Sindh Enterprise Development Fund (SEDF) and Sindh Small Industries Corporation (SSIC) have officially partnered through the signing of a Memorandum of Understanding (MoU) today.

The signing ceremony took place at the office of the Minister of Industries & Commerce Department in the Sindh Secretariat in Karachi.

This collaboration is set to enhance the development of small and medium enterprises (SMEs) across Sindh, driving economic growth and creating new job opportunities.

SEDF, established by the Government of Sindh, aims to promote investment in SMEs and spur economic development in the region. Through its financial and technical support, SEDF has already mobilized significant private sector investments, making a substantial impact on Sindh’s economy.

Whereas, SSIC will facilitate in obtaining industrial plots/ land for SME’s across Sindh for investment.

Minister for Industries & Commerce, Jam Ikramullah Khan Dharejo, who was the Chief Guest, highlighted the significance of the partnership, saying, “This agreement marks a major step toward industrialization in Sindh.

The new industrial zones being set up will benefit greatly from this initiative. It will open doors for those wanting to start their businesses, particularly new entrepreneurs. As industries are established, numerous job opportunities will arise.

This agreement is a significant achievement for the provincial government and the start of a new era for the province’s industries.”

The event also featured remarks from Secretary Industries & Commerce, Yasin Shar Baloch; Secretary Investment Department, Raja Khurram Shahzad Umer; CEO of SEDF, Khizar Pervaiz; and MD of SSIC, Sarwat Faheem. They shared their insights on Sindh’s economic growth, emphasizing the proactive steps being taken by the Sindh government, including this strategic partnership, to advance economic development.

Their comments underscored the importance of such initiatives in empowering local entrepreneurs, boosting the economy, and creating sustainable employment.

Preparations for Gul Plaza Management Committee elections 2024-2027 have reached their peak. An election between business leaders will take place in July.

According to the details, the elections of Gul Plaza Market Management Committee are going to be held after a long time.

On this occasion, the presidential candidate on behalf of the khatmat gar panel is Tanveer Pasta, a well-known businessman and former vice-chairman of Gull Plaza Management Committee, while the vice-presidential candidates are Sheikh Amar Ismail, General Secretary Haji Amin, Joint Secretary Ramzan Bhatti and Finance Secretary Muhammad Ali Gandhi. are The former Chairman of Gill Plaza Management Committee was Rafiq Japonwala, while Tanveer Pasta offered his services as Vice Chairman.

Be it business closure due to Corona or other issues, different types of development works have also been done in Gull Plaza during his tenure due to which the candidates of the service panel are very hopeful that the business community will fully support them.

The  Governor of Sindh, Kamran Khan Tessori, encouraged workers to collectively assert their right to a living wage. Speaking at the international tripartite conference titled “Towards Realization of the Living Wage Agenda in Pakistan,” the governor highlighted the persistent divisions among workers based on various identity markers, which hinder their collective struggle for rights and respect.

The Pakistan Institute of Labour Education and Research (PILER) jointly organised the two-day conference in collaboration with several partners at a local hotel in Karachi. Representatives from national and international trade unions, labour support organizations, employers, government bodies, and National Human Rights Institutions (NHRIs) discussed the challenges in labour policy design and implementation. They noted that labour protection is weak, the process for determining and paying wages is unjust, grievance mechanisms for workers are ineffective, and stakeholders are reluctant to take responsibility for worker exploitation.

International delegates representing the European Centre for Constitutional and Human Rights, Label Behind the Labour (LBL), and Global Rights Compliance (GRC) emphasized the need for Pakistan to comply with international human rights obligations, including GSP+ and the EU’s Corporate Sustainability Due Diligence Directive (CSDDD). Failure to do so could result in significant losses to the country’s exports.

Speakers, including Dr. Qaisar Bengali, SZABIST Dean, and Dr. Asma, Anis Haroon, member of the National Commission for Human Rights (NCHR), highlighted the severe challenges to Pakistan’s economy. These challenges stem from climate change, the implications of globalization, and the global technological race. They stressed the need for the government to plan and intervene according to the changing socio-political dynamics.

