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Pakistan needs ‘developing youth skills’

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Pakistan has witnessed further decline in Foreign Direct Investment (FDI) at a time when the country is going through an extreme financial crisis. The country recorded a huge decline in FDI which has pushed the already ailing economy of the impoverished country to the brink of collapse.

The investment has dropped by 52% in the first four months of the current financial year. FDI between July and October has decreased from $726 million to $348 million and the largest investment in Pakistan during the current financial year has come from China which amounted to about $74.8 million.

The State Bank of Pakistan has expressed concern over the decline in FDI, lamenting the country is moving towards becoming a bankrupt state. It fears the situation could be dire in case FDI declines further.

The UAE had invested $67.6 million this time last fiscal year, but in the current financial year, it has decreased to $51.4 million according to data provided by the State Bank of Pakistan.

Delay in reforms pushing Pakistan toward default  

Without doubt, Pakistan’s economy will have a little chance to improve sans addressing structural distortions as these distortions are present across all aspects of economic policies to start from taxes to subsidies, from trade restriction to gender norms and etc….

Pakistan’s textiles exports have also dropped to their 17-month low since May 2021 due to a global economic slowdown in the textile and clothing demand in the US, UK and Europe. No matter whatever was the reason, whether price inflation, growing energy expenditure and surging credit costs in the West, it was a disappointing export scenario for Pakistan. Last year, Pakistan export earnings were at $19.35 billion, a historic high, but this year it may decline by $3 billion.

Islamabad is facing an unprecedented foreign exchange crisis, highlighting the fragility of the country’s economic situation.

But Pakistan’s Minister for Planning, Development and Reforms, Ahsan Iqbal said that there is no possibility of bankruptcy in the current state of Pakistan’s economy. Accepting economic problems, he said that efforts are being made to settle it quickly.

Challenging road ahead  

Marred by political uncertainty and challenging economic indicators, Pakistan’s GDP growth is projected to witness a significant slowdown to 2.1% in the ongoing fiscal year.

In its latest report, the Egyptian financial services company forecast Pakistan’s real GDP growth will slow to 2.1% in FY, from 6.2% in the previous fiscal year with the potential for a mild recovery in FY24 to 3.1%.

According to the report, Pakistan’s macro outlook remains hostage to political instability that has unfolded since early this year after the impeachment of former Prime Minister Imran Khan.

Iqbal also blamed Khan and his political party Pakistan Tehreek-e Insaf (PTI) for spreading false propaganda on the country’s economic conditions. Khan is responsible for this financial crisis in Pakistan, according to Iqbal, who claimed that Shehbaz Sharif government will be able to come out of this situation.

Beside the political environment that has become a deadlock with a cornered ruling coalition facing an increasingly popular opposition, leading to a political stalemate, the recent floods also paint an unfavorable economic outlook with the loss of billions of dollars in infrastructures.

Moreover, supply disruptions on the food side, mainly due to the recent floods, and potential measures to contain the fiscal deficit are likely to keep inflation elevated, according to Egyptian report, as it also projected average inflation of 23.5% in FY23

Pakistan eyes boosting trade ties with Turkey

Pakistan Prime Minister Shehbaz Sharif is looking to boost trade and investment ties with Turkey as both the countries are going to celebrate the 75th anniversary of the establishment of diplomatic ties this year.

“The deep-rooted brotherly relations between Pakistan and Turkey will be further consolidated through strengthening trade and investment ties,” Sharif said, in his address at the Turkey-Pakistan Business Council organized by the Turkish Foreign Economic Relations Board (DEIK) in Istanbul.

Praising the contribution of DEIK in boosting commercial ties between the two nations, he voiced his government’s “strong commitment” to providing opportunities to businessmen from both sides to further develop mutually beneficial linkages.

Sharif said that the Trade in Goods Agreement (TGA) signed in August, during the Turkish trade minister’s visit to Pakistan will contribute to achieving higher trade volumes commensurate with the true potential existing between the two sides.

During one-on-one meetings with Turkey’s leading business people on the sideline of the meeting, he urged the businessmen to invest in Pakistan, particularly in the evolving energy sector, such as renewable, and assured complete support of Pakistan’s government.

Pakistan has all the potentiality for economic recovery

Given all the difficulties, it doesn’t mean Pakistan has no road toward economy stability and for this the country needs to reduce income, gender, regional inequalities through progressive taxation and pro-poor public expenditures, greater participation of women in the labor force as well as special attention to less advanced regions. Islamabad also needs to expand vocational and technical training and robust social safety nets.

Pakistan is a young nation in terms of population and for the next 50 years at least, Pakistan will have a relatively young populace while the advanced countries are aging. The authorities must use this potentiality and equip these young men and women with the skill sets required by labor-deficient countries.

Japan wants 80,000 ICT professionals until 2030, while Korea has also opened its doors to foreign workers, and similarly, the immigration policies of Canada, Australia, New Zealand have been altered in favor of technical and skilled manpower. This is indeed a great chance for the Pakistanis to meet this growing demand which at the end of the day this process will introduce and produce good professionals to the country.

The young generation can also emerge in technologies and their applications to industry, agriculture, education, health, finance, and other sectors or remain part of Technology laggards.

Pakistan’s economy continues to be in shambles and it is widely feared that Pakistan is on the verge of imminent default, and since the start of 2022, Pakistan has faced a series of balance of payments crises. Meanwhile, the devastating floods had taken up whatever was left of the poor population. Time has come for the Pakistani policymakers to halt politicking and solve the protracted economic problems through the workforce of its young and energetic generations.

 

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Syria will not follow Afghanistan’s Taliban model of governance

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In an astonishing statement, Ahmed Shará, also known as Abu Mohamad Jolani, the leader of the Hayat Tahrir al-Sham (HTS) said that he will allow the girls to go to schools and will not turn Syria like Afghanistan under the rule of the Taliban.

