World Islamic Finance Forum hears of Pakistan’s economic plans and progress

Dr Miftah Ismail, Advisor to Prime Minister on finance, Revenue and economic affairs speaks at the inaugural session of World Islamic Finance Forum 2018. (AN photo)
Updated 19 March 2018
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World Islamic Finance Forum hears of Pakistan’s economic plans and progress

KARACHI: The government of Pakistan is planning to issue Islamic bonds worth Rs100 billion ($900 million) by the end of the current government’s tenure, the opening session of the World Islamic Finance Forum 2018 has heard.
Dr. Miftah Ismail, adviser to the prime minister on finance, revenue and economic affairs, also revealed that a scheme enabling Pakistanis to bring US dollars from abroad and declare the assets will be launched this month.
Ismail said that for the first time in 10 years, Pakistan is on course to achieve growth in gross domestic product of six percent by the end of the fiscal year.
“Despite structural, political, and law-and-order problems, the government is able to achieve this growth rate,” Miftah said.
Responding to requests from the Islamic-banking sector, Ismail said he would create a post at the Ministry of Finance to exclusively deal with the Islamic-finance industry.
“I will soon convene a meeting of a committee for the implementation of the recommendations of the Steering Committee for Promotion of Islamic Banking in Pakistan”, he said.
He also pointed out that 12,000 megawatts had been added to the country’s electricity supply network after years of power shortfalls.
“Some of the problems are now things of past, including power deficit, as the government has added electricity, something that was not done during past 66 years of history of the country,” said Ismail.
As expected, he said there would be no new taxes introduced in the upcoming federal budget, saying the aim of government would be to “maximize growth, not to maximize revenue.”
The government will abolish three or four taxes based on “the good suggestions of stakeholders,” he revealed, adding that many taxes are not benefiting the government in terms of income, but are being used as a way to harass taxpayers.
Ismail described the overall health of economy as absolutely fine.
“The government is taking steps to curtail the current account deficits, which are expected to be tamed in the next year,” he said. “Imports are expected to slow down because of the machinery being imported for production purpose.”
Foreign-exchange reserves at the central bank will remain at $12.5 billion at the end of the fiscal year (June 30, 2018).
Pakistan needs to achieve growth of eight to 10 percent to generate employment for young people, Ismail said, adding that the federal government is lacking the resources to spend much on development, forcing the government to borrow.
“Federal government gives 60 percent of resources to the provinces, and after paying pension and debt servicing the government starts with a deficit — that is why we are forced to borrow,” he said.
Ismail also stressed the need for the construction of dams, otherwise the country would face “water load shedding” — restrictions in the supply.
Earlier, Jameel Ahmed, the deputy governor of State Bank of Pakistan, stressed the importance of modernizing Islamic banking to help alleviate poverty.
“The Islamic banking industry needs to come up with modern financial products,” he said, calling for introduction of facilities based on modern financial technology.
Shaikh Ebrahim Bin Khalifa Al Khalifa, chairman of the board of trustees of the Accounting and Auditing Organization for Islamic Financial Institutions, spoke about the progress of Islamic banking and standardizations being implemented globally to strengthen Islamic financing. Pakistan has the capability to play a leading role in the expansion of Islamic finance, he added.
The two-day World Islamic Finance Forum, which began on March 19 at the Movenpick Hotel in Karachi, is organized by IBA Center for Excellence in Islamic Finance, with the theme of “Expanding the Footprint of Islamic Finance: Innovation, Fintech and Regulations.”
The speakers include renowned local and international academics and leading industry figures, who have gathered to generate innovative ideas to stimulate the growth of Islamic Finance growth and overcome challenges.


