Focus: US unemployment and Eurozone woes

Short Url
Updated 01 May 2020
Follow

Focus: US unemployment and Eurozone woes

What happened:

US first-time jobless claims jumped another 3.8 million, topping 30 million over the last six weeks.

Eurozone growth rates were dismal too, coming in at minus 3.8 percent for the eurozone as a whole, minus 5.8 percent for France, minus 5.2 percent for Spain, and minus 4.7 percent for Italy.

The corporate earnings season continued with Apple, Amazon and Twitter all either taking a hit or showing lackluster results.

Apple’s net income stood at $11.2 billion. Revenue was up by 1 percent, which was below guidance. Twitter reported a loss of $8 million, due to slagging advertising revenue, and Amazon reported a net income of $2.5 billion, down 30 percent compared to the first quarter (Q1) of 2019. Sales increased by 26 percent as orders jumped due to the coronavirus disease (COVID-19) lockdowns. Operating amidst lockdown and social distancing increased the cost base, which explains the discrepancy between revenues and profit.

US multinational energy corporation ConocoPhillips reported a loss of $1.7 billion due to the challenging environment in the oil and gas sector.

RBS was forecasting an operating profit of £519 million and beefed up its loan loss provisions to £802 million.

Budget airline Ryanair announced that it would cut 3,000 jobs, representing 15 percent of its workforce. The company’s CEO Michael O’Leary told Bloomberg that the $30 billion in state aid to some carriers but not others would lead to market distortions, penalizing some of the more profitable budget airlines.

BA (British Airways) is temporarily closing its base at Gatwick airport.

Background:

The European Central Bank (ECB) left rates unchanged despite the eurozone’s dismal GDP numbers. ECB president, Christine Lagarde, predicted the eurozone economy to contract between 5 and 12 percent for the full year of 2020. In its downside scenario for the second quarter it sees a contraction of 15 percent.

The bank did not increase its 750 billion-euro emergency asset purchase program, but Lagarde indicated willingness to do so down the line.

The ECB left interest rates prima facie unchanged. Its TLTRO-III program lets banks obtain three-year liquidity between minus 0.5 and minus 1 percent if they meet lending goals.

Under its PELTRO (pandemic emergency longer-term refinancing operations) they can get loans with maturities up to 16 months at an interest rate of minus 0.25 percent. The ECB has also allowed banks in some cases to lower the requirements on collateral to BB. These measures are tantamount to a stealth interest-rate cut and are designed to ease the stress on European lenders.

Decision making is less clear cut at the ECB than it is at the US Federal Reserve, because the eurozone consists of 19 countries with their own fiscal systems. However, both institutions showed a similar trajectory by announcing huge programs last month and only tweaking them at the margins this month, while indicating willingness to do more if necessary and emphasizing the importance of further fiscal stimulus.

The EU has so far spent 3.5 trillion euros in rescue funding. Going forward the institution will frontload its seven-year budget. It will also borrow money for a recovery program, which European Commission President Ursula von der Leyen likened to the Marshall Plan (a 1948 post-war foreign aid scheme for Western Europe) and which will be funneled through the multiannual budget to be frontloaded again.

While US first-time jobless claims for the week ending April 24 are high, new claims seem to be on a downward trajectory. More than 30 million Americans have filed for unemployment benefits over the last six weeks. US Secretary of Labor Eugene Scalia told CNBC that benefits had not trickled through to recipients at the desired speed, because many states had antiquated computer systems rendering processing the sheer number of transactions challenging.

The unemployment rate will be higher than after the financial crisis, which is bound to leave a big dent on consumer confidence and consumer spending in an economy which depends 70 percent on the consumer.

Under any scenario, employment is not going to increase as fast as people have lost jobs over the last two months.

Where we go from here:

The dismal economic news combined with lackluster earnings reports resulted in markets sliding across the board on Thursday and into Friday. This stands in stark contrast to the April performance of all major stock exchanges. The S&P 500 was up by 18 percent and the Nasdaq by 21 percent.

Again, this is a striking difference with the overall macroeconomic picture, giving rise to the question, if or rather when we shall see a downward adjustment?

