and supply of power for 20 hours.

However, the companies were continuously showing negligence, due to which there have been a large number of complaints.

Other members of the committee also showed disappointment towards the companies. Member committee, Zahid Durrani, said that his area experienced load shedding of up to twenty-four hours. He added that due to the irresponsibility of the officers of these companies, the public held the elected leaders responsible.

The members of the committee suggested that a new committee should be formed to discuss the issue of PESCO.

During the meeting, committee member, Rao Ajmal, said that the government was failing to take action in saving and developing Pakistan. He encouraged his fellow members in taking steps that would lead to the development of the country. He also suggested that a system should be developed which would put an end to the contracting system.

Source: Pro Pakistani

Federal Secretary Power, Asif Hyder Shah, has said that by the end of the current fiscal year, the circular debt would be reduced by Rs. 350 billion.

While talking to ProPakistani, Secretary In-charge Power Division said that the circular debt is now accumulating to almost 27 percent of Pakistan’s total Budget Outlay. He said that the government had signed several new contracts with the power producers in the last year, due to which the circular debt would be reduced at the end of the fiscal year.

Currently, he estimated that the circular debt is around Rs. 2,280 billion, and Pakistan’s total budget outlay is Rs 8.4 trillion.

Asif Hyder said that the power sector requires major revamping, and the current government is working on long-term plans to reduce power sector losses.

He confirmed that the fuel mix needs to be changed over the years, and renewable and hydropower generation projects of up to 2,000 MW are in the pipeline. He said that the new hydro and renewable projects would ease the burden of fuel cost adjustments as the international fuel prices are going up.

Secretary power stated that the IMF conditions are hard, but the government is trying to reduce the circular debt, and it is imperative for the program agreement that maximum losses would be passed on. He said that currently, on average a unit price of electricity in Pakistan is Rs. 17.89 per kWh, whereas only 45 paise per unit is given as subsidy, while consumers are being charged Rs. 17.44 per kWh.

He acknowledged that the base tariff has been increased up to Rs. 5 per kWh and has been increased just to reduce circular debt and bridge the gap of losses incurred by power companies. He hoped that by the end of June this year, the circular debt would be reduced to Rs. 1,850 billion.

Source: Pro Pakistani

The government is in the process to finalize a 3-year strategic growth framework to enable all ministries and departments to work together for employment generation and overall economic growth.

To review the progress, the Deputy Chairman Planning Commission, Dr. Muhammad Jehanzeb Khan, chaired a meeting on the Three-Year Rolling Growth Strategy, which aims at economic diversification, transformation, and jobs-led growth. Secretary Planning, Mr. Abdul Aziz Uqaili, and federal secretaries/senior representatives of line Ministries and divisions attended the meeting.

Ministry of Planning Development and Special Initiatives (PD&SI) has been assigned the task of formulation of the growth strategy as part of the Prime Minister’s economic reforms agenda. The Planning Commission under the leadership of the Federal Minister, Asad Umar, had approved the high-level 3-year framework in October 2021.

Planning Ministry has established two new Sections:

(i) Growth & Employment

(ii) Policy Review & Coordination.

These two Sections will adopt a whole-of-government approach to technically coordinate the preparation and implementation of the 3 Years Growth Strategy continuously.

The ministry has initiated consultations with several Federal Ministries and has constituted seven (7) working groups representing various sectors of the economy, such as Reforming Policy Incentive Structure for the Industrial Sector, Operationalization of Strategic Trade Policy, 2020-25, Enhancing Efficiency Seeking FDI, Harnessing S&T-R&D Capabilities for Targeted Export Products, Identifying Facilitation Measures for enhanced IT Exports, Targeted Productivity Improvements in Agriculture Sector and Identification of Policy Measures to Enhance Agriculture Sector Exports and Inter-Provincial Augmentation on Population Control Programs.

The growth diagnostics and timelines of the work plan, recommendations, and reform agenda are expected to be finalized in January 2022. The 3 Years Growth Strategy aims to reorient policies and incentive structures for the private sector to bring about improved competitiveness and productivity.

