Islamabad : Adviser to the Prime Minister on Finance and Revenue chaired the meeting of the Economic Coordination Committee of the Cabinet (ECC) here at the Cabinet Division.

ECC was given an update on the issue of the Roosevelt Hotel, as directed by the Adviser Finance in an earlier meeting. The Adviser directed that the issue should be handled in fair and most transparent manner and in the best national interest. He directed that all stakeholders including Secretary Aviation should be included in every discussion/ negotiation related to the issues of the Roosevelt Hotel. Chairman ECC further directed that it should be made clear to all that in this transaction all matters shall be resolved in a manner that is only in favor of the country and not benefitting any individual or party.

ECC approved the technical supplementary grant equivalent to Rs.252.382 million for the discharge of liabilities related to M/s Karkey arbitration.

Procurement of 83 X Micron sprayers for anti-locust operation was allowed by ECC to National Disaster Management Authority with the grant of special exemption of taxes and duties of import.

On a proposal pertaining to the taxation issues related to the telecom sector ECC decided that proposal may be submitted in the next ECC after thorough deliberation of its impact on already in vogue taxation policies, by FBR, Ministry of Commerce and Ministry of Industries.

ISLAMABAD, August 27: Pakistan is expected to accomplish its mango export target of $150 million by end of 2020, setting aside the predict that the export will be affected due to the epidemic.

According to a report published by Gwadar Pro on Thursday, the country already surpassed its mango export target by 45,000 tons despite grave challenges arising from the global outbreak of COVID-19.

Quoting All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA), the report stated that the country has so far exported 125,000 tons of mangoes, fetching valuable and much needed foreign exchange of $72 million, as against the corona-revised target of 85,000 tons for 2020.

Earlier, Pakistan’s registered a record high in export of fruits and vegetables was 12.5 percent, amounting to $730 million in FY2019-20, despite the global pandemic.

This is also the highest revenue in terms of foreign exchange generation. During the last year, the export of fruits was enhanced by 3.8 percent while the vegetables reflected an increase in export by 28 percent. Export of fruits fetched $431.27 million while export of the vegetables generated $30 million.

The government took wise and on-time decisions to especially enhance mango export this year through its unique marketing strategies and trade diplomacy.

To export Pakistani fruits and vegetables was almost impossible due to the pandemic and resulting lock downs. However, the exporters translated these challenges into opportunities by enhancing exports of this sector and adopting realistic strategies.

Pakistan International Airlines gave discounted freight charges of up to 30 percent for mango exports to ease pressure amid the global shut down due to COVID 19.

To further boost the mango export, Pakistan embassies in various countries arranged mango exhibitions, introducing Pakistani mangoes to local people.

Pakistan exports mangoes to 40 countries of the world, and by adopting meticulous planning and removal of barriers restricting exports, Pakistan can gain access to bigger and high value international markets.

Pakistan ranks sixth in the world in terms of mangoes production and fifth in terms of mango export in the world, having around 5% share.

The Pakistan Industrial & Traders Associations Front chairman Mian Nauman Kabir has said that massive fall of rupee value continued to harm the economy, as the cost of deals done by the businessmen with their foreign buyers has increased manifold due to unprecedented plunge of local currency against dollar. Besides increasing exports and controlling imports the government will have to take administrative measures, as a large demand of cash dollars are seen in the market. He said that the rupee has dropped by 2.9 percent or Rs4.62 against the dollar during last couple of months. 

Mian Nauman Kabir, in a joint statement with senior vice chairman Nasir Hameed and vice chairman Javed Siddiqi appreciated the positive development related to the imports, which have now started decreasing since the last financial year followed by the government’s initiative of imposing regulatory duties. 

PIAF Chairman urged the government to control volatility of rupee against the US dollar, as the industrial revival and economic growth is not possible without stability of local currency. 

He said that Pakistani rupee continued its downward slide against the US dollar, moving in record low range of Rs167-168, having no sign of recovery, despite the fact that Pakistan’s Current Account Deficit has reduced by 78 percent owing to lower imports and better inflows. 

Mian Nauman Kabir said that the CAD fell to $2.97 billion during fiscal year 2019-20 while the import bill fell by 19 percent to $44.57 billion during this period but rupee continued to sink. He said that sharp depreciation of rupee shows that Pakistan is again moving towards a trade deficit regime, which might jack up the current account deficit yet again. He said that the inflows of workers’ remittances also grew by 6.4 percent to $23.12 billion during fiscal year 2019-20 which should have a positive impact on dollar-rupee exchange value. 

