Pakistan Economy: News & Discussion

[tsunami]

View attachment 23399

ya Allah chinio ne fir dost ki maar di

So Russia blocking was a lie??

 

[Kalki_2018]

Looks like it. Or maybe pakis could not afford to buy anything worthwhile from Russia for Russia to change its vote.

 

[PD_Solo]

Down goes the index............

 

[mayfair]

Can we help them by any means in their quest for self-sabotage ?:biggrin2::biggrin2:

Yes, how about we gather upstream and collectively piss in the river. Should help with the storage levels..

 

[aliyah]

So Russia blocking was a lie??

yes absolutely......... China was leading the block but when saudi n Turkey backed out then hakka noodles was left alone so they also supported it

 

[Pandeyji]

yes absolutely......... China was leading the block but when saudi n Turkey backed out then hakka noodles was left alone so they also supported it

Actually Turkey was the only one to not back out (they are the next to be considered). Due to the Turks the final deal is something like this

If Pakistan presents a comprehensive action plan to take action against terrorist organisations acting from it's soil then from June it would be on the greylist otherwise blacklist (from June obviously).

The Chinese backed out on a promise of future favors by India & US (including more clout in FATF) besides it makes Pakistan even more dependant on them.

 

[Butter Chicken]

EU says Christian woman's release will determine future trade with Pakistan

The European Union has said the renewal of a trade deal with Pakistan will be dependent on the release of Asia Bibi, a Christian woman on death row.

Asia Bibi was sentenced to death for blasphemy in 2010, accused of insulting the Islamic prophet Muhammad, something she denies. She appealed the sentence but the hearing was postponed and she has been in prison ever since.

Jan Figel, the EU's special envoy for freedom of religion outside the EU, has told Pakistan that the renewal of their export privileges will be dependent on the freedom of Asia Bibi.

Pakistan currently have 'Generalised System of Preferences (GPS) status', meaning Pakistani products have duty-free access to the EU market with either no tariffs or preferential levies.

However, the EU said the result of Bibi's appeal, which is pending in the Supreme Court and could result in her being sentenced to hanging, will determine the continuity of this trade deal.

It said in a statement: "The cessation of GSP plus status will cause a severe blow to the sinking economy of the country and will not be able to compete with local competitors like Bangladesh and Sri Lanka."

 

[The Juggernaut]

EU says Christian woman's release will determine future trade with Pakistan

The European Union has said the renewal of a trade deal with Pakistan will be dependent on the release of Asia Bibi, a Christian woman on death row.

Asia Bibi was sentenced to death for blasphemy in 2010, accused of insulting the Islamic prophet Muhammad, something she denies. She appealed the sentence but the hearing was postponed and she has been in prison ever since.

Jan Figel, the EU's special envoy for freedom of religion outside the EU, has told Pakistan that the renewal of their export privileges will be dependent on the freedom of Asia Bibi.

Pakistan currently have 'Generalised System of Preferences (GPS) status', meaning Pakistani products have duty-free access to the EU market with either no tariffs or preferential levies.

However, the EU said the result of Bibi's appeal, which is pending in the Supreme Court and could result in her being sentenced to hanging, will determine the continuity of this trade deal.

It said in a statement: "The cessation of GSP plus status will cause a severe blow to the sinking economy of the country and will not be able to compete with local competitors like Bangladesh and Sri Lanka."

"Isme bhi yahood-hanood ya india, Umreeka aur Israeel ki sazish hogi."

Jokes aside may be some serious effort are undergoing on international stage. Vaguely, strategy of Diplomatically and economically isolating Pakistan is taking shape.

 

[lcafanboy]

300000000000000000000000000000

 

[Butter Chicken]

Govt will have to pay IMF $3bn by June, claims Rana

KARACHI: Pakistan will have to pay $3 billion to the International Monetary Fund (IMF) before June and for this funds will have to be raised from the international market, Minister of State for Finance Rana Muhammad Afzal Khan said on Tuesday.

The figure given by the minister is at odds with what the State Bank says Pakistan owes on its external debt service obligations till end of fiscal year. According to the central bank, the total amount Pakistan will have to pay on its external debt is $2.5bn, and that this amount does not require recourse to any extraordinary measures to raise.

 

[aystle]

Iran threatens to take Pakistan to International Court of Justice, The Hague

In a new development, Iran has threatened to move the arbitration court against Pakistan for unilaterally shelving the IP gas line project invoking the penalty clause of the Gas Sales Purchase Agreement (GSPA). Pakistan and Iran signed the GSPA in 2009 under IP gas pipeline project in the era of the Pakistan People's Party (PPP). Since then, the project could not get a shape.

Now under the latest scenario, Tehran has asked for payment of over $1.2 billion, as under the penalty clause from January 1, 2015, Pakistan is bound to pay penalty of $1 million per day if it fails to have intake of gas from Iran under the IP project, a top official of the Petroleum Division told The News.

