Top 6 positive news about Pakistan [20 December 2020 ]
- In this story, we’ll take a look at the positive news of December 20th, 2020.
- Pakistan is now ready to step into the multi-billion dollar halal food market worldwide, said DG Halal Food Authority Akhtar Baghio.
- According to the report of Samaa , Pakistan’s textile exports have increased to a record level.
- Economic achievement of Pakistan this fiscal year 2020.
- Government has introduced a scheme to document business and bring consumers into the tax net, under which five times the sales tax paid to consumers on purchases from vendors registered with the FBR.
- After Corona, more than 500 Japanese IT companies want to come to Pakistan, according to the Japanese Ministry of Commerce.
- After Lahore and Rawalpindi, the Punjab government has doubled in 3 more cities of the province.
- For more positive news of Pakistan, visit the Naya Pakistan section of our website
#1: Pakistan’s Full preparations to enter “halal food market”
Pakistan is now ready to step into the multi-billion dollar halal food market worldwide, said DG Halal Food Authority Akhtar Baghio.
In an interview to a private TV channel, DG Halal Food Authority Akhtar Baghio said that the market for halal food has crossed 3 trillion. Certified halal food is in demand by Muslims in every country of the world and as a Muslim country Pakistan has a strong reputation all over the world. With good reputation, Pakistan can dominate the big market.
پاکستان کی “حلال فوڈ مارکیٹ” میں انٹری دینے کی بھرپور تیاریاں pic.twitter.com/FCCIoqoSvl
— Sami Rasheed (@samirasheed01) December 20, 2020
Monitoring of all imported items including pharmaceuticals and cosmetics is planned under halal certification. Consumers will be able to know when and where the product was made via QR code on their mobile or computer.
#2 :Pakistan Textile exports broke a 10-year record
According to the report of Samaa News Agency, Pakistan’s textile exports have increased to a record level. After the record increase in textile exports, the industrialists of Faisalabad have broken the record of ten years. Manufacturers say the rise in textile exports has made it difficult to meet orders.
According to the report of the news agency, 2020 which proved to be heavy for the whole world but 2020 proved to be very beneficial for the textile exports of Pakistan. If we talk about the annual record, the domestic export in 2011 was 1533 million dollars, most of which The share belonged to the textile industry.
Similarly, during 2012, domestic exports stood at 1896 million, while in 2013, domestic exports declined slightly to 1796 million, while in 2014, domestic exports once again recorded an annual record. According to the country’s exports stood at 195 1958 million, while in 2015 the country’s economy faltered and domestic exports stood at 16 1659 million.
Similarly, in 2016, domestic exports stood at 1757 million, in 2017 at 1968 million, but after an increase in exports in 2017, which was an election year in 2018, exports declined again and domestic exports stood at 1839 million, but the year after the election Domestic exports increased in 2019 and reached 2011 million.
Despite the outbreak of Corona virus in the country, Pakistan’s textile industry surpassed India to reach a record high in 2020 and this year the country’s exports reached a record high of 2156 million, the highest in the last ten years.
On the other hand, Amir Salimi, Executive Officer, Textile Industry, while commenting on the increase in textile exports, said that the Corona virus has proved to be very beneficial for the textile industry of Pakistan. Yes, while one and a half billion dollars of investment has come from outside and 70 billion rupees of local investment has come.
Ehtesham Javed, President, Chamber of Commerce, while expressing happiness over the right direction of the country’s economy, said that at present, Pakistan is at the forefront of the region due to its exports, despite the outbreak of the corona virus. It was 2.1 billion dollars, but November exports broke the previous nine-year record.
#3: Economic achievements in the year 2020
The year 2020 is almost over. How this year went, everyone’s experiences will be different, but one thing is for sure, there is hardly a person on the planet who has not been affected by the economic situation caused by covid 19 in the year 2020. From developed countries to developing nations, everyone is probably affected.
How much has the Pakistani economy been affected in one year and what other factors besides Corona have affected the economic condition of Pakistan? Let’s try to find out.
It would not be wrong to say that the Pakistani economy depends on the fluctuations of the dollar. But the dollar is not the only measure of economic growth and decline. Apart from this, there are other factors that play an important role in determining the economic direction. Today we will review most aspects. Let’s take a look at the dollar first.
Dollar and Pakistani Economy:
On January 1, 2020, the value of the dollar in Pakistan was about 154 rupees and in December 2020, it is worth about 160 rupees and fifty paise. The dollar has also been worth about ً 170 in one year. The reduction of about Rs. 12 has not been seen due to successful government policies.
