PAKISTAN AMERICAN BUSINESS ASSOCIATION

PABA NEWS Issue No. 20 August, 2016

Pakistan has approximately 189 million people with a population growing two percent on average every year. Pakistan has a large consumer market with the 4th largest middle class population in Asia.

The economy has grown annually around four percent of GDP per capita over the last several years. By 2050, it will be the 31st largest economy in the world with a total population close to 300 million making it the 4th largest by population in the world. A “divorce” be-tween the US and Pakistan is not likely. In fact, in-creased business engagement between the two countries would likely change the “facts on the ground” in a way that gets at some of the core challenges in the relation-ship.

Pakistan is also among the world’s fastest urbanizing countries with half its people projected to live in cities by 2050. Twenty years ago, Islamabad had a population of 400,000; today, it has a population of around 3 million includ-ing the peri-urban areas. Many Pakistani cities are undergoing a similar urbanization process, and this will create mas-sive demands on food, energy, water, and consumer goods. It is important then to acknowledge the political and secu-rity challenges that Pakistan faces without neglecting the business opportunities that a growing economy offers.

Fighting the Taliban

Despite disagreements, the U.S. and Pakistan have been partners in fighting terrorism since the Afghanistan war in 2001. Pakistan has also suffered attack from the terrorists, for example in January 2016, when 19 people got killed at the Bacha Khan University in Charsadda in northwest Pakistan. Three months later a suicide attack targeting Christian families killed more than 70 people at a park in Lahore. The U.S. supports Pakistan’s counter-terrorism efforts and provided $265 million in FY 2015.

By Daniel Runde

In Spite of the Headlines, Pakistan is a Country of Many Investment Opportunities

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Economic Growth

Macroeconomic and structural reforms over the last years have narrowed the budget deficit and raised GDP growth to a stable 4.5 percent despite large energy deficits, and built foreign re-serves up to $21.3 billion. Low oil prices and the $14 billion in annual remittances the country receives from its 6 million-strong diaspora have also helped. There has been substantial progress in reducing pov-erty, which has fallen to 9.3 per capita in 2014 from 34.7 per capita in 2002; in rural areas, poverty has dropped from 40 to 15 percent during the same period.

The U.S. is the largest export destination for Pakistan, account-ing fro 16 percent of exports in 2015. Bilateral trade exceeded $5.1 billion in FY 2015. The U.S. is also one of the largest sources for For-eign Direct Investment (FDI), which in 2015 reached $209 million. USAID in partnership with the private sector and the Pakistani government has set $150 million of new investsment in Pakistani for SMEs.

With 90 percent of the country employed through SMEs, Pakistan has one of the most entrepreneurial econo-mies in the world. Complete foreign equity is permitted in the infrastructure and manufacturing sectors, helping drive FDI to $1.5 billion in 2013, a 76 percent increase over the previous year but still far too small for such a big country.

Opportunities Not Challenges

Areas of growing business are in infrastructure, water and power. In contrast to India, in Pakistan complete for-eign ownership with full repatriation of capital is allowed for the infrastructure and the social sector. For agricultural

sector only 60 percent of foreign ownership is allowed. By May 2017, Pakistan will also be readmited to the emerging market index from MSCI.

Other business opportunities for investors are in the in the basic, vocational and higher education sectors, the information tech-nology (IT) sector and consumer services including service stations.

Other sectors that present promising investments opportunities are re-newable energy, commercial real estate properties and the travel, tour-ism and hospitality sector.

The United States should continue to work with the current re-formist government encourage regulatory and policy reforms. Negoti-ations for a U.S.-Pakistan Bilateral Investment Treaty (BIT) have stalled due to reservations on both sides, but a successfully con-

cluded BIT would be a strong signal of certainty and stability for US based investors interested in deeper engagement in Pakistan.

Despite the legitimate political and security concerns raised, the U.S. and Pakistan have almost no choice but to work together, therefore divorce is not an option. American investors need to take a long-term view of the opportuni-ties in Pakistan.

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Daniel F. Runde is director of the Project on Prosperity and Development and holds the William A. Schreyer Chair in Global Analysis at Center For Strategic & International Studies.

PABA to Perform Closing Bell Ceremony at NASDAQ

The Pakistan American Business Association is proud to organize a Closing Bell Ringing Ceremony

at NASDAQ to celebrate Pakistan’s Independence Day. The ceremony will be held on August 25 at

NASDAQ Stock Market in Times Square, New York. Pakistan’s Ambassador to the United Nations, Dr.

