ISLAMABAD: Pakistan’s top economic body on Monday approved various proposals for the upcoming budget with regard to the inclusion of China-Pakistan Economic Corridor (CPEC) and foreign investment projects in the development plan, Pakistan Prime Minister’s Office said.
The statement came after a meeting of the National Economic Council (NEC) in Islamabad, which was presided over by Prime Minister Shehbaz Sharif. The forum reviewed development budget of fiscal year 2023-24 and was briefed on proposals for development plans in fiscal year 2024-25, starting July 1.
Pakistan’s coalition government is expected to lay out ambitious fiscal targets for the fiscal year 2024-2025 (July-June) budget on Wednesday that would help strengthen its case for a new bailout deal with the International Monetary Fund (IMF).
“The council was told that CPEC projects, international investment projects, and ongoing projects close to completion will be given priority in the upcoming development budget,” PM Sharif’s office said in a statement.
“Apart from this, sustainable development goals (SDGs) will be included in the development budget and backward areas will be prioritized in the development budget. The Council approved the said measures.”
Beijing is investing over $65 billion in energy and infrastructure projects in Pakistan as part of CPEC, a major segment of Beijing’s Belt and Road infrastructure initiative, which will connect China to the Arabian Sea and help Islamabad expand and modernize its economy through a network of roads, railways, pipelines and ports in Pakistan.
Along with talks with the IMF to support the dwindling $350 billion economy, Islamabad has also been making ambitious efforts to boost foreign direct investment in the country and has seen a flurry of high-level exchanges with Saudi Arabia, Japan, Azerbaijan, Qatar and other countries in recent months.
Speaking at the meeting, PM Sharif said his government would ensure best utilization of available resources for the economic revival, welfare of the masses and development of the country.
“The federation will ensure consultation with provinces and stakeholders so that decisions are made through collective wisdom and consensus for economic revival of the country,” he said.
The council was also given a detailed briefing on the 13th five-year development plan and informed that the scheme included development of all regions, especially backward areas, increase in exports, promotion of small and medium-scale industries, social security and poverty alleviation, increase in efficiency of workforce, progress in knowledge economy and a strategy to mitigate adverse effects of climate change.
Pakistan is in talks with the IMF for a loan estimated to be anything between $6 billion to $8 billion to avert a default for an economy that is growing at the slowest pace in the region.
While its fiscal and external deficits have been brought under control, it came at the expense of a sharp drop in growth and industrial activity as well as high inflation, which averaged close to 30 percent in the last financial year and 24.52 percent over the last 11 months.
The growth target for the upcoming year is expected to be higher at 3.6 percent compared to 2 percent this year and economic contraction last year.
Pakistan economic body approves proposals for CPEC, investment projects in development budget
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Pakistan economic body approves proposals for CPEC, investment projects in development budget

- Pakistan is expected to lay out ambitious fiscal targets for the fiscal year 2024-2025 budget on Wednesday
- The government aims to strengthen its case through the upcoming budget for a new bailout deal with the IMF
IT ministry says Microsoft shifting to partner-led delivery model, not retreating from Pakistan

- The statement follows reports about the closure of Microsoft’s office and lay-off of its employees in Pakistan
- Islamabad to engage with tech giant to ensure any structural changes strengthen its commitment to local customers
ISLAMABAD: Pakistan’s information technology (IT) ministry said on Saturday that global tech giant Microsoft was not retreating from the Pakistani market and was only moving to a partner-led, cloud-based delivery model in the South Asian country.
The statement followed media reports about the closure of Microsoft’s office and lay-off of a small number of employees in Pakistan, sparked by a LinkedIn post by a former head of Microsoft in the country.
The Pakistani IT ministry said the tech giant had shifted its licensing and commercial-contract management for Pakistan to its European hub in Ireland in recent years, while its day-to-day service delivery had been handled entirely by certified local partners.
“Against that backdrop, we understand Microsoft is now reviewing the future of its liaison office in Pakistan as part of a wider workforce-optimization program,” the IT ministry said in a statement.
“This would reflect a long-signalled strategy, consolidating direct headcount and moving toward a partner-led, cloud-based delivery model, rather than a retreat from the Pakistani market.”
Pakistan’s IT sector has witnessed a significant growth in recent years, reaching $3.4 million from July 2024 till May 2025, compared to $2.9 million during the same period the previous year, according to the Pakistani central bank.
Prime Minister Shehbaz Sharif’s government has been striving to further increase these exports to support the $350 billion economy, and the IT ministry sought to allay concerns about the clousure of the Microsoft office.
It said the global pivot from on-premise software (transactional deals) to Software-as-a-Service (SaaS) continues to reshape how technology firms structure their international operations, and Microsoft is no exception.
“Pakistan’s Ministry of IT & Telecom recognizes the strategic value of having leading global technology providers active in the country,” the ministry said.
“We will continue to engage Microsoft’s regional and global leadership to ensure that any structural changes strengthen, rather than diminish, Microsoft’s long term commitment to Pakistani customers, developers and channel partners.”
Met Office issues GLOF alert for northern Pakistan amid rising temperatures

