Current Final

Category: Business

  • ‘Pakistan has the potential to become an economic hub,’ says Asian Development Bank

    ‘Pakistan has the potential to become an economic hub,’ says Asian Development Bank

    The Asian Development Bank (ADB) has said that Pakistan has huge potential for economic progress given its strategic location and youthful growing population.

    In an interview, Country Director of ADB for Pakistan Xiaohong Yang said: “Pakistan has the potential to become a regional hub for trade and economic activity but the major impediment is weak connectivity and trade links. Moreover, the COVID-19 has pandemic caused a sharp downturn in 2020, and is likely to push more people into poverty.”

    Yang also said that ADB is taking major steps in providing critical finance to the government to implement it’s pro-poor fiscal and monetary policy, and to deal with the impacts of the pandemic, adding that ADB has also financed a $2 billion loans to help Pakistan overcome the pandemic challenges.

    ADB is working towards introducing best practices, sharing knowledge and trying to develop capacity building through partnerships will all stakeholders, says Yang.

    The bank has also devised a new partnership strategy (2021-2025) for Pakistan. It is designed to restore growth and economic stability by deploying sovereign and non-sovereign operations to support infrastructure, agribusiness, and finance sector investment.

    ADB will target reforms that boost competitiveness and private sector development, create jobs and drive market innovation.

  • Ban on meals to end soon on domestic flights

    Ban on meals to end soon on domestic flights

    The Civil Aviation Authority (CAA) has suggested lifting the ban on in-flight meals services amid the second wave of the COVID-19 pandemic.

    As per details, the authority wrote a letter to the Aviation Division on Wednesday, recommending them to lift the ban on meal and beverages on domestic flights as the authority’s efforts to contain the spread of the pandemic have been successful.

    The letter further asked the Aviation Division to seek approval from the National Command and Operation Centre (NCOC) in this matter.

    The precedent of halting food services was set by Pakistan International Airlines (PIA) last year. PIA wanted to limit interaction between passengers and airline crew members under the reviewed standard operation procedures (SOPs).

    The idea was picked by CAA and they directed all airlines to follow the protocol on domestic flights. However, passengers on international flights are being served pre-packaged food with beverages.

    Passengers flying to Saudi Arabia receive snacks, club sandwiches, patties, one banana, and muffins in a pre-packaged box with a soft drink. Whereas flights to Kabul and Gulf countries only serve snacks.

  • Cargo train operations to resume between Pakistan, Turkey after nine years

    Cargo train operations to resume between Pakistan, Turkey after nine years

    The Pakistan Railways has announced that international goods train services will resume between Pakistan and Turkey from March 4 after a hiatus of nine years.

    According to a statement issued, the train will travel from Turkey to Karachi over a time span of two weeks. It will reach Karachi via, Rohri, Quetta, Zahedan, and Iran.

    The first international cargo train will be bringing electronics for domestic consumption. The same train will leave Karachi for Turkey this month carrying other goods.

    The administration carried out several test journeys on the route. The transit line was not regularised due to pending infrastructure development.

    In December, last year Turkey’s Minister for Transport and Infrastructure Adil Karaismailoglu announced that the Istanbul-Tehran-Islamabad (ITI) railway is expected to resume operations in 2021. According to Karaismailoglu, both container and freight transportation will soon resume on the route. The growing changes in the diplomatic landscape between the three countries have allowed the railway operation to resume.

    ITI project was initially launched in 2009. The railway line starts from Istanbul, through Tehran, to Islamabad. This routes takes eleven a half days and has a maximum capacity of twenty 50-feet containers.

  • Job opportunities for Pakistanis to increase in Qatar

    Job opportunities for Pakistanis to increase in Qatar

    Qatar has planned to increase employment opportunities for Pakistanis to over 300,000 in the coming year from the current 150,000, Qatar consul General Mishal M Al-Ansari said on Monday.

    While addressing members of the Korangi Association of Trade and Industry (KATI), he said that the companies with 100 per cent Pakistani ownership have increased significantly in Qatar.

    The Liquified Natural Gas (LNG) agreement between Pakistan and Qatar is a great milestone. Both countries are already working on many joint ventures in areas like defence production, JF-17 aircraft project, defence training, agriculture, food and other industries.

    Al-Ansari said that despite terrible conditions due to coronavirus we are fully prepared for FIFA World Cup 2022 and many mega infrastructure projects have been completed.

  • Pakistan set to get three new airlines

    Pakistan set to get three new airlines

    Q-Airlines, Fly Jinnah and Jet Green Airlines have sought regulatory approval from Pakistan’s Civil Aviation Authority (CAA) to launch services in the country.

    The CAA has completed the scrutiny of Q-Airlines and Fly Jinnah while Jet Green Airlines is still going through the scrutiny process.

