Reaffirming the time-tested and unparalleled relations between the peoples and the governments of the two brotherly countries that are embedded in a common historical, religious and cultural heritage;
Recalling the historic bonds between the peoples of the two regions, manifested through the legendary support provided by the Muslims of South Asia to their Turkish brethren in early 20th century as well as the resolute support provided by Turkey to the people of Pakistan in the face of all challenges;
Emphasizing that the fraternal relations between Pakistan and Turkey are a sacred trust, that must be protected, nurtured and transmitted onwards to successive generations as common heritage;
Reiterating their resolve to transform this fraternal relationship into an ever-expanding, mutually beneficial, strategic partnership;
Underlining the importance and centrality of Turkey-Pakistan High-Level Strategic Cooperation Council (HLSCC) mechanism in expanding Turkey-Pakistan bilateral relations;
Welcoming the finalization of the landmark Pakistan-Turkey Declaration of Strategic Economic Framework (SEF) and Action Plan;
Reiterating their common resolve to fight the scourge of terrorism in all its forms and manifestations; underscoring the need for addressing the root causes of terrorism, including by resolving prolonged conflicts and ending situations of foreign occupation; reaffirming that terrorism cannot and should not be associated with any religion, nationality or civilization; and calling for extending the scope of the UNSC 1267 sanctions regime to individuals and entities currently outside its ambit.
Expressing deep concern at the rising tide of Islamophobia, and condemning in the strongest terms the recent terrorist and racist attacks against Muslims across the globe;
Recalling all the previous Joint Declarations signed between the two sides under the framework of Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), and the decisions made therein;
Having endorsed the outcomes of the meetings of the respective Working Groups of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC) held on 13 February 2020 and expressing satisfaction at the progress achieved therein;
We, the Co-chairs of the 6th Meeting of the Pakistan-Turkey High-Level Strategic Cooperation Council (HLSCC), held in Islamabad, on 14 February 2020 have agreed as follows:
Bilateral institutional mechanisms:
The High-Level Strategic Cooperation Council (HLSCC) shall continue to be the main political forum that guides bilateral relations in all fields with an effective and expeditious follow-up on its decisions.
The two sides will review, update and amend, as appropriate, the agreements, protocols and MOUs signed under the umbrella of the HLSCC, in order to streamline their implementation.
The ongoing consultations between the Ministries of Foreign Affairs of the two countries shall be further intensified and their scope broadened to new areas.
Fight against terrorism:
Being victims of terrorism themselves, both countries will continue to cooperate in the fight against this scourge, including through the exchange of best practices and experiences in the area of law enforcement, legislation, capacity building and strengthening of the respective AML/CFT regimes.
The two sides reiterate their resolve to fight against the Fetullah Gulen Terrorist Organization (FETO). In this regard, Turkey notes with appreciation the measures taken by Pakistan against FETO in line with its domestic law, through inter alia designation of FETO as a terrorist organization, and handing over of all linked schools to the Turkish Maarif Foundation.
The two sides will continue to cooperate at all international forums, in particular at the United Nations and relevant inter-governmental organizations, to make international counter-terrorism and AML/CFT regimes more transparent, apolitical, non-discriminatory and objective, as well as to counter laws or administrative measures discriminating against and stigmatizing Muslims.
The two countries will work closely to combat Islamophobia, hate speech, efforts to link terrorism with Islam, and other manifestations of intolerance towards Muslims, including stereotyping of Muslims.
Joint initiatives will be taken to counter stereotyping and defamation of Islam and Muslims, including incitement to acts of violence, xenophobia, and related intolerance and discrimination against Islam, its religious symbols, and venerated personalities, by means of print, audio-visual & electronic media, the Internet, as well as entertainment media such as movies, videos and digital games.
The two countries note with appreciation the UN Secretary General’s Strategy and Action Plan on Hate Speech and call for convening a special session of the UN General Assembly on measures to combat Islamophobia;
Both sides also call for establishment of an observatory under the auspices of OHCHR (or any other relevant UN body/authority) to monitor acts of hate speech, Islamophobia, incitement to hatred and violence against Muslims;
The two countries call on the UN Human Rights Council to appoint a Special Rapporteur to monitor and combat Islamophobia.
