‘Really good news’: Pakistani engineering sector applauds FTA with GCC

In this picture, taken on October 10, 2023, workers operate machines manufacturing auto parts at the Aftab Engineering Services factory in Karachi. (AN Photo)
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Updated 12 October 2023
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‘Really good news’: Pakistani engineering sector applauds FTA with GCC

  • Stakeholders say Pakistan’s automotive industry will be able to tap into Mideast market under FTA
  • Pakistani auto part manufacturers say sales volumes have dropped by over half, with less than 30% production

KARACHI: Amid sluggish domestic demand, major stakeholders in Pakistan’s engineering sector are optimistic about new business opportunities in the Middle East following the signing of a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC).

Pakistan inked a preliminary agreement with the GCC last month to bolster trade relations with the regional bloc, which has not formalized such an agreement with any country since 2009. The FTA will now go through the GCC’s internal administrative and approval processes before taking effect.

Insiders in the Pakistani engineering sector have called the signing of the preliminary agreement a positive development that will enable industrial players to explore new opportunities and solidify their Middle Eastern presence.

“This is really good news for us that the GCC countries and Pakistan have signed the [preliminary] FTA now,” Syed Muhammad Masood, CEO of Aftab Engineering Services (AES), owned by the United Arab Emirates-based Central Ventilation Systems (CVS), told Arab News in an interview this week.




In this picture, taken on October 10, 2023, Syed Muhammad Masood, CEO of Aftab Engineering Services, an auto parts manufacturing factory, speaks during an interview with Arab News in Karachi. (AN Photo)

Masood argued that Pakistan’s automotive industry would be able to better tap into the Middle Eastern market under the new FTA.

“You name any automotive brand and you will find it in the GCC,” he added. “We can explore the opportunities for the automotive parts, we can explore the opportunities for the HVAC [Heating, ventilation, and air conditioning] industry, we can explore the opportunities for the air conditioning industry. There are so many opportunities available.”

The AES official expressed confidence that the FTA would remove bilateral trade barriers between Pakistan and the GCC.




In this picture, taken on October 10, 2023, a worker operates a machine manufacturing auto parts at the Aftab Engineering Services factory in Karachi. (AN Photo)

Last month, his company exported six hydraulic sharing and punching machines for the HVAC industry for the first time after experiencing a downturn in domestic automotive demand.

“Considering the downfall in the automotive sector, we luckily managed to get orders for the customized hydraulic and punching machines from the UAE and we have successfully completed those machines and exported them,” Masood said, pointing out that his organization was expecting more orders from the Gulf region after the FTA was implemented.

Pakistan’s automobile industry contributes 2.8 percent to its GDP and Rs30 billion to the national exchequer in terms of annual taxes and duties, according to the country’s board of investment (BoI).

However, sectoral demand has shrunk due to various reasons, including rising dollar-rupee disparity and high costs of doing business leading to increasing automobile prices in Pakistan.




In this picture, taken on October 10, 2023, workers operate machine manufacturing auto parts at the Aftab Engineering Services factory in Karachi. (AN Photo)

“We have witnessed the downfall of the auto industry in Pakistan during the last two to three years and that is what prompted us to explore new avenues in the UAE market due to the presence of our owners [in that country],” Masood said, adding that his company’s production facility was only operating at up to 30 percent capacity.

Representatives from other Pakistani auto parts manufacturing firms also reported a 55 percent decline in annual sales amid rapid inflation and sluggish market conditions that have reduced production to less than 30 percent.

“We manufacture 459 dies and 155 parts for the auto industry and for that we have invested billions of rupees from 2019 to 2023, but due to the current industry issues our production has shrunk to less than 30 percent from 140 percent,” Mohsin Siddiqui, General Manager Plant at Agriauto, said in a statement issued last week.




In this picture, taken on October 10, 2023, a worker operates a machine manufacturing auto parts at the Aftab Engineering Services factory in Karachi. (AN Photo)

Pakistan’s exports of engineering goods, including auto parts, have declined by over 13 percent to $38.3 million during the current fiscal year between July and August.

However, the export of electric and specialized machinery for particular industries has seen a growth of 52 and 6 percent, respectively, according to the Pakistan Bureau of Statistics (PBS).


