Marking its 70th anniversary of relations with Egypt, Pakistan takes CPEC to Cairo

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The Egyptian-Pakistani Forum kicked off its activities on Monday in Cairo, marking the 70th anniversary of the beginning of relations between the two countries. (Arab News photo)
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The Egyptian Minister of Planning Hala Al-Saeed speaking in the conference. ( Arab News photo)
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Federal Minister for Planning and Development Khusro Bakhtiar speaking during the conference. ( Arab News photo)
Updated 25 September 2018

Marking its 70th anniversary of relations with Egypt, Pakistan takes CPEC to Cairo

  • South Asian Strategic Stability Institute (SASSI) in Islamabad has organized two-day conference in Egypt
  • The conference explores economic opportunities under the CPEC

CAIRO: The Egyptian-Pakistani Forum has kicked off its activities on Monday here, marking the 70th anniversary of the beginning of relations between the two countries.

The conference is organized by the South Asian Strategic Stability Institute (SASSI) in Islamabad for two days (Sept. 24-25).

Dr. Maria Sultan, the SASSI’s director general, inaugurated the conference.

The Federal Minister for Planning and Development Khusro Bakhtiar, Pakistan’s Ambassador to Egypt Mushtaq Ali Shah and other representatives from Egyptian and Pakistani ministries, including the Egyptian Minister of Planning Hala Al-Saeed, attended the conference inauguration.

“Pakistan has been and will continue to be supportive of investments in Egypt, especially in the Suez Canal region, and we are happy to partner with a pivotal country in the region and the world,” said Minister of Planning and Development Makhdoom Bakhtiar in his opening remarks.

He added: “Egypt is a promising country and the legislative environment for investments is ready to attract more projects. Pakistan has always provided a helping hand to its brothers from the Islamic world to make a continuous partnership in several fields.”

In spite of the economic investment orientation of the Forum, the issue of the war on terror was present.

Bakhtiar stressed the priority Egypt puts in the fight against terror and in bringing national security. He added that Pakistan had also had problems with terrorism for many years, and praised the Pakistani minister in Egypt for continued understanding and cooperation in the matter.

The Egyptian Minister of Planning Hala Al-Saeed expressed her happiness about this cooperation between Egypt and Pakistan. She stressed that the forum represents an important platform for dialogue and cooperation between the two countries, and that they are keen to promote and develop bilateral relations in various fields, and to elevate these relations to broad horizons.

The Egyptian minister discussed investment opportunities in Egypt, especially in the Suez Canal area, and concluded her participation in the opening session by saying: “Long live Egypt. Long live Pakistan.”

The establishment of official diplomatic relations between the two countries began in 1948. Egypt was the first country in the Middle East to open an embassy in Pakistan after its independence.

However, despite the existence of a contractual and institutional framework, the results and outcome of the cooperation is limited as the volume of trade exchange between the two countries was $231 million in 2017. This shows co-investment between two countries does not reflect the standard of relationship and resources the countries have, whether it be human resources or otherwise.

This conference is exploring economic opportunities mainly due to the China-Pakistan Economic Corridor, which is part of China’s Belt and Road Initiative The project, unveiled by President Xi Jinping in 2013, aims to increase a number of land and sea links within Southeast Asia, Central Asia, the Middle East, Europe and Africa.

“Trade through the Indian Ocean is expected to rise with the emergence of China as a global economic superpower,” said a SASSI statement.

Head of the Commercial Representation Authority Ahmed Antar said that the conference comes at an important time to enhance the partnership between the two, pointing out that the Suez Canal and the port of Gwadar in Pakistan are two of the most important ports on the Silk Road, and represent a huge opportunity to enhance cooperation between Egypt and Pakistan in the fields of trade, especially with the amount of traffic expected to hit the two ports in the coming years.

