The board has also extended the time limit for issuance of notice under section 148 of the Act for reopening the assessment where income has escaped assessment by three months…reports Asian Lite News
In view of the severe Covid-19 pandemic raging requests put forward by taxpayers, tax consultants and other stakeholders, the government has decided to provide further relief to taxpayers by extending various time limits of compliances.
Accordingly, the time limit for passing of any order for assessment or reassessment under the Income-tax Act, 1961 has been extended to June 30, 2021. This time limit was earlier extended to April 30, 2021 through various notifications issued under the Taxation and Other Laws (Relaxation) and Amendment of Certain Provisions Act, 2020.
Similarly, the Central Board of Direct Taxes (CBDT) has also extended the time limit for passing an order consequent to direction of DRP under sub-section (13) of section 144C of the Act for three months to June 30, 2021.
The board has also extended the time limit for issuance of notice under section 148 of the Act for reopening the assessment where income has escaped assessment by three months while the same extension has also been given for sending intimation of processing of Equalisation Levy under sub-section (1) of section 168 of the Finance Act 2016.
It has also been decided that time for payment of amount payable under the Direct Tax Vivad se Vishwas Act, 2020, without an additional amount, shall be further extended to June 30, 2021.
A finance ministry statement said that notifications to extend the above dates will be be issued in due course.
In 2017 Pakistan Naval Chief announced the approval of a new shipyard at Gwadar, to be completed within three to five years. 12 years since the idea and three years since the latest round of excitement, Pakistan has only been able to sign a MoU that too between its Federal and Provincial Governments, writes Binay Kumar Singh
Zubaida Jalal, Pakistans Minister for Defence Production, recently oversaw the signing of a MoU for construction of a Shipyard at Gwadar. This is a project that has been in the works for many years; at least since 2008.
The latest round of excitement started in 2017, when, in a seminar organised by the Pakistan Navy (PN), its Naval Chief announced the approval of a new shipyard at Gwadar, to be completed within three to five years. 12 years since the idea and three years since the latest round of excitement, Pakistan has only been able to sign a MoU that too between its Federal and Provincial Governments. Even this has been possible only because PN eyes it a form of enriching itself with new sources of income and post retirement jobs.
This is reflective of the larger malaise that afflicts Pakistan’s maritime economy riddled with inefficiencies; bureaucratic hurdles; corruption and the choke hold PN exercises over this sector. Accordingly, while the outlook for the maritime economy remains gloomy, that of PN’s own milbus (military business) represented by the Bahria Foundation, remains bright.
Bahria Foundation, a charitable trust formed to look after the welfare of its personnel, both serving and retired, has expanded into a veritable conglomerate with business tentacles in areas ranging from construction, education, pharmacy, securities, travel, boat building and myriad maritime services like dredging, LNG terminals, shipyards, off-shore exploration, etc.
Pakistan Navy
While there have always been accusations of money being diverted for some of PN’s operations and procurements, it is definitely a scheme for enriching its senior and middle level officers. Many are not aware that PN like its other Sister Services, runs formal ‘retirement’ plans for its senior officers who don’t make it to Chief.
This includes lucrative jobs heading ventures of Bahria Foundation, Ambassadorships, government posts, etc. These plans are mutually discussed and agreed upon so as not to create any bad blood among those not making it to four-star rank. The Bahria Foundation has four ‘pillars’ around which it organises its businesses. These include ‘Bahria Estates’, ‘Commercial businesses’, ‘Bahria Education and Training Services (BEATS)’ and the recently launched ‘Maritime Works Organisation’ (MWO) which forays into new areas like off-shore exploration and LNG terminals.
Formation of the MWO has coincided with Pakistan’s first off-shore exploration effort in collaboration with Exxon Mobil; and efforts at setting up additional LNG terminals to augment falling domestic gas production. While the Exxon Mobil effort failed, the tendering and bidding process for a third LNG terminal is at an advance stage. However, it has virtually been sabotaged by PN which wields the trump card of ‘national security’.
Despite appeals by bureaucrats and ministers, PN is yet to issue a No Objection Certificate for its construction at Port Qasim. However, its open knowledge that the objection is more for promoting its own terminal at Sonmiani Bay than fears of an Indian attack a la 1971.Accordingly, despite multi-national companies having sunk millions of dollars conducting feasibility studies and lobbying with even the Prime Minister, clearances are yet to be issued.
