Pakistan the Emerging Investment Destination along the Silk Road

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By H.E. Mr Muhammad Khalid Jamali, Ambassador of the Islamic Republic of Pakistan in the Czech Republic

Pakistan, historically part of the Indus River basin is a diverse region, culturally, politically and economically. Today, Pakistan, sits at the confluence of great geo-economic potential with China & the Central Asian Republics in the north and the rich Gulf states in its south. With a population of 220 Million + with some 30% between the ages of 15 – 30 years it is an economic powerhouse waiting for meaningful engagement & investment.

Over the years Pakistan’s image has been sullied by a disinformation campaign run on behalf of the Indian Government and exposed by the EU Disinfo Lab. Contrary to the claims of the campaign, the generally depressed global economy & FATF grey listing Pakistan’s economic performance has shown resilience. Pakistan Economic Survey ‘21 estimates that GDP growth rate stood at 3.94%. Pakistan Stock Exchange has emerged as the best performing market in Asia and the 4th best performing market in the world & Moody’s credit rating for the country has improved to B3+. With economic indicators all showing an uptick, Pakistan is the investment market to be explored by European companies and investors.

The China Pakistan Economic Corridor (CPEC) valued at US$62 billion includes addition of 1100 Km of new motorways; connecting the Chinese border in the north via the Karakorum Highway to the Arabian Sea at Gwadar, and 5300 MW of power projects; total planned increase of 17000 MW, has entered into the 2nd phase with the establishment of 9 Special Economic Zones (SEZ’s) as part of the project

The priority sectors as part of CPEC SEZ’s include food processing, logistics, automotive, IT and housing construction. Food processing is the second largest industry contributing 27% to the value-added production after Textiles. Investments in Frozen Food and value addition in major feed crops are areas for investment.

Closely tied to the food processing sector is the need for warehousing and cold chain facilities. With 17 million middle class households in Pakistan automotive sales in Pakistan have been growing in double digits with 171% increase in 2020. There is a big demand for compact and mid-size vehicle manufacturing. Special incentives are in place for electric/green technology vehicle manufacturing. The IT industry set to grow to US$20 billion by 2025 has received special status with turnover tax exemptions. With some 20,000 IT graduates each year in Pakistan and strong English language skills this is a key area for investments.

Pakistan has an acute housing shortage with only 150,000 units of the demand of 350000 unit per annum being currently met. Under the Prime Ministers “Naya (New) Housing Scheme” there is a plan to build 5 Million units and special incentives including financing options have been put into place for contractors and buyers.  The fiscal incentives for investments made in these SEZ’s include a one-time custom duty and tax exemption on all capital goods imported into Pakistan for the development, operations and maintenance of the SEZ and for any enterprise being setup for operations in it. Moreover, there is an income tax holiday of 10 years on all industries set up in the SEZ’s. To promote investment in the hospitality and tourism sector the government has given it the status of an industry and tax incentives have been offered in the Federal Budget 21.

Pakistan’s investment policy has been consistent for the last 5 years with the aim to creating a conducive business climate for FDI. According to the WB ease of business survey, Pakistan emerged 2nd in the South Asia region. Out of six reform areas acknowledged in the 2020 report, the highest improvement of 58 points has been made in the “Starting a Business” indicator. With this said, Pakistan is ripe for European business investments.

And as we say in colloquial urdu  خوش آمدید –Welcome we are open for business. Pakistan Zindabad.

For further Information

Embassy of Pakistan in Czechia: http://mofa.gov.pk/prague-czech-republic-our-team/   

La chasse au crabe

Par Alexander Khodakov

[…] Un fonctionnaire du département des finances fixe nos salaires temporaires au niveau du Niger. Où est-il allé chercher l’information, que les prix à Libreville étaient les mêmes qu’à Niamey? Ils étaient deux fois plus élevés! L’argent disparaît comme neige au soleil. Cuisiner à la maison serait, naturellement, beaucoup moins cher. Mais nous étions logés à l’hôtel. Il fallait y manger, dans ces restaurants, dont les prix n’étaient pas à notre portée. Bien entendu, nous étions des citoyens soviétiques, habitués à nous tirer de toute difficulté. Chacun de nous avait un réchaud électrique, un thermoplongeur pour faire du thé… Il était bien sûr interdit de cuisiner dans les chambres. Mais même si on se fichait de cette interdiction, qu’est-ce qu’on pouvait préparer sur un réchaud primitif?.

