EU weighs new energy Taxes

EU weighs new energy taxes as Germany calls for ‘drastic’ steps

HELSINKI: The European Union is considering new energy taxes to meet its climate targets, top officials said on Friday, with Germany calling for “drastic steps” to reduce carbon emissions.
In the last decade, EU countries have led the global shift towards renewable energy and set up the world’s largest emissions trading system to price carbon and reduce reliance on more polluting fuels.
However, the bloc’s rules on energy taxation have not changed for more than 15 years.
They are “outdated and poorly adapted to climate change challenges and developments in energy policy at EU level,” according to a document which EU finance ministers will discuss at meetings in Helsinki on Friday and Saturday.
Arriving at the meeting, German finance minister Olaf Scholz said “drastic steps” were needed to counter climate change and urged an international approach on the matter.
“We are in the process of finding out how we can limit CO2 consumption in agriculture, small businesses or transport,” Scholz said.

The bloc’s top economic commissioner Valdis Dombrovskis told reporters that options included a carbon tax and an overhaul of energy taxation.
Possible measures in a document prepared by the Finnish presidency of the EU included higher minimum tax rates on energy, fossil fuel levies and the end of waivers for the air and sea transport sectors.
Ambitious targets for reducing carbon emissions by at least 50% by 2030 are part of the agenda of the new European Commission which will take office in November.
A confidential work programme prepared in July by Commission officials before the appointment of the commission’s president-designate Ursula von der Leyen envisages legislative proposals to end tax exemptions for air and sea transport by early 2020 and a review of minimum tax rates on energy products by the end of next year.

Merkel’s conservatives want tax hike for domestic flights

BERLIN: Seeking to tackle climate change, German Chancellor Angela Merkel’s conservatives want to increase taxes on domestic flights and reduce the cost of long-distance train tickets, a party document seen by Reuters on Friday showed.

The German government – made up of Merkel’s conservatives, their Bavarian CSU sister party and the Social Democrats (SPD) – is expected to present a far-reaching package of climate protection measures on Sept. 20.

The flight levy for domestic flights currently stands at 7.40 euros ($8.21).

“We want to double this ticket tax for all domestic flights and triple it for short-haul domestic flights under 400 kilometers,” said a party document that the board of Merkel’s Christian Democrats (CDU) is due to review on Monday.

The document, called “Climate-friendly Germany – using innovations as we head into the future”, showed that the party also wants to make long-distance rail travel cheaper by reducing the value-added tax levied on train tickets.

The document said a premium worth several thousand euros should be introduced to encourage people to scrap old, inefficient heating systems so that climate targets for buildings can be achieved.

Germany warns against early troop withdrawal from Afghanistan

BERLIN: A withdrawal of NATO forces from Afghanistan could see the country falling back under the strict rule of the Taliban, German Defence Minister Annegret Kramp-Karrenbauer said on Saturday.

Kramp-Karrenbauer, who also heads Angela Merkel’s Christian Democrats (CDU) and is seen as the chancellor’s most likely successor, said a pullout of foreign troops would be particularly tough for Afghan women.

“I am worried that if we were to ditch our responsibility (in Afghanistan) we will face horrifying images of women being stoned and hanged and of girls not able to attend school and married off,” Kramp-Karrenbauer told a gathering of CDU women.

US President Donald Trump this month cancelled a planned meeting with Taliban leaders at his Camp David retreat, dealing a blow to talks between his administration and the group aimed at ending the almost 18-year conflict.

The United States had said it would withdraw almost 5,000 troops from Afghanistan and close five military bases under a draft agreement with the Taliban.

Trump cancelled the peace talks with Taliban leaders after the insurgents said they were behind an attack in Kabul that killed an American soldier and 11 other people.

Germany has some 1,300 soldiers in Afghanistan. Their parliament-approved mandate ends in March 2020.

The United States has some 14,000 troops in the country, where the US military has fought its longest ever war which started with a campaign to toppled the Taliban in 2001 after the Sept. 11 attacks on American soil.

Trump has been putting pressure on Germany to meet a NATO-mandated military spending budget of 2% of economic output.

Merkel said last month she was taking her government’s commitment to meet that goal seriously.

Under current budget plans, Germany would spend just more than 1.4% of output on defence.

Realistic economic indicators

Pakistan Tehrik-e-Insaaf (PTI)’s federal government headed by Prime Minister Imran Khan has presented its first formal budget for financial year 2019-20 which has since been debated at length and passed amidst lot of noise and obstructions by the opposition parties jointly and is under implementation from July01,2019, the first day of the new fiscal year. PTI had come into power in August 2018 as a result of its securing majority of seats in free, fair and orderly general election of July 25, 2018. But it had more or less to carry on with the federal budget for 2018-19 which was presented by PML(N) federal government as early as April 27, 2018 setting a new record of six budget is five years stipulated constitutional tenure and stepping down on May 31,2018.

PM Imran Khan and his economic team managers have been quite frankly and honestly telling the people about severe economic crisis which the PTI government has inherited and as such all economic indicators in its first formal federal budget for financial year 2019-20 have been kept somewhat on lower side in a more realistic and achievable manner keeping all the bitter, painful and factual facts and figures view. Prior to talking about the salient features of the PTI’s first formal federal budget, on the basis of facts and figures available from official sources, it is pertinent to mention here that Real Gross Domestic Product (GDP) has been kept at the lowest level of 2.4 per cent and inflation at higher side between=n 11-13 per cent against 3.3 per cent and 7.2 per cent respectively of revised budget for financial year 2018-19.

Furthermore, total revenue has been estimated at 16.7 per cent, total expenditure at 23.8 per cent and fiscal balance at -7.1 per cent of GDP for the just commenced new financial year. As is already known to the people by and large, the total outlay of the budget for fiscal year 2019-20 has been placed at Rs 8238.1 billion which was 38.9 per cent higher than the 2018-19 budget estimates of Rs 5932.5 billion which was increased to Rs 6409.3 billion in the revised estimates.

Resources availability during current financial year was Rs 7899.1 billion against Rs 4917.2 billion budget estimates and Rs 5062.8 billion in ther revised estimates for the last financial year.

There are two types of resources i.e. internal and external. The internal resources comprise of revenue receipts, capital receipts and and estimated surplus of provincial governments of the Punjab, Sindh, Khyber Pukhtoonkhwah and Balochistan whereas the external resources come from loans and grants from the foreign countries and international financial institutions.

Accordingly, the gross revenue receipts have been estimated in the new budget at Rs 6716624 million indicating an increase of 18.7 per cent and 33.5 per cent over the budget and revised estimates respectively for the last fiscal year.

