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British energy giant seeks to acquire Shell Pakistan amid reports of Saudi interest

A Shell logo is pictured on a sign outside a Royal Dutch Shell petrol station in Gateshead, north east England on January 31, 2023. (AFP/File)
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Updated 17 October 2023
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British energy giant seeks to acquire Shell Pakistan amid reports of Saudi interest

  • Shell Petroleum announced its exit from Pakistan in June with sale of 77 percent shareholding in local business
  • Analysts say deal value, depending on assets involved, market, negotiation terms, would be in $200 million range
Updated 17 October 2023
KHURSHID AHMED   

KARACHI: As a British energy giant seeks to acquire stakes in Shell Pakistan (SPL) in a potential $200 million deal, financial experts said on Tuesday the entry of credible international players was important for Pakistan’s corporate ecosystem. 

Shell Petroleum Company announced its exit from Pakistan in June with the sale of its 77 percent shareholding in the local business. The move came after Shell made several announcements about its global operations and after Shell Pakistan (SPL) suffered losses in 2022 due to exchange rates, the devaluation of the Pakistani rupee, and overdue receivables, and as the country faces a financial crisis and economic slowdown.

The offloading of shares also includes all of SPL’s downstream businesses and SPL’s 26 percent ownership of Pak-Arab Pipeline Company Ltd. (PAPCO). Shell Pakistan is a listed company with market capitalization of over Rs34.35 billion ($124.5 million). 

Since the announcement, State-owned Pakistan Refinery Limited and Air Link Communication, a local firm, have both said they were seeking to buy stakes in Shell Pakistan. Interest by Saudi buyers has also been widely reported.

However, SPL announced in a stock filing on Monday that it had received “firm intention” from Prax Overseas Holdings Limited to acquire control or 165,700,304 (up to 77.42 percent) voting shares. The acquirer, the listing said, was also looking to secure an extra 11.29 percent or 24.16 million shares through a public offer. 

Britain’s Prax Overseas Holdings, an investment company, is part of the Prax Group, headquartered in London with interests in exploration and production, refining, logistics, and integrated supply and optimization. 

Pakisani analysts called the Prax interest in Shell Pakistan “an interesting development” that would have positive implications for Pakistan’s energy sector and the overall economy. 

“Having another foreign company invest in the country can bring in new capital, technology, and expertise, potentially boosting the energy sector’s efficiency and competitiveness,” Ali Nawaz, CEO of brokerage firm Chase Securities, told Arab News.

Nawaz estimated that a possible deal value, depending on various factors such as the assets involved, market conditions, and negotiation terms, would in the range of $170 million to $200 million.

The SPL has recently also received interest from Saudi companies including oil giant Aramco and Wafi Energy, a leading fuel station firm, according to SPL officials privy to the issue, who did not want to be named.

“The parent company, SPC, is directly dealing with potential buyers and will set the scheduled for due diligence of the company,” an SPL official, requesting anonymity, told Arab News on Monday. 

Financial experts said it was important for Pakistan’s “corporate ecosystem” that the buyer was a credible operator who had the ability to maintain standards set by Shell. 

“This is why the news about potential interest by Aramco gained so much public interest. There is optimism and expectations in Pakistan about the prospects of foreign investment from Saudi Arabia,” Ali Fareed Khwaja, chairman of KTrade, a Pakistan and UK based brokerage firm, told Arab News. 

“Consequently, I think that the market would react more positively for a Middle Eastern group buying Shell rather than a British holding company. There are also some fears that the multinationals are pulling out and would be replaced by local investors.”

However, Nawas said it was essential to consider any buyer’s track record in the industry, commitment to sustainable practices, and the potential benefits they can bring to the local economy. 

“When comparing [UK company] with Saudi interests, it becomes a matter of geopolitical and economic considerations,” Nawaz added.

“Both Prax and Saudi interests could bring unique advantages, and the choice might hinge on the alignment of the buyer’s vision with Pakistan’s long-term goals and interests.”