 

 

— Cornelia Meyer is a Ph.D.-level economist with 30 years of experience in investment banking and industry. She is chairperson and CEO of business consultancy Meyer Resources.
Twitter: @MeyerResources


Palmeiras edge Brazilian rivals Botafogo in extra time at Club World Cup

Updated 5 min 45 sec ago
Follow

Palmeiras edge Brazilian rivals Botafogo in extra time at Club World Cup

  • Winners of the Copa Libertadores in 2020 and 2021, Palmeiras will now stay in Philadelphia
  • All eyes were on Estevao, the 18-year-old winger who will join Chelsea once the tournament is over

PHILADELPHIA: Substitute Paulinho scored an extra-time winner to settle a Brazilian battle of attrition as Palmeiras edged Botafogo 1-0 on Saturday to win through to the Club World Cup quarter-finals.

The winger came on at the same time in the second half as Palmeiras coach Abel Ferreira withdrew teenage sensation Estevao Willian, a move that appeared baffling at the time but ultimately proved inspired.

The tie had reached the 100th minute when Paulinho collected a pass by Richard Rios on the right flank and was afforded the time and space to come inside into the box before slotting a low shot into the far corner.

That sparked wild celebrations among the Palmeiras fans who made up the vast majority of the 33,657 crowd inside Lincoln Financial Field, and the side from Sao Paulo held on to win the last-16 showdown despite having captain Gustavo Gomez sent off late on.

Winners of the Copa Libertadores in 2020 and 2021, Palmeiras will now stay in Philadelphia for a last-eight tie next Friday against either Benfica or Chelsea, who meet later Saturday in Charlotte.

They had been the more dangerous side throughout in this meeting of the top two in last year’s Brazilian league, with almost all of the chances falling the way of the men in green.

Rio de Janeiro side Botafogo pipped Palmeiras to the domestic title and also won the Copa Libertadores for the first time in their history in 2024.

They then lost their coach and several key players, but still managed to beat European champions Paris Saint-Germain during the group stage of the Club World Cup as they qualified for the knockout phase ahead of Atletico Madrid.

Nevertheless Palmeiras were the more lively of the two teams in a game played in warm midday conditions in Philadelphia.

All eyes were on Estevao, the 18-year-old winger who will join Chelsea once the tournament is over and is seen as Brazil’s next big thing.

He found it hard to make an impact in what was for long spells a disappointing game pockmarked by moments of quality.

Colombian midfielder Rios came close to scoring in first-half stoppage time with a thunderous shot from the edge of the box that was deflected onto the roof of the net.

Estevao then came to life after the restart, forcing a good save from Botafogo goalkeeper John Victor and then putting the ball in the net only to be denied by an offside flag.

There was surprise around the stadium when the starlet was taken off just after the hour mark alongside striker Vitor Roque, with Luighi and Paulinho sent into the attack.

A Mauricio header from a Joaquin Piquerez cross was tipped over and Paulinho then blazed high from a good position as normal time ended goalless.

Into the extra half-hour they went, and a Rios piledriver was parried behind before the goal finally arrived thanks to the once-capped Brazil winger who played in the Atletico Mineiro side beaten by Botafogo in last year’s Libertadores final.

The substitute was then promptly substituted, his job done for the day.

Botafogo pushed for an equalizer that would have led to a penalty shoot-out, but could not find it even after Paraguayan center-back Gomez walked for a second booking in the 116th minute for grappling off the ball with Alexander Barboza.


Growing Saudi film industry driving job creation, economic growth

Updated 17 min 47 sec ago
Follow

Growing Saudi film industry driving job creation, economic growth

  • Over 630 cinema screens opened across 60 locations in 2024, with ambitions to exceed 1,000 by 2030

RIYADH: Since lifting the cinema ban in 2018, Saudi Arabia has rapidly transformed its film industry into a key engine of job creation and economic diversification.

By 2024, the Kingdom had opened over 630 cinema screens across 60 locations, with ambitions to exceed 1,000 by 2030.

This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade. 

Building an industry

To date, more than SR3.5 billion ($933 million) has been invested in cinema infrastructure, content services, and technology by local and international players. 

According to Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little Middle East, these investments have extended beyond major cities into developing regions, promoting more inclusive economic growth.

“A notable example is Muvi Cinemas, the first Saudi-owned cinema brand and current market leader, which has rapidly expanded to establish itself as the market leader. It has employed hundreds of Saudis and actively invested in workforce localization through training programs aimed at building local capabilities in cinema operations and management,” Khan said.