Speaking at the occasion, the Deputy Chairman Planning Commission, Dr. Mohammad Jehanzeb Khan, said that a robust implementation plan is as important as a strategic roadmap. Coordination is the fundamental aspect of result-oriented policies, he opined. The concept of partnership is globally practiced and the Government of Pakistan intends to expand partnerships, he further remarked. He directed all sectors to update their policy regulations with the definitive goal of having products and ultimate results.

The stakeholders thoroughly discussed views regarding the way forward and improvements required to be incorporated in the recommendations/suggestions submitted by the respective working groups.

Source: Pro Pakistani

Carrefour, owned and operated by UAE-based Majid Al Futtaim in Pakistan, has added a further Rs. 1 billion to its current investment of Rs. 9.5 billion in the country with the inauguration of a new hypermarket in Gujranwala.

The new standalone hypermarket was inaugurated today, in the presence of Syed Fakhar Imam, Federal Minister for National Food Security & Research, Thierry Joulin, Chief Operating Officer Majid Al Futtaim Retail, Umer Lodhi, and Country Manager of Carrefour Pakistan.

With the opening of its 10thstore in Pakistan, Carrefour has expressed its great confidence in the country’s retail sector and underlined its desire to support the growth and prosperity of the communities it is a part of. The guests were also given a tour of the 15,000 sq m premises that will provide the community of Gujranwala with an elevated shopping experience.

Through its offering of over 25,000 products in the categories of consumer goods, fresh foods, electronics, home accessories, and others, Carrefour Pakistan will bring convenience to the daily lives of shoppers and provide economic support to 170 households in the city through job creation and local sourcing of products.

Syed Fakhar Imam emphasized the important role of the retail sector in the local sourcing of fresh produce for the modernization of the agricultural sector and its benefit for Pakistan’s economy. He also appreciated Carrefour’s role in creating this direct connection between supermarkets and farms which was effectively catering to the domestic food demand of fresh fruits and vegetables.

Speaking at the occasion, Umer Lodhi said, “We stand by our commitment of providing support to the local economy through our expansion plans and the opening of this hypermarket in Gujranwala is a reflection of this commitment in action. It is also a moment of great pride for us as we play our part in the economic revival of the country alongside the Government of Pakistan through the achievement of shared objectives, including sustainable community development.”

Working with more than 700 partners from across Pakistan, Carrefour continues to support and source from local producers. Committed to helping drive Pakistan’s economy forward, Carrefour continues its journey of growth, strengthening partnerships, and providing innovative retail services to shoppers.

Source: Pro Pakistani

Governor State Bank of Pakistan (SBP) Dr. Reza Baqir has responded to the criticism of him by the opposition parties, especially with reference to various conditions set by the International Monetary Fund (IMF) — for the renewal of a $6 billion loan facility — and the SBP Amendment Bill, 2021.

Dr. Reza Baqir told the Senate’s Standing Committee on Finance on Monday that he did not work for the global lender, IMF, and he was a Pakistani. He made it clear that prior to working for the banking regulator, he had worked with the international lender, yet numerous other SBP officials had previously worked for IMF and other foreign organizations.

“I have no other nationality. I am a Pakistani. I do not have permanent residence in any other country,” he stated. He regretted that fake news about these issues was being widely circulated on the media and social media.

To a query about the central bank’s autonomy, Dr. Raza Baqir told Senators that the SBP (Amendment) Bill had been released and, “everyone can see that the government has all the power”.

“It is incorrect to imply that the IMF is becoming the owner of the SBP,” he said, indicating that false information has previously circulated that the government had sold the central bank to IMF.

The Governor SBP’s remarks came a few days after clarifications issued by the Finance Ministry, wherein the latter had revealed that the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) would have full jurisdiction to investigate SBP officials in criminal and corruption-related matters. The Ministry had clarified that SBP would continue to be a public institution and would work for Pakistan only within the mandate given to it by the government. The clarifications further said that the key SBP officials would continue to be appointed by the federal government.

Source: Pro Pakistani