Pakistan invites investment from UAE banks as it looks for external financing avenues 

Pakistan's Finance Minister Muhammad Aurangzeb speaks during an interview with AFP at the Embassy of Pakistan in Washington, DC on April 15, 2024. (AFP/File)
Short Url
Updated 23 August 2024
Follow

Pakistan invites investment from UAE banks as it looks for external financing avenues 

  • Pakistan last month reached a bailout loan deal with the IMF which is pending approval from the lender’s executive board
  • Approval dependent on “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”

ISLAMABAD: Finance minister Muhammad Aurangzeb this week invited Dubai Islamic Bank and Mashreq Bank to enhance investments in Pakistan as the South Asian country struggles to meet external financial needs as part of a $7 billion bailout loan that is pending approval by the International Monetary Fund (IMF) executive board.

Last month, Aurangzeb said Pakistan will focus on meeting its external financing needs by speaking with foreign governments and lenders to draw foreign investment as well as seeking loan rollovers. The government is also seeking to focus on more sustainable forms of external financing such as direct investment and climate financing.

Pakistan and the IMF reached an agreement for the 37-month loan program last month. The IMF has said the program is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”

On Thursday, Aurangzeb had a virtual meeting with Dr. Adnan Chilwan, Group CEO of Dubai Islamic Bank, a day after a similar interaction was held with Mashreq Bank President and GCEO Ahmed Abdelaal. Both meetings were arranged to “discuss the economic outlook and explore investment opportunities in Pakistan.”

“During the meeting, while exploring the potential areas for investment in Pakistan, the Minister invited the Dubai Islamic Bank to enhance its investment in the country and reaffirmed the government’s dedication to maintaining a stable macroeconomic environment and ensuring that all necessary measures are in place to facilitate foreign investment,” the finance ministry said in a statement after the virtual meeting between Aurangzeb’s team and the Dubai Islamic Bank official.

The minister also provided an in-depth overview of Pakistan’s current economic situation, emphasizing progress made in stabilizing the economy and fostering a conducive environment for business and investment. 

“He highlighted key initiatives taken by the government such as broadening the tax base, enhancing the ease of doing business, the digitalization of the Federal Board of Revenue (FBR), and ongoing reforms and restructuring in state-owned enterprises (SOEs) and privatization,” the statement said. 

“Aurangzeb expressed gratitude for Dubai Islamic Bank’s continuous engagement with Pakistan’s financial sector … He highlighted the government’s commitment to strengthening economic ties with international partners, particularly in Islamic banking, and expressed optimism about future collaborations with Dubai Islamic Bank.”

According to the finance ministry statement, Chilwan expressed “appreciation” for Pakistan’s economic policies and initiatives, and said Pakistan remained a “strategically important market” for Dubai Islamic Bank, reiterating the bank’s interest in playing a “larger role in the country’s financial growth, particularly in sectors such as Islamic banking, infrastructure, and SME development.”

Pakistan is in talks with Saudi Arabia, the United Arab Emirates and China to meet gross financing needs under the IMF program, Aurangzeb said in July following a trip to China to seek energy sector debt reprofiling.

Rollovers or disbursements on loans from Pakistan’s long-time allies, in addition to financing from the IMF, have helped Pakistan meet its external financing needs in the past.

Tough conditionalities placed by the IMF, such as raising tax on agricultural incomes and lifting electricity prices, have prompted concerns about poor and middle class Pakistanis grappling with rising inflation and the prospect of higher taxes.


Karachi, Lahore to reignite ‘ultimate rivalry’ with PSL X clash today

Updated 7 sec ago
Follow

Karachi, Lahore to reignite ‘ultimate rivalry’ with PSL X clash today

  • Lahore beat Karachi by 85 runs on Apr. 30 when the two sides last faced off
  • Karachi beat Multan by 87 runs on May 1 in Pakistan Super League encounter

ISLAMABAD: Karachi Kings and Lahore Qalandars will reignite their Pakistan Super League (PSL) rivalry today, Sunday, when the two teams lock horns at the Qaddafi Stadium in an important clash of the tournament. 

The Qalandars are placed at number three on the PSL points table, winning four matches from their eight fixtures. The Kings have also won only four matches from the seven games they have played and are placed at number four on the table. 

Lahore had the upper hand the last time the two teams met on the field for the PSL X tournament, winning the encounter by 85 runs. 

“Don’t miss the ultimate rivalry #LQvKK today at Qaddafi Stadium!” the PSL wrote on its official social media platforms. 