Mon argent glisse entre mes doigts, s’en va comme l’eau courante. Ayant vécu en Algérie tout seul, sans maman, je sais, pourtant, compter l’argent. Tout simplement, il n’y en a pas assez. Alors, quand je n’ai plus d’espèces, je signe des factures aux restaurants du Gamba et de l’Intercontinental. Ayant reçu mon salaire, je m’acquitte de mes dettes, mais à chaque fois, il me reste de moins en moins d’argent. Par ailleurs, emprunter de l’argent de cette manière, faire des dettes, était formellement interdit par le règlement financier.

Alors, Son Excellence, qui examine régulièrement les factures de l’hôtel, découvre cette violation assez grave de la discipline. Il me gronde, et cette fois, sans pitié. Toutefois, il ne s’arrête pas là – il me prête de l’argent, pour que je puisse vivre sans me couvrir de dettes.

Une catastrophe financière est, tout de même, imminente. Un jour, c’est l’ambassade qui n’a plus de sous. L’argent sur le compte est épuisé. Complètement. Et le virement qui devait venir de Moscou – la capitale jure qu’il est parti – n’arrive toujours pas. Il s’est avéré plus tard qu’une des banques correspondantes l’a simplement …perdu ! Quoi qu’il en soit, nous sommes condamnés à vivre sans salaire.

Dans les meilleures traditions soviétiques, on crée une commune. L’ambassadeur n’y prend pas part, sa dignité ne le permet pas. Tous les autres mettent le peu de francs qu’il leur reste dans un pot commun. On achète les produites les moins chers, qu’on peut préparer sur un réchaud. Des cubes de bouillon, des sardines et haricots en boîte…Le soir, on se rassemble autour du réchaud et déguste ce que Dieu, dans sa bonté divine, nous a donné à manger.

Je ne me rappelle pas qui a eu la brillante idée de chasser le crabe. Il y en avait plein à la plage. On les appelait « les crabes de cocotiers », ce qui n’est pas juste, car il s’agit d’une autre espèce de crabes; l’important était, tout de même, qu’ils étaient comestibles. En outre, bien préparé, ce crabe a un goût exquis (crabe farci – une spécialité gabonaise). Le jour ils se cachent dans le sable, entre les racines des cocotiers, à la nuit tombée ils sortent par dizaines pour chasser et se nourrir. C’est le moment pour nous d’ouvrir notre propre chasse.

Quel tableau épique – les diplomates soviétiques, aux yeux avides, poursuivant les crabes sur la plage…Les premiers temps on n’arrivait pas à approcher un crabe assez vite pour pouvoir l’attraper. On trouve, par ailleurs, une astuce – si l’on dirige la lueur d’une lampe-torche sur un crabe, il se fige pour quelques instants. C’est assez pour accourir et l’assommer. Ensuite, on les lave et nettoie, ils vont dans la casserole, et on les consomme, en buvant un verre de bière, acheté avec les derniers francs.

Comme le virement tardait toujours à venir, Konouzine propose d’emprunter de l’argent à la banque. Le règlement financier l’interdit carrément, c’est une violation grave, qui peut avoir des conséquences disciplinaires. Mais la situation devient intolérable, on ne peut pas, quand même, se laisser mourir de faim à cause d’un règlement. L’ambassadeur donne sa bénédiction et Konouzine entre en négociations avec notre banque. Dieu merci, son directeur général est d’accord pour nous prêter de l’argent sans intérêt. Cette générosité sauve la peau de l’ambassadeur et de son troisième secrétaire ingénieux – le département des finances les blâme, mais n’impose pas de sanctions disciplinaires. Tout de même, il exige de se faire présenter un rapport, qui doit prouver que l’ambassade n’avait pas d’autre choix.