Pakistan Navy(wikipedia)
In the real estate sector too, Bahria Foundation has seen the launch of new ‘Naval Anchorage’ projects including at Islamabad and Gwadar even as the civilian sector has come to a grinding halt due to witch-hunts by central authorities in the name of corruption. It is well known that Pakistan Armed Forces, the biggest land owners in Pakistan (also referred disparagingly by some as the ‘kabza group’), are immune from such proceedings and make millions on dubious real estate deals.
Last year, Pakistan Air Force’s Shaheen Foundation had to pay back home-buyers after it tried to sell property built in the name of its martyrs in the open market. Currently, two off-shore islands off Karachi – Buddho and Bundal Islands, are in the news. These are being eyed by Pakistani real estate magnates offering a Dubai-like living experience even as the common Pakistan lives amidst squalor.
In Gwadar, Bahria Foundation has had a first mover advantage and having procured land at nominal rates is developing or selling them at huge premiums. This is adding to the concerns of the local Baloch who fear marginalization as more and more ‘outsiders’ move in. The Naval Anchorage project offers retired naval personnel a luxurious lifestyle, insulated from the grinding existence of locals, for whom, even basic amenities like water and electricity are a struggle.
PN’s ventures in the education sector too are flourishing with new Cadet Colleges (latest one being at Ormara) and Schools (PN Model Schools) being set up. The University it runs, Bahria University (BU), has also seen expansion with a new campus being set up at Lahore. Existing campuses at Karachi and Islamabad are also seeing addition of new departments like Dental, Engineering, and Science and Technology which were inaugurated just prior the previous PN Chief went on retirement. All this comes at a time when Pakistan’s education sector is seeing a serious resource crunch.
The total budget allocated for Pakistan’s education sector this year (2020-21) is only PKR 83.4 bn which is miniscule compared to PKR 1.7 trn for the Defence. Interestingly, even out of this meagre allocation, PKR 6.6 bn is for military run educational institutions. While PN’s Bahria Foundation flourishes, the overall maritime economy is in a state of mess. As already brought out, plans for a second shipyard and a third LNG terminal are languishing. A look at the Fisheries sector reveals the same story of apathy, mismanagement and corruption.
Fishing mafias abound many of whom are connected to nefarious groups, smugglers and armed gangs that dot Karachi. Over-crowding at Karachi fishing harbour has led to the spawning of illegal jetties at Ibrahim Hyderi which protrude like Helena’s locks into Korangi creek, even as fishing harbours at Gaddani, Ormara, Pasni, etc are silting up due to lack of funds for dredging.
The PMSA makes a killing here trying to act as arbiters to various warring fishing communities and groups leading to its own cycle of corruption. Despite potential, the Fisheries sector contributes a paltry 0.4 percent of the country’s GDP and catch sizes have seen no growth even as the numbers of fishing vessels continue to grow.
This gloom and doom is despite PN having accorded itself the role of arbiters of the maritime economy as part of its ‘significant role’ in nation building.
As per its own claims, PN aims “to act as a catalyst for synergising efforts and optimising resources of various stakeholders in the development of the country’s maritime sector which has lacked vitality despite its vast potential.”
For this it has a dedicated Directorate at Naval Headquarters to coordinate with agencies and the Naval Chief taking on the moniker of the Chief Adviser on Maritime Affairs.
Despite noble intentions, it is clear that PN is mostly interested in its own maritime milbus with hardly a thought for the civilian side of the maritime economy. As part of its firm grip, the Minister for Maritime Affairs makes frequent calls on the Naval Chief to coordinate policy issues and for allocation of lucrative appointments within the myriad departments of Karachi Shipyard and Engineering Works and Karachi Port Trust.
Another example of this neglect is the ship-breaking industry. From being the largest ship-breaking yard in the 1980s, it has fallen to third in ranking after India and Bangladesh and continues its decline.Despite contributing 10-15 percent towards the domestic Steel sector and employing a huge work force, the industry is languishing due to lax controls, uneven taxation, smuggling, poor safety standards, occupational health hazards and non-adherence to the latest international conventions and treaties.
Lastly, its Shipping sector too is stagnating with hardly any growth in the number of Pakistani flagged ships or private shipping companies. Even after 20 years of the launch of an ‘attractive’ Merchant Marine policy in 2001, the total fleet size of Pakistani flagged ships has been nominal. With only 16 percent of its total seaborne trade being carried by Pakistani bottoms, Pakistan continues to lose almost US$5bn per annum in foreign exchange in freight bills due to poor business environment and lack of planning.