Regional and international issues:
The unilateral actions by India on 5 August 2019, as well as the further deteriorating human rights and humanitarian situation in the region as a result of these actions, have further increased regional tensions, and, the situation must, therefore, be urgently addressed for regional as well as global peace and security.
The two sides underscored need for resolution of all outstanding disputes between Pakistan and India, including the core issue of Jammu & Kashmir through a sustained dialogue process and in accordance with the relevant UN Security Council resolutions. In this regard, Pakistan expresses its deep appreciation for Turkey’s principled stance on the issue as well as its offer for mediation.
Sustainable peace and stability in Afghanistan can only be achieved through an Afghan-led and Afghan-owned peace process. Turkey appreciates Pakistan’s support to the Afghan peace process. Pakistan supports Turkey’s efforts in achieving these objectives and welcomes the Istanbul Declaration adopted at the Heart of Asia Ministerial Conference, held on 11 December 2019.
The two countries reiterate full and resolute support for the efforts towards the comprehensive settlement of the Cyprus issue on the basis of the political equality of the two communities on the Island, and with a view to building peace and stability in the Eastern Mediterranean;
Both sides noted with concern the trend towards exceptionalism and sidelining of non-proliferation objectives. This trend is regarded as detrimental to the credibility of the global non-proliferation regime and, in this regard, also to the strategic stability in South Asia.
Turkey appreciates Pakistan’s strong commitment to non-proliferation and its adherence to the Nuclear Suppliers Group’s (NSG) Guidelines. Turkey recognizes that as a country with an extensive experience in this area, Pakistan’s membership of the NSG will contribute to the global non-proliferation objectives.
The United Nations Security Council needs to be made more representative, democratic, transparent, and accountable through comprehensive UN Security Council reform process, based on widest possible consensus. In addition, the need for the implementation of relevant UN Security Council resolutions to resolve the long-standing disputes on the agenda of the Security Council, especially those pertaining to the Muslim Ummah, is underlined;
Cooperation at the multi-lateral forums:
The two countries shall continue to cooperate and coordinate at regional and international forums, particularly the United Nations, the Organization of Islamic Cooperation (OIC), the Economic Cooperation Organization (ECO), and the D-8 Organization, etc. through, inter alia, mutual support for joint initiatives, policies and candidacies.
The two countries agree to work together bilaterally as well as at the global forums to address threats posed by the adverse effects of climate change; and explore avenues to enhance cooperation with regard to implementation of Sustainable Development Goals (SDGs).
The two countries shall continue to work closely to address irregular migration and agreed to further develop cooperation on irregular migration and to combat human trafficking and migrant smuggling. Turkey acknowledges and notes with appreciation the measures being taken by Pakistan towards implementation of the Agreement on the Readmission of Persons Residing without Authorization as well as facilitation with regard to provision of documents of irregular migrants exiting from Turkey.
Security and Defence Cooperation
The two sides agreed to:
- further intensify and expand cooperation in the defence and security spheres, including by sourcing their defence purchases from each other to the extent possible, and prioritizing joint research, development and production ventures.
- work for global disarmament, non-proliferation objectives, safeguarding and strengthening international as well as regional security and promoting strategic stability, including in each other’s respective regions.
- enhance cooperation between the law enforcement institutions, departments and agencies of both countries through, inter alia, training activities and sharing of best practices, information, experiences and expertise, etc.
- cooperate through relevant counter-terrorism institutions to develop methods and avenues of cooperation in keeping with the evolving nature of the threat, including in the areas of cyber-terrorism and cyber-crime.
Both countries agreed to:
- Enhance cooperation in human capacity building, especially in the fields of human safety, management of the distribution systems and senior management training modules.
- That the Turkish experience and expertise in human resource development and the expertise would be utilized to upgrade and improved Pakistan’s electricity sectors institutional framework, curriculum, and modules at different levels.
- Cooperate in the capacity building of National Energy Efficiency and Conservation Authority (NEECA) Pakistan.
- Enhance investment opportunities in the power transmission and distribution sectors of Pakistan.
- Enhance cooperation in the field of hydrocarbons, especially in oil and gas exploration and production projects, supply and trade of LPG and petroleum products.
- Creation of a joint monitoring group of the Ministries of Energy that would meet at least once a year to review the progress against the decisions made in this joint working group.
