ISLAMABAD: Pakistani financial analysts on Thursday said the country’s economic stability would improve following reported debt rollover commitments from China, Saudi Arabia and the United Arab Emirates, which is expected to pave the way for a final nod for a new $7 billion loan program from the International Monetary Fund (IMF).
Pakistan secured debt rollover commitments from China, Saudi Arabia and the United Arab Emirates (UAE) for a year, according to a report published by Bloomberg on Tuesday. Last month, the country reached a staff-level agreement with the IMF for a new $7 billion loan program that is pending a final nod from the lender’s executive board.
Grappling with soaring inflation, low foreign exchange reserves and a weak currency, Pakistan has struggled since 2022 to keep its fragile $350 billion economy afloat.
The South Asian nation completed a short-term $3 billion IMF program in April this year which helped Islamabad avert a sovereign default in 2023. However, Islamabad reportedly needed financing commitments from bilateral donors to get a final nod from the IMF board, expected later this month, for the fresh bailout.
“The overall economic stability will improve with the debt rollover and expected IMF loan,” Dr. Vaqar Ahmed, the joint executive director of the Sustainable Development Policy Institute (SDPI), told Arab News.
“The IMF board meeting could lead to a credit rating upgrade and enhance investor confidence.”
Dr. Ahmed said the debt rollovers and IMF nod would improve Pakistan’s access to international capital markets, which would allow the government to issue lower-rate sovereign bonds and panda bonds.
Panda bonds are Chinese yuan-denominated bonds issued by Pakistani entities in China’s bond market, allowing them to raise funds in the Chinese currency, diversify funding sources, and access Chinese investors, thereby reducing reliance on USD-denominated debt.
Dr. Ahmed said an improved credit rating could also reduce future borrowing costs, providing the government with the much-needed space to implement the key energy and state-owned enterprises reforms.
He warned the government against falling short of implementing IMF-mandated reforms on energy, taxation and state-owned enterprises.
The IMF has asked Pakistan to undertake reforms to broaden its tax base, improve management of state-owned enterprises, strengthen competition, secure investment, enhance human capital, and scale up social protection through increased generosity and coverage in major welfare programs.
“IMF will look at these reforms critically and any slippage could lead to delays in the program,” Dr. Ahmed added.
However, he said relying on bilateral creditors for frequent debt rollovers was not “sustainable” as frequent rollovers reduce debt market options and increase the cost of borrowing in the longer run.
Pakistani economist Sakib Sherani agreed the debt rollovers would help Pakistan gain access to international capital markets.
“Both the debt rollover and the IMF loan will be credit-positive for the country,” Sherani told Arab News. “And will improve the chances of accessing international capital markets.”
However, he said the debt rollover provides the government a “significant” but short-term space and that Pakistan’s IMF program has been “poorly designed.”
“The IMF program on paper should help in furthering structural reforms but in reality, has been poorly designed and suffers from perverse incentives and unintended consequences that will prove to be antithetical to the needed reforms,” he explained.
Sherani said Pakistan was on course to secure the IMF’s nod for the $7 billion loan. He called for a broader debt restructuring to make Pakistan’s external debt situation “more sustainable.”
“Reliance on short-term bilateral debt rollovers is kicking the can down the road rather than addressing the debt overhang the country faces,” Sherani concluded.
Pakistan’s economic stability to ‘improve’ after debt rollovers from Saudi Arabia, UAE, China — experts
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Pakistan’s economic stability to ‘improve’ after debt rollovers from Saudi Arabia, UAE, China — experts
- Debt rollovers to pave way for International Monetary Fund’s final nod for $7 billion loan program
- Rollovers to also improve Pakistan’s credit rating, leading to reduced borrowing costs, says experts
‘Lodge of Hope’: Karachi’s Freemasons building repurposed for wildlife preservation
- Freemasons Lodge Building was taken over by government after freemasonry was banned in Pakistan in 1972
- Freemasonry is a global fraternity viewed with suspicion over secrecy, conspiracies about alleged power and influence
KARACHI: On Karachi’s Strachan Road, where traffic rarely slows and history is easy to miss, a grand neoclassical building stands quietly between the past and the present.
Known as the “Lodge of Hope,” the building was Karachi’s principal Freemasons Hall, one of four in the city during British rule and standing to date as a reflection of the city’s colonial inheritance and postcolonial socio-political evolution.
Flanked by tall Greek columns, their concrete softened by time, the building now houses the Sindh Wildlife Department’s offices, a natural history museum and a public library.
But long before schoolchildren and researchers wandered through its storied halls to marvel at preserved specimens of leopards, birds and reptiles, this was a place plagued by secrecy and suspicion.
Built around 1914 after a storm destroyed the fraternity’s earlier structure near the exclusive members-only Sindh Club, it served as the meeting place for members of the global freemason brotherhood whose rituals, symbols and origins trace back to the cathedral builders of medieval Europe.
What began as an elite and exclusive institution gradually became the subject of public fascination and fear, its secrecy spawning stories, conspiracy theories and, in time, an outright ban.
