G20 to tackle US-China trade war, digital tax

09:55 AM | 6 Jun, 2019
G20 to tackle US-China trade war, digital tax
TOKYO - Top financial policymakers from the world's 20 most powerful nations gather this weekend in Japan as a protracted US-China trade war clouds the global economy with no end in sight.

G20 finance ministers and central bankers gathering in the southwestern Japanese port city of Fukuoka will also tackle the thorny conundrum of how to tax huge multinational digital firms like Google and Facebook.

Policymakers are facing an increasingly gloomy outlook as turbulence from broadening trade conflicts spills into the real economy, prompting several central banks to slash interest rates or signal looser monetary policy.

Just ahead of the meeting, the World Bank slashed its global growth forecasts for this year as confidence tumbles and investment is delayed by geopolitical headwinds, such as Britain's exit from the European Union.

The world economy is now expected to expand by 2.6 percent this year, three-tenths of a percentage point lower than its January forecast, and well below the three percent growth seen in 2018, according to the Global Economic Prospects report.

By a quirk of the calendar, trade ministers are also meeting the same weekend in Japan but the finance ministers will be tackling the current tensions and their economic consequences, officials and analysts said.

Washington plans to press fellow G20 members to reduce trade imbalances, a senior US Treasury official said, echoing President Donald Trump's campaign to promote US exports.

"I do expect trade will be one of the topics of conversation... in terms of trying to open trade up further and reduce some of the unfair trade practices that may exist out there, as well as the impact of the assertive tariff measures that have been announced," said the official.

The discussions in Fukuoka will feed into the G20 summit on June 28-29, where Trump and Chinese President Xi Jinping are expected to cross swords on trade amid a spiraling pattern of tit-for-tat trade tariffs.

- 'Immediate crisis' -

Kenji Yumoto, the senior executive economist at the Japan Research Institute, said any joint statement should aim to bolster fragile sentiment.

"If they issue a communique... they should show a sense of solidarity to ease concerns that are out there and prevent deterioration in confidence," Yumoto told AFP.

The trade war will definitely be on the table but notoriously media-shy central bankers may be unwilling to divulge the contents of the discussions, predicted the analyst.

Tomoya Kondo, a senior economist at Daiwa Institute of Research, said that the group would probably stop short of coordinated action as it has done in the past to stem crises.

"Despite the uncertain outlook, we are not in an immediate crisis. This does not offer strong incentives for the group to issue strong messages and calls for coordinated policies," he said.

"What is expected of Japan is to make sure that President Trump won't become isolated and become more radical," Kondo told AFP.

- 'Broad consensus' -

Ministers and central bankers will also wrestle with a global push to impose a unified tax policy on internet giants that are enjoying booming sales but are criticised for not paying fair taxes.

The OECD will present ministers with a roadmap for new tax policy, as the G20 reportedly moves toward a tax scheme based on the amount of business a company does in a country, not where it is based.

But the United States is pushing for a broader approach that may also target European and Asian multinationals involved in sectors beyond technology.

"There is a broad consensus that the world's existing taxation framework must be changed to suit current conditions," said Yosuke Nakamura, a researcher at NLI Research Institute.

"But when it comes to specifics, it becomes difficult to find an agreement like taxing multinational firms including the GAFA", he said, referring to US-based Google, Amazon, Facebook, and Apple.

"Unless you bring the United States on board, you cannot have any effective changes to the global taxation framework," Nakamura added.

The G20 will also tackle a host of other pressing economic issues such as Brexit, the Chinese economy and slowing growth in Europe.

Associated Press of Pakistan
Associated Press of Pakistan

Associated Press of Pakistan Corporation (APPC) - Pakistan's Premier News Agency


Rupee loses ground against US dollar, Euro, Pound and other currencies; Check forex rates here

Pakistani rupee continue to witness further losses against US dollar in the open market on despite positive economic indicators and massive surge in Stock Market.

Dollar Rate in Pakistan Today

On Tuesday, the dollar was being quoted at 285.1 for selling and 288.15 for buying purposes for customers.

Euro price moves down by Rs2 to 312 for buying and 315 for selling. British Pound rate stands at 358.5 for buying, and 362 for selling after increase.

UAE Dirham AED stands at 78 whereas the Saudi Riyal also witnessed fall and new price stands at 76.25.

Today's currency exchange rates in Pakistan - 28 November 2022

Currency Symbol Buying Selling
US Dollar ‎USD 285.1 288.15
Euro EUR 312 315
UK Pound Sterling GBP 358.5 362
U.A.E Dirham AED 78 78.75
Saudi Riyal SAR 76.25 77
Australian Dollar AUD 186 187.5
Bahrain Dinar BHD 759 767
Canadian Dollar CAD 208 210
China Yuan CNY 39.93 40.33
Danish Krone DKK 41.88 42.28
Hong Kong Dollar HKD 36.24 36.59
Indian Rupee INR 3.39 3.5
Japanese Yen JPY 1.55 1.63
Kuwaiti Dinar KWD 916.38 925.38
Malaysian Ringgit MYR 60.38 60.98
New Zealand Dollar NZD 173.44 175.44
Norwegians Krone NOK 26.25 26.55
Omani Riyal OMR 741.26 749.26
Qatari Riyal ‎QAR 77.63 78.33
Singapore Dollar SGD 210 212
Swedish Korona SEK 26.93 27.23
Swiss Franc CHF 323.37 325.87
Thai Bhat THB 8 8.04

Gold price in Pakistan moves up amid positive global cues; Check today gold price here

KARACHI – Gold continues to move upward in local market amid surge in international rates.

Gold Rates in Pakistan Today - 28 November 2023

On Tuesday, the single tola of 24 Karat gold was available at Rs217,600, and the price for 10-gram gold saw increase of Rs943 to reach Rs186,557.

Globally, yellow metal went up by $12 to settle at $2,015 per ounce.

Last week, per tola gold price increased by Rs800 per tola, and it hovers around two month high.

Today Gold Rate in Pakistan

City Gold Silver
Lahore PKR 217,600 PKR 2,600
Karachi PKR 217,600 PKR 2,600
Islamabad PKR 217,600 PKR 2,600
Peshawar PKR 217,600 PKR 2,600
Quetta PKR 217,600 PKR 2,600
Sialkot PKR 217,600 PKR 2,600
Attock PKR 217,600 PKR 2,600
Gujranwala PKR 217,600 PKR 2,600
Jehlum PKR 217,600 PKR 2,600
Multan PKR 217,600 PKR 2,600
Bahawalpur PKR 217,600 PKR 2,600
Gujrat PKR 217,600 PKR 2,600
Nawabshah PKR 217,600 PKR 2,600
Chakwal PKR 217,600 PKR 2,600
Hyderabad PKR 217,600 PKR 2,600
Nowshehra PKR 217,600 PKR 2,600
Sargodha PKR 217,600 PKR 2,600
Faisalabad PKR 217,600 PKR 2,600
Mirpur PKR 217,600 PKR 2,600


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