Quand le virement arrive, on change de banque et la crise ne se répète plus. En signe de gratitude, on laisse un compte dans la banque qui nous a dépannés, mais on s’en sert rarement.

Information sur l’auteur:

This image has an empty alt attribute; its file name is WhatsApp-Image-2020-11-08-at-15.44.451-768x1024.jpeg
Alexander Khodakov

Né à Moscou en 1952, Alexander Khodakov fait ses études de droit  à  l’Institut de relations internationales de Moscou (MGIMO). Après trois ans à MGIMO, il fait un an d’études à l’université d’Alger. En 1974 il est recruté par le Ministère des affaires étrangères de l’URSS et part en poste au Gabon. Rentré à Moscou, il intègre le département juridique du Ministère. De 1985 à  1991 il travaille  à New York au sein de la mission permanente de l’URSS auprès des Nations unies. De retour à Moscou en 1991 il revient au département juridique, dont il devient directeur en 1994. Quatre ans plus tard il est nommé ambassadeur de Russie aux Pays-Bas et représentant permanent auprès de l’Organisation pour l’interdiction des armes chimiques (OIAC). En 2004 il passe au service de l’OIAC comme directeur des projets spéciaux et ensuite secrétaire des organes directifs. En 2011 il rejoint le greffe de la Cour pénale internationale et exerce pendant trois ans comme conseiller spécial pour les relations extérieures.

Depuis 2015 il vit  à La Haye, avec sa famille. Il a écrit Cuisine Diplomatique un vibrant récit des histoires inédites sur sa vie diplomatique.

International Politics Focus: Italy & France

By Michelle Rahimi

Italy update

France provides aircraft help for fighting fires in Italy (bignewsnetwork.com)

France and Greece have both decided to provide firefighting aircraft to Italy on following an appeal for help in taming fires raging across Sardinia.

The region has declared a state of emergency and as many as 1200 people have been evacuated from their homes.

About 7,500 emergency workers were helping evacuees and those at risk.

About 20,000 hectares of vegetation have lost, with properties damaged and animals also killed. The fire danger level has remained and been labeled as “extreme.”

Eiffel Tower – Paris

France update

Emmanuel Macron sparks outrage as French leader capitulates to Merkel over space deal | World | News | Express.co.uk

Emmanuel Macron is suffering brutal backlash after the French government signed a deal with Angela Merkel on a new Franco-German space project.

France and Germany signed a new space agreement that will see more investment into the Ariane 6 rocket.

The deal is said to “guarantee the financing of the Ariane 6 rocket, cooperation between the two countries on launchers, and also the European preference for satellite launches.”

Critics of the submissive alliance between the two countries also lamented when Emmanuel Macron gave into Ms. Merkel’s demands over the development of the FCAS combat jet this year.


About the author:

Michelle Rahimi is a Diplomacy and International Relation’s Master’s candidate at the School for International Training, located in Brattleboro, Vermont, United States of America.

She obtains an extensive passion for international relations with first-hand knowledge from traveling across many countries and is experienced in working with different teams and individuals from diverse cultural and socio-economic backgrounds.

International Politics Focus

By Michelle Rahimi

Italy update

Italy Asks Europe For Firefighting Planes To Control Sardinia Fires (ndtv.com)

On Sunday, Italy asked for aid from European states, specifically requesting firefighting aircraft to help tame fires that have swept across parts of the island of Sardinia.

Hundreds of people have been evacuated, and thousands of acres of land already burned, causing a great deal of damage to property and wildlife.

Christian Solinas, president of the Sardinia Region, described the fires as “a disaster without precedent”

France update

France ratifies revised version of Emmanuel Macron’s ‘health pass’ law | Financial Times (ft.com)

The French parliament has officially ratified a “watered-down,” version of President Emmanuel Macron’s proposed law to make Covid-19 vaccination compulsory for healthcare workers and to require a “health pass” to enter public places.

Following a weekend filled with street protests, with up to 161,000 people protesting in Paris and elsewhere against the health pass, and resistance met in parliament, especially from the center-right bloc in the Senate, the new version of the health pass is hoped to bring more gradualness to the sanctions.