In 2014, when the value of the dollar reached about 108 rupees and Sheikh Rashid claimed that the government could not bring the value of the dollar to 100 rupees, Ishaq Dar used the alleged aid of 1.5 billion dollars from Saudi Arabia. The value of the dollar was brought to 97 rupees.
But it was an artificial method that cost Pakistan dearly, while the current decline is in line with market principles. Legislation enacted by the government to increase dollar reserves has strengthened the value of the rupee in the country.
I think it is important to mention bright digital accounts here. The government has offered Pakistanis abroad an attractive 7% return on dollar accounts, compared to 0.5% to 1% worldwide. It also provides the facility to open an online account on easy terms while sitting abroad.
Payments will be online as well as receipts. As a result, thousands of bright digital accounts have been opened in just a few months. In which millions of dollars have been accumulated. According to SBP Governor Raza Baqir, Pakistan is receiving about ً 2 million a day in Roshan Digital Account. As of November 23, 2020, Pakistan has received about Rs. 16 billion.
In addition, strict FATF rules have played a key role in bringing the dollar below the Rs 170 level. Due to severe punishments, counterfeit money changers have closed down their businesses and are preferring to send money abroad through official Pakistani channels.
One important reason is covid 19. Due to which relief has been received in repayment of loans. Receiving relief is also a testament to the successful diplomacy of the PTI government. Pakistan has also managed to take time to repay about ً 800 million in loans from the G20 countries. The government’s efforts to control it look better.
Exports are fundamental to the development of any country. This is the age of business and the corporate sector is the real ruler. Today’s developed countries are the ones whose traders are prosperous. If you can’t sell your goods to the world, you can’t be financially strong, no matter how much you own.
The PTI government has also taken better measures to increase exports. If we talk about the last 12 months, Pakistan’s exports in November 2019 were about two billion dollars and if we look at the statistics of November 2020, according to them, exports have increased by 7.2 percent.
Despite corona, the performance in one year looks more encouraging. If we look at the performance during these 12 months, the economic activities in Pakistan have been closed for a shorter period than other Asian countries.
Pakistan has taken advantage of the losses in India and China. Most of the orders in the textile sector have been cut off from China and India and given to Pakistan, which is a testament to the successful export policy of the government.
Textile and cotton exports
If we talk about textile exports, the last few months have seen an improvement. The textile sector is operating at its full capacity. The incentives given by the government to the textile sector in tax refunds and electricity rates in the last few months are unprecedented.
I think it is important to note here that previous governments have not paid attention to increasing cotton production. The effects of which have been seen this year. Cotton production has declined. This is due to the lack of interest of farmers in cotton production. The yield per acre is so low that the farmer has to invest out of pocket.
Thanks to the positive policies of the present government, Pakistan is getting the same rate of cotton in the international market as China, India and Bangladesh, but due to low production per acre, the expenses cannot be met. Is decreasing The textile sector has been forced to import cotton to meet its needs.
The Prime Minister has invited the private sector to conduct research and development to overcome this problem.
The positive effects will be seen in the days to come.
The year 2020 is even better in the sense that practical efforts have been made to reduce Pak-Afghan conflicts in order to increase exports. Delegations are coming. Meetings are ongoing at the diplomatic level. In October 2020, an Afghan delegation arrived in Pakistan. There was talk of increasing trade. In November 2020, Razzaq Dawood Sahib arrived in Afghanistan and was followed by Prime Minister Imran Khan to meet the Afghan President. Many barriers to trade were removed.
The most important topic was giving Pakistani trucks direct access to Uzbekistan, Tajikistan and Azerbaijan. It is learned that a lot of work has been done on this issue and it is hoped that in the coming days these routes will be opened for Pakistan which will help in increasing exports.
In addition, issues such as the sale of goods at the Pak-Afghan border and the filling of files with paperwork have also come under consideration. It has been agreed to strictly follow the options of implementing modern scanning system at the border, installing border fencing and computerizing the system.
In addition, there are reports that the two sides have agreed to set up joint offices of the Chambers of Commerce in Torkham and Kabul. It is hoped that the problems of traders will be solved in hours instead of years.
Afghan spare parts and cigarettes are on Pakistan’s negative list, making used car spare parts more expensive in Pakistan. Much progress has also been made in these meetings to remove them from the negative list. These measures have created new hopes for traders and the business community on both sides seems to be happy with their governments.