Reflective of the larger problem, unless Pakistan’s maritime economy rids itself of its Navy’s choke hold and allows free enterprise, merit and transparency in the system, its prospects would continue to remain under the shadow of gloom even as, PN’s Bahria Foundation blooms.
(Binay Kumar Singh is an author and columnist. He can be reached at Twitter: @BinayBharat. The views expressed are personal)
Strategic Competition Act of 2021′, a legislation that will allow the US to edge out China in all fields—strategic, economic, and diplomatic – is the brainchild of Robert Menendez—chairman of the Senate Foreign Relations Committee and Senator Jim Risch, reports Rahul Kumar
The Joe Biden administration is moving fast. In just 11 weeks, it has honed on China as an enemy that has to be pursued relentlessly and outmanoeuvred. America knows its enemies and how to chase them down.
Two US senators have introduced the ‘Strategic Competition Act of 2021’, a legislation that will allow the US to edge out China in all fields—strategic, economic, and diplomatic. The bulwark of this strategy will be the Indo-Pacific region, which is right now contentious with the South China Sea swarming with warships from numerous countries.
This comprehensive bipartisan legislation is the brainchild of Robert Menendez—chairman of the Senate Foreign Relations Committee and Senator Jim Risch.
A Road Map for the US
The 280-page legislation by the duo puts together US strategic, economic, and diplomatic tools for an Indo-Pacific strategy that will allow the US to square up to China and take on the challenges it poses to its national and economic security. The Strategic Competition Act of 2021 has endorsed the four-member Quad and urges the US to strengthen its relations with like-minded allies.
The Senate Foreign Relations Committee will take up the bill for discussion and voting on Wednesday, April 14. Speaking to the media, Menendez said: “The Strategic Competition Act of 2021 is a recognition that this moment demands a unified, strategic response that can rebuild American leadership, invest in our ability to out-compete China, and reground diplomacy in our core values.”
China: Opportunistic and Hostile
The legislation takes note of the fact that China has attacked countries and increased hostilities when many countries were vulnerable due to the spread of the coronavirus pandemic. It ratcheted up tensions with India by intruding into Indian-held territory where the stand-off still continues.
The document mentions the violent clash at the Pangong Tso after which India was forced to mirror Chinese deployment of men and machinery.
The document says that China has: “capitalised on the world’s focus on the Covid-19 pandemic by its brazen move in the South China Sea, Hong Kong and contributing to increased tensions with India. The China claims nearly all of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan have counter claims over the area.”
Strength in Numbers
The legislation also says that the US values partnerships in the Indo-Pacific region, with the Association of Southeast Asian Nations (ASEAN) countries as well as the Quad. It asks the US to deepen America’s regional partnerships and also cement existing ones with India, Taiwan and New Zealand.
In their document, the two senators say that the US should reaffirm its commitment to the Quad and be prepared to meet regional challenges to promote a free, open, inclusive, resilient, and healthy Indo-Pacific that is defined by democracy, rule-of-law, and market-driven economic growth and is free from undue influence and coercion.
“The United States should reaffirm its commitment to the Comprehensive Global Strategic Partnership with India and further deepen bilateral defence consultations and collaboration with India commensurate with its status as a major defence partner,” the bill says. It also stresses upon the US administration to build Indian capabilities and capacities against “economic and security challenges posed by China.”
Seeks Scrutiny of the BRI in Pakistan
The legislation wants a detailed description from American diplomacy about the Pakistan-China financial collaboration in the China Pakistan Economic Corridor – a part of the Belt and Road Initiative (BRI) that runs through the length of Pakistan. Through the BRI, China plans to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.
Comprehensive and Idealistic
The bill is holistic in its range. It looks at China’s overwhelming reach across the globe, therefore, expects the US to strengthen diplomatic efforts everywhere – the Western Hemisphere, Europe, Asia, Africa, the Middle East, the Arctic, and Oceania.
The legislation lends support to a range of human rights issues like restrictions in Hong Kong as well as forced labour, forced sterilisation and other abuses in Xinjiang. It wants action against China’s IP infringements, Chinese government subsidies, its predatory international policies and track the presence of Chinese companies in US capital markets.
The legislations calls for enhanced cooperation with allies on arms control in the face of China’s military modernisation and expansion, and wants transparency on the entire range of Chinese weapons – ballistic, hypersonic glide, and cruise missiles, conventional forces, nuclear, space, cyberspace and other strategic domains.
