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21/04/2021

ISLAMABAD:
The Tehreek-e-Labbaik Pakistan (TLP) on Tuesday called off its violent protests after the federal government tabled a resolution in parliament to debate the French ambassador's expulsion.

However, the government decided against lifting the ban on the TLP it had imposed for the group staging violence across the country for almost a week.

Nor would it withdraw the cases registered against the banned outfit's activists for murdering policemen.

During a meeting of the PTI parliamentary party chaired by Prime Minister Imran Khan, Interior Minister Sheikh Rashid and Religious Affairs Minister Noorul Haq Qadri briefed the participants about the understanding reached with the TLP.

They said the TLP had agreed to end its protest across the country after the government accepted its demand to table a resolution in the National Assembly on whether or not the French ambassador should be expelled from the country.

The government has also given the nod to release its chief, Saad Rizvi, whose arrest triggered the unrest, and other party activists and supporters detained under the Maintenance of Public Order and on terrorism charges.

The TLP spokesperson confirmed that Rizvi had been set free from custody but an official denied this development.

However, those booked for murder would have to approach the courts.

Also read: Govt under fire for mishandling TLP crisis

In a post-cabinet briefing, Information Minister Fawad Chaudhry said the murderers of the four policemen killed in clashes with the TLP could not be forgiven.

“They [murderers] will have to go to courts,” he added.

The premier noted during the meeting that the nation was united on the issue of Namoos-e-Risalat.

“Even though the purpose behind the TLP's protest was right, the manner in which it chose to act was inappropriate,” he added.

The prime minister stressed the need for a global solution to the issue of blasphemy.

He also congratulated Rashid for achieving success in the talks and directed him to continue working for peace in the country.

Earlier, Rashid announced that the government had agreed “after long negotiations with the TLP” to put a resolution before parliament on whether or not it should expel the French ambassador.

All criminal cases registered against the TLP would also be withdrawn as a result of the agreement with the group, which in return would end its protests.

“The TLP will end its protests across the country including at Jamia Masjid Rehmatul-lil-Alamin [in Lahore],” the minister said.

“Cases registered against TLP supporters under the Fourth Schedule [of the anti-terrorism law] will also be dismissed and further rounds of talks will take place,” he added.

Later on Tuesday, a resolution calling for a debate on the envoy's expulsion was presented in a specially-convened session of the National Assembly.

NA Speaker Asad Qaiser presided over the session during which MNA Amjad Ali Khan presented the resolution.

It stated that blasphemous sketches were published by a French magazine, and then the French president Emmanuel Macron’s remarks hurt the sentiments of hundreds of millions of Muslims in the name of freedom of expression.

"The House condemns the publication of insulting sketches by the controversial French magazine Charlie Hebdo and Muslims around the world had also expressed outrage at the publication of the sketches," the resolution added.

Also read: Govt tables resolution in National Assembly on French ambassador expulsion

The resolution also asked for a debate over the issue of deporting the French ambassador and also proposed to provide spaces in different parts of the country for protests on religious issues.

It added that instead of blocking roads, specific places for protests should be identified.

“All Muslim countries should be consulted on the issue and all European countries in general and France, in particular, should be made aware of the seriousness of the issue,” the resolution added.

Minister for Parliamentary Affairs Ali Muhammad Khan also moved a motion to form a parliamentary committee on the issue. The house was then adjourned till Friday.

Opposition members protested, demanding details of the agreement with the TLP.

PPP Information Secretary Dr Nafisa Shah said the government had postponed the session for two days but then "suddenly" called it.

“Some [PPP] parliamentarians are not present in Islamabad. At this time, the decision has been taken that PPP will not take part in the session,” she added.

Speaking of the development, PPP Chairman Bilawal Bhutto claimed in a tweet that the ruling PTI was trying to "hide behind the NA [National Assembly]" after 'mishandling' the situation".

"Agreement wasn’t brought to NA, Govt took action on streets, then banned, people killed, over 500 policemen injured, closed internet, PM didn’t make statement in NA, didn’t take NA into confidence at any stage," Bilawal stated.

