BUSINESS 11
Monday, 12 March, 2018
facebook invests in music-streaming, makes deal with Warner music NEW YORK AGENCIES
QUETTA: Vendor sells used bags to earn a livelihood to support his family. PPI
faTf gRey-liSTing doeS noT affeCT PakiSTan'S abiliTy To boRRoW: imf dePUTy diReCToR
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NEWS DESK
HE grey-listing of Pakistan by the global watchdog Financial Action Task Force (FATF) has no direct consequences for its ability to borrow from the International Monetary Fund (IMF). IMF Deputy Managing Director Tao Zhang has said, “Any decision to list a country as a jurisdiction with strategic Anti-Money Laundering/Combating the Financing of Terrorism deficiencies is the responsibility of the FATF only. I would note that a grey-listing has no direct consequence for a member country’s ability to borrow
from the IMF”. At the same time, he also acknowledged that the structural reform agenda of Pakistan remains incomplete. “Pakistan completed an IMF-supported programme under the Extended Fund Facility in September 2016. While the programme was successful in its objective of macroeconomic stabilisation, and some progress was made on structural reforms, the agenda remained incomplete,” Zhang said. Early this week, the IMF noted with concern the weakening of the macroeconomic situation, including a widening of external and fiscal imbalances, a decline in foreign exchange reserves,
and increased risks to Pakistan’s economic and financial outlook and its medium term debt sustainability. In this context, they urged a determined effort by the authorities to refocus near term policies to preserve macroeconomic stability. Projecting a GDP growth of 5.6 per cent in 2017-2018, IMF executive board after concluding the first PostProgram Monitoring Discussions said that the continued erosion of macroeconomic resilience could put this outlook at risk. Following significant fiscal slippages last year, the fiscal deficit is expected at 5.5 per cent of GDP this year, with risks towards a higher deficit
ahead of upcoming general elections. Surging imports have led to a widening current account deficit and a significant decline in international reserves despite higher external financing, it said. The fiscal 2017-18 current account deficit could reach 4.8 per cent of GDP, with gross international reserves further declining in a context of limited exchange rate flexibility. Against the background of rising external and fiscal financing needs and declining reserves, risks to Pakistan’s medium-term capacity to repay the fund have increased since completion of the Extended Fund Facility (EFF) arrangement in September 2016, the IMF said.
ICCI demands to form reconciliation committee to resolve rent disputes ISLAMABAD ONLINE
Islamabad Chamber of Commerce and Industry (ICCI) Senior Vice President Muhammad Naveed has urged the government to form a reconciliation committee under the aegis chamber to settle rent disputes of traders. He said this while talking to Anjuman-e-Tajiran Islamabad President Ajmal Balouch, who called on him during his visit to ICCI. ICCI Vice President (VP) Nisar Ahmed Mirza was also present during the meeting. ICCI VP said that the incidents of forced evictions of traders from shops due to rent disputes have re-
cently increased in the federal capital and that has created great concerns in the trading community. “The absence of a new rent law was giving rise to such incidents and called upon the government to arrange early promulgation of Rent Control Act in Islamabad to protect the traders from further problems”, he added. He assured that ICCI would all moves for early promulgation of Rent Control Act in Islamabad to facilitate the growth of trade activities in the federal capital. Muhammad Ajmal Baluch said that in consultation with all stakeholders, an amended bill of a balanced rent control act for Islamabad was prepared and presented a long time ago in the National Assembly that has not been passed into law as yet.
“The delay in its enactment was creating frustrations in the trading community and stressed that the government should get the bill passed from parliament without wasting further time to resolve this major issue once for all”, Baloch added. Nisar Ahmed Mirza, during the meeting, has assured the visiting trader leader Ajmal Baloch that the chamber would fully cooperate with the business community to resolve their problems on priority basis.