Confident the Legislation will make it
Menendez is hopeful that the legislation will find favour. He says: “I am confident that this effort has the necessary support to be overwhelmingly approved by the Senate Foreign Relations Committee next week and the full Senate shortly thereafter. That is the only way we will get the China challenge right – a bipartisan commitment to mutual trust and good-faith compromise, balancing pragmatism and idealism…”
Risch, his partner in the legislation, says that this is an important step towards ensuring that the US is enabled to compete with China for future decades. He adds that the bill also cuts the Communist Party of China’s influence across the globe, particularly in American universities.
2021 bring forth a Series of American Thoughts on China
Interestingly, this is not the first attempt by the US this year to find its place in the world vis-a-vis China. The previous two documents – released in March and January – speak on similar lines.
In March, the Biden administration had revealed a piece of its mind when it released the Interim National Security Guidance paper that identified China as its main global rival. The 21-page vision document was the Biden administration’s pathway to dealing with China, building up a military presence in the Indo-Pacific as well as strengthening ties with allies like Europe and India.
The National Security Strategy document was pragmatic in cautioning that the US along would not be able to restrain China.
Just before that, it was Donald Trump, who declassified the China strategy in January barely a week before stepping down. In an unusual move, Trump laid bare the path for president-elect Biden by publishing the document – ‘United States Strategic Framework for the Indo-Pacific.’
The classified document made clear to the world, and also the incoming Biden administration, American thinking about the geo-political climate pervading the world. The Trump strategy underlined that the US needs to tackle China, accelerating India’s rise as a counterweight to Beijing and also defend Taiwan against a possible Chinese attack.
The US is Loath to see the World as Multipolar
The latest legislation, Biden’s National Security Strategy as well as Trump’s confidential documents are pointers to the American realisation that it is not the sole superpower. Power slipped away from its fingers exactly when it was courting China and China was courting itself.
It goes to the credit of Americans thinkers and policy makers that they have finally noticed the rise of China and how the communist giant is not averse to treading on neighbours’ territories, satisfied with violating international rules and almost cheerful while challenging the US. The observation is late by a few years but they have also located the answers to the confounded China challenge.
The answers lie in gathering allies, enforcing the international rule of law, flexing military muscles as well as holding China and its ruling party accountable for its misdemeanours.
(This content is being carried under an arrangement with indianarrative.com)
A diversified funding strategy was created to ensure that the ember states of the bloc would receive loans under the package known as the NextGenerationEU …reports Asian Lite News
The European Commission announced that it would borrow 800 billion euros from the capital market in current prices until 2026 to fund the European Union’s (EU) massive plan to bail out its Covid-stricken economy.
A diversified funding strategy was created to ensure that the ember states of the bloc would receive loans under the package known as the NextGenerationEU at an advantageous rate, reports Xinhua news agency.
The EU has set December 2058 as a deadline for itself to fulfil all the repayment, and plans to generate new own resources to strengthen the repayment capability.
Making the announcement at a press conference on Wednesday, European Commissioner for Budget and Administration Johannes Hahn also urged EU member states which have not ratified the Own Resources Decision to do so as soon as possible.
EU’s ‘Green Certificate’ for safe travel
“The message is clear: as soon as the Commission has been legally enabled to borrow, we are ready to get going,” said Hahn.
So far, Germany, Estonia, Poland, Hungary, Austria, Finland, Romania, the Netherlands, Ireland and Lithuania have not ratified the Decision.
All other 17 have ratified it, according to Hahn.
The EU has decided to release a historic stimulus package worth 1.8 trillion euros in 2018 prices, or over two trillion euros in current prices, to help the bloc tackle the economic fallout of the pandemic and achieve a greener and more digital recovery.
Companies who want to be part of the program can apply online to check eligibility, reports Asian Lite News.
More than 850 companies have applied to join the ‘“Made in Saudi” program. Faisal Al-Bedah, the secretary-general of the Saudi Export Development Authority, said the program’s objectives of increasing domestic consumption and market share of domestic goods and services. The program will also look to increase Saudi non-oil exports in priority export markets, and enhance attractiveness of the Saudi industrial sector for domestic and foreign investment.
He said the “Made in Saudi” program promoted national identity, boosted the contribution of the private sector to the economy, launched the capabilities of promising non-oil sectors by developing their exports, and enabled the creation of teams through small and medium-sized enterprises and micro-enterprises.