Trade union representatives, including Nasir Mansoor of the National Trade Union Federation (NTUF), Khalid Kehkood of the Labour Education Foundation, and Aslam Meraj of the Labour Qaumi Movement, pointed out that the exploitation of the working class persists due to globalization, which they described as a new form of colonization. The current global economic system allows international corporations to exploit workers in developing countries like Pakistan, with the complicity of the country’s governing elite. For instance, international textile and garment brands earn substantial profits but are unwilling to adopt fair practices that would enable workers to earn a living wage.

The conference delegates committed to making the living wage agenda a part of the broader political discourse. They urged the government to strengthen workers’ grievance mechanisms and recommended that stakeholders—including international brands, local garment manufacturers, relevant government bodies, NHRIs, and trade unions—recognize and share responsibilities for improved labour protection and uphold the living wage agenda.

Fateh Shah Arif, General Secretary All Pakistan Mines and Mineral Association (APMMA) welcomed the participants and said that the mining sector in Balochistan has the potential to develop itself but due to various reasons like no social justice, lack of education and no support from the government, its potential could never be realized. At the opening session of the capacity building program for the All-Pakistan Mines and Minerals Association (APMMA), hosted by the Employers Federation of Pakistan (EFP) in support with the International Labour Organization (ILO) at the Quetta Chamber of Commerce & Industry (QCCI), he vividly talked about the promotion and creation of awareness on the rising issue of forced and child labor in the mining sector.

Fateh also emphasized the importance of enhancing stakeholder engagement in Balochistan, particularly within the informal sectors and highlighted the pressing necessity to create institutional development, commending the efforts made by the APMMA.

Syed Nazar Ali, Secretary General Employers Federation of Pakistan explained the background of the program and acknowledged the support of the ILO towards building the capacity and raising awareness regarding forced labor for the mine owners and members of the APMMA. He highlighted that strong and independent employers create better working conditions at the workplaces and are also a collective Voice of Business to raise and advance business agenda.

He further explained that, since 1950 (EFP) has been an apex body of employers, ready to protect, promote and project employers’ interest in order to create best business practices and develop organizations of employers. With 34 trade bodies and nearly 900 members (EFP) assures a strong and robust relation with the informal sector of mining. He also apprised the participants by showing some of the achievements by (EFP) and explained about the important roles such as promoting principles and rights at work (FPRW) to realize decent work and to ensure that businesses fulfill their responsibilities. These roles included building compliance for employers’ organizations, creating participation in international events, and facilitating social justice for all.

Dr. Faisal Iqbal, National Project Coordinator International Labour Organization (ILO), facilitated in this session and explained about the project, emphasizing on the purpose to raise awareness and build capacity of the mine owner and associated with the All-Pakistan Mines & Minerals Association. He delved conversation onto promoting decent work for all and creating Labor rights advocacy, technical support, research, data collection, promotion of social dialogue, and capacity building initiatives, which aimed to identify how the (ILO’s) involvement could help mine owners in Khuzdar, Loralai, Chagai, and Quetta to mitigate the issue of forced and child labor effectively.

Syed Abdul Ahad, Vice President of the Quetta Chamber of Commerce & Industry (QCCI) appreciated the efforts of the EFP and the ILO in promoting responsible business practices and social dialogue amongst the stakeholders. He also discussed the condition of the deteriorating mines and the mining society present in many major areas of Balochistan and requested support form (EFP) and (ILO) in order to rejuvenate the socio-economic conditions of Balochistan province to sustainable practices.

Agha Gul Khilji, Quetta, Senior Vice President Quetta Chamber of Commerce and Industry (QCCI), underscored the discrepancy in portraying the mining sector’s accomplishments in Quetta and pledged full support for the EFP and APMMA to foster employers’ dedication in enhancing the conditions of bonded labor within the mining industry.

An open Q & A session was held with the mine owners and members of APMMA to address critical issues facing Pakistan’s mining sector. Syed Nazar Ali from EFP, Dr. Faisal Iqbal from ILO, Pir Muhammad Kakar and Razam Khan from PWF, Syed Abdul Ahad from QCCI, and Fateh Shah Arif from APMMA engaged in fruitful discussions regarding urgent need to mitigated all sorts of labour enlargement from the mines of Balochistan.