The tax revenue for the new financial year has been estimated at Rs 5822160 million reflecting an increase of 33 per cent over revised estimates for the last financial year. This included main revenue generation agency, Federal Bureau of Revenue (FBR), collection is estimated to be Rs 5555000 million while non-tax revenue has been projected to be around Rs 894464 million during current financial year as compared to Rs 637751 million in the revised estimates for last financial year.

Direct taxes include Income Tax, Workers Welfare Fund and Capital Value Tax ,Indirect Taxes are Customs Duties, Sales Tax and Federal Excise and other taxes include Airport Tax, Gas Infrastructure Development Cess, Natural Gas Development Surcharge, Petroleum Levy among others.

The share of the provinces in taxes for the new fiscal year has been estimated at Rs 3254526 million which was as much as 32.2 per cent higher than the revised estimates of Rs 2569.0 billion for the just passed year.After the share of the provinces in gross revenue is transferred , the net revenue of the Federal Government has been estimated atRs 3462099 million for fiscal year 2019-20.

External receipts for the new financial year have been estimated at Rs 3032.3 billion showing an increase of as high as 171.2 per cent over Rs 1403.2 billion in the revised estimates for last fiscal year. The overall expenditure this fiscal year has been estimated at Rs 8238.1 billion including the current expenditure of Rs 7288.1 billion against revised estimates of Rs 5589.431 billion for 2018-19.

The expenditure on General Public Services has been estimated at Rs 5607.0 billion is as much as 76.9 per cent of the current expenditure.

Overall size of the Public Sector Development Programme (PSDP) for 2019-20 has been estimated at Rs 1613 billion out of which Rs 912 billion have been allocated for financing the Annual Development Programmes (ADPs) of the provinces and the Federal PSDP size was Rs 701 billion. The PSDP 2019-20 will be dilated upon in detail separately some other time. The development expenditure outside PSDP has been estimated at Rs 85.8 billion in the new federal budget.

To meet the expenditure, bridging the gap between the resources and expenditures, bank borrowing by the Federal Government during financial year 2019-20 at Rs 339 billion which was lower by as much as by Rs 688.7 billion than the revised for last financial year reflecting appreciable decrease of 75 per cent. Figures have been kept to the barest minimum level to save the readers from some burden.

Strangling The Democracy

Hearing conflicting opinions and contrasting worldviews with dignity and tolerance are some of the essential characteristics of any democratic society. In Pakistan, the ruling parties rarely, if ever, regard difference of opinion an acceptable thing. And if that difference of opinion is expressed through rallies, it means that one is inviting the wrath of the government. Pakistan Muslim League Nawaz (PML-N) is under fire at the moment. The government machinery has already come in motion by booking leaders and workers of PML-N in the aftermath of Faisalabad rally. The FIRs are spurious ones, and the police should not take them seriously.

It seems that Pakistan Tehreek-e-Insaf (PTI) does not want to learn from the experiences of the past governments that wanted to curb dissent, in whatever form, through force and coercion. The charges that the police have pressed against the PML-N leaders and workers are not serious ones. Examining the charges against the leadership of the former ruling party reveal that the state could not bring forward any serious violation of law and order against Maryam Nawaz and her fellows.

Unfortunately, the state wants to take legal action against the opposition party on most bizarre and ludicrous excuses. What does opposition do other than staging rallies and protests within and without the parliament against the government’s actions and policies that it thinks are not justified? Can someone from the ruling party answer this question? One still remembers the good old days when PTI took to streets now and then protesting the wrongs of the PML-N government. Do the leaders of PTI have such short memories?

And how do people communicate with a crowd of thousands of people if not through loudspeakers? Because, if the use of the speakers is against the law and order situation, then PTI should have been brought to justice when it was occupying the opposition benches. Does the incumbent government think that the norms of democracy change according to its sweet will?

Let the political parties hold rallies. Let the opposition protest against what they perceive to be the wrongs of the government. The government should not give the opposition a chance to say that the state is busy in political victimisation. If taking action becomes necessary, the state goes after opposition parties on substantive grounds, not on whimsical ones the PML-N leaders are booked under. Attempts to restrict the opposition from holding rallies, protests and demonstrations weaken the process of public accountability that is vital for a democracy.

Hujjaj suffering unhygienic food, untrained staff causing nuisance

A number of hujjaj here in Makkah after spending at least nine days in Madina suffered unhygienic food and untrained staff.

Talking to the media, a haji of building number 218 said those who came under government scheme were served a healthy diet in the beginning but later on, its quality was compromised and eventually made the life of hujjaj miserable.

The hujjaj registered complaints many a times over the declining quality of food to the food committee but it went in vain. They assured hujjaj to remove their anomalies on priority but no improvement was brought into effect so far.

The haji went on saying that he requested the higher hierarchy to discuss the problems being faced but he was informed that they were not allowed to give their bosses’ contacts to anyone.

Another haji of the same building complained about the low moral values of the food serving staff.

She said the food serving staff has no ethics to interact with hujjaj. They behaved in uncivilised manners with hujjaj and sometimes they quarrelled over petty things, she added.

They also hoped that the religious minister would take an immediate action and provide a sigh of relief to the hujjaj who were to perform their religious obligations.

محبت اپنے ارادے سے کر لو

جہانگیر28 اکتوبر1627ء کو انتقال کر گیا اور شاہ جہاں نے تخت سنبھال لیا‘ وہ 30سال ہندوستان کا بادشاہ رہا‘ یہ 30سال ہندوستان کی تاریخ کے شاندار ترین سال تھے‘ آپ کو آج ہندوستان میں مغلوں کی جتنی نشانیاں ملتی ہیں وہ سب ان 30برسوں میں تخلیق ہوئیں اور ان کے پیچھے شاہ جہاں کا دماغ اور جذبہ تھا‘ آپ تاج محل دیکھ لیجیے‘ یہ دنیا کے سات عجوبوں میں شامل ہے‘ یہ ہندوستان میں گنبد والی پہلی عمارت تھی‘ شاہ جہاں نے اس کے لیے اٹلی‘ ترکی اور ایران سے ایکسپرٹس منگوائے اور اس پر اس دور میں 32ملین ہندوستانی روپے خرچ ہوئے۔

