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PAKISTAN HIGHLY VALUES BROAD BASED TIES WITH BELARUS: PM Thursday, 1 June, 2023 I 11 Zilqad, 1444
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Says govt to enhance rural economy
through value addition of agri-products LAHORE
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Claims due to govt ’s Kisan package, record wheat yield achieved
STAFF REPORT
RIME Minister Shehbaz Sharif Wednesday said Pakistan greatly valued its cordial and broad-based relations with Belarus. He also affirmed Pakistan’s commitment towards building mutually beneficial cooperation with Belarus in all areas, including economic, agriculture, science and technology, information technology, education, and culture domains. The prime minister received Foreign Minister of Belarus Sergei Aleinik, the PM Office Media Wing said in a press release. Foreign Minister Aleinik conveyed the warm greetings of President Lukashenko to the prime minister, while highlighting that Belarus regarded Pakistan as an important country in the region and appreciated its efforts to promote regional peace and stability. The prime minister also briefed the foreign minister on the human rights violations by India in the Indian Illegally Occupied Jammu and Kashmir (IIOJK). Noting that Pakistan and Belarus would be commemorating the 30th anniversary of the establishment of their diplomatic relations in 2024, the prime minister welcomed continued high-level exchanges and engagement. In this regard, he also reiterated his invitation to the Belarusian president to undertake a visit to Pakistan, at his earliest convenience. Govt to enhance rural economy
through value addition of agri-products Prime Minister has stressed upon taking practical and permanent steps over the agriculture reforms and said that the government would improve the rural economy through the value addition of agri-products. The prime minister chaired a high-level meeting on the fiscal budget 2023-24 proposals regarding the agriculture sector, PM Office Media Wing said in a press release. The prime minister observed that agriculture sector was the backbone of the national economy and the country’s
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progress was not possible without innovations in this sector. He said that due to the incumbent government’s Kisan package, a record wheat yield was achieved in the current season. During the meeting, the prime minister was apprised in details of the agriculture reforms during the previous one year. Due to PM’s special Kisan Package, the provision of loans to farmers on affordable terms was not only ensured but due to supply of timely fertilizers and quality seeds, the country also achieved the bumper wheat crop,
exceeding the previous production in the last ten years. Under the prime minister’s directive, the best-supporting prices over different crops led to the prosperity of farmers which would also boost the upcoming crops, it was added. The prime minister also directed for direct provision of subsidy to farmers on fertilizers. He said that the provision of quality seeds, latest machinery, extension services and for agriculture research, resources would be allocated in the fiscal budget. The prime minister said that practical steps should be incorporated in the fiscal budget for complete conversion of agriculture tube wells on solar energy. The prime minister was also informed about the international quality seeds, import of semen for animals breeding, functioning of the agriculture institutions and implementation over Kisan package. The meeting was briefed over the National Oil Seed Policy whose objective was to reduce dependence over import of edible oil by provision of quality seed. Automatic Seed Certification and Track and Trace System were being introduced for the provision of quality seed, it was further added. The prime minister terming the proposals of experts as very useful, directed his Adviser Ahad Khan Cheema to form two sub-committees to give final shape to budget proposals regarding the agriculture sector.
Could Custom Bonded Warehouses be the way to efficient petroleum imports?
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Petroleum division suggests custom bonded warehouses for foreign suppliers as a possible stop-gap solution to import woes ISLAMABAD
AHMAD AHMADANI
The petroleum division has come up with a unique solution to address challenges faced by smaller Oil Marketing Companies (OMCs) in importing crude oil into the country. A proposal put forth by the ministry has suggested that the import of crude oil be allowed through custom bonded storage facilities. These are storage facilities in which imported dutiable merchandise may be stored, manipulated, or undergo manufacturing operations without payment of duties for a set amount of time. The facilities would be used by allowing foreign suppliers to import on their accounts. How does this work? Let’s look at it from the beginning. Pakistan has a growing import dependence particularly when
it comes to its energy needs. As an import-dependent country, Pakistan currently imports around 9-10 million tons of crude oil and petroleum products each year, primarily from the Arab Gulf Market through long-term arrangements and spot purchases. However, in recent times there has been an increase in spot purchases and smaller OMCs have been bringing in many smaller shipments which means there has been an increasing number of smaller import vessels, leading to congestion at ports and demurrage incidents. Additionally, difficulties in opening Letters of Credit (LCs) by international banks and foreign exchange liquidity issues have further impacted procurement planning. To alleviate these challenges, the proposed policy suggests that foreign
