adplus-dvertising
Connect with us

Economy

Qatar to invest $3bn in Pakistan economy – Al Jazeera English

Published

 on


The Qatar Investment Authority (QIA) has announced it aims to spend $3bn on various commercial and investment sectors in Pakistan, which is currently facing a dire economic crisis, according to a statement released by Qatar’s Amiri Diwan.

Wednesday’s announcement was made during a visit to Doha by Pakistani Prime Minister Shehbaz Sharif, who held official talks with Qatari Emir Sheikh Tamim bin Hamad Al Thani after a meeting with the QIA on Tuesday.

“His Highness stressed the importance of the brotherly and strategic relations between the two countries and their aspiration to enhance economic partnership by raising trade exchange and promoting investments through the Qatar Investment Authority,” the Amiri Diwan said in its statement.

300x250x1

A senior Pakistani minister who was present during the meeting confirmed to Al Jazeera that the Qatari government has shown its “intention of investing in Pakistan”.

“This is very good and more than what we needed,” he said. The minister further added that once the Qataris buy Pakistani assets, it will “boost our reserves”.

“They are interested in airports, seaport terminals, LNG-fired power plants, solar energy, [and] shares in the stock markets,” he said.

Pakistan is currently dealing with serious economic turmoil and faces a balance of payments crisis, with foreign reserves having dropped as low as $7.8bn, barely enough for more than a month of imports.

The country is also contending with a widening current account deficit, depreciation of the rupee against the United States dollar and inflation that hit more than 24 percent in July.

During the session, the two heads discussed bilateral relations between Qatar and Pakistan, and ways to support and develop them in “the fields of defence, economy, investment, trade exchange, energy and sports, in addition to discussing the efforts made by the two countries to combat terrorism”, the statement said.

[embedded content]

IMF financing in pipeline

The Pakistan representative for the International Monetary Fund (IMF) said last week that the IMF’s executive board would meet on August 29 to decide on resuming a stalled $6bn loan facility for Islamabad.

Last month, the IMF said it had reached a staff-level agreement with Pakistan that would pave the way for disbursement of $1.17bn if approved by the IMF board.

Earlier this week, Pakistan’s central bank also publicly stated that the country’s external financing needs had been “more than fully met” for the current fiscal year, “helping reduce external vulnerability”.

Commenting on the announcement, Uzair Younus, director of the Pakistan Initiative at the Atlantic Council’s South Asia Center, said that while this investment may help alleviate near-term financing concerns for Pakistan, it does not address the central problem facing the country’s economy.

“Pakistan’s core issue is its inability to sustainably finance its own foreign exchange needs,” Younus said. “The Qataris, through these investments, will expect profits that will need to be repatriated in dollars. One must ask whether Qatar will truly be able to recuperate its investments with a profitable return.”

Macroeconomist Ammar H Khan said that the Qatari investment will provide Pakistan with “precious forex liquidity” in a tough environment.

However, he too agreed with Younus, saying the investment will not “alleviate structural problems that plague the country”.

“If QIA is able to improve governance of state-owned enterprises through its investment and enhance value,” Khan said, “then that would be a welcome benefit.”

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Economy

China Wants Everyone to Trade In Their Old Cars, Fridges to Help Save Its Economy

Published

 on

China’s world-beating electric vehicle industry, at the heart of growing trade tensions with the US and Europe, is set to receive a big boost from the government’s latest effort to accelerate growth.

That’s one takeaway from what Beijing has revealed about its plan for incentives that will encourage Chinese businesses and households to adopt cleaner technologies. It’s widely expected to be one of this year’s main stimulus programs, though question-marks remain — including how much the government will spend.

Adblock test (Why?)

728x90x4

Source link

300x250x1
Continue Reading

Economy

German Business Outlook Hits One-Year High as Economy Heals

Published

 on

German business sentiment improved to its highest level in a year — reinforcing recent signs that Europe’s largest economy is exiting two years of struggles.

An expectations gauge by the Ifo institute rose to 89.9. in April from a revised 87.7 the previous month. That exceeds the 88.9 median forecast in a Bloomberg survey. A measure of current conditions also advanced.

“Sentiment has improved at companies in Germany,” Ifo President Clemens Fuest said. “Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.”

A stronger global economy and the prospect of looser monetary policy in the euro zone are helping drag Germany out of the malaise that set in following Russia’s attack on Ukraine. European Central Bank President Christine Lagarde said last week that the country may have “turned the corner,” while Chancellor Olaf Scholz has also expressed optimism, citing record employment and retreating inflation.

300x250x1

There’s been a particular shift in the data in recent weeks, with the Bundesbank now estimating that output rose in the first quarter, having only a month ago foreseen a contraction that would have ushered in a first recession since the pandemic.

Even so, the start of the year “didn’t go great,” according to Fuest.

“What we’re seeing at the moment confirms the forecasts, which are saying that growth will be weak in Germany, but at least it won’t be negative,” he told Bloomberg Television. “So this is the stabilization we expected. It’s not a complete recovery. But at least it’s a start.”

Monthly purchasing managers’ surveys for April brought more cheer this week as Germany returned to expansion for the first time since June 2023. Weak spots remain, however — notably in industry, which is still mired in a slump that’s being offset by a surge in services activity.

“We see an improving worldwide economy,” Fuest said. “But this doesn’t seem to reach German manufacturing, which is puzzling in a way.”

Germany, which was the only Group of Seven economy to shrink last year and has been weighing on the wider region, helped private-sector output in the 20-nation euro area strengthen this month, S&P Global said.

–With assistance from Joel Rinneby, Kristian Siedenburg and Francine Lacqua.

(Updates with more comments from Fuest starting in sixth paragraph.)

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Economy

Parallel economy: How Russia is defying the West’s boycott

Published

 on

When Moscow resident Zoya, 62, was planning a trip to Italy to visit her daughter last August, she saw the perfect opportunity to buy the Apple Watch she had long dreamed of owning.

Officially, Apple does not sell its products in Russia.

The California-based tech giant was one of the first companies to announce it would exit the country in response to Russian President Vladimir Putin’s full-scale invasion of Ukraine on February 24, 2022.

But the week before her trip, Zoya made a surprise discovery while browsing Yandex.Market, one of several Russian answers to Amazon, where she regularly shops.

300x250x1

Not only was the Apple Watch available for sale on the website, it was cheaper than in Italy.

Zoya bought the watch without a moment’s delay.

The serial code on the watch that was delivered to her home confirmed that it was manufactured by Apple in 2022 and intended for sale in the United States.

“In the store, they explained to me that these are genuine Apple products entering Russia through parallel imports,” Zoya, who asked to be only referred to by her first name, told Al Jazeera.

“I thought it was much easier to buy online than searching for a store in an unfamiliar country.”

Nearly 1,400 companies, including many of the most internationally recognisable brands, have since February 2022 announced that they would cease or dial back their operations in Russia in protest of Moscow’s military aggression against Ukraine.

But two years after the invasion, many of these companies’ products are still widely sold in Russia, in many cases in violation of Western-led sanctions, a months-long investigation by Al Jazeera has found.

Aided by the Russian government’s legalisation of parallel imports, Russian businesses have established a network of alternative supply chains to import restricted goods through third countries.

The companies that make the products have been either unwilling or unable to clamp down on these unofficial distribution networks.

 

728x90x4

Source link

Continue Reading

Trending