Oct 1 to mark Pak-UAE JMC session in 11 years: Inter-ministerial meeting gets update on future strategy

ISLAMABAD: Pakistan and the United Arab Emirates (UAE) are all set to hold 12th session of Joint Ministerial Commission (JMC) on October 1, 2024, after a gap of nearly 11 years, focused on enhancement of cooperation in different fields including economy.

In this regard, an inter-ministerial meeting was held in Ministry of Economic Affairs under the chairmanship of Special Secretary Humair Karim for an update on deliverables and future strategy for cooperation between both the countries.

Representative of Commerce Ministry stated that FPCCI has communicated in writing to the Ministry their willingness to hold Joint Business Council meeting on the sidelines of 12th JMC session.

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Ministry of Foreign Affairs noted that UAE side is very keen to sign Memorandum of Understanding on JBC for establishing B2B connection.

UAE shared Terms of Reference (ToRs) of their JBC with France so that Pakistan side will follow the same pattern. This was shared with Ministry of Commerce and Federation of Pakistan Chambers of Commerce and Industry.

Commercial Counsellor, Dubai maintained that export enhancement strategy has been shared with Ministry of Commerce wherein priority sectors, products and targets have been identified for next three years. He suggested that FPCCI may also go through the same and focus on the sectors mentioned in the strategy because only traditional sectors have been specified based on UAE market intelligence. Moreover, businessmen from only those sectors are to be encouraged.

The representative of Commerce Ministry informed that views of TDAP and FPCCI on the strategy have been received.

He also stated that strategy is a kind of roadmap in which export enhancement plan is given on yearly basis in different sectors and products and trade exhibitions are also covered therein. However, it needs to be further enhanced.

He further said that strategy is the first phase, in second phase, concurrence/match making of UAE side will also be sought on sectors, products and targets specified in the strategy.

During deliberation on investment opportunities, representative of Board of Investment revealed that seven investment MoUs had been signed in November 2023 between the two countries. Pakistan Mission suggested that Pakistan may present tangible and deliverable projects to the UAE side in the fields of port operation, energy, mining, logistics, waste water treatment, banking and finance, foods and agriculture during the Joint Ministerial Commission.

According to Ministry of Privatisation, a Committee under Secretary Privatisation and Chief Executive Officer, Etisalat held a meeting on July 4, 2024 wherein Pak side presented recommendations on the outstanding payment issue to UAE side.

The meeting also obtained progress on MoUs related to Finance and banking sector: (i) MoUs related to exchange of information related to money laundering and terrorist financing with Financial Intelligence unit (FIU) UAE and Financial Monitoring Unit, Pakistan; and (ii) MoU on banking cooperation in the field of supervision, exchange of supervisory information.

Representative of Finance Division informed that the MoU had been signed on September 2020 and is fully implemented. He further noted that State Bank of Pakistan shared the draft MoU with UAE side for consideration, however, response is awaited. Representative of Foreign Ministry stated that they sent a reminder of this MoU to UAE side on July 30, 2024.

The meeting directed the concerned Ministries to provide implementation status/effectiveness of MoU to FIU/FMU to brief the Deputy Prime Minister/Foreign Minister. It was also directed to provide a fresh proposal of cooperation between EXIM Bank, Pakistan and counterpart in UAE.

Sharing update on amendment in the avoidance of double taxation agreement, representative of UAE informed that a meeting between Federal Board of Revenue and relevant stakeholder from UAE scheduled in May 2024 was cancelled and new dates have been requested from UAE side.

On cooperation in the field of customs wing, FBR informed that they intend to sign MoU on Electronic Date Interchange (EDI) with UAE side. He shared that both parties have been working on the draft MoU since long and are almost agreed on the MoU. MoFA has been requested to seek suitable date for signing the MoU from UAE side. Once the dates are received, cabinet’s approval will be sought to sign the MoU.

Representative of Petroleum Division, Rushna Fawad informed that exploration and petroleum companies of Petroleum Division acquired interest in offshore block-5 in Abu Dhabi during August 2021.

Now, these companies are contemplating to participate in the 2024 onshore blocks bid round announced by the Government of UAE for which some of these companies have been pre-qualified as strategic business partners with special reference to OGDCL, that has signed a Non-Disclosure Agreement (NDA) with M/s Pakgas. These companies are currently viewing the data and business economies. She also informed that contact between Petroleum Division and Mubadla Petroleum has been established with the help of MoFA.

As regards status of MoU signed between M/s Energy Pak and M/s Investment UAE in mining sector on November 27, 2023, she stated that M/s Mari Petroleum is designated from Pakistan side to deal with International Resource Holding (IRH), UAE. Both companies are in contact with each other and term sheet has been shared by Mari Petroleum with IRH which is under process there. It is expected that if terms are agreed Pak side will be able to establish joint venture within 25 days.

On downstream oil sector, representative of Petroleum Division informed that regarding circular debt of Pak Arab Refinery Company (PARCO) this is a commercial activity which is conducted between M/s PARCO and different OMCs. It is part of the commercial contact which is B2B business.

Since Petroleum Division is not involved in the activity, therefore, this does not relate to the Government. He further informed that PARCO, since inception, has been involved in many of the contracts of trading products with different OMCs. This is all about Late Payment Surcharge (LPS) which is part of the B2B contract and it is an ongoing issue which is negotiated among different OMCs.

Copyright Business Recorder, 2024