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Pakistani 'oil city' masterplan for $10 billion Aramco refinery expected by year's end

Gwadar port, Pakistan, February 15, 2021. (AN photo by Khurshid Ahmed)
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Updated 20 February 2021
Khurshid Ahmed  
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Pakistani 'oil city' masterplan for $10 billion Aramco refinery expected by year's end

  • During 2019 visit of Crown Prince Mohammed bin Salman, Saudi Arabia and Pakistan signed seven investment deals worth $21 billion 
  • Industrialization in Gwadar expected to increase per capita income to $15,000 by year 2025, officials say
Updated 20 February 2021
Khurshid Ahmed  

GWADAR: The planning process for the country’s largest oil city — which will house a $10 billion Aramco Oil Refinery project — in Pakistan’s southwestern Balochistan province is expected to conclude before the end of the year, Pakistani officials said this week. 

The proposed mega oil city will be developed at an area of 80,000 acres in Gwadar District for the refining and processing of petroleum products mainly imported from the Gulf region for local and regional needs.  

“The planning for the mega oil city which will host Aramco Refinery and petrochemical complex is in progress and we will take 6 to 7 months to complete the master plan,” Shahzeb Khan Kakar, Director General of Gwadar Development Authority (GDA), told Arab News.




Shahzeb Khan Kakar, Director General of Gwadar Development Authority (GDA), speaks to Arab News on February 15, 2021 about Gwadar Oil City which will house Aramco Oil Refinery: (AN photo by Khurshid Ahmed)

During the 2019 visit of Saudi Crown Prince Mohammed bin Salman, Saudi Arabia and Pakistan signed seven investment deals worth $21 billion that included a long-term Aramco oil refinery project, mineral development, two RNLNG power plants, Acwa Power, Saudi Fund for Pakistan, petrochemical project, and food and agriculture projects. 

The $10 billion Aramco Oil Refinery with 250,000-300,000 bpd oil refining capacity is expected to take 5-6 years from its inception to commissioning. The project will have a $1 billion petrochemical complex which will lay the foundations of the petrochemical industry in Pakistan with the production of polyethylene and polypropylene. 

“Though the federal government is directly dealing with the Saudis, we will invite them after the planning is completed,” Kakar said and added: “The oil city is equally big as Gwadar. We have made the master plan of Gwadar as a smart city at an area of 88,000 acres keeping in view requirements up to 2050.”  
Apart from the oil city, authorities in Gwadar are also developing an industrial zone that aims to attract big investment-- which is slated for completion by 2023.
“Industrialization is expected to start from 2023 with the provision of basic utilities including electricity,” Attaullah Jogezai, Managing Director of Gwadar Industrial Estate Development Authority (GIEDA) told Arab News. 
Gwadar is touted as the 'crown jewel' of the multi-billion dollar China Pakistan Economic Corridor (CPEC). 
Keeping in view anticipated development projects backed by Saudi and Chinese investment, the GDA chief forecasted that the per capita income of Gwadar would surge to $15,000 by 2050.  

“Fisheries, oil refinery, petrochemical complexes, shipyard, tourism industry and most importantly, the operations of Gwadar port will generate huge income and increase per capita income,” Kakar explained. 
“This can be achieved by providing electricity, protection and a sound management system.”  
Authorities working on a 300 MW coal-fired power plant and a five million gallons per day desalination plant say both projects will be functional by January 2023. 
“Regulations have been framed to allocate lands in the industrial zone,” Manzoor Hussain, additional secretary of industries for Balochistan, told Arab News and added: “Now land will be allotted only to those industrialists who will set them up within given timeframe. Our mission is to create employment in the province.”  

 

 

Topics: Pakistan Aramco Saudi Arabia

For these Pakistani women, Independence Day offers a chance to earn and celebrate

Updated 13 August 2025
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For these Pakistani women, Independence Day offers a chance to earn and celebrate

  • Housewives, maids, mothers turn to selling flags and festive goods for extra income during Aug. 14 rush
  • Seasonal stalls in Pakistan’s commercial center can bring women vendors savings of up to $54 in a few days
Updated 13 August 2025
NAIMAT KHAN

KARACHI: In the days before Pakistan’s Independence Day, the streets of Karachi fill with green and white flags, bunting and balloons, but for many women in the city, the national celebration is also a time to step into business — if only for a few days.