Maleeha Lodi will be chief guest. Chairman PABA, M. Siddique Sheikh and members of Board of Directors

including Mr. Steve Webster, Mr. Shakeel Tufail and Mr. Sajjad Qamar will represent the association.

Date: August 25, 2016

Venue: NASDAQ MarketSite, 4 Times Square New York, NY 10036

Chief Guest: Dr. Maleeha Lodhi, Pakistan’s Ambassador to the

United Nations

The introduction of PPACA (the Patient Protection and Affordable Care Act) or simply ObamaCare back in 2010 brought many important changes with it. It eradicated several health related discrimination issues and removed the limits on the amount of care a patient needs.

Affordable Care Act also opened access to an array of affordable or close to free health insurance options for the millions of American families across the United States.

This is what the Federally Facilitated Marketplace, also known as an Exchange, was established for. Marketplace is where the government offers subsidies to help make health plans more affordable for those who meet certain income qualifications. Everybody, whose individual or family income is considered average or low, has a right to apply for the medical insurance on Exchange. If you are found eligible for financial assistance, the government will give you subsidy to purchase an affordable insurance. You will not be receiving a cashier’s check;

rather the government will pay the insurance company directly and the insurance carrier will use this money to reduce the cost of the health insurance for you. Look at it a discount directly applied to your medical plan rate.

To estimate whether your individual or family income qualifies for any savings programs, which your state offers, you will need to provide Marketplace with the expected income for upcoming calendar year you are applying for. Your most re-cent year’s adjusted gross income is a good start. Just don’t forget to update it for any upcoming changes.

You also need to provide a household count. It is im-portant to include right people in your household. You want to count in your spouse whom you are legally married to under the law of the state you live in.

You can also include anybody whom you claim as a dependent on your tax return regardless of age. This can

be dependent children including adopted and foster children; parents; dependent siblings and other relatives.

Non-dependent children under the age of 26 can also be included into household count if you plan on covering them by your Marketplace health plan.

And what if you are single and have no dependents? In case you have no tax dependents and you are not claimed as a tax dependent by someone else, you can count only yourself in your household. If you are claimed as a tax dependent by some-one else, you are being counted as a part of their household and not your own.

You can enter the information about your income and household size on Marketplace website www.healthcare.gov. to get an idea about the subsidy you may qualify for.

The final decision will be made by Marketplace after you submit the completed application along with supporting documentation. Marketplace will review your paperwork and mail you your eligibility results.

There are several ways how to submit your application to Marketplace. You can do it online through the website. You

can also do it by phone; in this case customer service repre-sentative will help you fill out an application, review your choices with you and enroll you into coverage.

You can also complete and mail a paper application. It takes on average 2 weeks to receive your eligibility results. After that you will need to complete you enrollment online or by calling the Marketplace Call Center.

Lastly there are walk-in centers in your community where trained people like Navigators or assisters can help you fill out an application and enroll in coverage. Also an agent or a broker is your trusted source of information and help.

And what if you are employed and have an access to Employer-sponsored health coverage? Does it mean you can’t shop and get coverage through Marketplace? Sure, you can. You are free to explore all options available to you.

But there is a very important thing to remember. If your Employer has medical plan options in place, which provide minimum essential coverage and are considered affordable based on existing regulations AND you are eligible to enroll in Employer-sponsored health plan, you are no longer eligible for the tax credit and cannot apply for the subsidies through Mar-ketplace.

Neglecting it and providing false information to Mar-ketplace about the availability of health coverage through your work may result not only in return of all unrightfully received subsidies, but possibly also in fines and cancellation of your health plan.

Individual Marketplace Health Insurance Plans

This article has been contributed by Beaini Financial Solu-tions and is only for general informational purposes. BSF makes no representation or warranties regarding its accu-racy or completeness. The information provided is not a legal or tax advice or recommendation of any kind. For contact: info@BFS-Partners.com (703-610-4094)

Years ago, President Bill Clinton coined the phrase “it’s the economy stupid,” which helped propel him into the White House. Witnessing the current Presidential elections, I am inclined to change that phrase to “it’s the culture stupid.”

All too often in life AND in education we focus on economic expectations. Will what I am doing get me the best paying job? Are the policies of the nation helping me earn a living or are they not? Should we build a wall at the Mexican boarder and ban people of the Islamic faith from entering the United States? Will it make me safer and protect my livelihood if we do?

