Federation General Secretary Rubina Jamil, Fazal-e-Wahid, Sultan Khan, Shabbir Shah, Mian Rafique, Muhammad Ilyas, Nasir Gulzar, Zaheer-ud-Din Babur strongly condemned the economic crises in their speeches.
They said that the so-called democratic government was adopting imperialist policies which are anti-workers. Punjab Government implemented Punjab Industrial Relation Act 2011 which restricted the formation trade union rights. They held that government was responsible for worst crises in railways and thousands of T.L.A workers in railways were still working as contract workers. They condemned the government’s anti-worker policy.
Speakers said the they were very much concerned about the situation of 20 million home based workers in which 70pc were female workers getting very less wages. Labour laws were not applicable and women workers were facing sexual harassment and working in miserable conditions, they said, adding if their demands were not accepted, they would hold protests across the country.
Prospects of German investment in the auto, power, textile and agriculture sectors have brightened as German Parliament on Friday ratified the new Bilateral Investment Treaty (BIT)
with Pakistan.
The last version of BIT was signed on December 1, 2009 in Berlin during the visit of Prime Minister Syed Yousaf Raza Gilani to Germany. Pakistan has already ratified the new treaty in 2010.
After ratification by Germany, the new BIT replaces the old agreement for protection of investment, which the two countries had signed in 1959. It was the world’s first ever investment treaty and the first which Germany signed with any country after the Second World War.
It is important to mention Germany is a strong supporter within European Union
for Pakistan to obtain greater market access in Europe.
It is also supporting the granting of GSP-Plus status to Pakistan.
According to officials, the new BIT would boost economic cooperation with Germany and guarantees favorable conditions for German companies to invest in Pakistan. It will strengthen cooperation between corporate sectors of both the countries. The two most potential sectors for German investments are renewable energy and value addition in agriculture.
Under the bilateral treaty, the German government would provide insurance guarantees to investments by its companies in Pakistan and cover their political and security risks.
The new treaty will facilitate more German businesses, particularly small and medium sized companies, to benefit from the opportunities which Pakistan’s economy offers particularly in the power sector, renewable energy, environmental technologies, infrastructure, housing, healthcare, and information technology.
Germany is Pakistan’s largest trading partner in Europe. Many German companies are doing business in Pakistan. Bilateral trade is growing, particularly in the form of exports from Pakistan to Germany during the past three years. Pakistan’s exports which were around $880 million in 2007, first time ever crossed the $1 billion mark in 2008. In year 2009, despite impact of global economic recession, our exports were over $922 million and have shown a strong recovery in 2010 to achieve the highest ever figure in a calendar year reaching over $1.13 billion. Total bilateral trade volume during 2010 was over $ 2.16 billion with trade balance shifting in favour of Pakistan after several years.
The last version of BIT was signed on December 1, 2009 in Berlin during the visit of Prime Minister Syed Yousaf Raza Gilani to Germany. Pakistan has already ratified the new treaty in 2010.
After ratification by Germany, the new BIT replaces the old agreement for protection of investment, which the two countries had signed in 1959. It was the world’s first ever investment treaty and the first which Germany signed with any country after the Second World War.
It is important to mention Germany is a strong supporter within European Union
for Pakistan to obtain greater market access in Europe.
It is also supporting the granting of GSP-Plus status to Pakistan.
According to officials, the new BIT would boost economic cooperation with Germany and guarantees favorable conditions for German companies to invest in Pakistan. It will strengthen cooperation between corporate sectors of both the countries. The two most potential sectors for German investments are renewable energy and value addition in agriculture.
Under the bilateral treaty, the German government would provide insurance guarantees to investments by its companies in Pakistan and cover their political and security risks.
The new treaty will facilitate more German businesses, particularly small and medium sized companies, to benefit from the opportunities which Pakistan’s economy offers particularly in the power sector, renewable energy, environmental technologies, infrastructure, housing, healthcare, and information technology.
Germany is Pakistan’s largest trading partner in Europe. Many German companies are doing business in Pakistan. Bilateral trade is growing, particularly in the form of exports from Pakistan to Germany during the past three years. Pakistan’s exports which were around $880 million in 2007, first time ever crossed the $1 billion mark in 2008. In year 2009, despite impact of global economic recession, our exports were over $922 million and have shown a strong recovery in 2010 to achieve the highest ever figure in a calendar year reaching over $1.13 billion. Total bilateral trade volume during 2010 was over $ 2.16 billion with trade balance shifting in favour of Pakistan after several years.
German investment in Pakistan has been rising steadily in recent years. Germany has become one of the major sources of foreign direct investment (FDI) in Pakistan. For year 2009-2010, Germany was fifth largest source of FDI, moving up from its ranking of seventh biggest source of FDI in the country a year before.
The European Union (EU) again seemed helpless in the World Trade Organisation (WTO) on Thursday as India, displayed its traditional rivalry with Pakistan and continued its opposition to the proposed trade concession to Islamabad.
