Day: September 28, 2021

Trade can play a key role in the post-COVID-19 economic recovery. Therefore, aligning policies with emerging realities is important. The global trade experts shred this viewpoint during a webinar, ‘Trade essential for Post Covid Economic Recovery’ organized by International Trade Center Geneva (ITC), in collaboration with Sustainable Development Policy Institute (SDPI).

Secretary Exports Policy Customs FBR, Ihsanullah Shah, opined that post-COVID-19 trade is facing unprecedented crises as many of the enterprises were struggling for survival. He said that the government had taken several steps to pull the exporters out of this grim situation, including a blanket exemption and enhancing the rebate rates on almost 300 items, including surgical goods, sports-related goods, textile-related goods, etc.

Dr. Muhammad Saeed, Senior Policy Advisor Trade Facilitation ITC, Geneva, explained that COVID-19, which was a public health crisis, led to disruption on the supply and demand side, resulting in an economic crisis of unprecedented magnitude. Thus, trade policy is part of the solution, and it has emerged that trade facilitation is important whether it is access to the vaccine or PPE or access to the production process related to imports and exports. He opined that the mindset needs to be changed pertaining to policy consideration and regulatory compliance for the exporter and importers.

National Coordinator of ITC-ReMIT, Dr. Tauqir Shah, suggested that the key role in post-COVID-19 recovery has to be played by digitally enabled SMEs. Therefore, the trade support institutions have to handhold SMEs, especially women-owned SMEs, in order to become digitally enabled.

Dr. Aadil Nakhoda, Assistant Professor, Department of Economics IBA Karachi, was of the view that the biggest challenge is the disruption to the global value chain. He said that the trade cost has increased both for the importer and exporters, and this has immense implications for trade.

Gender and trade expert, Ms. Roubina Toufiq, at the occasion, highlighted the importance of information sharing and government support for women-owned enterprises.

Trade Facilitation expert, ITC Geneva, Edwin Gaarder, while sharing his expert opinion, said that the COVID-19 pandemic had led us to a massive crisis in terms of economic perspective. He said that MSMEs were hardest hit as they were less prepared in the time of crisis. He added further that the trade support institution has an important role in transit towards the new normal. He suggested that Pakistan has to think about positioning itself in this model of globalization. Besides, more focus has to be paid to the green recovery.

Source: Pro Pakistani

New IFC Survey Highlights Business Case for Gender Equality in the Workforce in Pakistan.

Many private companies in Pakistan are still struggling to reach gender diversity targets, while fewer than one in 20 women make it to senior management roles, according to a new survey by the International Finance Corporation and the Pakistan Business Council that highlights the challenges and opportunities around women’s employment in the private sector.

More than half of the 86 companies across a range of sectors that responded to the Gender Diversity and Disclosure in Pakistan survey had less than 15 percent of women working for them, despite clear goals to reach the 15 percent target. Sixty-three percent had less than five percent of women in senior leadership roles, while 60 percent had either none or only one female member on their boards of directors.

Lack of awareness and transparency around gender diversity is also a problem. Nearly 70 percent of the companies surveyed were not collecting data on the gender pay gap, and the majority of the companies had never publicly disclosed their gender-specific targets.

The CEO of the Pakistan Business Council, Ehsan Malik, said, “The study shows that Pakistan’s private sector still has a way to go to reduce the gender gap in its workforce, and this includes improving awareness of the business case for employing more women. Investing in women isn’t just a moral imperative; it also broadens the talent pool and helps companies increase productivity”.

To address the issue, the survey includes five International Finance Corporation (IFC) Gender Equity Principles that private sector companies can adopt. They focus on promoting leadership and accountability, improving gender diversity, reducing the gender pay gap, creating an optimal workplace culture, and coaching and mentoring female employees.

Shabana Khawar, the IFC Regional Head of Operations for Afghanistan and Pakistan, remarked, “As the survey shows, Pakistan’s private sector can play a vital role in increasing gender diversity, from collecting data and encouraging transparency, to adopting gender-specific policies and offering flexible work options”.

“We hope these findings will help create more inclusive and flexible workplaces that empower women to participate,” she added.

While the participation of the female labor force in Pakistan has increased in recent years, it remains one of the lowest globally at around 22 percent and just 10 percent in cities. Entrenched social norms, mobility issues, a large and persistent gender wage gap, and structural barriers such as discrimination or the lack of awareness of employment laws have all contributed to this low rate.

