Latest news with #GSPPlus
Business Recorder
05-07-2025
- Business
- Business Recorder
Procurement rules: govt seeks Law Ministry's views on SIFC powers
ISLAMABAD: The government has sought the Law Ministry's opinion on whether the powers of the Special Investment Facilitation Council (SIFC) take precedence over the Public Procurement Rules in the hiring of consulting firms, sources close to the Secretary of Commerce told Business Recorder. This move follows a summary submitted by the Ministry of Commerce seeking to hire M/s Haider Global BVBA, a lobbying firm, to assist in the extension of Pakistan's Generalised Scheme of Preferences (GSP) Plus status with the European Union (EU). On June 17, 2025, MD (PPRA) Hasnat Ahmed Qureshi informed the Board that the Ministry of Commerce in a letter of June 12, 2025 had requested the Authority for exemption from application of Rules 20 & 21 of the Public Procurement Rules, 2004 and other applicable provisions of PPRA framework, for hiring the services of a lobbying firm in Europe, through direct contracting, in terms of Section 21 of the PPRA ordinance, 2002. The lobbying firm will help in the ongoing review and renewal of Pakistan's GSP Plus status. EU-Pakistan business forum in May: SIFC readying its strategy Adding background of the case, MoC explained that the current GSP Scheme was introduced by the European Union in 2012 through EU Regulation 978/ scheme was implemented on January 1, 2014, and initially intended to remain in effect for ten years, until December 31, 2023. The European Parliament has approved an amendment to the said EU Regulation, extending the validity of the existing GSP Regulation by four years, up to December 31, 2027, instead of December 31, 2023. The scheme provides zero duties on over 66% of EU tariff lines, and exports from Pakistan to the EU have increased from $ 4.6 billion in 2014 to $ 8.38 billion in 2024. Pakistan has undergone four biennial reviews of the GSP Plus, and the next review is now due, with a Monitoring Mission scheduled to visit Pakistan starting on June 22, 2025. However, the visit has been postponed due to the conflict in the Middle East and unpredictable travel logistics at that time. Now the Monitoring Mission is expected in November or December this year. According to the MoC, considering the significance of GSP Plus status for Pakistan's exports, the hiring of a lobbying firm is critical for the renewal and extension process. The Ministry highlighted that such a firm should: (i) possess expertise in EU law and conventions to support Pakistan in formulating appropriate legal responses; (ii) assist Pakistani businesses in adapting to evolving EU regulations affecting key sectors; and (iii) maintain access to experienced former EU policymakers who can provide insights on potential political and economic challen8es. The Ministry of Foreign Affairs (MoFA) has enclosed the proposal and payment schedule from M/s Haider Global BVBA regarding the ongoing review and renewal of Pakistan's GSP plus status. The proposal was received from Pakistan's s Mission in Brussels. According to the proposal, the contract term will be three years, with a total payment of Euro 6 million (approximately Rs 2 billion) to be made as per the payment schedule. In view of the upcoming visit of the Monitoring Mission of the European Commission, the MoC is of the view that it is imperative that a lobbying firm, as proposed by the Pakistan Mission in Brussels, may be hired on an urgent basis to safeguard our national interest. MD (PPRA) further stated that the MoC, in this regard, submitted a summary to the Prime Minister, through the Ministry of Foreign Affairs, Finance Division, and SIFC seeking approval for hiring the services of a lobbying firm by relaxation of the relevant provisions of the PPRA Rules and other financial codal formalities. The SIFC on June 10, 2025 endorsed the request of the Ministry of Commerce and decided 'given the extreme time constraint and criticality of GSP for national economy, SIFC endorses the request of the Ministry of Commerce for exemption from relevant clause of PPRA rules to enable it to go for direct contracting with a firm which has the required expertise, experience and standing to fulfil task, price reasonability be worked out by the Ministry of Commerce.' Subsequently, the Prime Minister's Office in a letter of June 12,2025, directed the MoC that the matter be placed before the PPRA Board along with recommendations of SIFC for consideration and approval. 'Before the case is submitted for the orders of the Prime Minister, Ministry of Commerce shall place the case along-with the recommendation of SIFC for the consideration and approval of the PPRA Board and resubmit the summary accordingly for the order of the Prime Minister.' Secretary Commerce Division, Jawad Paul and the Additional Secretary Europe (MoFA) were present in the meeting to defend the case, while the Deputy Head of Mission, Pakistan's Mission in Brussels, attended the meeting via video link. Responding to a query by a Board member, regarding the urgency of the matter, Secretary Commerce explained that the review Monitoring Mission of European Commission will be visiting Pakistan to consider the status of Pakistan, therefore it is critical for continuation of GSP plus scheme that the firm is hired on immediate basis. The Chair/ Secretary Finance, Imdad Ullah Bosal pointed out that the PPRA Board could only recommend exemptions from application of the procurement Rules, and that the finalization and hiring of a lobbying firm was to be done by the Commerce Division as a procuring agency in this case. During the discussion, the Secretary of Commerce also highlighted the need for clarity regarding the recommendation of exemption from application of PPRA rules, both by the SIFC and PPRA Board, as it leads to duplication and consumes considerable time. He was of the view that referring such cases to the PPRA Board should not be required when SIFC had already recommended the case. Most Board members also