SYDNEY: Virgin Australia sold 10 percent of its business to Singapore Airlines while agreeing to buy a 60 percent stake in Tiger Airways Australia as it upped the ante in its battle with Qantas.
In a slew of announcements, the country’s second-biggest airline after the Flying Kangaroo also said it was making a Aus$98.7 million ($ 101.9 million) takeover offer for Perth-based Australian regional carrier Skywest.
Virgin agreed to pay Aus$ 35 million ($ 36 million) for its holding in Tiger, the loss-making subsidiary of Singapore’s Tiger Airways, while Singapore Airlines bought its stake for Aus$ 105 million.
“The transactions overall represent a monumental shift for Virgin Australia which, if approved, will see a more even playing field in Australian aviation,” Macquarie analysts said in a note.
“They arguably create a replica of Qantas.”
Virgin chief executive John Borghetti said the deals were designed to accelerate the airline’s growth and increase competition in Australia, where the domestic market has long been dominated by Qantas.
The acquisitions of Tiger and Skywest would boost Virgin’s presence in the budget and regional markets, “enabling us to fast-track our expansion in these areas and become a stronger competitor.”
“These transactions will bring important benefits to Australia, driving growth in jobs, tourism and competition,” said Borghetti, adding that he planned to make the carrier Australia’s “airline of choice in all markets.”
If the Tiger and Skywest deals receive regulatory and shareholder approvals, Virgin will expand its fleet to 139 aircraft and employ more than 9,000 workers.
Australia has a lucrative domestic market and global airlines have been deepening ties with local carriers to access it.
Last month, Qantas and Emirates announced a major global alliance which opens up Qantas’s domestic network of more than 50 destinations and nearly 5,000 flights per week to the Dubai-based airline.
Singapore Airlines is a key international competitor to Qantas and CEO Goh Choon Phong said his company taking a stake in Virgin showed “our shared commitment to an alliance that provides a wide range of consumer benefits.”
“Singapore Airlines fully supports the ongoing transformation of Virgin Australia, which has already resulted in a more competitive aviation market in Australia,” he added.
The Singaporean airline, which paid 42.88 cents a share for an issue of 245.6 million stock, a 6.8 percent discount to the last trading price, joins Etihad which also has a 10 percent stake in Virgin.
Richard Branson’s Virgin Group and Air New Zealand are other major equity holders, giving the airline significant financial clout to mix it with Qantas.
Virgin shares closed up 5.4 percent Tuesday at 48.5 Australian cents.
Borghetti described Singapore Airlines as “an important strategic alliance partner” and City Index analyst Peter Esho said Singapore’s move was “a strategic shift down south to back Qantas’ main domestic competitor.”
“As Qantas closes more Asian deals and looks at ramping up its Emirates code share alliance, competitors will be feeling the heat,” he said.
In the Skywest deal, Virgin made a cash and scrip offer for the airline that operates in regional Australia and Southeast Asia, in competition with Qantas’ regional service QantasLink.
Skywest executive chairman Jeff Chatfield said the offer represented a substantial premium to the current share price.
“Based on our advice it is likely that this proposal will take some months to fully play out,” he said in a statement.
Virgin Australia sells stake to Singapore Airlines
Virgin Australia sells stake to Singapore Airlines
Trump-backed financial firm partners with Pakistan Crypto Council to boost blockchain adoption
- Pakistan has signaled plans to announce comprehensive cryptocurrency legalization policies soon
- Country’s finance chief says such partnerships will open new doors for investment and innovation
KARACHI: World Liberty Financial (WLF), a decentralized finance platform backed by US President Donald Trump, signed a letter of intent with Pakistan’s Crypto Council on Saturday to advance blockchain innovation, stablecoin adoption and decentralized finance (DeFi) integration across the South Asian country.
The agreement, signed in Islamabad, comes as Pakistan looks to formalize its crypto economy amid rising interest in blockchain technologies.
Pakistan is already among the world’s fastest-growing crypto markets, ranking near the top in global adoption rates, with an estimated $300 billion in annual crypto transactions and around 25 million active users.
The government has signaled plans to announce comprehensive cryptocurrency legalization policies soon, building on its wider digital economy ambitions fueled by a largely young population and growing mobile penetration.
“Pakistan’s youth and technology sector are our greatest assets,” Finance Minister Muhammad Aurangzeb, who is currently in Washington and attended the ceremony through video link, said, according to a government statement. “Through partnerships like this, we are opening new doors for investment, innovation and global leadership in the blockchain economy.”
The WLF delegation also met Prime Minister Shehbaz Sharif, Chief of Army Staff General Asim Munir, Deputy Prime Minister Ishaq Dar and several federal ministers during the visit.
The partnership outlines cooperation on areas such as regulatory sandboxes for blockchain product testing, tokenization of real-world assets, expansion of stablecoin applications for remittances and trade and advisory support on blockchain infrastructure and regulatory trends.
