GSP Plus: EU team takes up targets
tied to 27 Conventions:
The European Union (EU) Review Mission
Monday held meetings with Chairman National Commission for Human Rights (NCHR),
Justice Ali Nawaz Chohan, Commerce Minister Khurram Dastagir and top officials
of Climate Change Division to discuss progress on the targets agreed between
the government and the EU on 27 Conventions linked to GSP Plus. Since January
2014, Pakistan has benefited from the EU's Generalised System of Preferences
(GSP) Plus regime, which has given considerable boost to Pakistan's exports to
the EU. In order to maintain GSP+ Pakistan has to effectively implement 27
core international conventions on human and labour right, environmental
protection and good governance. Well-informed sources told Business
Recorder that the EU delegation raised questions regarding human rights
situation in different parts of the country with the Chairman NCHR. The EU
Mission was informed that Pakistan was passing through a critical phase after
the operation against terrorists and human rights in Pakistan was not as bas as
was being reported. The European Union has expressed concern over the death
penalty especially by the Military Courts and this issue has been raised at
different forums.
The EU is one of Pakistan's largest
trading partners and the largest market for Pakistani exports. The overall
EU-Pakistan trade volume reached €10.49 billion in 2015 up by 20.14 percent
from 2013 with Pakistan enjoying a €1.6 billion surplus in the balance of trade
with the EU.
Rs17.6bn for LPG air mix plants, fresh
loan for Nandipur project approved:
The Economic Coordination Committee
(ECC) on Monday allowed setting up of 65 liquefied petroleum gas (LPG) air mix
plants with an estimated cost of Rs17.6 billion and constituted a price
negotiation committee for import of additional quantities of liquefied natural
gas (LNG). Presided over by Finance Minister Ishaq Dar, the ECC meeting also
approved Rs30.6bn loan for controversial Nandipur Power Project and purchase of
electricity from captive power plants to meet shortage in next two years
besides allowing supply of 50,000 tonnes of wheat for displaced persons of
Khyber Pakhtunkhwa and the tribal region. An official statement said the ECC
approved a summary of the petroleum ministry for setting up of LPG air mix
plants, starting from Murree’s Kurbagla, Dewal, Company Bagh and Tret and
Awaran and Bella in Balochistan, at the cost of Rs1.353bn to be funded by Sui
Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited
(SSGCL), said an official statement.
ECC extends another sovereign
guarantee to Nandipur power plant:
The federal government extended
sovereign guarantees of Rs30.6 billion to the Nandipur power plant after the
company was unable to retire its entire debt. It also decided to buy 600
megawatts (MW) electricity from captive power plants to bridge a shortfall in
the coming summers. The Economic Coordination Committee (ECC) of the Cabinet
approved issuance of the second revised sovereign guarantees worth Rs30.6
billion for the 425MW Nandipur power project until 31st May 2017, according to
a handout issued by the Finance Ministry. The ECC also approved to set up a
price negotiation committee to import liquefied natural gas (LNG) from different
countries. The ECC’s decision to issue the guarantees for nine more months
suggests that the company could not retire the debt it obtained from a
syndicate of banks to install the power plant on the back of government
guarantees.
Banking sector grew by 16.1pc in FY16:
The banking industry grew by 16.1 per
cent during FY16 despite experiencing some pressure on its profits due to
declining interest rates and spreads. However, the outlook remained stable with
high solvency levels, a strong capital base, contained non-performing loans and
improving risk management systems, said the performance review of State Bank
for FY16 issued on Monday. The doubling of private sector credit was the most
encouraging development during the year which contributed significantly in
achieving 4.7pc growth in real GDP, said the report. This was despite a major
setback in the agriculture sector due to a 27pc decline in the cotton crop.
Govt moves to appease masses, keeps
oil prices unchanged:
The government decided to keep oil prices
unchanged from November 1 (today) amid increasing political pressure building
up in the capital. Following an uptick in the international price, the Oil and
Gas Regulatory Authority (Ogra) had recommended an increase in the range of
2.8% to 15.6% for November.
Textile industry: Bosan rejects APTMA
demand for duty-free import of cotton:
Minister for National Food Security
and Research Sikander Hayat Khan Bosan has rejected the All Pakistan Textile
Mills Association’s (Aptma) demand to allow duty-free import of raw cotton to
support the textile industry. Earlier, Aptma representatives sought from the
government, among other incentives, to allow duty-free import of raw cotton for
import but Bosan declined this demand conditionally. “No duty-free cotton import
will be permitted until and unless all the locally-produced cotton is sold
completely,” said the minister while talking to the media on Monday. “We are
expecting much better production of cotton than in the previous year,” said
Bosan, adding that authorities were looking forward to a rate of Rs3,000-plus
for cotton in the international market.
S&P
raises Pakistan rating, says outlook stable
Standard and Poor’s revised Pakistan
long-term credit rating from B- to B Monday, saying better policymaking had
improved the economy’s performance and raised the country’s growth
prospects.The agency said Pakistan continued to benefit under its
democratically elected government and that a reform programme had helped to
restore economic stability.It affirmed the ‘B’ short-term rating and said the
outlook on the long-term rating was stable.However it warned that many of
Pakistan’s structural weaknesses remained, including a narrow tax base and
security risks, that weakened the government’s effectiveness and weighed on the
business climate.“Notwithstanding the recent terrorist attacks in Quetta,
however, we see even these structural weaknesses as having improved over the
past few years.Combined, these factors motivated the upgrade,” it said in a
statement.The agency forecasts average annual GDP growth to 5.5 per cent in the
next three years from the current growth rate of 4.7pc.
