Pakistan stocks close at record high amid IMF talks, tensions in Middle East

In this photo, taken on December 29, 2023, workers interact outside the Pakistan Stock Exchange in Karachi. (AN Photo/File)
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Updated 19 April 2024
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Pakistan stocks close at record high amid IMF talks, tensions in Middle East

  • The benchmark KSE-100 index surged by 647 points after morning trading hiccups due to reports of Israel’s attack on Iran
  • Pakistani analysts say escalating tensions in Middle East will impact supply chain and increase import bill for Pakistan

KARACHI: Pakistan’s stock market recorded on Friday its highest-ever closing at 70,909 points, stock brokers and analysts said, attributing it to ongoing talks with the International Monetary Fund (IMF), but cautioning about potential economic impact of Israel-Iran tensions in the Middle East.

Explosions were heard in Iranian city of Isfahan on Friday that were described as an Israeli attack by western media. However, Tehran has not officially confirmed the development as its response remains muted.

The Pakistan Stock Exchange witnessed some nervousness in the morning trading session, when news of Israel’s attack on Iran came in. But despite the development, the benchmark KSE-100 index surged by 647 points to close at 70,909 points.

“When news of the attack on Iran came this morning, its impact was seen in the Asian and European markets at one point,” Shehryar Butt, portfolio manager at the Karachi-based Darson Securities, told Arab News.

“Nikkei saw a decline of more than a thousand points, but despite this, the Pakistan Stock Exchange performed much better.”

The Pakistani bourse has recently been trading at record highs amid positive sentiment prevailing among investors due to hopes of the country’s successful talks with the IMF.

“The basic reason for this is that Pakistan is currently in the IMF program, and very serious discussions are taking place in Washington at this time,” Butt said.

Pakistan’s finance minister, Muhammad Aurangzeb, is currently in Washington to hold talks with IMF officials for a new long-term loan program as Pakistan’s current $3 billion program is due to expire this month. The finance minister has expressed his hopes that the outline of the new program will be agreed next month.

Pakistan is expected to demand a loan size of around $7 billion but Jihad Azour, the IMF Middle East and Central Asia Director, said on Wednesday the reform package was more important than the size of the program.

“I would say the package of reform is now more important than the size of the program because we saw recently that the right measures provided the right response,” Azour said at a press briefing.

The surge in global oil prices amid geo political tensions and the Pakistani rupee’s recovery played “a catalyst role in Friday’s record close,” according to Ahsan Mehanti, CEO of the Arif Habib Corporation.

Though Pakistan’s market downplayed the Middle East tensions, but analysts said if the situation escalated, it would disrupt supply chain and impact Pakistan’s economy.

“The conflict between Iran and Israel will affect the Pakistani economy, quite a negative effect will be seen on the Pakistani economy because immediately after that, we saw geo-political situation worsening and oil started to rise,” Butt said, adding the rising global oil prices would impact Pakistan’s import bill.

Pakistan has imported petroleum products worth $12 billion during the July-March period of the current fiscal year, including $3.9 billion worth of crude oil and 2.9 billion worth of liquefied natural gas (LNG), according to official data.

Butt feared that if the situation persisted, then the attention of Saudi Arabia would also be drawn to the Middle East and the investment commitments made by the Kingdom with Pakistan could be delayed.

Haroon Sharif, an economist and former chairman of the Pakistan Board of Investment, said if the tensions in the Middle East escalated, their first impact would be on the stock market as foreign investors would like to shift their capital to safer markets.

“Another impact would be oil price escalation, hitting Pakistan’s trade deficit and traveling and cargo price would also escalate, increasing the cost of doing business,” Sharif said, adding that investors would hold their future expansion and investment plans till situation becomes stable.

Husain Haqqani, a former Pakistani ambassador to the United States and scholar at Washington DC’s Hudson Institute, said a prolonged conflict between Iran and Israel would increase uncertainty and instability across the Middle East.

“If Iran’s drone and missile attack on Israel was meant to show Iran’s reach, Israel has demonstrated its ability to strike deep inside Iran,” Haqqani told Arab News.

“Iran has several proxies that it can use while Israel has tremendous military and intelligence capabilities. Leaders of both countries have domestic political reasons to not be forgiving toward one another.”

Haqqani said the US would likely restrain Israel, while Iran would be constrained by its limited capability.

“After all, even after attacking with hundreds of missiles and drones, Iran was unable to cause real damage on ground in Israel,” he added.


