KARACHI: Pakistan is ready to construct the multibillion-dollar ML-1 railway project after receiving a much anticipated $6 billion loan from the Exim Bank of China, a Pakistan Railways spokesperson has said.
Pakistan approved the project last year, its costliest to date, as part of the multibillion-dollar China-Pakistan Economic Corridor (CPEC) agreement, giving the go-ahead for a $6.8 billion project to upgrade its railway lines.
CPEC has seen Beijing pledge over $60 billion for infrastructure projects in Pakistan, central to China’s wider Belt and Road Initiative (BRI) to develop land and sea trade routes in Asia and beyond.
The railway project, known as Mainline-1 (ML-1), is meant to be built on a cost-sharing basis between Islamabad and Beijing, with major financing expected through China’s Government Concessional Loan (GCL), though Pakistani authorities will also provide about $800 million as equity for the project.
“After finalizing technical and administrative details, Pakistan sent all project documents to the Exim Bank of China through the authorities in Beijing for the approval of loan,” Pakistan Railways spokesperson Hamdan Nazir told Arab News. “The Pakistan Railways has already finalized all documents and the next milestone will be to float the tender,” he continued.
The Exim Bank of China is one of three institutional banks in China chartered to implement state policies in industry, foreign trade, economy, and foreign aid to other developing countries, and provide policy financial support to promote the export of Chinese products and services.
The ML-1 line will lay down parallel railway tracks along with existing ones that connect the port city of Karachi and Peshawar, allowing trains to run at a speed of 160-kilometer per hour instead of the usual 65 to 110 km/h. Freight trains will operate at 120 km/h after the railway system is upgraded and a computer-based signal and control technology will be introduced.
Pakistan Railways will be the proposing and implementing agency of the project and work will be awarded through open bidding as per Public Procurement Regulatory Authority (PPRA) Rules through an engineering, procurement, and construction (EPC) contract.
“All the pre-funding formalities, including preliminary feasibilities reports, have been done and tender documents have been completed,” the spokesman said, adding: “When the tender documents are accepted, the actual loan will be sanctioned.”
The country’s current railway minister Azam Khan Swati did not respond to request for comment for this article.
Pakistan awaits $6 bln loan from Exim Bank of China for ML-1 railway project
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Pakistan awaits $6 bln loan from Exim Bank of China for ML-1 railway project
- Project to be built on cost-sharing basis between Islamabad and Beijing, major financing coming from China’s Government Concessional Loan
- Last year Pakistan approved the project, its costliest to date, as part of multibillion-dollar China-Pakistan Economic Corridor agreement
Pakistan army chief vows retribution as 13 soldiers killed in militant attack in northwest
- Armed forces say 14 militants were killed in a firefight during a clearance operation after the convoy attack
- Field Marshal Asim Munir vows to avenge innocent Pakistani lives and respond swiftly to militant violence
KARACHI: Pakistan’s army chief, Field Marshal Asim Munir, on Saturday vowed retribution after 13 soldiers were killed in a suicide bombing on an armed forces convoy in the country’s northwestern tribal belt, in one of the deadliest attacks on security personnel in recent months.
The military said the convoy was targeted in Mir Ali, a town in North Waziristan near the Afghan border, when an explosives-laden vehicle rammed into one of the lead vehicles after a failed attempt by a suicide bomber to detonate earlier.
Three civilians, including two children and a woman, were also injured in the blast.
Militant violence has surged in northwestern Khyber Pakhtunkhwa province in recent years, particularly in the tribal region, where attacks have targeted soldiers, police, government officials and civilian residents.
Saturday’s assault marked one of the highest single-day tolls for security forces this year. The military said it was followed by the killing of 14 militants in a firefight during a clearance operation launched by the security forces.
“Field Marshal Syed Asim Munir … visited Corps Headquarters Peshawar today, where he was briefed in detail on the prevailing security situation and ongoing counter-terrorism operations,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement. “During the visit, the Field Marshal also attended funeral of Shuhada [martyrs] of the incident at Bannu Garrison and visited the injured at Bannu CMH [Combined Military Hospital].”
“Reiterating the state’s uncompromising stance, the Chief of Army Staff vowed that all facilitators, abettors, and perpetrators of terrorism will be relentlessly pursued and brought to justice— without exception and at all costs, and the face of true perpetrator of terrorism in the region will be exposed to the entire world,” the statement added.
Most militant attacks in Khyber Pakhtunkhwa have been claimed by fighters belonging to the Tehreek-e-Taliban Pakistan (TTP), an umbrella group of armed factions that the Pakistani state refers to as khawarij — a term rooted in Islamic history used to describe a violent extremist sect that rebelled against authority and declared other Muslims as apostates.
