Business

EXIM Pakistan launched to catalyze global trade

Published

5 months ago

December 21, 2023

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EXIM Pakistan launched to catalyze global trade

Caretaker Minister for Finance, Revenue, and Economic Affairs, Dr Shamshad Akhtar here on Thursday formally launched the Pakistan’s Export-Import Bank (EXIM), marking a significant stride towards fortifying external trade, attracting investments and propelling broader economic growth in the country.

“EXIM’s operationalization is a proud moment and a major milestone for us today. It will augment the banking and trade finance landscape as we know,” the finance minister remarked while speaking at the inaugural ceremony of the bank.

The minister highlighted the global impact of EXIMs, citing that these institutions disbursed a staggering $2.5 trillion in trade finance last year, substantially fostering exports across over 60 countries and boosting export investments.

Detailing the diverse portfolio of products offered by EXIMs, Dr Akhtar emphasized the significance of export credit loans, which provided competitive-rate financing to exporters.

The minister said as the EXIM of Pakistan grew and matured it would shape Pakistan’s trade finance, promoting it principally through a proper institutional framework backed by effective policies and regulatory framework.

However, she said it would need to be accompanied by streamlining export policy frameworks further because together both would be able to contribute to balance of payment sustainability that in the past had been hurting of low levels of export earnings.

Dr Akhtar highlighted EXIM’s potential to enhance Pakistani exporters’ competitiveness globally through provisions like lending, credit insurance, and guarantee services. These services aim to level the playing field against competitors reliant on their national Export Credit Agencies (ECAs) and EXiMS, facilitating access to broader global markets.

Notably, EXIM would introduce export insurance products in Pakistan to safeguard exporters against credit default risks, empowering them to explore international infrastructure projects.

She underscored the necessity for EXIM to navigate its operations effectively, ensuring a delicate balance between export growth, risk diversification, and industry sustainability. Additionally, Dr Akhtar emphasized EXIM’s role in reinforcing its core functions of insurance while gradually managing export finance schemes in compliance with legal constraints.

Acknowledging the collaborative effort between EXIM and the State Bank of Pakistan (SBP), Dr Akhtar emphasized the imperative for their partnership until the SBP could phase out of export finance operations smoothly, reinforcing EXIM’s capacity-building initiatives.

She also highlighted the importance for EXIM Pakistan to adhere to international practices while showcasing its instrumental role in disbursing trade finance globally. The launch of EXIM marks a transformative phase in Pakistan’s economic landscape, poised to unlock new horizons in trade and economic development.

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Business

Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

Published

21 hours ago

May 17, 2024

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Chinese firm aims to expand investments in Pakistan, shows interest in mining sector

A notable Chinese company has expressed keen interest in expanding its investment in Pakistan, in yet another sign of investor confidence boost in the leadership of Prime Minister Shehbaz Sharif.

A delegation from Chinese firm MCC Tongsin Resources led by its Chairman Wang Jaichen called on PM Shehbaz here on Friday.

The premier invited the Chinese company to invest in Pakistan’s mining sector and manufacturing of export goods.

Shehbaz assured the delegation that his government would extend all-out facilitation to the company from minerals exploration and processing to the export of goods.

The PM instructed the relevant federal ministers and officers to continue consultation with the Chinese firm, taking the Balochistan chief minister, provincial departments and stakeholders on board.

The delegates reposed trust in PM Shehbaz’s leadership, and expressed keen interest in enhancing their investment in Pakistan’s mining and minerals sectors.

The delegation briefed Prime Minister Shehbaz about the construction of a mineral park in Pakistan and their future investment plans.

The premier welcomed the Chinese firm and highlighted the priority steps by his government to promote foreign investment in Pakistan.

He said that being a time-tested friend, China supported Pakistan in every difficult hour for which the Pakistani nation was grateful to the leadership and people of China.

Federal ministers Ahad Khan Cheema, Dr Musaddik Malik, Rana Tanveer Hussain, Jam Kamal Khan and relevant senior officers attended the meeting.

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Business

Govt jacks up power price by Rs1.47 per unit

Published

21 hours ago

May 17, 2024

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Govt jacks up power price by Rs1.47 per unit

The government on Friday increased the electricity tariff by Rs1.47 per unit.

According to Nepra sources, the collection from consumers will take place in August, September, and October.

The electricity companies had requested the funds as part of the third quarter adjustment for 2023-2024, seeking Rs 31.34 billion under capacity charges.

Sources said that Rs5.57 billion were requested for operation and maintenance costs, and Rs12.38 billion were requested for the transmission and distribution impact under monthly fuel cost adjustment.

Previously, Nepra had completed the hearing on the electricity companies’ request under the quarterly adjustment.

Nepra approved the Power Division’s request, allowing an increase of Rs 1.45 per unit in electricity prices.

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Business

Hong Kong allows China’s digital yuan to be used in local shops

Published

21 hours ago

May 17, 2024

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Hong Kong allows China's digital yuan to be used in local shops

Hong Kong will allow mainland China’s pilot digital currency to be used in shops in the city, the head of its de facto central bank said on Friday, marking a step forward for Beijing’s efforts to internationalise the yuan amid rising geopolitical tensions.

The programme, backed by Beijing, will allow mainland Chinese and Hong Kong residents to open digital yuan wallets via a mobile app developed by China’s central bank and will permit them to make payments in retail shops and some online stores in Hong Kong and in mainland China.

Transactions using e-CNY, predominantly for domestic retail payments in China, hit 1.8 trillion yuan ($249.27 billion) as of end of June 2023, with 120 million digital wallets opened, according to the latest disclosure from China’s central bank.

Using the wallet, users can make payments at over 10 million merchants in 17 provinces and cities in the mainland.

Each wallet used in the city will be subject to a balance limit of 10,000 yuan, with single transactions and daily payments capped at 2,000 yuan and 5,000 yuan, respectively, officials from the Hong Kong Monetary Authority said.

Peer-to-peer transfers will not be allowed at the moment, according to the HKMA.

“By expanding the e-CNY pilot in Hong Kong .. users may now top up their wallets anytime, anywhere without having to open a mainland bank account, thereby facilitating merchant payments in the mainland by Hong Kong residents,” HKMA Chief Eddie Yue said.

Currently, users of other digital yuan wallets such as those operated by Ant Group and Tencent can make payments in the city.

Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp and Bank of Communications Co have been selected as e-CNY wallet operators.

The yuan’s use in global finance remains low, though it has shown steady increases.

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