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Israel's military campaign against Hamas and Hezbollah could reshape Middle Eastern alliances and weaken Iran's regional influence.

ISLAMABAD: The Ministry of Mari­time Affairs has prepared the draft of a new shipping policy, which includes provisions aimed at providing financial sec­u­rity to the owners of registered ships.

‘Pakistan Shipping Policy 2024’ will replace Pakistan Merchant Marine Policy 2001, as well as the amended version of 2019. The ministry organised a workshop of stakeholders on Wednesday to discuss the draft of the new shipping policy.

Maritime Affairs Secretary Syed Zafar Ali Shah, chairpersons of port authorities, senior officials of the maritime affairs ministry and stakeholders from the private sector participated in the workshop.

The policy makes it possible by legislation to furnish a bond of adequate amount to owners of any registered ship if it is detained or seized for any reason within the territorial jurisdiction of Pakistan, and it should be within 24 hours after taking the surety bond.

The secretary of maritime affairs informed participants of the workshop that the Shipping Policy 2024 has been made in accordance with the standards and rules of the International Maritime Organisation.

It was noted that the government should ensure that if the case is settled, the bail bonds are returned within one month.

In this regard, a help desk should also be established within the ministry of maritime affairs and special courts related to maritime affairs should also be set up having powers equal to high courts.

The draft proposes that the newly registered Pakistani shipping company will pay $0.75 per gross registered tonnage for five years, while currently the Pakistan National Shipping Corporation (PNSC) is paying $1 per gross registered tonnage on its revenue.

The rebate of $0.25 to new companies is likely to encourage domestic and national investors to show interest in maritime industry.

The draft has proposed that the registered Pakistani shipping companies would be allowed to seek financing from foreign financial institutions and banks.

A proposal to grant tax exemption for 10 years to new foreign shipping companies was brought forward by the participants of the workshop, and they stressed for assistance by state authorities to Pakistan shipping companies in opening foreign currency accounts.

Published in Dawn, November 14th, 2024

ISLAMABAD: The Ministry of Commerce and the World Bank have agreed to form a joint working group on trade to capitalise on the country’s true export potential.

The understanding was reached during a meeting of Commerce Minister Jam Kamal Khan with a team from the World Bank. Both sides agreed that the working group would meet periodically to advance the goal of realising Pakistan’s export potential of $60 billion.

An official announcement said both sides discussed Pakistan’s export reform agenda, focusing on strategies to enhance export competitiveness and streamline enabling policies.

The discussion also addressed how the World Bank can support these initiatives under the broader country programme.

Mr Kamal highlighted the whole-of-government approach to export enhancement, which promotes a unified policy framework to improve competitiveness and the Ease of Doing Business for exporters.

This strategy emphasises export-led growth by providing crucial enabling factors such as financing, liquidity support, reduced input costs, and regulatory facilitation to empower Pakistan’s export sector.

Published in Dawn, November 14th, 2024

CAIRO: Israeli military strikes killed at least 22 Palestinians across the Gaza Strip on Wednesday, as Israeli forces deepened their incursion into Beit Hanoun town in the north, forcing most remaining residents to leave.

Residents said Israeli forces besieged shelters housing displaced families and the remaining population, which some estimated at a few thousand, ordering them to head south through a checkpoint separating two towns and a refugee camp in the north from Gaza City.

Men were held for questioning, while women and children were allowed to continue towards Gaza City, residents and Palestinian medics said.

Israel’s campaign in the north of Gaza, and the evacuation of tens of thousands of Palestinians from the area, has fuelled claims from Palestinians that it is clearing the area for use as a buffer zone and potentially for a return of Jewish settlers.

Students occupy defence firm Leonardo’s headquarters in Italy to protest against assistance to Tel Aviv

“The scenes of the 1948 catastrophe are being repeated. Israel is repeating its massacres, displacement and destruction,” said Saed, 48, a resident of Beit Lahiya, who arrived in Gaza City on Wednesday.

“North Gaza is being turned into a large buffer zone, Israel is carrying out ethnic cleansing under the sight and hearing of the impotent world,” he said via a chat app.

Protest

Around a hundred students occupied Leonardo’s Turin headquarters to denounce what they say is the Italian defence group’s complicity in Israel’s bombardment of the Gaza Strip.

The students, who unfurled a flag of the Palestinian territories from the roof of Leonardo’s offices, said the company was supporting Israel by providing remote technical assistance and spare parts to Israel’s air force. Leonardo declined to comment.

Images released by the students show them in Leonardo’s offices waving Palestinian flags and carrying spray cans. Outside they hung banners on the buildings saying ‘no arms to Israel’ and accusing the group of complicity in genocide. They also clambered on top of a plane in the grounds of the company’s headquarters.