Moon says Kim agreed to allow nuke inspections

In this image made from video provided by Korea Broadcasting System (KBS), South Korean President Moon Jae-in, left, and North Korean leader Kim Jong Un pose after signing documents in Pyongyang, North Korea Wednesday, Sept. 19, 2018. (AP)
Updated 19 September 2018
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Moon says Kim agreed to allow nuke inspections

  • North Korean leader Kim Jong Un and South Korean President Moon Jae-in have started their second day of summit talks in Pyongyang over the nuclear standoff and other inter-Korean issues
  • North Korean leader Kim Jong Un has greeted South Korean President Moon Jae-in upon his arrival in Pyongyang for their third summit this year to improve ties and help resolve the nuclear standoff

SEOUL: North Korea has agreed to “permanently” abolish its key missile facilities in the presence of foreign experts, and is willing to close its main nuclear complex if the United States takes reciprocal action, South Korea’s President Moon Jae-in said on Wednesday.
Speaking at a joint news conference following their summit talks in Pyongyang, Moon and North Korean leader Kim Jong Un said they agreed to turn the Korean peninsula into a “land of peace without nuclear weapons and nuclear threats.”
Kim said he will visit Seoul in the near future, in what would be the first-ever visit to the South’s capital by a North Korean leader.
The latest summit will be a litmus test for stalled negotiations on the North’s nuclear program between Pyongyang and Washington, and for another meeting Kim recently proposed to US President Donald Trump following their historic encounter in June in Singapore.
Moon was seeking to engineer a proposal that combines a framework for the North’s denuclearization and a joint declaration ending the 1950-53 Korean War.
Kim pledged to work toward the “complete denuclearization of the Korean peninsula” during his first encounter with Moon, and at his summit with Trump in June.
But discussions over how to implement the vague commitments have since faltered, with Washington demanding concrete action toward denuclearization by North Korea before agreeing to a key goal of Pyongyang — declaring an end to the war.
North Korea has given no indication it is willing to give up its nuclear arsenal unilaterally and is seeking relief from crippling international sanctions.
North Korea has offered to stop nuclear and missile tests but did not allowed international inspections for a dismantlemnt of its only known nuclear site in May, drawing criticism that its action could not be verified and could be easily reversed.

ART TOUR
US State Department spokeswoman Heather Nauert told a news briefing on Tuesday that Washington hoped the latest inter-Korean summit would bring about “meaningful, verifiable steps toward the denuclearization of North Korea” and called it a “historic opportunity” for Kim to follow through on commitments he made with Trump.
Later on Wednesday, Moon’s delegation will tour the Mansudae Art Studio, the North’s largest producer of art where state artists build statues and produce propaganda at a sprawling complex in Pyongyang.
The institution was sanctioned by the UN Security Council last year as part of global efforts to rein in Pyongyang’s nuclear and missile programs by drying up its revenue sources.
Moon is also scheduled to watch the North’s signature “Brilliant Fatherland” Mass Game which was reintroduced this year following a five-year hiatus, with a formation of glowing drones, lasers and stadium-sized gymnastics shows designed to glorify the country.
The United States is pressing countries to strictly observe international sanctions, which will likely be a key theme when Secretary of State Mike Pompeo hosts a Security Council meeting on North Korea on Sept. 27 on the sidelines of the annual UN General Assembly.

“NEW ERA“
This week’s summit is intended to craft concrete steps to implement the Panmunjom Declaration, named after the border village where they first met, Seoul officials said.
The two Koreas also adopted a separate military accord aimed at preventing armed clashes between the old foes, which are technically still at war because the Korean War ended with a truce, not a peace treaty.
The neighbors have already agreed to withdraw some guard posts and equipment, in a bid to transform the world’s most heavily fortified border into a no-weapons area.
Pyongyang says it has destroyed its main nuclear and missile engine test site, and has halted atomic and ballistic missile tests, but US officials and analysts believe it is continuing to work on its weapons plans clandestinely.
South Korea is pinning high hopes on Kim’s remarks to Moon’s special envoys earlier this month that he wanted to achieve denuclearization within Trump’s first term in office ending in early 2021. Kim at the same time also stressed Washington must reciprocate his initial “goodwill” gestures.
“While Moon has expressed his desire to agree on a concrete plan on denuclearization, we believe that the two nations still differ on this concept,” said Anwita Basu, an analyst at the Economist Intelligence Unit.
In previous, failed talks, North Korea has said it could consider giving up its nuclear program if the United States provided security guarantees by removing troops from South Korea and withdrawing its so-called nuclear umbrella of deterrence from the South and Japan.
US officials involved in the latest negotiations have said North Korea has refused to even start discussions about defining denuclearization. (Reporting by Hyonhee Shin, Joyce Lee and Soyoung Kim; additional reporting by David Brunnstrom in Washington; Editing by Soyoung Kim and Lincoln Feast.)