Keeping in view the gravity of the issue, secretary Petroleum Division in an internal note, of which a copy is available with The News, has sensitised Prime Minister Shahid Khan Abbasi, saying there are vibes emanating from Iran to move the arbitration court seeking the imposition of penalty of $1.2 billion against failure of Pakistan to implement the project.

The prime minister, however, did not give any response when he was sent the question through an SMS, asking if the secretary Petroleum Division has sensitised you (the premier) over the intention of Iran on moving the arbitration court seeking penalty over failure of Pakistan to implement the project and if it is true, what strategy Pakistan will have to avoid the penalty.

The News on June 07, 2016 published a story that Pakistan had shelved the IP gas line project in the wake of pressure of a leading gulf country. The decision had irked authorities in Iran at that time, but now in latest development Iran after pause of 20 months has conveyed to Pakistan in plain words that it is going for arbitration seeking the huge penalty of $1.2 billion which is equal to almost the cost of the project.

The project was to be implemented under segmented approach which means that Iran had to lay down the pipeline on its side and Pakistan had to build the pipeline in its territory. The project was to be completed by December 2014 and come on stream from January 1, 2015. Under the penalty clause it was agreed by both sides that if Pakistan fails to have intake of Iranian gas from January 1, 2015, it will have to pay $1 million per day as penalty.

When this correspondent had filed the story on June 06, 2017 saying the IP project has been shelved, Shahid Khaqan Abbasi, who was at that time petroleum and natural resources minister, had confirmed that the government has deferred the project as it wants the private sector to invest in the LNG terminals and import LNG in the country and to this effect, both new LNG terminals are being erected. He had stated that if the private sector succeeded, the government may then abandon the project.

However, the minister at that time did not buy the information that the government has abandoned the project because of pressure from a gulf country. “We have deferred it as private sector is going to install more LNG terminals with a plan to import 1.2 billion cubic feet per day.

The official said that under the IP gas line, Pakistan could not arrange funding for the project as the US and UN had imposed sanctions on Iran and no international firm and donors were ready to finance the project and owing to this Pakistan sought the forced majeure to avoid $1 million per day penalty as per sale and gas purchase agreement inked with Iran. However, Iran did not buy the arguments on which Pakistan sought the force majeure so far.

Then Pakistan satisfied Iran that it was serious towards the project and to this effect it has started initiating Gwadar-Nawabshah LNG Pipeline (GNGP) with the same specifications agreed with Iran and the said pipeline will later on be called as IP gas line.

“On this argument, Iran did not charge the penalty which was due from January 1, 2015,” the official said. "So much so, Iran had agreed to review the gas price downward under IP gas line and to this effect for the last one year and eight months, Pakistan's official team is waiting for green signal from the top man of the country to visit Iran and start the talks for downward gas price. So far no permission has been granted to the officials of the Ministry of Petroleum and Natural Resources for the reasons best known to the top leadership," the official said.

“The government in June 2016 failed to resist the pressure from one of the Middle East countries which is why it had abandoned the project,” the official insisted, saying: “The decision had also annoyed Beijing as Chinese company was given the contract of GNGP under government to government arrangement. China had earmarked 85 percent of the funding for the project.

https://www.thenews.com.pk/print/28...-iran-threatens-to-take-pakistan-to-the-hague

 

[pankaj nema]

Foreign exchange: SBP's reserves plunge $358m, stand at $12.35b

 

[ezsasa]

Foreign exchange: SBP's reserves plunge $358m, stand at $12.35b

In 2015, we were all telling @Neo and his friends here, once CPEC repayment starts paki economic troubles start. Those guys were making fun of us. as per this report 500 million $ repayment to china.

 

[The Juggernaut]

Those guys were making fun of us.

They have always been able to run away without facing consequence. Also, their establishment was able to hide truth to them. Public has been brainwashed into believing that they can get away with anything & are exempt to anything because they are chosen by Allah. They earnestly believe that they will never suffer because they never did anything wrong.

 

[darshan978]

In 2015, we were all telling @Neo and his friends here, once CPEC repayment starts paki economic troubles start. Those guys were making fun of us. as per this report 500 million $ repayment to china.

most of the current pile of Forex res. in porkistan is either by loan from imf or from china plus few bill.$$$ from reimbursement

 

[Suryavanshi]

I hope Modi Chokes their river as soon as possible

 

[The Juggernaut]

Pakistan's free trade agreement talks with Turkey nearing collapse

KARACHI: The commerce ministry has asked the government for clearance to take a long simmering dispute with Turkey to the World Trade Organisation (WTO) after prolonged discussions on a Free Trade Agreement (FTA) between the two countries have hit an impasse.

At issue is grant of GSP+ status by Turkey that Pakistan argues is an obligation given that Turkey and the European Union are part of a customs union. The ministry is arguing that out of the countries that enjoy GSP+ status with the EU, Turkey has extended the same status to all except Armenia and Pakistan.