تاج محل اس زمانے میں دنیا کی مہنگی ترین عمارت تھی‘ آپ دہلی کا لال قلعہ دیکھ لیجیے‘ یہ آج عالمی سطح پر بھارت کی نشانی ہے‘ یہ قلعہ بھی شاہ جہاں نے بنوایا‘ لاہور قلعے کی موتی مسجد تعمیر کا عظیم معجزہ ہے‘ آپ اس کے اندر جا کر دیکھیں یہ چھوٹی سی مسجد آپ کی روح کا حصہ بن جائے گی‘ یہ شاہ جہاں نے بنوائی تھی‘ لاہور قلعے کی بیرونی دیوار اور شیش محل بھی شاہ جہاں نے بنوایا تھا‘ شاہ جہاں نے شیش محل کی جگہ سونے کا محل بنوایا تھا‘ ملکہ ممتاز محل کو پتا چلا تو اس نے کہا‘ بادشاہ سلامت سونے کے محل پوری دنیا میں ہیں‘ آپ اگر مجھ سے واقعی محبت کرتے ہیں تو آپ مجھے ستاروں کا محل بنا کر دیں۔

بادشاہ نے حکم دیا”سونے کا محل گرا دیا جائے“ محل گرا دیا گیا‘ بادشاہ نے اس کے بعد شیش محل کی ڈرائنگ بھجوائی اور شیش محل بن گیا‘ آپ کسی دن رات کے وقت شیش محل جائیں‘ چھوٹی سی ٹارچ جلائیں اور اس کے بعد ستاروں کو زمین پر اترتے ہوئے دیکھیں‘ آپ لاہور کی مسجد وزیر خان دیکھیں‘ دہلی کا قطب مینار دیکھیں‘ یہ مینار قطب الدین ایبک نے بنوایا تھا لیکن اس کی توسیع اور مضبوطی کا کام شاہ جہاں نے کرایا‘ آپ سری نگر اور لاہور کے شالیمار گارڈن دیکھ لیں‘ آپ دہلی کی جامع مسجد دیکھ لیں۔

پ تخت طاؤس کو بھی لے لیجیے‘ یہ تخت بھی شاہ جہاں نے1635ء میں بنایا تھا اور اس پرسونااور قیمتی ہیرے جواہرات لگے تھے‘ آپ کوہ نور ہیرے کو لے لیجیے‘ یہ ہیرا بھی شاہ جہاں نے حاصل کیا تھا اور اپنے تاج میں لگوایا تھا اور آپ ٹھٹھہ کی شاہ جہاں مسجد کو بھی دیکھ لیجیے‘ یہ دنیا کی واحد عمارت ہے جس میں 93 گنبد ہیں غرض آپ ہندوستان کی کسی بھی شاندار عمارت کی تاریخ کھود کر دیکھ لیں‘ آپ کو اس کے پیچھے شاہ جہاں ملے گا‘ شاہ جہاں کی محبت صرف یہاں تک محدود نہیں تھی بلکہ آپ مغل آرٹ‘ مغل آرکی ٹیکچر‘ مغل میوزک اور مغل لٹریچربھی لے لیجیے۔

یہ سارے فن شاہ جہاں کے دور میں پروان چڑھے اور اسی کے زمانے میں نقطہ کمال تک پہنچے چناں چہ شاہ جہاں نے جہانگیر سے جو کہا تھا وہ کر دکھایا‘ اس نے ملک سے واقعی محبوبہ کی طرح محبت کی‘ اس نے ثابت کر دیا ملکوں کو وہی لوگ بناتے ہیں جو ملکوں سے محبوب کی طرح محبت کرتے ہیں۔میں جب بھی لوگوں کو ماں یا باپ کی قسم کھاتے دیکھتا ہوں تو میں ہنس کر ان سے کہتا ہوں ”ابا یا اماں نہیں محبوبہ یا بیوی کی قسم کھاؤ“ اور وہ قہقہہ لگا کر منہ دوسری طرف پھیر لیتے ہیں۔

اللہ تعالیٰ نے محبت میں جنون رکھا ہے‘ انسان اپنی ماں یا اولاد سے گفتگو سے تھک جاتا ہے‘ یہ عبادت کو زیادہ وقت نہیں دے گا لیکن محبوب یا محبوبہ سے ساری ساری رات گفتگو کرتا رہے گا‘ یہ موبائل پر گھنٹوں بات کرے گا لیکن تھکے گا نہیں‘ یہ مل مل کر اور دیکھ دیکھ کر بھی نہیں اکتائے گا اور عاشق ایک دوسرے کا دہائیوں تک انتظار بھی کر لیں گے‘ محبت کمال جذبہ ہے‘ دنیا جہاں کی تخلیقات اس جذبے سے جنم لیتی ہیں‘ آپ آرٹ کو دیکھ لیجیے‘ ادب‘ شاعری‘ تصوف‘ آرکی ٹیکچر اور بزنس کو دیکھ لیجیے‘ آپ کو ہر بڑا فن کار محبت کی کوکھ سے جنم لیتا نظر آئے گا۔

شاعر صرف شاعر ہوتا ہے‘ محبت آتی ہے اور عام شاعر عظیم ہو جاتا ہے‘ دکان دار صرف دکان دار اور کھلاڑی صرف کھلاڑی ہوتا ہے‘ محبت ڈنک مارتی ہے اور پرچون کا دکان دار بزنس مین اور عام کھلاڑی بین الاقوامی بن جاتا ہے‘ انسان 28 جذبے ساتھ لے کر پیدا ہوتا ہے‘ ان 28 جذبوں میں صرف محبت میں ایٹمی طاقت ہے‘ یہ انسان کو اندر اور باہر سے جلا کر کندن بنا دیتی ہے چناں چہ میرے پاس جب بھی کوئی نوجوان کام یابی یا ترقی کا نسخہ لینے آتا ہے تو میں اسے شاہ جہاں کا یہ واقعہ سناتا ہوں اور اس سے کہتا ہوں‘ تم جتنا وقت اپنی محبوبہ یا محبوب کو دیتے ہو تم اس سے آدھا وقت اپنے مقصد کو دے دو۔

تم جتنی محبت کسی دوسرے سے کرتے ہو تم اس سے آدھی محبت اپنے ارادے سے کر لو تم چند برسوں میں وہاں پہنچ جاؤ گے جس کا تم نے تصور بھی نہیں کیا‘ تم بس ایک دفعہ شاہ جہاں بن جاؤ اور اس کے بعد تم تماشا دیکھو‘ تم دنیا کو حیران کر دو گے‘ خواہش اور ارادے میں بڑا فرق ہوتاہے۔ ”میں یہ چاہتا ہوں“ اور ”میں یہ کر رہا ہوں“ آپ دونوں میں زمین آسمان کا فرق دیکھیے۔ ”میں کر رہا ہوں“ ارادہ ہے اور ”میں چاہتا ہوں“ خواہش ہے‘ ترقی اورکام یابی ارادے سے ملتی ہے خواہش سے نہیں اور ارادہ محبت سے جنم لیتا ہے۔