He added that box office revenues have held steady at SR900 million annually for the past three years, with food and beverage sales contributing over SR500 million each year — strengthening the sector’s role in Saudi Arabia’s non-oil revenue diversification. Khan also pointed to the positive spillover into local film production, supported by regulatory incentives from the Film Commission, which is laying the groundwork for sustainable, locally driven industry growth. 

Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism.

Abeer Al-Husseini, partner at Fragomen

According to Abeer Al-Husseini, partner at Fragomen, the establishment of entities like the Film Commission and the General Entertainment Authority, alongside the development of advanced studios, has opened up new opportunities in creative, technical, and support roles. She noted that this momentum is also fueling demand for film and media education.

“Event management, hospitality and cultural tourism have similarly benefited, particularly around major film festivals and heritage venues. Incentives like the Cash Rebate Incentive Program, which offers up to 40 percent in non-refundable grants, draw in international productions and further drive job creation,” Al-Husseini said.

She added that Saudization is making steady progress, with full nationalization in cinema sales and supervisory roles and 50 percent in technical jobs, placing Saudi talent at the center of the sector’s growth.

Al-Husseini also emphasized the broader impact of cultural initiatives such as the Red Sea International Film Festival, which supports global filmmakers while boosting local tourism and ancillary sectors including entertainment, food, media, and digital content. 

Vision 2030 and a cinematic future

Saudi Arabia is positioning itself as an international production hub by capitalizing on a combination of geographic diversity, government incentives, and growing infrastructure. 

From Arthur D. Little’s standpoint, initiatives such as Film AlUla have played a crucial role since 2020, attracting over 120 productions to the region, including international titles like Kandahar and Norah.

“Meanwhile, NEOM has become a cornerstone of Saudi Arabia’s emerging media industry. Over the past two years, the region has reportedly produced more than 35 projects spanning various formats, genres, and production scales,” said Khan, adding: T”his includes high-profile projects like the Apple TV+ series Foundation and the international blockbuster Desert Warrior, which employed hundreds of Saudis in areas such as set design, catering, security, and logistics.” 

He noted that these projects are helping build a skilled local workforce, with government cash rebates and infrastructure investment creating the foundations for a world-class production ecosystem. The country’s target of producing 100 feature films by 2030 is also expected to unlock opportunities across tourism and hospitality. 

FASTFACTS

• This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade.

• While meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.

“A compelling example of this potential can be seen in Australia, where Mission Impossible: 2 significantly boosted tourism — contributing to approximately 200 percent increase in visitors to the film location within a few years. Similarly, Saudi Arabia’s cinematic exposure is poised to elevate the Kingdom’s profile on the global stage, attracting tourists, stimulating local economies, and advancing the goals of Vision 2030,” he said.

Al-Husseini underscored the role of AlUla and NEOM in promoting the Kingdom’s unique cultural and futuristic offerings, both critical to advancing Vision 2030.  “Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism. This boost in tourism supports local businesses in hospitality, retail and transport,” she said.

Looking ahead, Arthur D. Little’s Khan said that by 2025, the Saudi film sector is expected to create thousands of new jobs across related industries, supported by generous incentives such as a 40 percent production rebate and dedicated funding programs. University-level film and media programs are also helping nurture the next generation of local talent.

“Tourism will see strong gains as well. AlUla and NEOM’s media zone is expected to draw hundreds of thousands of creative professionals and visitors annually once fully operational,” he said.

Khan highlighted key opportunities in developing Arabic-language content, forming public-private partnerships to support talent pipelines and infrastructure, and exporting Saudi films to neighboring Gulf Cooperation Council, African, and Asian markets. However, he noted the need to address challenges such as building a skilled workforce, navigating cultural sensitivities, and adapting to shifts toward digital streaming platforms.

Al-Husseini emphasized that Saudi Arabia’s film industry is on course to boost employment and growth, with infrastructure investments — like AlHisn Studios — strengthening its capacity for large-scale productions.

“Partnerships with global production companies are on the rise, as seen in the MBS Group’s recent agreement to manage and operate AlUla Studios. At the same time, training programs and workshops are being rolled out to develop local talent while attracting international professionals, supporting long-term industry sustainability,” she said.

She concluded that while meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.


At least 1.2 million Afghans forced to return from Iran and Pakistan this year — UN

Updated 24 min 29 sec ago
Follow

At least 1.2 million Afghans forced to return from Iran and Pakistan this year — UN

  • Iran has deported over 366,000 Afghans this year, with the 12-day war increasing departures
  • Pakistani officials have set a June 30 deadline for nearly 1.3 million Afghan nationals to leave

ISLAMABAD: At least 1.2 million Afghans have been forced to return from Iran and Pakistan this year, the UN refugee agency said Saturday, warning that repatriations on a massive scale have the potential to destabilize the fragile situation in Afghanistan.

