ISLAMABAD: The chief minister of Pakistan’s Punjab province has offered Saudi investors incentives as part of a “special package” to explore opportunities in religious tourism, health, education and infrastructure, state-run media reported this week.
Punjab Chief Minister Maryam Nawaz Sharif met Prince Mansour bin Mohammed Al Saud, the former governor of Saudi Arabia’s Hafr Al-Batin province, on Monday to discuss promoting bilateral relations and mutual cooperation between Saudi Arabia and Punjab, the state-run Associated Press of Pakistan (APP) said.
Pakistan and Saudi Arabia enjoy cordial ties, with Riyadh frequently assisting cash-strapped Pakistan by supplying oil on deferred payment terms and financial support to stabilize the South Asian country’s economy.
“During the discussions, the chief minister invited Saudi investors to explore opportunities in infrastructure, health, education, and religious tourism in Punjab,” APP reported. “She assured Saudi investors of her government’s full cooperation and the provision of incentives under a special package.”
Sharif praised Saudi Arabia’s longstanding cooperation with Pakistan, saying that Riyadh was like “Pakistan’s elder brother and the hearts of the people of both countries beat together.”
“The Punjab government has ensured foolproof security and established a system based on merit to improve the business environment in the province,” the report quoted her as saying.
APP said Prince Mansour assured Pakistan of Saudi Arabia’s support.
“The relationship between Pakistan and Saudi Arabia is crucial for the stability and prosperity of the entire region,” he was quoted as saying. “Saudi Arabia will always stand by Pakistan.”
The Kingdom is also home to over 2 million Pakistani expatriates and serves as the source for most overseas workers remittances for Pakistan. Both countries have forged strong business and economic relations in recent months.
In October 2024, Pakistan and Saudi Arabia signed several memorandums of understanding (MoUs) valued at $2.8 billion. In December, Sharif’s office confirmed that seven of the 34 MoUs had been converted into agreements worth $560 million.
Pakistan’s Punjab offers Saudi investors incentives in health, education and religious tourism
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Pakistan’s Punjab offers Saudi investors incentives in health, education and religious tourism
- Punjab CM Maryam Nawaz meets Prince Mansour, former governor of Hafr Al-Batin province
- Pakistan and Saudi Arabia have sought closer business and economic ties in recent months
Pakistan to face New Zealand in FIH Nations Cup final today
- Pakistan defeated France 3-2 on penalty shootouts in the semifinal
- Pakistani goalkeeper Muneeb-ur-Rehman blocked three French chances
ISLAMABAD: Pakistan will face New Zealand today, Saturday, in the final of the Fédération Internationale de Hockey (FIH) Nations Cup in Kuala Lumpur, Malaysia.
Spirited Pakistan defeated France 3-2 on penalty shootouts to qualify for the Nations Cup final at the National Hockey Stadium on Friday.
Goalkeeper Muneeb-ur-Rehman blocked three French chances, while Rana Waheed Ashraf, Hannan Shahid and Afraz struck for Pakistan to clinch a highly-rewarding victory.
“Heartiest congratulations to our Green Shirts on reaching the Nations Cup final,” Pakistan Prime Minister Shehbaz Sharif said on X.
“The team turned the match around with courage, skill and determination — a proud moment for the entire nation.”
Hockey is Pakistan’s national sport. The national team boasts a proud legacy with three Olympic gold medals in 1960, 1968 and 1984, along with four World Cup titles in 1971, 1978, 1982 and 1994.
But the sport has faced a sharp decline in Pakistan in recent decades due to administrative challenges, underinvestment and inadequate infrastructure. Renewed efforts are underway to revive the game with increased
government support, youth development initiatives and greater international engagement aimed at restoring Pakistan’s former glory in the sport.
The winner of Saturday’s final will earn promotion to the elite FIH Hockey Pro League 2025–26 season.
Israel-Tehran conflict cripples border trade between Pakistan and Iran
- Markets have been closed and dozens of trucks stranded at Pakistan’s Taftan border crossing with Iran since June 15
- The key border crossing in Pakistan’s Balochistan typically handles daily exchanges in fuel, food and household goods
QUETTA: The ongoing conflict between Israel and Iran has crippled border trade between Pakistan and Iran, transporters and traders said this week, with markets closed and dozens of trucks stranded on the Pakistani side of the border.
