Saudi Crown Prince wins hearts in Pakistan

News Network
February 19, 2019

Feb 19: Dubai The historic two-day official visit of Saudi Crown Prince Mohammad Bin Salman concluded with a strong message about the ‘bright future of Pakistan.

“Crown Prince Mohammad Bin Salman won the hearts of the people of Pakistan when he said “consider me Pakistan’s ambassador to Saudi Arabia” in response to my asking him to treat the 2.5 mn Pakistani’s working in KSA as his own,” Prime Minister Imran Khan summed up his feelings in his tweet.

Crown Prince Mohammad was seen off on Monday by Premier Imran and Pakistan Army Chief General Qamar Javed Bajwa at the Nur Khan Airbase. But before leaving, they held a candid but important press conference.

Imran thanked the Crown Prince for his visit hoping that he would stay longer next time “so I can show you the beauty of Pakistan and the northern areas.” He also thanked Prince Mohammad for his announcement of releasing more than 2,000 Pakistani prisoners from Saudi jails with immediate effect. “I want to thank you on behalf of the people of Pakistan” for announcing the release of Pakistani prisoners,” he said. He also thanked the crown prince for the agreements worth $20 billion that were signed on the first day of his visit in Islamabad.

We believe in Pakistan’s future and that it has a huge opportunity. In 2030, Pakistan will be next to two huge economies.

- Mohammad Bin Salman

“I woke up this morning and when I looked at my mobile phone, I realised ─ after your statement last night saying that you would be Pakistan’s ambassador in Saudi Arabia ─ that if you stand in elections here, you would get more votes than me,” Imran said on a lighter note, addressing the Crown Prince who was standing at a podium to his right. “You are extremely popular,” he added.

Crown Prince Mohammad told the press conference: “We believe in Pakistan’s future and that it has a huge opportunity. In 2030, Pakistan will be next to two huge economies. One, China will be the largest economy in 2030, and two, India will be the third-largest economy so Pakistan will definitely benefit from these neighbours,” he said.

Huge Potential

“We saw the Pakistani economy grow by 5 per cent in 2018 so we believe that Pakistan has huge potential, it could be one of top 20 economies in the future,” he reiterated.

“If the efforts of the leadership, the people of Pakistan, and their allies come together, definitely it can reach that one day,” he added.

Saudi Arabia has always been a 'friend in need' to Pakistan. For Pakistanis, this is a great day.

- Imran Khan

“So because of that, we believe in Pakistan and we want to be part of that journey and we want to risk our money, risk our efforts, to start from day one,” he explained.

“What we did today, it’s the beginning and we hope in the close future we do more and more partnering with Pakistan,” he said.

Pakistan is a very important country

After receiving a very warm welcome upon his arrival in Islamabad on Sunday, Crown Prince Mohammad engaged in various activities lined up for the day.

Speaking at the official reception at the Prime Minister’s House in Islamabad, Prince Mohammad said Pakistan will be a very, very important country in the future and that his country had been waiting for a leadership like that of Prime Minister Imran Khan to partner with Islamabad in various areas.

“Whatever we did was the beginning and I hope in the near future we do more,” he said.

That was evident in Saudi Arabia’s announcement of a whopping $20 billion investment to help Pakistan tide over its economic problems.

The credit for that change goes to Pakistan Prime Minister Imran Khan, who unlike his predecessors, sought investment instead of charity. The Saudi investment is not a charity as it will benefit both the countries.

The investment will be mainly in minerals, tourism, petrochemicals, agriculture, food processing and other key sectors.

The crown prince said Pakistan is a “dear country” to all Saudis and that the two countries “have walked together in tough and good times”.

Prime Minister Imran in his speech welcomed the Saudi crown prince and his delegation to the country, saying the Kingdom has always been a “friend in need” to Pakistan.

“For Pakistanis, this is a great day,” he said, adding that Saudi Arabia had always been there when Pakistan needed friends.

Imran said Pakistan and Saudi Arabia were now taking their relationship to a new level, where investment agreements would be mutually beneficial for the countries.

Khan told the Crown Prince that if it hadn’t been for security concerns, “you would have seen thousands and thousands of people on the streets welcoming you.”

Imran’s request

He requested the Crown Prince to allow Pakistani Haj pilgrims to complete immigration at the three major Pakistani airports before leaving for Saudi Arabia for their convenience.

Prime Minister Imran requested the Saudi authorities to look into the hardships of Pakistani labourers working in the Kingdom.

In response, the Crown Prince told Prime Minister Khan he could consider him the ambassador of Pakistan in Saudi Arabia.

“We cannot say no to Pakistan ... whatever we can do, we will deliver that,” he said.

Saudi Pakistan Supreme Council

Bilateral ties also received a significant boost with the launch of the Saudi-Pakistan Supreme Coordination Council. Chaired by Imran and Prince Mohammad, the council is a high-level institutional mechanism to fast-track decisions in critical aspects of cooperation, and to monitor its implementation in three key areas: political and security, economic, social and culture.

