ISLAMABAD: Prime Minister Shehbaz Sharif on Friday invited American banks to invest in Pakistan’s infrastructure, energy, technology and agriculture sectors as the South Asian country seeks sustainable forms of external financing like direct investment.
On Friday, the IMF said Pakistan had received “significant financing assurances” from China, Saudi Arabia and the United Arab Emirates linked to a new International Monetary Fund program that go beyond a deal to roll over $12 billion in bilateral loans owed to them by Islamabad.
The IMF’s Executive Board on Wednesday approved the new $7 billion, 37-month loan agreement for Pakistan that will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”
The approval releases an immediate $1 billion disbursement to Islamabad.
On Friday, Sharif met a delegation of officials from top American banks in New York, including JP Morgan, Natixis Corporate & Investment Bank, Sumitomo Mitsui Banking Corporation, Goldman Sachs, Citizens Bank, Lazard and Audax Private Equity Partnering.
“The Prime Minister assured the delegation of the government’s commitment to maintaining a stable macroeconomic environment to facilitate foreign investors,” state broadcaster Radio Pakistan said in a report after the meeting.
“The Prime Minister informed the delegation about the key initiatives taken by the Government to stabilize the economy and attract foreign investment to Pakistan, including broadening the tax base, enhancing the ease of doing business, and ongoing reforms in the state-owned enterprises.”
These steps had resulted in improved economic indicators and the up-gradation of Pakistan’s credit rating by international rating agencies, including, Fitch and Moodys.
“He also briefed the delegation on the establishment of a Sustainable Finance Framework, which will allow the government to carry out a green and sustainability bond issuance in the international capital markets,” Radio Pakistan reported.
Islamabad had been working on implementing the IMF’s conditions, which Sharif had previously called “strict” to secure the 37-month loan program agreed in July.
One condition was to secure additional external financing, which the country was struggling to do.
The IMF said in a statement on Wednesday that Pakistan had taken key steps to restore economic stability with consistent policy implementation under the 2023-24 standby arrangement.
It added that growth had rebounded to 2.4 percent and inflation has receded significantly, falling to single digits, amid appropriately tight fiscal and monetary policies.
A contained current account and calm foreign exchange market conditions have allowed the rebuilding of reserve buffers, and the central bank of Pakistan has been able to cut the policy rate by a total of 450 bps since June, the statement said.
Despite this progress, it said, Pakistan’s vulnerabilities and structural challenges remain formidable, adding that the tax base remains too narrow.
“Without a concerted adjustment and reform effort, Pakistan risks falling further behind its peers,” it warned.
With inputs from Reuters
Pakistan invites investment from American banks as it seeks sustainable external financing
https://arab.news/j9zuc
Pakistan invites investment from American banks as it seeks sustainable external financing
- On Friday, Sharif met officials of top American banks including JP Morgan, Natixis Corporate & Investment Bank, Goldman Sachs
- IMF bailout loan is contingent on “continued strong financial support from Pakistan’s development and bilateral partners”
Pakistan’s envoy to UAE says Islamabad pursuing progressive agenda to drive economic growth
- Ambassador Faisal Niaz Tirmizi hosted a gathering in Abu Dhabi to mark his country’s national day
- He called for an end to hostilities in Gaza and demanded peaceful resolution of the Palestine dispute
ISLAMABAD: Pakistan’s envoy to the United Arab Emirates (UAE) on Tuesday said the administration in Islamabad was following an agenda to ensure economic progress, as he hosted a reception to mark his country’s national day.
Pakistan annually commemorates its national day on March 23, marking the anniversary of the 1940 Lahore Resolution that called for a separate homeland for the Muslims of the Indian Subcontinent.
Ambassador Faisal Niaz Tirmizi highlighted the Pakistani government’s socio-economic initiatives during the event in Abu Dhabi, which was attended by diplomats and senior Emirati officials, including Sheikh Nahayan bin Mabarak Al Nahyan, the UAE’s Minister of Tolerance and Coexistence.
“[Ambassador Tirmizi] invited attention toward a range of opportunities in Pakistan that remained pivotal in promoting socio-economic development in [his] country,” said an official statement issued by the Pakistan Embassy in Abu Dhabi following the event.
“These included a healthy youth bulge; growing women participation in public life; the potential of agriculture; rich socio-cultural heritage; tourism potential; and the fastest-growing IT sector,” the statement added. “He underscored that the government was pursuing a progressive agenda aimed at making tangible progress toward achieving economic growth and Sustainable Development Goals.”
In his address, the Pakistani envoy also called for an immediate end to hostilities in Gaza and reiterated Islamabad’s support for the peaceful resolution of the Palestine and Kashmir disputes in accordance with United Nations Security Council resolutions.