Trade and Investment
Both sides reviewed the existing bilateral trade and agreed to increase the level of economic engagement to mobilize the untapped potential for increasing trade and investment.
Both parties agreed to conclude the FTA with the broader purpose of increased economic and trade integration and as per the “Joint Declaration on Pakistan-Turkey Strategic Relationship for Peace and Prosperity” made during the 5th meeting of Pakistan – Turkey High Level Strategic Cooperation Council held on 22-24 February 2017 under which both sides agreed that the “Free Trade Agreement negotiations will be conducted taking into consideration the sensitivities of economies of both countries.”
In this regard, both sides have also agreed to conduct and finalize a Joint Scoping Study by end of March, 2020 which would identify potential sectors where opportunities are not being exploited at present. This Study would form the basis for future roadmap of Pakistan Turkey FTA negotiations.
In the light of above and the progress achieved in the Joint Scoping Study, both sides would consider reinitiating negotiations on Pakistan Turkey FTA in the second quarter of 2020.
Both sides agreed to encourage their businessmen to establish Joint Ventures in industrial sectors and cooperate in the field of e-commerce.
Banking & Finance
Both sides discussed the proposed credit line facility of USD 350 million for implementation of eligible projects in Pakistan. A draft MoU was shared by Pakistan with their counterparts from Turkey. The Turkish side agreed in principle to consider the proposal for extending credit facility of USD 350 million to Government of Pakistan on terms mutually agreed between the two sides. In this regard, both sides agreed to formulate the draft MoU through mutual consultations by the end of May 2020.
Both sides agreed to encourage their banking sectors to enhance cooperation in banking and finance for promotion of trade and investment between the two countries and facilitate each other for opening bank branches on reciprocal basis.
Both sides expressed their mutual desire to enhance bilateral cooperation between their Central Banks by initiating a dialogue with a view to finalize an MoU on Technical Cooperation and Renewal of the Currency Swap Agreement (CSA).
Both sides agreed to enhance technical cooperation in the following fields:
- Establishment of a Communication Line Between Credit Guarantee Institutions of Both Countries for SME Promotion.
- Public Debt Management, Cash Management and Risk Management.
- Development of Housing and Housing Finance Industry in Pakistan
- Public Private Partnership Framework
In this regard, Pakistan shared draft MoUs/Protocols with Turkish side. The Turkish side agreed to respond within due course of time.
Both sides agreed on knowledge sharing and mutual technical assistance in the areas of Risk Based Approach for Supervision on anti-money laundering, misuse of payment system including new payment method, UNSC sanctions regime, money laundering and terrorist financing typologies.
Both sides agreed on cooperation for capacity building in the areas of Islamic Banking, Project Management, Taxation, Strategic Planning, Sectoral Planning & Development and other areas of mutual interest.
Pakistan appreciated the endeavors made by Turkish International Cooperation & Development Agency (TIKA) for implementing small grant projects in social sectors in Pakistan and assured them of continued cooperation.
Transport and Communications Cooperation
The two sides agreed to:
- Implement bilateral agreements in all the modes of transport i.e. Road, Rail, Sea and Air, as a step towards promoting bilateral trade and cooperation between the two countries.
- Devise all required mechanisms for boosting activities in various fields of Communications & Transport Sector including Roads, Rail, Air, Sea, Postal and IT & Telecom to their full potential by utilizing all available options.
- Enhance their commitment in the implementation of bilateral and multilateral Transport Agreements. Turkey appreciated and welcomed Pakistan’s Accession to International UN-TIR Convention 1975 and CMR Convention that has paved the way of harmonizing Pakistan’s procedures and standards with the globally accepted and recognized guaranteeing mechanisms.
- Both sides decided to organize a pilot run of at-least 10 trucks on Islamabad-Tehran-Istanbul (ITI) Road Corridor by June 2020 in consultation with the Transport Associations of both sides under framework of already signed bilateral Road Transport Agreement. This will further boost the bilateral cooperation and trade activities between the two countries.
- Consider participation in potential projects of highways and motorways of Pakistan by Turkish companies on BOT/Public Private Partnership basis.