During this Open Q&A Session mine owners discussed and apprised about the critical issues faced to the owners and to the people associated with the sector, such as the urgent need for advanced rescue equipment and skill development along with improved sanitation facilities for miners.

It was agreed that a tripartite session between government employers and workers will be held in June 2024, to review and share the findings of the research made by the consultant highlighting prevalence of forced child and forced labour in the mining sector.

National University of Science & Technology (NUST) has set up its Industrial Innovation office, titled NUST ICON Centre in the premises of SITE Association of Industry, Karachi.

ISLAMBAD: The Oil and Gas Regulatory Authority (Ogra) and Pakistan Refinery Limited (PRL) have sealed a historic agreement under the Brownfield Refinery Policy for the expansion of oil processing plants. The main objective of the Brownfield Refinery Policy 2023 is to encourage the existing refineries to upgrade, modernise and expand their facilities to produce environmentally friendly fuels as per Euro 5 specifications and to maximise production of petrol and diesel by minimising the production of black fuel, ie furnace oil.

The policy was approved by the Cabinet Committee on Energy on July 8, 2023 and ratified by the federal cabinet on August 8, 2023. Thereafter, the Ministry of Energy (Power Division) notified it on August 17, 2023. Ogra, in its statement, said that in a landmark development aligning with Pakistan’s refining policy, Ogra and PRL officially inked a pivotal upgrade agreement on Thursday.

Following extensive deliberations, consultations and a series of meetings with key stakeholders, the agreement marked a significant milestone for the energy sector. “After a marathon of meetings, consultations and deliberations with the stakeholders, the agreement was finalised and we have signed the first one with PRL,” stated Ogra Chairman Masroor Khan.

The Brownfield Refinery Policy, a critical component of the national strategic framework, necessitates these agreements to facilitate the existing refineries in advancing their projects towards producing Euro 5-compliant fuels. The implementation of this policy is poised to usher in positive transformations within the oil sector.

“We believe that the upgrade projects are of paramount national importance. This agreement with PRL signifies the initiation of a series of strategic partnerships to enhance our refining capabilities and contribute to the production of environmentally friendly fuels,” added Khan.

“With the implementation of this policy, the local production of Euro 5-compliant mogas [petrol] and diesel will increase, which will reduce the burden of import and save foreign exchange,” he said. The refinery policy’s successful implementation is anticipated to bring about a positive and lasting impact on the country’s energy landscape.

However, other refineries have refused to press ahead with upgrade plans due to some differences.

Sources told Daily City News that refineries like Attock Refinery Limited (ARL), Parco and National Refinery Limited (NRL) had developed differences with the regulator over the draft of the agreement and refused to sign it before the deadline of November 16.

Sources said that the refineries raised concerns over force majeure, deemed duty, tax exemption, arbitration, etc and Ogra had informed the government about those policy concerns.

They pointed out that delay in implementation of the policy would lead to a hefty import bill, environmental pollution and increased maintenance cost of vehicles. Refineries are required to submit a guarantee worth Rs1 billion to avail themselves of the policy incentives for upgrading their plants

KARACHI, PAKISTAN: The CEO of the Drug Regulatory Authority of Pakistan (DRAP), Asim Rauf, has pledged to elevate therapeutic good exports to $1 billion in the current financial year, a significant increase from the $713 million recorded in the last fiscal year.

“We held a high-level meeting on the side-line of this conference to set up a plan to achieve the target of $1 billion in exports in the current financial year. The government is working proactively in collaboration with all stakeholders of the pharmaceutical sector, including pharmaceutical companies, raw material producers, and universities, to scale up the footprint of this sector in different countries,” he stated during a media briefing on the concluding day of the three-day event titled: 20th PharmaAsia, 11th Pharma Convention, held at the Karachi Expo Centre on Thursday and organised by Ecommerce Gateway Pakistan.

Rauf highlighted that the government is actively facilitating the private sector in establishing five Active Pharmaceutical Ingredient (API) plants. The aim is to boost the production of various medicines at a local level, reducing dependence on imported brands and ensuring the availability of medicines at affordable prices in the domestic market.

