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Foreign buyers express interest in Pakistani fruits and vegetables

ISLAMABAD: In the recently held exhibition in Berlin named “Fruit Logistica” more than 30 buyers who participated have shown interest in buying fruits and vegetables from Pakistan and demonstrated keen desire to avail trade opportunities which have emerged as a result of the China-Pakistan Economic Corridor (CPEC) project.

“The exhibition provides an effective international platform to enhance Pakistan’s horticulture industry’s exports and to inculcate awareness about most modern research and technological activities,” Federation Pakistan Chamber of Commerce and Industry (FPCCI) Patron-in-Chief and Vice-President Waheed Ahmed stated.

During this year eight Pakistani companies and 25 delegates participated in the exhibition and an exclusive stall representing the Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA) was also installed. Pakistan Ambassador Johar Saleem inaugurated the Pakistani pavilion.

According to Waheed, Ahmed, the European countries expressed the desire to purchase Pakistani mango, Russia expressed the desire to buy Pakistani potato while United Kingdom (UK), Holland, Norway and  Germany expressed keen interest in Pakistani dates. Similarly, buyers from Russia, Ukraine, Indonesia, United Arab Emirates (UAE) and Bahrain also expressed great interest to purchase Pakistani Kinnow. Keeping in view this overwhelming response, Pakistan is expected to get export orders up to $3 million.

“The exhibition has proved to be an effective international event for highlighting immense potential of Pakistani horticulture sector and offers excellent opportunities for investment in this specific sector,” he added.

During the three-day exhibition, Waheed Ahmed extended an invitation to prominent technology companies to visit Pakistan and also apprised them of the purpose and objectives of conducting a national conference in Pakistan in the near future with the collaboration of  PFVA  and  FPCCI.  “With the establishment of CPEC projects and economic zones the investors around the globe are focusing their attention on Pakistan and hence the foreign companies and investors would also be invited next year in the proposed national conference on horticulture sector,” he further said.

Waheed Ahmed expressed deep satisfaction and highly appreciated the extensive efforts of the Pakistani Embassy for making good arrangements and rendering assistance to Pakistani companies which participated in this mega event.

Source: https://profit.pakistantoday.com.pk/2018/02/12/foreign-buyers-express-interest-in-pakistani-fruits-and-vegetables/

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CPEC Western route to be completed by end of this year

ISLAMABAD  : 

The western route of the China-Pakistan Economic Corridor (CPEC) is going to be completed by the end of this year along with other 11 mega projects which were initiated in 2015-16.

The completion of those projects will reduce travelling time and boost economic activities.

“Hakla-DI Khan having the length 285km with a cost of Rs122 billion and 81km Zhob-Mughalkot costing Rs8.8billion funded by the Asian Development Bank (ADB) will be completed by December 2018,” a senior National Highway Authority (NHA) official told The Express Tribune.

“The completion of these two projects will connect the port city of Gwadar with Quetta by Khuzdar,” he said and added, “With it the western route will become completely functional.”

According to the NHA the under-construction projects – the Hakla to Dera Ismail Khan motorway — is an important part of the western route of CPEC, and will reduce the travel time from Islamabad to DI Khan from five hours to just two-and-a-half hours.

It will greatly help the movement to the country’s southern cities such as Quetta and Gwadar.

Meanwhile, another important project — Khuzdar- Ratodero (151 km) that has been completed at a cost of Rs8.8 billion is all set to be inaugurated this year in April.

This project though is not part of CPEC.

NLC plans setting up international standard rest areas on CPEC route

“The significance of this project is that it will provide the much-needed connectivity between Balochistan and Sindh and also facilitate CPEC traffic originating from the Gwadar Port,” said the NHA official.

Other projects include the Karachi-Hyderabad Motorway (M-9) where 95% work has already been completed and will see the finish line in March.

The 136km, the six-lane motorway with the two-lane service road on either side, is being built on the BOT basis at a cost of Rs44 billion.

Being the country’s busiest section with over 30,000 daily traffic count, this motorway will be immensely helpful in catering to the commercial traffic originating from the Karachi Port and the Port Qasim.

Following the recent inauguration of the Lyari Expressway, M-9 will offer an added benefit to commuters to reach their destinations without facing the city congestions.

Gojra-Shorkot (62km) and Shorkot-Khanewal (65km) sections of M-4 are scheduled to complete by August with a cost of Rs17 billion and Rs22 billion, respectively.

Financed jointly by the Asian Development Bank and Government of Pakistan, their completion will reduce travel time from the federal capital to Multan to just 5 hours.

