Chinese workers arrive in Pakistan to speed up CPEC projects slowed by coronavirus

Chinese engineers and workers arrive at Islamabad International Airport, Pakistan, to expedite work on several hydropower projects under the China-Pak Economic Corridor, on July 13, 2020. (China Gezhouba Group Company)
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Updated 25 July 2020
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Chinese workers arrive in Pakistan to speed up CPEC projects slowed by coronavirus

  • Majority Chinese workers left before Chinese New Year festival and were unable to return to Pakistan after the pandemic started
  • Pakistan and China have signed projects worth more than $12 billion since June 6 this year, including for two hydropower projects

ISLAMABAD/KARACHI: Around 215 Chinese engineers and other staff members have arrived in Pakistan from China this week to expedite work on several hydropower projects under the China-Pak Economic Corridor (CPEC), a spokesman for China Gezhouba Group Company, which is running the projects, said.

Pakistan’s federal government set up the CPEC Authority late last year to expedite work on over $60 billion worth of CPEC projects that have stalled since the government of Prime Minister Imran Khan came to power in 2018. Asim Saleem Bajwa, a retired military general, was appointed to head the body.
Since June 6, Pakistan and China have signed projects worth more than $12 billion, including for two hydropower projects in Pakistan-administered Kashmir, and the rehabilitation and upgrade of a 1,872 KM long colonial-era railway track at an estimated cost of $8.17 billion.




A view of tunnel work at CPEC Suki Kinari Hydropower Project. (Photo courtesy: China Gezhouba Group Company)

Travel restrictions to prevent the spread of the coronavirus, which has now killed more than half a million people, have idled much of the world’s second-largest economy, China, and choked key elements of its signature Belt and Road Initiative (BRI), of which CPEC is a flagship project.
But batches of Chinese staff are arriving in Pakistan once again to kickstart work on projects including the Suki-Kinari, Neelum Jhelum, and Dasu hydropower projects as well as the Mohmand Dam project.




In this undated photo, Chinese construction workers of China Gezhouba Group Company working at a CPEC project site in Pakistan. (Photo courtesy: China Gezhouba Group Company)

A third group of Chinese engineers and other staff members arrived in Islamabad from China’s Sichuan Province on July 13, a press release from state-owned China Gezhouba Group Company said.
“This is the third batch of Chinese CPEC workers returning to Pakistan through charter plane organized by China Gezhouba with assistance from Ministry of Foreign Affairs since the COVID-19 outbreak,” said Mustafa Kamal, spokesman of China Gezhouba Group Company, said. “Majority of the Chinese workers had left Pakistan before the outbreak for the Chinese New Year festival and were unable to return to Pakistan because of the spread of coronavirus that resulted in lockdowns and international flight suspensions.”




China Gezhouba Group Company take a group photo after arriving in Islamabad, Pakistan to restart work on CPEC projects July 13, 2020. (Photo courtesy: China Gezhouba Group Company)


The company is one of the largest publicly owned Chinese entities, executing a number of projects in Pakistan — including under the CPEC umbrella — worth around $9 billion in Pakistan.
The company spokesman said all staff had gone through a compulsory quarantine period of 14 days in China and were tested for coronavirus there. After arrival at Islamabad airport, they had been taken straight to isolation centers established on project sites where they will be quarantined for an additional 14 days.
Two groups of CPEC staffers had arrived in Pakistan earlier, Kamal said, and were safely deputed to work. He said the company roughly had 24,800 local employees and around 14,000 Chinese workers working on various CPEC projects.


Pakistan announces tax relief for salaried class in FY2025-26 budget

Updated 7 sec ago
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Pakistan announces tax relief for salaried class in FY2025-26 budget

  • Tax rate for low-income earners slashed from 5% to 1%
  • Rs17.57 trillion budget focuses on economic stabilization

ISLAMABAD: Pakistan announced significant income tax relief for low- and middle-income earners on Tuesday as it presented its federal budget for the fiscal year 2025-26, aiming to ease the burden on salaried individuals amid high inflation and economic uncertainty.

Pakistan’s tax-to-GDP ratio remains below 10%, among the lowest in the region. The government has pledged to raise this ratio to 14% through tax reforms, digital enforcement, and expanding the tax base.

Finance Minister Muhammad Aurangzeb, presenting his first full-year budget in the National Assembly, said the income tax rate for individuals earning between Rs600,000 and Rs1.2 million ($2,128–$4,255) annually would be cut from 5% to 1%.