Topics: Shell Pakistan Pak-Arab Pipeline Company Ltd. fuel petrol

Rising Jhelum River threatens people in Azad Kashmir

Updated 13 sec ago
Reuters
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Rising Jhelum River threatens people in Azad Kashmir

  • The development comes after India’s suspension of the Indus Waters Treaty, cutting off vital flood data
  • Locals face growing uncertainty and increased risk, say they received no prior notification of water release
Updated 13 sec ago
Reuters

MUZAFFARABAD, Azad Kashmir: Rising water levels along the Jhelum River in Muzaffarabad in Azad Kashmir have caused concern for thousands of residents living downstream.
With India releasing more water than usual into the river and the suspension of the Indus Waters Treaty cutting off vital flood data, locals face growing uncertainty and increased risk.
Along the riverbank, 72-year-old Rafiq Hussain and his family of six have been watching floodwaters creep within meters of their home.
“When India released the water, the river rose by eight to ten feet. There’s a lot of fear and uncertainty, especially after hearing reports that more water could be released without any warning,” he said.
Hussain, a farmer and father of four, said they received no prior notification of the water release. He estimates that over ten thousand people residing in about one thousand homes along the riverbank are directly exposed to the flood risk.
The 1960 Indus Waters Treaty, once a rare symbol of cooperation, is now in question. India claims sovereignty over water use, while Pakistan warns of weaponization of a shared resource.
“Well there are bilateral agreements between India and Pakistan, but this Indus Waters Treaty is trilateral. It’s not between only India and Pakistan, but the World Bank is there. And as far as the articles of that agreement is concerned, that no one, either India or Pakistan, can walk away from this. They have to agree mutually if they want to scrap this agreement,” said Raja Muhammad Farooq Haider Khan, former prime minister of Azad Kashmir, a region administered by Pakistan as a nominally self-governing entity in the western portion of the larger, disputed Kashmir region.
For families like Hussain’s, this is no longer just about diplomacy — it’s about survival.
“I cross the river to fish and sell it locally, just enough to get by. Last week, I set my nets, but two days later, a sudden ten-foot surge of water hit. By the time I returned, the nets were gone. I suffered heavy losses,” said Hameed Hussain, Rafiq’s son.
Tensions between India and Pakistan in Kashmir have increased since an attack last week on tourists in Indian-controlled Kashmir that killed at least 26 people, mostly Indian visitors to the region. India has blamed Pakistan for supporting the attack, a charge which Pakistan vigorously denies.

Topics: Kashmir Indus Waters Treaty

Pakistani official takes notice of Arab News story, promises treatment of paralyzed teen separated from Indian mother

Updated 4 min 19 sec ago
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Pakistani official takes notice of Arab News story, promises treatment of paralyzed teen separated from Indian mother

  • Muhammad Ayan, paralyzed after a spine injury in 2023, was under treatment at New Delhi’s Apollo Hospital, when he and his family were forced to leave India
  • The development came after Pakistan, India asked each other’s nationals to leave following a deadly attack in Indian-administered Kashmir that killed 26 tourists
Updated 4 min 19 sec ago
NAIMAT KHAN

KARACHI: Kamran Tessori, the governor of Pakistan’s southern Sindh province, has taken notice of an ailing Pakistani teenager who was separated from his Indian mother as tensions rose between the two neighboring countries, Tessori’s office said on Thursday, after Arab News published a story about the 17-year-old.
Relations between the nuclear-armed neighbors have plummeted after India accused Pakistan of backing an attack on tourists in Indian-administered Kashmir’s Pahalgam that killed 26 people on April 22. Islamabad has rejected the charge. Both countries have since exchanged gunfire in Kashmir, taken diplomatic measures against each other, expelled citizens and ordered the border shut, leaving many in limbo.
Muhammad Ayan, paralyzed after he suffered a gunshot wound to his spine during a gunfight between police and street criminals in Karachi in 2023, was under treatment at New Delhi’s Apollo Hospital, when he and his family were forced to leave India, following the Kashmir attack. Ayan’s mother, Nabeela, who is an Indian national, could not travel with them.
Arab News this week published a story on the 17-year-old teenager who had to return to the southern Pakistani city of Karachi along with his father, Muhammad Imran, and siblings after being separated from his mother, prompting Governor Tessori to take notice of Ayan’s tragedy.