“DRAP has knuckled down to work to design an integrated system Quality Management System (QSM) with the close coordination of the provincial and federal drug inspection teams as per the guidelines of the World Health Organisation (WHO), which will surprisingly scale down medicine prices in the future,” he added.

The DRAP CEO emphasised that the organisation monitors the availability and pricing of medicines in the local market through a robust information system. It also acts against those responsible for unjustified price increases. Despite a surge in medicine prices due to the rupee’s disparity against the US dollar, Rauf clarified that retail prices for a significant number of drugs have also been reduced.

“The DRAP CEO’s presence has underscored the collaborative spirit and commitment of stakeholders to drive innovation and excellence in the pharmaceutical sector,” noted Farhan Anis, Vice President of Pharma Asia Exhibition.

Seminar

Speaking at a seminar on pharmaceutical industry-academia linkage, Rauf highlighted that DRAP is in the process of signing Memorandums of Understanding (MoU) with educational institutions to promote the sector through academic research and innovation.

“In the days of Covid-19, we heard the vaccine development was a huge task. This development usually takes approximately 10-15 years. That period was lessened and shortened to one-and-a-half years. It was possible due to various efforts. Efforts of the academia were outstanding. We need progress forward yearly in Pakistan. In the country, we see many challenges in the pharmaceutical industry, but we don’t find institutions, so I see there is a ray of hope today that we are talking about this issue, and we will be able to formulate a strategy after this seminar to ultimately move forward,” he stated.

Dr Arif Sabah from Ziauddin University underscored the need for linkages between educational institutions and the industry. He pointed out that both academia and industry lack research, and conducting research and developing products can bring both sides together in the healthcare system and pharmaceutical companies. He suggested dedicating the last semester of B-Pharmacy students to the industry or a hospital to gain practical and professional skills.

“In Pharma companies, there are certain units of production, quality control, supply chain, and the like. We are also deploying many tools in Artificial Intelligence (AI) as per our functionalities. For example, we generate AI models for some painkillers in times of rains or some medicines during Eidul Azha when more people are generally down with a stomach ache. This is an AI model that guides us about sales of particular products and how to package products easily and quickly as per the need in the market. AI also plays a pivotal role in the development of a new product in terms of research and operation. On top of that, this research and operation can connect the pharmaceutical industry with academia. Finally, I urge academia to teach some IT or computer courses so that fresh graduates of the pharmacy department have appropriate knowledge about technology,” said pharmaceutical industry professional and expert Abdul Aziz.

With 650 stalls, the exhibition promised an extensive showcase of state-of-the-art products, services, and innovations where over 160 international representatives from China, Turkey, Vietnam, the UK, Germany, and Malaysia took part.

ISLAMABAD: Pakistan would need another long-term International Monetary Fund (IMF) programme and will also have to increase electricity and gas prices for fulfilling the conditions of the ongoing bailout package, Caretaker Finance Minister Dr Shamshad Akhtar said on Thursday. Dr Shamshad also described the economic stability as “fragile” and “high external sector risks” – the conditions that warrant 25th IMF bailout package.

The minister’s remarks came a day after conclusion of the review talks for a $700 million tranche, which would unlock a total $1.6 billion in funding from the international financial institutions next month. In her interaction with media persons, the finance minister also announced to postpone the plan to float $1.5 billion Eurobonds due to adverse conditions.

Pakistan will have to be in the IMF programme for some time because of low domestic revenues and high needs of external financing, the interim finance minister said. She added that it would likely be an Extended Fund Facility (EFF) but maintained that no discussions took place with the IMF about the new bailout package. The EFF is a long-term structural adjustment programme that Pakistan had also availed in July 2019 but lapsed this year with $3.5 billion loan remaining undisbursed.

“The economic stability is fragile and needs consolidation through increase in domestic revenues and enhancing exports,” the interim finance minister said. “There is still very high risk to the external sector due to geopolitical tensions, situation in Afghanistan, stiff commodity prices and toughening global financial conditions,” she added. Dr Shamshad acknowledged that Pakistan would have to focus on macroeconomic stability.