Pakistan’s proactive stance follows its broader push to position itself as a hub for digital finance innovation, with 64 percent of its population under the age of 30.
Rising mobile broadband access, a booming freelance economy and increasing government interest in blockchain have accelerated the country’s Web3 adoption.
Bilal Bin Saqib, CEO of the Pakistan Crypto Council, said the collaboration with WLF was aimed at empowering Pakistan’s young population and integrating the country more deeply into the future of global finance.
WLF leadership praised Pakistan’s “energy, vision and talent,” calling it one of the most exciting places in the world to build decentralized finance ecosystems.
Pakistan requests extra 10 billion yuan on China swap line, says finance minister
- Muhammad Aurangzeb says Pakistan aims to diversify its lending base by issuing panda bond
- He expects IMF board to approve first loan review, climate resilience disbursement early next month
WASHINGTON: Pakistan has put in a request to China to augment its existing swap line by 10 billion yuan ($1.4 billion), Finance Minister Muhammad Aurangzeb said, adding he expected the country would launch a Panda bond before year-end.
Pakistan has an existing 30 billion yuan swap line already, Aurangzeb told Reuters in an interview on the sidelines of the International Monetary Fund and World Bank Group spring meetings in Washington.
“From our perspective, getting to 40 billion renminbi would be a good place to move toward ... we just put in that request,” Aurangzeb said.
China’s central bank has been promoting currency swap lines with a raft of emerging economies, including the likes of Argentina and Sri Lanka.
Pakistan has also made progress on issuing its first panda bond — debt issued on China’s domestic bond market, denominated in yuan. Talks with the presidents of the Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) — the two lenders who are in line to provide credit enhancements for the issue — had been constructive, he said.
“We want to diversify our lending base and we have made some good progress around that — we are hoping that during this calendar year we can do an initial print,” he said.
Meanwhile, Aurangzeb expected the IMF executive board to sign off in early May on the Staff Level Agreement on its new $1.3 billion arrangement under a climate resilience loan program as well as the first review of the ongoing $7 billion bailout program.
Getting the green light from the IMF board would trigger a $1 billion payout under the program, which the country secured in 2024 and has played a key role in stabilizing Pakistan’s economy.
Asked about the economic fallout from the tensions with India following the killing of 26 men at a tourist site earlier this month, Aurangzeb said it was “not going to be helpful.”
The attack triggered outrage and grief in India, along with calls for action against neighbor Pakistan, whom New Delhi accuses of funding and encouraging terrorism in Kashmir, a region both nations claim and have fought two wars over.
After the attack, India and Pakistan unleashed a raft of measures against each other, with Pakistan closing its airspace to Indian airlines and suspending trade ties, and India suspending the 1960 Indus Waters Treaty that regulates water-sharing from the Indus River and its tributaries.
Trade flows between the two countries had already fallen off sharply following past frictions and totalled just $1.2 billion last year.
Aurangzeb estimated growth around 3% in the current financial year which ends in June 2025, and in the 4-5% range next year, with a view to hitting 6% thereafter.
Saudi PIF assets triple with 390% surge since 2016, 2030 target raised
- Record-breaking growth fuels job creation, sector expansion, and a powerful shift beyond oil
RIYADH: Saudi Arabia’s Public Investment Fund has recorded a 390 percent surge in assets under management since the launch of Vision 2030, according to the initiative’s latest annual report.
PIF’s assets have soared from $160 billion in 2016 to $941.3 billion in 2024, surpassing its annual target of $880 billion and underscoring the fund’s rapid growth trajectory under the Kingdom’s transformative agenda.
Building on this momentum, the wealth fund has revised its 2030 goal, raising its asset management target from $1.87 trillion to $2.67 trillion. The updated ambition reflects the fund’s strengthened position and growing influence in shaping Saudi Arabia’s future economy.
Between 2016 and 2024, PIF posted a compound annual growth rate of 22 percent, highlighting its consistent ability to generate strong returns while advancing national development priorities.
Driving forces behind PIF’s expansion
Following its restructuring under Vision 2030, PIF has transformed from a traditional sovereign wealth fund into a globally recognized driver of economic diversification and innovation.
The fund’s growth has been propelled by a proactive, diversified investment approach, with 40 percent of its portfolio allocated to Saudi companies and giga-projects. Simultaneously, it has made strategic international investments across high-potential sectors.
This balanced strategy has contributed to the expansion of priority industries within the Kingdom, including tourism, mining, culture, logistics, and technology, supporting efforts to build a resilient, diversified economy.
Economic impact and sectoral growth
PIF’s strategic investments have not only boosted economic growth but also stimulated private sector participation, created employment opportunities, and attracted foreign direct investment.