Seven MoUs signed

Seven Memoranda of Understanding were signed at a ceremony witnessed by Crown Prince Mohammad and Prime Minister Imran at the Prime Minister’s House,

The agreements signed include:

Technical cooperation programme between the Saudi Standards, Metrology And Quality Organisation (SASO) and Pakistan Standards and Quality Control Authority (PSQCA).

Cooperation agreement between Saudi and Pakistani governments in the field of sports.

Financing agreement for the import of Saudi goods between the Saudi Fund for Development and Pakistan.

Framework MoU regarding Saudi funds’ participation in the financing of power generation projects between the Saudi Fund for Development and Pakistan.

MoU between the governments of Saudi Arabia and Pakistan to explore investment opportunities in refining and petrochemical sectors.

MoU between the governments of Saudi Arabia and Pakistan in the field of mineral resource sector.

MoU between the government of Saudi Arabia and Pakistan on the development of renewable energy projects.

Prime Minister Khan also held a one-on-one meeting with the Saudi crown prince at PM House. It was followed by the inaugural session of the Saudi-Pak This is not charity

In response to the Saudi investment of $20 billion in different projects in Pakistan, , Saudi State Minister for Foreign Affairs Adel Al Jubeir said on Monday: “This is not charity, but investment for the benefit of the two countries.”

“We are developing a roadmap with set targets ahead in areas including counter-terrorism, economy, people-to-people contacts and culture to further deepen our relations,” the Saudi Minister said in a joint press conference with Pakistani Foreign Minister Shah Mehmood Qureshi.

Working Groups

Foreign Minister Qureshi said 10 joint working groups had been formed under the Saudi-Pak Supreme Coordination Council, which would meet every three months. He said the Council would coordinate in areas including security, defence, intelligence sharing and energy and the leadership would oversee the implementation of projects.

What analysts say

Senior officials and analysts praised the visit. They said it presents a “historic opportunity” to expand collaboration in all sectors.

Dr. Huma Baqai, expert on International Relations, said the high-profile visit is manifestation of the strength of the relationship and it would go a long way in building strategic and economic relations that have been the hallmark of two brotherly countries.

Economist Mirza Ikhtiar Baig said Pakistan is facing several economic challenges and Saudi investment in development projects in the country would send across a positive message to the world about Pakistan.

Saudi Arabia was investing in long-term projects, which showed that Middle East countries have sighted Pakistan to be a developed country in the near future, he said.

The economist said the main focus of Pakistan is to strengthen trade, agriculture, tourism and other relations with Saudi Arabia. Riyadh is interested to establish an oil refinery in Gwadar.

Former Foreign Secretary Najam-ud-Din Sheikh said the Saudi relationship with Pakistan is considered to be exemplary and exceptional. He said Pakistan supported Saudi’s role and provided all out assistance to the Kingdom at political, military and diplomatic levels. Former Ambassador Fauzia Nasreen also praised the visit. She said heavy investment in development projects would be a message to the world that Pakistan is a haven for foreign investors.

Prisoner release

Prince Mohammad Bin Salman ordered the immediate release of 2107 Pakistani prisoners from jails in Saudi Arabia. Pakistan Federal Minister for Information and Broadcasting Chaudhry Fawad Hussain said Crown Prince Salman ordered the release of prisoners following a request from Prime Minister Imran Khan. He said cases of other Pakistani prisoners would also be reviewed.

The minister tweeted: “As a sequel to Prime Minister of Pakistan request, His Royal Highness the Crown Prince of Kingdom of Saudi Arabia Mohammad Bin Salman has ordered the immediate release of 2107 Pakistani prisoners from Saudi jails. Saudi Crown Prince arrived in Islamabad on a two-day official visit on Sunday.

Oil refinery

The biggest Saudi investment will be to set up an oil refinery in port city Gwadar. The oil refinery and petrochemical complex with an investment of around $11 billion would open new energy vistas in Pakistan. The Minister for Petroleum Ghulam Sarwar Khan signed Memoranda of Understanding (MoUs) with his Saudi counterpart to set up a $10 billion oil refinery, $ 1 billion petrochemical complex, installation of two Re-gassified Liquefied Petroleum Gas (RLNG) plants at an estimated cost of $4 billion and $2 billion investment in mineral development sector, an official source told APP.

“The petrochemical complex and refinery will help bring down the country’s oil import bill by $ 1.2 billion annually,” he said, adding Pakistan’s annual oil consumption was around 26 million tons (MT), out of which 13.5 MT was met through local production of eight existing oil refineries. “Around 50 per cent crude oil is imported to meet energy needs.”

Highest Civil Award for Crown Prince

President Dr Arif Alvi conferred the Pakistan’s highest civil award “Nishan-e-Pakistan” on Saudi Crown Prince Mohammed Bin Salman during a ceremony at the Aiwan-e-Sad in Islamabad.

The ceremony was attended by Prime Minister Imran Khan, federal ministers, three Services Chiefs, Chairman Joint Chiefs of the Staff Committee, members of the Saudi delegation and senior civil and military officials.

The country’s highest civil award was conferred on the Saudi Crown Prince in recognition of his efforts and contributions towards enhancing bilateral brotherly and traditional ties between the two countries.