I want to register a resounding NO to this way of thinking. It is not only bad for our nation; it is based on a false sense that we can fix the world with money and iso-lationism. We can’t.

What then are we to do?

Honor our culture and the magnificent variations that the human race has developed throughout all of time and around the world. It is our very differences that make us vibrant. And it is extremely important that as parents, we celebrate the culture of our own birth and our identity with our children, with our neighbors and with our com-munity. That is what will get us out of this political mess and will enable all to flourish. It will give our children courage.

Culture is the one thing all living beings have to draw upon. We are born into it. It is expressed in the clothing we wear, the food we prepare, the songs and po-ems we sing, the homes we build – and the education we pursue. But, it is not enough to enjoy these things in pri-vate, they must be shared. For it is in the very act of shar-ing that we become open for our own growth and well be-ing and we move away from the hate that we are currently seeing on TV.

At George Mason, where I teach, I witness each generation of new international students quickly “becoming American.” Now, that’s good in many re-spects – but not in every instance. Parts of America are dominated by a consumer mentality that does not fulfill all dimensions of a productive and happy life. Values other than new cars, big houses and the “right job” matter too. Trust me, I too enjoy driving a nice car, and living in a beautiful home – so I am not saying these things are bad. What I also want to experience, however, is some

thing different from myself. I want to enjoy a delicious dish at a Pakistani restaurant, or at the home of a Pakistani friend. I want to celebrate not only Christmas, but also Ramadan. I want to have a chance to witness – and per-haps join in – a large room of people praying at the mosque.

I want to count as precious my friendships with “others.” And, these are not consumer values. And, nei-ther should the driving forces of your educational choices

be single minded. It’s much bigger than thinking you must study one subject over another just to “get a good job.”

In fact, in the lifetimes of our children, jobs in ab-solutely every field will come and go. Did you know, for example, that it is very difficult to get a job in biology? And, that the highest paid degrees are not in science, tech-nology, engineering and math? Turns out that people with degrees in philosophy earn the most. So, don’t let your-self be pulled into a false path. Rather, examine your en-tire life structure, your values, and trust them – including in your educational choices.

Some of this encouragement can and should be found at school. But mostly, it needs be given to our chil-dren at home. Then, when our children witness misguid-ed language and actions, they will hopefully not lose cour-age and the faith that what they bring to daily life is pre-cious, unique and essential for the world.

As the great German philosopher and poet Goethe said “the emotions triumph over reason.” Cultural forces are more powerful than economic or political forces.

At this time of uncertainty, trust your culture. And, when in doubt, reach out to someone in need and offer a helping hand. Invite a friend from a different cul-ture to your home for dinner. It will make our world a better place.

By William “Bill” Reeder

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It’s the Culture, not the Economy

William “Bill” Reeder is Professor and Heritage Chair, George Mason University and Coles Dis-trict Candidate, Prince William County School Board.

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Police Chief Edwin C. Roessler Jr. has extended his gratitude to the diverse

community and police officers for making Fairfax County the safest jurisdiction of its size. “We are blessed that we accomplish our mission of preventing and fighting crime in partnership with each of you and we give thanks for your support to your police department,” the Chief said in a message. Each member of the Fairfax County Police Department views their role of serving and protecting our community as a noble cause which is their individual calling in life, he said. On behalf of all the members of the FCPD, I thank you for your continued engage-ment, support, and random acts of kindness as we all strive to make our community safer.”

A special initiative of Col Roessler is the formation of Chief’s Council on Diversity Recruitment and Chief’s Citizen’s Advisory Council. The two councils aim to promote di-versity recruitment efforts and initiatives to increase communication between residents and FPCD. Mr. M. Siddique Sheikh, Chairman PABA, is currently the Chairman of the Chief’s Council on Diversity Recruitment. The main purpose of the Diversity Recruitment Council is to assist the police de-partment to increase the cultural diversity of the sworn, civilian, and volunteer workforce to better reflect the diversity of the communities. The Council holds regular meeting which are attended by representatives of diverse Virginian communities. Several community members have volunteered time and working with their respec-tive communities to promote a better understanding of the FCPD by highlight efforts being by the law-enforcement agency to ensure and promote peace in the county. CAC encourages community leaders to get involved with the FCPD and provide a valuable services to their respective communities. The forum also helped to keep citizens informed about county issues and laws at the same time.