suppliers maintain inventories of crude oil and petroleum products in bulk form within their own Customs Public Bonded Warehouses near Pakistani ports. These warehouses would operate without foreign exchange remittances until the products are sold to local purchasers or re-exported to other foreign countries. The foreign suppliers would establish a subsidiary company registered in Pakistan, known as the Consignee, to undertake operational and business activities on behalf of the foreign suppliers and local purchasers. The Consignee would be required to develop dedicated storage infrastructures around port premises, licensed by the Oil and Gas Regulatory Authority (OGRA) under the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016. They would then sell
PIA’s plane seized once again in Kuala Lumpur
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It’s second time in three years same plane impounded due to disagreements with leasing company PROFIT
DANIYAL AHMAD
On May 29, Pakistan International Airlines’ (PIA) flight PK894 from Islamabad to Kuala Lumpur was impounded by Malaysian authorities. This marks the second instance in a mere three years that PIA’s Boeing 777-200ER, registered as AP-BMH, has been seized by Malaysian officials. The decision is a consequence of a protracted and contentious dispute between Peregrine Aviation Charlie Limited and PIA, dating back to 2020. Who is Peregrine Aviation? Peregrine Aviation is an investment entity established by NCB Capital. In December 2017, AerCap Holdings NV agreed to sell 21 aircraft worth $800 million to Peregrine Aviation. AerCap provided lease management services to Peregrine and retained an equity interest in the entity. The portfolio consisted of a mix of wide-body and narrow-body aircraft, including two Boeing 777200ER aircraft used by PIA: AP-BMH and AP-BMG. PEREGRINE AVIATION VS PIA ROUND 1: THE 2021 IMPOUNDMENT In January 2021, Peregrine Aviation initiated legal proceedings against PIA for failure to pay over $14 million in lease payments for two air-
crafts. Peregrine obtained an ex-parte injunction to ground one of the aircrafts, AP-BMH, at Kuala Lumpur International Airport. The court granted the injunction and the aircraft was detained. After two weeks of negotiations, the parties reached a settlement and the court permitted the release of the aircraft. Peregrine had previously alleged that PIA stopped making payments in June 2020 and filed a case in the High Court of Justice in London. An exparte injunction is a legal order made without the presence of the opposing party. An inter-partes hearing is a court proceeding where both parties are present. A mandatory injunction is a court order requiring a party to perform a specific action. In this case, Malaysia Airports Holdings Berhad and its subsidiary were ordered to prevent the aircraft from departing. PEREGRINE AVIATION VS PIA ROUND 2: THIS WEEK’S IMPOUNDMENT On May 29, PIA’s AP-BMH was impounded again by Malaysian authorities upon its arrival in Kuala Lumpur. The seizure was precipitated by an ongoing dispute between PIA and the leasing company over nonpayment of dues amounting to approximately $4 million. PIA’s Head of Marketing and Corporate Communications, Abdullah H. Khan confirmed that the leasing company in question
was AerCap — the very same AerCap that was sold to the aforementioned Peregrine Aviation in 2017. This incident marks yet another contentious chapter in the tumultuous relationship between PIA and Peregrine Aviation. In response to the detention of AP-BMH, PIA deployed another Boeing 777-200ER, registered as AP-BGK, to repatriate the stranded passengers and crew. APBGK landed in Islamabad at approximately 07:56 and was expeditiously assigned to operate the IslamabadKuala Lumpur route scheduled for June 1. PIA’S STATEMENT ON THE MATTER PIA has engaged its legal team in Kuala Lumpur to rigorously contest the impounding of one of its Boeing 777 planes. The leasing company had approached a local Malaysian court seeking impounding on claims that PIA owes $4.5 million to them. However, PIA’s official response stated that the actual payable amount was $1.8 million and had already been paid. Khan relayed all of this information in a press release and said that the claim submitted to seek impounding was incorrect and that the said Boeing 777 plane is owned by PIA itself while the leasing company only owns one of the engines mounted on the plane.
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the goods to Pakistan licensed purchasers, such as refineries or OMCs, against the opening of Letters of Credit (LC) through scheduled banks. LC confirmation by international banks or advance payment would not be necessary, subject to mutual agreement on the currency (US Dollars or Pak Rupees) and in accordance with applicable foreign exchange regulations. For the sale of bonded goods to local purchasers, the Consignee would file an Electronic Import Form (EIF) along with a Goods Declaration (GD) for Ex-bonding (EB). This process would allow for the transfer of custody to local purchasers for subsequent home consumption upon payment of all applicable duties and taxes by the Consignee on behalf of the purchasers. Furthermore, the foreign suppliers would be permitted to re-export their goods, deposited in bonded warehouses, to foreign buyers or countries with permission from OGRA.
