KARACHI: Pakistan and China are in the process of finalizing the details of a $6 billion bailout package which Islamabad is seeking to stabilize its external balance of payment situation, officials said on Saturday.
During Prime Minister Imran Khan’s recent visit to China, Beijing had assured Pakistan of its support to uplift the country’s economy and “firmly move forward” on various infrastructure projects.
A Pakistani delegation — comprising the State Bank of Pakistan’s (SBP) governor and secretaries of finance, trade and planning — is in Beijing to finalize the details of the program, which is aimed at enhancing exports, too.
“The details of the outcome will be shared once the delegation returns home,” Noor Ahmed, spokesman for Pakistan’s Minister of Finance, told Arab News on Saturday without divulging any other details.
However, Dr. Farrukh Saleem, spokesman on Economy and Energy, said that China in principle has approved the aid package for Pakistan. “Now three things are under discussion. First, the framework of this aid package; so, the magnitude of the aid package and thirdly the sources of the aid package,” Dr. Saleem told Arab News on Saturday.
“China does not want publicity of its activities as it is against its nature of working,” he said, adding that during the past three fiscal years, “China has provided around $6.5 billion” through the Bank of China to the SBP, but “only few people know about it”.
Meanwhile, it is pertinent to note that during PM Khan’s visit, the Chinese authorities offered $1 billion market access to double Islamabad’s exports to $2.75 billion.
“Pakistan is looking at ways to increase exports to China in order to avail market access,” Abdul Razak Dawood, Adviser for Commerce, Textile, Industry & Production, had told Arab News in a recent interview.
Earlier, this week, Pakistan’s Finance Minister, Asad Umar announced that Pakistan has emerged out of its balance-of-payments crisis, after securing $6 billion from Saudi Arabia and an equal amount from China, adding that Islamabad needed $12 billion to fill its external financing gap.
Pakistan is simultaneously negotiating with China and the International Monetary Fund (IMF) for a bailout program. “Pakistan will receive some $5-6 billion from the IMF,” Umar was quoted as saying by the local media.
Meanwhile, overseas workers’ remittances — another integral source of support for the country’s economy — showed encouraging growth as Pakistan received $7.4 billion in the first four months of the fiscal year 2018, compared to $6.4 billion received during the same period last year (2018).
“The prospects to get Chinese support are high and it will substantially ease the pressure on the balance of payment situation,” Dr. Ikram Ul Haq, an expert on economic and legal matters, told Arab News, adding that the move would “bring in no positive results as the entire amount is going to bridge the gap and in essence would be a fresh liability replacing the old one”.
Muzzamil Aslam, a senior economist and CEO of EFG-Hermes Pakistan, believes that China and the IMF are two opposing sources which Pakistan is dealing with at the moment. “If we seek Chinese support they will demand to not share the details of the CPEC with the IMF and if we rely heavily on the IMF, they will ask for sharing information of China,” Aslam said.
He added that Pakistan will continue to seek Chinese support “to avoid harsh conditionalities of the IMF and to run the economic affairs of its country as per its own will”.
China, the second biggest global economy, shares minimal trade ties with Pakistan at 0.8 percent, with 0.1 percent dedicated to exports and imports respectively.
The existing Sino-Pak trade ties are largely tilted toward Beijing — Pakistan exported $1.75 billion worth of goods to China, while Beijing’s exports stood at $11.47 during the fiscal year 2018, according to the SBP.
China, Pakistan etch out details for $6bn bailout plan
China, Pakistan etch out details for $6bn bailout plan
- Islamabad says Beijing has approved aid package in principle
- Crucial details of program still under discussion, top official says
23,620 Pakistani pilgrims to perform Hajj under private scheme this year — ministry
- Pakistan was given a quota of 179,210 for the pilgrimage this year
- Nearly 90,000 Pakistanis to perform Hajj 2025 under government scheme
ISLAMABAD: The ministry of religious affairs said on Tuesday only 23,620 Pakistani pilgrims would be performing Hajj under the private scheme this year.
The annual Islamic pilgrimage is expected to take place this year in June. Pakistan and Saudi Arabia signed the Hajj Agreement 2025 in January, under which Pakistan was given a quota of 179,210 for the pilgrimage this year. The quota is divided equally between government and private schemes.
Nearly 90,000 Pakistanis are expected to travel to Saudi Arabia under the government scheme this year.
“General public is hereby informed that only 23,620 pilgrims will be able to perform Hajj under the Private Hajj Scheme from Pakistan this year 2025,” the religious affairs ministry said in a statement.
“The list of service providers providing services with the Hajj 2025 quota has been updated on the website of the Ministry of Religious Affairs and Interfaith Harmony and the Pak Hajj App.”
The ministry urged pilgrims who had made bookings with registered service providers to check the status of their application and contract on the ministry’s website.