Jolani, the de facto ruler of Syria, said that he will distance himself from the Taliban’s strict policies on women’s rights, and said that Syria will not follow the Taliban’s mode of governance.  

Jolani, who brought down the government of Bashar al-Assad and also widely welcomed by the Taliban, said that he believes in the education of women and girls and will not make Syria like Afghanistan.

“Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal. The Afghan model cannot be applied here,” Jolani told a BBC reporter.

Jolani says that Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal.

Jolani’s comment came when the Taliban congratulated the HTS-led victory by Jolani over Assad’s regime after years of fighting. The Afghan Foreign Ministry celebrated Jolani’s victory through a statement and hoped Jolani can bring peace and stability in the country.

“It is hoped that the power transition process is advanced in a manner that lays the foundation of a sovereign and serve-oriented Islamic government in the line with the aspiration of the Syrian people; that unifies the entire population without discrimination and retribution through adoption of a general assembly; and a positive foreign policy with world countries the safeguard Syria from a threat of negative rivalries of foreign actors and creates conditions for the return of millions of refugees,” the statement by Taliban Foreign Ministry.

However, Jolan’s position on the rights of women and girls is in great contrast with the current view of the Taliban leadership. Women and girls have been banned from education and work since the return of the Taliban in August 2021, following the collapse of the Republic System and withdrawal of the US troops from Afghanistan. Girls and women are even banned from medical institutions and visiting public spaces.

Jolani says he has a plan to create a government based institution and a council chosen by the people. 

The situation got worse when the Taliban’s Ministry for the Promotion of Virtue and Prevention of Vice called women’s voices “immodest” compounding their exclusion from public life. This year, it has been marked as three years since girls were banned from pursuing education over sixth grade. Besides that, on December 20, 2022, the Taliban’s Ministry of Higher Education announced that women would be barred from attending public and private universities.    

In an interview with CNN, Jolani said that he has a plan to create a government based on institutions and a “council chosen by the people.”

“When we talk about objectives, the goal of the revolution remains the overthrow of this regime. It is our right to use all available means to achieve that goal,” said Jolani.

“The seeds of the regime’s defeat have always been within it… the Iranians attempted to revive the regime, buying it time, and later the Russians also tried to prop it up. But the truth remains: this regime is dead.”

Moreover, he also said the Syrian people are the “rightful owners” of the country after the ouster of Assad, and declared a “new history” has been written for the entire Middle East.

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Yoon summoned again for questioning on treason charges

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A joint law enforcement team investigating South Korea’s martial law case announced on Friday that it has issued a second summons to ousted President Yoon Suk Yeol, requesting his presence for questioning next week. The inquiry concerns his alleged involvement in the failed implementation of martial law.

The team has scheduled the questioning for 10:00 a.m. next Wednesday at the Corruption Investigation Office for Senior Officials (CIO) headquarters in Gwacheon, located just south of Seoul. This marks the second summons after Yoon refused to cooperate with the initial notice earlier this week.

The decision to hold the questioning on a public holiday appears to be a strategic move by the CIO, likely aimed at addressing security concerns. The office confirmed that the summonses were delivered via express mail and electronically to both Yoon’s residence and the presidential office in Yongsan. Notably, after Yoon’s team refused to accept the first subpoena, the CIO opted against delivering the documents in person for this round.

The investigation focuses on Yoon’s role in the December 3 martial law declaration, which he revoked following a vote in the National Assembly. If Yoon continues to disregard the summons without valid justification, the CIO may seek a court order to detain him for up to 48 hours.

Yoon faces allegations of sedition and abuse of office, charges that have gained traction since his dismissal by parliament last Saturday. His suspension from office remains in effect pending a decision by the Constitutional Court, which will determine whether he is permanently removed or reinstated.

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Xi Jinping champions economic diversification during Macau visit

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During a three-day visit to Macau commemorating the 25th anniversary of its return to Chinese sovereignty from Portugal, President Xi Jinping emphasized the importance of economic diversification and maintaining the “one country, two systems” framework.

Speaking at the swearing-in ceremony for Macau’s new Chief Executive Officer, Sam Hou-fai, Xi urged the administration to make economic diversification the city’s primary focus. Sam, the fourth leader since the 1999 handover and the first mainland-born Chinese official to hold the position, is expected to align closely with Beijing’s objectives to reduce Macau’s reliance on gambling. The gambling industry, which accounts for approximately 80% of Macau’s tax revenue, has been the cornerstone of its rapid economic growth in recent years.

“Macau should prioritize proper economic diversification,” Xi stated, calling for enhanced policy support and investment in emerging sectors. He also reiterated the significance of the “one country, two systems” principle, stressing its role in ensuring the city’s “prosperity and stability” for the long term.

Xi’s visit included stops at the Macau University of Science and Technology, where he explored laboratories focusing on traditional Chinese medicine and planetary science. He also attended a cultural performance at the Macau Dome and met with local stakeholders, according to Chinese state media. His trip marked a shift in tone, with Anthony Lawrence, founder of Intelligence Macau, noting that it was the first time Xi publicly praised Macau for its progress rather than delivering critiques or instructions.

Since the liberalization of Macau’s gaming monopoly in 2002, the city has attracted significant foreign investment, including from prominent US casino operators such as Las Vegas Sands, MGM, and Wynn Resorts. However, the economy struggled during the COVID-19 pandemic due to travel restrictions, and recovery has only recently begun.

On Friday, Macau’s casinos were bustling with visitors, while non-gaming initiatives like a stamp exhibition co-organized by MGM China and Beijing’s Palace Museum showcased the city’s efforts to diversify its offerings.

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