Iran and Pakistan in 2023 launched separate campaigns to expel foreigners they said were living in the country illegally. They set deadlines and threatened them with deportation if they didn’t leave. The two governments deny targeting Afghans, who have fled their homeland to escape war, poverty or Taliban rule.

The UN high commissioner for refugees said that of the 1.2 million returning Afghans, more than half had come from Iran following a March 20 government deadline for them to leave voluntarily or face expulsion.

Iran has deported more than 366,000 Afghans this year, including refugees and people in refugee-like situations, according to the agency.

Iran’s 12-day war with Israel also has driven departures. The highest number of returns was on June 26, when 36,100 Afghans crossed the border in one day.

“Afghan families are being uprooted once again, arriving with scant belongings, exhausted, hungry, scared about what awaits them in a country many of them have never even set foot in,” said Arafat Jamal, the UNHCR representative in the Afghan capital, Kabul.

He said women and girls are particularly worried, as they fear the restrictions on freedom of movement and basic rights such as education and employment.

More than half Afghanistan relies on humanitarian assistance. But opposition to Taliban policies and widespread funding cuts are worsening the situation, with aid agencies and nongovernmental organizations cutting back on basic services like education and health care.

IRAN URGES FOREIGNERS TO LEAVE QUICKLY

Iran’s attorney general, Mohammad Movahedi Azad, said Saturday that foreigners in the country illegally should leave as soon as possible or face prosecution, state media reported.

“Foreign nationals, especially brothers and sisters from Afghanistan whom we have hosted for years, help us [so] that illegal individuals leave Iran in the shortest period,” the official IRNA news agency quoted Azad as saying.

Iranian authorities said in April that out of more than 6 million Afghans, up to 2.5 million were in the country illegally.

Iran’s top diplomat in Kabul, Ali Reza Bikdeli, visited the Dogharoun border crossing with Afghanistan and promised to facilitate the repatriation of Afghans, state TV reported.

Iranians have complained about the increasing presence of Afghans in recent months, with some accusing them of spying for Israel since the outbreak of the war.

TALIBAN PLEDGE AMNESTY

Earlier this month, on the religious festival of Eid Al-Adha, the Taliban prime minister said all Afghans who fled the country after the collapse of the former Western-backed government were free to return, promising they would be safe.

“Afghans who have left the country should return to their homeland,” Mohammad Hassan Akhund said in a message on X. “Nobody will harm them. Come back to your ancestral land and live in an atmosphere of peace.”

On Saturday, a high-ranking ministerial delegation traveled to western Herat province to meet some of the Afghans returning from Iran.

The officials pledged “swift action to address the urgent needs of the returnees and ensure that essential services and support are provided to ease their reintegration,” according to a statement from the Taliban deputy spokesman Hamdullah Fitrat on X.

People get food, temporary accommodation and access to health care upon their return, said Ahmadullah Muttaqi, the director of information and culture in Herat. Everyone receives 2,000 Afghanis, or $28.50, in cash and is taken free of charge to their home provinces.

“Upon arrival, they are housed in designated camps until permanent housing is arranged, as residential townships are currently under construction in every province for them,” he told The Associated Press.

Meanwhile, Pakistani authorities have set a June 30 deadline for some 1.3 million Afghans to leave. Pakistan aims to expel a total of 3 million Afghans this year.


Battery cost drops and govt drive help Kingdom achieve EV goals

Updated 25 min 30 sec ago
Follow

Battery cost drops and govt drive help Kingdom achieve EV goals

  • Global battery market is advancing rapidly as demand rises sharply and prices continue to decline

RIYADH: A rapid decline in battery prices and critical mineral costs, along with effective government initiatives, are expected to help Saudi Arabia achieve its goal of electrifying 30 percent of vehicles in Riyadh by 2030, according to experts.

Speaking to Arab News, Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, said that the Kingdom needs to deploy at least 1.5 million electric vehicles by 2030 to meet this stipulated target.

Known for its oil wealth, Saudi Arabia has been leading the region’s energy transition and is now focused on developing a comprehensive EV ecosystem.

