MUBASHAR BHATTI

Paris 1^st May 2020. The Ambassador of Pakistan to France Mr. Moin ul Haque held a virtual meeting with France-based Pakistani journalists and apprised them of various steps taken to provide relief and assistance to Pakistani community members affected by the coronavirus epidemic.

He also informed the journalists about the policy of the Government of Pakistan regarding operation of special flights to bring back home stranded Pakistanis worldwide and transportation of dead bodies from abroad to Pakistan. As these two issues pertain to France also, he assured the community that the Embassy has taken them up with the concerned authorities for an early resolution.

The Ambassador urged the community to donate generously in the Prime Minister’s Relief Fund for COVID 19 to help the Government of Pakistan in providing relief to the vulnerable segments of the society during the epidemic.

He called upon the Pakistan community in France to ra

DNA/STAFF REPORT

ISLAMABAD, April 30 () The China-Pakistan Economic Corridor (CPEC) could speed up the industrial cooperation in priority sectors, said Haroon Sharif, the former Minister of State and Chairman of Pakistan Board of Investment.

“At this stage, there is a huge scope for investments in the health sector including pharmaceuticals and expansion of hospitals’ network,” said Sharif in an exclusive interview with China Economic Net (CEN).

The CPEC, he said could help strengthening the digital technology- base in Pakistan, as the world moves to remote working. More specifically, there is a huge demand for digital education in the remote areas of Pakistan.

“China should also look at relocating some industries to mitigate future risks,” said Mr Sharif, adding that a number of global buyers would like to have diversified production sources in future rather than taking the risk of dealing with one country.

Pakistan has the comparative advantage in value added textiles, agriculture-based food processing and information technology, he said.

He told CEN it is critical for China to create support mechanisms for priority industrial sectors that can create the majority of jobs in Pakistan, such as agriculture, services and manufacturing.

Amid the COVID-19 pandemic, textiles, food processing and retail will be badly hit. A Small and Medium Enterprise (SME) fund to support these economic sectors will be extremely helpful to keep the momentum of CPEC going.

According to him, focus of CPEC should move towards human development and funds need to be allocated for expanding the health infrastructure as well as essential skills for the labor-force.

About Prime Minister Imran Khan’s public appeal to the Group of 20 (G20) for debt relief to the developing countries, Mr Sharif said it certainly carried weight and strengthened the case for deferral of debt payments till December 2020.

He said, “It is important to understand that there hasn’t been a debt write-off for and it is kind of a rescheduling of repayments. Using it as “debt relief” may cause confusion among general public.”

According to Mr Sharif, this bilateral relief by the International Development Association (IDA) is likely to be extended for one more year. The G20 leaders have appealed to the commercial lenders including global pension and hedge funds to follow the same path.

Sharif said that Pakistan’s foreign debt is around 110 billion U.S. dollars and this year’s repayments are in the range of $10 billion.

This debt suspension will ease pressure on the external account for one year and the overall relaxation of repayments will be in the range of $1 to $2 billion.

Pakistan is likely to reach out to the bilateral lenders including China for deferral of loan payments. Mr Sharif said, “China should look at a potential debt write-off.”

If Pakistan manages to reschedule the debt, it will prove fair amount of fiscal space to focus on the revival of economy which has been badly hit due to COVID-19 pandemic.

It is pertinent to point out that Pakistan’s domestic debt is three times more than the international debt, said Mr Sharif.

He added, while debt relief will ease pressures on government’s fiscal position, investments will be needed to revive the job creating industries.

According to Mr Sharif, the current debt suspension will further ease pressure on the current account, however, the fiscal deficit, is likely to be very high above 9 percent of GDP due to low tax revenues and high expenditures on health and cash transfers to the poor.

Pakistan’s GDP growth is likely to go down to 1 percent in 2020. The recent interest rate cuts will ease some pressure on the fiscal deficit, according to Mr Sharif.

So, it is a testing time for everyone and Pakistan will certainly be looking forward to targeted support from the best friend China, said Mr Sharif.

He said, China has clearly shown global leadership in dealing with this pandemic and it is expected that China will continue its leadership in ensuring regional stability especially in the Belt and Road initiative partner countries. This will prove to the world the real meaning of the term – a community with a shared future for mankind.

DNA

TEHRAN: Iran’s President Hassan Rouhani said in a phone conversation with Pakistan’s Prime Minister Imran Khan on Wednesday that Iran is interested in trade ties with Pakistan and the the neighboring countries, especially cross-border exchange of goods.

President Rouhani and Prime Minister Imran Khan called for the development and deepening of relations between the two countries and stressed the need to share experiences, knowledge and technology to combat and control coronavirus.

The two sides also stressed the need to reactivate borders and border markets and strengthen trade ties in line with health guidelines.

During the telephone conversation, the two heads of governments condemned any prejudice and pressure against Muslims and expressed their support in this regard.

Rouhani praised Pakistan’s stance on opposing US sanctions against Iran and expressed hope that the two countries would further develop their trade and economic ties.

He said that reopening of border markets of the two countries with full observance of health protocols as contributing to the development of trade and economic relations between Tehran and Islamabad and added, “We are interested in exchanging goods and trade with Pakistan as well as with some neighboring countries through border markets.”

Congratulating the Pakistani government and people on the holy month of Ramadan, Rouhani expressed hope that the two countries’ joint agreements would be implemented and made operational in favor of the two nations.

Imran Khan emphasized the development and deepening of relations with Iran, especially economic and trade cooperation, and welcomed the resumption of trade activities on the borders of the two countries and the activity of border markets by observing health protocols, saying, “The two countries’ trade exchanges will greatly help Pakistan’s economy, which has been affected by coronavirus.”

Imran Khan condemned the US imposition of sanctions and increased economic pressure on Iran in the difficult situation that the world is facing with coronavirus, adding, “I consider it my duty to support Iran in the face of US illegal actions.”