Companies who want to be part of the program can apply online, with an initial verification done through a dedicated website to check companies’ eligibility.
Products should be grown, extracted or produced in Saudi Arabia and fall under one of the listed industries: Construction, textiles, pharmaceuticals and medical, processed foods, or fresh produce.
“Made in Saudi” will play a role in achieving the Kingdom’s Vision 2030 reform plan by supporting Saudi products and directing purchasing power toward local products and services, leading to the private sector’s contribution to the gross domestic product (GDP) to 65 percent and raising the proportion of non-oil exports in the total non-oil GDP to about 50 percent by 2030.
Minister of Industry and Mineral Resources Bandar bin Ibrahim Al-Khorayef, who is also the authority’s chairman, launched the initiative under the patronage of Crown Prince Mohammed bin Salman.
“The program aims to help local businesses grow by encouraging local consumers to buy more locally made products and helping businesses to increase their exports to priority markets,” said Al-Khorayef. “Under one unified brand, the ‘Made in Saudi’ program will bring significant opportunities for businesses to expand their reach and promote their products domestically and globally.”
Move to create 1.3 million mining, industrial jobs
Earlier, Minister of Industry and Mineral Resources Bandar Alkhorayef said the initiative will create 1.3 million jobs in the mining and industrials sectors for the citizens.
“We currently have 10,000 factories in the Kingdom, with investments of 1.1 trillion ($293 billion), and the Kingdom’s products reach more than 178 countries around the world,” Alkhorayef said.
A strategic plan to develop the consumer products industry through localization is in place, he said.
Earlier, Crown Prince Mohammed bin Salman launched Shareek, an SR12 trillion program to boost the role of the private sector in diversifying the economy.
Under the program, private sector businesses will be helped to invest SR5 trillion between now and 2030, along with SR3 trillion from the country’s sovereign wealth fund, the Public Investment Fund (PIF), and SR4 trillion as part of a new national investment strategy.
Figures released by IMF Chief Economist Gita Gopinath reveal that India has regained its status as the world’s fastest growing economy, reports Arul Louis.
India’s economy is projected to grow at the historically high level of 12.5 per cent this fiscal year, but the International Monetary Fund’s (IMF) Chief Economist Gita Gopinath cautioned that the current wave of the pandemic “is quite concerning.”
The growth projection was raised on the basis of “evidence we were getting in the last couple of months in terms of the normalisation of economic activity,” she said at the release of the World Economic Outlook (WEO) report in Washington.
“These numbers precede the current wave of the virus, which is quite concerning,” she added.
With the unprecedented growth rate projection of 12.5 per cent not seen in modern times, India also regains its status as the world’s fastest growing economy, according to the WEO.
Malhar Nabar, the Division Chief in IMF’s Research Department, said, “The current forecast that we have already takes a fairly conservative view on the sequential growth for the Indian economy for this year.”
“But it’s true that with this very worrying uptick in (COVID-19) cases that poses very severe downside risks to the growth outlook for the economy,” he added.
The WEO projected India’s gross domestic product (GDP) growth to moderate to 6.9 per cent in next fiscal year, while still retaining the top growth rate spot.
Any elation over the historically high rate is, however, moderated by the fact of India’s negative growth rate of 8 per cent during 2020-21.
The growth rate projection for 2021-22 is 1 per cent higher than the 11.5 per cent projection made by the IMF in January and 5.1 per cent more than the 7.4 per cent in April last year.
The previous highest GDP growth rate in modern times for India was recorded in 2010 at 10.3 per cent, and the records before that were 9.8 per cent set in 2007 and 9.6 in 1988, according to IMF data.
The IMF growth rate projection for India is nearly in line with the 12.6 per cent from the Organization for Economic Cooperation and Development (OECD) last month.
Gopinath struck a note of optimism for the world economy, which was projected by the IMF to grow by 6 per cent this year, an increase of 0.5 per cent from the January figure.
She wrote in a foreword to the WEO, “Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible.”
“Adaptation to pandemic life has enabled the global economy to do well despite subdued overall mobility, leading to a stronger-than-anticipated rebound, on average, across regions,” she added.
However, she also warned, “A high degree of uncertainty surrounds these projections, with many possible downside and upside risks. Much still depends on the race between the virus and vaccines. Greater progress with vaccinations can uplift the forecast, while new virus variants that evade vaccines can lead to a sharp downgrade.”