Channel migrants: France calls on EU border agency Frontex to provide air surveillance of crossings (inews.co.uk)

French Interior Minister Gerald Darmanin said he has asked Frontex to act along the EU’s northern borders, where thousands of migrants attempt the dangerous sea crossing from France to the coast of Britain each year.

Mr. Darmanin and Home Secretary Priti Patel of Britain announced an agreement last week to more than double the number of police patrolling French beaches for the second time in a year to prevent illegal migration and stop small boats from departing France.

The migrant crisis reached boiling point last week when the number of people who had crossed to the UK so far this year up to Tuesday had reached 8,452 – exceeding the figure for the whole of 2020. Last year, 8,417 people had made the trip, according to data analyzed by the PA news agency.


About the author:

Michelle Rahimi is a Diplomacy and International Relation’s Master’s candidate at the School for International Training, located in Brattleboro, Vermont, United States of America.

She obtains an extensive passion for international relations with first-hand knowledge from traveling across many countries and is experienced in working with different teams and individuals from diverse cultural and socio-economic backgrounds.

Jordan’s monarch strengthens strategic ties to the USA

Crown Prince Hussein, Queen Rania, King Abdullah II, President Joe Biden, First Lady Jill Biden – Picture by Royal Hashemite Court.

19-23 July 2021, Washington D.C., USA: US President Joe Biden welcomed on Monday, 19 July, His Majesty King Abdullah II of the Hashemite Kingdom of Jordan for a bilateral summit meeting at the White House. The summit covered expanding the strategic partnership between Jordan and the United States, and regional and international developments, foremost of which is the Palestinian cause.

President Biden was proud to announce the delivery of over 500,000 COVID-19 vaccines to Jordan, underscoring the U.S. commitment to bringing the same urgency to international vaccination efforts that we have demonstrated at home.

The heads of state and government, discussed pressing economic challenges exacerbated by the effects of the COVID-19 pandemic, both at home and across the globe.  They focused on the benefits of investing in infrastructure, and discussed the President’s infrastructure plan as well as Jordan’s plans for a desalination project and Jordan’s potential for greater regional economic integration through investments in energy infrastructure.
The leaders also consulted upon opportunities to enhance peace and stability in the Middle East.

King Abdullah II and House Speaker Nancy Pelosi – Picture by Royal Hashemite Court

In that regard, President Biden expressed his strong support for a two-state solution to the Israeli-Palestinian conflict and respect for Jordan’s special role as Custodian of Muslim holy places in Jerusalem. The President expressed U.S. support for engagement between Jordan and the new Israeli Government, as demonstrated by their bilateral agreement earlier this month to improve Jordan’s access to fresh water and increase Jordan’s exports to the West Bank.

King Abdullah II and President Biden reflected on the strategic U.S.-Jordan defence relationship. They discussed U.S. support for the modernization of Jordan’s fleet of F-16 fighter jets, which will allow for greater interoperability and effectiveness of the Jordanian Armed Forces. 

Jordanian Deputy Prime Minister and Foreign Minister Ayman Safadi, Director of the Office of His Majesty Jafar Hassan, and Jordan’s Ambassador in the U.S.A., Dina Kawar attended the meeting.

During the official visit to Washington D.C., the Jordanian delegation headed by King Abdullah II likewise encountered U.S. National Security Adviser Jake Sullivan; U.S. Agency for International Development (USAID) Administrator Samantha Power;  US Vice President Kamala Harris; Secretary of Defence Lloyd Austin; Homeland Security Secretary Alejandro Mayorkas; State Secretary Antony Blinken; Treasury Secretary Janet Yellen; the Senate leadership; the House of Representatives’ Speaker Nancy Pelosi; Chairman of the Joint Chiefs of Staff Gen. Mark Milley, and others. 