"It's your mess PM, clean up or go home," the PPP chairman added.

Later, the TLP responded by releasing an audio statement of its spokesperson Shafiq Amini saying: "It is requested to end protests wherever they are happening across the country.”

The spokesperson added that the government had kept its end of the promise by tabling a bill on the expulsion of the French ambassador.

France has already advised its citizens to temporarily leave Pakistan. Ahmed Bilal Mehboob, a political analyst, told Reuters the government wanted to take the matter of the French envoy's expulsion to the parliament, "so they can say they have consulted with them and whatever step they take has a consensus behind it".

The government's apparent acceptance of the militants' demands would be seen as a victory for the Islamists, said author and analyst Khaled Ahmed.

“The government's retreat from its stance and agreement indicate that none of the institutions can stand against them," he added.

The proscribed TLP has called off nationwide protests, including a sit-in in Lahore, after the federal government tabled a resolution in the National Assembly

21/04/2021

ISLAMABAD:
Jordan considers Pakistan’s defence sector as a strategic industry, said Jordanian Ambassador to Pakistan Ibrahim Almadani, who was greatly impressed to see the quality of Pakistan’s defence industry products.

During his visit to the Defence Export Promotion Organisation (DEPO) along with Islamabad Chamber of Commerce and Industry (ICCI) President Sardar Yasir Ilyas Khan, the envoy said that Jordan considered Pakistan’s defence capability as a source of strength for it.

He stated that Jordan could learn from the expertise and competency of Pakistan in the field of defence. DEPO Acting Director-General Commodore Naeem Anwar briefed the ambassador and the ICCI chief about Pakistan’s defence products and services.

He said Pakistan’s defence manufacturing sector was capable of meeting bulk requirements of foreign customers in the areas of medium technology as well as selected areas of high technology. He added that Pakistan could offer high-grade weapon systems, basic and advanced trainers and jet fighters, surface-to-air and anti-tank missile systems.

Published in The Express Tribune, April 20th, 2021.

Envoy says Amman can learn from competency of Pakistan

21/04/2021

KARACHI:
Foreign investment in different sectors of Pakistan’s economy like power, telecoms, financial business and oil and gas production dropped 40% to $167.6 million in March 2021.

Foreign direct investment (FDI) had stood at $278.7 million in the same period of previous fiscal year, the State Bank of Pakistan (SBP) reported on Monday.

China made the largest net investment of $126 million, mostly in the power sector, in March 2021.

Cumulatively, in the first nine months (Jul-Mar) of current fiscal year 2020-21, the FDI inflows dropped 35% to $1.39 billion compared to $2.15 billion in the same period of last year.

Talking to The Express Tribune the other day, Overseas Investors Chamber of Commerce and Industry (OICCI) Secretary General M Abdul Aleem said that the cumulative investment numbers for FY21 were not bad considering the fact that the world, including Pakistan, was passing through shocking times of the Covid-19 pandemic.

The pandemic had put on hold new investment decisions throughout the world, which also caused a drop in fresh foreign investment in Pakistan as well. Secondly, there was a change in the government’s strategy as it was now attracting foreign investment in export sectors of the country instead of continuing to invite investment in import-based consumption sectors, it was learnt.

The change in the strategy is aimed at supporting Pakistan’s faltering economy. A significant imbalance between the country’s higher import payments and lower export earnings has caused a massive surge in its foreign debt over the years, which has significantly impacted the country’s foreign currency reserves and weakened its capacity to make international payments.

An official, who was working in close coordination with global investors, said that he had received a number of new investment queries for different sectors including the fast moving consumer goods (FMCG), textile, hospitality and services even during the Covid-19 pandemic.

He, however, said that Pakistan needed to better market its potential export sectors to woo global investors. The world is expected to return to normalcy in June-July 2021 as a significant part of its population, mostly in Western countries, will be vaccinated by then, which will allow different nations to fully reopen from lockdowns and ramp up economic activities.