    According to reports, following the completion of due procedure, the applications would be sent to the aviation division and then to the federal cabinet for final approvals.

    After the launch of these three new airlines, it will take the number of private carriers in the country to six, catering to the 217 million population.

    Airblue, SereneAir and AirSial are the three airlines already operating in the country. National carrier Pakistan International Airlines (PIA) is the largest and oldest carrier.

    It is a compulsion for new carriers to operate domestic flights for at least one year with three aircraft before they are allowed to operate internationally.

    SereneAir has already received necessary approvals from the UAE and Saudi authorities to launch commercial operations with maiden flights to Dubai, Sharjah, Jeddah and Riyadh.

  • Rs1,000 surcharges for late tax filers

    Rs1,000 surcharges for late tax filers

    The spokesperson of the Federal Board of Revenue (FBR) has clarified that a fine of Rs 1,000 will be charged for late tax filers, not Rs 10,000. The clarification came due to the rumours about high fine charges imposed by FBR on filing late income tax returns.

    This mistake occurred because of an error in a press release issued on February 24th. According to the clarification, Rs 1,000 will be charged from individuals (salaried and non-salaried) on late filing of income tax returns for the tax year 2020 for inclusion in the Active Taxpayers List (ATL).

    Companies will pay a surcharge of Rs 20,000 and an association of person Rs 10,000 for inclusion in ATL. Association of persons is the relation between persons, who have agreed to share the profits of a business carried amongst all stakeholders.

    It is noteworthy that the FBR surpassed its collection target by Rs 13 billion to Rs 2.911 trillion in the first eight months of the current fiscal year, as shown in the provisional data released by the tax authorities on Friday.

    It was the second consecutive month that the tax collection surpassed its projection. The revenue collection increased by nine per cent during July-February when compared with Rs 2.681 trillion collected in the same period last year.

    An official of FBR said that the revenue collection was achieved two days ahead of the end of the current month.

  • Amazon rainforest plots sold via Facebook Marketplace ad

    Amazon rainforest plots sold via Facebook Marketplace ad

    Land grabbers are reportedly selling parts of Brazil’s Amazon Rainforest through advertisements on Facebook.

    Facebook says that “we are ready to work with local authorities,” but they are not willing to take independent action of their own to halt the trade.

    “Our commerce policies require buyers and sellers to comply with laws and regulations,” the Californian tech firm added.

    Campaigners have also said that the government of Brazil is unwilling to halt the sales.

    “The land invaders feel very empowered to the point that they are not ashamed of going on Facebook to make illegal land deals,” said Ivaneide Bandeira, head of environmental NGO Kanindé.

    Deforestation in Brazil’s Amazon is at a 10-year high. Now, Facebook’s Marketplace has become a selling site for grabbers.

    A journalist has recorded footage of a landgrabber, Fabricio Guimarães showing areas he is selling on Facebook.

    “There’s no risk of inspection by state agents here,” said Fabricio as he walked through a patch of rainforest he had burnt to the ground.

    Fabricio Guimarães land grabber

    The land illegally cleared and ready for farming is priced at $35,000.

    Fabricio is not a farmer. He has steady middle-class job in a city, and views the rainforest as being an investment opportunity.

    Another factor driving the illegal land market is the expectation of amnesty.

    One landgrabber revealed he was working with others to lobby politicians to help them legally own stolen land.

    “I’ll tell you the truth: if this is not solved with President Bolsonaro there, it won’t be solved anymore,” he said of the current government.

    A common strategy is to deforest the land and then plead with politicians to abolish its protected status, on the basis it no longer serves its original purpose.

  • PTI govt borrows $6.7bn in FY20-21, says report

    PTI govt borrows $6.7bn in FY20-21, says report

    The government has received a total of $6.7 billion in foreign loans in the first seven months of the current fiscal year, according to a report in Express Tribune.

    It also includes a commercial loan of $500 million from China last month which helped Islamabad keep it’s gross official foreign exchange reserves at the current levels.

    According to the Economic Affairs Ministry, the government obtained external loans from multiple financing sources. It added that the gross loans were higher by 6 per cent or $380 million over the same period of last fiscal year.

    “Considering foreign exchange constraints, financing of development projects and repayments of these huge external public debts compel the incumbent government to further borrow from multiple sources,” the report quoted the Ministry of Economic Affairs as saying.

    In January alone, the government of Pakistan received $960 million, which includes $675 million from commercial banks. It was the most expensive loans.

    Almost 87% of the foreign loans or $5.8 billion were for budget financing, building foreign exchange reserves and commodity financing. Project financing was a mere $897 million or 13%. Pakistan would pay back these loans after taking new loans because no revenue-generating assets were created by using the amount.

