Pakistan France Business Alliance - PFBA

Nestlé is reinforcing its commitment to Pakistan's renewable energy vision by inaugurating a 2.6 MW solar power plant at its Sheikhupura Factory near Lahore. This initiative is part of Nestlé's PKR 2 billion investment in renewable energy. The solar power plant, completed with an investment of PKR 500 million, is expected to reduce greenhouse gas emissions by 1,857 tCO2e annually.

The 2.6 MW solar power plant at the Sheikhupura Factory was inaugurated by Nestlé's senior leadership, including CEO Jason Avanceña and Regional Managers Zone Asia Oceania Africa Angelo Giardini and Fabrice Cavallin.

Nestlé's investment in the Sheikhupura solar power plant is part of a larger PKR 2 billion commitment to renewable energy in Pakistan. The solar power plant is aligned with Nestlé's efforts to reduce greenhouse gas emissions, aiming to cut 1,857 tCO2e per year. Nestlé has set ambitious emission reduction targets, committing to a 20% reduction by 2025 (compared to a 2018 baseline), halving emissions by 2030, and achieving Net Zero by 2050 in line with UN Sustainable Development Goals (SDGs) 13 and 15.

Prior to the Sheikhupura plant, Nestlé inaugurated a 2.5 MW solar power plant at the Kabirwala Factory near Multan. The company also has plans for biomass boilers at other manufacturing sites in Pakistan as part of its renewable energy investments.

Nestlé's commitment to renewable energy is in line with its broader sustainability initiatives. The company is focused on being a force for good throughout its value chain in Pakistan, contributing to the country's economic growth.

Nestlé has strengthened its localization efforts, with over 90% of raw and packaging requirements sourced locally. The company's four manufacturing sites across Pakistan play a crucial role in providing tasty and balanced diets to millions of Pakistanis.

As Nestlé celebrates 35 years of operations in Pakistan, the company emphasizes its dedication to the future of the country through increased investment in renewable energy and sustainability initiatives. By investing in renewable energy, Nestlé is not only aligning with global sustainability goals but also contributing to Pakistan's efforts to address climate change and promote clean energy.
Pakistan

The Mari Petroleum Company Limited (MARI) has announced a significant gas discovery at the Shewa-2 well in the Waziristan Block, located in the North Waziristan district of Khyber Pakhtunkhwa, Pakistan.

MARI is the operator of the Waziristan Block, holding a 55% working interest. Other joint venture partners include OGDCL (35% working interest) and OPI (10% working interest). The well was drilled to a depth of 4,577 meters on November 01, 2023.
The purpose of drilling was to appraise the Lockhart and Hangu formations, previously discovered at the Shewa-1 exploratory well, and to test the hydrocarbon potential of exploratory targets in the Samanasuk and Kawagarh formations.

A Drill Stem Test (DST) carried out in the Kawagarh formation resulted in gas flow at a sustainable rate of 0.607 million standard cubic feet per day (MMSCFD) at a wellhead flowing pressure (WHFP) of 97 pounds per square inch (Psi) with a 32/64-inch choke size. This discovery is in addition to previously found hydrocarbon-bearing reservoirs in the Lockhart and Hangu formations at the Shewa-1 well.

The Hungu formation was tested at a gas flow rate of 0.274 MMSCFD at a WHFP of 77 Psi with a 32/64-inch choke size. The Lockhart formation in the Shewa-2 well was tested (post-acid) at a gas flow rate of 51 MMSCFD and 391 barrels of condensate per day at a WHFP of 5,972 Psi with a 38/64-inch choke size.
Exploration Success and Previous Achievements:

MARI is an integrated oil and gas exploration and production company.
The company boasts a high exploration success rate of around 70%, significantly surpassing industry averages. In the previous month, MARI successfully drilled and tested a horizontal well in District Daharki, Sindh.

MARI's key customers include fertilizer manufacturers, power generation companies, gas distribution companies, and refineries. This discovery reinforces MARI's position as a major player in the oil and gas sector in Pakistan, contributing to the country's energy resources.

Pakistan Imports & Exports figures with France in US Dollars, according to the United Nations COMTRADE database on international trade.

"As we bid farewell to the past and embrace the future, may the coming year be filled with new opportunities, joy, and growth. May you find success in your endeavors, happiness in your relationships, and the courage to pursue your dreams. Here's to a year of possibilities, learning, and making beautiful memories. "

to all you.....

Pakistan and China have signed several MoUs for a substantial investment of $10 billion in four major export-oriented sectors—textiles, agriculture, food, and car spare parts manufacturing. These joint ventures are expected to contribute to Pakistan's economic growth.

Pakistan is set to dispatch its first shipment of fresh chillies to China, following a protocol signed in October. The goal is to tap into China's annual chilli import market, which amounts to $10 billion. Pakistan plans to export chillies in various forms, including fresh, paste, and powder.