Housewives, maids and street vendors set up temporary stalls along busy roads and markets, selling flags, badges, hats and T-shirts to customers celebrating the August 14 holiday.

In an economy where inflation has eroded incomes and steady jobs are scarce, the seasonal rush offers a welcome boost to household finances.

“August 14 is Independence Day, a day of happiness, so we also celebrate our happiness and earn a livelihood for the children,” said Shama Sikandar, a housewife selling Independence Day T-shirts for the first time this year from a roadside stall on Shahra-e-Quaideen.

“Before this, I would just stay at home and do nothing all year.”

She said the sight of other women working outside the home inspired her to try.

“It feels good to be working. I have seen many women even driving rickshaws, some riding motorcycles, some pushing carts, and others doing various jobs to earn a livelihood for their children.”

In Karachi, seasonal vendors crowd key intersections and shopping strips ahead of the holiday, calling out to passing motorists and pedestrians. The sales supplement incomes for women who otherwise rely on low-paying, year-round work.

For 32-year-old maid and mother of three, Saima Babar, the August rush is a planned investment.

From her savings of 30,000 rupees ($105), she buys flags and other celebratory goods to sell on the streets.

“Thanks to Allah, the household runs, we manage one meal a day, and that’s fine, right? My children are doing okay,” she said. “[By selling flags] I manage to save about 10 to 12 thousand rupees ($36–$43).”

Husna, a mother of seven who usually sells pens and keychains at traffic lights in Karachi’s upscale Defense area, shifts her stall to the Sindhi Muslim neighborhood every August.

“On some flags, I earn 20 rupees ($0.07) profit; on others, 30 rupees ($0.11). In this way, I make around 1,200 rupees ($4.30) a day,” she said, before handing over a badge and a couple of flags to a customer.

“Our livelihood is made; there’s enough for bread, water, and lentils. It’s happiness for you, and it’s happiness for us too. Pakistan Zindabad.”

Even women who have been selling for years say the holiday provides a reliable boost.

Sajan Kumar and his wife, Suman, have been setting up a flag stall on Shahra-e-Faisal every August for the past eight years.

“As soon as August 14 arrives, we come here to sell flags,” Kumar said. “It’s a day of celebration. We sell every year. People buy them, celebrate, and also come with their children to stroll around. We manage to save around 10 to 15 thousand rupees ($36–$54).”

Pakistan marks its 79th Independence Day this year under the theme “Marka-e-Haq – the Battle of Truth,” with celebrations beginning on Aug. 1 and running through the month. Across Sindh and Punjab provinces, flag-raising ceremonies, cultural shows, boat parades, marathons, and even donkey cart races have drawn large crowds.

For Babar, the more the merrier.

“The more people celebrate, the more purchases there are, right?” she said with a smile.

Topics: August 14 Karachi Indepdence Day

Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

Updated 13 August 2025
Reuters
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Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

  • Pakistan’s international bonds rose as much as 1 cent to between 90-100 cents on the dollar following ratings upgrade
  • Aurangzeb says more room for central bank to cut key policy rate from 11 percent on back of positive economic indicators
Updated 13 August 2025
Reuters

Moody’s said on Wednesday it had raised Pakistan’s credit rating by one notch to ‘Caa1’ from ‘Caa2’ due to an improving external financial position and it assigned the country a “stable” outlook.

The announcement came within hours of Pakistan’s Finance Minister Mohammed Aurangzeb saying there was more room for the central bank to cut the country’s key policy rate from 11 percent on the back of positive economic indicators.

“The credit rating’s improvement is a sign that economic policies are heading toward the right direction,” Prime Minister Shehbaz Sharif said in a statement.

Pakistan’s international bonds rose as much as 1 cent to between 90 and 100 cents on the dollar following the ratings upgrade. It lifted most of them to their highest since early 2022 when fears of a full-blown debt crisis sent them plunging to as little as 30 cents.

Moody’s decision to raise the rating by one notch after Fitch and S&P did the same will help Pakistan’s capability to raise external debt. Pakistan says its economy is on a recovery path after a $7 billion IMF bailout helped to stabilize it.