آپ جتنی محبت کرتے جاتے ہیں آپ کا ارادہ اتنا ہی پختہ ہوتا جاتا ہے‘ آپ اپنے گول کے اتنے ہی قریب ہوتے جاتے ہیں چناں چہ آپ اپنے گول سے محبت کریں‘ آپ پار لگ جائیں گے‘ دنیا میں اگر کتا بھی محبت کرے تو یہ بھی اصحاب کہف کے ساتھ جنت کا حق دار ہو جاتا ہے اور آپ تو ہیں ہی انسان‘ آپ کہاں تک نہیں پہنچ سکتے؟ فرہاد نے محبت میں چار پتھر کاٹے تھے‘ پتھر‘ نہر‘ فرہاد اور شیریں چاروں رخصت ہو گئے لیکن دنیا جب تک دنیا ہے فرہاد کی نہر محبت کی داستانوں میں زندہ رہے گی اور آپ کی خواہش تو معمولی سی کام یابی کی معمولی سی تمنا ہے‘ یہ کیوں پوری نہیں ہو گی؟۔

آپ کیسے ناکام رہ سکتے ہیں لہٰذا آپ جو چاہتے ہیں آپ اسے اپنی محبوبہ بنا لیں اور خود کو محبوب اور اس کے بعد آپ کمال دیکھیے‘ آپ اپنی کھلی آنکھوں سے وقت اور حالات کو تبدیل ہوتے دیکھیں گے۔آپ یقین کریں اگر محبت میں جان نہ ہوتی تو اللہ تعالیٰ کبھی نہ کہتا‘تم اگر مجھے پانا چاہتے ہو تو تم مجھ سے اپنے مال‘ جان اور اولاد سے زیادہ محبت کرو‘ میں تمہیں مل جاؤں گا‘ محبت تو انسان کو خدا تک پہنچا سکتی ہے‘ یہ چھوٹی‘ معمولی سی کام یابی کیا چیز ہے؟ اور یہ ہے کام یابی کا شاہ جہانی فامولا!

Higher state spending helps German economy avoid recession in Q4

Higher state spending helped Germany avoid a recession in the fourth quarter, data showed on Friday, as exports failed to provide impetus for a slowing economy.
Detailed data released by the Federal Statistics Office confirmed the economy stagnated in the fourth quarter after a contraction in the previous month.
A breakdown of the data showed that state spending had risen by 1.6 percent, contributing 0.3 percentage points to economic growth.
Exports and imports rose by 0.7 percent each on the quarter, resulting in net trade making no contribution.
Private consumption, which has been supporting the economy as exports weaken on trade frictions and bottlenecks in new car registrations, grew by a disappointing 0.2 percent and its contribution to growth was as little as 0.1 percentage points.
VP Bank chief economist Thomas Gitzel said stricter emissions rules that have hindered sales in the automotive sector had weighed on both exports and private consumption.
“We expect a catch-up effect in the current quarter,” he wrote in a note.
Germany’s dependence on exports for growth makes it particularly vulnerable to the trade disputes between the United States and both China and the European Union.
“Where do we go from here? What happens in the international arena will decide the prosperity and adversity of the German economy,” Gitzel said. “A resolution to the trade conflict will certainly leave a positive mark.”

Euro zone core inflation edges higher in Jan 2019

Euro zone headline consumer inflation slowed slightly in January because of a sharp deceleration of energy price growth, but core inflation watched closely by the European Central Bank in policy decisions edged slightly higher, data showed on Friday.
The European Union’s statistics office Eurostat said consumer prices in the 19 countries sharing the euro fell 1.0 percent month-on-month in January for a 1.4 percent year-on-year rise, in line with previous estimates and market expectations.
Energy prices, which fell 0.9 percent on the month and were 2.7 percent higher than in January 2018, slowed sharply from a 5.5 percent year-on-year growth in December and 9.1 percent increase in November.
Without the volatile components of energy and unprocessed food, or what the ECB calls core inflation, prices fell 1.2 percent month-on-month for a 1.2 percent year-on-year increase, accelerating from 1.1 percent in annual terms in December.
Eurostat said the biggest upward push for consumer prices came from services, which contributed 0.7 percentage point to the overall year-on-year result, followed by food, alcohol and tobacco with 0.36 points and energy with 0.26 percentage points.
European Central Bank policymakers took a gloomy view of the euro zone economy at their last policy meeting and asked for swift preparations for giving banks more long-term loans, minutes of the meeting showed.

With growth unexpectedly weak for the third straight quarter, policymakers are increasingly concerned that global uncertainty is derailing the euro zone’s recovery, undoing years of work by the ECB to kickstart the bloc.
Although the ECB just ended a 2.6 trillion euro bond purchase scheme to stimulate growth, it is now preparing the ground for giving more multi-year, cheap loans to banks to ensure they keep credit flowing to the economy even during the slowdown.

German business morale sinks for a sixth month in February

German business morale fell for the sixth straight month in February, a survey showed on Friday, reflecting concern among corporate executives that trade hostilities will worsen a slowdown in Europe’s largest economy. The Munich-based Ifo economic institute said its business climate index fell to 98.5, the lowest since December 2014 and lower than a consensus forecast of 99.0.
“The German economy remains weak,” Ifo President Clemens Fuest said in a statement. The institute said the index as well as other indicators pointed to a growth rate of 0.2 percent in the first quarter.
The outlook for the export-dependent German economy has been clouded by trade frictions and the risk of Britain leaving the European Union next month without a deal.
Economists said the slide of the Ifo index suggested companies remained worried that the German economy would suffer more damage if the United States failed to resolve its trade disputes with both China and the European Union.
Of particular concern to German businesses is US President Donald Trump’s threat to impose tariffs on cars and auto parts imported from the EU. That would particularly hurt Germany’s carmakers, who export more than two-thirds of their vehicles.
“The closer we get to Brexit and a decision on US tariffs on cars, the more those issues will weigh on the confidence of companies,” said Andreas Scheuerle at DekaBank. “The small waves are getting bigger. In this stormy sea, companies are reefing their sails.”
CAR BLOCKADE Data published on Friday highlighted the importance of the auto sector. Detailed data confirmed economic growth was unchanged in the fourth quarter, and economists said bottlenecks in new car registrations contributed to the stagnation.
The data showed that exports, imports, investments, state spending and private consumption had all risen on the quarter.
“The growth components actually show an economy that is running on almost all cylinders,” ING Diba economist Carsten Brzeski wrote in a note. “With none of the traditional growth components being negative, the question arises why the economy is still on the brink of a recession? The answer is clear: cars are still blocking the road to a rebound.”
A breakdown of the data showed that state spending had risen by 1.6 percent, contributing 0.3 percentage points to economic growth. Exports and imports each rose by 0.7 percent in the quarter, so in net trade made no contribution.
Private consumption, which has been supporting the economy as exports weaken on trade frictions and bottlenecks in new car registrations, grew by a disappointing 0.2 percent and its contribution to growth was as little as 0.1 percentage points.
Stricter emissions rules that have hindered auto sales had weighed on both exports and private consumption, VP Bank chief economist Thomas Gitzel said. “We expect a catch-up effect in the current quarter,” he wrote in a note.
Germany’s dependence on exports for growth makes it particularly vulnerable to the trade disputes.
“Where do we go from here? What happens in the international arena will decide the prosperity and adversity of the German economy,” Gitzel said. “A resolution to the trade conflict will certainly leave a positive mark.”