India’s projected growth rate is 4.1 per cent higher than that for China, which ranks next with 8.4 per cent.
But China was the only major economy to have a positive growth last year of 2.3 per cent, while the rest of the world was in the red.
The global economy shrank by 3.3 per cent last year.
Advanced economies are projected to grow by 5.1 per cent after a 4.7 per cent dip last year.
Within that group the US is projected to be the best performer with a 6.4 per cent growth next year after a 3.5 per cent shrinkage last year. That is the highest growth for the US since 1984 when it recorded 7.2 per cent.
India’s gross domestic product (GDP) growth is projected to moderate to 6.9 per cent next fiscal year, while still retaining the top growth rate spot…reports Asian Lite News
Emerging from the Covid-19 disruptions, India’s economic growth is projected to reach the historically high level of 12.5 per cent this fiscal year and also regain its status as the world’s fastest-growing economy, the International Monetary Fund (IMF) reported on Tuesday.
India’s gross domestic product (GDP) growth is projected to moderate to 6.9 per cent next fiscal year, while still retaining the top growth rate spot, according to the World Economic Outlook (WEO) released by the IMF in Washington.
The high growth rate not seen in modern times is, however, moderated by the fact of India’s negative growth rate of 8 per cent during 2020-21.
It was made before the latest new wave of rising Covid-19 cases in India and is predicated on there being no lockdowns or serious disruptions.
The 12.5 per cent growth rate for 2021-22 is 1 per cent higher than the 11.5 per cent projection made by the IMF in January and 5.1 per cent more than the 7.4 per cent in April last year.
The previous highest GDP growth rate in modern times for India was recorded in 2010 at 10.3 per cent, and the records before that were 9.8 per cent set in 2007 and 9.6 in 1988, according to IMF data.
The IMF growth rate projection for India is nearly in line with the 12.6 per cent from the Organisation for Economic Cooperation and Development (OECD) with 37 member nations, although it was a tad lower.
IMF’s Chief Economist Gita Gopinath struck a note of optimism for the world economy, which was projected by the IMF to grow by 6 per cent this year, an increase of 0.5 per cent from the January figure.
She wrote in a foreword to the WEO: “Even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible.”
“Adaptation to pandemic life has enabled the global economy to do well despite subdued overall mobility, leading to a stronger-than-anticipated rebound, on average, across regions,” she added.
However, she also warned: “A high degree of uncertainty surrounds these projections, with many possible downside and upside risks. Much still depends on the race between the virus and vaccines. Greater progress with vaccinations can uplift the forecast, while new virus variants that evade vaccines can lead to a sharp downgrade.”
Latest World Economic Outlook(ians)
India’s projected growth rate is 4.1 per cent higher than that for China, which ranks next with 8.4 per cent.
But China was the only major economy to have a positive growth last year of 2.3 per cent, while the rest of the world was in the red.
The global economy shrank by 3.3 per cent last year.
Advanced economies are projected to grow by 5.1 per cent after a 4.7 per cent dip last year.
Within that group the US is projected to be the best performer with a 6.4 per cent growth next year after a 3.5 per cent shrinkage last year. That is the highest growth for the US since 1984 when it recorded 7.2 per cent.
EDB’s move to provide support to businesses and start-ups set to drive the national economy, reports Asian Lite News
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, approved the Emirates Development Bank (EDB) Strategy to provide a sizeable AED30 billion financial support to businesses and start-ups in a major step to drive the national economy.
Launched to support “Operation 300bn”, the EDB Strategy aims to leverage the Bank’s role as a key driver of the national economy to provide the largest support network for the industrial sector.
Sheikh Mohammed bin Rashid Al Maktoum said, “Advancing the national economy is a top priority that requires a joint effort of all our economic entities in the coming phase.”
He added, “We must adopt a distinctive vision that meets global trends and sustains development to maximise the industrial sector’s revenue and boost the broader economy. The Emirates Development Bank Strategy presents a giant leap that will leverage the bank’s role as a key driver of the national economy. Providing effective financial solutions will support the role of SMEs as main players in shaping our national economy.”
The EDB Strategy was launched in the presence of H.H. Lt. General Sheikh Saif bin Zayed Al Nahyan, Deputy Prime Minister and Minister of the Interior; H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs; and H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, among other delegates and officials.