Italian Defence Minister Guido Crosetto condemned the protest, saying on X that the students were “destroying and defacing” the offices where an “important meeting with the staff of the defence ministry” was taking place.

“These people must be treated for what they are, dangerous subversives. Criminals have no political colour, they are just criminals,” he said.

No plans for settlers’ return

The Israeli military has denied any such intention, and Prime Minister Benjamin Netanyahu has said he does not want to reverse the 2005 withdrawal of settlers from Gaza. Hardliners in his government have talked openly about going back.Speaking on Wednesday, US Secretary of State Antony Blinken said Israel “has accomplished the goals that it set for itself” by taking out Hamas’ leadership and ensuring the group is unable to launch another massive attack. “This should be a time to end the war,” he said.

“We also need to make sure we have a plan for what follows,” he said, “so that if Israel decides to end the war and we find a way to get the hostages out, we also have a clear plan so that Israel can get out of Gaza and we make sure that Hamas is not going back in.”

Senior Hamas official Sami Abu Zuhri said Blinken’s comments showed: “We are facing one enemy and that the US enmity against the Palestinian people is no less than that of the occupation.”

Medics said five people were killed in an Israeli strike that hit a group of people outside Kamal Adwan Hospital near Beit Lahiya, while five others were killed in two separate strikes in Nuseirat in central Gaza Strip where the army began a limited raid two days ago.

In Rafah, near the border with Egypt, one man was killed and several others were wounded in an Israeli airstrike, while three Palestinians were killed in two separate Israeli airstrikes in Shejaia suburb of Gaza City, medics added. Later on Wednesday, an Israeli strike on a house in western Khan Younis in the southern Gaza Strip killed eight people, medics said.

Published in Dawn, November 14th, 2024

PESHAWAR: Governor Faisal Karim Kundi on Wednesday said that efforts were underway to highlight the issues of Khyber Pakhtunkhwa, especially of southern districts, in Special Investment Facilitation Council (SIFC) regarding trade and business.

He expressed these views during a meeting with a delegation of Kohat Chamber of Commerce and Industry, led by its president and vice-president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Rashid Ahmad Pracha.

During the discussion, the governor emphasised the importance of business community in fostering trade and industrial growth in the region.

He said that federal government allocated funds for establishment of an expo centre by Trade Development Authority in Peshawar, which was expected to be completed soon.

He said federal minister for information also approved establishment of a hall for cultural activities. He also mentioned his efforts to strengthen ties between traders from Saudi Arabia and Khyber Pakhtunkhwa as well as explore opportunities for business growth with Tajikistan.

Mr Kundi said that there were seven trade routes between Khyber Pakhtunkhwa and Central Asia.

“If these routes are restored, they can significantly change the province’s economic outlook,” he added.

The delegation also highlighted the increasing interest in setting up factories in Kohat and other southern districts of the province.

However, it raised concerns over lack of institutional support, inadequate facilities and poor connectivity, which remained main obstacles for investors.

The delegation requested the governor to forward to relevant authorities its recommendations for establishment of a Smeda office in Kohat, reduction in electricity tariffs and provision of other facilities and incentives.

In response, Mr Kundi assured the delegation of his full support and commitment to resolving the issues. He said that federal government was also serious about promoting trade and industry.

He said that international institutions acknowledged the improving economic situation in Pakistan.

The meeting concluded with the delegation thanking the governor for his assurances of cooperation and expressing the hope that the discussion would yield positive results for the province’s industrial and commercial development.

Published in Dawn, November 14th, 2024

PESHAWAR: Khyber Pakhtunkhwa Chief Minister Ali Amin Khan Gandapur on Wednesday said his government is committed to providing maximum opportunities to girls to excel in education and sports.

He said that perseverance was key to success in life and that striving forward with determination and high spirits ultimately led to success.

He was speaking at the concluding ceremony of All Pakistan Inter-Boards Girls Cricket and Tennis Championship held at the Board of Intermediate and Secondary Education, Peshawar, according to a statement issued from the chief minister’s secretariat on Wednesday.

The competitions commenced on Nov 9, featuring teams from KP and various other educational boards from across the country.

Mr Gandapur welcomed the participants from other provinces and emphasised the importance of organising sports alongside academic activities.

“The purpose of holding such events is to polish the skills of our youth, and get them prepared for practical life ahead,” the statement quoted Mr Gandapur as saying. “Challenges are part of the journey to success and should be faced head-on,” he added.

“A person becomes great when he dreams big,” he said while quoting PTI founder Imran Khan, adding that one must set ambitious goals and move forward with courage.

The chief minister congratulated the Lahore Board’s cricket team on its victory, and affirmed the importance of investing in youth.

Mr Gandapur also announced cash prizes of Rs50,000 for each participating team.

He also distributed trophies and shields among the players.