‘Pre-budget relief’: Petrol prices slashed by Rs8 per litre ISLAMABAD
STAFF REPORT
Finance Minister Ishaq Dar announced on Wednesday that the price of petrol was being reduced by Rs8 while high-speed diesel (HSD) by Rs5 per litre for the next fortnight. The new prices of petrol and HSD are Rs262 and Rs253 per litre, respectively. The price of light diesel oil (LDO) was also slashed by Rs5 per litre to Rs147.68 while the price for kerosene oil remained unchanged at Rs164.07. In a video address, the minister said that there was no substantial change in the international prices of petroleum products in the last 15 days and neither had the rupee appreciated against the dollar. “But we tried, considering all the factors, that whateverroom can be created [for relief] should be done and passed on to the people,” the finance minister said. The cuts come on the heels of a previous round of price reductions in the prices of petrol, HSD and LDO. The government’s announcement comes as it faces increased pressure due to rising petrol prices — which had reached a record of Rs282 per litre earlier this year — and inflation, which is currently the highest in the region. The recent decline in global oil prices has provided some relief, but the government is still facing difficulty in keeping prices down as the rupee depreciates. Oil marketing companies (OMCs) had estimated that the prices of diesel and petrol are likely to drop by Rs5 per litre. Separately, sources also said that the government might keep the prices of petroleum products unchanged due to the rupee’s depreciation.
Following Imran, PPP also serves showcause notice on Patel ISLAMABAD
MONITORING REPORT
In an interesting chain of events, Minister for Health Abdul Qadir Patel has found himself sandwiched between his own party’s ire and a rival party’s legal firepower as the Pakistan People’s Party (PPP) has served him a showcause notice, while PTI chairman Imran Khan fired back with a Rs10 billion defamation notice over a fiery press conference. Surprisingly, the PPP has issued a show-cause notice to its health minister for not taking the party into confidence before holding a news conference against the PTI chairman on May 26. During the conference, Patel had claimed that “traces of alcohol and cocaine were found in the former premier’s urine analysis”. Patel had held the presser on Imran’s medical report, which was taken after he underwent an examination at PIMS hospital following his arrest on May 9 in the Al-Qadir Trust case. Sources familiar with the matter revealed that the PPP chairman’s office has issued the show-cause notice to the health minister and expressed extreme displeasure, as the minister held the press conference on his own without first bringing it to the party’s attention. “The chairman’s office is not happy with Patel’s press conference and has not only expressed displeasure but also issued a show-cause notice to him,” a source in the PPP told The Express Tribune. The PPP leader stated that “the party was not consulted before the presser,” and that “he (Patel) did it on his own”. Through the show-cause notice, the sources said that Patel has been directed to explain his position within a week’s time. A PPP lawmaker explained that taking the party leadership into confidence is crucial, as the party has to move forward on different platforms and defend its position when necessary. Just as the PPP issued a notice to Patel, Imran also sent him a hefty defamation notice regarding the “dissemination and circulation of wrongful, baseless, false, misleading, erroneous, malicious, and defamatory information” against him during the press conference.
PTI leaders reject ‘Minus-Imran formula’; say King’s Party has no future, no space ISLAMABAD
MIAN ABRAR
Amid reports of Minus-Imran formula presented by Pakistan Tehreek-i-Insaf (PTI) defectors Fawad Chaudhry and others, sources in the former ruling party said that the party’s senior leaders on Wednesday rejected the proposal, saying that the MinusImran formula can’t be accepted. An informed source told Pakistan Today that Fawad Chaudhry, Imran Ismail and Mahmood Moulvi had held talks with Vice Chairman PTI Shah Mahmood Qureshi in Adyala Jail and urged him to agree to Minus-Imran formula to help save democratic setup in the country. The source added that Fawad and his colleagues who left the PTI also contacted party leaders including Hammad Azhar, Asad Umar, Asad Qaisar and others and urged them to agree to their formula. However, the sources said that none of the PTI leaders agreed to the formula and told the defectors that only Imran Khan would take any decision on the matter. Asad Qaisar even said that Fawad Chaudhry didn’t contact him. “No politics without Imran Khan!,” wrote former information minister Farrukh Habib on social media blogging site, Twitter. PTI Central Information Secretary Raoof Hasan distanced from Fawad Chaudhry and others, saying that rumours of negotiations with PTI are being spread by some people who have already left the party. “It is clarified that a committee has already been constituted to negotiate which shall do so with the permission of chairman Imran Khan. This was done to talk to those people in power who have pushed the country to the brink of collapse,” he added. He further said that one fails to understand the need for negotiating with those who have already left and are no longer part of the PTI. He concluded by saying that such rumours will not give any credibility to those people who displayed a humiliating paucity of character.
Dr Babar Awan also took to Twitter to reject the proposal of Minus-Imran. “Minus-Imran means Minus-People of Pakistan. Neither will people allow to minus Imran, nor Imran will allow to minus people of Pakistan. ‘Imran Factor’ is the name of the struggle of Pakistan Tehreeki-Insaf. Rest are the stories the people have heard time and again. Neither there is a space for a King’s Party nor it would have any future,” concluded Babar Awan. PTI leader Hammad Azhar said that only party chief Imran Khan will make the final decision regarding any “solution or advice by a friend”. “I am a worker of Chairman Imran Khan and an office-bearer of the PTI. If any friend wants to suggest any solution or give advice, only Imran Khan will make the final decision,” Hammad said in a tweet, referring to a proposal shared by Fawad Chaudhry and others.
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