This development will also allow foreign investors to reconsider their investment plans for emerging markets including Pakistan.

He said, “Pakistan has a huge potential to attract foreign investment in a number of new sectors considering it is a growing market for a majority of sectors of the national economy.” FDI in Pakistan has so far remained concentrated in a few non-export manufacturing and services sectors, such as power, construction, financial business, oil and gas exploration, electric machinery and telecommunications.

“In the first quarter (Jul-Sept) of the current fiscal year, these sectors attracted around 90% of the total FDI, while investment in the key export sectors such as textile, food and leather products had a very little share in the total investment,” the central bank said in January.

“This suggests the need to continue promoting foreign investment in export-oriented manufacturing sectors to further boost overall exports.”

China was the largest foreign investor in Pakistan. It poured a net $651 million in the first nine months of FY21, followed by Hong Kong, which invested a net $106 million. The United Kingdom invested $105 million.

China, Norway, Malta and Hong Kong had taken top positions among foreign investors in the same nine-month period of last year. They had invested $859 million, $289 million, $167 million and $135 million respectively during the period.

Published in The Express Tribune, April 20th, 2021.

China largest foreign investor with injection of $126m, mainly in power sector

21/04/2021

ISLAMABAD:
The government has decided to establish an appellate tribunal by amending the Oil and Gas Regulatory Authority (Ogra) Ordinance 2002 in order to give provinces representation in dealing with disputes in the oil and gas sector.

The tribunal will comprise members from provinces, will work as a court and will have powers as vested in such a court under the Code of Civil Procedure.

It will have powers to enforce the attendance of any person and examine him on oath, and compel the production of documents.

It will issue orders for the examination of documents and witnesses. No other court shall issue injunction, make any order or entertain any proceedings in respect of any matter to which the jurisdiction of appellate tribunal extends.

In relation to any decision of the authority concerning a regulated activity, the appellate tribunal will be able to direct the authority to refrain from doing anything not permitted by law to do or to do anything the authority is required by law to do or declare that the act or proceedings by the authority has been done or taken without lawful authority and is of no legal effect.

Sources told The Express Tribune that provinces, especially Sindh, had pressed the federal government to give them representation in Ogra following the model of National Electric Power Regulatory Authority (Nepra).

In Nepra, the provinces have due representation but there is no representation of provinces in the oil and gas regulator - Ogra.

Following the demand of provinces, the government has decided to establish an appellate tribunal that will comprise members from all provinces to deal with affairs of the oil and gas sector.

The government will introduce a bill in parliament to approve the Ogra (Amendment) Act 2021.

The federal government will, by notification in the official gazette, establish the appellate tribunal for the purpose of exercising powers vested to the tribunal under this ordinance.

Composition of tribunal

The tribunal will consist of a chairperson, member (technical), member (finance), member (legal) to be appointed by the federal government and four other members representing the four provinces to be nominated by the respective provinces.

The federal government will appoint the chairperson and other members of the tribunal from amongst persons of eminence in the oil and natural gas industry, finance and law with at least 20 years of experience.

No chairperson or member shall be removed from office unless the federal government, after holding an inquiry by a committee constituted for the purpose and in accordance with such procedure as may be prescribed in this regard, is satisfied that such person ought on such ground or grounds to be removed.

Decisions, orders and quorum

Decisions of the appellate tribunal will be taken by the majority of members present and voting, and in the event of equality of votes, the chairperson or in his absence, the person presiding will have a second or casting vote.

Secondly, all orders and decisions of the appellate tribunal shall be authenticated by the registrar or any other officer of the authority duly authorised by the chairperson.

Thirdly, if there are less than five members of the appellate tribunal, the presence of four members serving shall constitute a quorum. Any decision taken in a meeting where the quorum is present will constitute a valid and enforceable decision. If the position of a member becomes vacant, the federal government shall fill the vacancy in the appellate tribunal within a period of three months from the date such vacancy occurs.

