Business

SBP, Arab Fund alliance to ease cross-border remittances

Published

3 weeks ago

November 4, 2023

Admin

KARACHI:

The Arab Monetary Fund (AMF) and the State Bank of Pakistan (SBP) have formally agreed on a Memorandum of Understanding (MoU) to enhance cross-border remittances connecting the Arab region with Pakistan.

According to a joint press statement, during a ceremony held by AMF, Dr Abdulrahman Bin Abdullah Al Hamidy, the Director-General and Chairman of the Board of AMF, along with Jameel Ahmad, the Governor of SBP, signed the MoU in Abu Dhabi. The agreement is aimed at creating a framework of cooperation between Buna, the cross-border payment system managed by the Arab Regional Payments Clearing and Settlement Organisation (ARPCSO), owned by AMF, and Raast, Pakistan’s Instant Payment System.

The integration of Raast with Buna has the goal of simplifying cross-border remittances between the Arab region and Pakistan via formal channels. This initiative promises to be beneficial for both individuals and businesses by providing instantaneous, secure, and cost-effective cross-border payment solutions, further strengthening economic, financial, and investment ties between Arab countries and Pakistan, reads the press statment.

Dr Hamidy, Director General, Chairman of the Board of ARPCSO, mentioned that this strategic collaboration underlines Buna’s commitment to connect various regions and foster economic, financial, and investment bonds between the Arab region and its primary global partners. He emphasised the shared vision of innovating cross-border payment solutions for secure and efficient instant cross-border payments, benefiting individuals and corporations alike.

Furthermore, the aim is to elevate cross-border remittances by decreasing costs and processing times.

The SBP governor described the MoU as a major strategic achievement that opens doors to a closer connection between Pakistan and the Arab region. He highlighted that the integration of these two payment systems will lead to increased remittances to Pakistan through official channels, offering enhanced speed, safety, and cost savings in cross-border transactions.

Given that over 5 million Pakistanis reside in the Arab region, with around 55% of Pakistan’s total remittances coming from Arab countries, the SBP is committed to expeditiously completing the necessary work, said Ahmed.

Published in The Express Tribune, November 4^th, 2023.

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Related Topics:alliance Arab crossborder ease fund Remittances SBP

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Business

PSX crosses 60,000 points milestone

Published

58 mins ago

November 28, 2023

Admin

Segregation of client assets is critical as brokers have been penalised for using client money illegally. PHOTO: AFP

KARACHI:

The Pakistan Stock Exchange (PSX) smoothly crossed the psychological barrier of 60,000 points during the early trading hours of Tuesday.

The gains came due to rich individuals and institutional investors making significant new investments in expectation of deep cuts in interest rates and the availability of stocks at low prices.

The PSX benchmark KSE-100 Index hit a new all-time high level of 60,745 points, rising by 1.56% or 934 points before mid-day from Monday’s close at 59,811 points. Penny stocks were the volume leader in the rally including textile, technology, food, bank and steel stocks.

Speaking to The Express Tribune, Arif Habib Limited Head of Research Tahir Abbas said: “The high expectation for a deep 7% cut in the key policy rate (interest rate) by the State Bank of Pakistan over the one-year agreed investors to take new possessions”.

“The central bank is expected to cut its key policy rate to 15% by December 2024 from record high 22% at present…ahead of a potential deceleration in inflation reading next year,” he added

Abbas mentioned that the interest rate cut expectations have made rich individuals and institutional investors relocate their investments to the stock market from fixed-income instruments these days.

Topline Securities CEO Muhammad Sohail said in a comment on X (formerly Twitter) that the PSX is breaking records and the development is “still not surprising.”

The market has gained 50% in only five months to over 60,000 points from 40,000 points. “This is the fastest 50% rise in a few months after 2004,” he wrote.

Read PSX hits fresh record, nears 60k milestone

“When you have an unbelievably low valuation, a price-to-earnings ratio of 3-4%, such recovery is not at all surprising,” Sohail further commented.