- Both sides agreed to explore the possibilities of joint cooperation in railway sector mainly in the areas of business planning, management, railway operations, railway infrastructure, IT & Technology in railways, capacity building etc., in addition to manufacturing, rehabilitation, maintenance and repair of locomotives, freight wagons and passenger coaches in the framework of MoU which has been signed at High level Strategic Cooperation Council. This has also been reflected in the Strategic Economic Framework. Both sides affirmed to proactively engage in promoting joint cooperation in railways.
- The Turkish side agreed to explore the possibility of Pakistan’s proposal for the renewal of MoU between Pakistan Railways & Union of Chamber of Commerce and Commodity Exchange (TOBB) through its logistic company BALO.
- The two sides recognized the significance of ITI train for integration of the region with Europe and beyond. The two sides agreed to take measures necessary for resumption of ITI train operations at the earliest.
- Pakistani side also encourages Turkish companies to participate in the biding process of potential railways projects funded through own resources and BOT/PPP basis.
- Collaborate in the field of (a) international and local remittance and IT innovative services between Turkey and Pakistan, (b) Express and Logistic Services and E-commerce through Postal Network to enhance cooperation in ICT based postal services between the two countries.
- Cooperate and exchange of experiences and collaboration in Maritime Education & Trainings, Maritime Trade and Port Management. The geographical location of the Izmir Port of Turkey and Karachi Port need to be utilized to harmonize each other’s capabilities for an effective trade and cargo handling.
- Both sides may finalize the Annex-I of the MoU signed in 2015 with a view to further deepen the bilateral ties in the field of aviation. It was further agreed to discuss the traffic rights and frequencies between the two brotherly nations during a forthcoming meeting in Turkey at the invitation of Turkish side as per mutually agreed schedule.
Culture and Tourism Cooperation
Both sides agreed to:
- Organizing the 4th meeting of Turkey-Pakistan Joint Commission on Tourism.
- Promoting the regular exchange of media delegation.
- Cooperation in the area of Information, Culture, Tourism, Film and drama to further strengthen people to people interaction and brotherly relations with the two countries.
- Initiate Joint-ventures in film production and release of feature films in each other market on reciprocal basis.
- Enhance cooperation between TRT and PTVC/PBC in order to exchange programs, information and expertise on a reciprocal basis.
- Cooperation on restoration of cultural heritage.
- Encouraging joint initiatives for the development, planning and standardization of tourism attractions in Pakistan.
- Providing technical information and support on promotion and marketing in the field of tourism.
- Exchange of culture groups and tourist festivals within the framework of reciprocity.
- Exchange expertise in the fields of archaeology as well as conservation and restoration of archaeological and historical sites as well as museums.
Both sides agreed on the following by taking into account the applicable legislation of both countries within the bounds of financial and personnel resources:
- Promoting exchanges between universities, technical and vocational institutes and other academic institutes and in this regard continue collaboration on higher education scholarships.
- Promoting the relationship between the Technical and Vocational Training Institutes Schools of Turkey and Pakistan through International Sister Schools practice.
- Sharing of curricula and qualification standards to assist Pakistan in standardization and modernization of its TVET sector.
- Exploring possibilities of training Pakistani TVET teachers in Turkey and in Pakistan to ensure Pakistani TVET teachers acquire modern skills and help them improve the quality standards.
- TIKA will be preparing to establish Centre of Excellence of Hospitality and Tourism management in Islamabad in collaboration with NAVTTC
- Cooperate in the field of curriculum development.
Both sides agreed to finalize the ongoing negotiations on Memorandum of Understanding between Ministry of Federal education and Professional Training and Turkish Maarif Foundation in the second quarter of 2020.
Both sides agreed to start negotiations in the second quarter of 2020 and finalize as soon as possible the Cooperation Agreement in the field of Education between the Government of the Republic of Turkey and the Government of the Islamic Republic of Pakistan. The date and place of negotiation will be mutually decided through diplomatic channels.
The two leaders decided to establish two more Joint Working Groups on:
- Defence Industry
- Agriculture and Water
The Joint Working Groups of the High-Level Strategic Cooperation Council shall continue their work to develop specific programmes and projects.
In this regard, the Joint Working Groups, will meet before the meetings of the High-Level Strategic Cooperation Council at least two times in Ankara, in Islamabad, or through video conference.