Deputy PM asks authorities to expedite privatization of Pakistan-owned Roosevelt Hotel in New York

Updated 11 March 2025
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Deputy PM asks authorities to expedite privatization of Pakistan-owned Roosevelt Hotel in New York

  • The development comes at a time when an IMF mission is visiting Pakistan to review progress on its $7 billion bailout
  • Islamabad is pushing for privatization of loss-making state entities as part of the conditions set by the global lender

ISLAMABAD: Deputy Prime Minister Ishaq Dar has asked authorities to expedite privatization of Pakistan-owned Roosevelt Hotel in New York, Pakistani state media reported on Tuesday, amid Islamabad’s efforts to streamline its fragile $350 billion economy.
Roosevelt Hotel, a 19-story building located at a prime location in New York, was inaugurated in Manhattan on September 22, 1924. Named after the 26th President of the United States, Theodore Roosevelt, Pakistan’s national airline leased it in 1979 through the Pakistan International Airlines Investments Limited (PIA-IL).
The hotel closed its doors to guests in Dec. 2020 after the coronavirus pandemic shuttered the tourism industry worldwide. In 2023, New York City (NYC) administration struck a $220 million, three-year deal with PIA to convert the hotel into a shelter, as per a report in The New York Times.
On Tuesday, Dar presided over a meeting of Pakistan’s federal cabinet committee on privatization in Islamabad to review the progress of the ongoing privatization initiatives, including that of the Roosevelt Hotel in New York, the Radio Pakistan broadcaster reported.
“Deputy Prime Minister urged the Privatization Commission to fast track the privatization process of the Roosevelt Hotel,” the report read.
Roosevelt Hotel and PIA are among the main entities Pakistan is pushing to privatize as part of economic reforms undertaken by Islamabad under its loan agreements with the International Monetary Fund (IMF), with a $7 billion extended funds facility agreed in Sept. being the latest such bailout.
The development comes at a time when an IMF mission is visiting Pakistan to review the South Asian country’s progress on key IMF conditions as part of the first review of the $7 billion bailout. A successful review will result in the release of around $1 billion to Pakistan as second installment under the program.
Finance Minister Muhammad Aurangzeb last month said they were confident of meeting targets of the IMF program. Pakistan was able to build some trust with the IMF by completing a short-term, nine-month program last year.
Previous loan programs in Pakistan ended prematurely or saw delays after the governments at the time faltered on meeting key conditions. However, the government of Prime Minister Shehbaz Sharif is making rigorous efforts to boost trade and foreign investment in order to revive the country’s economy and end its reliance on foreign loans.


Who are Pakistani Baloch separatist militants behind train hijacking in Balochistan?

Updated 11 March 2025
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Who are Pakistani Baloch separatist militants behind train hijacking in Balochistan?

  • The mineral-rich region is home to Beijing’s massive investment in Gwadar deep water port and other projects
  • The BLA is the strongest of insurgent groups long operating in Balochistan that borders Afghanistan and Iran

ISLAMABAD: Separatist militant group the Baloch Liberation Army (BLA) claimed that they had taken hostages during an attack on a train carrying hundreds of people, including paramilitary troops, in southwestern Pakistan on Tuesday and threatened to kill them.
The BLA is the strongest of a number of insurgent groups long operating in the area bordering Afghanistan and Iran, a mineral-rich region that is home to Beijing’s investment in Gwadar deep water port and other projects.
In what was previously a low-level insurgency, the militants have in recent months stepped up their activities using new tactics to inflict high death and injury tolls and target Pakistan’s military.
Here are facts about the group, which has also targeted Chinese interests.
WHAT ARE THE BLA’S GOALS?
The BLA seeks independence for Balochistan, a province located in Pakistan’s southwest and bordering Afghanistan to the north and Iran to the west.
It is the biggest of several ethnic insurgent groups that have battled the federal government for decades, saying it unfairly exploits Balochistan’s rich gas and mineral resources.
The insurgents have been fighting to lay a claim to local resources which they say belong to their people.
Balochistan’s mountainous border region serves as a safe haven and training ground for the Baloch insurgents and Islamist militants.
HOW HAS IT BECOME MORE LETHAL?
The BLA shocked the country’s security establishment when it stormed army and navy bases in 2022.
It has deployed women suicide bombers, including in an attack on Chinese nationals at a university in Karachi and a bombing in southwest Balochistan.
An umbrella group of several Baloch ethnic groups said last week that it had convened all factions in a bid to unite them under a unified military structure.
A dormant BLA splinter group called BLA (AZAD) became active in recent weeks.
WHAT ARE THE BLA’S TARGETS?
The BLA often targets infrastructure and security forces in Balochistan, but has also truck in other areas — most notably the southern port city of Karachi.
The insurgents target Pakistan’s army and Chinese interests, in particular the strategic port of Gwadar on the Arabian Sea, accusing Beijing of helping Islamabad to exploit the province.
Militants have killed Chinese citizens working in the region and attacked Beijing’s consulate in Karachi.
The BLA, separately, was also at the center of tit-for-tat strikes last year between Iran and Pakistan over what they called militant bases on each other’s territory, which brought the neighbors close to war.
BALOCHISTAN’S SIGNIFICANCE
Balochistan is an important part of China’s $65 billion investment in the China Pakistan Economic Corridor, a wing of President Xi Jinping’s Belt and Road initiative.
It is home to key mining projects, including Reko Diq, run by mining giant Barrick Gold (ABX.TO), and believed to be one of the world’s largest gold and copper mines.
China also operates a gold and copper mine in the province.
The decades-old insurgency has continued to keep the province of some 15 million people unstable and created security concerns around Pakistan’s plans to access untapped resources.
It is Pakistan’s largest province by area, but smallest by population. Balochistan also has a long Arabian Sea coastline, not far from the Gulf’s Strait of Hormuz oil shipping lane.
Hundreds of Baloch activists, many of them women, have protested in Islamabad and Balochistan over alleged abuses by security forces — accusations the government denies.
Islamabad accuses India and Afghanistan of backing the militants to damage Pakistan’s relations with China, a charge both countries deny.


Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

Updated 11 March 2025
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Islamabad urges Oman to expand deep-water port’s reach to Pakistan to enhance regional trade

  • The development comes during Commerce Minister Jam Kamal Khan’s official visit to Oman
  • The minister reaffirms Pakistan’s commitment to boosting trade in industrial, logistics sectors

ISLAMABAD: Pakistani Commerce Minister Jam Kamal Khan has urged Oman to expand the reach of its deep-water port and free zone by connecting it through Pakistan to Central Asia and China to enhance regional trade cooperation, Khan’s ministry said on Tuesday.
The statement came during Khan’s three-day official visit to Oman where he spent his first day in the industrial hub of Sohar to discuss bilateral trade, investment and industrial collaboration between the South Asian nation and the Middle Eastern state.
Pakistan aims to leverage its strategic geopolitical position to enhance its role as a key trade and transit hub connecting landlocked Central Asian republics with the rest of the world. In recent months, there has been a surge of visits, investment talks and economic activity involving Gulf and Middle Eastern nations.
During his visit to Sohar Port, the Pakistani commerce minister was given a detailed briefing on the port’s state-of-the-art facilities and its role as a major trade and logistics hub.
“He emphasized the potential for enhanced trade cooperation, particularly in expanding Sohar Port and Free Zone’s reach through Pakistan to Central Asia and China,” the Pakistani commerce ministry said in a statement, following Khan’s meeting with Omani officials.
Khan, who was accompanied by Pakistan’s ambassador to Oman Naveed Safdar Bokhari and other officials, was presented with an overview of the integrated free economic zone and industrial city, highlighting Sohar Port’s strategic role in handling 80 percent of Oman’s international trade and industrial activities.
The commerce minister urged joint ventures between Pakistani and Omani businesses during his meeting with industrialists and business leaders.
“The minister reaffirmed Pakistan’s commitment to boosting trade with Oman, particularly in the industrial and logistics sectors,” the commerce ministry said.
Later, Khan was taken on a city tour where he offered prayers at the iconic Sultan Qaboos Mosque in Sohar.
Last August, Islamabad invited Oman to invest in Pakistan’s agriculture, mineral and IT sectors through the Special Investment Facilitation Council, a Pakistani civil-military body aimed at attracting foreign investment.
The South Asian nation has been making efforts to boost foreign investment in order to reduce its reliance on foreign debt to support its fragile $350 billion economy. There has recently been a surge in economic engagements between Pakistan and Saudi Arabia, United Arab Emirates, Uzbekistan, Azerbaijan and other nations.


Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

Updated 11 March 2025
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Pakistani architect Yasmeen Lari turns down Israel’s Wolf Prize over ‘genocide’ in Gaza

  • The Wolf Prize is an international award granted in Israel to scientists, artists for achievements in ‘interest of mankind and friendly relations among people’
  • Lari, who works in the intersection of architecture and social justice, says declining the award was ‘the very least I could do’ given the situation in Gaza

KARACHI: Renowned Pakistani architect Yasmeen Lari has refused to accept the prestigious Wolf Prize 2025 in the field of architecture over the “continuing genocide” of Palestinians in Gaza, she confirmed on Tuesday.
The Wolf Prize is an international award granted in Israel since 1978 to living scientists and artists for their “achievements in the interest of mankind and friendly relations among people.”
It is awarded in six fields, including agriculture, chemistry, mathematics, medicine, physics, and an arts prize that rotates between architecture, music, painting and sculpture.
Lari, who works in the intersection of architecture and social justice, wrote to Wolf Foundation that she was grateful for the honor, but could not accept it “in view of the unfortunate continuing genocide in Gaza.”
“I declined the award because of the ongoing genocide in Gaza, a reason I explicitly stated in my response to them. Given the current situation in Gaza, accepting the award was out of the question,” she told Arab News.