Pakistan would pay back the $1 billion bond debt in April next year but it has postponed the plan to issue further Eurobonds to raise $1.5 billion debt, the finance minister noted, adding that the bonds issuance had been shelved due to high interest rates. Finance Secretary Imdadullah Bosal observed that a green bond could also be floated to raise the debt but claimed that Pakistan was in a comfortable position to meet all its financing needs.

Despite repeated questions, the finance secretary did not divulge the revised projected external financing requirements and the available financing. He promised to share these figures but no data was provided till the filing of the story. Bosal said that the government was in negotiations with a couple of foreign commercial banks for more loans but did not share the details.

Daily City News had reported that Pakistan was in negotiations for a $600 million loan from two Chinese banks. The circular debt has increased to 4% of the Gross Domestic Product, which is very concerning situation and the gas and electricity prices would have to be adjusted to contain it, the minister said while explaining one of the conditions agreed with the IMF.

The finance secretary stated that the gas prices would increase in January. The government has already increased the gas prices by up to 193% with effect from November to recover Rs406 billion more from the consumers. The prices had been increased by taking into account the total revenue requirements for the entire fiscal year.

Dr Shamshad said that as part of the plan, the management of the power distribution companies would be handed over to the private sector.
She mentioned that the IMF had not yet given a date for the board meeting to approve completion of the first review and the release of the $700 million tranche. The total disbursements by the IMF after the approval under the current programme would jump to $1.9 billion, she added.

The finance minister explained that the support by Pakistan’s international partners was “very critical” for the external sector stability – in a reference to the critical position of the country’s bilateral and multilateral lenders for remaining afloat. The finance secretary detailed that with the approval of the first review, about $1 billion funding by the Asian Development Bank, the Asian Infrastructure Investment Bank and the World Bank would be unlocked by December.

The World Bank would give a $350 million loan, the ADB $300 million and the AIIB $250 million, he added. He highlighted that access to three programme loans related to social protection, flood resilience and women inclusiveness were also in the pipelines. The external and the fiscal sectors also showed improvement on the back of better management of the exchange rate market, the minister said, adding that this would improve the reserves position by the end of December.

The foreign exchange reserves depleted to $7.4 billion, the central bank reported on Thursday. The finance secretary said that there was no prior action for the board meeting but approval of the SOE policy by the federal cabinet before end of November and compatibility of the National Highway Authority Act, Pakistan National Shipping Corporation Act, Pakistan Broadcasting Corporation Act and Pakistan Post Office Act with the SOE Act were the two conditions that would be fulfilled.

Compared to July there is an overall improvement in the economic conditions and the inflation rate has started slowing down, Dr Shamshad said, adding that there was also marked improvement in the investor’s confidence. The minister outlined eight major areas that the IMF would monitor during the programme period aimed at ensuring stability of fiscal, monetary, external sectors and improving management of the state-owned enterprises.

Pakistan will not distract from the path of fiscal consolidation, which is important for reducing the public debt, she added. The country’s total debt and liabilities have already peaked to Rs78 trillion, including the public debt mounting to Rs64.5 trillion. The minister said that the tax base would be further expanded and a Public Investment Management study would be launched soon to ensure better and targeted development spending by the federal and the provincial governments. She also noted that the stipend of the Benazir Income Support Programme beneficiaries would be increased from January in line with the prevailing inflation rate.

To a question about the interim government’s decision to set up a steering committee for the release of funds for the parliamentarians’ schemes, the finance secretary maintained that the funds would be released in line with the election commission’s policy. The finance minister said that 40% windfall tax on the income of the banks would generate additional Rs35 billion in taxes. She said that no mini-budget would be introduced but the contingency measures would be taken only if the FBR’s collection falls short of the target.

KARACHI: The Pakistan Stock Exchange (PSX) surpassed the milestone of 57,000 points, hitting a new all-time high during early trading hours on Thursday following the staff-level approval by the International Monetary Fund (IMF) for a loan tranche of $700 million. 

The successful completion of the first IMF review of the domestic economy also helped the Pakistani rupee as it made a significant recovery of over Rs2 to a one-week high of Rs286 against the US dollar in the inter-bank market.

PSX benchmark KSE-100 index was up by 493 points, hovering at a record high of 57,173 points before mid-day.

