Pakistan to enjoy GSP+ till 2022; EU mission arrives in Islamabad to discuss

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June 22, 2022

ISLAMABAD: Pakistan will continue to enjoy Generalized System of Preferences plus (GSP +) status of the European Union (EU) till 2022, after which the EU will announce new criteria to qualify for the scheme.

The European Union Monitoring Mission has landed in Islamabad for ten days (June 20-30, 2022) to discuss the development and progress of the scheme.

A detailed briefing will be give to the Federal Cabinet on Tuesday (today) on GSP+ related unresolved issues and prospects for a new GSP scheme starting from next year.

Last year, the EU on extending the GSP plus status for Pakistan, added six new Conventions along with expressing its concerns about situation of human rights, press freedom, death penalty and child labour related issues.

Minister for Commerce, Syed Naveed Qamar, who recently visited a few EU member countries’ capitals to muster support for a new scheme, will also brief the Cabinet on his efforts and observation made by the EU countries on incomplete Conventions.

The EU Monitoring Mission will discuss the developments and progress made on implementation of 27 International Conventions concerning GSP+ since 2020 onwards in separate meetings with the relevant stakeholders reflecting the four charters, i.e., human rights, labour rights, environment and good governance.

In view of the immense significance of the Monitoring Mission’s visit for continuation of GSP+ unilateral concessions utilized by Pakistan, it was decided in the meeting of the Treaty Implementation Cell (TIC) on June 14, 2022 that the stakeholders concerned may firm up a solid narrative for presentation to the Monitoring Mission.

To move forward with the objective of seeking an extension to the GSP plus the Attorney General for Pakistan, the Convener of TIC, held a meeting on Monday which was attended by all concerned officials including a senior representative of National Accountability Bureau (NAB).

For new GSP Scheme (2024 -34), the European Commission published the legislation for GSP scheme (2024- 34) on September 22, 2021.

The new proposed scheme aims to improve key features of the scheme to better respond to the evolving needs and challenges of GSP countries, as well as, reinforce the scheme’s social, labour, environmental and climate dimension. It will be in place for ten years. There is an expansion in the list of International Conventions from 27 to 32 that beneficiary countries will have to ratify and implement.

The five new Conventions include the following: (i) two new instruments on human rights on the Convention on the Rights of Persons with Disabilities (CRPD) and the Optional Protocol to the Convention on the Rights of the Child on the Involvement of Children in Armed Conflict (OP-CRC-AC) ;(ii) two new instruments on labour rights including ILO Convention No. 81 on Labour Inspection and ILO Convention No. 144 on Tripartite Consultation; (iii) One new instrument on governance on the UN Convention Against Trans-national Organized Crime; and (iv) one new instrument on climate change on the Paris Agreement on Climate Change (2015), replacing the Kyoto Protocol (1997).

In connection to (iii) strengthening and streamlining of the monitoring and compliance mechanism includes increased transparency and involvement of civil society, rapid response mechanism for urgent withdrawal of preferences procedure for systemic violations and expansion of the monitoring cycle from 2 to 3 years. The scheme also provides for transitional arrangements for current GSP Plus beneficiaries, who will have to fulfil the new requirements.

GSP + incentive provides many Pakistani export-oriented products including garments, bed linen, terry towels, hosiery, leather, sports & surgical goods, etc., duty free access in the EU market. As a result of this arrangement, Pakistan’s exports to EU increased from $ 6.094 billion in 2013-14 to $ 7.965 billion in 2018-19. However, due to Covid-19 crisis the bilateral trade register decline in the last two years. In financial year, 2020-21 bilateral trade stood at $ 10.883 billion with Pakistan’s exports to EU amounting to $ 6.9186 billion, with imports from EU estimated at $ 3.9644 billion and trade balance at $ 2.9542 billion in favour of Pakistan.

The EU and Pakistan have set up a Sub-Group on Trade to promote the development of two-way trade. The Sub-Group on Trade set up under the auspices of the EU-Pakistan Joint Commission is the forum for discussions on trade policy and developments more broadly and also aims to tackle individual market access issues which hamper trade between the two parties.

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Important progress made over budget of fiscal year 2022-23: IMF

By

Palwasha Mustafa

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June 22, 2022

ISLAMABAD: Esther Perez Ruiz, Resident Chief of International Monetary Fund (IMF) revealed that important breakthrough was achieved on the budget of fiscal year 2022-23.

