KARACHI: Pakistan is in talks with Saudi Arabia, the United Arab Emirates and China to extend the tenure of their $7.7 billion short term deposits, a move that will ensure long term forex stability of the South Asian nation, Dr. Abdul Hafeez Shaikh, the prime minister’s adviser on finance and revenue, told Arab News in an exclusive interview.
“Last year, when Pakistan was going through the worst balance of payment (BoP) crisis in our history, we were provided financial support by our brotherly countries,” Shaikh said on Monday.
Pakistan’s friendly countries were approached by the government of Prime Minister Imran Khan soon after assuming the office in 2018 as the country’s current account deficit reached $20 billion.
Responding to Pakistan’s call, Saudi Arabia deposited $3 billion while the UAE and China deposited $2 billion and $2.2 billion, respectively. Qatar also contributed by depositing $0.5 billion with Pakistan’s central bank.
“The $7.7 billion secured from the bilateral arrangements provided the much needed balance of payment support to Pakistan,” he added.
“These are short term deposits placed with the central bank in Pakistan at concessional rates,” the PM’s adviser said, adding: “We are in talks with our development partners to move these deposits toward longer tenors.”
Economists say these deposits provided a lifeline to the country’s economy that had higher imports and lower exports.
“The balance of payment support oxygenated the country’s economy that was much need for its survival. The support helped Pakistan not to default on its foreign payment obligations,” Muzzamil Aslam, senior economist, who is familiar with the developments, told Arab News.
Pakistan’s current account deficit (CAD) was $20 billion in 2018 which declined to $13.43 billion during the last fiscal year. Its further decline is also projected for the current fiscal year (2019-20).
“CAD is projected to decline to $4b [or 1.7 percent of the GDP] in the current fiscal year, compared to $20b when the government took office in 2018,” Shaikh said.
The major balance of payment support came from Saudi Arabia which provided $6 billion in financial assistance to Pakistan, with $3 billion in foreign currency support and $3 billion worth of oil on deferred payments. The agreement was signed during the visit of Prime Minister Imran Khan to the Kingdom in October 2018.
Economists say when Pakistan approached the International Monetary Fund (IMF) for the bailout program, the United States had expressed concerns that the money could be used to pay off debts, especially those taken from China.
“After we started getting the IMF assistance, the fund imposed a condition during the first review of the program to roll over these loans instead of paying them back. This was because the US had misgivings that Pakistan will pay the Chinese debt with the IMF money,” Aslam said.
However, the IMF acknowledged in April that “Bilateral creditors have maintained their exposure in line with debt sustainability objectives of the EFF [Extended Fund Facility].”
China maintained their exposure by renewing $2 billion bilateral deposits in March. Saudi Arabia also refinanced $3 billion BoP support loans that matured in November-January, while the UAE rolled over $1 billion BoP support loans in March. The oil facility with Saudi Arabia – worth $3.2 billion – was activated in August 2019 and has also been providing support to the balance of payments, according to the IMF documents.
Instead of frequent rollovers now, the government wants to convert these short term deposits into long tenors. “The IMF is behind this strategy,” Aslam informed. “The conversion will impact the status of these deposits in a way that loan rates will be decided in line with the international benchmark which may be LIBOR+2-3 percent.”
Economists say the conversion of these deposits will positively impact the economy of the country since Pakistan will get some breathing space and an opportunity to improve its overall financial condition. “It will provide long term forex stability. Otherwise, we will be under pressure to pay back $7.7 billion,” Aslam said.
Pakistan seeks Arab creditors, China to convert $7.7 bn into long term loans — Hafeez Shaikh
https://arab.news/ze345
Pakistan seeks Arab creditors, China to convert $7.7 bn into long term loans — Hafeez Shaikh
- Pakistan received $3 billion BoP support from Saudi Arabia, $2 billion from the UAE and $2.2 from China
- Conversion of short term deposit will provide long term financial stability to the country, say experts
Pakistan grouped with Saudi Arabia, Iraq in AFC Futsal Asian Cup 2026 qualifiers
- Thirty-one international teams to partake in qualifiers from Sept. 20-24
- AFC Futsal Asian Cup Indonesia 2026 will be contested in Jan. 27-Feb. 7
ISLAMABAD: Pakistan’s football team has been selected in Group D along with Saudi Arabia, Iraq and Chinese Taipei for the qualifiers of the upcoming AFC Futsal Asian Cup Indonesia 2026, the Pakistan Football Federation (PFF) confirmed on Thursday.