He said that Pakistan has received around $500 million in soft loan from the World Bank last month, helping the rupee to maintain its uptrend, besides bridging the shortfall in budgeted expenditures. 

PIAF senior vice chairman Nasir Hameed Khan, terming rupee depreciation against dollar a mysterious development, said that continued fall of rupee is not understandable with the fact that there was no fundamental change in the country’s imports during last few months while other economic indicators are also the same for a long time. 

Nasir Hameed said that in dollar value, the gross domestic product (GDP) contracted 5.22% in FY20. The GDP value in terms of dollar does not reflect the growth pattern, as Pakistan measures economic indicators in rupee value and converts it into dollar term. So, the volatility in the rupee-dollar exchange value would lead to a huge difference between GDP growth in dollar value and real growth in rupee term. 

PIAF vice chairman Javed Siddiqi said the foreign direct investment rose 88% to $2.56 billion in the country in FY20, as in June alone, the foreign investment surged 70.53% to $174.8 million, which could help strengthen the rupee and the foreign exchange reserves. 

Javed Siddiqi said that the current account deficit shrank to 1.1% of gross domestic product (GDP) in FY20 and the deficit of $2.96 billion is the lowest in five years which should be appreciated but it is also the fact that the much-needed improvement in the current account deficit was initially achieved by compromising economic growth. Later, the Covid-19 outbreak slowed down the economy further and caused negative growth for the first time in the history.

Islamabad : Federation of Pakistan Chambers of Commerce and Industry Standing Committee, Former Chairman and Businessmen Panel Secretary General (Federal) Ahmad Jawad on Wednesday says consumer welfare is altogether missing as evident from high prices, less variety and low quality of vehicles being assembled in Pakistan.We urged the government to announce special slab to reduce the prices of locally assembled cars to facilitate the masses.It was totally unjustified that local manufactures revised their car prices whenever they desired and without even getting approval from the regulator. The Ministry of Industries must devise a mechanism to regulate the local assemblers’ prices, he added.He said “It is pity for the public to get the price of Suzuki Alto of 12 lac, a 43 lacs for Honda Civic with a normal variant and same in the case with Toyota Corolla Altis variants” despite all these manufacturers have manufactured the cars locally except to import engine and may be fuel tank for safety standards but they always raise their prices with a parity of dollar against PKR which is unjustified”.

He questioned if local manufacturers have continuously increased their vehicle prices with the dollar volatility then what’s the benefit for masses of the local industry ? it’s more better that government may reduce the import duties on brand new vehicles, so that masses may get benefit out of it and at least they enjoyed their machines with due international standards and safety measures. Jawas also told all local manufacturers have raised prices at a time when the economy is slipping into a recession as the GDP growth forecast is negative 1.5% for the fiscal year ending June 2020; traditionally the automaker’s strategy has been to protect profitability. By raising prices, they try to keep profit margins normal so they can remain in profit and that could be witnessed in their annual results before Pakistan Stock Exchange.However he mentioned FBR policy board may also suggest some releif tax measures to reduce the cost of locally produced vehicles and make the same more affordable.BMP official also told average effective tariff rate of 11.2% in Pakistan is the highest in the region against 10.6% in Bangladesh, 7.5% in India, 7.0% in Sri Lanka, 5.2% in China, and 4.5% in Malaysia.

In Pakistan Manufacturers enjoy exemptions and concessions on the import of items, which if imported by others are liable to duties and other charges. Consequently, the local manufactures neither developed their capacity nor upgraded technology to improve quality for their captive market.

He also pointed out that protection to sectors like auto and textile is high in Pakistan and consumer welfare is totally missing from the entire scheme of tariff. Despite high protection and multiple export promotion schemes, however, local manufacturing is weak and exports are stagnant.

ISLAMABAD: Chairman China-Pakistan Economic Corridor Authority, Lt. General retired Asim Saleem Bajwa on Thursday announced over 1100 jobs of various categories for a recently started CPEC project by Shanghai Electric at Thar Block-1.

In his tweet, Asim Saleem Bajwa stated that locals will be preferred for the recently announced jobs in Thar-Block-1 subject to criteria/qualification.

Earlier on August 15, Chairman China-Pakistan Economic Corridor Authority, Lt. General retired Asim Saleem Bajwa has announced CPEC internship programme.

In his tweet, Asim Saleem Bajwa stated, with an aim to empower youth, we have announced an opportunity for the youth to join CPEC specific internship for three months.