FCPD Police Chief Lauds Diverse Communities For Making Fairfax County Safest Jurisdiction

Police Chief Edwin C. Roessler Jr. with the newest teen police

academy class.

* Utah University Delegation Visits Pakistan

A delegation from the Utah University met Pakistan’s Planning Minister during a visit this week to discuss avenues for cooperation in education and other areas of interests in the social sec-tor. University of Utah is one of the Universities which have established strategic partnership with Pakistani institutes of higher excellence. The University of Utah is partnering with Mehran University of Engineering and Technology (MUET) Jamshoro for Center for Advanced Studies in Water Resources and cooperation in postgraduate degree programs, applied policy research, facilitation of public-private partnerships, and provision of policy advice in a range of water related disciplines.

* Pakistan to Have New IPO Web Portal

The new web portal of Intellectual Property Organization (IPO) will be launched in August which will offer online services to the public regarding e-filing and all types of IP applications. IPO has been recently placed under the Commerce Ministry to improve country’s ratings vis-à-vis intellectual property. The United States recently removed Pakistan from Priority Watch List in the year 2016, while India and China are still on the list. This reflects trust of the U.S. authorities in the recent legislative and administrative measures with regard to intellectual property rights.

* Pakistan, Turkey Hold FTA Negotiations

Trade officials from Pakistan and Turkey met in Ankara on July 25-27 for the third round on negotiations on Pakistan-

Turkey Free Trade Agreement (FTA). The two sides began discussions on FTA following the signing of “Framework Agreement” in March this year. Negotiations have been fast-tracked to conclude the agreement at the earliest. The next round will be held in August, 2016. During the recent round, the two sides discuss matters pertaining to tariffs, customs fa-cilitation, safeguard measures, rules of origin, tariff reduction modality, bilateral investment mechanisms, and services.

* Pakistan Grants 10 MHz Frequency Spectrum to Telenor

Pakistan Telenor, a subsidiary of Norwegian telecom giant, which won the bidding held recently for the spectrum. The new license will also enable Telenor Pakistan to launch 4G Services in Pakistan and would become third 4G Operator in the Country. Telenor successfully participated in all 3 spectrum auctions held in last twelve years and have invested billions in Pakistan since they first got the license in 2004.

* Pakistan Grants Duty Exemptions on Imported Construction Machinery for KKH

Pakistan’s Finance Ministry has exempted equipment, machinery and construction material to be used in construction of Phase II of the Karakorum Highway from custom duties, levies and other relevant taxes. KKH links Pakistan to China and is the main route for trade between the two countries. Two more sections will be built to extend the KKH linking it to indus-trial town of Havellian and to the Karachi-Lahore Motorway. The two projects are being undertaken under the $45 billion China-Pakistan Economic Corridor project signed last year.

* Additional Subsidy Granted to Facilitate Exporters of Wheat/Flour

Pakistan’s government has approved an additional rebate of US $30 per ton on the export of wheat and wheat flour. This will help traders to sell their wheat on competitive rates. The government had earlier granted $55per ton rebate in the two provinces of Punjab and Sindh. Both the provincial governments also contributed $35 and $45 per ton respectively as their share in the export rebate. The exports are to be made till November 30.

Pakistan Briefs

The Pakistan American Business Association, commonly known as PABA, was established in

1986 to bring together business people of diverse occupations, providing opportunities for

them to flourish and help others grow.

Through our board, active members and leadership in the United States of American and in

Pakistan, PABA has been able to achieve many successes at local, national and international

level. PABA nurtures business opportunities between Pakistan and the United States and enables its members to

develop new businesses and promotes dialogue between Pakistani and American government officials. we have

don

PABA AT A GLANCE

Local, state, national and international conventions

Job fairs for aspiring business people

Relief efforts for Katrina Hurricane and 2010 Pakistan Flood victims

International Trade Conference in Pakistan in 2004

Raised Funds for Shaukat Khanum Hospital in 1995

And much more,,,,,,,,,

PABA To Host International Trade Show in Washington D.C. Soon

Pakistan American Business Association 9302 Old Keene Mill Road Suite B Burke, VA 22015 - 4278

www.pabausa.org

What we have done

Editorial Team :

M. Siddique Sheikh

Shakeel Tufail

Augustine Anthony

Khalid Noufal