In tennis, the Lahore Board secured the first position followed by Mardan, while Peshawar Board and Punjab Board of Technical Education, Lahore, shared the third position.

Similarly, the Lahore Board clinched the first position in the cricket tournament, while Peshawar remained the runner-up.

The chief minister also inaugurated a newly-constructed gymnasium at the Peshawar BISE, which has been established at a cost of Rs160 million. The facility includes boxing, karate, taekwondo, wrestling rings, a table tennis court and a fitness gym.

Published in Dawn, November 14th, 2024

RAWALPINDI: Pakistan Intern­ational Airlines (PIA) will transport 35,000 Haj pilgrims to the holy land under a government scheme in 2025.

A spokesman for PIA said the Ministry of Religious Affairs and PIA have signed an agreement, under which the national flag carrier will operate special flights from six cities — Karachi, Islamabad, Lahore, Quetta, Multan and Sukkur — to transport 35,000 Haj pilgrims to the holy land in 2025.

The agreement was signed by PIA CEO Air Vice Marshal Aamir Hayat and additional religious affairs secretary Dr Syed Ata-ur-Rehman.

The PIA CEO reaffirmed his organisation’s commitment to provide best possible services to the Haj pilgrims.

The federal cabinet recently approved the Haj Policy for 2025, setting the cost for pilgrimage between Rs1,075,000 and Rs1,175,000. The sacrifice amount of Rs55,000 will be in addition to Haj expenses. This year’s Haj quota for Pakistan is 179,210, divided equally between government and private sector. Children under the age of 12 will not be allowed to travel for Haj.

The “Road to Makkah” facility will be available at Islamabad and Karachi airports. Haj group organisers will sign service provider agreements with the ministry of religious affairs, and these organisers will be closely monitored for provision of services.

Published in Dawn, November 14th, 2024

AFTER Pakistan floated the idea of ‘climate diplomacy’ to tackle cross-border pollution in light of smog which has engulfed vast tracts of India and Pakistan, a US official indicated on the sidelines of COP29 that the White House may throw its weight behind any initiative taken in this regard.

Last month, Punjab Chief Minister Maryam Nawaz expressed her government’s intention to approach India to jointly counter the air pollution, which mostly comes from vehicular and industrial emissions, and is exacerbated in winter due to stubble burning.

Talking to Dawn on the sidelines of COP29 in Baku, Ali Zaidi — national climate adviser to the Biden administration — said the US was “100 per cent supportive” of partnership-based approaches to tackle problems that cannot be solved in isolation.

“In the US, we have this thing called the ‘good neighbour rule’, which governs smog. It actually was developed when we witnessed exactly this phenomenon in the US. So you know when it comes to cross-border pollution and cross-border issues, we are 100pc suportive of partnership-based approaches to tackle problems that cannot be solved on their own,” he said in response to a question about smog, which has made life unbearable for millions in Pakistan.

The White House official said the US was already active in the Hindu Kush — often referred to as ‘The Third Pole’ for housing the most glaciers in the world outside the polar regions — to better coordinate the mitigation response, because environmental impacts from glaciers do not isolate themselves to one jurisdiction.

“I think the regional solutions are a necessary complement to this sort of multilateral dialogue,” he said, referring to the COP summit.

The adviser said regional cooperation among relevant parties to address climate change would have more impact than putting “another ornament on a 1,000-page document (COP)”.

In response to a question about the failure of the world to help Pakistan after the 2022 floods caused damages to the tune of $30 billion, he said the global community needed to reinvent its approach to rebuilding from disasters, particularly by investing in pre-disaster mitigation.

According to the White House official, the US took a really long time to reengineer its thinking domestically in terms of building resilience into the recovery.

He favoured approaches that ran “consistent with the financial position” of states that needed to do rebuilding, saying there was a need to mobilise more countries to move more capital to help with adaptation and mitigation in these vulnerable countries.

In response to a question about the loan-laden climate finance framework, he said, “If you are targeting projects that have very clear cash flow and a strong counterparty then debt works just fine.”

He agreed some concessionary capital did need to come in depending on the technological aspect, the richness of the resources and the maturity of the market, while referring to India’s solar projects.

Vulnerable areas need significant grant-based aid, but there is still a need to figure out how to monetise risk reduction associated with adaptation finance and that’s why it was difficult to do. These places are going to soak up more grant-based finance, he said.

Speaking about the Trump-led US administration all set to take over from the Biden administration, he appeared optimistic, saying the states in the US will figure out how to provide the policy support even if the federal government stopped being part of it. About the US, he said it should remain part of the dialogue and be the author of the roadmap that will govern the contours of climate finance for decades to come.

Produced as part of the 2024 Climate Change Media Partnership, a journalism fellowship organised by Internews’ Earth Journalism Network and the Stanley Centre for Peace and Security.