“All organizing/service provider companies are directed to provide updated contract (Hajj Form) to Hajj pilgrims as per the approved quota of Hajj 2025 and ensure the process of issuing Hajj visas to pilgrims by April 18 as per the instructions of the Ministry of Hajj and Umrah, Kingdom of Saudi Arabia,” the ministry added.
Hajj flight operations will begin from Apr. 29 when the first flight will depart from Pakistan’s eastern city of Lahore.
Prime Minister Shehbaz Sharif has constituted a three-member inquiry committee to probe why Pakistan had failed to use the whole 179,210 quota for Hajj 2025.
Soldier, four militants killed in armed operation in northwest Pakistan
- Military has launched frequent operations in Khyber Pakhtunkhwa province bordering Afghanistan in recent years
- Pakistan says militants launch attacks using safe havens in Afghanistan, a charge Kabul denies
ISLAMABAD: A sepoy was killed in an intelligence-based operation in the northwest of Pakistan, the military said on Thursday, as it battles a spike in militant attacks.
In recent months, the military has launched frequent operations in the restive Khyber Pakhtunkhwa province bordering Afghanistan. The army’s target in the area are militants it says launch attacks inside Pakistan and against the army using safe havens in Afghanistan. The Taliban government in Kabul says it does not allow its territory to be used by insurgents against other countries.
Groups like the Pakistani Taliban, commonly known as Tehreek-e-Taliban Pakistan (TTP), have been waging a war against the Pakistani state for nearly two decades in a bid to overthrow the government and replace it with what they consider an Islamic system of governance.
In the latest operation, the army’s media wing said security forces had conducted an intelligence-based operation in general area Maddi in the Dera Ismail Khan district on Apr. 16, killing four militants.
“However, during intense fire exchange, one brave son of soil, Sepoy Basit Siddique (age: 23 years, resident of District Attock), having fought gallantly, paid the ultimate sacrifice and embraced shahadat [martyrdom],” the army’s statement said.
Militants have intensified their attacks since revoking a ceasefire with the government in late 2022, with recent months witnessing significant strikes targeting the military and its bases.
Pakistan to seek bids to sell national airline next week
- Privatization board approves pre-qualification criteria for selection of prospective bidders
- New expressions of interest in buying between 51-100 percent of airline would be sought next week
ISLAMABAD: The Pakistani government will seek expressions of interest next week for the sale of Pakistan International Airlines, the privatization ministry said on Thursday, days after it reported its first annual profit in over two decades.
Pakistan has been seeking to sell a 51-100 percent stake in the debt-ridden carrier, to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund program.
Its failed attempt to privatise Pakistan International Airlines last year received a single offer, well below the asking price of more than $300 million.
The privatization commission board has approved seeking new bids, the ministry said in a statement.
“The board approved the pre-qualification criteria for selection of prospective bidders,” it said. It added new expressions of interest in buying between 51 and 100 percent of the airline would be sought next week.
Pakistan has shifted almost all of the national carrier’s legacy debt to government books after issues raised by bidders led to the failure of the last privatization attempt.
Muhammad Ali, government adviser on privatization, said last week all the issues raised at the time of last year’s failed attempt had been dealt with.
Pakistan’s top diplomat meets Bangladesh’s Yunus as first foreign office meetings in 15 years held
- Interactions in Dhaka come amid political shifts in Bangladesh following the ouster of pro-India PM Sheikh Hasina Wajid in student uprising
- While Hasina’s removal from office was followed by cooling of relations between Dhaka and New Delhi, exchanges with Islamabad are growing
ISLAMABAD: Pakistani Foreign Secretary Amna Baloch met Chief Adviser of Bangladesh Muhammad Yunus on Thursday to discuss trade, investment, youth linkages and regional integration, following the first Foreign Office Consultations (FOC) between the two nations in 15 years.
The two countries, which were once one, have shared a tumultuous history, with Bangladesh gaining independence from Pakistan in 1971 after a bloody war of independence.
The latest meetings in Dhaka come amid significant political shifts in Bangladesh following the ouster of Prime Minister Sheikh Hasina Wajid in a popular student uprising last year. Hasina’s government was hostile toward Pakistan but closely allied with India, where she remains exiled. While her removal from office was followed by the cooling of relations between Dhaka and New Delhi, exchanges with Islamabad have started to grow.
“During the Foreign Secretary’s call on the Chief Adviser, Yunus, inter alia, trade and investment opportunities, youth linkages, regional integration, and revival of SAARC [South Asian Association for Regional Cooperation] remained the focus of discussion,” Pakistan’s foreign office said in a statement.
A separate statement from Yunus’ office said he “put the emphasis on strengthening ties with Pakistan to boost mutual cooperation and explore trade and business potentials.”
“There are certain hurdles. We have to find ways to overcome those and move forward,” the chief adviser told Baloch who was in Dhaka for the 6th round of Foreign Secretary Level Consultations (FSLC).