Appellate procedures

Any person aggrieved by a decision or order of the authority under Section 13 may, within 30 days of the decision or order, prefer an appeal to the appellate tribunal in the prescribed manner and the appellate tribunal will decide such appeal within three months after the filing of the appeal.

The decision of the appellate tribunal will be in writing, detailing the issues raised in the appeal and the arguments adopted by the appellant and the authority, as the case may be.

“The tribunal shall also provide reasons for reaching its decision with reference to every case in which, on application under sub-section (2), the appellate tribunal has made an interim order shall be disposed of by the appellate tribunal on merits within six months from the day on which it is made, unless the appellate tribunal is prevented from doing so for sufficient grounds to be recorded.”

Published in The Express Tribune, April 20th, 2021.

Decides to set up appellate tribunal to deal with disputes in oil and gas sector

21/04/2021

ISLAMABAD:
The United Arab Emirates (UAE) has rolled over $2 billion loan it had provided to Pakistan as part of the financial bailout package after the PTI formed the government in August 2018.

The loan was matured in March and the incumbent government was worried that like Saudi Arabia, the UAE might ask Pakistan to return the money.

However, the official statement issued on Tuesday after talks between Foreign Minister Shah Mahmood Qureshi and his UAE counterpart Sheikh Abdullah bin Zayed Al Nahyan confirmed that the $2 billion loan had been rolled over.

The news would come as big relief for the PTI government as it needs this favour from the UAE to shore up its foreign exchange reserves.

The official handout said FM Qureshi thanked the UAE for its continued support and cooperation bilaterally, as well as at the international fora. Pronouncing the UAE’s decision to roll over the $2 billion deposit by the Abu Dhabi Fund, Foreign Minister Abdullah affirmed the UAE’s commitment to extend every possible support to Pakistan. Qureshi thanked his counterpart, underscoring that the decision reflected the warm and brotherly ties between the two countries.

The development also suggested that friction between Pakistan and Gulf countries over certain issues is now easing. Saudi Crown Prince Muhammad Bin Salman also recently telephoned Prime Minister Imran Khan to invite him to the kingdom. The prime minister is expected to soon travel to Saudi Arabia.

Although, the UAE rolled over loan, there was no apparent breakthrough on the issue of work visas for Pakistan. The UAE has banned work visas for Pakistan since November last year.

The official statement only mentioned FM Qureshi lauding the positive contribution of Pakistani diaspora in the UAE towards the development and progress of both countries.

Also read: Pakistan, India FMs’ presence in UAE sets off speculations

He emphasised the need for nurturing and strengthening people-to-people linkages, as well as removing impediments that hamper travel between the two countries.

Foreign Minister Qureshi appreciated the UAE progress and development over the last five decades.

He attributed this achievement to the sagacious and visionary leadership of the nation. Foreign Minister Abdullah thanked him and acknowledged the valuable role played by Pakistani diaspora in the UAE’s growth and prosperity.

The two foreign ministers reaffirmed their mutual desire to further strengthen cordial relations between the two nations. They reviewed the entire gamut of bilateral relations, discussing ways to enhance cooperation in diverse areas including trade, investment, infrastructure, energy, technology, tourism and manpower.

FM Qureshi outlined his plans for showcasing the history as well as the future potential of Pakistan-UAE cooperation at EXPO 2020 Dubai in October 2021.

The two foreign ministers also discussed ways to provide fresh impetus to existing Pakistan-UAE ties. In this regard, they agreed to facilitate ministerial level visits from both sides.

They also exchanged views on regional and global issues of mutual interest. Qureshi briefed his counterpart on the grave human rights situation in the Indian Illegally Occupied Jammu and Kashmir (IIOJK) and Pakistan’s consistent efforts to support the ongoing peace and reconciliation process in Afghanistan.

Expressing sincere appreciation for UAE’s warm hospitality, Qureshi reiterated his invitation to Foreign Minister Abdullah to visit Pakistan at the earliest opportunity. FM Abdullah graciously accepted the invitation.

Concluding his visit to the UAE (from 17th to 19th April), Foreign Minister Qureshi departed the UAE today (Tuesday).