In any country’s economy, tax revenue is like blood in the body. When the tax comes, the country will go.
If we talk about the country’s annual tax revenue, after negotiations with the IMF, last year’s tax target was Rs 5.503 trillion, while only Rs 3.908 trillion was collected. There are many reasons for this but covid 19 was declared as the biggest reason by the government. The tax target for this financial year has been set at Rs 4.963 trillion.
Whether the government achieves this tax target or not will be accurately calculated in June 2021, but according to the statistics so far, the government has collected more tax than the tax target set for the first quarter of the new financial year. ۔ Despite the decline in imports, the achievement of the tax target shows that there is a growing trend of local production of goods within the country and they are also being sold in the market, meaning that customers are buying locally made goods.
The December 2020 figures have not been released yet, so it would be premature to say anything about the current quarter, but government circles are hoping that the second quarter, which ends on December 31, will also have obtained the tax target.
Unemployment and the Pakistani economy:
If we talk about unemployment, the year 2020 has not been very unexpected. It would not be wrong to say here that in terms of unemployment, the whole world is probably going through a bad time in 2020, the biggest reason being covid 19. The highest unemployment rate is in the United States. But when it comes to Pakistan, the unemployment rate has not risen as much as the rest of the world. In 2019, the unemployment rate in Pakistan is about 4.5 percent, while in 2020 it has remained at 4.5 percent Which is being called a successful strategy of the government.
A month-long lockdown has raised unemployment in the country, but Prime Minister Imran Khan later called it a “big mistake” and the government announced the end of the lockdown when Corona was at its peak. This did not open up business and did not increase unemployment.
It is also commendable that this policy of Prime Minister Imran Khan was appreciated by the world. The way Corona and the economy have gone together is unprecedented in the world. The World Health Organization also advised the world to learn from Pakistan.
Current account surplus and dollar reserves:
According to the government, the year 2020 has been even better in that the current account deficit has been eliminated and turned into a surplus. The current account surplus has been reported continuously for the last four months, which is welcome.
Government dollar reserves are also on the rise. According to last month’s report, dollar reserves have reached a three-and-a-half year high. As of 2016-17, dollar reserves were 21.4 billion. In 2020, the dollar reserves will reach 20.4 billion.
There are many reasons for this, the most important of which is the relief in loan repayments from friendly countries. In addition, the passage of the Roshan Digital Account and the FATF Bill are steps without which it would have been difficult to maintain this level.
I think it is important to mention here that the relief received by Pakistan from the International Court of Justice in the Rekodak case in September 2020 was very encouraging news. Which temporarily removed the 6 billion hanging sword. If Pakistan had to pay these dollars, this level of reserves might not have been maintained.
According to data released by the State Bank of Pakistan, in the two fiscal years of the PTI government ending June 2018 to June 2020, loans have increased by 18.5%. The debt is worth 112 billion and plans are afoot to borrow more to pay off the debt.
By the end of the same financial year, Pakistan had repaid about 11.89 billion in debt Which is 23% more than 19-2018. But due to covid 19, some loan payments have also received relief. The biggest relief comes from the G20 countries. According to recent statistics, Pakistan has written off about 800 million in debt and is working on the remaining 1 billion. This is good news for Pakistan.
Saudi Arabia and the United Arab Emirates have demanded 4 billion in repayment of their debts. Which are due from December to February. In July 2020 alone, Saudi Arabia demanded the return of 1 billion that Pakistan had given to Saudi Arabia from China. But now the situation looks a little difficult.
In December 2020, Saudi Arabia also demanded one billion dollars, which was once again returned from China. China has always been entitled to friendship with Pakistan. The PTI has once again taken the good relationship with China to new heights.
Competition Commission of Pakistan:
The government of Pakistan has set up an institution called the Competition Commission of Pakistan, whose job is to prevent commodity prices from rising unnecessarily. Unfortunately, in 2009, the cement industry filed a petition in the Lahore High Court against the CCA.
After cement, several other industries, including sugar, oil and gas, fertilizers, education, telecom, real estate, milk and juice companies, sued the court. Eleven years later, in 2020. This raises the hope that the price of goods will not be increased until a full account is shared with the government.
You have often seen that if the value of the dollar increases by ten percent, the price of cars increases by twenty-five percent, and when the value of the dollar decreases, the price of cars does not decrease. The issue was actually due to a stalemate in the court, which has since ended, with the commission speeding up its work.