The army described the assault as a “cowardly attack planned and orchestrated by the terrorist state of India” and executed by its “proxy Fitna Al-Khawarij.”
It said Pakistani forces intercepted the initial suicide bomber, but the attackers rammed a second explosive-laden vehicle into the convoy, killing 13 soldiers.
“The blood of every innocent Pakistani shall always be avenged,” the ISPR quoted the army chief as saying. “Any attempt to undermine Pakistan’s internal stability will be met with swift and decisive retribution.”
He also called for increased institutional support for civilian law enforcement agencies, particularly the Khyber Pakhtunkhwa Police, urging government stakeholders to prioritize capacity enhancement while reaffirming the army’s commitment to assist.
In a separate statement, Prime Minister Shehbaz Sharif condemned the attack, offering prayers for the fallen soldiers and condolences to their families. He praised the security forces for their response, including the killing of 14 militants, and said the entire nation saluted its martyrs.
“We are determined to eliminate every form of terrorism from the country,” Sharif said.
Pakistan plans to finalize Roosevelt Hotel privatization structure at next cabinet committee meeting
Pakistan plans to finalize Roosevelt Hotel privatization structure at next cabinet committee meeting
- Privatization Commission denies reports claiming a $100 million base price has been set for the hotel
- It points out the deal’s value will depend on the government-approved transaction structure, final terms
KARACHI: Pakistan is expected to finalize the transaction structure for the privatization of the Roosevelt Hotel in New York at the next meeting of the Cabinet Committee on Privatization, the government said in a statement on Saturday.
Located in Midtown Manhattan, the hotel is owned by Pakistan International Airlines Investment Limited (PIAIL) and occupies a full city block on Madison Avenue and 45th Street. It has also remained one of Pakistan’s most high-profile yet politically sensitive overseas assets.
“The base price and expected proceeds from the privatization of the Roosevelt Hotel will depend on the transaction structure and final terms approved by the government,” the Privatization Commission said in an official handout. “The transaction structure is expected to be finalized at the next meeting of the Cabinet Committee on Privatization.”
The statement informed no base price had yet been set for the property, rebutting some local media reports that claimed the government had fixed a $100 million floor.
It also pointed out such a value could only be determined at the time of bidding, adding that the deal’s potential value would depend on the transaction structure and final terms approved by the cabinet committee.
Over the past two decades, successive Pakistani governments have floated plans to sell, lease or redevelop the property, but no proposal has advanced beyond early-stage planning.
Earlier this month, Muhammad Ali, the prime minister’s adviser on privatization, told Arab News that the government had completed the hotel’s baseline valuation and appointed US-based consultancy JLL to conduct market sounding.
“We just need to get approval from the cabinet committee on the structure, and we’ll move ahead,” he said.
Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence
Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence
- Government calls the development ‘a resounding signal’ to investors about Pakistan’s improving economy
- It attributes the new outlook to economic stabilization, structural reforms and successful IMF engagement
KARACHI: Pakistan has recorded the world’s sharpest decline in sovereign default risk over the past year, topping Bloomberg Intelligence’s Global Emerging Market (EM) Rankings for credit risk improvement, according to new data cited by a senior finance official on Saturday.
The data, published by Bloomberg’s research arm, showed that Pakistan’s credit default swap-implied probability of default fell from 59 percent to 47 percent over the past 12 months, a drop of 11 percentage points. The change marks the biggest reduction among tracked emerging markets, outpacing countries like Argentina, Tunisia and Nigeria, as default risk rose in others such as Egypt, Gabon and Turkiye.
Credit default swaps (CDS) are insurance-like financial contracts that allow investors to hedge against the risk of a government failing to repay its debt. Issued and traded by large financial institutions, these contracts pay out in the event of a default. The higher the cost of a CDS, the greater the perceived risk. Bloomberg Intelligence uses CDS pricing to assess a country’s sovereign risk in its Global EM Rankings.
“Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk,” said Khurram Schehzad, adviser to the finance minister, in a social media post. “This is a resounding signal to global investors: Pakistan is not only back on the map— it is moving forward with stability, credibility, and reform at its core,” he added.
Bloomberg Intelligence is a highly regarded financial data and media company widely used by global investors, analysts and institutions.
The improvement in Pakistan’s risk profile comes after the South Asian nation narrowly avoided a sovereign default in 2023. With dwindling reserves and mounting debt repayments, Islamabad secured a short-term bailout from the International Monetary Fund (IMF) with the support of key allies including Saudi Arabia, the United Arab Emirates and China.
Since then, Pakistan has undertaken a series of IMF-recommended structural reforms and fiscal adjustments aimed at stabilizing the economy.