“Discussions between the Fund staff and Pakistan on policies to strengthen macro-economic stability in the coming year continue to strengthen macro-economic stability in the coming year continue with Pakistan”, Ruiz said in a statement.

She said that progress was achieved in talks with Pakistan for the revival of the $6 billion loan facility stalled since months due to policy breaches by the previous government.

The latest development comes a day after Federal Minister for Revenue and Finance Miftah Ismail had indicated the revival of the agreement with IMF within a day or two.

“I am very hopeful that the IMF programme will be revived soon,” Miftah Ismail said while talking to media.

Following the downward trend of the Pakistani rupee against the US dollar, the breakthrough with the lender is of utmost importance to steer the country out of the ongoing economic crisis.

To meet the conditions of the IMF, the government had to take some tough measures, such as banning the import of certain items and removing subsidies that resulted in an unprecedented hike in POL [petrol, oil, lubricants].

The IMF will now share a draft Memorandum of Economic and Financial Policies (MEFP) on coming Friday or Monday.

In the next few days, the IMF and SBP will work out modalities on monetary targets, including further tightening of monetary policy, net international reserves and net domestic assets.

The Federal Government has fulfilled the demands of the IMF and accepted to slap Rs1,200 tax on salary earner of Rs50,000 to Rs100,000.

“The government made all-out efforts to convince the IMF but failed to do so. The FBR target has been proposed to be increased from Rs7,004 billion to Rs7,442 billion for the next fiscal. The expenditure target was revised downwards, so the revenue surplus of Rs152 billion would be achieved,” the report said.

The sources said the petroleum levy has also been readjusted as the levy of Rs5 per litre will be imposed. This would be gradually increased up to Rs30 per litre instead of Rs50 per litre. The petroleum levy target has been slashed down from Rs750 billion to Rs550 billion.

The government has also agreed to impose 1% poverty tax on firms earning Rs150 million, 2% on those earning Rs200m, 3% on over Rs250m and 4% on Rs300m above, according to a Daily Dawn report, which was only 2% on those earning Rs300m and above.

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Prime Minister Shehbaz Sharif summons federal cabinet meeting on Tuesday

By

Nuzhat Aftab

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June 21, 2022

ISLAMABAD: Prime Minister Shehbaz Sharif has summoned the federal cabinet meeting to be held today (Tuesday) in Islamabad to discuss economic and political situation in the country.

Prime Minister Shehbaz Sharif will preside over the federal cabinet meeting to be held at the Prime Minister’s office. The cabinet will discuss a seven-point agenda during the meeting.

The Cabinet will discuss the prices of medicines as part of the agenda of the cabinet meeting while it will also ratify the decisions of the Economic Coordination Committee (ECC).

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PM decides to provide five basic commodities at low rates to poor

By

Tanzeel Ahmed

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June 20, 2022

ISLAMABAD: Prime Minister Shehbaz on Monday decided in principle to provide flour, ghee, cooking oil, pulses, rice and sugar at a low price to the poor segment of society for the next financial year.

Presiding over a high-level meeting on utility stores in Islamabad on Monday, he said the poor segment of society is in dire need of relief at this time, and the government will take all measures in this regard.

The Prime Minister also approved the expansion of utility stores network in Karachi. He asked the authorities concerned to present a comprehensive plan to increase the number of utility stores in Karachi within two weeks.

Shehbaz Sharif directed to make the subsidy system transparent and digital. He asked to create a comprehensive system by combining various types of subsidies.

He appreciated the initiatives of utility stores in Khyber Pakhtunkhwa and Balochistan. He also appreciated the provision of targeted subsidy with the help of digital system.

The meeting was briefed on the progress made on subsidy on utility stores, targeted subsidy to the poor, expansion of number of utility stores across the country and provision of low price flour in Khyber Pakhtunkhwa.

The meeting was informed that the Utility Store Corporation is currently operating 3822 stores directly and 1380 franchises in the country. It was apprised that more than 300 new stores will be set up in Balochistan, Sindh, Kashmir, Gilgit-Baltistan and Punjab by 30th of the next month.