PM Sharif hopes Tehran punishes culprits who killed 8 Pakistanis in Iran

Updated 15 April 2025
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PM Sharif hopes Tehran punishes culprits who killed 8 Pakistanis in Iran

  • Eight Pakistani nationals were killed in Iran’s Sistan-Baluchestan province on Saturday in attack claimed by separatists
  • Pakistan and Iran have both frequently blamed each other for failing to stamp out militancy in their shared, porous border

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday condemned the recent killing of eight Pakistani nationals in Iran, hoping Tehran would arrest the culprits and hand them stern punishments. 

The Pakistani nationals were killed in the Mehrestan County of Iran’s Sistan-Baluchestan province, which borders Pakistan, on Saturday. The attack was claimed by the Balochistan National Army (BNA), one of several separatist outfits operating in Pakistan’s southwestern Balochistan province. 

Militant groups operate in the area that includes Pakistan’s Balochistan and Iran’s southeastern Sistan-Baluchestan province. Both countries trade blame for militancy in the regions that are restive, mineral-rich and largely underdeveloped. 

“The foreign minister [of Pakistan] has spoken to the foreign minister of Iran and I have also issued a statement,” Sharif told members of his cabinet during a meeting. 

“We should hope that the Irani government will immediately arrest and hand stern punishments to the killers,” he added. 

The Pakistani prime minister condemned the attack in strong words. 

As per media reports, the Pakistani nationals who were killed in the attack were auto mechanics. Thousands of Pakistanis, mostly from underprivileged backgrounds, regularly cross into Iran for informal work in industries such as auto repair, agriculture and construction. 

Balochistan has witnessed a low-level insurgency for nearly two decades. Baloch militant groups such as the BNA accuse the central government of exploiting local resources while neglecting the population.

Islamabad denies the allegations and says it is committed to regional development.


Pakistan eyes Chinese investment for desalination plants in Karachi

Updated 15 April 2025
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Pakistan eyes Chinese investment for desalination plants in Karachi

  • Six-member delegation of Chinese construction company meets Pakistan’s maritime affairs minister
  • Chinese company says committed to bringing advanced technologies and investment to Pakistan

ISLAMABAD: A Chinese construction company has expressed interest in installing desalination plants at Pakistan’s Port Qasim to convert seawater into drinking water, the maritime affairs ministry said on Tuesday, amid Islamabad’s efforts to resolve its water crisis. 

Pakistan has the fourth-highest rate of water consumption in the world. The country’s agriculture sector uses the most amount of freshwater than any other sector. Rainfall has steadily declined over the past few decades and experts have been warning for years the country will approach “absolute scarcity” of water by 2025.

The Chinese delegation met Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry in Islamabad to discuss joint investment between the two countries. 

“One of the key topics discussed during the meeting was the installation of desalination plants at Port Qasim,” the ministry said in a statement. 

“The Chinese delegation expressed strong interest in investing in facilities to convert seawater into potable water, an initiative that would address both industrial and domestic water needs.”

Chaudhry highlighted that the desalination plants would supply drinking water and support small industrial operations around the port.

He added that these proposals were a step toward resolving regional water issues that aligned with Pakistan’s climate resilience and environmental sustainability objectives.

“Pakistan’s maritime sector offers promising opportunities for foreign investment, particularly in areas such as port development, logistics, maritime tourism and blue economy ventures,” the ministry quoted Chaudhry as saying.

He encouraged the delegation to explore investment in maritime tourism, part of Pakistan’s economic diversification plan and also invited them to upcoming forums showcasing the country’s potential as a regional maritime hub.

The ministry added the delegation was ready to carry out feasibility studies and collaborate with local stakeholders to launch the project “promptly and effectively.”

“We see tremendous potential in contributing to Pakistan’s sustainable infrastructure goals,” the ministry quoted Wang Yaodong, the head of the Chinese delegation, as saying. 

“Our company is committed to bringing advanced technologies and investment that can help improve living standards and support economic development.”