Digital remittances

Pakistan is one of the largest markets for international remittance and WorldRemit continues to focus on it by expanding its operations. Following are the edited excerpts of a conversation with Country Director, WorldRemit:
 
BR Research: What do remittance market players compete on – do they compete on rates, speed, availability of outlets, security of transfer, or other services
Today, the majority of the money transfer industry in Pakistan is still ‘offline’ – through money transfer agents, friends or relatives or through other third parties such as hawala. Similarly, a large portion of remittances globally are sent offline in cash at high street agents, who may not even be employees of the money transfer company.

For WorldRemit, I would say that what distinguishes us from other players within the remittance space is the mission to support financial inclusion by offering a variety of methods to receive money, with or without a bank account.
For customers sending to Pakistan, where almost 80 percent of the population do not have access to a transaction account, we offer bank transfer, cash pickup, airtime top-up and mobile money. Mobile money enables people to receive money directly to their mobile phones quickly, easily and transparently.
Moreover, unlike other digital upstarts, we genuinely serve the whole world. We operate across 6,500 corridors and 80 percent of our revenue is generated outside the UK. We’re the leading sender of international remittances to mobile money services with access to more than 150 million mobile money accounts worldwide.
Also, we bank on our cashless model on the sending side, which makes us more secure, as it provides a digital footprint to adhere with global compliance requirements. Pre-transaction, our systems analyses countless data points looking for suspicious user behaviour and check users against Know-Your-Customer databases. Our transactions leave a digital audit trail for tracking unusual patterns, spotting potential fraud and ensuring efficient data sourcing to fulfill regulatory requirements.
 What are the prospects of increasing remittances through blockchain channel? Will this channel only divert formal remittance from one channel to another or will it divert informal into formal?
 In an industry which remains largely offline with the use of informal channels, we want to use technology to digitise the process and make it easier and cheaper for people to send and receive money. When exploring new payment technologies such as blockchain, our test is to see whether it will make sending money a better experience for the customers.
Blockchain is a technology we will continue to watch; however, we think mobile money is a more attractive solution for people looking to switch from informal to formal channels. This is because mobile money enables recipients to receive money without an internet connection or bank account.
How can you bring remittance costs down in Pakistan? Which corridor offers the lowest cost?
 According to the World Bank, the average global cost of sending money to Pakistan is 5.38 percent. The top five most expensive corridors are Singapore, Canada, Saudi Arabia, Norway and finally Australia. Digital remittances can save both remittance senders and receivers’ time and money as they cut out expensive third parties such as couriers and traditional brick and mortar agents. The overall global cost of remittances is 7 percent but on average, digital remittances cost 4 percent.
 Have you been approached by the SBP survey? What do you think about the survey?
The SBP survey is a fantastic initiative as it has the potential to use feedback to improve financial services for the Pakistani diasporas sending money back home. We are always exploring new ways to make it easier for people to send money back home to their loved ones.
 What is your estimate of the informal remittance market size in Pakistan – can you give a breakup of the estimated informal remittance corridor-wise?
As informal remittances are unrecorded; it is difficult to estimate the volumes sent to Pakistan.
The World Bank estimates that remittances to Pakistan hit an all-time high of over $20 billion in 2018, representing 7 percent of the country’s GDP. Experts estimate that a high volume of these remittances currently go through informal channels including friends, relatives or other non-recorded sources such as hawala.
 Do you have an estimate of average transaction size of formal remittance across the key corridors?
 It varies but most of our customers globally tend to send relatively small amounts to cover, for example, health and school fees. They also rely on our service to get their money quickly and securely to recipients often living in remote areas.
A typical customer sending to Pakistan tends to send more per transaction than our average customer. However, those sending to mobile money wallets through our partnership with JazzCash tend to send smaller amounts but more frequently
 Do you have an estimate of the average transaction size of informal remittance across the key corridors?
 We do not have access to this data.
 What is your assessment of PRI activities in terms of arranging tie-ups, marketing activities, training the outgoing labour, or awareness campaign?
 PRI has played a significant role in increasing formal remittances to Pakistan. This has enabled banks and MTOs to offer lower-cost remittance solutions for customers, which is something we support.
 What do you think of Pakistan Banao Certificate?
 Pakistan Banao Certificates provide an extremely attractive investment opportunity for overseas Pakistanis. It will enable the diasporas to invest in the country’s future, and it provides a competitive return on investment. I believe that maintaining investor confidence, transparency, security, simplified digital processes and increasing customer awareness will be critical for the success of the project.
What are the prospects of digital remittance? What’s the discussion on having a remittance index?
 In just less than 20 years, the number of migrants in the world – that is people living in countries other than the one they were born in – has grown by almost 40 percent from 173 million to nearly 250 million. The money those migrants send home has grown even faster, up by 85 percent in the past decade – that’s after even allowing for a dip following the 2008 global economic crisis.
However, of the $700 billion sent every year, the majority are still sent in cash, over the counter or at high street agents. Western Union and MoneyGram – two of the biggest names in the industry – account for less than 20 percent of market share, but a growing share is moving online. As 50 percent of the world’s population now has access to the internet, and with new users coming online every day, we anticipate that the growth of digital remittances will accelerate going forward.
The money migrants send home has been growing exponentially. At this rapid pace of growth, the industry is transforming with new players and new technology constantly entering the market. We support any initiative that facilitates greater transparency and a reliable source of information, which might benefit the customer.