As a part of this strategy, the nation has invested in US-based EV manufacturer Lucid through the Kingdom’s sovereign wealth fund, as well as creating its homegrown electric vehicle brand Ceer, which is expected to roll out vehicles by 2026.

“Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets and build a competitive regional automotive industry, reinforced by the broader global trend of declining battery prices. It will also be driven by both the government’s push and pull from the market,” said Salem.

He added: “Saudi Arabia’s $9 billion investment across the EV value chain, with Ceer launching vehicles by 2026 and a partnership with Lucid Motors to produce 155,000 EVs per year, underscores its commitment to becoming a regional EV manufacturing hub, reducing production costs and enhancing affordable EV availability.”

The Kingdom is also expanding its EV infrastructure, aiming to have 5,000 fast chargers nationwide by 2030, making adoption more practical for consumers.

The crucial cost factor

In March, a report released by the International Energy Agency said that the global battery market is advancing rapidly as demand rises sharply and prices continue to decline.

The IEA further stated that electric car sales increased by 25 percent year on year in 2024 to reach 17 million, while the average price of a battery pack for an electric car dropped below $100 per kilowatt-hour, a key threshold for competing on cost with conventional models. 

“The ongoing reduction in EV battery costs is already making certain electric vehicle segments cost-competitive with internal combustion engines,” said Christopher Decker, partner, energy and natural resources at Oliver Wyman – India, Middle East and Africa.

He added: “This growing affordability will help lay the foundation for EV infrastructure in Saudi Arabia, which is essential for scaling up and ultimately decarbonizing the broader light-vehicle fleet.” 

Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets.

Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East

Paul Sullivan, an energy and environment expert at Johns Hopkins University in Maryland, US, said that the Kingdom could advance its technical capabilities to make EVs more popular and affordable. “Saudi Arabia lives in its own auto market but also the world auto market. It must adjust to both. But it has the benefit of large cash flows and stocks to invest in new technologies and industries,” said Sullivan.

Citing a Goldman Sachs study,  Arthur D. Little’s Salem said that battery costs fell by over 85 percent in lithium pricing from 2022 to 2024, reducing global EV costs and helping automakers close the price gap with ICE vehicles.

Hel added that battery pack prices are expected to drop nearly 50 percent by 2026, making EVs’ total cost of ownership comparable to ICE vehicles in select major markets, including Saudi Arabia.

“With battery prices projected to reach $80 per kWh by 2026, EVs are becoming more affordable, making them increasingly attractive to Saudi consumers, where price is a key factor for a sizeable section of the customer base,” added Salem.

Advancing innovation

Experts who spoke to Arab News also praised recent innovations in Saudi Arabia, including a new lithium extraction technique developed by King Abdullah University of Science and Technology.

In January, researchers at KAUST presented their innovative technology in a study published in the Journal of Science, which describes a method for direct lithium extraction from brine in oilfields and seawater.

Lithium, a critical mineral for batteries, is present in these sources at very low concentrations, making it difficult to extract in useful quantities.

However, this new technology makes this otherwise inaccessible element extractable on an industrial scale. The technology was demonstrated on a pilot test 100,000 times larger than that of a university laboratory, and its cost was competitive relative to standard lithium mining extraction techniques.

“KAUST’s new lithium-extraction technique could reduce costs for Saudi as well as other battery makers. This last bit will happen when this lithium extracting technology spreads outside of Saudi Arabia or other similar methods are used across the world,” said Johns Hopkins University’s Sullivan. 

He added: “The lithium and battery industries are looking for ways to cut costs. This will drive more invention and research. Things can move quickly. A company and a country cannot rest on its victories in a quickly changing and uncertain world. This invention must be exploited quickly before it becomes obsolete by other inventions.”

Decker said that KAUST’s development of the new lithium extraction technique is a promising step toward integrating Saudi Arabia’s mining sector into the global lithium value chain.

Salem praised KAUST’s innovative efforts, noting that the breakthrough could extract up to 10,000 times more lithium from oilfield brine and seawater. This would reduce reliance on global markets and help secure a stable, cost-effective supply for domestic battery production and EV manufacturing.

The Arthur D. Little official further added that this new technology could open up potential lithium export opportunities and position the Kingdom as a global hub for critical battery materials, driving economic diversification.

“This innovation aligns with Saudi Arabia’s industrial strategy to localize the entire battery value chain — from critical minerals to EVs — and to build a new high-tech export sector,” said Salem.