expressed similar views on the issue and recommended adopting a consistent and standardized approach for handling cases endorsed by the SIFC for exemptions from the procurement Rules. One member opined that it is a question of law and clarification should be sought from the Law Division as to whether the PPRA Board should consider exemption from application of procurement rules, already recommended by SIFC under 10-F of Board of Investment Act 2023 'power to relax or exempt from regulatory compliance' or otherwise? Secretary Commerce emphasized that in line with the recommendations and endorsement of the SIFC and direction of PMO, PPRA Board should recommend the case to the Federal Government, for grant of exemption from operation of Rules 20 and 21 of PPRA Rules, 2024, and other applicable provisions of PPRA Framework for hiring of M/s Haider Global BVBA through direct contracting under Section 21 of PPR Ordinance. After a thorough discussion on the importance of the matter and legitimacy of the recommendations of the PPRA Board decided to seek opinion from the Ministry of Law &Justice on the legal question as to 'whether exemption recommended/endorsed under Section 10-F of BoI (Amendment) Act, 2023 by the SIFC is sufficient for grant of exemption by the Federal Cabinet or matter is required to be referred to PPRA Board again for consideration of exemption under Section 21 of PPRA Ordinance, 2OO2 in addition to the exemption recommended by SIFC ?' Copyright Business Recorder, 2025
Express Tribune
20-04-2025
- Health
- Express Tribune
CM assures EU rights standards compliance
Punjab Chief Minister Maryam Nawaz Sharif has invited companies from the European Union states to invest in the education, information technology, green energy and health sectors in the province. Welcoming the EU Parliamentary Delegation for South Asia to discuss matters related to mutual interests, bilateral relations, trade, education and investment, she agreed to strengthen the relations for peace, development and common goals. The chief minister said on the occasion, "Pakistan values its reliable friendship with the European Union. The EU is not only Pakistan's trading partner but also a voice of stability in the world." She said the GSP Plus preferential trade scheme has greatly improved Pakistan's exports to the EU, especially in the textile sector." She highlighted, "We are taking steps to fulfill all EU requirements, including human rights and labour reforms." Chief Minister Maryam Nawaz said, "Punjab is the heart of Pakistan's economy, providing a conducive business environment for investment. We want to increase cooperation with the European Union in agriculture, energy, digital infrastructure and environmental projects." She said, "Pakistan's youth are talented and dynamic, training courses are being conducted to connect them to the global job market. I am happy that Pakistani students are among the top recipients of the Erasmus Mundus scholarships for the third year in a row." She underscored, "Pakistan is committed to regional and global peace." Vaccination "No child should be deprived of polio vaccine drops," said Chief Minister Maryam Nawaz while directing the deputy commissioners to take steps to make the anti-polio campaign effective in their districts. During a briefing, she directed the officials to review the union council-wise polio campaign on a daily basis. The chief minister directed all district administrations to ensure effective implementation of the polio vaccination micro-plans. She said, "The target of zero polio can be easily achieved with joint efforts. It is unacceptable for any child to be at risk of polio."
Express Tribune
12-04-2025
- Business
- Express Tribune
IT, Mineral sectors to be game changers for Pakistan's economy: Finance Minister
Listen to article Federal Finance Minister Senator Muhammad Aurangzeb on Saturday said that Pakistan's Information Technology (IT) and mineral sectors hold transformative potential for the national economy. He emphasized that these sectors would be game changers in the coming years, adding that under the leadership of Prime Minister Shahbaz Sharif, the country's economic direction has become clearer, with positive results expected soon. Addressing the business community at the Lahore Chamber of Commerce and Industry (LCCI), the finance minister highlighted the government's commitment to listening to and resolving the challenges of the private sector. 'We are here to serve the people. I am visiting chambers to listen, understand, and resolve problems of the business community. The legitimate demands of the chambers will be accepted,' he said. Aurangzeb cited Singapore's success with nickel exports—reaching USD 22 billion—and drew parallels with Pakistan's copper reserves, underscoring the vast potential of the mineral sector. He also noted rising global interest in Pakistan's IT and minerals and reiterated the government's resolve to eliminate barriers for local and foreign investors. On economic stability, the finance minister pointed to improved macroeconomic indicators, stating: 'Lowering inflation is essential for economic stability. The interest rate was at 22 percent, today it is at 12 percent.' He stressed the importance of reducing financing costs, power tariffs, and implementing improved taxation policies to spur industrial growth. Aurangzeb also said that restrictions on profit repatriation for foreign investors had been lifted, restoring investor confidence. 'We are ensuring that the benefits of reduced inflation directly reach the common man. Middlemen will not be allowed to exploit the system,' he vowed. Addressing taxation challenges, the minister acknowledged the burden on the salaried class: 'Income tax is deducted at source, and we intend to offer relief to the salaried segment.' He revealed that 24 national entities had been earmarked for privatization, and called for minimizing human interaction in the system to reduce inefficiencies. 