The proposals will again be brought under discussion in the General Council of WTO in July 2011 but there is little hope that the deadlock will be broken as India’s inflexible stance over the concession will likely remain consistent.
This was the fourth meeting of WTO since the European Council in its meeting on September 16, 2010, decided to grant Pakistan special concessions to support its ailing economy in the wake of devastation wreaked by the unprecedented floods. The total worth of export of these tariff lines was expected to be $1.03 billion and the average tariff on these products around 8.86 percent.
Though the ambassador of Pakistan to WTO Shahid Bashir has claimed that the proposals have moved forward after the withdrawal of objection from Vietnam but the big hurdle in the way of approving the concession was and is India, sources said.
“Vietnam, Peru, Bangladesh and Sri Lanka were not opposing the draft bill submitted by EU, they however expressed concerns of the implications posed by the proposals and its effect on their own textile based economy,” they pointed out, adding that India was only the country which has challenged on the grounds it was a gross violation of WTO rules.
The Indian ambassador again raised the same objection in the meeting of Council for Trade and Goods of WTO on May 26, 2011, reiterating its position that the waiver of WTO rules was against the violation of the organisation’s rules which are being followed by 153 countries. Delhi’s argument was based on common concerns regarding the change of rules to a particular country which could establish a new trend in the WTO.
The EU’s representative, which had earlier called the meeting as a last resort to pass the proposals, was once again ready to wait for another month to at least secure approval from other countries like Peru and Bangladesh. The EU hoped that India, once it loses support from the few countries in opposition, might make a conciliatory gesture towards Pakistan by allowing preferential trade with Europe.
However, sources claimed that the objections raised by Delhi was not because of the trade implications inherent in the EU proposals but was purely the result of the traditional animosity exhibited in its refusal to accede to the draft proposals in WTO.
Having, comparatively, little share of exports in the textile sector; the limited concession to Pakistan would not dent the overall huge export of the neighboring country, sources opined.
The Indian ambassador, who had expressed distress in previous meetings of WTO over the ‘waiver from GATT Articles I and XIII’ concerning autonomous preferences for Pakistan, had said that temporary tariff concessions could neither attract foreign direct investment (FDI) or provide employment to those affected in the flash floods.
India was also repeating its objections that the tariff concessions would not benefit those who needed aid most while the gainers would be the existing producers and their employees as they may gain in terms of overtime and boosted exports. Its representative also claimed that flood affected areas are far away from the industrial centers and the victims of floods would not benefit from the concessions.
Delhi was also raising the technical concerns that even a positive gesture on the part of the EU would also cause damage in terms of trade divergence and impact primarily on poor workers in both less developed countries and developing countries.
The proposals will again be brought under discussion in the General Council of WTO in July 2011 but there is little hope that the deadlock will be broken as India’s inflexible stance over the concession will likely remain consistent.
This was the fourth meeting of WTO since the European Council in its meeting on September 16, 2010, decided to grant Pakistan special concessions to support its ailing economy in the wake of devastation wreaked by the unprecedented floods. The total worth of export of these tariff lines was expected to be $1.03 billion and the average tariff on these products around 8.86 percent.
Though the ambassador of Pakistan to WTO Shahid Bashir has claimed that the proposals have moved forward after the withdrawal of objection from Vietnam but the big hurdle in the way of approving the concession was and is India, sources said.
“Vietnam, Peru, Bangladesh and Sri Lanka were not opposing the draft bill submitted by EU, they however expressed concerns of the implications posed by the proposals and its effect on their own textile based economy,” they pointed out, adding that India was only the country which has challenged on the grounds it was a gross violation of WTO rules.
The Indian ambassador again raised the same objection in the meeting of Council for Trade and Goods of WTO on May 26, 2011, reiterating its position that the waiver of WTO rules was against the violation of the organisation’s rules which are being followed by 153 countries. Delhi’s argument was based on common concerns regarding the change of rules to a particular country which could establish a new trend in the WTO.
The EU’s representative, which had earlier called the meeting as a last resort to pass the proposals, was once again ready to wait for another month to at least secure approval from other countries like Peru and Bangladesh. The EU hoped that India, once it loses support from the few countries in opposition, might make a conciliatory gesture towards Pakistan by allowing preferential trade with Europe.
However, sources claimed that the objections raised by Delhi was not because of the trade implications inherent in the EU proposals but was purely the result of the traditional animosity exhibited in its refusal to accede to the draft proposals in WTO.
Having, comparatively, little share of exports in the textile sector; the limited concession to Pakistan would not dent the overall huge export of the neighboring country, sources opined.
The Indian ambassador, who had expressed distress in previous meetings of WTO over the ‘waiver from GATT Articles I and XIII’ concerning autonomous preferences for Pakistan, had said that temporary tariff concessions could neither attract foreign direct investment (FDI) or provide employment to those affected in the flash floods.
India was also repeating its objections that the tariff concessions would not benefit those who needed aid most while the gainers would be the existing producers and their employees as they may gain in terms of overtime and boosted exports. Its representative also claimed that flood affected areas are far away from the industrial centers and the victims of floods would not benefit from the concessions.