A 7th round will take place in Islamabad in 2026. The consultations are expected to pave the way for a visit by Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar to Bangladesh at the end of the month, the first such visit by a Pakistani foreign minister since 2012.
The chief adviser said that Bangladesh and Pakistan should exchange more youth and cultural programs to increase people-to-people bonding.
“We kept missing each other for a long time as our relationship was frozen. We have to overcome the barriers,” he said.
“WE CAN’T MISS THE BUS EVERY TIME”
The statement from Bangladesh quoted Pakistani Foreign Secretary Baloch as saying ways must be found to “harness the potentials between the two countries.”
“We have huge intra-regional markets on our own rights. We should use it,” Baloch said. ” “We can’t miss the bus every time.”
She said that there was a need for regular B2B (business to business) interactions between the private sectors of the two countries and the exchange of visits at all levels.
“Both sides had a constructive and forward-looking engagement in a cordial environment where entire spectrum of Pakistan -Bangladesh bilateral relations came under discussion, including political, economic and trade relations, cooperation in agriculture, environment and education, cultural exchanges, defense relations and people to people contacts,” the Pakistani foreign office added.
“The focus of talks on economic cooperation and people to people relations is a realistic and pragmatic agenda for the revival of ties,” Former Pakistani diplomat Ali Sarwar Naqvi, an executive director of the Center for International Strategic Studies in Islamabad, told Arab News, commenting on the latest interactions in Dhaka.
In regional terms, Naqvi said growing ties between Islamabad and Dhaka were a “setback” to India’s hegemonic ambitions in South Asia.
Former Foreign Secretary Aizaz Ahmad Chaudhry said the people of Pakistan and Bangladesh were bound by history, faith and culture, and it was encouraging to see their bilateral ties on an “upward trajectory.”
“It was unfortunate that during Sheikh Haseena’s time, all these relations and relations were cut off, but now that the change has come, the situation has improved,” he told Arab News, saying any differences in the future should be resolved through “diplomacy and dialogue.”
“The cooperation between Pakistan and Bangladesh is not aimed against any third country, and India should see it as a natural interaction between two sovereign nations,” he added.
Another former ambassador, Masood Khalid, said Pakistan and Bangladesh were once one country and it was “illogical and unnatural” for them not to have diplomatic contact for decades.
“Both countries deciding to explore cooperation in multiple fields and restore their historical bonding finds resonance among the people of two countries,” he told Arab News.
“I am confident that this headway in bilateral ties will be of mutual benefit and conducive to regional peace and stability.”
Pakistan hopes for more joint ventures with China through newly inaugurated BRI trade center
- Belt and Road Economic and Trade Center was officially launched this week in Changshu City
- Center features dedicated country display zones and liaison offices for BRI member nations
ISLAMABAD: The Belt and Road Economic and Trade Center (BRETC) will provide Pakistan with a “one stop solution” for joint ventures with Chinese companies, a Pakistani adviser for the newly inaugurated platform said this week.
BRETC was officially launched this week in Changshu City, a key hub in the Yangtze River Delta economic zone in Jiangsu Province. Among the platform’s core objectives is facilitating joint ventures, providing project and trade financing, and helping BRI partner countries access China’s market. The center features dedicated country display zones and liaison offices for key partners, including Pakistan, Jordan, Nigeria and others.
BRETC adviser, Moin Ul Haque, a former Pakistani ambassador to China, said the platform would serve as a “one-stop platform for trade, investment and cultural exchanges, facilitating deeper integration between China and partner countries” like Pakistan.
“The basic purpose of setting up the center was to provide a platform for the countries which are members of Belt and Road for their business connectivity, to improve, to facilitate international trade, to provide a one stop solution for joint ventures with Chinese companies,” he was quoted by Pakistani state news agency APP as saying at the inauguration of BRETC.
The center will provide Belt and Road partner countries with free office space for three years, a free display corner and legal support, and help them set up business branch offices in China.
It will also serve as a platform to enable Belt and Road countries to procure Chinese exports, including commodities and advanced technologies.
Ibrahim Munir, the chairman of the IBI International Group, which initiated and funded BRETC, spoke about the reasons he chose the newly built High-Tech Zone in Changshu as the location for the center.
“It gives you all solutions when it comes to business. It has all kinds of industry – textiles, solar manufacturing, biotech and name of any industry you can have it here,” Munir said.
“And also, the connectivity toward the ports, Changshu port and Suzhou port and Shanghai port. It’s all in one solution, 2ZA3 BXQ and also the incentives, the government policy for the businesses is perfect.”
He said BRETC aimed to connect with over 30 countries and had already engaged with more than 20 to discuss future collaborations and shared visions.
Once put into operation, the center will offer comprehensive solutions spanning bilateral bulk trade, supply chain management, engineering procurement and construction (EPC), transfer-operate-transfer (TOT) projects, production line setup and financing services for both business-to-business (B2B) and business-to-government (B2G) engagements.