A protocol has been signed for the export of halal meat to China. Pakistan will soon begin shipments of boiled meat to the Chinese market.

During a recent visit to China, the caretaker commerce minister announced that the Chinese government has agreed to provide preferential access to Pakistani agricultural products. A list of these products, with reduced duties under the free trade agreement, is being finalized in consultation with stakeholders.

The China Chamber of Commerce for Import and Export of Textiles (CCCT) has expressed support for increasing textile imports from Pakistan. The goal is to shift 10% of CCCT's textile imports, contributing to an overall increase in textile exports to China.

The commerce minister plans to visit China for further discussions with Chinese investors on January 15. Chinese investors are scheduled to visit Pakistan in February to deepen their engagement with local partners and finalize investment plans in special economic zones.

Under the proposed joint ventures, there will be complete Chinese investment in the textile, food, agriculture, and automobile parts sectors. This is expected to add value to exports to China and other countries.

A protocol has been signed with a Chinese investor for the cultivation of peanuts across 10,000 acres of the Cholistan desert. These peanuts will be grown exclusively for export purposes.

The joint ventures present an opportunity for exporters to gain duty-free access to European markets under the Generalised System of Preferences Plus scheme.

The Ambassador of France to Pakistan, H.E. Nicolas GALEY, and the Caretaker Federal Minister for Finance, Revenue, and Economic Affairs, Dr. Shamshad Akhtar, highlights the commitment of both countries to strengthen their economic relations.

The finance minister emphasized the deep and historical relations between Pakistan and France. Both countries acknowledged the importance of their bilateral ties, particularly in the areas of trade and economic cooperation.

Dr. Shamshad Akhtar briefed the French Ambassador on the economic reforms undertaken by the government, which have resulted in economic and fiscal stability. The successful conclusion of the first review of the Standby Agreement with the International Monetary Fund (IMF) was also highlighted.

The finance minister shared the reform agenda of the interim government, which focuses on economic and fiscal stability. The minister discussed key reforms in various sectors, including State-Owned Enterprises, privatization, forex exchange regime, and reforms in the Federal Board of Revenue.

Dr. Akhtar informed the French Ambassador that the fiscal and current account deficits have narrowed as a result of the government's efforts. The finance minister expressed the interim government's commitment to handing over the economy to the incoming political government in a positive trajectory. This is aimed at ensuring the continuation of economic policies for the benefit of the people.

The French Ambassador acknowledged the stabilization efforts of the interim government through structural economic reforms. He praised the fiscal sustainability achieved and expressed confidence that it would be beneficial for the new incoming political government.

The French Ambassador congratulated the Finance Minister on the successful conclusion of the IMF review and expressed a desire to further enhance bilateral trade and investment ties between France and Pakistan.

Saudi Arabia's state-owned oil company, Aramco, entering the Pakistani fuel retail market by acquiring a 40 percent equity stake in Gas & Oil Pakistan Limited (GO). The key points from the article include:

Aramco has signed an agreement to acquire a significant stake in GO, a major downstream fuels, lubricants, and convenience stores operator in Pakistan. The acquisition is part of Aramco's strategy to strengthen its downstream value chain internationally. Aramco aims to secure more outlets for its refined products and explore new market opportunities for Valvoline-branded lubricants.

The planned acquisition is subject to customary conditions, including regulatory approvals. This aligns with Aramco's effort to adhere to legal and regulatory requirements in its international business ventures. Aramco's Downstream President, Mohammed Y. Al-Qahtani, mentioned that this acquisition is in line with Aramco's downstream expansion strategy, aiming for an integrated refining, marketing, lubricants, trading, and chemicals portfolio globally.

Gas & Oil Pakistan Limited (GO) is described as a diversified downstream company with operations in fuels, lubricants, and convenience stores. It is one of the largest retail and storage companies in Pakistan, operating 1,000 retail outlets across the country. Aramco is highlighted as a global integrated energy and chemicals company, contributing significantly to the world's oil supply and developing advanced energy technologies.

In 2019, Pakistan and Saudi Arabia had signed multiple agreements, including a $10 billion deal for the Aramco oil refinery and a $1 billion deal for a petrochemical complex project in southwest Pakistan. The acquisition news coincides with Shell Pakistan's decision to sell its domestic operations to Saudi Arabia's Wafi Energy. Shell Global had previously announced its exit from Pakistan in June.
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The 'Make in Pakistan' initiative, as reported, is a significant step by the government to attract major international brands to Pakistan. The decision to allow these brands to increase sourcing with local enterprises in joint ventures is a strategic move to enhance economic partnerships and stimulate growth in the country.