The next meeting of the High-Level Strategic Cooperation Council shall be held in Ankara. The dates shall be agreed upon through diplomatic channels.
Done in Islamabad on 14 February 2020 in English and Turkish languages, both texts being equally authentic.
Imran Khan Recep Tayyip Erdogan
Prime Minister of the President of the
Islamic Republic of Pakistan Republic of Turkey
The Development of microfinance industry depends upon the resilience and risk management: SECP Chairman Amir Khan
Islamabad : SECP Chairman, Aamir Khan emphasized that in these challenging times the development of microfinance industry depends upon the resilience and risk management, achieved through quintessential pillars of liquidity-tapped through private capital and technology embracement. Khan was addressing the Non-Bank Microfinance Companies Stakeholders Forum organized by SECP to devise a way forward and collaborate strategic response to cope the challenges posed by COVID-19 pandemic and ensuing lockdowns.
The SECP Chairman Amir Khan, along with Commissioner Specialized Companies Division, Farrukh Sabzwari chaired the session. Representatives of Pakistan Microfinance Network (PMN), State Bank of Pakistan (SBP), National Bank of Pakistan (NBP), Pakistan Poverty Alleviation Fund (PPAF), Pakistan Microfinance Investment Company Limited (PMIC), Karandaaz Pakistan and multilateral donor agencies including the World Bank, International Finance Corporation (IFC) and Department for International Development (DFID) attended the session.
The Chairman SECP advised NBMFCs to go far product diversification to insurance solutions and saving products and build capacity of their workforce to attain business development and operational efficiency. He endorsed formation of a working group consisting of nominees from SECP, PMN, PMIC and NBMFCs to further analyze the situation. The working group will also take up the matters with relevant forums including ministry of finance, SBP and multilateral donor agencies for possible solutions.
Khan expressed SECP’s firm commitment to providing all possible support to industry not only during the current pandemic times but also in developing the industry on a strong footing. SECP Commissioner, Sabzwari highlighted the measures taken by SECP to provide relief and flexibility to the NBMFCs and their wholesale lender in managing funding requirements. He also talked about SECP’s advice to NBMFCs to defer and reschedule borrower loans.
Participants acknowledged SECP’s timely intervention to provide regulatory relief to NBMFCs in managing their credit lines and funding requirements. However, industry representatives expressed their concerns on potential defaults by borrower and liquidity crunch that may lead to capital crisis in the industry.
They raised the need of new money injection into the industry through collaborative efforts of microfinance regulators and the government. Representatives of international donor agencies attending the Forum expressed their resolve to extend fullest possible support to Pakistan’s microfinance sector.
Gov’t releases Rs 533.33 billion for various development projects so far
Islamabad: The federal government has so far authorized release of Rs 533.33 billion for various ongoing and new social sector uplift projects under its Public Sector Development Programme (PSDP) 2019-20, as against the total allocation of Rs 701 billion.
Under its development programme, the government has released an amount of Rs 230.3 billion for federal ministries, Rs 175.65 billion for corporations and Rs 43.46 billion for special areas, according to a latest data released by Ministry of Planning, Development and Reform.
Out of these allocations, the government released Rs 38.5 billion for security enhancement in the country for which the government had allocated Rs 53 billion during the year 2019-20.
An amount of Rs 81.37 billion has also been released for the blocks managed by finance division under the government’s 10 years development programme.
Similarly, for Higher Education Commission, the government released an amount of Rs 27.07 billion out of its total allocation of Rs 29 billion while Rs 301.47 million were released for Pakistan Nuclear Energy Authority for which the government had allocated Rs 301.48 million in the development budget.
For National Highway Authority, the government released Rs154.94 billion. Under annual development agenda, the government also released Rs 10.7 billion for Railways Division out of total allocation of Rs16 billion, Rs 7.7 billion for Interior Division, and Rs 8.38 billion for National Health Services, Regulations, and Coordination Division.
Revenue Division received Rs 4.3 billion whereas the Cabinet Division also received Rs 30.18 billion for which an amount of Rs 39.986 billion has been allocated for the year 2019-20.
The government also released Rs 26.9 billion for Azad Jammu and Kashmir (AJK) block and other projects out of its allocations of Rs 27.26 billion and Rs 16.54 billion for Gilgit Baltistan (Block and other projects).