Freemasonry is a fraternal organization, not a religion, with roots in medieval stonemason guilds, emphasizing brotherhood, charity, and moral development through rituals and symbolic teachings. Controversy surrounding freemasonry stems from a few key factors, including its secretive nature, perceived elitism, religious and political affiliations, and the prevalence of conspiracy theories surrounding its alleged power and influence on world events.
“The masons are those who were called previously the Templars,” explained Dr. Kaleemullah Lashari, a historian and archaeologist who played a key role in the building’s conservation between 2008 and 2011.
“The first Lodge, as the story goes, was constructed where the present Sindh Club [in Karachi] is and while the Sindh Club emerged, and the Sindh Club had this opportunity to expand itself, so the Freemasons Lodge was given another alternate place, which is here on Strachan Road.”
Membership of the lodge was open to anyone — Muslim, Hindu, Parsi or Christian — who embraced the masonic ideals of fraternity and self-improvement but the secretive rituals and symbols raised suspicion.
“The people thought that they [freemasons] were doing something very secretive,” Lashari said. “This is the reason that people used to call it ‘jadu ka ghar’ [house of magic].”
Dr. Tauseef Ahmed Khan, an academic interested in Karachi’s history, described the lodge as an “elite club” during the years of British rule.
“Very few people were given membership, and they were all elite people, noblemen, bureaucrats, and then a lot of conspiracy theories were also spread,” he added.
“ESPIONAGE”
Among the suspicions was that the Freemasons building was being used for espionage. Subsequently, in 1972, amid political turbulence and rising nationalist sentiment, a staff member of a foreign mission in Karachi, who happened to be a freemason, was accused of smuggling arms into Pakistan, leading to an official ban on freemasonry.
Following this development, the building changed hands several times, briefly accommodating the Press Information Department before falling into disrepair. That changed in 1982 when the Sindh Wildlife Department moved in.
“This place has become a ray of hope for wildlife,” said Javed Ahmed Mahar, a conservator at the Sindh Wildlife Department. “We have also worked on its decoration and embellishment. If you look at its comparative images in the last 2–3 years, you will see that there is a great difference here.”
The building is also home to Sindh Wildlife Library and over 9,000 books.
“There are a lot of rare books here,” Shahid Ali Khan, the dedicated librarian who has served here for four decades, said. “There are a lot of books that are not available in the market right now. These are handwritten books.”
Despite its rebirth, the building still wears its past. Inspired by classical Greek temples with their ornate columns and symmetrical layout, the structure also incorporates Edwardian features such as dual reception rooms flanking the main entrance.
Today, the building is not only architecturally unique but also functionally vital, one of the few government spaces in Pakistan that have been both historically preserved and actively repurposed.
“This is more than just an office or museum,” Mahar said, “it’s our cultural heritage.”
Pakistan’s textile industry looks to ‘grab business’ amid US-China tariff escalation
- Textile sector in Pakistan generates about $17 billion in exports and is the largest employer in the country
- Pakistan’s textile industry is expected to face potential losses of up to $2 billion in textile exports under new tariffs
ISLAMABAD: Pakistan’s textile sector is looking at opportunities to “grab business” as the US and China steadily hiked tariffs amid an escalating trade war, the head of the country’s textile council said this week.
The textile sector in Pakistan generates about $17 billion in exports and is the largest employer in the country, according to Fawad Anwar, Chairman of the Pakistan Textile Council.
“There is an opportunity to grab (business) from China. How well we can do that, that depends on how well we can sit on the table and negotiate,” said Anwar, who spoke to Reuters hours before US President Donald Trump temporarily paused hefty tariffs on dozens of countries for 90 days, except for China.
Pakistan would have been slapped with a 29 percent tariff rate before Trump’s turnabout on Wednesday. A 10 percent blanket duty on almost all US imports will remain in effect, the White House said.
Trump also hiked the tariff on Chinese imports to 125 percent from the 104 percent level that kicked in on Wednesday.
Previously, Beijing had slapped 84 percent tariffs on US imports to match an earlier tariff salvo from Trump and had vowed to “fight to the end” in an escalating tit-for-tat trade dispute between the world’s top two economies.
“This is a war between the two giants, and everything else is a collateral damage,” said Anwar.
Pakistan’s textile industry is expected to face significant challenges from the tariffs with potential losses of up to $2 billion in textile exports estimated by experts, if the 29 percent tariff rate is reinstated after Trump’s 90-day pause ends.
For Pakistan’s textile industry’s Anwar, the levy hike is a short term issue which ‘has to be resolved’.
“They cannot sustain this 29 percent, the US retailer or the US consumer… nobody can sustain this big of a percentage increase,” said Anwar.
Pakistan hopeful over success of June conference on settling Israel-Palestine conflict
- Commends France and Saudi Arabia for co-chairing preparatory consultations for June 2025 UN Conference
- Pakistan has for decades called for establishment of independent Palestinian state based on pre-1967 borders
ISLAMABAD: Pakistan has expressed hope over the success of a UN conference in New York in June on settling the Israeli-Palestinian conflict and implementing a two-state solution, the foreign office said on Thursday.
Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
“Pakistan reaffirms full support to the upcoming high-level international conference for the peaceful settlement of the Question of Palestine and the implementation of a two-state solution,” Foreign Office Spokesperson Shafqat Ali Khan said at a weekly media briefing.
“We commend France and the Kingdom of Saudi Arabia for co-chairing the preparatory consultations for the June 2025 Conference.”
Khan said Pakistan hoped the June Conference would restore hope in peace and justice through meaningful action.
“We believe that in the lead-up to the Conference: The ceasefire must be fully implemented; the blockade on Gaza must be lifted; humanitarian access must be guaranteed; civilians and humanitarian personnel must be protected. Any attempt to forcibly displace Palestinians or annex their land must be unequivocally rejected and effectively prevented.”
The statement came as French President Emmanuel Macron said on Wednesday France could recognize a Palestinian state at the upcoming UN conference, adding that in turn some countries in the Middle East could recognize the state of Israel.
The Palestinian Authority welcomed Macron’s statement as “a step in the right direction.”
Although nearly 150 countries have recognized Palestine statehood, most major Western powers including the United States, Britain, France, Germany and Japan, have not.
Muslim countries that do not recognize Israel include Saudi Arabia, Iran, Iraq, Syria and Yemen.
Campaign on women’s inheritance wins Pakistani microfinance bank silver at Dubai awards
- Campaign puts spotlight on systemic denial of inheritance share for women in Pakistan
- Dubai Lynx Awards is MENA’s premier platform for celebrating communications, marketing
KARACHI: Pakistan’s leading digital microfinance institution, Mobilink Bank, has won silver for its ‘Invisible Heirs’ campaign at the prestigious Dubai Lynx Awards 2025, the MENA region’s biggest creative and marketing event, the financial institute said on Thursday.
Mobilink Bank’s campaign excelled in the ‘Creative Strategy Corporate Purpose & Social Responsibility’ category for “elevating consciousness against the systemic denial of inheritance share for most women in Pakistan.”
The campaign tackles gender-based financial inequality to foster financial autonomy for women.
The campaign featured a video narrative highlighting women’s emotional and societal challenges in securing their inheritance, which sparked a nationwide conversation and inspiring action.
The bank also innovatively integrated an ‘Inheritance Calculator’ in its mobile app to allow women to easily calculate their rightful share in inheritance.
“Being recognized at the biggest marketing event in the MENA region refuels our passion to work more vigorously toward women’s long-term financial liberation,” Haaris Mahmood Chaudhary, president and CEO of Mobilink Bank, said.
“Mobilink Bank empowers women to overcome deeply rooted social challenges through future-ready digital innovation and strong social advocacy. We believe the campaign’s recognition will translate into solid gains toward the social cause closest to our hearts.”
The Dubai Lynx Awards are the Middle East and North Africa region’s premier platform for celebrating excellence in creative communications, marketing and advertising.
Held annually in Dubai, the event brings together top agencies, brands, and creative minds from across the region to showcase ideas that drive business results and positive change.
Pakistan unveils first-ever policy to regulate digital assets in line with FATF guidelines
- New policy will set rules for the operation of digital currencies and related companies in Pakistan
- Pakistan Crypto Council was established in March to create legal framework for digital currencies
ISLAMABAD: Pakistan has introduced its first-ever policy framework to regulate virtual assets and service providers, aligning with compliance and financial integrity guidelines of the global Financial Action Task Force (FATF), the country’s top investigation agency said on Thursday.
The new policy, created by a special government group under the Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) authority, is meant to set rules for how digital money like cryptocurrencies and the companies that deal in it should operate in Pakistan.
The move follows the establishment of the Pakistan Crypto Council last month to create a legal framework to create a legal framework for cryptocurrency trading in a bid to lure international investment.
Cryptocurrencies including bitcoin are not officially regulated in Pakistan but are also not illegal or banned. As of Jan. 16, 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.
“Pakistan has formulated its first-ever comprehensive policy framework for the regulation of Virtual Assets and Virtual Asset Service Providers,” the Federal Investigation Agency (FIA) said in a statement.
The policy will be scrutinized by stakeholders and legislative proceedings before being implemented in phases from next year.
The policy aims to curb money laundering, terrorism financing, financial instability and the potentials of blockchain-based finance and also provide space for innovation and develop institutional expertise.
“This is a paradigm shift in how Pakistan views digital finance,” FIA Director Sumera Azam was quoted in the statement as saying. “The policy proposal seeks to strike a historic balance between technological advancement and national security imperatives.”
She added that the framework aligned with FATF Recommendation 15 on compliance and financial integrity.
FATF Recommendation 15, titled “New Technologies,” ensures that AML and CFT frameworks are adaptable to emerging financial technologies, including virtual assets and virtual asset service providers.