He added that the caretaker government has taken some tough economic decisions which is supporting the ongoing rally at PSX.

PSX has gained over 4,000 points during the past 10 days.

It has increased by over 34% in one year in the wake of early signs of economic recovery and the announcement of the forthcoming general election date.

The rebound in the rupee-dollar exchange rate has ended the downward trend seen in the previous 17 consecutive working days.

The currency had closed at a seven week low of Rs288.14/$ on Wednesday, having lost around 4% or around Rs11 in the past 17 working days.

KARACHI, PAKISTAN:

Caretaker Federal Minister for Energy, Power and Petroleum Mohammad Ali has said that Pakistan is actively engaged with Saudi Arabia for potential investment of around $10 billion in the oil refining sector, believing their efforts will bear fruit in a couple of months.

Talking to media on sidelines of “The Future Summit – The Big Picture” on Wednesday, the minister dismissed the impression that there were mere talks while nothing concrete would emerge. “You will see (meaningful) progress within one to two months,” he said.

Denying delay in Saudi Aramco’s investment plans for Pakistan, Ali stressed that developments were taking place consistently. “This is a big investment project of $8-10 billion…investment, funding structure, policy framework (all such things take some time).”

Responding to a question, the minister said Aramco would decide the location of investment like whether it would set up a multibillion-dollar refinery in Hub or Gwadar. “Aramco will decide the location of investment (not Pakistan),” he clarified.

Saudi Crown Prince Muhammad bin Salman had announced new investment projects worth $21 billion during his visit to Islamabad in February 2019. The $10 billion refinery project was one of them.

Aramco has announced plans to install the refinery with production capacity of 450,000 barrels of oil per day.

Earlier speaking at the inaugural session of the two-day conference, Ali called on the nation to focus on two long-term objectives to come out of the current financial and economic crisis, which included boosting export earnings and documenting the informal economy.

These two goals will lead to the much-needed structural reforms in addition to fixing the economic ills such as a volatile rupee-dollar exchange rate, high interest rate, heavy borrowing and an elevated fiscal deficit.

The minister lamented that wrong policies and decision-making of the past had created a multidimensional crisis while policy inconsistency and abrupt policy changes did not let Pakistan progress.

He pointed out that tax and other favours for millions of businesses in the informal sector were discouraging the culture of corporatisation.

Read Saudi Arabia shows interest in investment

He also questioned the allocation of resources for state-owned enterprises, saying that the countries which came into being along with Pakistan “are 10 to 20 years ahead of us while we have regressed.”

Pakistan’s per capita income has dropped instead of growing while tax-to-GDP (gross domestic product) ratio has remained in single digit.

He stressed that energy had become a lifeline for countries around the globe while 50 million people (almost 20%) in Pakistan were still living without electricity or off the grid. “We learnt lessons, but did not implement them,” he remarked.

Agricultural revolution

Speaking at the conference, Pakistan Army Director General Strategic Projects Major General Shahid Nazir said that under its Green Pakistan Initiative, Pakistan Army took the responsibility of transforming deserted land into fertile agricultural land.

Under the project, it is targeting to transform 18,200 square km of deserted land into farmland. Such land is found in all provinces across the country. “They have implemented a successful project in Cholistan, Punjab.”

The objective of the Green Pakistan Initiative is to promote food security, create avenues of import substitution and export surplus products, which are the key to becoming a developed nation.

“The aim is to attract foreign investment for such agricultural land. The UAE and China are the two potential big investors for the project,” Nazir said.

The project had been designed to get access to the $100 billion carbon credit market later, he revealed, adding that Pakistan had 12 different climates and they were developing 32 new varieties of seeds under the project.

Overseas Investors Chamber of Commerce and Industry President Amir Paracha asked conference participants to believe in Pakistan and invest in it as “today’s challenges are opportunities for tomorrow”.

“Young population is an asset of the nation. This will pay dividends as Pakistan has every kind of resources to flourish,” he said.

Nutshell Group CEO and former state minister of investment Muhammad Azfar Ahsan was of the view that the biggest challenge for Pakistan was not the economic crisis, but the 28 million children that were out of the school.