For further information

 
Royal Hashemite Court: https://www.kingabdullah.jo/en/news/king-us-president-hold-summit-meeting-white-house

The White House: https://www.whitehouse.gov/briefing-room/statements-releases/2021/07/19/readout-of-president-joseph-r-biden-jr-meeting-with-king-abdullah-ii-of-jordan/

Interview of HM King Abdullah II with CNN: https://edition.cnn.com/videos/tv/2021/07/25/exp-gps-0725-king-abdullah-biden-middle-east.cnn

Helen Clark to serves as President of Chatham House

Tuesday, 20 July 2021, London, United Kingdom: 37th New Zealand prime minister and 8th Head of the United Nations Development Programme, The Rt Hon Helen Clark, has been elected president of Chatham House.
The Rt Hon Helen Clark is due to replace erstwhile United Kingdom Prime Minister, Sir John Major, who is retiring from the role. Helen Clark will join Baroness Eliza Manningham-Buller and Lord Darling as one of the institute’s three serving presidents.

Helen Clark served in the capacity as prime minister of New Zealand from 1999-2008. Subsequently she became the 8th and first female administrator of the UN Development Programme, completing two terms from 2009-2017.  

Ms Clark was elected at the Annual General Meeting of Chatham House held on 20 July which also marked the last official engagement for Lord O’Neill, who has now handed over to Sir Nigel Sheinwald as Chair of the institute.

For further information


Chatham House: https://www.chathamhouse.org/2021/07/helen-clark-elected-president-chatham-house

Helen Clark – Picture by Global Commission on Drug Policy through Wikipedia Commons

Today in Italy & France

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International Politics Focus

By Michelle Rahimi

Italy update

‘Draghi effect’: Protests in Italy – but also surge in vaccine bookings after PM’s health pass announcement – The Local

Protests were organized throughout Italy after Prime Minister Mario Draghi announced on Thursday that there will be an expansion of the country’s health passport scheme. Prime Minister Draghi urged people to get vaccinated or face a new lockdown.

Ironically, there was also at least half a million vaccination appointments made in the 24 hours following Draghi’s announcement.

It was stated that from August 6th, the Italian population will need a health pass to enter gyms, swimming pools, museums, cinemas, theatres, sports stadiums, and other public venues, including indoor seating areas at bars and restaurants.

The health pass will serve as proof that bearers have either been vaccinated, undergone a recent Covid-19 test, or recovered from Covid-19.

Italy finishes with flourish, beats Germany 92-82 – ABC News (go.com)

Italy beat Germany 92-82 in the opening games for both teams at the Tokyo Olympics on Sunday.

It was Italy’s first game in the Olympics since losing the gold-medal game in 2004. As for Germany, it was making its first Olympic basketball appearance since 2008.

France

France Covid update

French protesters against Covid health curbs, reject passes,vaccine mandate | Business Standard News (business-standard.com)

Up to 160,000 people, protested Saturday across France against a bill requiring everyone to have a special virus pass to enter restaurants and mandating Covid-19 vaccinations for all health care workers.

Legislators in France’s Senate were debating the virus bill Saturday after the lower house of parliament approved it on Friday.

French lawmakers are divided over how far to go in imposing health passes or mandatory vaccinations.

France is seeing about 20,000 new infections a day, up from just a few thousand a day in early July, but despite this, many protestors said they felt they were being rushed into something they’re not ready to do regarding vaccinations.


About the author:

Michelle Rahimi is a Diplomacy and International Relation’s Master’s candidate at the School for International Training, located in Brattleboro, Vermont, United States of America.

She obtains an extensive passion for international relations with first-hand knowledge from traveling across many countries and is experienced in working with different teams and individuals from diverse cultural and socio-economic backgrounds.

Italy & France today

By Michelle Rahimi

Italy update

Roundup: Venice natives relieved as city avoids UNESCO heritage danger list – Xinhua | English.news.cn (xinhuanet.com)

In Rome, Italy, July 23, residents of the city of Venice were relieved to hear that their city had avoided making a spot on the United Nations Educational, Scientific and Cultural Organization’s (UNESCO) list of World Heritage sites in danger.

The city was worried that the Italian government was not doing enough to protect it and its cultural, artistic, and architectural riches.

For example, the presence of large cruise ships in the Venice lagoon had put a strain on the city, before they were recently banned.

All members of the city of Venice have concluded that it is vital they continue to protect their city. This is important before UNESCO is to reevaluate Venice’s status in 2023.

Hôtel de Dieu, France.