In November, the CCP raided the cement sector and seized records. It was reported that the prices of cement have been unrealistically increased. According to experts, if this company starts working with its true spirit, the value for money of goods in Pakistan will be ensured and inflation will be significantly reduced.
Approval of the FATF Bill:
The year 2020 has been better in that it has passed the FATF bill. Anti-money laundering laws became indispensable for improving Pakistan’s economy. The government did not have the required number to get it passed by the assembly and the opposition was not in favor of passing the bill but the government got it passed by the assembly under the best strategy.
After which the money laundering of dollars from Pakistan is expected to decrease. According to experts, this is one of the reasons for the devaluation of the dollar in Pakistan and the steady increase in dollar reserves. As soon as the bill was drafted and passed, counterfeit money changers began closing shops and selling dollars to banks and money changers.
This led to a record increase in remittances to Pakistan from abroad, with the month of August receiving the most remittances in Pakistan’s history. It is estimated that Pakistanis are using legal channels to transfer money abroad due to the limited number of illegal routes.
Freelancing and the Pakistani Economy:
While covid 19 has changed the world economy, it has also had a profound effect on the Pakistani economy. Freelancing is one of the areas in which homelessness is most prevalent. That is, if you find anything useful, open a laptop, go to any freelancing site, create your own account to tell people what service you can provide.
Those who need your service will contact you and you will be able to start earning dollars at home. The good news in 2020 is that the growth of freelancing in Pakistan is the fourth largest in the world. The United States ranks first, Britain second, Brazil third and Pakistan fourth. That means Pakistan is number one in Asian countries.
This news seems to be very beneficial to the Pakistani economy. It is estimated that Pakistan is earning more than 1 billion annually from freelancing. The majority of those earning this income are between the ages of twenty-five and thirty-five.
Federal Minister for Science and Technology Fawad Chaudhry has announced that Pakistan is about to enter the 93 billion gaming and animation market very soon.
This is great news – it will also increase the income from freelancing where children will be more inclined to use technology. The government’s commitment to modern technology can also help the private sector thrive. Many gaming software houses want to come and work in Pakistan. But due to the government’s lack of interest, they could not dare.
This move by Fawad Chaudhry will increase employment in Pakistan and increase software exports. According to experts, freelancing is no less than a blessing for a society like Pakistan. As soon as you open the laptop, jobs and job seekers from all over the world appear in front of you and you work on your own time. When he wanted to, he turned off the laptop and spent time in other activities
The benefits are twofold:
What is usually taken in Europe and the United States for twenty thousand dollars for the work of a young man sitting on a freelancing site in Pakistan for only a thousand dollars. Which in Pakistani currency is about one lakh sixty thousand rupees. An educated youth in Pakistan earns an average of twenty to thirty thousand rupees. He gets this money after a month of hard work. While a freelancer earns Rs 60,000 in two to three days.
As a result, while the unemployed person sitting in Pakistan is getting employment, the person or company sitting in the United States and Europe is getting A-plus quality work at a very low price.
This success has come at a time when Pakistan does not have an international payment system, PayPal, and the world’s largest online store, Amazon, cannot be legally traded online in Pakistan.
If the government pays a little attention to the banking system, these institutions can be brought to Pakistan and Pakistan can come first in the world of freelancing. In the same year, Razzaq Dawood Sahib has also expressed his support for bringing PayPal to Pakistan and efforts are underway. It is hoped that the Pakistani economy will be able to reap the full benefits in the days to come.
#4: Consumers will now get back 5% of sales tax paid on purchases
According to media reports, the government has introduced a scheme to document business and bring consumers into the tax net, under which five times the sales tax paid to consumers on purchases from vendors registered with the FBR.
Notification of Federal Board of Revenue Cashback Scheme has also been issued. Consumers will have to open a vault account through Tax Easy Mobile App to avail Federal Board of Revenue Cashback facility, one month of cashback purchase. Will be collected through automated system and recovery will be possible from any registered retailer.
According to news sources, the electronic receipt of the customer’s purchase from the registered shopkeeper will be verified through the mobile app after which five percent of the sales tax paid by the consumer will be credited back to his account.
For example, if the consumer has purchased items worth Rs. 1 lakh, then the standard sales tax will be deducted at the rate of Rs. Rs 850 will be refunded.
According to the notification, the Federal Board of Revenue’s cashback scheme will be applicable to large chain stores, shopping centers and franchises registered with the FBR. In addition, the cashback scheme will also be applicable to those air-conditioned shops whose owners pay 12 annually. Pay electricity bills of more than Rs. 1 lakh.