‘Delicate Equilibrium’ as world economy slows

Bank of England’s Carney sees ‘delicate equilibrium’ as world economy slows

Global economic growth is likely to stabilise at a new, slower pace, although China, trade wars and rising protectionism threaten the “delicate equilibrium”, Bank of England Governor Mark Carney said.
He pointed to a shift towards tighter financial conditions from rising in interest rates, as well as trade tensions, as reasons for the recent slowdown in the world economy.
Rising debt in China and new barriers to global trade were a “significant and growing” risk to the global outlook for growth, and protectionism was already having an impact, Carney said in a speech at a Financial Times event on Tuesday.
“Given the confluence of the current broad-based slowdown and outstanding downside risks, some are beginning to wonder whether the global expansion, begun in 2010, could be starting to end,” Carney said.
“While there are pockets of risk and global growth is still decelerating, the combination of the policy response and the state of the current imbalances in advanced economies suggest that global growth is more likely than not to stabilise eventually around its new, modest trend.”
“But this is a judgement, not a guarantee. The world is in a delicate equilibrium.”
Carney added that “it isn’t easy to win a trade war”, referring to remarks made by US President Donald Trump in March last year that trade wars were “good, and easy to win”.
On Brexit, Carney said it was in everyone’s interests to find a solution that works for all in the weeks ahead.
“In many respects, Brexit is the first test of a new global order and could prove the acid test of whether a way can be found to broaden the benefits of openness while enhancing democratic accountability,” Carney said.
The United Kingdom is on course to leave the European Union on March 29 without a deal unless May can convince the bloc to a mend the divorce deal she agreed in November and then sell it to sceptical British lawmakers.

 

Britain’s ‘broken’ cash system needs overhaul

 Britain’s system for cash is “broken” and needs a fundamental rethink to avoid vulnerable people being cut off, lawmakers and regulators said on Tuesday.
Lawmakers are concerned that free-to-use cash machines or ATMs in rural areas are being closed as falling demand for notes make them uneconomic, leaving customers isolated.
“The national system for people to have access to their cash via machines is basically broken,” said Nicky Morgan, chair of parliament’s Treasury Select Committee.
Currently banks effectively subsidise uneconomic cash machines through the “interchange” fee set by Link.
The Payment Systems Regulator and Link locked horns last year over closures of “protected” or uneconomic cash machines, and Link’s plan to cut the interchange fee in phases.
“We have agreed the whole system needs to be looked at afresh,” PSR Chair, Charles Randell, told the committee.
Regulators could “hold the line” for now, but the demand for cash may decline even faster as people switch to contactless payments, Randell said.
This raised the question of whether future subsidies could still come from the commercial sector, or if some cash machines should be a “universal” service funded by the public, Randell said.
The banking sector has already back-tracked on plans to ditch cheques, and faces lawmaker ire over branch closures.
Separately, consumer campaign group Which? said that 3,000 cash machines vanished from Britain’s streets in the last six months of 2018, and called on the government to set up a new regulator to oversee cash.
There were still over 60,000 ATMs in Britain at the end of last year, Which said.
UK Finance, which represents banks, said lenders were investing in the cash machine network to ensure continuity of service when ATMs are no longer commercially viable to operate.
PSR Chief Executive Hannah Nixon told lawmakers the watchdog has been clear to Link that it must maintain interchange fees at a level that keeps ATMs in remote areas open.
Nixon, who is standing down this year, said there was now a process in place to head off closures of protected ATMs, and that cash and cheques were here to stay as long as people wanted them.
The payments system was “as ready as it could be” in the event of Britain leaving the European Union next month with no transition deal, Nixon said.
But there was no clarity on whether it would become more expensive for people travelling in the EU to use their payment cards if there was no Brexit deal, Randell said.

Gucci-owner Kering faces 1.4bn euro Italian tax claim

Kering is facing an Italian claim for 1.4 billion euros ($1.60 billion) in unpaid taxes, the French luxury goods group disclosed on Friday, adding that it contested the preliminary findings.
The company’s Swiss-based Luxury Goods International (LGI) subsidiary has been under investigation for allegedly avoiding tax on earnings generated elsewhere.
The probe has largely centered on Gucci, Kering’s star brand and biggest revenue driver. Italy’s tax police carried out checks at Gucci’s Florence headquarters and Milan offices in 2017, and drew up the report that has now been handed to Kering, a source close to the investigation said.

Kering has consistently denied avoiding tax, saying its activities were fully compliant with all tax obligations.
In its statement on Friday, the group said the Italian tax authorities’ findings for the years 2011-2017 had yet to be finalised by their own enforcement team.
“Kering challenges the outcome of the audit report both on the grounds and the amount,” the company said, adding that it “does not have the necessary information” to record a provision against any potential bill for back taxes or penalties.
The company has said that LGI is a substantial firm in its own right, with 600 employees handling inventory, billing and supply-chain logistics, with a business model “known to French and other competent tax authorities”.
According to reports by France’s Mediapart newspaper and Germany’s Der Spiegel, Kering’s wholesale activities – the sale of products to retailers such as department stores – have come under particular scrutiny.
Some business carried out by Kering employees in locations including Milan and Paris was billed through the Swiss unit, incurring lower tax rates, according to those reports.
Reuters reported in November that Milan prosecutors were wrapping up their tax probe into Gucci and Kering, which could potentially lead to a trial.
Kering is due to report full-year results on Feb. 12.

US bank loan risks fall overall but leverage lending risks rise

Payment risks have declined for big bank loans taken out before April of last year but the share of loans owed by highly leveraged borrowers remains elevated, US banking regulators said on Friday.
The report from the US Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) said on the whole the prospects of loan repayment appeared to improve due to a strong economy.
“Federal banking agencies find that risk in the portfolio of large syndicated bank loans has declined, due to improving conditions in most sectors,” the agencies said in a joint statement accompanying a regular review of big loans made twice per year.
At the same time, the agencies said a larger share of total loans were rated as “below pass” relative to prior economic cycles.
Loans rated below pass are usually flagged by creditors because the borrowers have higher than average leverage levels or other reasons to doubt their ability to repay.
“Risks associated with leveraged lending activities are building in contrast to the portfolio overall,” according to the report.

More new sugarcane varieties introduced by Pakistan

Ayub Agricultural Research Institute (AARI) have introduced three new varieties of sugarcane which would give 40 percent more yield as compared to the existing varieties.
This was stated by Director General AARI Dr Abid Mahmood while Talking to APP here on Saturday.
He said that Pakistan was the 5th largest sugarcane producing country of the world.
However, the average yield of the country was far less than its potential due to various reasons. Moreover, water shortage and climatic changes were posing serious threat to the production of sugarcane, he said and added that in order to combat these challenges and enhancing the production of sugarcane, the scientists of Sugarcane Research Institute of AARI have evolved three new varieties of sugarcane including CPF-250, CPF-251 and CPF-253 which would give 40 percent more yield and require 30 percent less water to complete the growth cycle.
Responding to a question, he told the area under the cultivation of sugarcane was reducing due to water shortage, marketing issues and encouragement of other cash crops by the government.
“Only in Punjab the area under sugarcane cultivation has decreased by 27 percent during this year”, he said, adding that this situation may cause negative impact on sugarcane.
He said that newly devolved varieties were successfully tested by the scientists of this institute under different agro-ecological zones and were expected to be approved for mass cultivation by Punjab Seed Council during next month.