“First of all, we are giving relief where it is needed the most,” Aurangzeb told parliament, adding that the measure was in line with Prime Minister Shehbaz Sharif’s directive to support wage earners and retain talent in the country.

The government has also proposed reducing the tax on annual income up to Rs1.2 million from Rs30,000 to Rs6,000, lowering the tax rate from 15% to 11% for those earning up to Rs2.2 million ($7,800) and cutting the rate from 25% to 23% for income between Rs2.2 million and Rs3.2 million ($11,350).

For high-income earners making over Rs10 million ($35,460) annually, a 1% reduction in the additional surcharge has been recommended to help curb the ongoing brain drain, the minister said.

Aurangzeb described the changes as part of broader efforts to simplify the tax structure and “strike a balance between inflationary pressures and take-home pay.”

The federal budget, with a total outlay of Rs17.57 trillion ($62 billion), comes as Pakistan seeks to stabilize its economy under a $7 billion International Monetary Fund (IMF) bailout program.

The budget also includes a 20% increase in defense spending, while total government expenditure is expected to be 7% lower year-on-year, reflecting fiscal consolidation goals tied to IMF negotiations.

The proposed budget will be debated in parliament before final approval.


Pakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion

Updated 52 min 59 sec ago
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Pakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion

  • Rs17.57 trillion ($62 billion) outlay represents overall decrease in spending by 7 percent
  • Total gross revenue of Rs19.28 trillion, total tax revenue of Rs14.1 trillion targeted

KARACHI: Pakistan on Tuesday announced its federal budget for fiscal year 2025-26 with a total outlay of Rs17.57 trillion ($62 billion), an overall decrease in spending by 7%, but hiked the defense expenditure by 20% following a recent military conflict with nuclear-armed neighbor India.

Finance minister Muhammad Aurangzeb presented a budget that allocated Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month.

“This budget is being presented at a very important and historic moment when the nation in recent days showed extraordinary unity, determination and strength,” Aurangzeb said, referring to the recent military confrontation with India, in which the militaries of the two nations exchanged drone, missile and artillery attacks, with a combined 70 people killed on both sides. 

Pie chart visualizing the breakdown of Pakistan’s Federal Budget 2025–26 (PKR 17.577 trillion) by major expenditure categories.(AN Photo)

“With this same national unity and determination, we should turn our focus to our economic strength, growth and welfare,” the finance minister said. 

“The spirit with which we protected and strengthened our national sovereignty, we need to ensure our financial security and the welfare of the people with the same unity and strength.”

The military clash between India and Pakistan was sparked by an April attack by assailants who targeted Hindu tourists in Indian Kashmir in April, killing 26 men. New Delhi blamed the attack on militants backed by Pakistan, a charge denied by Islamabad. The two sides used fighter jets, missiles, drones and artillery against each other before agreeing to a ceasefire on May 10 after four days of fighting, their worst in nearly three decades.

Here are some of the key highlights from the country’s 2025-26 budget:

GDP/DEFICIT
* GDP growth projected to be 4.2 percent
* Nominal GDP seen at 129.57 trillion rupees
* Fiscal deficit expected to be 3.9 percent of GDP
* Targets primary surplus of 2.4 percent of GDP

INFLATION
* Targets inflation at 7.5 percent

EXPENDITURE
* Total spending seen at 17.57 trillion rupees
* Defense expenditure of 2.55 trillion rupees targeted
* Interest payments projected at 8.21 trillion rupees

REVENUE
* Total gross revenue of 19.28 trillion rupees targeted
* Targets total tax revenue of 14.1 trillion rupees
* Aiming for net external receipts of 106 billion rupees 


($1 = 282.0000 Pakistani rupees) 


- With inputs from Reuters


Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza

Updated 10 June 2025
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Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza

  • Over 54,000 Palestinians have been killed since Israel launched its latest military offensive in Oct. 7, 2023
  • Pakistan has for decades called for establishment of independent Palestinian state based on pre-1967 borders

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Tuesday urged world powers to take immediate action to end Israel’s military offensive in Gaza, saying he hoped innocent Palestinians would achieve their dream of freedom soon.

Over 54,000 Palestinians have been killed and much of the coastal enclave of Gaza devastated since Israel’s latest air and ground offensive began in October 2023, health authorities in Gaza say. 