Lahore-Abdulhakim Motorway (230 km) is another important project that is expected to complete by May. Built at a cost of Rs 148 billion, the six-lane motorway will provide a swift and easy route between Lahore and Multan.

CPEC toll income — myth and reality

One of the important links of CPEC and the country’s longest planned motorway, Multan-Sukkur (M-5) is though scheduled to complete in 2019.

Its two sections — Multan to Shujaabad and Pano Aqil to Ghotki — will be completed this year. The 392km-long motorway is being financed by China at a cost of Rs294 billion.

Lahore-Sialkot Motorway (89 km) will be completed on the BOT mode by December at a cost of Rs44 billion. It will link the industrial city of Sialkot with the rest of the country, leading to swift movement of industrial products.

Islamabad Metro Bus (26.5km), another challenging project, is under execution and will be completed by the end of April. The project will link the traffic from the twin cities with the New Islamabad International Airport (NIIA).

Hazara Motorway (E-35) from Burhan to Shah Maqsood Interchange (47km) is already completed and open to traffic. The 15km addition is scheduled to complete by May, thus reducing the distance between Islamabad and Abbottabad to one-and-a-half hours.

The widening and improvement of GT Road section from Thokar Niaz Baig to Hudria Drain (10km) is underway and will be completed this year.

Source: https://tribune.com.pk/story/1633076/1-cpec-western-route-completed-end-year/

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Chinese citizens death could impact Beijing’s investment in Pakistan

KARACHI: The killing of a Chinese citizen Chen Zhu in the metropolitan city of Karachi has raised significant risk of derailing Beijing’s investment in Pakistan.

According to a Bloomberg report, the incident highlights the insecurity still plaguing Pakistan and the death of the Chinese citizen employed by a local unit of Cosco Shipping Lines saw China issue calls for providing more security to its nationals.

Data shared by the Chinese government in August last year with Bloomberg revealed over 20,000 Chinese nationals had moved to Pakistan in lieu of rising opportunities in Pakistan, over double that compared to 2015.

But Pakistani hotels are brimming with visitors from China and can be observed by their presence in shopping malls and in weekend crowds at markets, said Bloomberg.

Also, Chairman Pathfinder Group and ex-army officer, Ikram Sehgal believes the threat level after this killing will certainly rise in respect to the Chinese and would hurt business sentiment in businessman coming to the country from China.

Aleena Ali, researcher at security consultancy Control Risks told Bloomberg that the country faces an “unprecedented situation whereby growing foreign direct investment is accompanied by a significant increase in the physical presence of foreign nationals. It will be challenging for security forces to maintain a secure environment for all Chinese nationals.”

As Pakistan’s ties with US touched a new low in January, Pakistan’s dependency on China is rising. In January, US President Donald Trump cut over $2 billion in military aid to Islamabad when the country’s foreign currency reserves are declining.

And the business community in Karachi has called for more action and doesn’t want to frighten China, Bloomberg said.

Source: https://profit.pakistantoday.com.pk/2018/02/13/chinese-citizens-death-could-impact-beijings-investment-in-pakistan/

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China agrees to accommodate Pakistan’s concerns on FTA

ISLAMABAD: During the 9th round of negotiations on China Pakistan Free Trade Agreement (FTA), the Pakistan delegation led by Commerce Secretary Mohammad Younus Dagha presented the demands of Pakistani exporters and industries for accommodating in the final draft of the CPFTA.

According to official sources, the demands included those from exporters to provide tariff concessions equivalent to the ASEAN countries. On the other hand, various industries and chambers had provided input to the Ministry of Commerce during pre-negotiations consultations, for protection of the local industry from Chinese imports by disallowing tariff concessions on several products.

Dagha also suggested incorporating clauses for safeguarding the industries and the economy from any undue pressure on the balance of payments position.

The Chinese side was led by Peoples Republic of China Ministry of Commerce Vice Minister Wang Shouwen and comprised of 16 officials of various Chinese ministries.

After intense negotiations for two days, the Chinese side agreed to accommodate these concerns and demands in the amended FTA which is expected to be signed in March when the Chinese vice minister will visit Islamabad along with his delegation.

It may be mentioned that these negotiations had started in 2012 to finalise the revised version of CPFTA.

Source: https://profit.pakistantoday.com.pk/2018/02/08/china-agrees-to-accommodate-pakistans-concerns-on-fta/

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Pakistan has no debt fears arising out of CPEC: PM Abbasi

DAVOS: Prime Minister Shahid Khaqan Abbasi said Pakistan didn’t have any debt fears arising out of the China-Pakistan Economic Corridor (CPEC).