Thirty-one teams have confirmed their participation for the 11th qualifiers, which will take place between September 20 to 24. The draw has divided the teams into eight groups— seven groups of four and one group of three— with each to be played in a centralized league format.
“Our journey to the AFC Futsal Asian Cup Indonesia 2026 begins in Group D, sharing the pitch with hosts Saudi Arabia,” the PFF wrote on social media platform X.
“An exciting draw that sets the stage for some incredible matches. Time to prepare!“
India are in Group A with Kuwait, Australia and Mongolia while top seeds Thailand will have to contend with Korea Republic, Bahrain and Brunei Darussalam in Group B.
Four-time winners Japan are the top seeds in Group C with hosts Tajikistan, Macau and Cambodia their challengers. Group E will see Vietnam, Lebanon, hosts China and Hong Kong face each other while Group F includes Uzbekistan, Kyrgyz Republic (hosts), Timor-Leste and Palestine.
Iran, Malaysia, United Arab Emirates and Bangladesh are part of Group G while Afghanistan, Myanmar and Maldives are part of Group H.
The AFC Futsal Asian Cup Indonesia 2026 will be contested from January 27-February 7.
Pakistan says Roosevelt Hotel’s base valuation complete, will decide on transaction structure this month
- Hotel could fetch 4–5 times more under joint venture than in outright sale, privatization chief says
- Government hopes to finalize deal structure this June, has hired US consulting firm Jones Lang LaSalle
ISLAMABAD: Pakistan has completed the baseline valuation of the Roosevelt Hotel in New York and is preparing to move forward with a transaction structure this month to privatize the state-owned property, the head of the Privatization Commission told Arab News this week.
The Roosevelt, a 1,015-room historic hotel in Midtown Manhattan, has long been one of Pakistan’s most prominent but politically sensitive overseas assets. Acquired by Pakistan International Airlines Investment Limited (PIAIL) in 1979, the hotel occupies a full city block on Madison Avenue and 45th Street. Over the past two decades, successive Pakistani governments have floated plans to sell, lease, or redevelop the property, but no proposal has advanced beyond early-stage planning.
Operations at the Roosevelt were suspended in 2020 following steep financial losses during the COVID-19 pandemic. In 2023, Pakistan entered a short-term lease with the City of New York to use the property as a temporary shelter for asylum seekers, generating more than $220 million in projected rental income. That agreement ended in 2024 and no new revenue stream has since been announced.
“We have an idea of the asset valuation in Roosevelt,” Muhammad Ali, chairman of Pakistan’s Privatization Commission, said in an interview when asked about the timeline to privatize the hotel.
“We have appointed JLL [Jones Lang LaSalle], who are one of the top consultants in the US market. They have done their homework. They have done the market sounding also. We just need to get approval from the Cabinet Committee [on Privatization] on the structure, and we’ll move ahead.”
He added:
“So this year, before June, I’m hoping that on the Roosevelt, we will have gone ahead with execution of the transaction as far as whatever structure is decided.”
VALUATION AND TRANSACTION STRUCTURE
The Roosevelt, whose liabilities and losses the privatization chief did not disclose, is one of several state assets the government hopes will contribute to its target of raising Rs86 billion ($306 million) in privatization proceeds during the fiscal year starting July 1, alongside the sale of national carrier Pakistan International Airlines and three electricity distribution companies.
But how much money the hotel ultimately brings in, and its overall valuation, depended on the type of transaction structure adopted, Ali said.
If the government opted for a straightforward “as-is” sale and sold the property without securing any new permissions or approvals for zoning or development, the hotel would fetch the lowest price.