Delhi was also raising the technical concerns that even a positive gesture on the part of the EU would also cause damage in terms of trade divergence and impact primarily on poor workers in both less developed countries and developing countries.
The situation persists despite endeavors from the federal government and the State Bank of Pakistan (SBP) that include a joint initiative called Pakistan Remittance Initiative (PRI), the lifting of years-long ban from the export of foreign currency by the money exchangers, opening of dedicated booths at banks to facilitate families of Pakistani remitters abroad etc.
PRI is a central bank-backed initiative that, the SBP claims, is a major attributive factor for the present record growth in the flow of remittances to Pakistan through formal channels, thereby, helping the cash-strapped country. The State Bank’s second quarterly report shows that, during the current financial year, overseas Pakistanis had remitted a record $7.0 billion, $1.2 billion more than last year’s $5.8 billion.
However, sources in the money market said that over five million Pakistanis working overseas were still remitting, on average, around $900 million every month through informal channels. “Around $800 to $900 million are still coming to the country through the so-called hundi and hawala channels on monthly basis,” they added. Sources stated this was in addition to an equivalent amount, being sent home by Pakistan compatriots through official platforms like banks and money transfer companies.
“This ($900 million) accounts for 100 percent compared with the foreign exchange coming through formal channels,” said sources. The money exchange companies claim to have a plausible remedy for this problem, provided the regulator instills motivation through certain incentives. The Exchange Companies Association of Pakistan (ECAP) Chairman Malik Bostan confirmed that over $800 million were still coming to the country through “badla” or “hawala.”
He said that money exchangers could rid the country of the two menaces if banks-like incentives are granted. Bostan said that the State Bank’s recent move to allow export of foreign currencies had enabled the local money exchange firms surrender around $ 125 million more in the inter-bank market during last month. The ECAP chief said the money exchangers had surrendered $225 million in March against their $100 million monthly contribution in the pre-ban era.
In January this year, the State Bank in line with the money exchangers’ longstanding demand, had lifted ban from the export of euro, ponds sterling and UAE dirham from Pakistan. Exchangers, however, are bound to deposit dollars equivalent to the exported currency in their foreign currency accounts.
According to Bostan, Pakistanis working abroad were inclined to remit their money back home through international money transfer firms whose transfer fees and time was far less than that of banks. He claimed that the delivery time and charges of money transfer companies were far smaller than that of the banks, who take at least two to three days in transferring the remitted amount to receivers.
In this concern, the recent April 8 meeting between money exchangers and SBP Governor Shahid H Kardar has taken place. However, a breakthrough could not be reached. In a pre-meeting talk, Bostan had told Pakistan Today that the meeting was to discuss ways to increase the country’s foreign exchange reserves, presently standing at record $18.1 billion against $15.1 billion of last year, to an extent that it rids Pakistan from the backbreaking external Loans.
He stated this while chairing a meeting on operationalization of Pakistan-Turkey Goods Train, which reviewed the progress as well as issue relating to it here Saturday.
The existing transport agreements of Pakistan with Iran and Turkey under ECO/Bilateral arrangements were also discussed in the meeting, says a press release issued by the Ministry of Finance.
The Minister also enquired about the feasibility study if there is any undertaken in this regard to know the financial and technical viability of this Pakistan Turkey Goods Train.
Transit Transport Framework Agreement (TTFA) was also discussed in detail in the meeting.
The Transit Transport Framework Agreement (TTFA) developed by ECO with the assistance of United Nations Conference on Trade and Development UNCTAD was signed by all ECO member countries except Uzbekistan in 1998.
The meeting discussed Bilateral Agreement on Road Transportation of Goods and Passengers between Pakistan and Iran also.
The agreement was singed by Pakistan and Iran in 1987 to facilitate transportation of goods between the two countries.
Agreement on International Transportation of Passengers and Goods by Road between Pakistan and Iran was also subject of detailed discussed in the meeting.
The agreement was signed between Iran and Pakistan during the concluding session of Pak-Iran Joint Economic Commission on June 29,2008 at Tehran.
To enhance and promote trade activities between the two countries a Road Transport Agreement was signed between Pakistan and Turkey on June 15,2003 at Islamabad.
The progress on this agreement was discussed by the participants in the meeting.
Pakistan-Turkey Goods train started its regular monthly service from Turkey and Pakistan simultaneously during August, 2010. However, there were only 06 regular services from Pakistan and 02 from Turkey.
The participants discussed the establishment of monitoring mechanism to improve the service.
The removal of different hurdles in the smooth Pak-Turkey goods Train service was also subject of discussion in the meeting.
Representatives of different ministries including Ministry of Communication and Ministry of Railways attended the meeting.
Earlier the officials of the Pakistan Railways gave a power point presentation to the minister and other attendants of the meeting on the prospects of trade through the shortest link between Pakistan and Europe through Turkey.
The presentation outlined route layout, concept of cargo train, operation special reduced rates by Pakistan Railways and trade prospects.