The ambassador acknowledged the UAE’s impressive economic transformation over the past five decades and paid tribute to the leadership of the late Sheikh Zayed bin Sultan Al Nahyan, whose vision, he said, was being proudly carried forward by President Sheikh Mohammed bin Zayed Al Nahyan.
Tirmizi also praised the growing political and economic partnership between Pakistan and the UAE while highlighting regular high-level exchanges and institutional cooperation between them along with the presence of a 1.7 million-strong Pakistani diaspora in the Gulf state.
Pakistan’s national flag carrier posts first profit in 21 years amid privatization push
- PIA posted an operational profit of $33.48 million, with a net profit of $94.32 million in FY 2024
- Airline says its return to profitability will enhance market credibility, support national economy
ISLAMABAD: Pakistan’s financially struggling national air carrier has recorded an operational profit of Rs9.3 billion ($33.48 million) for the first time in 21 years, the country’s defense minister Khawaja Muhammad Asif said on Tuesday.
Pakistan’s cash-strapped administration is looking to privatize the debt-ridden Pakistan International Airlines (PIA) to raise funds and overhaul state-owned enterprises as part of a $7 billion International Monetary Fund (IMF) program.
However, a previous attempt to offload a 60 percent stake in the airline failed last year after it drew just one bid — well below the asking price — highlighting investor concerns over the carrier’s viability. The new development could boost the government’s efforts to revive buyer interest.
“#PIACL Board today has approved its accounts FY 2024, and after 21 years, it has achieved an operating profit of PKR 9.3 billion & net profit of PKR 26.2 billion [$94.32 million] (after deferred tax adjustment),” Asif said in a post on social media platform X, formerly Twitter.
“People of #Pakistan might have lost hope on ‘once a pride of the nation’, but with rigorous steps adopted by the GoP, implementing comprehensive reforms entailing cost & workforce rationalization, routes optimization & financial discipline with balance sheet restructuring, PIA is poised to capitalize on financial performance through privatization process,” he added.
According to a statement from the airline’s spokesperson, the operational margin for 2024 exceeded 12 percent, a performance level the company said matches that of top global carriers.
PIA’s return to profitability is expected to enhance its market credibility and support the broader economy, it added.
Pakistan warns of surging global military spending, arms race fueled by AI
- Pakistan’s envoy at the UN calls for a halt to the development, use of advanced weapons technologies
- Ambassador Asim Iftikhar Ahmad urges safeguards to prevent AI from fueling a new global arms race
ISLAMABAD: Pakistan on Tuesday warned that a sharp rise in global military spending, driven by emerging technologies such as artificial intelligence (AI), is accelerating a new arms race internationally with potentially grave consequences for global security.
The remarks were delivered by Pakistan’s Permanent Representative to the United Nations, Ambassador Asim Iftikhar Ahmad, during the General Debate of the UN Disarmament Commission’s 2025 session.
Established in 1978 following the First Special Session of the UN General Assembly devoted to disarmament, the commission was tasked with formulating proposals on nuclear disarmament and preventing the proliferation of weapons of mass destruction. However, it has made little tangible progress over the decades and has often been criticized for its inability to produce concrete results.
“We are witnessing unprecedented increase in military spending in recent memory, fueling ever-increasing arms race now turbocharged by technological advancements,” Ahmad said, according to an official statement. “The relentless pursuit of power and geopolitical competition has intensified in recent years, taking us further away from this important international priority.”
The Pakistani envoy emphasized the urgent need for effective international measures to halt the development and use of advanced weapons technologies that could further destabilize global security.
He warned that such advancements were extending the arms race into new frontiers, including outer space, cyberspace and the world’s oceans.
“Artificial intelligence is fast becoming a pervasive feature of our daily lives with profound impact on international peace and security,” Ahmad continued, adding that the military application of AI posed a range of challenges – security, operational, ethical and legal – particularly regarding compliance with international humanitarian law.
The Pakistani diplomat cautioned the unchecked spread of AI-powered autonomous weapons could spark fresh arms races and destabilize both regional and global security environments.
“It is imperative to ensure that AI does not become another area of ongoing arms race with huge implications for global peace and security,” he said, calling for a “multifaceted, holistic and multilateral response.”
Ahmad said the UN should play a central role in shaping a coordinated global approach to the challenges posed by military AI technologies, and expressed Pakistan’s readiness to cooperate with it over the issue.