In an interview to the Nikkei Asian Review on sidelines of World Economic Forum (WEF) in Davos, Abbasi stated regarding loans linked to CPEC projects, an independent body would shoulder the loan majorly and it wouldn’t necessary contribute to a rise in national debt.

Also, Abbasi stressed fears of a Chinese “debt trap” were compounded and misled. He added the CPEC had two core components, one financial sustainability and second environmental conservation and all projects were being established on these two fundamental principles.

PM Abbasi noted infrastructure development under CPEC alongside improved public security would improve global trust in Pakistan and allow foreign entities not only Chinese ones to invest with confidence.

He said economic benefits would also be reaped from improvement in power generation, lower-cost transportation and added development of Gwadar Port in Balochistan would also benefit other neighbouring countries in Central Asia.

Regarding Pakistan’s economic growth during current financial year 2017-18, Abbasi stated the rate of economic growth would be higher than FY 2016-17 when it grew by 5.3 percent, the quickest in almost a decade.

Furthermore, Abbasi said exports had shown reasonable growth in last six months and despite rupee devaluation and rise in oil prices, inflation remained under control. He predicted economic growth could possibly reach around 6 percent.

Source: https://profit.pakistantoday.com.pk/2018/01/26/pakistan-has-no-debt-fears-arising-out-of-cpec-pm-abbasi/

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Pak-China CPEC Cultural Caravan to boost tourism: MD PTDC

ISLAMABAD: Pakistan Tourism Development Corporation (PTDC) Managing Director (MD) Abdul Ghafoor, on Sunday, said that Pakistan and China’s joint cultural caravan will boost cultural tourism on China Pakistan Economic Corridor (CPEC) route.

Highlighting, the importance of the caravan in exploring the cultural diversity of the two friendly countries, he said that the game-changer CPEC will not only unleash economic benefits but also help discover and foster the cultural heritage which the ancient Silk Route has preserved for centuries.

He said programmes like CPEC Cultural Caravan should be held more frequently as art has no religion or language and it has the power to bring together people from diverse backgrounds.

Cultural tourism allows travellers to be immersed in local rituals and routines, taking away not only pretty photos but also shared memories of unique experiences, said the PTDC MD.

“It also encourages local communities to embrace their culture and boost their economic growth. Developing culturally geared tourism programs encourages local destinations to celebrate and promote what distinguishes their communities and in doing so, provides the opportunity for authentic cultural exchange between locals and visitors,” he further commented.

There is a general perception that cultural tourism is ’good’ tourism that attracts high spending visitors and does little damage to the environment or local culture while contributing a great deal to the economy and support of culture, he concluded.

Source: https://profit.pakistantoday.com.pk/2018/01/21/pak-china-cpec-cultural-caravan-to-boost-tourism-md-ptdc/

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All CPEC projects including ML-I are progressing smoothly: PD

ISLAMABAD: Progress on all projects under China Pakistan Economic Corridor (CPEC) including up-gradation of Main Line-1 (ML) railway track is going smoothly and without any delay, Project Director (PD) of CPEC, Hassan Daud Butt Thursday said.

Talking to APP, he said progress of all the projects that were agreed by the both China and Pakistan during 7th Joint Coordination Committee (JCC) on CPEC held here on November 21, 2017 was on track as both sides were committed to complete the projects as early as possible.

Responding to a question regarding possible delay in the $8.2 billion ML-1 project, the project director said earlier due to huge implications in the project, the revised PC-1 of first phase got delayed, however he said ministry of railways had assured to submit the PC-1 of phase-1 by February 20, therefore groundbreaking of the project was likely to be launched in few months as per announcement made by Minister for Planning Ahsan Iqbal last month.

He said the ministry of planning had also sought time from cabinet committee on CPEC to discuss details of the project in next meeting and discussion would help further boosting the progress of project.

Giving details about preliminary design review of the project, Butt said work scope of phase-1 sub projects had already been completed. Similarly, he said work of standards and specifications, BOQs, and cost estimates both local and foreign had also been finalized.

He said now approval of PC-1 and award of Engineering, Procurement and Construction (EPC) would be given on fast track to ensure ground breaking of the project as early as possible.

The phase-1 of ML-1 project consists of seven priority sub-projects with three contract packages including Lahore-Multan (334 km), Khanewal-Pindora (52 km), Nawabshah-Rohri (183 km), and Peshawar-Rawalpindi (159 km), Taxila-Havelian (55 km) while establishment of a dry port near Havelian is also part of the project.

