Pakistan, EU sign €20 million grant deal to improve business environment, governance

Pakistan, EU sign €20 million grant deal to improve business environment, governance
EU Ambassador to Pakistan Dr. Riina Kionka and Secretary Economic Affairs Division Dr. Kazim Niaz sign a €20 million grant agreement on July 11, 2025. (eudelegationpakistan/ Instagram)
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Updated 11 July 2025
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Pakistan, EU sign €20 million grant deal to improve business environment, governance

Pakistan, EU sign €20 million grant deal to improve business environment, governance
  • The development comes as Pakistan takes policy measures to increase lending portfolio of small, medium enterprises
  • The initiative will strengthen these enterprises, green transition of export-oriented firms and facilitate green investments

ISLAMABAD: Pakistan and the European Union have signed a €20 million grant agreement to launch the “Better Governance and Business Environment” initiative in the South Asian country, Pakistani state media reported on Thursday.

The agreement, signed by EU Ambassador to Pakistan Dr. Riina Kionka and Secretary Economic Affairs Division Dr. Kazim Niaz, aims to enhance the competitiveness of Pakistan’s private sector, particularly small and medium enterprises (SMEs), including those led by or benefiting women.

Pakistan’s government has increasingly spoken about achieving sustainable economic growth and moving the country away from his usual “boom and bust” cycle through financial reforms, signing trade, business and grant deals with regional allies worth billions of dollars and enhancing its exports.

“The program will strengthen SME-related legislation, support the green transition of export-oriented firms, facilitate targeted green investments, and promote public-private dialogue,” the Radio Pakistan broadcaster reported.

The development comes as Pakistan takes policy measures to increase lending portfolio of SMEs to enhance their contributions to employment, exports and the national GDP.

These enterprises account for approximately 40 percent of the country’s GDP, 25 percent of exports and nearly 78 percent of non-agricultural employment, according to the Pakistani finance ministry.

But despite their contributions, their access to formal finance remains “disproportionately low,” with a small percentage of private-sector lending currently directed toward them

“This expansion is expected to enhance the contribution of SMEs to GDP, exports, employment, youth and women’s digital empowerment, and overall financial inclusion, laying the foundation for sustained and inclusive economic growth,” the finance ministry said this month.

“Deregulation efforts, such as reducing reliance on NOCs and increasing e-inspections, are also being introduced to reduce compliance burdens for SMEs.”

Pakistan will also use a $1.4 billion loan from the International Monetary Fund’s climate resilience fund to expand fiscal space, embed climate planning into public investment decisions and unlock private-sector capital for green projects, the IMF said last week.


Pakistan and Libya to expand defense industrial collaboration after top military meeting

Pakistan and Libya to expand defense industrial collaboration after top military meeting
Updated 41 sec ago
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Pakistan and Libya to expand defense industrial collaboration after top military meeting

Pakistan and Libya to expand defense industrial collaboration after top military meeting
  • The understanding comes during the Libyan armed forces commander-in-chief’s visit to Pakistan
  • Defense ties between both countries remain robust with Pakistan training Libyan military officers

ISLAMABAD: Pakistan and Libya have agreed to pursue defense industrial collaboration and exchange technical expertise to tackle security challenges, according to an official statement issued on Friday after a meeting between the top army commanders of the two countries.

The meeting took place in Rawalpindi between Libyan Armed Forces Commander-in-Chief Lt Gen Saddam Khalifa Haftar and Pakistan Army Chief Field Marshal Asim Munir, according to the military media wing, Inter-Services Public Relations (ISPR).

Defense ties between the two countries date back to the Cold War era, when Libyan leader Muammar Qaddafi famously called Pakistan “the fort of Islam” at the 1974 Organization of Islamic Cooperation (OIC) summit in Lahore and later supported its arms procurement efforts.

In the post-Qaddafi period, the two nations signed a series of memoranda of understanding focused on labor, education and political consultations, laying the groundwork for broader cooperation.

“Meeting encompassed discussion on matters of mutual interest, evolving regional dynamics, security challenges and matters pertaining to defense cooperation,” the ISPR said in a statement after the meeting.

“Both leaders agreed to undertake defense industrial collaboration and exchange of technical expertise to address contemporary security challenges.”

Haftar was presented a guard of honor by a Pakistan Army contingent upon his arrival at the General Headquarters, where he laid a floral wreath at the Martyrs’ Corner.

The ISPR statement maintained the visit by Libya’s top military leadership marks a significant step in reinforcing the longstanding defense partnership between both countries.

Pakistan and Libya established diplomatic relations in 1951 and have maintained friendly ties rooted in shared Islamic heritage and cultural bonds.

Bilateral trade reached approximately $19 million in 2022–23, while defense ties remain robust, with Pakistan having trained Libyan officers in aviation, infantry and technical fields in the past.


Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records

Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records
Updated 20 min 8 sec ago
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Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records

Pakistan links 40,000 missing pilgrim figures in Middle East to outdated paper records
  • Religious affairs minister says his ‘missing pilgrims’ remark did not imply mass disappearances in the region
  • Pakistan has unveiled a new system for pilgrims traveling to Iran, Iraq and Syria to improve record keeping

ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, on Friday downplayed his earlier remarks about “40,000 missing pilgrims” in the Middle East, saying the number reflected outdated travel records, not mass disappearances, amid growing scrutiny of undocumented religious travelers in the region.

The clarification follows media reports, citing official data, that around 40,000 Pakistani pilgrims to Iran, Iraq and Syria had either gone missing or overstayed in the past decade, prompting the government to draft a new pilgrimage monitoring policy and raise the issue with host countries.

Each year, thousands of Pakistani Shia pilgrims travel to religious shrines in these countries, but host governments have repeatedly flagged the issue of undocumented or unreturned visitors.

Speaking to Arab News a day earlier, Mustafa Jamal Kazi, Director General of Immigration and Passports, said most of the disappearances occurred in Iraq due to the lure of employment in its booming construction sector, and that the exploitation of religious tourism for begging was among the most common motives for absconding.

He also confirmed the officially stated number of missing pilgrims, saying these people “never returned during the last almost one decade.”

“My reference to 40,000 pilgrims was never intended to give the impression that thousands of Pakistanis are missing abroad,” the religious affairs minister said in a statement. “The real issue is that older paper records have not yet been fully transferred to our central digital registry.”

He said the religious affairs ministry had launched a modern digital portal where pilgrims and group organizers are issued QR-coded e-cards, allowing families and the government to access real-time travel data.

“This step will eliminate room for misunderstanding or propaganda, and ensure timely sharing of pilgrim data with officials in Iran, Iraq, and Syria,” the minister said, calling the move a key measure toward secure and accountable pilgrimage.

Yousaf also appealed to tour operators and prospective pilgrims to register their information on the new system by August 31 to avoid being flagged as part of “incomplete lists.”

“Our goal is to make every Pakistani’s journey safe,” he said. “Let’s work together to show the world that our records are transparent and that Pakistan is using modern technology to ensure responsible oversight.”

As part of broader reforms, the government has also abolished the traditional “Salar system” — in which private group leaders managed logistics — and introduced a centralized framework under the new Ziyarat Management Policy, holding licensed organizers accountable for each pilgrim’s return.


Pakistan posts first annual current account surplus in 14 years

Pakistan posts first annual current account surplus in 14 years
Updated 54 min 55 sec ago
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Pakistan posts first annual current account surplus in 14 years

Pakistan posts first annual current account surplus in 14 years
  • Stock market hits record 140,000 points amid macroeconomic rebound under IMF program
  • Remittances top $38 billion, foreign direct investment, textile exports also rise in FY25

KARACHI: Pakistan has posted a full-year current account surplus for the first time in 14 years, alongside record-breaking performance in its equity market, reflecting broad signs of economic stabilization under the country’s $7 billion IMF program approved in September 2024.

Khurram Schehzad, adviser to the finance ministry, shared the data on social media, highlighting a $328 million current account surplus in June 2025.

“Country’s Current Account (CA) for June 2025 closes in $328Mn Surplus, taking full-year Surplus to over $2.1Bn — annual Surplus recorded after 14 years, and the largest Surplus in 22 years,” the adviser wrote on X. 

He said textile exports rose by 7.4 percent year-on-year to $17.9 billion, foreign direct investment increased 5 percent to $2.5 billion, and remittances surged 27 percent to a record $38 billion.

The Real Effective Exchange Rate (REER) dropped further to 96.6, enhancing the Pakistani rupee’s competitiveness against the dollar, which would support the country’s exports and keep the external account in check, Schehzad said.

He also cited a rally in the Pakistan Stock Exchange, where the benchmark KSE-100 index crossed 140,000 points for the first time, with market capitalization exceeding Rs16.8 trillion (about $60 billion). He noted that Pakistan is currently ranked the fourth-best performing equity market globally in July 2025 to date.

According to Topline Securities, the FY25 current account surplus of $2.1 billion (0.5 percent of GDP) marks a sharp turnaround from a $2 billion deficit in FY24, driven by a 27 percent increase in remittances and a 16 percent drop in services deficit. The goods deficit, however, grew to $27 billion.

Topline added that the surplus was bolstered by record-high March remittances of over $4 billion and structural reforms that reduced the exchange rate differential between official and informal channels.

Looking ahead, the brokerage house expects a mild current account deficit of $0.5–1.5 billion (0.1–0.3 percent of GDP) in FY26.

The economic turnaround follows structural reforms implemented under the IMF program, including currency market liberalization, energy pricing reforms and taxation measures aimed at unlocking further global financing and restoring investor confidence.