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News Network
February 2,2020

Feb 2: Prime Minister Narendra Modi’s second budget in seven months disappointed investors who were hoping for big-bang stimulus to revive growth in Asia’s third-largest economy.

The fiscal plan -- delivered by Finance Minister Nirmala Sitharaman on Saturday -- proposed tax cuts for individuals and wider deficit targets but failed to provide specific steps to fix a struggling financial sector, improve infrastructure and create jobs. Stocks slumped as a proposal to scrap the dividend distribution tax for companies failed to impress investors.

"Far from being a game changer, the budget provides little in terms of short-term growth stimulus,” said Priyanka Kishore, head of India and South East Asia economics at Oxford Economics Ltd. in Singapore. “While income tax cuts will provide some relief on the consumption front, the multiplier effect is low and the overall stance of the budget is not expansionary."

India has gone from being the world’s fastest-growing major economy three years ago, expanding at 8%, to posting its weakest performance in more than a decade this fiscal year, estimated at 5%.

While the government has taken a number of steps in recent months to spur growth, they’ve fallen short of spurring demand in the consumption-driven economy. Saturday’s budget just added to the glum sentiment.

Okay Budget

“It’s an okay budget but not firing on all cylinders that the market was hoping for,” said Andrew Holland, chief executive officer at Avendus Capital Alternate Strategies in Mumbai.

The government had limited scope for a large stimulus given a huge shortfall in revenues in the current year. The slippage induced Sitharaman to invoke a never-used provision in fiscal laws, allowing the government to exceed the budget gap by 0.5 percentage points. The result: the deficit for the year ending March was widened to 3.8% of gross domestic product from a planned 3.3%.

On Friday, India’s chief economic adviser Krishnamurthy Subramanian said reviving economic growth was an “urgent priority” and deficit goals could be relaxed to achieve that. The adviser’s Economic Survey estimated growth will rebound to 6%-6.5% in the year starting April.

The fiscal gap will narrow to 3.5% next year, as the government budgeted for gross market borrowing to rise marginally to 7.8 trillion rupees from 7.1 trillion rupees in the current year. A plan to earn 2.1 trillion rupees by selling state-owned assets in the year starting April will also help plug the deficit.

Total spending in the coming fiscal year will increase to 30.4 trillion rupees, representing a 13% increase from the current year’s budget, according to latest data.

Key highlights from the budget:

* Tax on annual income up to 1.25 million rupees pared, with riders

* Dividend distribution tax to be levied on investors, instead of companies

* Farm sector budget raised 28%, transport infrastructure gets 7% more

* Spending on education raised 5%

* Fertilizer subsidy cut 10%

Analysts said the muted spending plan to keep the deficit in check will lead to more downside risks to growth in the coming months.

“It is very doubtful that the increase in expenditure will push demand much,” Chakravarthy Rangarajan, former governor at the Reserve Bank of India told BloombergQuint, adding that achieving next year’s budget deficit goal of 3.5% of GDP was doubtful.

With the government sticking to a conservative fiscal path, the focus will now turn to central bank, which is set to review monetary policy on Feb. 6. Given inflation has surged to a five-year high of 7.35%, the RBI is unlikely to lower interest rates.

What Bloomberg’s Economists Say:

The burden of recovery now falls solely on the Reserve Bank of India. With inflation breaching RBI’s target at present, any rate cuts by the central bank are likely to be delayed and contingent upon inflation falling below the upper end of its 2%-6% target range.

-- Abhishek Gupta, India economist

Governor Shaktikanta Das may instead focus on unconventional policy tools such as the Federal Reserve-style Operation Twist -- buying long-end debt while selling short-tenor bonds -- to keep borrowing costs down.

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News Network
June 3,2020

New Delhi, Jun 3: India registered its highest single-day spike in COVID-19 cases on Wednesday with 8,909 more cases reported in the last 24 hours, taking the country's tally to 2,07,615, while the death toll rose to 5,815 according to the Union Health and Family Welfare Ministry.

The number of active COVID-19 cases stood to 1,01,497 while 1,00,303 people have been cured/discharged/migrated.

According to the Union Health and Family Welfare Ministry, out of all the states, Maharashtra has recorded the highest number of coronavirus cases with 72,300 patients followed by Tamil Nadu with 24,586 cases.

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News Network
May 11,2020

Kabul, May 11: Four back-to-back roadside bombs exploded in a northern district of Afghanistan's capital Kabul on Monday, wounding four civilians including a child, police said. Kabul police spokesman Ferdaws Faramarz said a clearance team was at the site of the attacks.

Militants have carried out several roadside bombings and rocket attacks in Kabul and other parts of the country in recent weeks, but Monday's four consecutive explosions appeared to be the first coordinated effort for some months.

The Taliban has not carried out any large attacks in the city since they signed a landmark withdrawal deal with the US in February, meant to pave the way for peace in the country. No group has claimed the attacks. The explosions come as authorities are trying to impose a lockdown in the capital to curb the spread of coronavirus in the country.

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