Pakistan PM announces special courts, educational quotas for overseas Pakistanis

Updated 41 min 35 sec ago
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Pakistan PM announces special courts, educational quotas for overseas Pakistanis

  • Shehbaz Sharif says special courts will resolve overseas Pakistanis’ cases quickly
  • PM announces 15 percent quota for overseas Pakistanis’ children in medical colleges

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday announced a slew of incentives for overseas Pakistanis, such as special courts to deliver speedy justice and educational quotas for their children in federal universities, as Islamabad attempts to forge stronger ties with the Pakistani diaspora spread around the world. 

The prime minister was addressing the first-ever Overseas Pakistanis Convention held in the capital. The three-day convention, which kicked off on Sunday, aimed to honor overseas Pakistanis and forge closer ties with them by addressing their complaints. 

Remittances sent by overseas Pakistanis are crucial for the South Asian country, as it navigates a tricky path to recovery from a macroeconomic crisis that has drained its revenue. Pakistan received a record-high $4.1 billion in remittances in March 2025. 

“In Islamabad, for overseas Pakistanis and to resolve their cases as soon as possible, special courts have been established,” Sharif told attendees at the conference, triggering loud applause. 

“In Punjab, the process to set up such courts is underway and legislation in this regard has also been done,” he said, urging other provinces to follow suit. 

Sharif said overseas Pakistanis will be provided the additional facility to file their cases electronically so they do not have to travel to Pakistan to do so.

He announced educational quotas for overseas Pakistanis in the country’s federal universities. 

“In all federally chartered universities, for the children of overseas Pakistanis, out of 10,000 seats a quota of 5 percent is being fixed for you,” the premier said. 

Sharif said the government has fixed a 15 percent quota for the admission of overseas Pakistanis in the country’s medical colleges, adding that it would enable 3,000 children of overseas Pakistanis to avail the facility. 

He said the country’s premier revenue collecting agency, the Federal Board of Revenue (FBR) will treat overseas Pakistanis as filers in business and bank matters. 

The Pakistani prime minister announced a five-year age relaxation in government jobs for overseas Pakistanis and a seven-year age relaxation for women overseas Pakistanis. 

Sharif said the government would award 15 civil awards to overseas Pakistanis every year who send the most amount of foreign exchange to Pakistan. 

‘BRAIN GAIN’

Speaking on the occasion, Pakistan’s Army Chief General Syed Asim Munir praised overseas Pakistanis for their dedication and commitment toward the nation. 

“Those who promote the narrative of brain drain should know that this is not a brain drain but a brain gain,” he said. “And overseas Pakistanis are the finest example of that.”

Munir spoke about Israel’s military campaign in Gaza, expressing solidarity with Palestinians under bombardment in the territory. 

“The hearts of Pakistanis beat in unison with the Muslims of Gaza,” he said.


Pakistan’s Punjab finalizes bill to regulate sale of acid to protect women

Updated 15 April 2025
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Pakistan’s Punjab finalizes bill to regulate sale of acid to protect women

  • Acid attacks, which disfigure and often blind women victims, have long been used to settle personal or family scores in Pakistan
  • New law bars people from engaging in business of acid without license, prohibits sale of acid to people below 18 years of age

ISLAMABAD: The government in Pakistan’s most populous Punjab province recently finalized a bill to control the sale and distribution of acid to ensure protection for women, following numerous acid attacks targeting women over the years. 

Acid attacks, which disfigure and often blind their overwhelmingly female victims, have long been used to settle personal or family scores in Pakistan, with hundreds of cases reported each year. These attacks are often driven by motives such as rejected marriage proposals, domestic disputes or family feuds. 

Between 2007 and 2016, Pakistan recorded 1,108 acid attacks affecting 1,375 individuals. The issue peaked in the early 2000s, with a surge in reported cases between 1999 and 2005 — 494 attacks were reported in 2002 and 417 in 2003.

The proposed legislation titled “The Punjab Acid Control Act 2025” aims to prevent such attacks, ensure accountability and create a safer environment for women across the province by tightening control over the sale and purchase of the product.

“It is necessary to regulate and control the business of acid in Punjab by providing a comprehensive mechanism and for the matters ancillary thereto and connected therewith,” a copy of the bill seen by Arab News on Tuesday said. 