The IFC had partnered with the Pakistan Business Council in 2019 to lead a peer-learning collaboration called ‘Tackling Childcare Pakistan: Creating Family-Friendly Workplaces’, with 13 Pakistani companies and Pakistan-based multinationals to promote better work-life integration and implement policies such as paid paternity leave, breastfeeding support, and childcare facilities.

Source: Pro Pakistani

The Federal Board of Revenue (FBR) has issued instructions to all Large Taxpayers’ Units (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs) to extend office hours for 29 September and 30 September to facilitate taxpayers in payment of duties and taxes and filing of income tax returns.

They have been directed to extend office hours tomorrow till 9 p.m and the day after till midnight.

The FBR has notified all Chief Commissioners for Inland Revenue to establish liaison with the State Bank of Pakistan (SBP) and authorized branches of National Bank of Pakistan (NBP) to ensure transfer of tax collection by these branches on 30 September 2021 to the respective branches of State Bank of Pakistan on the same date to account for the same towards the collection for September 2021, as per State Bank of Pakistan’s letter dated 28 September 2021.

Pursuant to the FBR’s request for opening banks’ branches for extended hours on dates mentioned above, the following instructions have been issued:

• The SHP-BSC offices and NB!’ branches (A, B, and C category) shall observe extended banking hours till 08:00 pm and 09:00 pm on 29 and 30 September 2021, respectively, for collection of government taxes and duties through manual mode as well as ADCs mode at Over-the-Counter (OTC) facility

In order to ensure same-day settlement of tax collections on 30 September, the following special clearing and settlement will be arranged through the M/s NIFT and ILink:

• M/s NIFT shall arrange special clearing at 07:00 pm on 30 September 2021 for the same-day clearing of payment instruments.

• Ws 1Link shall arrange to provide the settlement batch of transactions executed through the ADCs platform till 10:00 pm on 30 September 2021 to the SBP for settlement in government accounts.

It has been informed that NBP branches will settle their transactions of 30 September 2021 with respective SBP-BSC field offices/head offices latest by 10:00 pm the same day, i.e., 30 September 2021.

Further, in order to eliminate the issue of spillover of tax receipts, NB!’ shall ensure that no instrument concerning government receipts, lodged in aforesaid office hours, shall remain unattended at any NBP branch and shall be settled in the value date of 30″ September. 2021 through special clearing.

Source: Pro Pakistani

Pakistan’s external debt has increased up to US$ 26 billion during the last three years government tenure of Pakistan Tehreek-e-Insaf, as it is over US$ 122 billion.

This was revealed in a briefing by Additional Secretary Economic Affairs Division Zulfiqar Haider to the meeting of the National Assembly Standing Committee on Economic Affairs, held with Mir Khan Muhammad Jamali in the chair, at the Parliament House on Tuesday.

The Committee was informed that the total external debt of Pakistan in June 2018 was $96 billion and it increased by more than $26 billion in the last three years. Now, the volume of the external debt owed to Pakistan is over US$ 122.44 billion.

In his briefing, the Additional Secretary said the total debt of the Paris Club was $3.785 billion, out of which the debt was more than $2.97 billion and the interest rate was $814 million. He informed the Committee that the Paris Club had given relief in repayment of debt due to the COIVD-19 pandemic.

The Committee members expressed their concerns over the increase in the external debt and unanimously recommended convening a special meeting to discuss the matter. The Committee decided that the Ministry of Finance and the State Bank of Pakistan (SBP) would also be invited to the next meeting.

It directed the Economic Affairs Division to furnish the details of disbursement of funds for the ongoing portfolio to the Secretariat.

The Additional Secretary further informed the Committee about the establishment of ‘Joint Commissions’ for bilateral ‘Joint Economic Global’ phenomenon. He said that 67 JMCs and other bilateral commissions had been established since 1970. The Committee also directed the Economic Affairs Division to provide the details of external loans for the years 1972, 1985, 1999, 2008, 2017, and 2021 with the comparison of the dollar exchange rate at that time during the first month of each year.

On the other hand, Qaiser Ahmed Sheikh from Pakistan Muslim League-Nawaz commented that comparatively, the dollar was Rs. 50 cheaper when this relief was given. He said that due to the Rupee devaluation, the country had to pay according to the new exchange rate. He added that the Rupee devaluation caused huge losses to the country and Pakistan’s external debt increased manyfold, causing pressure on the economy.

Source: Pro Pakistani