B2B links to assist enhance Pak-US trade
There is massive potential to accelerate bilateral trade between Pakistan and the US through business-to-business interaction, said US Commercial Counsellor John Coronado.
Talking to the business community during his visit to the All Pakistan Textile Mills Association (Aptma) office on Friday, the envoy said that there was a wide scope for economic cooperation between the business communities of both countries.
He added that traders from the two sides could collaborate in textile, agriculture, energy and information technology sectors.
He urged the meeting participants to explore diverse avenues to enhance bilateral trade between Pakistan and the US and promised complete assistance and cooperation from the US Embassy in harnessing the business opportunities in the shortest possible time.
He was of the opinion that the textile industry of Pakistan could exploit the economic vacuum created due to the lockdown in regional countries.
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Energy generation hits all-time high
Pakistan has maintained its record making and breaking spree in the broader economy as it reported all-time high power generation and transmission of 24,467 megawatts (MWs) in a single day on Wednesday. The feat was achieved by partly utilising the surplus generation capacity which has remained a huge cause of expensive power for end-consumers in the country.
The required increase in demand for power generation and consumption was recorded on the back of turnaround in the domestic economy; including in all the three major sectors ie industries, agriculture and services. Besides, residential consumers have continued to upgrade their homes with electrical and electronic goods including high power consuming splits, other home appliances and gadgets.
“Record highest power was generated and transmitted yesterday (Wednesday, August 11) at 24,467 MWs,” Federal Minister for Energy Hammad Azhar said on his official Twitter handle on Thursday.
This was his second tweet in about a month to report all-time high power generation and transmission.
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Traders seek to open markets for 2-Fridays
Businessmen have requested the government of Sindh to allow opening of business on Friday, August 13 and August 20 due to prolonged breaks which will fall in this week and next.
In a statement on Thursday, officials from the Pakistan Yarn Merchants Association (PYMA) appealed to Sindh Chief Minister Murad Ali Shah to allow business to operate for the next two Fridays citing that holidays for Independence Day and Ashura will also be observed over next few days. They stressed that such a move would help alleviate the economic losses borne on account of coronavirus pandemic. In the appeal, PYMA Senior Vice Chairman Hanif Lakhany highlighted that the provincial government had issued orders demanding closure of businesses on Fridays and Sundays every week to curb the spread of Covid-19.
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Government finds Gwadar plan lacking
The Cabinet Committee on China-Pakistan Economic Corridor (CCoCPEC) on Thursday termed Gwadar port marketing plan prepared by Chinese operators unsatisfactory, as the government also remains unable to provide required support to make its free zone fully operational.
Due to a delay in starting work on Gwadar power plant of 300 megawatts coupled with lack of transmission network, the cabinet committee also decided to import another 100MW of electricity from Iran to meet the port’s energy requirements. The CCoCPEC meeting was held under the chairmanship of Federal Minister for Planning Asad Umar and reviewed the progress on various projects under the CPEC and Gwadar Port marketing plan, according to a press statement.
The Gwadar Port and its Free Zone is said to be the jewel of CPEC but the progress on these two major CPEC initiatives remains far below expectations despite it being a top priority of Prime Minister Imran Khan and Chief of Army Staff General Qamar Bajwa. The Chinese operators of the Gwadar port – the China Overseas Ports Holding Company Pakistan Limited (COPHC) made a presentation on the prospects of the Gwadar port and its marketing plan to the committee, sources told.
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Government to borrow Rs103.8 bn from banks
The Privatization Board on Wednesday allowed raising Rs103.8 billion debt from local banks through competitive bidding to replace the government’s financing before privatisation of much-trumpeted two LNG-fired power plants.
The board recommended that Expression of Interest (EOI) may be invited from scheduled banks and Development Financial Institutions (DFIs) through advertisement to raise Rs103.8 billion debt.
The board approved to raise the debt for a period of seven years at a maximum interest rate of Karachi Interbank Offered Rate (KIBOR) +1.8 percent. The National Electric Power Regulatory Authority (Nepra) has set the KIBOR plus 1.8 percent limit against the wish of the Privatisation Commission that had initially recommended KIBOR plus 3.5 percent interest rate.
The last Pakistan Muslim League-Nawaz (PML-N) government had funded the Haveli Bahadur Shah and Balloki Power Plants out of the Pakistan Development Fund Limited (PDFL) – being set up with $1.5 billion Saudi Arabian grant.
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High current account deficit not worrying: Governor Baqir
The high current account deficit for June 2021 was a surprise for the market and businessmen, however, people need not worry about it because the exchange rate remained unaffected, reserves are increasing and current account deficit is sustainable, said State Bank of Pakistan (SBP) Governor Reza Baqir.
Speaking at a session on ‘Ensuring Sustainable Growth and Promoting Digitisation’ on Wednesday, he said three factors spell doom for a country having an exorbitant current account deficit but Pakistan was not witnessing any of the characteristics.
Detailing on the first parameter, he said that if current account deficit is unsustainable it could hinder growth of a nation.
“Few years earlier, Pakistan recorded a current account deficit of 6 percent of GDP, however, in FY2021-22 it is expected to amount to 2-3 percent of GDP which is sustainable,” he said.
Moreover, the central bank governor added that a high current account deficit could reverse progress of a country if it impacts the exchange rate or reduce foreign exchange reserves.