Credit rating agencies such as Standard & Poor’s and Fitch have acknowledged the progress with improved outlooks, while the government has prioritized timely debt servicing and macroeconomic discipline.
Schehzad attributed the improved outlook to “macroeconomic stabilization, structural reforms, successful IMF engagement and timely debt repayments,” noting that investor confidence had begun to return.
Rains and floods kill 19 in Khyber Pakhtunkhwa, 12 in Punjab as extreme weather hits Pakistan
- Authorities in KP call Swat the most affected district where 13 people lost their lives in flash floods
- The Met Office warns the risk of heavy rains and floods remains high until the middle of the next week
PESHAWAR/KARACHI: At least 19 people have been killed and six injured in the past 48 hours in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province while heavy rains claimed another 12 lives in the most populous Punjab province, provincial disaster authorities said on Saturday.
KP’s Provincial Disaster Management Authority (PDMA) said that a total of 56 houses had been damaged in the region — 50 partially and six completely — while rain-related incidents were reported from various districts including Swat, Abbottabad, Charsadda, Malakand, Shangla, Lower Dir and Torghar.
“In the past 48 hours, rain, strong winds, flash floods and landslides in Khyber Pakhtunkhwa province have resulted in the deaths of 19 people and injuries to 6 others,” the PDMA said in a statement.
“The most affected district was Swat, where 13 people died and six others were injured,” it added.
The overall casualties in the province included six men, five women and eight children.
Local administrations have been instructed to provide immediate relief to affected families and ensure medical care for the injured.
The ongoing spell of rains, which began on June 25, has also claimed 12 lives in Punjab, the country’s most populous province, and caused delays in railway operations in the southern Sindh province.
“Twelve people died and 39 were injured in various accidents,” the Punjab PDMA said in a statement. “Majority of deaths were caused by the collapse of roofs and walls.”
Punjab PDMA chief Irfan Ali Kathia urged citizens to avoid unnecessary travel and not to stay in dilapidated homes during bad weather.
The Pakistan Meteorological Department has warned that the risk of heavy rains and possible flash floods will remain high until at least Tuesday.
Babar Raza, a spokesperson for Pakistan Railways, told Arab News the weather had affected the railway signaling system, while the speed of trains had been reduced for safety reasons.
“As a result, some trains are reaching their destinations with a delay of three to four hours,” he said. “No trains have been canceled so far.”
Pakistan, home to over 240 million people, is considered one of the world’s most vulnerable countries to the effects of climate change and faces extreme weather events with increasing frequency.
Last month, at least 24 people were killed in severe storms across the country, which has already experienced multiple extreme weather incidents this year, including hailstorms and spring downpours.
Pakistan arrests two for defrauding citizens with fake jobs in Saudi Arabia, United Kingdom
- The suspects arrested in the Pakistani city of Multan have been accused of human smuggling
- The Federal Investigation Agency says both men extorted money and were involved in visa fraud
KARACHI: Pakistani authorities have arrested two men accused of human smuggling after they defrauded citizens with false promises of jobs in Saudi Arabia and the United Kingdom, officials said on Saturday, as the country intensifies its crackdown on trafficking networks following a series of deadly migrant boat disasters.
The arrests, made by the Federal Investigation Agency (FIA) in Multan, come amid Pakistan’s broader campaign to curb human smuggling. The issue has drawn significant attention following recent tragedies in the Mediterranean, including shipwrecks off Greece, Libya and Morocco involving scores of Pakistani nationals.
“The accused, Muhammad Muzammil and Sher Khan, extorted large sums of money from citizens by falsely promising overseas employment opportunities,” the FIA said in a statement. “Muzammil took Rs852,000 [$2,982] from a victim under the pretense of securing a job in Saudi Arabia, while Sher Khan collected Rs2 million [$7,000] by offering fake employment in the UK,” it continued. “Both failed to deliver and went into hiding after collecting the money.”
The statement noted that the suspects were also involved in visa fraud.
Prime Minister Shehbaz Sharif has vowed to crack down on the criminal networks exploiting vulnerable people with false hopes of better lives abroad. His administration began focusing on the issue after more than 200 Pakistanis were presumed dead in a shipwreck off Greece among hundreds of other illegal migrants trying to reach European shores.
Earlier this year, over 40 Pakistanis were feared drowned near Morocco’s coast, while the International Organization for Migration said at least 60 migrants, including Pakistanis, were feared dead after a pair of shipwrecks off the coast of Libya in June.
The FIA said on Saturday that both suspects were arrested from separate locations in Multan and have been taken into custody for further investigation. It added that its crackdown on human smugglers remains ongoing.