The meeting was briefed that under the relief package of Prime Minister Shahbaz Sharif, 113 million deserving people have been benefited so far. They have been given targeted subsidy of 60 rupees per kg on flour, 21 rupees on sugar, 250 rupees on ghee and 15-20 rupees on pulses and rice. The subsidy mechanism is digital whereas NADRA and the Ministry of Poverty Alleviation are linked to the data.

The meeting was further informed that supply of low price flour is being ensured at 942 utility stores in Khyber Pakhtunkhwa. On the special directive of Prime Minister Shehbaz Sharif, 1000 new selling points and 200 mobile stores are also being added.

In Balochistan, subsidized supply of essential commodities is being ensured not only utility stores but mobile stores have also been set up to ensure the supply to remote areas.

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Aleem wealthier than Hamza, Buzdar combined

By

Palwasha Mustafa

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June 20, 2022

LAHORE: Pakistan Tehreek-e-Insaf (PTI) dissident leader Aleem Khan has accumulated more assets than the incumbent Punjab Chief Minister Hamza Shehbaz and former CM Usman Buzdar, according to the asset details of the provincial assembly members.

The Election Commission of Pakistan (ECP) has released asset details of the Punjab Assembly members.

According to the list, Punjab Chief Minister Hamza owns assets worth Rs410.43 million, while his predecessor Buzdar is in possession of assets amounting to Rs50.80 million. But dissident PTI leader and ex-MPA Aleem Khan (who has been de-seated on May 20, 2022 after the ruling of the election commission on PTI rebel members) has declared assets worth more than Rs1.70 billion.

Chief Minister Hamza has declared assets worth Rs410.43 million which also included 11 residential houses worth Rs130.64 million. He has three agricultural lands worth Rs30.97 million. He also declared himself in debt of Rs90.71 million.

CM Hamza’s first wife Mehrun Nisa owns assets worth Rs5 million. His second wife Rabia Hamza possesses wealth worth Rs30.74 million.

Former Punjab chief minister Buzdar has declared assets worth Rs50.80 million.

Aleem Khan’s declared assets are worth more than Rs1.70 billion.

Former provincial minister Murad Raas owns assets worth Rs380 million. Whereas Mian Mehmoodur Rashid is in possession of assets worth more than Rs180 million.

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Roof collapse kills three in Karachi

By

Sameena Umar

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June 20, 2022

KARACHI: A roof collapse in Keamari area of Karachi has killed three female including a mother and two daughters of same family on Monday.

According to details, the roof collapsed during renovation and killed a 30-year-old women and her two daughters.

Husband of the victim stated that extra weight was placed on the roof due to construction work.

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Anti-Corruption Establishment registers cases against Usman Buzdar

By

Qamar Malik

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June 20, 2022

LAHORE: Punjab Anti-Corruption Establishment (ACE) on Monday registered cases against the former Punjab chief minister Usman Buzdar along with his brothers for transferring 900 kanals of land illegally in Dera Ghazi Khan.

As per details, two cases have been registered against the Pakistan Tehreek-e-Insaf (PTI) leader. The cases have been filed on the inquiry report of Deputy Commissioner of DG Khan.

As per sources, Usman Buzdar’s brothers have also been included in the cases. While it was also revealed that the provisions of transferring government land through forgery have been included in the cases.

The allegation includes forging a fake letter to transfer 900 kanals of government land in Tonsa. While investigations regarding the matter have been commenced.

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Security forces kill six BLF terrorists in Makran IBO: ISPR

By

Tanzeel Ahmed

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June 20, 2022

RAWALPINDI: Security forces killed six terrorists belonging to a banned outfit Balochistan Liberation Front (BLF) in an intelligence-based operation (IBO) in Balochistan’s Central Makran area, the military’s media affairs wing said.

In a statement, the Inter-Services Public Relations (ISPR) said the IBO was conducted on the information of the presence of terrorists in the general area of Central Makran Mountain Range, near Paroom, Balochistan.

It added that the security forces conducted an operation to apprehend them but once the troops started a clearance operation in the area, terrorists tried to escape from their hideout and opened fire on security forces while in exchange of firing six terrorists were killed.

“These terrorists were involved in attacks on Security Forces Posts besides recent planting of IEDs on Security forces convoys in Proom and surrounding areas of Panjgur,” the ISPR said.