- Hot and humid weather prevailed over most parts of Pakistan in the last 24 hours
- Monsoon rains and glacier melt caused deadly floods in 2022, affecting 33 million
ISLAMABAD: The Pakistan Meteorological Department (PMD) on Friday issued an alert regarding possible Glacial Lake Outburst Floods (GLOFs) in Pakistan’s northern areas, amid rising temperatures in the country.
Hot and humid weather prevailed over most parts of Pakistan and isolated falls of rain were recorded in Punjab, Azad Kashmir, Khyber Pakhtunkhwa, Balochistan and Sindh in the last 24 hours.
Nokkundi in Balochistan recorded the highest temperature on Friday 47°C, followed by 46°C in Bunji in Gilgit-Baltistan, and 45 in Dalbandin, Sibbi and Jacobabad, according to the PMD.
“Due to a significant rise in temperatures and upcoming system in northern Pakistan, the risk of Glacial Lake Outburst Floods (GLOFs) is very likely to increase in glaciated areas of Gilgit-Baltistan and Khyber Pakhtunkhwa,” it said.
“The persistent high temperatures may accelerate snow and glacier melt and subsequent weather events, potentially triggering GLOF and flash floods incidents, in vulnerable valleys and surrounding regions.”
The development comes as Pakistan braces for an extreme monsoon season that usually lasts till mid-September, with over 60 people killed in rains and floods in a little more than a week.
“All concerned are advised to remain alert and take necessary measures to avoid any untoward situation,” the PMD said in its alert.
Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change.
In 2022, record-breaking monsoon rains and glacier melt caused catastrophic floods that affected 33 million people, killed more than 1,700 and caused over $30 billion in financial losses.
Death toll from Pakistan building collapse rises to 16

- Friday’s incident was the latest in a string of deadly building collapses in Karachi
- It laid bare the issue of unsafe housing in the city, home to over 20 million people
KARACHI: The death toll from a five-storey building collapse in the southern Pakistani city of Karachi rose to 16 on Saturday, officials said, after rescuers pulled more bodies from the rubble.
The Fotan Mansion residential building, where several families were said to be living, crumbled shortly around 10am on Friday in the impoverished Lyari neighbourhood of the city.
Rescue workers, along with residents of the area, continued their operation to find survivors and bodies through the night, once again laying bare the issue of unsafe housing in Karachi.
“So far, we have received 16 bodies at the medico-legal section, including those of 12- and 13-year-old children,” Dr Summayia Syed, the Karachi police surgeon, told Arab News.
Karachi Mayor Murtaza Wahab said the rescue operation was still ongoing at the site of the collapse.
Many of the occupants were members of the low-income Hindu minority community and residents estimated that around 40 people were inside when the building collapsed.
According to the Sindh Building Control Authority (SBCA), Fotan Mansion had been declared unsafe three years ago.
“This building was declared dangerous by the SBCA in 2022 and had been served multiple notices over the years,” SBCA spokesperson Shakeel Dogar told Arab News. “Before the recent rains, public announcements were also made in the area, but unfortunately, no one was willing to vacate.”
Friday’s incident is the latest in a string of deadly building collapses in Karachi.
In February 2020, a five-storey building collapsed in Rizvia Society, killing at least 27 people. The following month, another residential structure came down in Gulbahar, claiming 16 lives. In June 2021, a three-storey building in Malir collapsed, killing four. And just last year, in August, a building collapse in Korangi led to at least three deaths.
Mayor Wahab said on Friday evening that rescue efforts remained their top priority, with accountability and investigation to follow.
“Once we’re done with the rescue aspect, we will focus on who was responsible for this negligence or omission,” he added.
Pakistan seeks Saudi investment in agri-infrastructure, eyes long-term food security