“We changed the outlook for the Government of Pakistan to stable from positive,” Moody’s said in a statement.

“The upgrade to Caa1 reflects Pakistan’s improving external position, supported by its progress in reform implementation under the IMF Extended Fund Facility (EFF) program,” it said.

Pakistan’s debt affordability has improved, but remains one of the weakest among rated sovereigns, Moody’s said, adding that the Caa1 rating also reflected the country’s weak governance and high degree of political uncertainty.

Aurangzeb told a gathering of businessmen in Islamabad ahead of the Moody’s announcement that he was expecting an improvement in Pakistan’s credit rating by other agencies after Fitch and S&P.

“We are hopeful of progress in terms of the policy rate going south,” he added.

Aurangzeb said it was his personal view that there was more room for a rate cut toward the end of the year, adding that it was for the central bank to make the final call on the issue. The next policy rate announcement is due on September 15. The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll they had forecast a reduction of 50 to 100 basis points. The bank said the inflation outlook had deteriorated due to rising energy prices.

Inflation accelerated to 4.1 percent year-on-year in July. 

Topics: Moody's ranking Pakistan's economy macro-economic indicators 

Pakistan’s central bank sees FY26 growth up to 4.25%, trade gap to widen

Updated 13 August 2025
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Pakistan’s central bank sees FY26 growth up to 4.25%, trade gap to widen

  • Current account deficit forecast at 0–1% of GDP despite remittance growth
  • Forex reserves projected to reach $15.5 billion by end-December 2025
Updated 13 August 2025
Ismail Dilawar

KARACHI: Pakistan’s central bank on Wednesday projected economic growth of up to 4.25 percent in the current fiscal year but warned the trade deficit would widen, even as reserves are set to climb on the back of steady remittances and foreign inflows.

The forecast comes as Pakistan implements reforms under a $7 billion International Monetary Fund (IMF) program approved in September 2024, which has helped stabilize the currency, ease inflation and restore investor confidence. The IMF deal is tied to fiscal consolidation, energy sector reforms, and measures to boost exports, part of a broader effort to strengthen macroeconomic stability after years of chronic external imbalances.

The economy returned to moderate growth last year, aided by improved agricultural output, lower global commodity prices, and a series of policy rate cuts totaling 1,100 basis points since late 2024. Inflation has eased from record highs, while the rupee has stabilized against the dollar after a crackdown on the illegal currency market.

“With the policy rate kept unchanged at 11 percent in the MPC meetings in June and July, the MPC expects the real policy rate to be adequately positive to stabilize inflation within the medium-term target range,” the State Bank of Pakistan (SBP) said in its Monetary Policy Report (MPR) released on Wednesday. 

“In the external account, the MPR expects the trade deficit to widen further and, notwithstanding continued expected growth in workers’ remittances, result in a current account deficit of 0–1 percent of GDP in FY26,” it added.

The central bank said “projected financial inflows, coupled with continued SBP interbank FX purchases, would support further buildup in SBP’s FX reserves, which are projected to rise to $15.5 billion by end-December 2025.”

Economic activity, it said, was “projected to gain further traction, with the impact of the earlier reductions in the policy rate still unfolding,” and real GDP growth was expected to range between 3.25 percent and 4.25 percent in FY26.

The MPR also flagged “potential external and domestic risks to the baseline macroeconomic outlook” and included analysis of the lag in monetary policy transmission, comparisons with global central bank decisions, and the SBP’s use of alternative data and machine learning to fill gaps in labor market and agriculture statistics.
 

Topics: State Bank of Pakistan (SBP) Growth rate of Pakistan GDP

Pakistan’s first Islamic digital bank offers 14% Independence Day cashback

Updated 13 August 2025
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Pakistan’s first Islamic digital bank offers 14% Independence Day cashback

  • Campaign runs Aug. 13–22 with Rs3,000 cap per customer
  • Cashback credited to accounts within one business day
Updated 13 August 2025
Arab News Pakistan

KARACHI: Pakistan’s first Islamic digital bank is offering a 14 percent cashback on eligible debit card and QR code transactions to mark the country’s 78th Independence Day, in a campaign aimed at promoting cashless and Shariah-compliant payments.