However, if the government first obtained the necessary permits and approvals that a buyer would typically need for redevelopment, the property’s value could double compared to the “as-is” sale.
Alternatively, if the government formed a joint venture with a private investor, sharing both the risks and future profits, the hotel could be worth four to five times more than its as-is valuation.
“So, depending on what sort of structure you have, how much risk you take, how much effort the government puts in, we can make a lot of money from this asset,” the privatization chief said.
“If we go with a joint venture structure, then this year we will only get the first advance payment, so that’s a small amount of money which will be coming in [FY26].”
India rejects signing Shanghai Cooperation Organization statement seen as pro-Pakistan
- Indian Defense says statement diluted India’s position on critical issues such as terrorism, regional security
- Singh, without explicitly naming Pakistan, urged the SCO to criticize countries that use “cross-border terrorism“
NEW DELHI, India: Beijing’s bid for enhanced regional leadership suffered a setback Thursday when India rejected signing a joint statement put before members of the China-backed Shanghai Cooperation Organization, saying it was pro-Pakistan in not mentioning April’s terror attack on Indian tourists.
Indian Defense Minister Rajnath Singh said the statement diluted India’s position on critical issues such as terrorism and regional security, a person familiar with the matter told The Associated Press on condition of anonymity because he wasn’t authorized to speak to the media.
India blames Pakistan for backing the gunmen behind the April 22 killing of 26 people, most of them Indian Hindu tourists, in India-controlled Kashmir, and has described it as a terror attack. Islamabad denies the charge.
Singh alleged that the joint statement “suited Pakistan’s narrative” because it did not include that attack but mentioned militant activities in Balochistan, the person said. Pakistan has repeatedly accused India of backing Balochistan freedom movement, allegations that India denies.
The signing ceremony came during a meeting of defense ministers of the Shanghai Cooperation Organization, a regional grouping formed by China and Russia to counter US influence in Asia.
China has largely taken over running the SCO, staging joint drills and holding summits, while Russia is embroiled in its full-scale invasion of Ukraine and international isolation.
While little known globally, the SCO has become one of China’s main instruments to expand its political and economic reach into areas traditionally neutral, such as India, or closely linked to Russia such as Central Asia.
Thursday’s meeting took place in the east China city of Qingdao, home to China’s northern fleet.
Singh, without explicitly naming Pakistan, urged the SCO to criticize countries that use “cross-border terrorism as an instrument of policy and provide shelter to terrorists.” He said members should unite in eliminating terrorism and ensure accountability for those who aid such activities.
“Peace and prosperity cannot co-exist with terrorism and proliferation of weapons of mass destruction in the hands of non-state actors and terror groups. Dealing with these challenges requires decisive action,” said Singh, according to a defense ministry statement.
The April 22 killings embroiled the two nuclear-armed nations in the most serious military confrontation in decades. After days of exchanging fire, they agreed to end all military actions under a US-brokered ceasefire.
On Wednesday, Chinese Defense Minister Dong Jun held one-on-one meetings with his counterparts from Belarus, Iran, Pakistan, Kyrgyzstan and Russia. India, Kazakhstan, Tajikistan and Uzbekistan are also members.
“Unilateralism and protectionism are surging, while hegemonic, high-handed, and bullying acts severely undermine the international order, making these practices the biggest sources of chaos and harm,” Dong said according to the official Xinhua News Agency, in a swipe at the US and its allies.
China and India have decades-old border disputes and Beijing has become one of Pakistan’s closest allies.
Four dead, 19 injured as monsoon rains trigger building collapses, drownings in Punjab
- The provincial disaster agency has urged citizens to take precautionary measures as rains continue
- Authorities in Khyber Pakhtunkhwa have also warned of torrential rains, hailstorms in several districts
ISLAMABAD: At least four people were killed and 19 injured in rain-related incidents across Pakistan’s eastern Punjab province over the past 24 hours, the provincial disaster management authority said on Thursday, as monsoon downpours triggered building collapses and drownings in several districts.
The statement came as authorities in both Punjab and Khyber Pakhtunkhwa warned of continued rainfall through July 1, with Pakistan’s National Disaster Management Authority (NDMA) issuing a glacial lake outburst flood (GLOF) alert for the country’s northern regions a day earlier.