Pakistan shares a 959-kilometer border with Iran in its southwest and the trade volume between the two countries stood at $2.8 billion in the last fiscal year that ended in June 2024, according to Pakistani state media.
In Feb., the two neighbors signed an agreement to take the bilateral trade volume to $10 billion, but tensions between Iran and Israel prompted Pakistan to suspend operations at the Taftan border crossing in Balochistan on June 15, mirroring the Iranian side’s restrictions following Israeli airstrikes.
“We’ve been stuck here in Taftan for four to five days, with six to seven vehicles,” Syed Khalil Ahmed, a local transporter, told Reuters on Friday. “We’re waiting for it to reopen so we can load our goods. The market is closed, and there’s a shortage of food and drinks.”
Israel began attacking Iran on June 13, saying its longtime enemy was on the verge of developing nuclear weapons. Iran, which says its nuclear program is only for peaceful purposes, retaliated with missile and drone strikes on Israel.
The Taftan border, a vital trade artery which typically handles daily exchanges in fuel, food and household goods, is now left paralyzed. Local traders said 90 percent of goods in Taftan typically come from Iran.
“With the border closed, no goods are arriving [from Iran] ... Local traders with Pakistani passports can’t enter Iran, and Iranian passport holders can only reach the border and return,” said Hajji Shaukat Ali, an importer of liquefied petroleum gas (LPG).
“This is hurting local businesses and traders. For us, as major LPG gas traders, some of our vehicles are stuck en route and won’t be able to reach us now.”
Ahmed said they were losing approximately Rs20,000 ($70) per truck daily while facing critical shortages of essential supplies.
“We’re managing with what we have, but it’s tough,” he added.
Islamabad rejects Indian media claims about Pakistan requesting truce in last month’s conflict
- Indian media outlets this week reported that Islamabad requested a ceasefire after India struck key Pakistani air bases last month
- The nuclear-armed neighbors traded drone, missile and artillery strikes in their worst conflict in decades before a US-brokered truce
ISLAMABAD: Pakistan’s foreign office on Saturday rejected Indian media reports about Pakistan requesting a ceasefire with New Delhi during their four-day military standoff last month.
Citing Pakistan’s Deputy Prime Minister Ishaq Dar, Indian media outlets this week reported that it was Islamabad that requested a ceasefire after India had hit key Pakistani air bases last month.
Pakistan and India last month traded fighter jet, missile, drone and artillery strikes after weeks of tensions between them over an attack in Indian-administered Kashmir.
Responding to Indian media reports, the Pakistani foreign office said friendly states, including Saudi Arabia and the United States, played a crucial role in facilitating last month’s ceasefire.
“The sequence of events clearly demonstrates that Pakistan did not initiate or ask anyone for a ceasefire but agreed to it when around 0815 am on 10th May 2025, US Secretary of State Marco Rubio called the DPM/FM, Senator Mohammad Ishaq Dar, and informed that India is ready to ceasefire if Pakistan is willing,” it said.
“The DPM/FM confirmed Pakistan’s acceptance and later around 9 am Saudi FM Prince Faisal also called DPM/FM and informed the same about India and sought same confirmation which Secretary of State Marco Rubio had sought earlier.”
Pakistan and India have fought multiple wars since their independence from British rule in 1947. Two of the wars were over the disputed region of Kashmir, which both claim in full but rule in part.
Last month’s conflict came days after New Delhi blamed Pakistan for the deadly attack that killed 26 tourists in Indian-administered Kashmir on April 22. Islamabad denied any involvement.
Pakistan recommends Trump for Nobel Peace Prize for defusing conflict with India
- Trump complained he had been overlooked by Nobel committee for his mediating role in India-Pakistan conflict
- The US president predicted that Washington will be able to negotiate trade deals with both India and Pakistan
ISLAMABAD: The Pakistani government has decided to formally recommend United States (US) President Donald Trump for the 2026 Nobel Peace Prize for his “decisive diplomatic intervention” during last month’s India-Pakistan military standoff, it said on Saturday.