“I will pay all the expenses of the treatment of the disabled child,” Tessori was quoted as saying by his office.
Ayan narrated to Arab News how he got separated from his mother amid tears and sobs.
“She was separated from us while crying and we also came here with great difficulty, crying,” an emotional Ayan said.
Ayan’s father, Imran, had married his maternal cousin, Nabeela, a resident of New Delhi, 18 years ago. Since then, Nabeela had been living in Pakistan on a visa that was intermittently renewed without her ever needing to acquire Pakistan’s nationality.
But the suspension of visas meant Imran and his Pakistani children’s 45-day medical visa was no longer valid. And Nabeela was eventually left behind in India.
The April 22 assault occurred as tourists enjoyed tranquil mountain views at the popular site of Pahalgam in Indian-administered Kashmir, when gunmen burst out of forests and raked crowds with automatic weapons.
Kashmir has been divided between India and Pakistan since their independence in 1947, with both claiming the territory in full but governing separate portions of it. Both countries have two of their three wars over the disputed territory.
Separatist groups have waged an insurgency in Indian-controlled Kashmir since 1989, demanding independence or a merger with Pakistan. New Delhi accuses Pakistan of backing the militants, Islamabad denies it and says it only supports Kashmiris diplomatically and politically.
Imran said he went to India after spending “every single rupee” with the hope that his son would walk again. However, bilateral tensions between India and Pakistan, and the ensuing atmosphere in India made his family “very scared.”
“I told them, ‘I am married [to her],’ I pleaded with them, cried, and showed a lot of humility,” Imran said about his interaction with Indian authorities.
“But they said, ‘No, write an exit and leave.’“
For Ayan, the shock of being separated from his mother compounded the trauma of his paralysis and incomplete treatment.
“I went for treatment with a hope but that hope shattered because of that accident and then the fact that my mother was not coming with us,” he said.
“I was completely separated from a mother’s love. We were far apart; it made me cry.”
In his statement, Governor Tessori said Pakistanis are a proud nation and know how to share each other’s pain.
“If India has descended into hostility toward humanity, I will get him treated,” he said.

Topics: Pahalgam attack India Pakistan Ties

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PM says no ‘conceivable advantage’ for Pakistan in Indian-administered Kashmir attack

Updated 12 min 6 sec ago
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PM says no ‘conceivable advantage’ for Pakistan in Indian-administered Kashmir attack

  • Public anger has swelled in India since the attack and PM Narendra Modi has vowed to pursue the attackers ‘to the ends of the earth’
  • The Pakistani information minister says New Delhi has offered no evidence of Pakistan’s involvement in the attack that killed 26 people
Updated 12 min 6 sec ago
KASHIF IMRAN

ISLAMABAD: Pakistan would gain no “conceivable advantage” by involving itself in an incident like the Pahalgam attack in Indian-administered Kashmir at a time when it is on the path to economic stability, Prime Minister Shehbaz Sharif said on Thursday, amid heightened tensions between Islamabad and New Delhi over the attack that killed 26 people on April 22.
India has accused Pakistan of backing the attack, which Islamabad denies. The nuclear-armed rivals have since expelled each other’s diplomats and citizens, ordered the border shut and closed their airspace to each other. New Delhi has also suspended a crucial water-sharing treaty with Islamabad.
Soldiers on each side have also exchanged fire along their de facto border, driving tensions between India and Pakistan to their highest point in recent years. The situation prompted US Secretary of State Marco Rubio to call senior officials in India and Pakistan this week in an effort to defuse the crisis.