The plan to incentivize international brands' physical presence in Pakistan, including providing office spaces for their business outlets, demonstrates the government's commitment to creating a favorable environment for foreign businesses. The use of upfront financing from the Export Development Fund (EDF) to cover initial costs is a proactive measure to facilitate the entry of these global brands into the Pakistani market.

The statistics regarding sourcing from Pakistan compared to other countries, particularly in the context of the US-China trade war, highlight the potential opportunities for Pakistan. The shift in the US fashion industry's sourcing strategy from "China plus Vietnam plus many" to "Asia plus Rest of the World" provides a window for Pakistan to become a preferred sourcing base.

The 'Make in Pakistan' roadshow planned in Germany and other international cities is a strategic move to showcase Pakistan's export capacity and capability. Targeting high-priority international firms for sourcing purposes, such as Nike, Walmart, and H&M, among others, reflects a focused approach to attracting key players in the global market.

By positioning itself as an attractive alternative to China and other sourcing destinations, Pakistan's textile and apparel industry leaders aim to capitalize on the changing dynamics in the global supply chain. The roadshows and networking events present valuable opportunities for Pakistani businessmen to establish connections and partnerships with international industry leaders.

Dr. Riina Kionka, Ambassador and Head of the Delegation of the European Union to Pakistan, highlight the positive outlook on Pakistan as a potential market for business and investment activities.

Dr. Kionka emphasized that Pakistan is seen as a potential market for business and investment activities, indicating the European Union's interest in the country's economic potential.

The ambassador suggested that Pakistan should focus on implementing sustainable economic policies to attract more foreign investment. Sustainable economic practices are increasingly becoming a priority for investors globally.

Dr. Kionka noted that the European Union is the biggest export destination for Pakistan. This highlights the importance of the EU market for Pakistani exporters.

The ambassador encouraged Pakistani exporters to take full advantage of the EU's Generalized System of Preferences (GSP) Plus, which allows certain countries to export their products to the EU with reduced or zero tariffs.

The EU expressed support for Pakistan's integration into the global economy by fostering bilateral trade, promoting direct investment, and supporting institution building.

Dr. Kionka mentioned the EU's plans to expand its dialogue and cooperation with Pakistan in addressing energy issues, indicating a broader scope of collaboration beyond trade and investment.

Ahsan Zafar Bakhtawari, President of the Islamabad Chamber of Commerce & Industry, urged the EU to import more textile products from Pakistan. He emphasized that this could contribute to boosting industrialization in Pakistan and reviving the economy.

The president expressed gratitude for the extension of the EU's GSP Plus scheme until 2027, anticipating that it would create new opportunities for Pakistani exporters.

The president mentioned that the Securities and Exchange Commission of Pakistan (SECP) is working to create a conducive environment for foreign investors, encouraging more EU investors to explore business and investment opportunities in Pakistan.

The leaders from the Islamabad Chamber of Commerce & Industry expressed interest in promoting regional trade in South Asia and suggested that the EU share its experience in building a strong regional trading bloc.

Zafar Bakhtawari suggested that EU countries should initiate direct flights with Pakistan to facilitate the promotion of bilateral trade and exports, emphasizing the importance of improved connectivity.

The Asian Development Bank (ADB) has approved three projects totaling $658.8 million to support Pakistan's goals of achieving more inclusive and sustainable growth and development. These projects aim to address various aspects, including improving domestic resource mobilization, rehabilitating schools damaged by the 2022 floods, and enhancing agricultural productivity to improve food security.

Improved Resource Mobilization and Utilization Reform Program:

A $300 million policy-based loan to support the government's ambition of achieving sustainable, broad-based, and inclusive economic growth. Focus on laying the foundation for reforms in policies, laws, and institutional capacity to improve domestic resource mobilization and utilization. Transformation of tax administration, public expenditure management, and other institutional structures to strengthen resource mobilization, including non-debt resources such as private investment and savings.

Sindh Secondary Education Improvement Project:

Additional financing of $275 million emergency assistance loan as part of ADB’s $1.5 billion pledge of support for Pakistan’s recovery from the 2022 floods. Reconstruction of up to 1,600 flood-damaged schools using disaster- and climate-resilient and gender-responsive designs. Boost resilience and inclusivity in the education system, especially for girls in the most disadvantaged and vulnerable districts of Sindh.
$800,000 technical assistance grant to plan and monitor the reconstruction status of all flood-damaged schools and provide implementation support.

Khyber Pakhtunkhwa Food Security Support Project:

A concessional loan of $80 million, part of ADB’s $1.5 billion pledge of support for Pakistan’s recovery from the 2022 floods. Addressing climate vulnerabilities, enhancing food security, and boosting the livelihoods of rural farm households in the most flood-damaged districts in Khyber Pakhtunkhwa. Providing essential agriculture inputs and training to smallholder farmers, with a focus on women. Enhancing digital access and availability, especially regarding market opportunities and climate information. Administration of a $3 million grant for the project from the Japan Fund for Prosperous and Resilient Asia and the Pacific to finance activities for women farmers related to seed cleaning and safer handling of agrochemicals.