The statement came after Trump took credit for a peace deal negotiated in Washington between the Democratic Republic of Congo and Rwanda and complained he had been overlooked by the Norwegian Nobel Committee for his mediating role in conflicts between India and Pakistan, as well as Serbia and Kosovo.
Trump campaigned for office as a “peacemaker” who would use his negotiating skills to quickly end wars in Ukraine and Gaza, although both conflicts are still raging five months into his presidency. Indian officials have denied that he had any role in its ceasefire with Pakistan.
In a post on X, the Pakistani government said President Trump demonstrated “great strategic foresight and stellar statesmanship” through robust diplomatic engagement with both Islamabad and New Delhi which de-escalated a rapidly deteriorating situation last month.
“This intervention stands as a testament to his role as a genuine peacemaker and his commitment to conflict resolution through dialogue,” it said, appreciating Trump’s efforts that ultimately secured a ceasefire and averted a broader conflict between the two nuclear-armed neighbors.
The military standoff was triggered by a militant attack in Indian-administered Kashmir that New Delhi blamed on Pakistan. Islamabad denied complicity.
The four-day standoff had raised fears of wider conflict between the South Asian rivals who have fought multiple wars, including two over the disputed region of Kashmir. Trump also offered trade with Pakistan and India, and to mediate the Kashmir dispute between the neighbors.
On Friday, the US president predicted that Washington will be able to negotiate trade deals with both India and Pakistan.
“We did a very great job with India and Pakistan, and we had India in, and it looks like we’re going to be making a trade deal with India,” he told reporters in New Jersey.
“And we had Pakistan in, and it looks like we’re going to be making a trade deal with Pakistan. And it’s a beautiful thing to watch.”
The Pakistani government said it acknowledged and admired Trump’s offers to help resolve the longstanding Kashmir dispute that lies at the “heart of regional instability.”
“Durable peace in South Asia would remain elusive until the implementation of United Nations Security Council resolutions concerning Jammu and Kashmir,” it said.
Islamabad hoped that Trump’s legacy of “pragmatic diplomacy and effective peace-building” will continue and help resolve various ongoing crises in the Middle East.
“Pakistan remains hopeful that his earnest efforts will continue to contribute toward regional and global stability, particularly in the context of ongoing crises in the Middle East, including the humanitarian tragedy unfolding in Gaza and the deteriorating escalation involving Iran,” the government added.
Pakistan signs $4.5 billion loans with local banks to ease power sector debt
- The government, which owns much of the power infrastructure, is grappling with ballooning ‘circular debt’
- The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure on Islamabad
KARACHI: Pakistan has signed term sheets with 18 commercial banks for a 1.275 trillion Pakistani rupee ($4.50 billion) Islamic finance facility to help pay down mounting debt in its power sector, government officials said on Friday.
The government, which owns or controls much of the power infrastructure, is grappling with ballooning “circular debt”, unpaid bills and subsidies, that has choked the sector and weighed on the economy.
The liquidity crunch has disrupted supply, discouraged investment and added to fiscal pressure, making it a key focus under Pakistan’s $7 billion IMF program.
Finding funds to plug the gap has been a persistent challenge, with limited fiscal space and high-cost legacy debt making resolution efforts more difficult.
“Eighteen commercial banks will provide the loans through Islamic financing,” Khurram Schehzad, adviser to the finance minister, told Reuters.
The facility, structured under Islamic principles, is secured at a concessional rate of 3-month KIBOR, the benchmark rate banks use to price loans, minus 0.9 percent, a formula agreed on by the IMF.
“It will be repaid in 24 quarterly instalments over six years,” and will not add to public debt, Power Minister Awais Leghari said.
Existing liabilities carry higher costs, including late payment surcharges on Independent Power Producers of up to KIBOR plus 4.5 percent, and older loans ranging slightly above benchmark rates.
Meezan Bank, HBL, National Bank of Pakistan and UBL were among the banks participating in the deal.
The government expects to allocate 323 billion rupees annually to repay the loan, capped at 1.938 trillion rupees over six years.
The agreement also aligns with Pakistan’s target of eliminating interest-based banking by 2028, with Islamic finance now comprising about a quarter of total banking assets.