The Kings will head into the match confident, having beat an out-of-form Multan Sultans squad by 87 runs on May 1. 

The Qalandars have been in fine form as well, demolishing Islamabad United by 88 runs on Apr. 30 before their match against Quetta Gladiators on May 1 ended in a no result tie due to rain. 

Qalandars have had batting success in the form of openers Abdullah Shafique and the explosive Fakhar Zaman while fast bowler Shaheen Shah Afridi has fared impressively as well. 

The Kings will look toward their skipper and opener David Warner, who has been out of form as of late, and Tim Siefert to deliver the goods. 

The intense rivalry between the two franchises has been compared to the India-Pakistan and Australia-England cricket rivalry, with many also using the phrase “El-Clasico of cricket” to describe their clash. 

The match will kick off at 8:00 p.m. Pakistan Standard Time. 


Pakistan to hold key national security briefing for political parties today amid India tensions

Updated 56 min 47 sec ago
Follow

Pakistan to hold key national security briefing for political parties today amid India tensions

  • Pakistan has been preparing for possible military confrontation with India ever since Apr. 22 Kashmir attack
  • Parties to be informed about preparation of armed forces and Islamabad’s diplomatic initiatives, says state media 

ISLAMABAD: Pakistan’s information minister and military spokesperson will hold an important national security briefing today, Sunday, for representatives of various political parties amid Islamabad’s surging tensions with Delhi, according to state-run media. 

Pakistan has been preparing for the possibility of a military confrontation with India ever since its tensions with its nuclear-armed neighbor skyrocketed last month. Delhi blamed Islamabad for being involved in a militant attack on Apr. 22 at a tourist resort in Indian-administered Kashmir that killed 26 tourists. 

Pakistan denied involvement and as India vowed to go after backers of the Kashmir attack, Islamabad vowed it would give a “strong” response to any military action by India. 

“Federal Minister for Information and Broadcasting Attaullah Tarar and Director General Inter-Services Public Relations (ISPR) Lt. Gen. Ahmed Sharif Chaudhry will hold an important background briefing on the national security for representatives of all political parties on Sunday,” the Associated Press of Pakistan (APP) reported on Saturday.

It said the briefing would primarily focus on the prevailing national security landscape, particularly concerning relations between Pakistan and India, and its broader implications. 

Political parties will be informed about the preparedness of Pakistan’s armed forces while information about ongoing diplomatic initiatives and Islamabad’s official stance on the situation will also be shared, it added. 

“The statement said that the briefing, in the current situation, is a prime example of national unity and consensus among all the parties,” APP said. 

As tensions surge between the two neighbors, their forces have traded fire over the Line of Control frontier in Kashmir while diplomats have exchanged barbs, expelled citizens and ordered their land border shut.

Pakistani opposition parties have in recent times become more openly critical of the military, which has been accused of being heavily involved in politics and the economy. The military denies the allegations. 

However, recent tensions with India have turned bitter political foes into temporary allies. 

When the Senate voted on an anti-India resolution last month, jailed former prime minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party voted in favor, ensuring it passed unanimously.


Pakistan plans media visit to de facto Kashmir border to counter Indian reports of militant camps

Updated 04 May 2025
Follow

Pakistan plans media visit to de facto Kashmir border to counter Indian reports of militant camps

  • The trip has been organized by the information ministry and is expected to take place on Monday
  • Information minister, military spokesperson will brief politicians on Pakistan-India tensions today

ISLAMABAD: Pakistan plans to take local and foreign journalists to the Line of Control (LoC), the de facto border separating the two parts of the disputed Himalayan region of Kashmir, on Monday, following Indian media reports alleging the presence of militant camps on the Pakistani side.
According to the state-owned Associated Press of Pakistan (APP), the trip has been organized by the information ministry and was originally planned for Sunday. However, it had to be postponed due to a weather forecast predicting inclement conditions.
The media visit has been planned less than two weeks after the April 22 gun attack in Pahalgam, a tourist destination in Indian-administered Kashmir, that killed 26 people.
Security sources say the visit will allow journalists to investigate claims made in recent Indian media reports identifying several locations allegedly used as militant camps.
“Journalists will be taken to all the areas mentioned in recent reports to independently verify the claims,” a security official said on condition of anonymity. “Pakistan rejects these allegations and considers them part of a propaganda effort.”
Recent Indian news reports named various towns and villages near the LoC and claimed that militant groups had vacated camps ahead of potential Indian strikes. Pakistani authorities have dismissed the claims of militant presence and camps as baseless.
Meanwhile, Federal Minister for Information and Broadcasting Attaullah Tarar and military spokesperson Lt. Gen. Ahmed Sharif Chaudhry are also scheduled to brief leaders of Pakistan’s political parties on Sunday, said a report in Radio Pakistan.
“The high-level background briefing will focus on the current state of national security, particularly in the context of Pakistan-India relations and the implications of recent developments,” it said.
“Participants will be briefed on the defensive preparedness of Pakistan’s armed forces, ongoing diplomatic efforts, and the official stance of the state on key issues,” the report added.
 