In addition to his official engagements, the foreign minister met Pakistan Business Council, members of the Pakistani community, including investors and businessmen, in Dubai and interacted with local and international media in Abu Dhabi and Dubai.

Also read: FM Qureshi concludes visit to UAE, leaves for Iran

He also visited EXPO 2020 Dubai and the Pakistan Pavilion being set up to showcase the potential of Pakistan in the region’s biggest ever exposition organised by the UAE.

Pakistan and the UAE enjoy close fraternal ties for almost five decades that are rooted firmly in common belief and shared values and culture. The relationship is marked by high-level visits and interactions that provide continuous momentum to bilateral cooperation. This was foreign minister’s second visit to the UAE in the past five months.

Meanwhile, in the next leg of his four-day visit, Foreign Minister Qureshi on Tuesday left for Iran. He will hold talks with his Iranian counterpart as well as call on the Iranian president. Qureshi is also due to visit Qatar and Turkey as part of Pakistan’s diplomatic outreach on the issue of Afghanistan.

UAE has rolled over $2 billion loan it had provided to Pakistan as part of the financial bailout package after the PTI formed the government in August 2018

21/04/2021

ISLAMABAD:
Unmoved by increasing calls to review its “harsh” conditions, the International Monetary Fund (IMF) on Monday urged Pakistan to implement tax and energy reforms aimed at bringing down a very high public debt and making power sector financially viable.

The IMF programme objectives continue to be part of the agenda that has to be addressed during the programme implementation, said IMF Resident Representative Teresa Daban Sanchez on Monday.

She outlined enhancing revenues and ending quasi-fiscal operations as core objectives of the IMF programme.

Sanchez was speaking at a webinar arranged by the Pakistan Institute of Development Economics (PIDE) under its series of “Future of Pakistan Economy with IMF Programme”.

The local IMF head repeatedly underlined the need for taking taxation and power tariff measures agreed with the IMF last month despite an ongoing third wave of Covid-19 and a call by Pakistan’s new Finance Minister Shaukat Tarin, other policy experts and politicians to renegotiate the IMF deal.

“Changes of finance ministers will not affect our approach and we are ready to work with Shaukat Tarin,” she said while responding to a question whether the Fund would renegotiate the programme. To another question on whether the three-year programme could be extended in case the IMF relaxed the time frame to implement the conditions, Sanchez said “there is still plenty of time to do many things and there is a need to focus on getting things done.”

The three-year IMF programme is going to expire in September next year.

Tarin, accompanied by Special Assistant to Prime Minister on Revenue Dr Waqar Masood, on Monday arrived in the Q-block and formally assumed his responsibilities.

“I will soon announce my priorities and have taken briefing on next year’s budget,” said Tarin in brief interaction with media after taking charge of office.

Masood may get a new role in the Q-block after his retirement as finance secretary over four years ago. The IMF country head said that general sales tax and personal income tax reforms should be implemented in the next fiscal year, “as we see an improvement in economy”.

“Power sector is in a situation that is very challenging and it requires continued reforms and taxation reforms also need to be continued,” said Sanchez.

“There are some reforms that need to be done whether Covid or no Covid like amendments to the National Electric Power Regulatory Authority (Nepra) and the State Bank of Pakistan (SBP) laws,” said the IMF country head.

The power sector “has become a micro critical issue and a lack of financial stability in the sector is affecting the economy”, she said.

The IMF local head again emphasised the need for implementing the circular debt management plan, which she said required aligning power tariffs with cost recovery, reduction in losses and automatic targeted subsidies.

The circular debt management plan seeks to increase electricity tariffs by Rs5.65 per unit or 36% within six months. Fiscal strategy needed to be sustainable, otherwise, it would pull Pakistan down in a very complicated manner, warned Sanchez. The public debt at 92.8% of GDP had increased to a level that was very high and required attention, she added.

“Pakistan’s 10% of tax-to-GDP ratio is one of the lowest in the world and it is very difficult to run a country of 220 million with this ratio,” said the resident representative.