The tensions come at a time when Pakistan is treading a long, tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default on its foreign debt obligations in 2023. Islamabad has reached out countries in Central Asia and beyond to boost trade as economic indicators significantly improved in the South Asian country.
“Pakistan condemned terrorism in all its forms and manifestations, and underscored the nation’s sacrifices in the war against terror,” PM Sharif said in his conversation with Qatar’s emir Sheikh Tamim bin Hamad Al-Thani, underscoring his nation’s hard-earned economic gains over the past year.
“Pakistan would gain no conceivable advantage by involving itself in any such incident at a time when it was on the path to economic stability.”
Sharif reiterated his call for a credible, transparent and neutral international investigation into the Pahalgam attack, expressing concerns over India’s “weaponization of the waters of the Indus Basin.”
India on April 23 suspended the World Bank-mediated Indus Waters Treaty of 1960 that ensures water for 80 percent of Pakistani farms, saying it would last until “Pakistan credibly and irrevocably abjures its support for cross-border terrorism.” Islamabad has described India’s move as an “act of war.”
In his conversation with the Pakistan premier, the Qatari emir his country wanted to work with Pakistan toward ensuring the de-escalation of the current crisis.
Public anger has swelled in India and Prime Minister Narendra Modi has vowed to pursue the attackers “to the ends of the earth.” A Pakistani minister has said that Pakistan has “credible intelligence” that India is planning to attack it within days.
Pakistan Information Minister Attaullah Tarar told CNN on Thursday that India had failed to provide a shred of proof of Pakistan’s involvement in the Pahalgam incident.
“India, after Pahalgam incident, blamed Pakistan without any evidence, but Pakistan has offered a fair and transparent investigation to the matter,” he said, adding that New Delhi had used such incidents as pretexts to attack Pakistan in the past.
“This is not the first time, they have done this before in the past, exploiting such incidents to their advantage.”
On Thursday, Pakistan’s army chief, Gen. Asim Munir, reviewed a military training exercise by the armed forces in the eastern Punjab province, the military said.
It said in a statement that the “exercise was meticulously designed to validate combat readiness, battlefield synergy, and the operational integration of cutting-edge weapon systems under near-battlefield conditions.”
“Let there be no ambiguity: any military misadventure by India will be met with a swift, resolute, and notch-up response,” the statement quoted Munir as saying. “While Pakistan remains committed to regional peace, our preparedness and resolve to safeguard national interests is absolute.”
The Indian army in a statement on Thursday said it responded to “unprovoked” small arms fire from Pakistan in the Kupwara, Uri and Akhnoor sectors of Indian-controlled Kashmir. The previous day, Pakistan’s state-run media said Indian forces had violated the ceasefire agreement along the de facto border in Kashmir by initiating fire with heavy weapons on troops in the Mandal sector of Azad Kashmir. The incidents could not be independently verified.
The region of Kashmir is split between India and Pakistan and claimed by both in its entirety. The two countries have fought two wars and one limited conflict over the Himalayan territory.
The United Nations (UN) has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, this week repeated its call on both sides to “exercise restraint.” Saudi Arabia has said Riyadh was trying to “prevent an escalation,” while Iran has offered to mediate the crisis.

Topics: Azad Jammu and Kashmir

Pakistan saw ‘sharp’ 22 percent decline in militant attacks in April, says think tank 

Updated 02 May 2025
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Pakistan saw ‘sharp’ 22 percent decline in militant attacks in April, says think tank 

  • Pakistan’s security forces have been battling twin insurgencies in Khyber Pakhtunkhwa, Balochistan provinces
  • April also marked the lowest monthly death toll among security forces since June 2024, says think tank’s report
Updated 02 May 2025
NAIMAT KHAN

KARACHI: Pakistan witnessed a sharp decline in militant attacks during April, an Islamabad-based think tank said in its report this week, saying that they dropped by a whopping 22 percent compared to the previous month, March. 

The Pakistan Institute for Conflict and Security Studies (PICSS), an Islamabad-based think tank, said in its monthly report that both militant attacks and resultant casualties dropped sharply compared to March. 

Pakistan’s security forces have been battling twin insurgencies in its northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. In KP, the Pakistani Taliban frequently carry out some of the deadliest attacks against security forces while in Balochistan, Pakistani troops are battling ethnic Baloch separatists seeking independence from the state.

“The number of militant attacks fell by 22 percent— from 105 in March to 82 in April— while fatalities and injuries declined by 63 percent and 49 percent, respectively,” the PICSS said in its press release on Thursday. 

The report said Pakistani security forces killed 203 militants in various operations throughout the month. Militants formed an overwhelming majority (73 percent) of the total fatalities in April, while only four casualties were reported. Of these, two were civilians and two were security personnel, it added. 

“A total of 287 people were killed in April due to militant violence and security operations, down from 335 in March,” the think tank said. 

The report said April also marked the lowest monthly death toll among security forces since June 2024, noting that civilian deaths also dropped significantly last month. 

“PICSS attributed these improvements to proactive intelligence-led operations and enhanced border vigilance,” it said. 

The report said the most “consequential development” of the month was a two-phase military operation near the Pakistan-Afghanistan border that targeted a large group of infiltrating Pakistani Taliban militants. 

“At least 71 militants were killed— making it the biggest loss suffered by the group in a single operation to date,” the report said. 

The think tank also noted the resurgence of attacks on local peace committee members in tribal districts who have historically resisted militant infiltrations.

“The resurgence of attacks on these volunteers, particularly in the tribal districts, suggests that groups like the TTP [Tehreek-e-Taliban Pakistan] are attempting to reassert dominance by silencing local resistance structures,” it said. 