European states back Pakistan’s proposal for Kashmir inquiry following Pahalgam attack

Updated 03 May 2025
Follow

European states back Pakistan’s proposal for Kashmir inquiry following Pahalgam attack

  • Foreign office says Switzerland’s FM offered assistance with the probe during a call with Ishaq Dar
  • Greek foreign minister urges restraint to prevent escalation between the two South Asian neighbors

ISLAMABAD: Switzerland and Greece welcomed Pakistan’s proposal for an independent investigation into last month’s gun attack on a tourist hub in Indian-administered Kashmir, with the Swiss government offering to assist in facilitating a transparent probe, said the foreign office on Saturday.
The April 22 assault in Pahalgam, a popular destination in the disputed Himalayan region, killed 26 people. India blamed Pakistan for the attack, an allegation Islamabad has repeatedly denied. Tensions between the two nuclear-armed neighbors have surged in the wake of the attack, with India imposing trade and shipping restrictions and suspending its participation in the Indus Waters Treaty.
Pakistan has responded by calling for a neutral and transparent international investigation into the incident while warning that any military action would trigger a strong response despite Islamabad’s desire to avoid escalation.
Pakistan’s Deputy Prime Minister Ishaq Dar spoke over the phone with the foreign minister’s of Switzerland and Greece, presenting his country’s perspective on the situation.
“FM @ignaziocassis appreciated Pakistan’s commitment to peace, and endorsed its proposal for an investigation,” the foreign office said in a social media post, referring to Swiss Foreign Minister Ignazio Cassis, following a call between the two officials. “He expressed Switzerland’s readiness to offer its good offices and explore appropriate mechanisms to facilitate an impartial investigation.”
Greek Foreign Minister George Gerapetritis also welcomed Pakistan’s proposal for an impartial inquiry and stressed the importance of restraint to prevent escalation and preserve regional stability, according to another post.
A day earlier, Dar spoke with European Union High Representative for Foreign Affairs Kaja Kallas, who emphasized the need for dialogue between the two South Asian nuclear rivals to maintain regional peace and stability.
The Pakistani deputy prime minister told all three European officials that Islamabad rejects India’s allegations and unilateral actions like the suspension of the Indus Waters Treaty.
He described the Indian decision to hold the treaty “in abeyance” as a violation of international law.
Pakistan and India have fought multiple wars over Kashmir, which both countries claim in full but control in part. The latest diplomatic exchanges come as concerns rise over the potential for further escalation following the Pahalgam attack.


Pakistan’s cement exports jump 29% but domestic demand remains weak

Updated 03 May 2025
Follow

Pakistan’s cement exports jump 29% but domestic demand remains weak

  • Cement industry has struggled due to economic headwinds, high construction costs in Pakistan
  • APCMA has asked the government to announce industry-friendly measures in the upcoming budget

KARACHI: Pakistan’s cement exports rose nearly 29% to 7.4 million tons in the first ten months of the current fiscal year, but overall despatches remained flat due to sluggish domestic demand, industry data showed on Saturday.
Total cement despatches, domestic and exports combined, reached 37.336 million tons during the July 2024 to April 2025 period, just 0.32% lower than the same stretch last year, according to the All Pakistan Cement Manufacturers Association (APCMA).
Domestic sales, however, dropped 5.55% to 29.978 million tons, while exports surged 28.77% from 5.714 million tons to 7.359 million tons.
“A healthy rise in exports this year is a good omen,” an APCMA statement said. “However, the industry’s resurgence was limited due to low domestic demand, leaving about one third of the industry capacity idle.”
April 2025 data showed total cement despatches increased by 13.24% year-on-year to 3.342 million tons, driven by a 34.56% jump in exports and a modest 7.64% rise in local sales.
The APCMA statement urged the government to announce industry-friendly measures in the upcoming budget to boost domestic construction activity and enhance the global competitiveness of Pakistani cement.
Pakistan’s cement industry has struggled in recent years with subdued domestic consumption due to economic headwinds and high construction costs, forcing manufacturers to increasingly rely on exports.