However, the IMF has to share the blame for this ratio as increasing revenue is part of every IMF programme and it has yet continued compromising on tax targets and giving exemptions to the affluent class including tax amnesties during the course of programme implementation.

“The IMF has a very mechanical approach to increase taxes without understanding the impact of distorted tax policies on the economy like the distorted withholding tax that is killing the economy,” said PIDE Vice Chancellor Dr Nadeemul Haque, who is also a former IMF employee.

Former special finance secretary Mohsin Chandna and leading businessman Mohammad Bashir also criticised the IMF’s taxation policies.

Chandna, now serving as Inter-Provincial Coordination Secretary, urged the IMF to set realistic tax collection targets, saying the last two tax collection targets were highly unrealistic and being missed by wide margins.

“The programme performance is based on primary budget balance targets for making the debt sustainable and this has to be achieved through many instruments and revenue is the one,” said Sanchez. She said that Pakistan has to have an ambitious tax collection target.

For the next fiscal year, the government has projected Rs5.908 trillion tax target while the IMF has shown it at Rs5.963 trillion, which requires 27% growth and additional measures of around Rs600 billion.

“We feel that there is no ground reality in the new IMF policy for Pakistan and it looks the result of the direct interaction between the IMF and the FBR,” said Mohammad Bashir - a textile owner and member of Pakistan Business Council.

She guardedly supported central bank autonomy. “I am not an expert on central bank legislation but legal protection is a standard all over the world but it is limited to very few circumstances,” said Sanchez while commenting on a question on proposal to exempt the SBP from accountability.

“If the current policies are implemented, Pakistan can return to economic growth of 4%,” said Sanchez. To a question about 1.5% economic growth forecast by IMF this year as against Pakistan’s 3%, Teresa said that the economy was doing well and growth will probably be closer to what Pakistani authorities have announced.

Published in The Express Tribune, April 20th, 2021.

Official outlines enhancing revenue, ending quasi-fiscal operations as objectives

14/04/2021

I will suggest buying in Oil Stocks...Overall outlook for Oil & Gas Sector looks promising. I will share my suggestion on which stocks can be more profitable for short term Investment.

14/04/2021

Oil Up Over U.S. Crude Stockpiles Decrease, OPEC+ Optimism

Investing.com – Oil was up Wednesday morning in Asia, as investors cheered a decline in U.S. crude oil supplies. Rising numbers of COVID-19 cases and the latest hurdle in the COVID-19 vaccine program triggered fuel demand worries, however.

Brent oil futures gained 0.66% to $64.09 by 10:13 PM ET (2:13 AM GMT) and WTI futures rose 0.68% to $60.59, surpassing the $60 mark.

U.S. crude oil supply data from the American Petroleum Institute showed a draw of 3.608 million barrels for the week ending Apr. 9. Forecasts prepared by Investing.com had predicted a draw of 2.15 million barrels, while a 2.618-barrel-draw was recorded during the previous week.

Supply data from the U.S. Energy Information Administration is due later in the day, which is widely expected to confirm a third consecutive weekly draw.

The Organization of Petroleum Exporting Countries and allies (OPEC+)’s monthly report, released on Tuesday, boosted consumption forecast for 2021 and predicted the market recovery will continue in the coming months.

The report added that increasing consumption should help to keep stockpiles low, even as the cartel prepares to ease production curbs from May onwards.

“It was a welcome prognosis by the market, which had been fretting about the impact the ongoing COVID-19 was having on demand,” ANZ Research analysts said in a note.

COVID-19 could still have the last word, however, as some countries struggle to contain new waves of the virus. India, the third-largest oil importer globally, continues to see high numbers of cases in its second wave,

The global COVID-19 vaccine rollout has also hit a bump in the road, as the U.S. Centers for Disease Control and Prevention and FDA on Tuesday hit pause on the use of the Johnson & Johnson (NYSE:JNJ) offering. The pair halted the rollout after six women who received it developed a rare and severe form of blood clotting, and the pause is expected to last for a few days.

14/04/2021

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