Pakistani architect Yasmeen Lari speaks during an interview with Arab News at her office in Karachi on July 20, 2024. (AN Photo/File)

The development came as Israeli fire killed eight people in the Gaza Strip in the past 24 hours, Palestinian officials said on Tuesday, even as a fragile ceasefire with Hamas has largely held. Israel last week suspended supplies of goods and electricity to the territory of more than 2 million Palestinians as it tries to pressure Hamas to accept an extension of the first phase of their ceasefire, which ended on March 1.
Israel wants Hamas to release half of the remaining hostages in return for a promise to negotiate a lasting truce. Hamas instead wants to start negotiations on the ceasefire’s more difficult second phase, which would see the release of remaining hostages from Gaza, the withdrawal of Israeli forces and a lasting peace. Hamas is believed to have 24 living hostages and the bodies of 35 others.
Israel’s war on Gaza, which began after Oct. 7, 2023 attacks by Hamas, has killed more than 48,000 Palestinians, a majority of them women and children. The 15-month Israeli military campaign has laid waste to the Gaza Strip, destroying hospitals, schools and entire residential neighborhoods.
“Declining the award was the very least I could do,” Lari told Arab News.


Lari is known for her socially conscious works on humanitarian grounds and for catering to the spatial needs of Pakistan’s most marginalized communities. She co-founded the Heritage Foundation of Pakistan with her husband, Suhail Zaheer Lari, in 1980, and has constructed over 50,000 sustainable self-built shelters and over 80,000 ecological cooking stoves using natural materials like mud, lime, and bamboo.
The philanthropic architect, who advocates that traditional construction techniques can lead to low-impact carbon-neutral buildings, was awarded the prestigious Royal Institute of British Architects Royal Gold Medal in 2023 for her humanitarian work.


Pakistan police arrest three after father commits suicide over forced marriage of minor girl

Updated 11 March 2025
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Pakistan police arrest three after father commits suicide over forced marriage of minor girl

  • The 11-year-old was forcibly given in marriage by a village council in Dera Ismail Khan to settle a dispute
  • Police say neither the girl’s father nor villagers reported the incident on time to help prevent it

PESHAWAR: Police have arrested three suspects and members of a local Panchayat (village council) in connection with the forced marriage of a minor girl under Vani, a tribal custom used to settle feuds, in a remote area of Khyber Pakhtunkhwa, according to a senior police official and a local elder.

The incident, which took place in the Bhagwani Shumali area of Paharpur, the main town in Dera Ismail Khan district, involved an 11-year-old girl from a low-income family being forcibly given in marriage to resolve a dispute last Friday.

Vani is an illegal practice where minor girls are handed over as compensation in cases involving murder or allegations of illicit relations.

Gohar Ali, Superintendent of Police (SP) for the Paharpur region, told Arab News that police acted swiftly upon receiving audio messages from the girl’s father, whom he identified only by his first name, Adil, and who died by suicide following the Panchayat’s decision.

Adil, a local barber, ingested poisonous pills after recording distressing audio messages naming the accused.

“The police immediately launched raids, rescued the minor girl and handed her over to her family,” the police officer said. “Three main suspects identified by the deceased person have been arrested, along with two members of the Panchayat. Additionally, Rs600,000 [$2,144] extorted from Adil by the makeshift council has been recovered,” the police officer added.

Malik Inayatullah, a local elder and chairman of the village peace committee, told Arab News he witnessed how the entire incident unfolded.

“The deceased left behind six daughters, including the one given to the rival family under the custom of Vani, and had no male child,” he said.

“The decision of the Panchayat is regretful,” Inayatullah continued. “It has not only robbed a young girl of her future but also cost her father his life. We have already extended our support to the girl’s family and will provide all possible help to rebuild their lives.”

The local elder said the dispute began when a local landlord accused Adil’s nephew of having illicit relations with the daughter of an influential figure in the area.

The latter convened the Panchayat before abducting Adil, subjecting him to torture and forcing him to sign a stamp paper agreeing to give his daughter in Vani to settle the matter.

“Neither Adil nor any villagers reported the incident to the police [on time], which could have prevented this tragic outcome,” police officer Ali said.

He said police were now investigating the case from multiple angles to ensure justice is served to the aggrieved family.