Geographical shifts

According to the IEA, China produces over three-quarters of all batteries sold globally.

The energy think tank added that batteries in China were reported to be priced lower than in Europe and North America by over 30 percent and 20 percent, respectively.

Declining battery prices in recent years are a major reason why many EVs in China are now cheaper than their conventional counterparts.

However, Sullivan said that this Chinese dominance in the battery industry will not last forever, as other regions are also embracing methods to effectively manufacture batteries in a cost-effective manner.

“China may dominate for some time, but it will likely not have such a large share of the overall battery market forever. The US and the EU are putting significant efforts into developing their battery industries. For example, India may be a battery giant in the future. Japan and South Korea also want to build greater battery industries and markets,” said Sullivan.

He added: “Every industry must deal with and respond to threats of substitution, supplier power, buyer power, and threats of new entry. Saudi Arabia could play these five forces for success in the future. Economics and business do not stand still for long.”

Salem said that the Kingdom’s lithium extraction technology, if combined with the right ecosystem, could offer a chance to reduce reliance on China for selected components and materials, strengthening local supply chains.

“China’s policy shift is a wake-up call — it exposes global vulnerabilities but also creates a window for Saudi Arabia to assert strategic autonomy and emerge as a regional battery and EV manufacturing hub,” said Salem.

In early 2025, China’s Ministry of Commerce proposed new export restrictions targeting critical battery technologies, including lithium extraction and cathode material production. These measures would require government approval for technology exports and thus have intensified global concern over dependence risks.

Commenting on China’s dominance in the battery market, Decker noted that heavy geographic concentration in any critical supply chain raises concerns about resilience and long-term sustainability.

“Localization and diversification are becoming strategic priorities for many countries looking to build more independent and secure clean energy ecosystems. China will continue to play a central role in the battery industry, given its dominance in both processing capacity and control over key raw materials,” said Decker.

He added: “Collaboration, innovation, and transparent supply chain practices will be crucial to ensure global progress in the energy transition.”


Pakistan army chief hails cadets from Arab and allied nations at Naval Academy graduation

Updated 34 min 20 sec ago
Follow

Pakistan army chief hails cadets from Arab and allied nations at Naval Academy graduation

  • Among the 127 graduating midshipmen were 19 cadets from Bahrain, four from Iraq and two from Palestine
  • The army chief says Pakistan’s response to India standoff showed armed forces ready to defend the country

ISLAMABAD: Pakistan’s army chief, Field Marshal Asim Munir, on Saturday hailed the presence of cadets from Arab and allied countries at a Naval Academy graduation ceremony, saying it reflected the high standard of training the country offers to its military partners.

The commissioning parade, held in Karachi, marked the completion of the 123rd Midshipmen and 31st Short Service Commission courses.

Among the 127 graduating midshipmen were 19 cadets from Bahrain, four from Iraq and two from the State of Palestine, with additional participants from the Republic of Djibouti and the Republic of Türkiye.

“The Pakistan Naval Academy has consistently provided excellent professional training to cadets from allied nations,” the army chief said, according to a statement issued by the military’s media wing, Inter-Services Public Relations (ISPR).

This handout photo, taken and released by Pakistan’s Inter-Services Public Relations (ISPR), Pakistan Army Chief Field Marshal Asim Munir addressing a passing out parade at the Naval Academy in Karachi on June 28, 2025. (Handout/ISPR)

“The presence of cadets from Bahrain, Iraq, the State of Palestine, the Republic of Djibouti and the Republic of Türkiye in today’s commissioning parade is a reflection of the Academy’s high training standards,” he added.

Pakistan regularly trains cadets and officers from partner nations and sends its own officers abroad to institutions in countries such as the United States and the United Kingdom for advanced military education and joint training.

The ceremony was attended by senior officials from Pakistan and other countries, government representatives and families of the graduating cadets.

This handout photo, taken and released by Pakistan’s Inter-Services Public Relations (ISPR), shows graduating midshipmen during a passing out parade at the Naval Academy in Karachi on June 28, 2025. (Handout/ISPR)

In his remarks, the army chief also praised the Navy’s professionalism and its efforts as a regional maritime force committed to securing international sea lines of communication.

He also referenced the recent standoff with India, saying the country’s armed forces had “responded swiftly and decisively against a numerically superior enemy,” and were fully prepared to defend Pakistan’s sovereignty.