ExxonMobil reopens office in Pakistan after 27 years

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A delegation of Coca-Cola Company, Pakistan and bottling partners Coca-Cola Içecek Turkey, led by Orhun Kostem, Regional Director, is meeting with Prime Minister Imran Khan at PM Office. (Photo courtesy: PM Office)
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A delegation of Suzuki Motors Corp led by Osamu Suzuki, Global Chairman Suzuki, meets with Prime Minister Imran Khan. (Photo courtesy: PM Office)
Updated 28 November 2018
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ExxonMobil reopens office in Pakistan after 27 years

  • Suzuki Motors to invest $450mn in the country, Finance Minister says
  • Islamabad desperately seeks FDI to support its balance of payment crisis

KARACHI: Finance Minister Asad Umar took to Twitter on Tuesday to announce Suzuki Motors’s interest in investing $450 million in Pakistan as part of its plans to expand its car production capacity. 

In the same breath, Umar added that ExxonMobil, the American multinational oil and gas company, has re-opened its office in Pakistan after 27 years.  

“Excellent day from a foreign investment perspective. Global Chairman Suzuki Motors visited and expressed interest in investing $450 million to expand car production in Pakistan and world’s biggest energy company ExxonMobil re-opened their office in Pakistan 27 years after leaving the country,” he tweeted.

Confirming the news, Abdul Razak Dawood, Adviser for Commerce, Textile, Industry & Production, told Arab News: “Yes they (Suzuki Motors) are coming for expansion and we welcome them.” 

A delegation of Suzuki Motors Corp – comprising several top officials including the Ambassador of Japan, Takashi Kurai -- also called on Prime Minister Imran Khan on Tuesday, a statement issued by his office said. 

They briefed the premier about the existing investments of Suzuki Motors Corp and the company’s future plans in the country. The prime minister was also apprised about plans for the construction of a second plant which aims to manufacture an additional 100,000 vehicles per year.

PM Khan, while appreciating the contribution of Suzuki Motors in the automobile sector, said that the present government is committed to the development of the private sector, the growth of the manufacturing sector, and improving the ease of doing business, among other things, the statement said. 

Suzuki Motor Corporation is a Japanese multinational corporation which manufactures automobiles, four-wheel drive vehicles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal combustion engines. 

Established in 1983, the company has increased its production capacity to 150,000 units per annum. 

Last year, the company had expressed an interest to avail the greenfield status for its new plants under the current auto policy of 2016-18.

Meanwhile, Pakistan’s auto manufacturers are gearing up their production capacity by adopting new technologies as more than 10 new companies have announced plans to enter Pakistan’s growing automobile market. 

Car assemblers expect that the demand for the vehicles will reach 500,000 units by the year 2024-2025. The sales of cars in Pakistan stands at around 268,000 units, including used cars imported mainly from Japan. The present installed capacity is 285,000 units per year, according to the Pakistan Association of Automotive Parts and Accessories Manufacturers. 

ExxonMobil, on its part, reenters Pakistan’s market after a gap of nearly three decades by re-opening its office in the country. “ExxonMobil is coming in a big way,” Dawood said in response to a question about the investment potential of ExxonMobil returning to Pakistan. 

In May this year, the oil giant acquired 25 percent stakes in offshore drilling in Pakistan. The agreement was signed at the Prime Minister’s Secretariat between representatives of ExxonMobil, Government Holdings Private Limited, PPL, Eni and the Oil and Gas Development Corporation. 

The agreement has reduced the drilling share of other partner exploration companies to 25 percent each, with the first exploration well planned for January 2019. The company is also putting up an LNG berth at Port Qasim, the second seaport in Karachi. 

A delegation of Coca-Cola Company in Pakistan and bottling partners Coca-Cola Içecek Turkey, led by Regional Director Orhun Kostem met PM Khan to discuss short and long-term investment plans in Pakistan. 

Coca-Cola said that they have already invested more than $500 million in the past five years and plan to invest another $200 million in the future. The move is expected to create new jobs, support ancillary industries and help the government earn incremental revenue through taxes, as the business grows further. 

Pakistan is currently facing an external imbalance of payments, for which it is seeking financial assistance from the International Monetary Fund and its allies, including Saudi Arabia which has pledged a $6 billion bailout package out of which Islamabad recently received $1 billion.