The bill has been prepared by Punjab Women Protection Authority chairperson and lawmaker Hina Parvez Butt. 

The draft legislation prohibits people from engaging in the sale and purchase of acid without a license. It also bars the sale of acid to anyone under 18 years of age and mentions 30 different types of acid. 

According to the draft law, anyone already involved in the acid business before the new law comes into effect must apply for a license within 30 days of when the law is implemented. They need to submit an application with a specific form and pay a fee set by the authorities. 

The license will also state the maximum amount of acid the license holder is allowed to keep at any given time.

Any importer or acid manufacturer already licensed under the current laws will need to register under the new law and maintain a record of their acid-related business, which must be submitted to the licensing authority within one month after the end of each year.

The law mandates that an acid container must clearly display visible information printed on it which includes the name and type of acid, the name, address and license number of the seller, the volume and quantity of acid, manufacturing and expiry dates, and a warning label with the words “DANGEROUS/CORROSIVE” in red along with other safety precautions.

The punishment for violating the provisions of the law includes imprisonment of up to three years and a fine of up to $1,780 (Rs500,000), with an additional three-month prison time if the fine is not paid.

The bill highlighted that offenses committed under this law are cognizable, non-bailable, non-compoundable and will be tried in court.

The draft law states that a person will face imprisonment for two to five years, along with a fine ranging from $712 to $3,560 (Rs200,000 to Rs1 million) if the acid business causes harm to any person or property.

There has been a significant decline in acid attacks in Pakistan since a legislation criminalizing acid and burn violence was passed in December 2011, according to a 2017 report by the Acid Survivors Foundation.

However, recent years have seen a marked decrease: in 2014, 153 acid attacks were reported with 210 victims, followed by 69 in 2015 and 73 in 2016. The downward trend continued in 2017, with only 39 incidents reported.


Pakistan confirms four nationals killed in latest Libya boat tragedy

Updated 15 April 2025
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Pakistan confirms four nationals killed in latest Libya boat tragedy

  • Vessel carrying foreign nationals sunk near Harawa coast in Libya’s Sirte City, says foreign office
  • Each year, thousands of Pakistanis pay large sums for illegal journeys to developed countries

ISLAMABAD: The foreign office spokesperson on Tuesday confirmed four Pakistanis have been killed in a shipwreck near the coast of eastern Libya, adding that more information is being collected about the affected nationals. 

Pakistan’s mission in Tripoli reported that a vessel carrying foreign nationals sunk near the Harawa coast in Sirte City, the foreign office spokesperson said.

The statement said a Pakistan embassy team’s visit to Sirte City confirmed 11 bodies of migrants have been recovered from the shipwreck. 

“Of these, 4 have been identified as Pakistani nationals based on their national documents,” the spokesperson said. “Two bodies remain unidentified.”

The statement identified Zahid Mehmood, Sameer Ali, Syed Ali Hussain and Asad Ali as the four victims of the shipwreck. Three of the victims hailed from Pakistan’s eastern city of Mandi Bahauddin while Mehmood belonged to Gujranwala, as per details shared by the Ministry of Foreign Affairs. 

“The Embassy in Tripoli is actively working to gather more information about the affected Pakistani nationals and is in contact with the local authorities,” the spokesperson said. 

The statement said Pakistan’s foreign affairs ministry has activated its Crisis Management Unit to monitor the situation. 

Each year, thousands of Pakistanis pay large sums for risky and illegal journeys to developed countries, hoping to find work and send money back to their families. 

Libyan authorities recovered the bodies of at least 16 Pakistani nationals who had died in a shipwreck near the coast of Libya in February this year, while nearly 10 other Pakistani citizens were missing.

The boat had capsized near the port of Marsa Dela in the northwest of Zawiya city in the Arab country. 

In 2023, hundreds of migrants, including 262 Pakistanis, drowned when an overcrowded vessel capsized and sank in international waters off the southwestern Greek coastal town of Pylos. It was one of the deadliest boat disasters ever recorded in the Mediterranean Sea.

Pakistan has cracked down and arrested several human traffickers for arranging these dangerous, illegal sea journeys for Pakistani citizens.