The Director General for Central and West Asia at ADB, Yevgeniy Zhukov, emphasized the multifaceted approach as part of ADB’s strategic engagement in Pakistan to enhance support for the country's efforts in economic development and improving the quality of life for its people. These projects aim to contribute to Pakistan's recovery from the impacts of the cost-of-living crisis and floods, fostering long-term, sustainable, and inclusive development.

The announcement of "Recharge Pakistan" at the COP-28 summit in Dubai. This initiative, led by Prime Minister Anwarul Haq Kakar, represents a significant step towards using nature to adapt to climate change and underscores the importance of ecosystem-based adaptation and green infrastructure.

The allocation of $77.8 million in grants for "Recharge Pakistan" is a substantial investment, with contributions coming from various sources. The breakdown of funding includes $66 million from the Global Climate Fund, $5 million from USAID, $5 million from The Coca-Cola Foundation, and $1.8 million from WWF. This diversified funding approach reflects a collaborative effort from both international and private entities, emphasizing the shared responsibility in addressing climate change challenges.

The focus on placing communities at the center of climate and resource management decision-making is crucial for the success and sustainability of such initiatives. By empowering local communities, "Recharge Pakistan" aims to not only mitigate the impacts of climate change but also foster resilience and sustainable development.

It will be interesting to see how "Recharge Pakistan" unfolds over the next seven years and the positive impact it will have on the country's ability to adapt to climate change.

The European Union (EU) Head of Trade, Mr. Piotr Buszta, made his inaugural visit to Karachi, where he engaged with various EU bilateral forums and chambers. These forums included the Pakistan, Belgium, Luxembourg, and Germany Pakistan Chamber of Commerce and Industry, as well as the Pakistan-France Business Alliance. During these meetings, Mr. Buszta exchanged views on EU-Pakistan trade relations.

In his discussions, Mr. Buszta expressed a commitment to maintaining an ongoing dialogue with EU businesses. The objective is to enhance and fortify the terms of trade between the European Union and Pakistan. This visit signifies a dedication to fostering stronger economic ties and collaboration between the EU and Pakistan.

The engagement between the EU Head of Trade and these bilateral forums and chambers highlights the importance of open communication and cooperation in the realm of international trade relations. This effort is aimed at promoting mutual benefits and creating a conducive environment for economic partnerships between the European Union and Pakistan.

NADRA Pakistan takes the global stage at TRUSTECH2023 in Paris, France highlighting Pakistan’s prowess amidst a gathering of industry professionals dedicated to identification solutions

An invaluable opportunity to showcase Pakistan’s cutting-edge innovations in identity solutions, with Team NADRA engaging with experts from the Cards and Digital Trust technologies industries, as well as visitors from across the globe.

TRUSTECH has become a consistent fixture in NADRA's Calendar , serving as a dynamic platform for collaboration. The event brings together tech innovators, smart card industry leaders, and representatives from financial and governmental institutions of 97 countries 🌍.

According to the State Bank of Pakistan (SBP), Pakistan's exports to seven regional countries, including Afghanistan, China, Bangladesh, Sri Lanka, India, Nepal, and the Maldives, increased by 14.21% in the first four months of the fiscal year 2023-24 compared to the same period in the previous year. The total exports to these regional countries amounted to $1,443.868 million, constituting 14.76% of Pakistan's overall exports, which were $9,776.912 million during July-October 2023-24.

China is the top destination for Pakistan's exports among these regional countries, surpassing others such as Bangladesh and Afghanistan. Pakistan engages in border trade with Sri Lanka, India, Nepal, and the Maldives.

Here is a breakdown of Pakistan's exports to these regional countries:

1) China: Exports increased by 40.36% to $952.216 million from $678.386 million in the corresponding period of the previous year.

2) Afghanistan: Exports rose to $180.686 million from $176.019 million.

3) Bangladesh: Exports decreased by 34.73% to $192.193 million from $294.499 million.

4) Sri Lanka: Exports increased by 2.68% to $114.473 million from $111.489 million.

5) India: Exports decreased to $0.069 million from $0.110 million.

6) Nepal: Exports increased by 10.91% to $1.138 million from $1.026 million.

7) Maldives: Exports increased by 17.87% to $3.093 million from $2.624 million.

Meanwhile, the imports from these seven regional countries amounted to $3,855.354 million during the same period, showing a decline of 9.48% compared to the imports of $4,259.578 million in the corresponding period of the previous year.