Facebook on Friday announced a licensing deal with Warner Music, the last of the major label groups to sign with the social media giant which is promising more personalised music. Facebook’s two billion users will soon be able to post in more creative ways with the catalogue of Warner, whose artist roster includes Ed Sheeran, Coldplay and the late Prince. “Our partnership with Facebook will help expand the universe of music streaming and create supplementary revenue for artists,” said Ole Obermann, chief digital officer of the Warner Music Group. “Fan-created video is one of the most personal, social and often viral ways that music is enjoyed, but its commercial potential is largely untapped,” he said in a statement. Warner said it had been holding out for “the best possible deal” after its two rivals, Universal Music and Sony Music, signed deals with Facebook in recent months. Facebook has said that it is looking at more personalised ways in which users can post music, including through Messenger and Instagram, the picture-driven social media platform owned by Facebook. Mark Zuckerberg’s company has largely taken a back seat on music streaming as other mega-companies such as Apple and Google invest heavily in the growing sector. While music postings are omnipresent on Facebook, the company has sought to take down embedded content that is copyrighted without licensing. When not uploading their own homemade videos, fans link to other sites such as YouTube and Spotify.
macron pledges 700 million euros for new solar projects in developing countries NEW DELHI APP
French President Emmanuel Macron on Sunday pledged hundreds of millions of dollars for solar projects in developing countries, as world leaders met in India to promote greater investment in renewable energy. Macron, who in December warned that the global shift to a green energy future was too slow, said France would extend an extra 700 million euros ($861.5 million) through loans and donations by 2022 for solar projects in emerging economies. France had already committed $300 million euros to the initiative when it co-founded with India a global alliance in 2015 to unlock new cash for solar projects in sunny yet poor nations. "We need to remove all obstacles and scale up," Macron said at the launch of the International Solar Alliance in New Delhi on Sunday. Prime Minister Narendra Modi, who has committed to reducing India's sizeable carbon footprint through a massive scale-up in renewable energy, said it was vital that nations were not priced out. "We have to make sure that a better and cost-effective solar technology is available to all," Modi told the gathering of investors and world leaders from about 20 mainly African nations. "We will have to increase solar in our energy mix." India, the world's third-largest polluter, is undergoing spectacular growth in its solar sector and is on track to become one of the world's largest clean energy markets.
Saudi Arabia places order of 48 Typhoon jets with BAE Systems LONDON AGENCIES
Britain has signed a multi-billion-pound preliminary order from Saudi Arabia for 48 Eurofighter Typhoon fighter jets, military equipment maker BAE Systems said on Friday. The lucrative deal was unveiled on the third and final day of Saudi Crown Prince Mohammed bin Salman’s visit to Britain. BAE Systems added in a statement that the order would help Riyadh modernise its armed forces under the
kingdom’s ‘Vision 2030’ economic plan, while no financial details were given. Eurofighter was developed by a European consortium that also comprises Italy’s Finmeccanica and Franco-German civilian planemaker Airbus. “The UK Government has signed a Memorandum of Intent with the Kingdom of Saudi Arabia to aim to finalise discussions for the purchase of 48 Typhoon Aircraft,” BAE Systems said in a brief statement to the London Stock Exchange. “This is a positive step towards agreeing a contract for our valued partner."
“We are committed to supporting the Kingdom as it modernises the Saudi Armed Forces and develops key industrial capabilities critical to the delivery of Vision 2030.” The news comes after Qatar inked a deal late last year to buy 24 Typhoon jets for some $8 billion. Friday’s blockbuster announcement follows long-running discussions with Saudi Arabia, which already has a total of 72 Eurofighter Typhoon planes in its fleet. The news also comes just two weeks after BAE posted sliding annual net profits but forecast improving defence
budgets across its major markets. Late last year, however, BAE said it planned to axe 2,000 jobs, and had partly blamed weaker demand for Hawk and Eurofighter Typhoon fighter jets. In reaction, BAE’s share price jumped 2.17 per cent to finish at 601.80 pence on London’s benchmark FTSE 100 index, which ended 0.3 per cent higher at 7,224.51 points on Friday. “BAE Systems enjoyed an afternoon boost after news broke,” noted CMC Markets analyst Michael Hewson. He added that the news would “se-
cure hundreds of jobs in the process”. The deal confirmation followed intense speculation over the large aircraft order, which has been under discussion for many years according to media reports. The Eurofighter Typhoon, a competitor to the Rafale jet manufactured by French arms maker Dassault has four major customers comprising Austria, Kuwait, Oman and Saudi. Back in April 2016, the Saudi government approved major reform plans dubbed “Vision 2030” that are aimed at diversifying the nation’s oil-dependent economy.