“Two people died when weak, dilapidated structures collapsed in Okara and Bahawalnagar,” the Punjab PDMA said in a statement. “Two others drowned in separate incidents in Jhelum.”
Thirteen houses were also damaged in the province, mostly in rural or structurally vulnerable areas, the statement added.
Punjab’s disaster agency urged citizens to take precautionary measures and said financial compensation for the victims’ families would be provided under government policy.
Separately, the PDMA in Khyber Pakhtunkhwa warned of torrential rains and hailstorms in several districts from Thursday evening through July 1, with a risk of glacier bursts in the north.
It issued alerts to local administrations in Chitral, Swat, Upper and Lower Dir and Kohistan to initiate preemptive measures and inform nearby communities.
Pakistan is among the countries most vulnerable to climate change, with a history of extreme weather events linked to erratic monsoon patterns, glacial melt and heatwaves.
In 2022, record floods killed over 1,700 people and caused more than $30 billion in damages.
On Wednesday, the NDMA said continued high temperatures and intense monsoon activity were putting stress on glacial lakes in Pakistan’s mountainous north, raising the risk of flash floods.
Valleys in Chitral and Ghizer are among the most vulnerable, with warnings issued to avoid travel near glaciers and riverbanks.
Iran expressed rare gratitude to Pakistan amid recent Israel war — PM Sharif
- Shehbaz Sharif acknowledges Crown Prince Mohammed bin Salman's ‘significant role’ in defusing tensions
- He also highlights Field Marshal Asim Munir’s lengthy meetings with the top American and Iranian officials
ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday expressed satisfaction over the ceasefire that brought an end to the recent Israel-Iran conflict, saying Tehran had thanked Pakistan’s political and military leadership for playing a constructive role during the war after Field Marshal Asim Munir’s meetings with both American and Iranian officials.
The 12-day war began after Israel carried out airstrikes on Iranian nuclear facilities, killing several senior military commanders and scientists, while officials in Tehran were engaged in nuclear negotiations with the United States.
Shortly before the ceasefire was announced, US forces struck three Iranian nuclear sites and claimed to have set back Iran’s nuclear program by years.
“For the first time in history — and I am not just talking about the war itself, but on several fronts — Iran openly thanked Pakistan’s political and military leadership in a way that, in my view, has no precedent in recent times,” Sharif told the federal cabinet.
“Our Field Marshal had a luncheon meeting in Washington with President [Donald] Trump,” he continued. “Then in Istanbul, the army chief had a one-and-a-half-hour meeting with [Iranian Foreign Minister] Abbas Araghchi.
During that meeting, he specified Pakistan’s efforts. In response, he [Araghchi] said … ‘We [Iranians] were not the ones who attacked… If Israel stops, then we are ready for dialogue.’”
The prime minister said Pakistan also condemned the missile attacks on US bases in Qatar and had conveyed its position clearly to all sides.
He described Iran’s posture during the war as one of “dignity and restraint,” praising the Iranian people for refusing to capitulate under pressure.
Sharif said Saudi Crown Prince Mohammed bin Salman also played a significant role in defusing tensions.
“I had a phone conversation with the Crown Prince,” he said. “We spoke in great detail. And I say this to you with full sincerity: he played a significant role in helping to stop this war.”
“As soon as Israel launched its attack, Saudi Arabia issued a strong statement of condemnation,” he added. “After that, the Crown Prince personally spoke to the President of Iran [Masoud Pezeshkian].”
As the ceasefire continues to hold between the two Middle Eastern rivals, President Trump has said American and Iranian officials could engage in talks next week, though Tehran has not confirmed any such plans.
Trump, speaking at a NATO summit, said he was not keen to resume formal negotiations but declared the war was over and insisted Iran would not be allowed to acquire a nuclear weapon.
Iran’s parliament, meanwhile, voted to fast-track legislation suspending cooperation with the International Atomic Energy Agency, following US strikes on its nuclear facilities.
With input from AP