“The oppression, cruelty and barbarism taking place in Palestine and Kashmir — no matter how much we condemn it, it is not enough” Sharif said while addressing a federal cabinet meeting. 

“But I believe this is a very critical time for the global powers to effectively use their influence to ensure a ceasefire in Palestine, because what is happening there is the shedding of innocent Muslim blood — the blood of little girls, children and parents.”

The Pakistani PM added:

“I have strong hope in Allah Almighty, God willing, that the people of Palestine will gain freedom, the people of Kashmir will gain freedom. They have made tremendous sacrifices.”

Pakistan has been calling for a ceasefire and unimpeded humanitarian access to Gaza since the latest war broke out. 

Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.

Although nearly 150 countries have recognized Palestine statehood, most major Western powers including the United States, Britain, France, Germany and Japan, have not. 

Muslim countries that do not recognize Israel include Pakistan, Saudi Arabia, Iran, Iraq, Syria and Yemen.
 


Pakistan shares range bound amid uncertainty over budget announcement

Updated 10 June 2025
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Pakistan shares range bound amid uncertainty over budget announcement

  • Index recorded intraday high of 970 points and low of 51 points, eventually closing at 122,024, gaining 383 points or 0.32 percent
  • Pakistan will unveil annual federal budget, seeking to kickstart growth while finding resources for hike in defense expenditure 

ISLAMABAD: The Pakistan Stock Market witnessed a range-bound session today, Tuesday, with the index fluctuating within a narrow band amid uncertainty surrounding the budget announcement. 

Pakistan will unveil its annual federal budget for the coming fiscal year on Tuesday evening, seeking to kickstart growth while finding resources for an expected hike in defense expenditure following a military conflict with India last month, the worst between the nuclear-armed neighbors in decades. 

Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund program and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market.

“The index recorded an intraday high of 970 points and a low of 51 points, eventually closing at 122,024 — gaining 383 points or 0.32 percent,” brokerage house Topline Securities said in its daily market review. 

“Market participation remained healthy, with total traded volume reaching 591 million shares and a traded value of PKR 21 billion.”

Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7 percent from this fiscal year. It has projected a fiscal deficit of 4.8 percent of GDP, against a targeted 5.9 percent deficit in 2024-25, the reports say.

Analysts said they expect an increase of around 20 percent in the defense budget, likely offset by cuts in development spending.

Pakistan allocated 2.1 trillion Pakistani rupees($7.45 billion) for defense in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defense budget.

The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2 percent economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7 percent, against an initial target of 3.6 percent set in the budget last year.

Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8 percent and 6.0 percent growth is expected in 2025, according to the Asian Development Bank.

With inputs from Reuters


Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive

Updated 10 June 2025
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Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive

  • The drive against illegal foreigners was launched in November 2023 amid a surge in militancy
  • The country has repatriated a total of 1,102,441 illegal foreigners since the deportations began

ISLAMABAD: Pakistan has deported over 216,000 undocumented foreign nationals since April this year as part of a nationwide campaign targeting illegal migrants, mostly Afghan citizens, the country’s interior ministry said on Tuesday.

The repatriation drive, which began in November 2023, was launched in the wake of a spike in suicide bombings and militant activity that Pakistani officials linked to Afghan nationals, though no public evidence was provided to support the claim.

“Since April 1, 2025, a total of 216,103 illegal foreigners have been repatriated and the campaign is ongoing,” the ministry said in its statement.

“Since October 2023, a total of 1,102,441 illegal foreigners have been repatriated under the Illegal Foreigners Repatriation Program,” it added.

Initially, authorities had said the crackdown would focus on those lacking any legal documentation. However, in early 2025, the government expanded the scope to Afghan Citizen Card (ACC) holders, ordering them to leave by March 31 or face deportation starting April 1.

The interior ministry said food and health care arrangements had been made for those in the repatriation process, and that women, children and the elderly are being treated “with dignity and respect.”

It warned that anyone aiding undocumented foreigners with employment or accommodation would also face legal action.

Pakistan has hosted more than 2.8 million Afghan refugees over the past four decades due to prolonged conflict in Afghanistan.

The current deportation campaign has drawn criticism from human rights groups and the Afghan Taliban, who have accused Islamabad of harassment and called for the safe and dignified return of Afghan nationals.

The Pakistani government has denied these allegations, maintaining the repatriation process is being carried out respectfully and in accordance with the law.