Deputy PM labels Gaza war UN’s ‘crisis of credibility’ as Pakistan joins Security Council

Updated 01 January 2025
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Deputy PM labels Gaza war UN’s ‘crisis of credibility’ as Pakistan joins Security Council

  • Ishaq Dar highlights global challenges in an address to envoys after Pakistan gets two-year UNSC term
  • Deputy PM calls for multilateralism, vows to bridge international divides by working with other nations

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Wednesday described the ongoing war in Palestine as a “crisis of credibility” for the United Nations Security Council (UNSC), highlighting foreign occupations depriving people of the right to self-determination, as the country begins its two-year term as a non-permanent member of the council.

Elected in June 2024 with overwhelming support, Pakistan secured 182 votes in the 193-member General Assembly, marking its eighth term on the UNSC.

The council is the most powerful chamber of the global body, comprising five permanent members with veto power and 10 non-permanent members elected for two-year terms. While non-permanent members cannot veto resolution, they play a crucial role in decision-making and contribute significantly to the council’s functioning.

Addressing a group of envoys in Islamabad, Dar expressed gratitude for the international community’s confidence in Pakistan’s role on the council, pledging to collaborate with other states to uphold the UN Charter and bridge international divides amid pressing global challenges.

“Pakistan is beginning to pursue its role in the UN Security Council at a time when we are confronted with many unprecedented challenges,” he said. “Situations of conflict and continued foreign occupation defy the promise of the United Nations to save succeeding generations from the scourge of war and guarantee self-determination.”

“Longstanding unresolved disputes from Jammu and Kashmir to Palestine continue to simmer,” he added. “The ongoing situation in Gaza, including the blatant war crimes and acts of genocide being committed against the innocent Palestinians, represents a crisis of credibility for the United Nations Security Council.”

The deputy premier also highlighted the breakdown of arms control regimes, escalating arms races and the rise of intolerance and extremist ideologies as critical global concerns.

“Today, as we stand at a critical juncture, we remain ready to contribute meaningfully to the council’s work, drawing on our rich legacy and faith in multilateral diplomacy,” he said. “We look forward to playing a constructive role in bridging existing divides, fostering consensus and upholding the council’s mandate in accordance with the UN Charter.”

Outlining Pakistan’s priorities for its UNSC term, he reiterated a firm commitment to the world body’s charter.

“We will remain committed to pursuing just and peaceful resolution of outstanding and ongoing disputes, opposing the resort to unilateral and illegal use or threat of use of force, combating terrorism in all its forms and manifestations, supporting effective UN peacekeeping, peace enforcement and peacebuilding efforts, and contributing effectively toward the resolution of regional and global crises.”


Pakistani non-profit calls 2024 elections ‘flawed,’ welcomes government-opposition dialogue

Updated 01 January 2025
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Pakistani non-profit calls 2024 elections ‘flawed,’ welcomes government-opposition dialogue

  • PILDAT sees coalition parties assisting the establishment for ‘short-term selfish political gains’
  • It says recent amendments reflect growing centralization of decision-making in the country

ISLAMABAD: A leading Pakistani non-profit on Tuesday said the 2024 general elections led to a “fracture of popular mandate” and intensified political instability in the country, though it also expressed optimism over the newly initiated negotiations between the government and opposition.

The Pakistan Institute of Legislative Development and Transparency (PILDAT), which focuses on democratic governance, released its end-of-year Quality of Democracy in Pakistan 2024 report a day earlier. The report provides an overview of the state of politics in Pakistan over the past year, marked by increasing polarization and systemic issues.

“The 12th General Election held in February 2024 after a considerable delay was a largely flawed exercise that served to fracture popular mandate and to provide citizens only with a modicum of political and electoral choice,” it said.

Pakistan’s national polls were marred by accusations of irregularities, including delayed results, amid claims by former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party that its candidates faced significant obstacles in running their campaigns.

PTI candidates were also forced to contest as independents after the Supreme Court ruled its intra-party elections flawed, stripping it of its election symbol. Party leaders alleged the system was heavily rigged against them.

The subsequent election results did not leave any party positioned to form a government independently, leading to political negotiations that helped the ruling Pakistan Muslim League-Nawaz (PML-N) of Prime Minister Shehbaz Sharif build a coalition with a razor-thin majority.

“Pakistan’s leading political parties have continued to display a sad and familiar proclivity to assist the establishment against a political opponent of the time in return for short-term selfish political gains,” the report noted, using a popular euphemism for the country’s powerful military and adding that the current political set-up “is no different.”

It also highlighted controversial developments, including amendments restructuring the judiciary and extending the tenures of defense chiefs, which it described as evidence of growing centralization of decision-making influenced by the establishment.