In addition, arms and ammunition have also been recovered which were intended to be used by the terrorists for disrupting peace and security in the area.

“Security Forces, in step with the nation, remain determined to thwart attempts at sabotaging peace, stability and progress of Balochistan,” the statement said.

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Ramzan Sugar Mills Case: PM granted permanent exemption from appearance

By

Asifa Farhat

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June 20, 2022

LAHORE: An Accountability Court in Lahore on Monday granted permanent exemption from personal appearance in Ramazan Sugar Mills case to Prime Minister of Pakistan and Pakistan Muslim League-Nawaz (PML-N) president and Shehbaz Sharif.

Pronouncing the reserved verdict, the Acciuntability Court has approved the petition filed by the PM Shehbaz Sharif for permanent exemption from appearance in Ramzan Sugar Mills’ reference

Earlier, PM Shehbaz Sharif appeared before an accountability court in Lahore in case related to the Ramazan Sugar Mills. The judge of Accountability Court Sajid Ali Awan conducted the hearing.

In the proceedings on Monday, Shehbaz Sharif’s lawyer completed his arguments regarding PM’s permanent exemption from personally attending the hearings. Shehbaz’s lawyer prayed to the court to allow PM’s representative Mohammad Nawaz to appear in court in his place.

“Shehbaz Sharif is the prime minister of Pakistan, he has never taken any wrong advantage of the bail,” he said.

While talking on the rostrum, PM Shehbaz said that my schedule regarding the national duties is not hidden and if my plea will be rejected, “I will keep on appearing before the court.”

He said that he approved to apply taxes on sugar mills and his son’s sugar mills also bore loss of 2.5 billion rupees.

On the other hand, National Accountability Bureau (NAB) prosecutor objected the PM’s application of exemption from attending the hearing permanently. He said that no solid reasons have been given by Shehbaz Sharif’s lawyer from which he can be granted exemption from attending the hearings. While he also added that Shehbaz’s medical certificate is also not submitted with the application.

It is pertinent to mention here that the Punjab Chief Minister Hamza Shahbaz filed an application seeking exemption from personal appearance in Monday’s hearing due to budget engagements.

PM Shehbaz and CM Hamza were indicted in the Ramzan Sugar Mills case in 2020.

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US consented to help Pakistan to negotiate deal with IMF: report

By

Palwasha Mustafa

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June 20, 2022

ISLAMABAD: Washington has consented to help Islamabad negotiate a deal with International Monetary Fund (IMF), after Pakistan requested the United States in this regard.

Finance Minister Miftah Ismail and State Minister for Finance Aisha Ghaus Pasha held a meeting with US ambassador in which they sought US help.

The diplomatic sources said that it would not be sufficient as Islamabad would have to establish “contacts” with the US Treasury high-ups to muster up the required support after evolving a consensus on the framework on the basis of which both sides could make progress for signing a memorandum of financial and economic policies (MEFP) document.

MEEP is a prerequisite for moving towards the signing of the staff-level agreement as it provides the basis of a framework on which both sides evolve consensus.

“Without broader agreement on the basis of framework, no one could help Pakistan,” the official had said.

As per the publication’s report, Pakistan sought help from the US as the global lender has yet to agree to a staff-level pact despite the government having taken many difficult steps and Washington has a considerable influence over the IMF’s decision-making as the largest shareholder.

A report also stated Pakistan has not yet received the first draft of MEFP from the IMF as targeted earlier because certain matters remained unsettled. “We are working very closely with the IMF and will soon reach some conclusion,” a top finance ministry official said.

The authorities in the finance ministry were expected to conclude the staff-level agreement by Sunday (June 19) on the basis of revenue and expenditure measures that could deliver next year’s primary budget (the difference between revenues and expenditures, excluding interest payment) in Rs152 billion surplus.

The government took the toughest measures to end fuel subsidies and hiked the POL [petrol, oil, lubricants] prices up to unprecedented levels in order to convince the Fund to revive the programme. However, the IMF is still insisting on doing more knowingly that Islamabad has turned into a ‘desperate borrower’ mainly owing to the depletion of foreign currency reserves.

The Fund still has reservations over Rs9.5 trillion expenditures projected by the authorities for the next fiscal year. The revenue measures in the budget, according to IMF estimates, are also insufficient to deliver slightly over Rs7 trillion target.

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