Also, Pakistan has asked for a reversal of a set of additional duties that the Turkish government imposed on Pakistani products having high export potential in the Turkish market back in 2011.

Ankara’s refusal to grant GSP+ status at heart of simmering dispute

In the seven rounds of FTA talks held since February 2015, Pakistan has repeatedly raised the matter of additional duties but no breakthrough has been achieved.

The products in question are cotton fabrics, apparel and home textiles, carpets, manmade fibres, plastics and footwear. The additional duties range from 20 to 50 per cent, bringing the total duties on these critical products to between 28 and 67pc when combined with other duties also applicable on them.

As a result, Pakistan’s exports to Turkey plummeted from $906 million in 2011 to $282m in 2017, a decline of 69pc.

The commerce ministry believes that the Turkish government is under an obligation to extend GSP+ status to Pakistan because the former is a member of the EU customs union, a demand that was first presented to the Turkish authorities in 2014. It was in response to this demand that the Turkish government proposed an FTA instead, talks for which were launched the following year.

In the seventh round of FTA talks in June 2017, Pakistan asked either for an extension of GSP+ status by Turkey or for the two countries to grant tariff concessions to each other, extending the lowest tariff that they may have granted to any other country under any FTA. For its part, the Turkish side, according to a source from the Pakistani team present at the meeting, proposed a 25pc reduction in the additional duties imposed in 2011, with the reductions spread over a five-year period and some of the duties possibly phasing out over 11 years.

Pakistan rejected that proposal, and the commerce ministry asked the top political leadership to intervene and press the Turkish side to show greater flexibility.

It suggested that if the intervention failed retaliatory tariffs could be imposed on Turkish products. None of the two recommendations were, however, adopted.

In December last year, the matter was again discussed at the meeting of the Pakistan-Turkey Joint Working Group, which is different from the FTA talks.

The Turkish side, according to the source present at the meeting, said it is not offering GSP+ status to other countries beyond those that already enjoy it.

Another attempt was made to achieve a breakthrough on the sidelines of the WTO ministerial meeting later that month in Buenos Aires, Argentina, again without any success. In fact at that event no meeting between the Pakistani and Turkish trade delegations could take place.

The FTA talks between Pakistan and Turkey have been extended twice. Originally they were supposed to conclude in 2016, but the date was extended to May 2017.

At present, no further meetings are scheduled, and the commerce ministry has formally asked the cabinet for permission to take up the Turkish refusal to either reduce its additional duties or extend GSP+ status in line with the EU, with the WTO, thereby elevating the issue to a trade dispute between the two countries.

Published in Dawn, March 3rd, 2018

 

[The Juggernaut]

At issue is grant of GSP+ status by Turkey that Pakistan argues is an obligation given that Turkey and the European Union are part of a customs union. The ministry is arguing that out of the countries that enjoy GSP+ status with the EU, Turkey has extended the same status to all except Armenia and Pakistan.

Lo bahi, ab FATF me sasth denewala pakistan ka saccha biradar mulk Turkey ab GSP+ se hatane ki baat kar raha hai.

After Iran, now Turkey, looks like storms are brewing up on global level.

 

[Akshay_Fenix]

With the huge losses Turkey is facing in Afrin, I believe there will come a time when even Edrogen will be requesting for Porki troops, in return for free trade.

 

[Butter Chicken]

Pakistan loses 50pc market share in Kabul

KARACHI: India has succeeded to penetrate in Kabul slashing the market share of Pakistan by more than 50 per cent in the last two years, Chairman Pakistan-Afghanistan Joint Chamber of Commerce and Industry Zubair Motiwala told Dawn on Friday.

Motiwala who recently visited Kabul said the penetration of India and China has limited Pakistan’s option to retain its market share while India subsidises heavily on its exports. He said Pakistan’s trade with Afghanistan fell to $1.2 billion from $2.7bn within in the last two years and the country has been losing even the traditional markets of flour, men and women’s clothes and red meat.

Kabul has been the natural market for Pakistani exports but that is changing as cheaper products from China and India flood the country. According to Pakistan Bureau of Statistics, exports to Afghanistan dropped to $1.271bn in FY17 from $1.437bn in FY16. Exports in the first quarter of 2017-18 stood at $319 million.

Each year thousands of Afghans used to visit Peshawar for medical treatment but now they prefer India due to cheaper treatments and other attractions like concessional treatments. “Medical tourism of Peshawar, which was mainly due to Afghans, is now at zero level; hospitals in Hayatabad are empty,” he continued.

He said Peshawar is the main victim of the declining trade with Afghanistan where people have lost their businesses on a large scale. Out of 200 flour mills, about 100 have been closed down due to a drastic fall in the export of flour to Afghanistan, he added.

He also referred to the decreasing containers’ traffic from Pakistan to Afghanistan. He said 70,000 goods containers were used to pass through between the two countries which has now dropped to just 7,000, reflecting the change of routes for imported goods to Afghans.