The report said mainland KP recorded 37 militant attacks in April, marginally down from 42 in March while tribal districts reported 17 attacks last month, slightly down from 18 in March. Balochistan witnessed 21 militant attacks in April, compared to 35 in March while Punjab reported three and Sindh four attacks in April. 

It said Pakistan’s capital Islamabad remained peaceful in April, with no militant attacks reported for the second consecutive month. 

Topics: Militant attacks

Pakistan army chief vows ‘swift, resolute’ response to any military action by India

Updated 01 May 2025
Shahjahan Khurram  
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Pakistan army chief vows ‘swift, resolute’ response to any military action by India

  • General Syed Asim Munir witnesses Pakistan army’s high-intensity field training exercise drill near Jhelum
  • Tensions surged after India blamed Pakistan for Apr. 22 attack on tourist resort in Indian-administered Kashmir
Updated 01 May 2025
Shahjahan Khurram  

ISLAMABAD: Pakistan Army Chief General Syed Asim Munir on Thursday vowed that any military misadventure by India would be met with a “swift, resolute” response amid surging tensions between the nuclear-armed neighbors.
These remarks came from Munir while he visited the Tilla Field Firing Ranges (TFFR) near the eastern city of Jhelum to witness “Exercise Hammer Strike,” a high-intensity field training exercise conducted by Pakistan Army’s Mangla Strike Corps. The army continued to hold war exercises on Thursday in a bid to demonstrate its military might to its neighbor. 
Pakistan has vowed to give a befitting and “strong” response to any military action by India as tensions surged after New Delhi blamed Islamabad for being involved in an attack on Indian-administered Kashmir on Apr. 22.
Islamabad has denied involvement in the attack, which killed 26 people and prompted both countries to take several hostile measures against each other. These included India suspending a decades-old water-sharing treaty, suspending visas for Pakistani nationals and declaring its military advisers “persona non grata.” Pakistan responded with tit-for-tat measures. 
“Let there be no ambiguity: any military misadventure by India will be met with a swift, resolute, and notch-up response,” Munir was quoted as saying by Pakistan military’s media wing. “While Pakistan remains committed to regional peace, our preparedness and resolve to safeguard national interests is absolute.”

This handout photo, taken and released by the Inter-Services Public Relations (ISPR) on May 1, 2025, shows Pakistan’s Army Chief General Asim Munir speaking during the “Exercise Hammer Strike,” a high-intensity field training exercise conducted by Pakistan Army, at the Tilla Field Firing Ranges (TFFR) in Jhelum, Punjab. (Handout/ISPR)

Munir lauded the high morale, combat proficiency and warfighting spirit of Pakistan’s officers and troops at the firing ranges, terming them the “embodiment of Pakistan Army’s operational excellence.”
The military said that the exercise was designed to validate combat readiness, battlefield synergy and operational integration of cutting-edge weapon systems under near-battlefield conditions. 
“A diverse array of advanced capabilities, including multirole fighter aircraft, combat aviation assets, long-range precision artillery and next-generation field engineering techniques were employed to simulate conventional battlefield scenarios,” it said. 
RUBIO CALLS FOR DE-ESCALATION
Separately, US Secretary of State spoke to Prime Minister Shehbaz Sharif on Wednesday to discuss the regional situation. As per the US State Department, Rubio urged Islamabad to cooperate in the attack’s investigation and de-escalate the situation. 
“The Secretary urged Pakistani officials’ cooperation in investigating this unconscionable attack,” the State Department said. “He also encouraged Pakistan to work with India to de-escalate tensions, re-establish direct communications, and maintain peace and security in South Asia.”


According to Sharif’s office, the Pakistani premier asked Washington to impress upon India to “act responsibly” and “dial down the rhetoric.”
“He [Sharif] categorically rejected Indian attempts to link Pakistan to the incident and pointed to his call for a transparent, credible, and neutral investigation to bring out the facts,” the PMO said. 
Rubio also spoke to India’s External Affairs Minister Subrahmanyam Jaishankar on Wednesday, expressing sorrow for the loss of lives in the Apr. 22 attack. He also encouraged India to work with Pakistan to de-escalate tensions and maintain peace and security in South Asia, the State Department said.

Topics: ISPR Pakistan India Pakistan India Ties

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