France Covid update

New Covid-19 variant ‘probable’ this year: Top French expert, Europe News & Top Stories – The Straits Times

The French government’s top advisor on Covid-19 warned Friday (July 23) that a new variant of the disease is most likely to emerge in the winter months this year.

The country is currently battling a spike in new cases caused by the Delta variant, which was first recognized in India.

It is reported by a top infectious disease specialist in France that a “return to normal” would probably be in 2022 or 2023.

About the author:

Michelle Rahimi is a Diplomacy and International Relation’s Master’s candidate at the School for International Training, located in Brattleboro, Vermont, United States of America. She obtains an extensive passion for international relations with first-hand knowledge from traveling across many countries and is experienced in working with different teams and individuals from diverse cultural and socio-economic backgrounds.

International Politics Focus: Italy & France

By Michelle Rahimi

Italy Covid update

Italy to Require Proof of Vaccination or Negative Test for Social Activities

The New York Times (nytimes.com)

The Italian government announce on Thursday that it would require people to show proof of vaccination or a recent negative test to participate in certain social activities, including indoor dining, visiting museums, and attending shows.

The move follows a similar announcement made by the French government last week and comes as the debate in Western nations heats up over how governments should, or can, go in circumscribing the life of the unvaccinated.

Starting on August 6th, Italians will be required to show proof of having received at least one dose of the vaccine, having taken a recent negative swab, or having recovered from Covid in the past six months to sit at indoor tables in bars and restaurants; access museums, swimming pools, gyms, and theme parks; and attend sports competitions and other events, including public exams.

France update

French army says it has killed two ‘terrorists’ in Mali (msn.com)

The French army has killed two members of the EIGS “terrorist” group, which France says has links to the Islamic State, in Mali.

France is in the process of re-shaping its military presence in West Africa’s Sahel region, which includes Mali, where France has been on the front line in the fight against Islamist militia groups.

Key Trends in the Construction Industry in France 2021-2025: EUR 6.8 Billion Government Spending Planned for Summer Olympic Games in Paris in 2024 | Markets Insider (businessinsider.com)

The French construction sector declined by 13.2% in 2020, because of the COVID-19 outbreak. The industry is expected to recover in 2021 and grow by 8.6% this year, registering an annual average growth of 1.9% between 2022 and 2025.

In preparation for the upcoming summer Olympic games in Paris in 2024, the French government plans to spend EUR6.8 billion to upgrade the country’s infrastructure by 2024.

Long-term growth in the industry will be also driven by the government’s plan to invest EUR80 billion (US$94.4 billion) on transport infrastructure between 2018 and 2037. On a positive note, work is progressing on the EUR31.7 billion (US$37.4 billion) Grand Paris Express Metro Rail project, which is claimed to be the biggest urban mobility project currently underway in Europe.

About the author:

Michelle Rahimi is a Diplomacy and International Relation’s Master’s candidate at the School for International Training, located in Brattleboro, Vermont, United States of America. She obtains an extensive passion for international relations with first-hand knowledge from traveling across many countries and is experienced in working with different teams and individuals from diverse cultural and socio-economic backgrounds.

Ricardo Galindo Bueno sworn in tourism portfolio

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Minister Ximena Lombana swears in Vice Minister of Tourism, Ricardo Galindo Bueno – Picture by MINCIT

Wednesday, 21 July 2021, Bogotá, Republic of Colombia: Colombia’s Minister of Commerce, Industry and Tourism, María Ximena Lombana Villalba, sworn in her deputy in charge of the tourism portfolio,  Ricardo Galindo Bueno.

Ricardo Galindo Bueno, is a professional in Finance and International Relations, graduated from the Universidad Externado de Colombia.

In his professional career he has served as Deputy Comptroller, General Director of the National Road Safety Agency and manager of Proexport. In addition, he has held various positions in the Ministry of Foreign Affairs.

He will also be responsible for continuing the implementation of tourism Law 2068 of 2020 in its four pillars: sustainability, quality, formalisation and reactivation. 

For further information
MINCIT Vice Ministry of Tourism: https://www.mincit.gov.co/minturismo/viceministerio