South Africa-based Pakistani entrepreneur to invest in coal-to-gas plant at Thar coalfields
- The project will convert coal into synthetic gas for industrial use
- Initiative can reduce energy costs, alleviate growing fuel import bill
ISLAMABAD: A South Africa-based Pakistani entrepreneur is investing in a coal-to-gasification plant at the Thar coalfields in southern Sindh province to generate cleaner energy and reduce Pakistan’s reliance on imported fuels, state media reported on Tuesday.
The announcement follows Pakistan’s high-profile mining summit in Islamabad, which brought together investors, policymakers and industry leaders from around the world to explore the country’s vast untapped mineral wealth.
Businesswoman Tabassum Pardesi’s investment signals a renewed effort to harness Pakistan’s Thar coal reserves through gasification technology, which converts coal into synthetic gas for industrial use. The initiative can reduce energy costs, alleviate the country’s growing fuel import bill and provide a domestic alternative to costly liquefied natural gas.
“Tabassum ... is now spearheading a landmark investment initiative to establish a coal-to-gasification plant at the Thar coalfields,” the Associated Press of Pakistan (APP) said in its report.
“The venture, in collaboration with leading South African mining conglomerates, aims to generate cleaner energy, reduce Pakistan’s reliance on imported fuels, and unlock long-term economic opportunities for the region.”
It highlighted that Pardesi, who is known for co-founding the South African Skywise Airlines, has submitted a proposal for the project to the Pakistani authorities and also initiated a “strategic lobbying” campaign during the minerals summit.
The report said her goal was to secure high-level public-private partnerships, streamline regulatory pathways and ensure alignment with Pakistan’s national energy and climate resilience goals.
Pakistan aims for a low-carbon future, targeting 60 percent renewable energy and 30 percent electric vehicle sales by 2030. It plans a 15 percent emissions reduction, increasing to 35 percent with international support.
“Pakistan has the potential to become a global mining powerhouse,” APP quoted Pardesi as saying. “With its abundant natural resources and a youthful workforce, all we need is visionary execution and international collaboration — and I’m here to help make that happen.”
The Thar desert is home to the world’s largest lignite coal reserves, estimated at 175 billion tons, equivalent to 50 billion tons of oil and 2,000 trillion cubic feet of gas. Pakistan’s mineral sector contributes only 3.2 percent to GDP and 0.1 percent to global mineral exports despite rich mineral resources including salt, copper, gold and coal.
Pakistan, Saudi Arabia agree to partner on geological surveying amid push to tap $6 trillion minerals sector
- Geological surveys significantly impact mining by helping to locate, assess, and sustainably exploit mineral resources
- Government officials, heads of private companies from various countries attend two-day mineral summit in Pakistani capital
ISLAMABAD: Pakistan and Saudi Arabia have agreed to collaborate in the field of geological surveys through experience sharing and knowledge transfer, the chief of the Saudi Geological Survey said on Tuesday, as Islamabad seeks to tap the potential of the country’s vast natural reserves estimated to be worth $6 trillion.
Geological surveys, scientific studies that map and analyze the Earth’s geological features, will be a key part of Pakistan’s efforts to tap the underutilized promise of Pakistan’s mineral sector, which despite rich reserves including salt, copper, gold, and coal contributes only 3.2 percent to the GDP and 0.1 percent to global mineral exports. Geographical surveys help to identify mineral deposits, and significantly impact mining by helping to locate, assess, and sustainably exploit mineral resources.
“For the Saudi Geological Survey and Pakistan Geological Survey, yesterday we had a meeting, and we agreed that we will work together to share the experience, transfer the knowledge, the learning, understanding the best practices, which are going to really help both countries in moving forward,” Eng. Abdullah Mefter Al-Shamrani, Chief Executive Officer of the Saudi Geological Survey, told Arab News on the sidelines of the two-day Pakistan Minerals Investment Forum being held in Islamabad.
“There is good cooperation between the two organizations, [and] it is going to bring great value for both countries.”
Al-Shamrani said Saudi Arabia had sent a large delegation comprising government officials and private investors to the mineral summit, who had held productive discussions with Pakistani companies.
“We had a great discussion between companies from Pakistan and Saudi Arabia, where they agreed together that they will continue working, exploring and looking for opportunities here in Pakistan and also at the same time for Saudi Arabia,” Al-Shamrani said.
“Today [Tuesday] we have seen some of the investors in Saudi Arabia, they are asking for permission to go and explore some areas in Pakistan,” he added.
Pakistan is home to one of the world’s largest porphyry copper-gold mineral zones, while the Reko Diq mine in southwestern Balochistan has an estimated 5.9 billion tons of ore. Barrick Gold, which owns a 50 percent stake in the Reko Diq mines, considers them one of the world’s largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan’s struggling economy.