The “Azadi Cashback” promotion, launched by aik, will run from Aug. 13 to Aug. 22 and allow customers to earn up to Rs3,000 ($10.75) in cashback during the period, credited to their accounts within one business day. The offer excludes utility bills, cash withdrawals, peer-to-peer transfers and government payments.

“The cashback is structured as a discretionary gift on the momentous occasion of Pakistan’s 78th Independence Day,” aik said in a statement.

aik, which operates as a digital-only platform, said the promotion supports its mission to provide Riba-free financial services and encourage secure, cashless transactions. It aims to create a banking experience rooted in transparency, ethics and user empowerment.

aik said the Independence Day campaign was part of efforts to “accelerate the adoption of secure digital payments across Pakistan,” combining “convenience with compliance” for users seeking Islamic finance options.

Digital banking is expanding rapidly in Pakistan, driven by high smartphone penetration and government incentives for electronic payments. According to the State Bank of Pakistan, digital retail transactions surged over 50 percent year-on-year in fiscal 2024, with mobile banking emerging as a key growth segment.

Topics: Cashless economy Shariah Banking Shariah Compliant

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

Updated 13 August 2025
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India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

  • Flag maker reports sales up by up to 50 percent as households and businesses spend heavily on August 14 decorations
  • Traders say brisk Independence Day buying is lifting markets despite inflation squeezing consumer budgets
Updated 13 August 2025
Ismail Dilawar

KARACHI: Pakistan’s largest flag manufacturer, VIP Flags, is expecting around 50 percent growth in sales this year as the public marks the country’s 78th Independence Day with unusual zeal, fueled by celebrations of victory in the May 2025 conflict with India.

The two nuclear-armed neighbors, which have fought three major wars since 1947, engaged in their deadliest fighting in decades this May. The fighting ended on May 10 after US mediation, with Prime Minister Shehbaz Sharif’s government declaring victory and saying it had downed at least six Indian fighter jets.

Officials have since linked the conflict’s outcome to the heightened national fervor surrounding August 14 this year, reflected in booming flag markets and sales of other Independence Day paraphernalia.

“Our business, all the businesses have grown 50 percent,” said VIP Flags CEO Nisar Ahmed Sheikh, adding that much of his stock had been sold to marchers rallying in support of Pakistan’s armed forces during the war with India.

VIP Flags manufactures flags for domestic customers, the armed forces, and international buyers in Saudi Arabia and the UAE, and holds Guinness World Records for the largest flags made in 2004 and 2008.

Sheikh said sales this year would likely run into millions of units.

“Obviously when people were filled with passion [after the war with India] and started hoisting flags, the flags business saw an uptick and increased compared to last year,” he told Arab News. 

“It is still growing and people are putting flags on their cars, bicycles and motorcycles.”

Sheikh said the surge in sales extended well beyond flags, with market vendors incorporating Independence Day themes into a wide range of products — from shirts, mufflers and headbands to shawls, dresses and children’s clothing — creating a vibrant festive atmosphere.

“People must be spending billions of rupees on this (celebrations) and this spending boosts the economy,” the CEO said. 

In Pakistan’s commercial hub of Karachi ahead of Aug. 14, large and small flags adorned vehicles, houses and office buildings, alongside buntings and night-time illuminations. Meanwhile, federal and provincial governments are holding daily events, with top officials like the prime minister and army chief expected to attend ceremonies in Islamabad on Aug. 13 and 14.

“The last time we saw such a show of national zeal on Independence Day was in Zia’s time,” Sheikh said, referring to former military ruler Zia-ul-Haq. “We see people decorating their houses, vehicles and vicinities with flags and buntings and badges.”

Abdul Wahab, a finisher at one of Sheikh’s factories, said he expected at least a 25 percent income increase this season. 

“We are seeing a rush in the market because of this war we recently fought with India,” said the 26-year-old, who plans to work overtime to meet demand.

For lawyer Bad-e-Saba, the occasion was a chance to pass on a message to the next generation.

“The war we recently won against Hindustan is a matter of great pride for us. We want to convey it to our children so they could know where we are standing against our enemy,” she said.

“We want to tell our enemies that we can take good care of our country and our next generation will do it better.”

Topics: Pakistan Independence Day 2025 Pakistan India Conflict

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