He added that Egypt and Pakistan enjoy huge advantages that enable the two countries to achieve great growth and economic integration. Egypt occupies a distinguished geographic location between the continents of Asia and Africa, and Pakistan is located in the heart of Asia. The Egyptian Government seeks to enhance cooperation with Pakistan, especially in the fields of telecommunications, insurance, information technology and international trade.

The conference program includes sessions in the fields of navigation, logistics and transportation, natural resources, banking and finance, trade and supply chains, and women’s role in trade, as well as sessions for small-to-medium enterprises and media.

The conference is to be held by a group of ministers and senior representatives of the Pakistan Government, including members of the Ministries of Planning and Development, Navigation Affairs, Petroleum and Mineral Resources, Finance, Science and Technology, Commerce, Information, and Industry and Production. There will also be a large number of speakers and representatives of various government agencies, the Central Bank and Pakistani banks.

The Egyptian side also includes representatives from the Ministries of Commerce and Industry, Investment and International Cooperation, Petroleum, Communications and Information Technology, the Central Bank of Egypt, the Financial Supervision Authority and the Suez Canal Economic Zone.

Saudi Arabia's road to green energy

Updated 1 min 30 sec ago

Saudi Arabia's road to green energy

DUBAI: Saudi Arabia marked World Energy Day on Monday with an accomplishment: it has jumped one spot on the Arab Energy Efficiency Index in the past two years. Developed in partnership with the United Nations Development Program (UNDP) and the Regional Center for Renewable Energy and Energy Efficiency, the index is the first native Arab index dedicated to monitoring sustainable energy competitiveness in the region.