- Pakistan proposes joint work on desert agriculture, seed development and water efficiency
- It highlights commitment to climate-adaptive agriculture amid environmental degradation
KARACHI: Pakistan on Friday urged Saudi Arabia to invest in agricultural research and storage infrastructure as part of a broader push for sustainable food security, according to an official statement.
The call was made during a meeting between Federal Minister for National Food Security Rana Tanveer Hussain and Saudi Ambassador Nawaf bin Said Al-Malki in Islamabad, following the launch ceremony of the third phase of the Saudi Food Security Support Project in Pakistan.
“Rana Tanveer Hussain shared Pakistan’s long-term vision for achieving sustainable food security through investment in agricultural research, innovation and modernized farming systems,” said the statement circulated after the meeting.
“The Minister proposed deeper collaboration between Pakistan and Saudi Arabia in key areas such as joint agricultural research, technological exchange and investment in food processing and storage infrastructure,” it added.
Hussain also highlighted Pakistan’s commitment to improving irrigation practices and promoting climate-adaptive agriculture to address the growing challenges posed by environmental degradation.
He invited Saudi investors to explore opportunities in agri-based projects, particularly in high-yield zones, and called for institutional cooperation between universities and research centers in both countries.
The minister also proposed joint work on desert agriculture, seed development and water efficiency, describing them as high-impact areas for regional collaboration.
Earlier, he distributed food baskets to families under the Saudi Food Security Support Project and interacted with recipients.
Now in its third phase, the Saudi-backed initiative is delivering essential food supplies to thousands of households across Pakistan, providing much-needed relief amid climate-related challenges.
Azerbaijan signs $2 billion investment agreements with Pakistan on sidelines of ECO summit

- Development came after sustained engagement between Pakistani and Azerbaijani officials recently
- PM Shehbaz Sharif also held separate meetings with the presidents of Turkiye, Iran and Uzbekistan
ISLAMABAD: Azerbaijan signed investment agreements worth $2 billion with Pakistan on Friday to boost economic cooperation, said an official statement released in Islamabad, in a major development during Prime Minister Shehbaz Sharif’s visit to the Central Asian state for the Economic Cooperation Organization (ECO) summit.
The two-day summit, hosted in Khankendi, Azerbaijan, focused on a sustainable and climate-resilient future for the region.
In his address, Sharif warned that climate change posed an existential threat to ECO member states, highlighting the impact of melting glaciers, floods, desertification and declining crop yields. He also emphasized more trade, tourism and regional integration to enhance economic prosperity.
“In the presence of Prime Minister Muhammad Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar and Azerbaijan’s Minister of Economy Mikayil Jabbarov signed agreements for $2 billion of investment in Pakistan’s economic sector from Azerbaijan,” the PM Office announced in a statement.
The agreements were signed following a bilateral meeting between Sharif and Azerbaijani President Ilham Aliyev, with officials hoping for a more detailed agreement during Aliyev’s upcoming visit to Pakistan.
“The agreement has elevated investment and trade relations between the two countries to a historic level and will serve as a guarantee for further strengthening their brotherly ties and commercial partnership,” the official Pakistani statement added.
It also described the development as a result of sustained engagement between Pakistani ministries and diplomats and their Azerbaijani counterparts over recent months.
SIDELINE DIPLOMACY
On the sidelines of the summit, Sharif held separate meetings with the presidents of Turkiye, Iran and Uzbekistan, reaffirming Pakistan’s commitment to regional cooperation, peace and connectivity.
In his meeting with Turkish President Recep Tayyip Erdoğan, both leaders reviewed the full spectrum of bilateral relations and vowed to accelerate progress in critical areas.
“The two leaders reiterated their resolve to bring about meaningful progress in relations... [emphasizing] the importance of deepening cooperation in trade, defense, energy, connectivity and investment,” said a separate handout by the PM Office.
To advance this agenda, both sides agreed to exchange high-level delegations to finalize understandings reached between the sides.
In another key engagement, the Pakistani prime minister met Iranian President Dr. Masoud Pezeshkian, with both sides reviewing the implementation of previous agreements to strengthen bilateral ties.
Sharif praised Iran’s leadership during the recent conflict with Israel and welcomed Tehran’s decision to agree to a ceasefire.
“The Prime Minister reaffirmed Pakistan’s unwavering solidarity with the people and Government of Iran and Pakistan’s strong commitment to continue working closely with Iran for peace in the region through dialogue and diplomacy,” the statement said.
In his meeting with Uzbek President Shavkat Mirziyoyev, Sharif focused on regional integration, energy cooperation, and the Trans-Afghan Railway Project, which is seen as vital for unlocking trade corridors between Central and South Asia.
“The two leaders agreed on visits of their senior ministers to Tashkent and Islamabad to finalize necessary agreements,” the PMO said, adding that both sides viewed their cultural and historical ties as a strong foundation for broader collaboration.