'If we can increase the tax-to-GDP ratio to 13 percent, we can offer broader relief to various sectors,' he said, noting that lowering edible prices had limited opportunities for middlemen to exploit the system. During the Q&A session, Aurangzeb confirmed that visa-related issues were regularly discussed in meetings during the Prime Minister's foreign visits and were being addressed on a priority basis. He reaffirmed the government's commitment to engaging with the private sector: 'The private sector plays a key role in running any country. A committee has been formed, as per the Prime Minister's direction, which is working on GSP Plus.' LCCI President Mian Abuzar Shad lauded the government's steps toward economic revival. 'We appreciate the reduction in the policy rate from 22 percent in June 2023 to 12 percent now. This will ease access to capital for businesses,' he said, adding that inflation had dropped from 20.7 percent in March 2024 to just 0.7 percent in March 2025. He also praised the launch of the 'Uraan Pakistan' programme, aimed at boosting exports to USD 60 billion, attracting USD 10 billion in annual private investment, creating one million jobs per year, and addressing climate and energy goals. He highlighted the Special Investment Facilitation Council's (SIFC) role in enhancing investor confidence. LCCI Senior Vice President Engineer Khalid Usman recommended increasing the turnover threshold for withholding agents from Rs. 100 million to Rs. 250 million. He expressed concern over the FBR's freezing of bank accounts in light of pending court cases on Capital Value Tax (CVT) under the amnesty scheme, calling the practice unjustified. Vice President Shahid Nazir Chaudhry called for long-term economic planning, suggesting a consistent 10-year policy roadmap. He proposed tax deductions on R&D expenditures by private companies to promote innovation and technological development. SAARC Chamber's Vice President Mian Anjum Nisar echoed the need for innovation-driven economic growth. The session was attended by representatives of the Federal Board of Revenue (FBR), business leaders, and members of various chambers.
Arab News
12-04-2025
- Business
- Arab News
Pakistan says exports to Europe grew by 9.4% during FY25
ISLAMABAD: Pakistan's exports to Europe grew by 9.41 percent during the first eight months of the current fiscal year, state-run media reported on Saturday, attributing the surge to rising demand for the country's textile, garments and its GSP Plus status. The European Union (EU) is Pakistan's second most important trading partner, accounting for over 14 percent of the country's total trade and absorbing 28 percent of Pakistan's total exports as per official data. Pakistani exports to the EU are dominated mostly by textiles and clothes. Pakistan avails the Generalized Scheme of Preferences (GSP)+ status, a special trade arrangement offered by the EU to developing economies in return for their commitment to implement 27 international conventions on human rights, environmental protection and governance. 'The demand for Pakistani products in Europe has seen a significant rise, leading to a 9.4 percent increase in exports due to the efforts of the Special Investment Facilitation Council,' state broadcaster Radio Pakistan said in a report. It was referring to the SIFC, a hybrid civil-military government body formed in 2023 to fast-track decisions related to international investment in Pakistan's vital economic sectors. The SIFC aims to attract investment from Gulf countries, Central Asian states and regional allies in tourism, agriculture, mining and minerals, livestock and other priority sectors. The state media said Pakistan's exports to Western Europe grew by 11.6 percent and while those to Northern Europe saw a 'remarkable' 17.7 percent increase during the first eight months of the current fiscal year. 'The primary reasons behind this growth are Pakistan's GSP+ Status and the rising demand for Pakistani textiles and garments,' it added. The current GSP framework came to an end in December 2023 but Members of EU Parliament (MEPs) voted in October to extend the current rules on the scheme for another four years for developing countries, including Pakistan. Finance Minister Muhammad Aurangzeb has repeatedly stressed the importance of shifting Pakistan's economy from an import-dependent one toward an export-led one, saying that without it sustainable economic growth is difficult to achieve. In recent months, Pakistan has vigorously pursued economic and investment deals with Gulf countries such as Saudi Arabia, the United Arab Emirates and bilateral trade cooperation with Central Asian states, Russia and others.
Express Tribune
14-03-2025
- Business
- Express Tribune
EU envoy calls on FinMin
Listen to article EU Ambassador Dr Riina Kionka called on Minister for Finance and Revenue Senator Muhammad Aurangzeb on Friday to discuss ways to enhance business and investment ties between the European Union and Pakistan. During the meeting, they explored opportunities for European businesses in Pakistan, emphasising the need for an enabling investment climate. Kionka noted that the EU had mapped over 300 European companies operating in Pakistan, with many more believed to be present. She invited the minister to a business and investment forum the EU Mission in Pakistan plans to host in Islamabad in mid-May 2025. The forum aims to foster collaboration and attract European business investment. She highlighted that European companies increasingly view Pakistan as a potential business hub. Senator Aurangzeb welcomed the initiative and assured his full support. He expressed his intention to attend the event, reaffirming the government's commitment to facilitating EU businesses, including ensuring the timely repatriation of dividends and profits. He also endorsed creating a proactive business platform for European companies, citing his recent engagement with French and Dutch firms in Pakistan. The minister appreciated the EU's support, particularly the Generalised Scheme of Preferences Plus (GSP Plus), crucial for Pakistan's export growth.