Under the project the entire track from Karachi to Peshawar would be made doubled and speed of passenger trains would be raised from existing 80 km per hour to 160 km per hour while freight trains would run at speed of 120 km per hour.

Moreover, signaling and control system of railways would be computerized whereas safety of train operations would be ensured by grade separation.

After completion of the project, freight traffic would be increased from five to 25 million tons per annum by 2025, and passenger traffic is likely to be increased from 55 to 80 million passengers per annum, official documents available with APP suggested.

Keeping in view the importance of Railway sector, the government decided to include the ML-1 project in CPEC and in the 6th JCC meeting held in Beijing in 2016, this project was declared ‘Strategic’. Framework Agreement on ML-1 was signed on May 15, 2017 while commercial contract for preliminary design was singed on May 2017, the documents added.

Replying to a question regarding progress on construction of Special Economic Zones (SEZs) under CPEC, Hassan Daud Butt said the governments of Pakistan and China were actively engaged for early completion of all nine SEZs in one each in federal capital, all provinces and special areas of Azad Jammu and Kashmir, Gilgit Baltistan, and Federally Administered Tribal Areas (FATA).

He informed that a Chinese special business delegation was visiting Pakistan next month to review progress of CPEC projects. He said the delegation would interact with government officials, local trade bodies besides it would also visit all the provinces to ensure expedited work on SEZs.

Regarding progress on Karachi Circular Railway, he said government of Sindh and Chinese government were directly and actively engaged on the project to ensure early launch of groundbreaking of the project.

Source: https://profit.pakistantoday.com.pk/2018/02/09/all-cpec-projects-including-ml-i-are-progressing-smoothly-pd/

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Afghanistan looks to reduce dependence on Pakistan via Chabahar Port

LAHORE: In a bid to reduce its dependence on Pakistan, Afghanistan has shifted 80 per cent of its cargo traffic from Pakistan’s Karachi seaport to Iran’s Chabahar and Bandar Abbas ports. The move caused in part by a new trade tariff imposed by Pakistan comes barely two months after the inauguration of Iran’s Chabahar Port.

Chabahar being Afghanistan’s closest link to the Indian Ocean is expected to get a larger share of Afghanistan’s trade in the future. According to Asia Times, $ 5 billion worth of Afghan trade will be conducted solely through the tripartite Chabahar Port, sponsored jointly by India, Iran, and Afghanistan, once it starts feeding the International North-South Transport Corridor (INSTC).

“Afghanistan is no longer dependent on Pakistan for the shipment of goods as it can now use Iran’s Chabahar Port for this purpose, said Afghan Chief Executive Abdullah Abdullah while talking to the media in November last year indicating the impending move.

In the current fiscal year, the trade volume between Pakistan and Afghanistan that stood at $ 2.5 billion has fallen to $ 500 million due to deteriorating relations between the two countries.

On the other hand, Afghanistan’s trade relations with India seem to be moving in the right direction.  “On a reciprocal basis, Afghanistan opened a second aerial corridor for India, enabling India to establish a direct trade link between Mumbai and Kabul. The first flight took 40 tonnes of dried and fresh fruits and medicinal herbs to India through the aerial route,” said Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) Director Zia Ul Haq Sarhadi while talking to Asia Times.

The loss of Afghanistan’s cargo trade is expected to adversely affect the Pakistani economy that is already facing a widening trade deficit and worsening balance of payments. According to Pakistan Bureau of Statistics (PBS) figures, in the five months (July to November 2017) Pakistan’s trade deficit increased to $ 15.03 billion, mainly because of a 16.4 per cent increase in CPEC related imports compared to the previous year. The figure is expected to hit $ 35 billion by the end of fiscal 2017-18 if growth remains stagnant.

The widening trade deficit has also put pressure on the country’s foreign reserves which are gradually shrinking. A potential economic crisis looms as the reserves are estimated at around $ 14.66 billion with Pakistan expected to make foreign debts servicing payments by the end of June 2018.

“It is unfortunate that trade under CPEC is facilitated by the government and Afghan transit and bilateral trade is totally ignored,” Sarhadi further said.

The current situation calls for Pakistan to re-evaluate its priorities. While CPEC promises much for the future, the country’s high-ups need to assess the impact of their current policies on the overall economy and make needed adjustments.

Source: https://profit.pakistantoday.com.pk/2018/02/04/afghanistan-looks-to-reduce-dependence-on-pakistan-via-chabahar-port/

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Rs 10bn worth benefits given to Chinese firm through tax exemption

ISLAMABAD: Senate’ Standing Committee on Finance, Revenue, Economic Affairs and Narcotics Control informed that around Rs 10 billion worth benefits were given to a Chinese company working on the Multan-Sukkur Motorway in the form of tax exemptions.