The PILDAT report also addressed persistent social media blackouts in the country, describing them as a means of suppressing critical political voices.

“To manage and silence political dissent, the current set-up has stepped up efforts to manage the use of Internet and social media platforms by blocking certain applications and controlling the flow of communication through others,” it said.

However, the report welcomed the dialogue between the government and PTI, which formally began last month, calling it a potential path to political and economic stability.

“Against this bleak horizon, the improving economic stability and the stated willingness and initiation for political dialogue between the PTI and the government offer the only silver lining,” PILDAT noted.

“Despite grandstanding by the government and its backers and tough bargaining and threats of civil disobedience by the PTI, it is our belief that a comprehensive dialogue must be sustained to find politically negotiated solutions,” it added.


Pakistan PM vows to work for ‘economic self-reliance’ in 2025 amid security challenges

Updated 01 January 2025
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Pakistan PM vows to work for ‘economic self-reliance’ in 2025 amid security challenges

  • Shehbaz Sharif calls 2024 ‘a remarkable year of Pakistan’ in which it ‘marched from default to development’
  • He acknowledges the renewed threat of militant violence while praising the military’s efforts to counter it

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday described 2024 as a year of economic recovery and expressed hope for self-reliance in the new year, while acknowledging persistent security challenges caused by a surge in militant violence.
Pakistan narrowly avoided a sovereign debt default in 2023 after securing short-term external financing from the International Monetary Fund (IMF) under a $3 billion bailout program.
The agreement required Islamabad to implement stringent economic reforms, including subsidy cuts and utility price hikes, to stabilize its fragile economy. While macroeconomic indicators have since improved, many Pakistanis continue to grapple with the lingering effects of years of financial turmoil and the burden of reforms.
The government also managed to secure another IMF loan of $7 billion last year in September, saying it was important to get the money to consolidate the economic gains.
“2024 was a remarkable year for Pakistan, as we marched from default to development, overcoming economic challenges with resilience and determination,” Sharif wrote on X, formerly Twitter. “We made difficult but necessary decisions that rescued our economy from collapse, restored macroeconomic stability, controlled fiscal deficits, and strengthened our reserves. As a result, inflation has come down to single digits, and the prospects for economic growth have been revived.”
“We step into 2025 with renewed determination to achieve economic self-reliance and chart a brighter, more prosperous future for our nation,” he added.
Sharif’s remarks also addressed the security situation, highlighting Pakistan’s armed forces’ efforts to counter a renewed wave of militant violence.
“Amidst other challenges, Pakistan also faced a renewed surge in terrorism this year,” he said, reaffirming the military’s commitment to ensuring peace.
He credited the nation’s unwavering support for its forces in their fight against militants who, he maintained, “stand in stark opposition to the very idea of Pakistan.”
The prime minister also highlighted the launch of “Uraan Pakistan,” or “Fly Pakistan,” which is a homegrown five-year, export-oriented economic transformation plan unveiled by his administration a day earlier, which he described as a result of his government’s vision to build on recent stability and achieve sustained growth.
 


As 2025 dawns, Karachi family recalls a year of financial struggles in Pakistan’s economic storm

Updated 01 January 2025
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As 2025 dawns, Karachi family recalls a year of financial struggles in Pakistan’s economic storm

  • Effendis slashed monthly grocery budget, let go of domestic help in 2024 amid surging inflation, rising utility bills
  • The family hopes fuel and food prices stabilize in 2025, allowing them to resume family outings and vacation trips