    Additionally, China provided $1 billion worth of SAFE deposit. It also extended $1.5 billion in trade financing facility, which was the obligation of the central bank and not counted as part of the $6.7 billion borrowing in the past seven months.

    According to the newspaper, China’s continued financial assistance to Pakistan has helped in keeping the gross official foreign exchange reserves at around $13 billion despite the suspension of the International Monetary Fund (IMF) programme. However, the IMF and Islamabad agreed to revive the IMF programme earlier this month.

  • FATF grey-listing has cost Pakistan $38bn since 2008: report

    FATF grey-listing has cost Pakistan $38bn since 2008: report

    The Financial Action Task Force’s (FATF) decision to place Pakistan on the grey list three times since 2008 has cost Islamabad $38 billion, reported Express Tribune.

    The newspaper quoted a report published by an independent think-thank, Tabadlab, stated that grey-listing events spanning from 2008 to 2019, may have resulted in cumulative GDP losses worth $38 billion.

    According to the report, the losses are worked out on the basis of reduction in consumption expenditures, exports, and foreign direct investment (FDI). The report has attributed most of these losses to the reduction in household and government consumption expenditures.

    “The author of the research paper argued that the data suggested that Pakistan’s removal from the grey list has at times led to the revival of the economy, as evident from an increase in the level of GDP for the years 2017 and 2018 when Pakistan was not on the grey-list,” Tribune reported.

    Pakistan was first placed on the list in 2008 for one year. In 2012, Islamabad was penalised by the FATF again and this time it was removed from the list after three years. In 2018, the country found itself on the FATF list again and has been trying to get off it ever since.

    France and some other European countries have recommended the Financial Action Task Force (FATF) to continue to keep Pakistan on the grey list, saying Islamabad has allegedly failed to comply with the conditions set by the global watchdog, according to a report in Dawn newspaper.

    The decision on whether Pakistan will remain or remove from the list will be announced on Feb 25 (today) after a three-day-long plenary meeting of the global watchdog.

  • PM offers Sri Lanka to join CPEC, says trade links vital to eradicate poverty

    PM offers Sri Lanka to join CPEC, says trade links vital to eradicate poverty

    Prime Minister Imran Khan on Wednesday invited the Sri Lankan businessmen to invest in Pakistan, saying trade connectivity among the countries of the Asian sub-continent was vital for poverty alleviation.

    Addressing the Pakistan-Sri Lanka Trade and Investment Conference held in Colombo which he jointly chaired with his Sri Lanka counterpart Mahinda Rajapaksa, Imran proposed establishing trade links, as existed among the European countries, for the prosperity of the Asian sub-continent.

    The PM also urged the Sri Lankan government to become part of the China-Pakistan Economic Corridor (CPEC), saying joining the Belt and Road Initiative could open up new avenues for Sri Lanka with an opportunity to establish trade links with the Central Asian states via Gwadar.

    The PM, who is in Colombo on a two-day official visit, said political stability in the region by maintaining good relations with neighbouring countries would ensure a business-friendly environment.

    He said Pakistan and Sri Lanka could explore the idea of generating wealth through joint business activities and diverting the wealth to alleviate poverty. Imran offered the Sri Lankan businessmen to explore the immense opportunities offered by the government of Pakistan in the form of ease-of-doing business. He said his government would welcome and facilitate investment from the island nation.

    The PM mentioned that as Pakistan and Sri Lanka both suffered the brunt of terrorism in the past, their journey together towards development could make a difference. He expressed intent for Pakistan to learn from Sri Lanka’s advanced tourism industry and mentioned that he made the tourism minister part of his delegation to explore the area.

    Imran said Pakistan has a lot of undiscovered sites of religious tourism, including the Gandhara civilization. He added that a recently discovered 40-feet-long Sleeping Buddha could be of special interest for Sri Lankan tourists.

    In an effort to maintain good relations with neighbouring states, Imran Khan recalled his offer to Indian Prime Minister Narendra Modi for a dialogue to resolve all outstanding issues including the Kashmir dispute. To encourage trade ties with neighbours, he said, “maintaining amiable relations and living like civilized nations must be a priority”.

    Imran Khan emphasized that with 1.3 billion people, the South Asian region needed to resolve its mutual conflicts through dialogue for sustainable prosperity.

    On Tuesday, Pakistan and Sri Lanka agreed to further strengthen bilateral relations in diverse areas, including trade, investment, science and technology, and culture, as Prime Minister Imran Khan urged the Sri Lankan counterpart to become part of the CPEC.

    “My visit is aimed at strengthening bilateral relationship [with Sri Lanka], especially trade and economic ties through enhanced connectivity…,” Prime Minister Imran Khan said while addressing a joint press conference with his Sri Lankan counterpart Mahinda Rajapaksa after holding one-on-one and delegation-level talks.