Abbas further said the listed companies have booked record high growth in profit of 46% in the first nine months ending September 2023 and added that “accordingly, dividend payments by them rose robustly by 42% in the same period. This is another factor that has attracted new investment at PSX”.

The market is expecting foreign currency inflows worth around $1.5-2 billion from multilateral creditors like the World Bank and Asian Development Bank soon after the IMF executive board approves the release of its second tranche of $700 million to Pakistan in December 2023.

This is another factor for the record-buying spree at PSX.

He anticipated the market reaching 75,000-80,000 points by the end of December 2024 considering all goes well including political stability in the country, economic growth, and global commodity prices remaining stable.

“The next six months seem stable at least”, he maintained.

Business

Completion of key projects increases water storage

Published

2 hours ago

November 28, 2023

Admin

LAHORE:

The completion of eight ongoing water and hydropower projects by Water and Power Development Authority (WAPDA) is set to significantly enhance Pakistan’s water storage capacity and hydel power generation. The carry-over water capacity in the country will increase from 30 to 45 days, with an additional 9.7 MAF water storage.

During a visit to WAPDA House, a delegation from PAF Air War College Karachi, led by Air Commodore Raja Imran Asghar, received a comprehensive briefing. The delegation comprised officers from Pakistan and allied nations.

Read: Water projects presented to Turkish consultants

The delegation learned about the climate change threats and water security challenges faced by Pakistan. WAPDA’s ongoing projects, such as Diamer Basha Dam, Mohmand Dam, and others, were highlighted as crucial for the water, food, and energy security of the country.

Published in The Express Tribune, November 28^th, 2023.

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Business

Pakistan, China forge textile ties

Published

3 hours ago

November 28, 2023

Admin

SUZHOU:

A Pakistani delegation, led by Hussain Haider, Pakistan’s Consul General in Shanghai, visited Shengze Oriental Textile City in Suzhou, China, and met with representatives from local textile enterprises.

During the meeting, Haider introduced the trade and investment environment of Pakistan and China, with a particular focus on the preferential policies available to Chinese investors in Pakistan. “Currently, Pakistan’s textile exports to China mainly consist of cotton yarn, apparel, cotton fabrics, and home textiles, with cotton yarn accounting for 73% of the total,” he stated.

Expressing a strong desire for deep cooperation with Shengze’s silk and textile industry cluster, he extended an invitation to Shengze’s enterprises to visit Pakistan and gain first-hand knowledge of the trade and investment policies.

Shengze is renowned for its robust silk and textile industry with a rich history. To gain insights into the dynamics of the textile sector and explore potential collaborations, the delegation toured several textile enterprises in Shengze Oriental Textile City and reached preliminary cooperation intentions. Haider said, “We hope to further communicate and connect with Shengze Oriental Textile City. We sincerely invite Shengze’s enterprises to invest and establish factories in Pakistan, aiming to achieve mutual benefits and contribute to the deepening of China-Pakistan cooperation.”

Read: Chinese manufacturers to help textile industry

Agro-forestry Economy

The third Science and Technology Exchange Conference on China-Pakistan Tropical Arid Non-wood Forest is being held both online and offline from November 26 to 28 in Zhengzhou, China, and Gwadar, Pakistan, simultaneously.

The exchange conference aims to showcase achievements and research progress of both nations in the field of economic forestry. It also seeks to facilitate academic exchanges of woody medicinal herbs and active substances between China and Pakistan.

The event, co-hosted by the Chinese Society of Forestry (CSF) and Central South University of Forestry and Technology (CSUFT), drew over 220 officials, scholars, students, and business representatives from both countries.

In 2021, CSUFT, China Overseas Port Holding Company, and Yulin Holdings collaborated to establish an Engineering Research Centre for Tropical Arid Non-wood Forest.

THE ARTICLE ORIGINALLY APPEARED ON THE CHINA ECONOMIC NET

Published in The Express Tribune, November 28^th, 2023.

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