Pakistan’s small businesses hit hard by COVID-19
Small businesses in Pakistan have been adversely affected by the Covid-19 pandemic. The low demand at home, disruptions in supply chains, constraints in international trading, and expected prolonged lockdowns are now leading to severe cash flow problems, the inability to pay back debts and cancellation of orders from clients.
This rising uncertainty is gradually leading them to lay off employees which will have welfare implications. In some sectors where recovery is difficult to predict, small businesses have started planning for the worst: complete shutdown. This crisis could also imply a much bleaker outcome for the startup ecosystem in Pakistan.
The government has announced a SME relief package. The central bank has also come forward to relieve some of the funding and finance related concerns of private enterprises. Yet, many micro and small businesses do not understand how to apply or if they are eligible, to receive such assistance. There are others who argue that this one off relief may not be enough given that businesses are going to face depressed demand for a longer term. Pakistan’s past record of small businesses trying to access such fiscal packages is also not encouraging, partly because many such firms do not access formal banking channels for their needs or banks impose steep collateral requirements. Also, large segments of micro enterprises have the entire or some components of their businesses in the informal sector.
Federal and provincial governments have two issues to address now: how to ensure that small businesses are able to access and utilize existing government-provided assistance, and secondly, what more can be done to support private enterprise in these times.
A progressive fiscal policy and commitment to redistributive taxation is in line with the spirit of Riasat-e-Madinah to which Prime Minister Imran Khan often refers to. A sincere effort is required to reduce the burden of compliance costs faced by small firms- often filing returns several times during a year and to multiple tax bodies across the country.
Dr. Vaqar Ahmed
On the former, it would be best to start by addressing information and outreach gaps. As the problems for businesses are evolving in real-time, hence there remains a need for structured and more frequent public-private dialogue which should be inclusive enough to also give representation to women, youth-led firms and social enterprises. Such a dialogue will also give a sense to the government about how these businesses will get affected in the forthcoming rounds of Covid-19.
On the latter, I believe the forthcoming budget for the fiscal year 2020-21 should be seen as an opportunity not only to provide support to collapsing businesses but also to put in place economic incentives that encourage enterprises to consider resilient business models. A large part of this has to do with reimagining a better taxation regime.
A progressive fiscal policy and commitment to redistributive taxation is in line with the spirit of Riasat-e-Madinah to which Prime Minister Imran Khan often refers to. A sincere effort is required to reduce the burden of compliance costs faced by small firms – often filing returns several times during a year and to multiple tax bodies across the country. It is an opportunity now to automate, rationalize or eliminate several filing and payment layers in taxation to ultimately help reduce the cost of doing business.
After a lot of persuasion from local think tanks and the International Monetary Fund (IMF), federal and provincial governments agreed to establish a National Tax Council (NTC) to harmonize the general sales tax (GST).
Currently all provinces have a different structure of GST on services. There are also issues regarding definition of certain activities which the federal government may assume to be under its jurisdiction. Perhaps smaller firms have been the hardest hit due to the fragmented tax structure across the federation and it is time now to expedite NTC’s establishment and work in this direction. Even when the system is finally harmonized, the GST should not be collected by multiple windows at federal and provincial levels. A unified tax return and collection should be made possible through online mechanisms.
It will also be timely to think about which sectors should be motivated to scale up production and services in the face of this health-related emergency. Hospitals and private clinics operating at micro, small, and medium scale are primary candidates for cut in GST on services and even rationalization in direct tax rates. Firms producing personal protective equipment should also see a relief in taxes. The trade taxes faced by such producers or even hospitals importing from abroad need to be revisited. The agro-based and food processing enterprises will need similar help as their input supplies face price and supply volatilities.
Covid-19 also increased demand on several other sectors providing essential services. Our policy circles have rarely seen these sectors as important for the social and mental wellbeing of society until the pandemic struck. It will now be timely to recognize the services of firms (including schools) providing online services. The economic policy managers must think out of the box how best to leverage e-commerce in the battle against Covid-19.
– Dr. Vaqar Ahmed is an economist and former civil servant. He is author of ‘Pakistan’s Agenda for Economic Reforms’ published by the Oxford University Press. Twitter: @vaqarahmed
Courtesy : ArabNews
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