KARACHI: In a modest rented apartment in Karachi’s Gulistan-e-Jauhar neighborhood, Ednan Effendi and his wife, Samreen, recall a time when annual family trips to northern Pakistan were a cherished tradition. Now, stagnant incomes, inflation and higher taxes have left the Effendis, like millions of other Pakistani families, struggling, as the country tries to recover from a prolonged economic crisis.
Pakistan’s inflation rate in November fell to 4.9 percent, a six-year low, with the finance ministry projecting December’s rate to hover around 4-5 percent. The central bank expects consumer prices to average below 13.5 percent this fiscal year, attributing the improvement to sound monetary policy, a stable currency and declining global commodity prices.
Yet, countless middle-class families like the Effendis— a key indicator of any country’s economic health— are reeling from rising fuel and food costs, along with increased taxes.
“Four years ago, we used to go on family trips to Pakistan’s northern areas annually,” Samreen Effendi, 45, told Arab News. “But now the budget doesn’t allow it.”
Last year in September, Pakistan secured a 37-month, $7 billion financial bailout from the International Monetary Fund (IMF), committing to financial reforms such as raising taxes and utility prices. While aimed at long-term stabilization, these measures have deepened financial hardship for families like the Effendis, forcing difficult trade-offs.
“We have no choice but to live within our income,” said Effendi, a 53-year-old government officer and father of two. “In the same salary, we must pay children’s school fees, buy groceries and manage household expenses.”
Four years ago, the Effendis could afford items like ketchup, chocolate spread and cheese in their monthly groceries. Surging inflation has slashed their grocery budget from Rs30,000 [$107] to Rs15,000 [$53.68]. Now, their monthly shopping is limited to staples such as rice and lentils.
“Gone are the days when we could buy everything in bulk,” Samreen lamented.
She said that she once dreamed of providing her children with an education better than her own, though she has now been facing harsh realities.
“Even the fees for government colleges and universities have become so high they have gone beyond our budget,” she said. “What can we do? We are middle-class people.”
‘ENJOYING LIFE OUT OF THE QUESTION’
As living costs soared, Samreen let go of domestic help and now takes on all the household chores herself.
“We’ve let go of our maids. Now we sweep and mop the house ourselves, wash clothes ourselves,” she said. “A regular woman can do these tasks, but how can she also work a job alongside them?”
Millions of families in Karachi grapple with daily water and gas shortages, resorting to costly gas cylinders and private water tankers charging exorbitant rates.
Samreen says managing groceries, education bills and rising utility expenses has become nearly impossible.
“Going out and enjoying life is out of the question now. Even having two meals a day at home has become a blessing,” she added.
Despite the challenges, the Effendis hold on to hope as the new year approaches. Effendi longs for the day prices stabilize, allowing him to take his family on outings and fulfill his father’s modest wish of traveling to the scenic hill station of Murree by train.
“I could take my children and my wife for outings, seeing a smile on her face,” Effendi said. “I could take my father, who has been asking for a trip to Murree or a train ride for so long.”
“My biggest wish is for 2025 to be a great year for me and everyone else,” he added.


Blasts in northwest Pakistan leave 2 dead, 13 wounded including policemen

Updated 01 January 2025
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Blasts in northwest Pakistan leave 2 dead, 13 wounded including policemen

  • First attack targeted a funeral in Azam Warsak, the other was directed against a police van in Bannu
  • Such incidents have surged in recent years, contributing to an atmosphere of heightened insecurity

PESHAWAR: Two people were killed and at least 13 others, including several police personnel, were injured in two separate bomb blasts in northwestern Khyber Pakhtunkhwa (KP) province on Tuesday, police said.
KP, which shares a long and porous border with Afghanistan, has experienced a surge in militant violence in recent years. The region has been targeted by deadly suicide bombings and attacks on both civilians and security forces, contributing to an atmosphere of heightened insecurity.
Police spokesperson in the province, Habib Islam, told Arab News the first explosion occurred in Azam Warsak, a town on the outskirts of Wana, the headquarters of South Waziristan district, as people dispersed from a funeral ceremony.
“The blast left two persons dead and eight others wounded. The explosion was triggered by a remote-controlled device, but it can’t be immediately confirmed who was the target of the attack,” he added.
Soon after the incident, a heavy police contingent rushed to the crime scene to evacuate the dead and wounded to the nearest medical facility.
Dr. Hammad Mehmood, a senior medical practitioner at the DHQ Hospital Wana, said the staff received a total of nine wounded, with two critically injured individuals referred to Dera Ismail Khan for treatment.
The second blast occurred in Bannu district, where a police mobile van was targeted with an improvised explosive device (IED), leaving five policemen injured, a senior police officer, Zahir Nawaz, told Arab News.
“Five policemen were injured in a blast triggered by a device planted in the Mamaskhel area of Bannu district,” he added.
Over 82 policemen have been killed in attacks, ambushes, and targeted killings in KP this year, according to official data.
Such attacks have been on the rise in northwestern Pakistan in recent months, with most being claimed by the banned Tehreek-e-Taliban Pakistan (TTP) militants.
TTP fighters have targeted security forces’ convoys and check posts and carried out targeted killings, as well as kidnappings of law enforcers and government officials.
Earlier this month, two policemen were killed and three injured in an attack on a check post in the province’s Shangla district.
Pakistan has frequently accused neighboring Afghanistan of sheltering and supporting the TTP and other militant groups, urging the administration to prevent its territory from being used by armed factions to launch cross-border attacks.
The Afghan Taliban deny the charge, insisting Pakistan’s security issues are an internal matter.