Sheikh Mohammed bin Rashid had launched Operation 300bn earlier in March as a 10-year comprehensive strategy to more than double the industrial sector’s contribution to the country’s GDP, positioning the UAE as a global industrial hub by 2031.
Supporting Operation 300bn Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Chairman of EDB, presented the Bank’s strategy pillars and objectives.
Under the strategy, the Bank allocated a portfolio of AED30 billion to support priority industrial sectors over a period of five years, which will contribute to financing more than 13,500 SMEs and creating 25,000 jobs.
Al Jaber noted that the launch of the strategy is based on the Bank’s role as a key driver of the national economic development that provides a large support network for the industrial sector in line with the Industrial Strategy 2021-2031 objectives.
He said, “Operation 300bn is a comprehensive national programme aimed at enhancing the contribution of the industrial sector to the UAE’s sustainable economic growth. Through close collaboration, the Ministry of Industry and Advanced Technology and the Emirates Development Bank will extend support to large corporations, SMEs and entrepreneurs across various industries including healthcare, infrastructure, food security and technology.”
Al Jaber noted that EDB will act as a critical financial engine for the national industrial strategy Operation 300bn, alongside its continued mandate to provide Emiratis with housing finance. “The new EDB strategy will help accelerate industrial development and the adoption of advanced technology through dedicated financing programmes and will also provide dedicated investment funds that will support entrepreneurs, start-ups and SMEs.”
In addition to providing flexible housing solutions, EDB will complement its offering to companies and entrepreneurs with training, counselling and guidance for UAE citizens and residents. “EDB aims to cultivate a spirit of innovation, with a focus on the industries our leadership have identified as critical to the nation’s long-term sustainable growth,” he said.
Al Jaber noted, “EDB will provide other tools including supply chain support, project financing, long-term financing, business accelerators, equity capital financing, and a business growth support fund.”
He added that maintaining and furthering sustainable economic development in the post-COVID-19 era is a priority for the UAE’s leadership.
Indian Prime Minister Narendra Modi with Vice President and Prime Minister of UAE Mohammed bin Rashid Al Maktoum in Dubai
“We are grateful to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, for approving the Emirates Development Bank’s new strategy, which aims to stimulate entrepreneurship and innovation across the UAE’s vibrant industrial sector by providing financing solutions to large companies, entrepreneurs and SMEs. Through the directives of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, the UAE continues to reinforce its global reputation for progress and ingenuity as it prepares for the next 50 years.”
He added, “His Highness Sheikh Mohammed bin Rashid Al Maktoum is confident our country will reach many important milestones in the next 50 years. And His Highness Sheikh Mohamed bin Zayed Al Nahyan has emphasised the need for a unified national effort, calling on the entire country to multiply their efforts ten-fold to ensure the nation’s ambitious goals are met.”
Al Jaber stated that “Alongside the close cooperation between the Ministry and the EDB, Operation 300bn is the result of a tremendous collaborative effort with our stakeholders, which has in turn enabled and allowed us to develop practical, integrated solutions that we can begin implementing right away.” The Bank will also launch an AED1 billion investment fund for start-ups and SMEs in 2022 and targeting industrial companies in priority sectors that need financing and investment
Iranian Foreign Minister Mohammad Javad Zarif and his Chinese counterpart, Wang Yi signed the deal which aimed at expanding ties in the next 25 years…reports Asian Lite News
Iran and China have inked a long-term cooperation agreement in Tehran, the state television reported.
The comprehensive agreement signed on Saturday by Iranian Foreign Minister Mohammad Javad Zarif and his Chinese counterpart, Wang Yi, aims to expand bilateral cooperation in various fields in the next 25 years, DPA news agency reported.
The agreement paves the way for billions in Chinese investment in Tehran, and in return, Iran wants to supply oil to Beijing at favourable prices. Military cooperation is also part of the plans.
State Councilor and Foreign Minister Wang Yi held talks with Iranian Foreign Minister Javad Zarif in Tehran. pic.twitter.com/SToC4Jsiru
Iranian President Hassan Rouhani described cooperation with China as strategic and said that the new agreement will deepen this partnership even further. “We want China to be a major trading partner,” he said during his meeting with Wang Yi on Saturday.
Iran is facing a crippling economic crisis due to sanctions imposed by the US in 2018, which have been exacerbated by the coronavirus pandemic. With US President Joe Biden seemingly unwilling to lift sanctions in the short term, the government in Tehran has been aligning itself more closely with Russia and China.