#5:Japanese IT companies want to come to Pakistan
After Corona, more than 500 Japanese IT companies want to come to Pakistan, according to the Japanese Ministry of Commerce
Yesterday, the Japanese Ambassador called on Zulfiqar Bukhari, Special Assistant to Prime Minister Imran Khan for Overseas Pakistanis. After the meeting, Special Assistant for Overseas Pakistanis Zulfiqar Bukhari also addressed a video conference with the Association of Japanese IT Companies. The conference was specially attended by the diplomatic representatives of both the countries including the Ministry of Foreign Affairs, Ministry of Information Technology, Pakistan Software House Association.
4. According to #Japan commerce ministry by 2030, Japan will face a shortage of 8lac #IT engineers. They said that after #Covid19 pandemic subsided, more than 500 #Japanese IT companies would come to #Pakistan while speaking to @sayedzbukhari@Investinpak1 #Saturday pic.twitter.com/MbXdxYi4yU
— Pakistan Corporate Updates (@pakco_updates) December 19, 2020
Speaking on the sidelines of a special participation conference of Japanese IT companies, the Pakistani Ambassador to Japan said that after the Pak-Japan Skilled Workforce Agreement, more than 100 Japanese including NEC, Mac, Senkyo and Orcs have left the Pakistani Embassy. IT companies have contacted, who want to come to Pakistan.
On this occasion, the Japan IT Association said that there is a severe shortage of IT engineers in Japan, due to which by 2030, Japan will face a shortage of about eight million IT engineers, but the Corona virus After the current epidemic, more than 500 Japanese IT companies want to go to Pakistan and invest billions of dollars there.
— Ministry of Overseas Pakistanis & HRD 🇵🇰 (@mophrd) December 17, 2020
Addressing a video conference, Zulfiqar Bukhari, Special Assistant to the Prime Minister for Overseas Pakistanis, said that Pakistan was expanding the export of Pakistani manpower under the new vision in 2021, focusing only on Gulf countries in the past. But now South Korea, Romania, Germany and Japan are in constant touch to increase the skilled manpower, while sending manpower to Japan is Pakistan’s top priority. Japan will be the second largest market for Pakistanis after the Gulf countries.
In a webinar organized by @OEC_Pakistan on IT HR for Japan presided by SAPM @sayedzbukhari, Ambassador Imtiaz Ahmad @TradeTokyo & @AvintonJapan presented details on the opportunity for IT graduates/professionals from Pakistan to match increasing demand of IT engineers in Japan. pic.twitter.com/l7YZrsxHbn
— PakistaninTokyo (@PakEmbassyTokyo) December 19, 2020
Zulfi Bukhari said that a new chapter of Pak-Japan relations will begin in 2021 and I will pay an important visit to Japan in early 2021 with the aim of paving the way for Pakistani IT engineers in Japan. It is very encouraging that Japanese companies want to set up IT training centers in Pakistan. Besides, a Pak-Japan IT conference will be held in Pakistan soon.
#6: Punjab govt decides to run double-decker bus service in 3 more cities of the province
After Lahore and Rawalpindi, the Punjab government has doubled in 3 more cities of the province.
The Punjab government has decided to run double-decker bus service in three more cities of the province after Lahore and Rawalpindi. According to Punjab Chief Minister Usman Bazdar, the service will soon start in Bahawalpur, Dera Ghazi Khan and Multan. Will make Punjab a center of tourism. According to details, the Punjab government of PTI has started a series of various initiatives for the promotion of tourism in the province.
Punjab Chief Minister Sardar Usman Bazdar has formally launched the Tourism for Economic Growth Project. While many other important steps will be taken under this project, it has also been decided to start double decker bus service in Lahore and other cities of the province.
After the provincial capital Lahore, double decker tourist bus service has been launched in Rawalpindi and soon double decker tourist bus service will be launched in Bahawalpur, Dera Ghazi Khan and Multan.
The double decker bus service was launched during the last government of Shahbaz Sharif. Double decker bus service is used for tourism purposes only. After the PTI government came to power in Punjab, this service was also launched in Rawalpindi, Islamabad, while soon double decker buses will run on the roads in 3 more cities of the province.
The provincial government is of the view that it will spare no effort to make Punjab a tourism hub. For the first time, practical steps have been taken to promote tourism in the province.
What do you think about these positive updates of Pakistan? Leave a comment below and let us know.