Considering the Calling Attention Notice moved by Senators Muhammad Daud Khan Achakzai, Muhammad Mohsin Khan Leghari, Barrister Murtaza Wahab, Sitar Ayaz, Sassui Palijo, Nauman Wazir Khattak, Mukthiar Ahmed Dhamrah Aajiz, Kamil Ali Agha, Saleem Mandviwalla, Ahmed Hassan, Farhatullah Babar and Ilyas Ahmed Bilour regarding the issuance of SRO 47(1)12018, dated January 23, 2018, the committee asked the Federal Board of Revenue (FBR) that how the Chinese firm was given exemption depriving the local firms.

Pakistan Peoples Party (PPP) Senator Murtaza Wahab stated that the FBR granted this exemption at a time when the construction work was only 37 per cent complete without seeking approval of the federal cabinet. He said as per the constitution FBR has no right to issue SRO especially benefiting a foreign firm.

FBR Inland Revenues (IR) Policy Member Dr Iqbal replied that the Economic Coordination Committee (ECC) approved the exemption for this Chinese construction company which was later on ratified by the federal cabinet.

On the question of granting exemption after completion of 37 per cent work of the project, the FBR replied that this summary was moved by the Ministry of Communication so only they can give a reply to this question in more detail. The committee decided to summon the high-ups of the Ministry of Communication for seeking further details about this project in the next meeting.

Senator Nauman Wazir Khattak informed the committee that the Supreme Court (SC) judgment clearly defines that the federal cabinet is the competent authority to issue SRO and recommended the finance committee to declare the said SRO illegal.

According to him, former finance minister Ishaq Dar had categorically stated on the Senate floor that all imports of China-Pakistan Economic Corridor (CPEC) would be non-discriminatory and no specific exemptions for CPEC projects for import of material would be given to Chinese companies.

At least 30 per cent work on Multan-Sukkur M5 Motorway has been completed and now the Chinese company is being given exemption from government duties whereas, in the original tender documents and the tender awarded to the company, the said duty was included in the project cost. In the original bid documents, all government duties were included. Exempting these duties at this point in time is unfair and unjust with other bidders who took part in the bid.

According to Khatak in the initial PC-1, the Bill of Quantities (BoQ) and specifications were different and in the final award, the BoQs have been reduced without informing other bidders and getting their rates as per the changed BoQs.

“The tender was floated and the bid was received a number of times, wherein there is a dramatic variation in the prices. Finally, the price was negotiated and BoQs were changed for this specific company. This is a violation of PPRA rules,” he said and recommended NAB to investigate all such matters.

Source: https://profit.pakistantoday.com.pk/2018/02/01/rs-10bn-worth-benefits-given-to-chinese-firm-through-tax-exemption/

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CPEC’s HEC building education city in Gwadar

QUETTA: The Higher Education Commission (HEC) unit of China-Pakistan Economic Corridor (CPEC) held a special consultative meeting to review the ongoing government university and educational city projects in Gwadar.

“Establishment of Government University Gwadar in due time and duration is an important target for all of us,” said HEC head Lt Gen (retd) Mohammad Asghar at the Balochistan University of Information Technology Engineering and Management Sciences (BUITEM).

Members of Technical Review Committee, BUITEMS Vice Chancellor Dr Ahmed Farooq Bazai, University of Turbat Vice Chancellor Professor Dr Abdul Razaq Sabir, Quaid-e-Azam University Professor Dr Zafar Nawaz, Balochistan Higher Education Secretary Abdula Jan, senior professors of universities and other government officials were also present on the occasion.

“Best teachers and faculty will be appointed on merit only,” the HEC head said.

The committee discussed employment opportunities which would be provided after completion of the CPEC projects. Special focus was made on provision of technical training to the youth of Gwadar.

In the meeting, comprehensive consultation was conducted for construction and establishment of world class government university in Gwadar and launch of certain educational and technical training programmes and courses.

The consultation process included heads of many government departments, universities, and other institutions of Balochistan so that the people of Balochistan could benefit from the completion of CPEC.

BUITEM vice chancellor said, “Youth and students of Balochistan are not lesser than any of us. We have to equip Baloch youth technically in order to promote economic rehabilitation of the local people.”

Earlier, Bazai had welcomed the meeting’s participants and gave a comprehensive briefing on the modern facilities available at BUITEM.

Source: https://www.cpecb.com/cpecnews/cpecs-hec-building-education-city-gwadar/

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