Central bank injects funds into market

China’s central bank injects funds into market

The People’s Bank of China (PBOC) conducted 80 billion yuan (11.8 billion U.S. dollars) of seven-day reverse repos at an interest rate of 2.55 percent and 20 billion yuan of 28-day reverse repos at 2.85 percent.
Previous reverse repos worth 80 billion yuan matured Monday, meaning that the net market injection came in at 20 billion yuan.
The PBOC said in a statement that Monday’s operation was aimed at maintaining reasonable and sufficient liquidity in the banking system.
Reverse repos enable the central bank to purchase securities from commercial banks through bidding with an agreement to sell them back in the future.

 

May warns MPs against ‘catastrophic’ failure to deliver Brexit

British Prime Minister Theresa May on Sunday warned MPs preparing to vote down her EU divorce deal that failing to deliver Brexit would be a “catastrophic and unforgivable breach of trust in our democracy”.
May, who is fighting to save her withdrawal agreement negotiated with the bloc over 18 months of talks, told lawmakers they must not let down Brexit-backers in a crunch parliamentary vote Tuesday.
“Doing so would be a catastrophic and unforgivable breach of trust in our democracy,” May wrote in the Sunday Express.
“So my message to parliament this weekend is simple: it is time to forget the games and do what is right for our country.”
Britain is set to leave the European Union on March 29 but has yet to finalise the terms of its departure.
The prime minister has already postponed a House of Commons vote on her plan once — in December — to avoid defeat, and looks certain to see it rejected by MPs on Tuesday amid fierce opposition.
Lawmakers fired ominous warning shots this week, voting to force May to quickly set out an alternative plan for Brexit if it is beaten.
It was the second setback in 24 hours for the prime minister, after MPs also voted to deny the government certain taxation powers in a no-deal scenario — an attempt to scupper that prospect.
The Sunday Times reported a group of senior cross-party backbench rebels are now plotting to change House of Commons rules to enable them to override government business if the deal falls.
Described as “a very British coup”, the plan would see May lose control of parliamentary business to MPs, threatening her ability to govern, according to the newspaper.
It said Downing Street was “extremely concerned” about the possibility, which could see lawmakers then delay Brexit through new legislation.
Conservative MP Nick Boles, who favours a Norway-style relationship with the bloc instead of May’s plan, told the paper he was exploring tactics in the Commons to rule out no-deal.
“We have a mechanism which will give parliament control of the Brexit negotiations and ensure we do not leave the EU without a deal on March 29,” he said.
“I am working on ways to achieve that outcome,” Boles added, noting he would publish the plan on Tuesday.

Plan to raise fruits, vegetables on 18000 acres land

Govt embarks on plan to raise fruits, vegetables on 18000 acres land in KP

The Khyber Pakhtunkhwa (KP) government has embarked on an inclusive plan to raise fruits and vegetables on 18000 acres land in different districts.
According to Planning and Agriculture department of Khyber Pakhtunkhwa, nine state of the art central markets will also be established to provide these commodities to people at affordable rate.
These central markets will be setup in Swat, Mardan, Abbottabad, Kohat, Bannu, DI Khan and Peshawar and practical work on it will start this year, Radio Pakistan reported.
Under the programme, farmers would be provided special incentives for purchase approved seeds, fertilizers and technical advice in wake of challenges posed by climate change.
Besides, nine new varieties of seeds of crops, vegetables and fruits have been introduced by the Agriculture Department to increase per acre’s production.

Saudi Arabia to set up $10 billion oil refinery in Pakistan

Saudi Arabia plans to set up a $10 billion oil refinery in Pakistan’s deepwater port of Gwadar, the Saudi energy minister said on Saturday, speaking at the Indian Ocean port that is being developed with the help of China.CPEC
Pakistan wants to attract investment and other financial support to tackle a soaring current account deficit caused partly by rising oil prices. Last year, Saudi Arabia offered Pakistan a $6 billion package that included help to finance crude imports.
“Saudi Arabia wants to make Pakistan’s economic development stable through establishing an oil refinery and partnership with Pakistan in the China Pakistan Economic Corridor,” Saudi Energy Khalid al-Falih told reporters in Gwadar.
He said Crown Prince Mohammad bin Salman would visit Pakistan in February to sign the agreement. The minister added that Saudi Arabia would also invest in other sectors.
Beijing has pledged $60 billion as part of the China Pakistan Economic Corridor (CPEC) that involves building power stations, major highways, new and upgraded railways and higher capacity ports, to help turn Pakistan into a major overland route linking western China to the world.
“With setting up of an oil refinery in Gwadar, Saudi Arabia will become an important partner in CPEC,” Pakistan Petroleum Minister Ghulam Sarwar Khan said.
The Saudi news agency SPA earlier reported that Falih met Pakistan’s petroleum minister and Maritime Affairs Minister Ali Zaidi in Gwadar to discuss cooperation in refining, petrochemicals, mining and renewable energy.
It said Falih would finalise arrangements ahead of signing memorandums of understanding.
Since the government of Prime Minister Imran Khan came to power in August, Pakistan has secured economic assistance packages from Saudi Arabia, the United Arab Emirates and China.
In November, Pakistan extended talks with the International Monetary Fund as it seeks its 13th bailout since the late 1980s to deal with a looming balance of payments crisis.
The Pakistani prime minister’s office had said on Thursday that Islamabad expected to sign investment agreements with Saudi Arabia and the UAE in coming weeks.