The index is also said to help accelerate the implementation of energy efficiency activities in the region. “The entry into force of the Paris Agreement on Climate Change and the Sustainable Development Goals (SDGs) has helped raise issues of climate change and sustainable energy up the policy agenda,” said Khaled Abdelshafi, director at the UNDP regional rub for Arab states in the region.
“A series of new sustainable energy strategies have arisen in recent times, meant to reduce the energy intensity of growth and enhance the resilience of development. In the Arab region, low-carbon, sustainable energy can play an important part of recovery from crisis, reducing poverty, expanding education and improving health outcomes.”
Based in Cairo, the inter-governmental Regional Center for Renewable Energy and Energy Efficiency works within the region with 17 member states, including Saudi Arabia and the UAE, among others.
“We built our work on the knowledge that we gained throughout our work partnering with our countries, leading the region towards sustainable development through the energy sector,” said Rawad Rizk, the center’s sustainable energy specialist. “Our mission is to be aligned with international practice and driving the energy transition to contribute to a better life for our people.”
Focusing on new trends in the market, the center works on different topics ranging from the environment, climate change, standardization services, policy support as well as knowledge management, private sector support and the social and economic impact of projects related to renewable energy and energy efficiency.
“Within the pan-Arab energy guidelines, which we started in 2009, we asked countries to start working on their national energy efficiency action plans,” he said. “This work has been grown and developed in a way that we created this system, and the pan-Arab sustainable energy strategies will be finalized very soon, including renewable energy, energy efficiency and energy access. The reporting mechanism is vital to monitor progress and to always track a way towards the targets designed.”
Countries were ranked in the index based on their development in renewable energy and energy efficiency, energy prices, policy frameworks as well as strategies and action plans. “In terms of primary energy consumption, the Arab region is still very heavily dependent on fossil fuels, where oil and gas make up more than 98 percent of that consumption,” Rizk explained. “When we look at energy and electricity consumption per capita in the region, GCC countries are among the top consumers, mainly due to the high energy subsidies, high oil and gas reserves and high income.”
He used Tunisia as a prime example for energy efficiency, where consumption is relatively low compared to the Gulf. The country also aims to reduce energy consumption by 17 percent by 2020 and 30 percent by 2030.
For the Gulf, greenhouse gas emissions proved to be a significant issue, with countries such as Kuwait, Qatar, Saudi Arabia and the UAE holding the highest regional levels per capita. Qatar emitted the highest worldwide in 2013 at 37.8 metric tons per capita, while the Kingdom reached 17.1 metric tons per capita.
The report identified an energy mix almost completely based on fossil fuels. “Greenhouse gas emissions in the Arab region increased by around a gigaton in the last 15 years, and increased at a fast rate of around 5.3 percent a year,” Rizk said. “On the other hand, Tunisia witnessed relatively slower growth in greenhouse gas emissions, around 3.4 percent per year.”
Energy subsidies, including electricity and fuel, remain a significant barrier for consumers in terms of energy efficiency investment in the region. “They’re very expensive throughout the region, especially in the Gulf,” he added. “But nonetheless, the region did witness an unprecedented wave of subsidy reforms, especially after 2013. Most subsidies are found in oil-exporting countries and reforms increased between 2016 to 2017 from six to 11 countries, which is unprecedented in the Arab region.”
Almost all 20 Arab countries surveyed witnessed an increase in electricity peak demand by more than 10 percent from 2013 to 2016. Nuclear energy is said to help meet that rising demand in the future, with Saudi Arabia planning to build 16 nuclear power plants with a total output of 17 gigawatts by 2032.
Rizk spoke of the importance of developing and implementing energy efficiency strategies. “The key element studied is the availability of governments to have a clear intent and commitment for energy efficiency improvement, a long-term focus on an energy efficiency objective, as well as a dedicated energy efficiency agency for planning and designing measures in the field, while having dedicated funds to reaching those targets,” he explained.
“As of 2017, 15 of 20 Arab countries developed or are implementing national energy efficiency action plans and 17 have dedicated energy efficiency agencies or units in their ministry.”
Overall, the Kingdom is halfway there, having ranked 10th out of 20 countries, following Tunisia, Jordan, Morocco, the UAE as well as Palestine, Egypt, Lebanon, Algeria and Bahrain. Its total score was 50 percent, based on scores in other categories such as 16 percent in energy pricing, 60 percent in policy framework (energy planning), 70 percent in institutional capacity (the ability to implement the policies) and 58 percent in utility (the efficiency of power generation, transmission and distribution systems).
“As with several other Arab countries, Saudi Arabia’s energy efficiency efforts indicate slow but positive signs of progress and improvement,” read the report. “Energy prices are heavily subsidized, with Saudi Arabia having some of the lowest gas and diesel prices in the Arab region. Thus, a reduction in energy subsidies is a vital area for improvement.”
It noted two significant advancements in terms of energy efficiency scoring in the country. The first is the adoption of its National Energy Efficiency Program (NEEP), and the second is the implementation of the Kingdom’s broad-sweeping plan Vision 2030, which has an integral component on energy sustainability. “These two initiatives have greatly improved energy planning in Saudi Arabia, which previously scored well below the regional average in the 2015 index.”
As Saudi Arabia and Egypt are the two highest electricity consumers in the Arab region, consuming nearly 47 percent of the region’s total electricity, energy efficiency initiatives are an important opportunity for energy saving in the lighting sector. What’s more, the GCC is expecting a 7.3 percent growth rate increase in the market for air conditioning, especially as the region prepares to hold Expo 2020 Dubai and the 2022 FIFA World Cup in Qatar.
“The biggest thing Saudi did was the strategy as well as energy labelling,” Rizk said. “They have a dedicated energy efficiency agency, which is the Saudi Energy Efficiency Center, and they discouraged inefficient appliances, when they banned all inefficient air conditioning. They also have very rigorous energy efficiency awareness campaigns.”
According to the Kingdom’s NEEP, the country is planning a 30 percent reduction in electricity intensity between 2005 and 2030. In 2008, eight priority objectives were defined in the program, including energy audit services and industry support, efficient use of oil and gas, energy efficiency labels and standards for appliances, constructions codes, training and public awareness.
The NEEP currently focuses on four outcomes, including regulation, with the design of the first Energy Conservation Law as well as national and regional regulations; and information, with a new national database on energy supply and demand, as well as public awareness on energy conservation.