Pakistan launches major electric vehicle push, targets students and unemployed

Pakistan launches major electric vehicle push, targets students and unemployed
Updated 18 July 2025
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Pakistan launches major electric vehicle push, targets students and unemployed

Pakistan launches major electric vehicle push, targets students and unemployed
  • The scheme, likely to be launched soon, will provide free electric bikes to students who perform exceptionally well at the intermediate level
  • Last month, Pakistan also unveiled a new Electric Vehicle Policy 2025–2030, which targets 30 percent of all new vehicle sales to be electric by 2030

ISLAMABAD: The Pakistani federal government is targeting students and unemployed individuals in a major scheme to promote the use of electric vehicles, Prime Minister Shehbaz Sharif announced on Friday, saying the move will save billions of dollars in fuel imports, help protect environment and promote local industry.

The prime minister said this while presiding over a meeting in Islamabad to review promotion of electric vehicles in the country and the government assistance in acquisition of electric bikes, rickshaws and loaders, according to Sharif’s office.

The proposed scheme comes amid the cash-strapped South Asian country’s efforts to avoid costly oil imports that shrank five percent to $15 billion from July 2024 till May 2025, according to latest official figures. Islamabad is currently trying to formulate a plan to make electric vehicles accessible to people.

Officials briefed participants of Friday’s meeting that steps were being taken to enable people to acquire electric bikes, rickshaws and loaders through low-cost loans and the government will assist provision of more than 100,000 electric bikes and 3,000 rickshaws and loading vehicles.

“The federal government, including the federal board, will provide electric bikes to the toppers of boards across the country,” Sharif was quoted as saying. “The government will provide electric rickshaws and loaders to unemployed people for employment on a priority basis.”

Under the scheme, which is likely to be launched soon, free electric bikes will be provided to students who have shown exceptional performance at the intermediate level in educational boards across the country, according to Sharif’s office. A special quota of 25 percent has been kept for women, while the quota of provinces has been allocated in proportion to the population.

Pakistan last month unveiled a new Electric Vehicle (EV) Policy 2025–2030, which targets 30 percent of all new vehicle sales to be electric by 2030. The policy, which covers cars, buses, motorcycles and rickshaws, aims to accelerate the country’s shift toward sustainable transport, reduce fossil fuel dependence, and curb climate-warming emissions.

Sharif instructed officials to ensure a complete ecosystem for the production and maintenance of electric vehicles in the country, preferring people belonging to the economically weaker section in the government’s scheme.

“Third-party validation should be done for the entire mechanism of distribution of electric vehicles and government assistance in it,” he said.

Officials informed the meeting’s participants that four new battery manufacturing companies are starting their operations in the country, which will create new business opportunities and employment in Pakistan.

“The prime minister instructed [officials] to ensure that the electric bikes, rickshaws and loaders provided in the proposed scheme meet the best quality and safety standards,” Sharif’s office said.


Pakistan condemns Israel’s ongoing military actions against Syria 

Pakistan condemns Israel’s ongoing military actions against Syria 
Updated 18 July 2025
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Pakistan condemns Israel’s ongoing military actions against Syria 

Pakistan condemns Israel’s ongoing military actions against Syria 
  • UN Ambassador Ahmad calls for respect of Syria’s sovereignty and immediate cessation of violations
  • Pakistan warns continued Israeli strikes risk escalation, further destabilization in region

ISLAMABAD: Pakistan has condemned Israel’s ongoing military actions in Syria, calling them “dangerous and deliberately destabilizing,” state broadcaster Radio Pakistan reported  on Friday.

Israel has ramped up airstrikes over the past week against military and strategic sites in Damascus and southern Syria.

According to Syrian and regional monitoring groups, these strikes have resulted in civilian casualties and extensive infrastructure damage. The intensifying campaign has prompted rebukes from Syria’s government and other UN Security Council members.

“Pakistan’s Permanent Representative to the UN Ambassador Asim Iftikhar Ahmad called for the immediate cessation of all violations of Syria’s sovereignty and territorial integrity,” Radio Pakistan reported after he addressed a national statement during the UN Security Council briefing on the situation in Syria, 

Violence in Syria pitting the Islamist-led government against members of the Druze community has put a spotlight on the small but influential minority.

Straddling Lebanon, Syria, Jordan, Israel and the Israeli-occupied Golan Heights, the Druze occupy a special niche in the region’s complex politics.

Israel has cited protecting the Druze as a reason for attacking Syrian government forces this week.

Ahmad described the strikes as “repeated violations” that “must be unequivocally condemned,” warning that they threatened regional peace .

Israel bombed Syria frequently when President Bashar Assad was in power, seeking to roll back the influence established by Iran and Iran-backed groups that were deployed there to help him fight rebels.

Israel has painted the new Syrian government as a jihadist threat, saying it won’t allow it to deploy forces into southern Syria. Israel has said it wants to avoid any hostile build-up at its border, whilst also vowing to protect the Druze minority.

Israeli troops have also seized Syrian territory adjoining the occupied Golan Heights since December.

Syria’s interim President Ahmed Al-Sharaa on Thursday said Israel was promoting division among Syrians, accusing it of seeking to “dismantle the unity of our people,” saying it had “consistently targeted our stability and created discord among us since the fall of the former regime” in December. 

With inputs from Reuters