China’s high-speed railway length to top 30,000 km in 2019

China plans to build 3,200 km of new high-speed railways in 2019, with the total length expected to exceed 30,000 km, the country’s top railway operator said Wednesday.
The 3,000-plus km of high-speed railways are part of the planned development of 6,800 km of new railways for the new year as the country will keep fixed-asset investment on railway on a large scale, Lu Dongfu, general manager of the China Railway (CR), told a work conference.
The country saw an expanding high-speed railway network over the years, with a total length of 29,000 km by the end of 2018, accounting for more than two-thirds of the total high-speed railway in the world. China aims to build 30,000 km of high-speed railways by 2020.
China’s railways are expected to transport 3.54 billion passengers and 3.37 billion tonnes of goods this year, the general manager said.
By the end of this year, China will see 850 Fuxing high-speed trains put into service while the research and development of Fuxing high-speed trains running at 350 km, 250 km, 200 km and 160 km will be strengthened, according to the CR.
China will continue to expand the coverage of high-speed trains in 2019.
Though with a developed high-speed railway network, the length and coverage of railways in central and western regions of China is still inadequate.
Lu said the CR would facilitate the investigation and research of Sichuan-Tibet railway and try to start construction by the end of the third-quarter of 2019.
China will continue to promote the application of digital tickets and explore more flexible pricing mechanisms for high-speed trains, he said.
The fixed-asset investment on railways stood at 802.8 billion yuan (about 117 billion U.S. dollars) with more than 4,600 km of new railways launched in 2018.
The total revenue of railway transport saw a record rise of 10.9 percent year-on-year last year, reaching 772 billion yuan.

Eurozone firms and households borrow more in November

Growth in lending to eurozone firms and households picked up in November, the penultimate month of a key element in the European Central Bank’s economic stimulus, official data showed Thursday.
The pace of year-on-year growth in household borrowing accelerated to 3.3 percent while the rate for firms reached 4.0 percent, ECB data showed — both 0.1 percentage points higher than in October.
Folding in loan growth data from non-bank financial firms like insurers and pension funds showed that the overall pace of credit increase in the private sector — adjusted for some purely financial transactions — held steady at 3.3 percent in November.
The pace of growth in lending is closely watched by central bankers and economists for signs of how effective ECB stimulus to the eurozone has proved.
Governors at the Frankfurt institution agreed in December to end mass purchases of government and corporate bonds, which amounted to 2.6 trillion euros ($3.0 trillion) since 2015.
The “quantitative easing” (QE) scheme was intended to pump cash through the financial system and into lending to firms and households, powering economic growth and boosting inflation towards the ECB target of just below 2.0 percent.
But although the threat of deflation — a damaging downward spiral of prices and economic activity — has been dispelled, the central bank’s most recent forecasts see it achieving its price growth target only in 2021.
To continue coaxing inflation along, the ECB plans to reinvest the proceeds from its massive stock of bonds and keep interest rates at historic lows “at least through the summer” this year.
Continued sluggish price growth could see them remain there well past the end of President Mario Draghi’s tenure at the institution in October.

Green Bus Rapid Transit (BRT) network

In a bid to freshen its air and cut planet-warming emissions, the Pakistani port city of Karachi will introduce cleaner-running buses powered by a decidedly “unclean” fuel: cow poo.
With funding from the international Green Climate Fund, will launch a zero-emission Green Bus Rapid Transit (BRT) network, with 200 buses fuelled by bio-methane.
Locals said the new bus system – due to start operating in 2020 – would help reduce air pollution and street noise, but doubted whether it would have enough buses to resurrect the city’s ailing transport system.
“(Karachi’s) public transport system has totally collapsed and most people have to use online taxi-hailing services (and) auto rickshaws,” said commuter Afzal Ahmed, 45, who works as a medical sales representative.
After management problems forced the Karachi Transport Corporation to fold some two decades ago, Chinese-imported buses running on compressed natural gas fell into disrepair and were taken off the road, worsening public transport woes, he noted.
Malik Amin Aslam, advisor on climate change to Pakistan Prime Minister Imran Khan, said the BRT system was the first transport project the Green Climate Fund had approved, and would bring “multiple environmental and economic benefits”. It would not require operating subsidies, he added.
The cheap, clean bus network will cater for 320,000 passengers daily, and will reduce planet-warming emissions by 2.6 million tonnes of carbon dioxide equivalent over 30 years, according to project documents.
The BRT will consist of a 30-km (18.6-mile) corridor that will benefit 1.5 million residents, adding 25 new bus stations, secure pedestrian crossings, improved sidewalks, cycle lanes and bike-sharing facilities.
The Green Climate Fund, set up under U.N. climate talks to provide finance to developing countries to help them grow cleanly and adapt to a warming climate, will provide $49 million for the Karachi project out of a total cost of $583.5 million.
The other major funders are the Asian Development Bank and the provincial government of Sindh, where Karachi is located.
WASTE ON TAP
The BRT system, to be rolled out over four years, will have a fleet of 200 hybrid buses that will run on bio-methane produced from manure excreted by Karachi’s 400,000 milk-producing water buffaloes, and collected by the authorities.
The project will prevent about 3,200 tonnes of cow manure entering the ocean daily by converting it into energy and fertiliser at a biogas plant, and will save more than 50,000 gallons of fresh water now used to wash that waste into the bay, Aslam said.
Ali Tauqeer Sheikh, CEO of Leadership for Environment and Development (LEAD) Pakistan, a policy think-tank, said calculating the overall impact on the environment was complex, as the buses would be introduced in stages.
Pakistan’s authorities often lack maintenance budgets, he noted, highlighting the risk the buses could break down and not be repaired.
“Pakistan has a history that it does not utilise donors’ project funding at an optimum level,” he said.
But if all goes well, Sheikh said the project, as the country’s first green BRT system, would lay the foundation for “climate-smart urban transportation systems” in other places.
It could shake up approaches to public transport among policy makers and planners, serving as a model for other cities, including Lahore, Multan, Peshawar and Faisalabad, he said.
CLEANER AIR
Pakistan needs to launch such projects in big cities to discourage personal vehicle use, thereby easing traffic emissions and smog, and improving air quality and public health, Sheikh added.
He recommended setting a target for 70 percent of the urban population to use public transport.
Another way to ease air pollution would be to import better-quality petroleum fuels for vehicles, he added.
“We are importing low-grade fuel, and our refineries have capacity to refine only third-grade fuel,” he said.
Ahmad Rafay Alam, an environmental lawyer, said previous BRT projects in Pakistan’s large cities had not focused on environmental sustainability.
Planners should start connecting transport systems with wider urban development, Alam said.
“We need to introduce transport-oriented urban design by encouraging the use of public transport and discouraging the use of private vehicles to reduce emissions,” he said.
Zia Ur Rehman, a Karachi-based journalist covering civic issues, noted that the Sindh provincial government had run less than 50 buses in the city in the last 10 years, while private buses and mini-buses had dwindled from 25,000 to 8,000.
One reason is that buses were torched during strikes and at times of political upheaval, he said.
The new bus system alone was unlikely to resolve the city’s transport problems, but would be “a short-term relief for commuters and also help in reducing… air pollution”, he added.