Published in Dawn, November 14th, 2024

• Hike in petroleum levy, imposition of GST on petroleum products not expected anytime soon
• Govt sees economic activity picking up next month due to stable rupee, lower policy rate
• Senate body points to issues in Islamic banking, fraudulent POS receipts, fake ATM notes
• 10pc levy on transport with Iran has left over 600 trucks stalled

ISLAMABAD: The Inter­national Monetary Fund (IMF) is reported to have expressed satisfaction over the increase in the tax-to-GDP ratio by nearly 1.5 percentage points, relieving the authorities from any push for additional tax measures through a mini-budget.

According to sources closely involved in ongoing discussions with the visiting IMF mission, the Federal Board of Revenue’s (FBR) revenue collection target for the current fiscal year will remain unchanged at Rs12.97 trillion. Authorities have ruled out the need for additional taxes or a mini-budget, citing the IMF’s positive response.

Officials said that economic activity is expected to pick up by December in view of a stable exchange rate and a reduction in the State Bank’s policy rate, likely offsetting a tax shortfall of around Rs190 billion recorded in the first four months (July to October) of the fiscal year.

There would neither be any increase in the petroleum levy nor would general sales tax (GST) be imposed on petroleum products, the sources said after a meeting of the Senate Standing Committee on Finance and Revenue presided over by PPP Senator Salim Mandviwalla.

They said the tax-to-GDP ratio had increased from 8.8pc to 10.3pc and the IMF was satisfied with this 1.5 percentage point improvement.

The sources reiterated the commitment given to the IMF that tax collection on agriculture income would start from the next fiscal year. They said that tax reforms were progressing and the draft Tax Laws Amendment Ordinance 2024 had been presented to the prime minister for approval. The ordinance contains a new family income tax return system and abolishes the concepts of non-filers and late filers.

The sources, however, hinted at tinkering with the Tajir Dost Scheme to effectively bring in traders into the tax net and said these were being discussed with the IMF mission during the ongoing meetings.

The IMF has been told that the FBR collected Rs12bn from retailers during the first quarter of 2024-25, although only 500,000 potential retailers were the target out of three million small shopkeepers.

‘Slow progress on Islamic banking’

Earlier, the Senate panel decided to call scholars of the Council of Islamic Ideology to have input on the working of Islamic banking operations in Pakistan, for which a special session would be arranged.

The central bank’s deputy governor told the panel that Riba was the main difference between conventional banking and Islamic banking.

Senator Farooq H. Naek pointed out that full implementation of Islamic banking was committed for 2027, but progress had been very slow. The SBP’s deputy governor emphasised the need for continued deliberation on Islamic banking and assured the committee that several banks were actively working towards compliance.

FBR Chairman Rashid Mehmood Langrial told the panel that FBR’s enforcement would be improved in the coming months after approval of a transformation plan, including enhancing the board’s operational expertise, organisational capacities and anti-smuggling measures.

Key discussions during the meeting included the contentious 10pc levy on transport and businesses between Pakistan and Iran, raised by Senator Manzoor Ahmad Kakar in a Senate session. The committee resolved to report to the house that the issue may be referred to the Standing Committee on Communications, noting that the levy, imposed with the federal government’s approval, did not pertain to the Federal Board of Revenue.

While FBR officials emphasised that this specific tax was not their responsibility, Senator Kakar raised concerns that Pakistani trucks were being unfairly taxed, with over 600 trucks currently parked due to the levy. The committee agreed to forward the matter to the Communications Committee for further deliberation.

The committee also discussed concerns raised by Senator Mohsin Aziz regarding the fee collected by FBR for point of sale (POS) services and its utilisation. The FBR chairman confirmed the introduction of a policy to penalise businesses that are issuing fake POS receipts, imposing fines of Rs500,000 and shutting down shops involved in such practices.

Senator Aziz highlighted weaknesses in enforcement, with some fake receipts circulating in the mar­ket, including a bill in Islamabad marked “tentative”. The FBR chairman acknowledged the issue and assured that enforcement mea­sures would be strengthened soon.

A key briefing by the SBP highlighted the performance of banking branches in smaller provinces, revealing that as of June 30, 2024, there were 3,334 banking branches operating in Balochistan, Khyber Pakhtunkhwa, Azad Jammu and Kashmir and Gilgit-Baltistan, accounting for 20pc of the total nationwide branches. Additionally, 199 branches of microfinance banks were serving these regions, representing 13pc of the country’s total microfinance network.

Another pressing issue discussed was the problem of counterfeit currency dispensed from ATMs. Senator Kakar cited a case where a young man received fake Rs5,000 notes from an ATM. The CEO of a commercial bank assured the committee that security measures were being enhanced to address this issue.

Published in Dawn, November 14th, 2024

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