By 2024, the fund’s initiatives had contributed to the creation of 1.1 million jobs, a significant leap from 77,700 direct and indirect jobs recorded in 2021. Over the same period, the number of companies established with PIF’s support more than doubled, rising from 45 to 93 across 13 strategic sectors.
The fund achieved 48 percent local content across its projects by 2024, highlighting its strong commitment to driving domestic economic growth.
Between 2021 and the third quarter of 2024, PIF attracted more than $37.33 billion in private investments across a range of initiatives, according to the report.
Through its Private Sector Hub initiative, it published over 200 opportunities during this period, representing a total investment value of $10.67 billion.
In addition, more than 300 contractors have been pre-qualified, and over 200 small and medium-sized enterprises have been trained to collaborate with companies across PIF’s portfolio.
PIF’s role in strengthening Saudi Arabia’s non-oil economy has been pivotal.
According to the report, non-oil sectors accounted for 51 percent of the Kingdom’s real gross domestic product by 2024, a key milestone in achieving Vision 2030 goals.
The fund’s influence is evident in the launch of several megaprojects aimed at redefining the Kingdom’s economic landscape, ranging from world-class tourism destinations to advanced industrial zones.
PIF also played a crucial role in advancing financial sector reforms. The number of licensed asset managers in Saudi Arabia rose sharply from just five in 2019 to 36 in 2024, reflecting the Kingdom’s growing investment landscape and financial market sophistication.
Strengthening financial resilience
The fund has reinforced its financial base to support its ambitious investment strategy, highlighted by the transfer of 8 percent of Aramco shares. This move reduced the government’s direct ownership in the oil giant to 82.186 percent, enhancing PIF’s asset strength and investment capacity.
In addition, PIF secured $15 billion in syndicated credit facilities from 23 global financial institutions, significantly boosting its liquidity and financial flexibility. These initiatives align with PIF’s strategic objectives of developing new sectors, localizing knowledge and technology, and generating sustainable, high-quality employment opportunities across the Kingdom.
Global recognition
PIF’s transformation has not gone unnoticed on the international stage. The fund was named the world’s No.1 sovereign wealth fund brand by Brand Finance, with its brand value estimated at $1.1 billion.
Adding to its accolades, PIF swept four awards at the 2024 Middle East Bonds, Loans & Sukuk Conference, including Best Sukuk Deal, Best Landmark Deal, Best Semi-Sovereign Treasury and Funding Team, and Best Deal in Islamic Capital Markets.
Capital markets expansion
Saudi Arabia’s capital markets have grown in tandem with PIF’s rise, playing a critical role in broadening the nation’s economic base since the launch of Vision 2030.
Regulatory reforms—such as updates to the Companies Law and Government Tenders and Procurement Law—have enhanced transparency, strengthened investor confidence, and paved the way for a surge in initial public offerings.
The Saudi Exchange has seen remarkable expansion, with the number of listed companies increasing from 205 in 2019 to 353 in 2024. Foreign investor ownership more than doubled, reaching $112.8 billion in 2024 compared to $52.8 billion in 2019, while non-Saudi portfolio ownership grew from $29.3 billion in 2016 to $131.5 billion.
The number of individual portfolios on the Saudi Exchange also rose sharply, climbing from 9.2 million in 2016 to 13 million by 2024.
Meanwhile, Tadawul’s market capitalization (excluding Aramco) grew from 66.5 percent of GDP in 2019 to 86.7 percent in 2024, indicating the increasing maturity and depth of Saudi Arabia’s capital markets. The banking sector mirrored this growth, with total assets rising from $693.3 billion in 2019 to $1.12 trillion by the second quarter of 2024.
These developments have positioned Saudi Arabia’s financial sector as one of the most dynamic and accessible in the region, offering expanded opportunities for both local and global investors.
Reflecting this confidence, international credit rating agencies reaffirmed Saudi Arabia’s strong economic outlook in 2024. Moody’s assigned an AA3 rating, Fitch rated the Kingdom at “A+,” and S&P Global Ratings gave it an “A/A-1” rating, all with stable outlooks.
Beyond Vision 2030
As the Kingdom prepares to enter the final phase of Vision 2030 delivery in 2026, the focus will increasingly shift toward building a sustainable and resilient private sector. Key priorities include reducing reliance on government support while fostering growth through regulatory enhancements, infrastructure development, and targeted investments.
Saudi Arabia envisions the private sector playing a leading role in advancing the economy, particularly in high-impact fields such as advanced manufacturing, artificial intelligence, and the digital economy.
By empowering private enterprises, the Kingdom aims to achieve its target of generating 65 percent of GDP from private sector activities, positioning it as a critical driver of sustainable growth in the decades beyond Vision 2030.
Pakistan’s forex reserves triple since early 2023 as central bank targets $14 billion
- Central bank governor says Pakistan’s reserves have seen both qualitative and quantitative improvement
- Governor Jamil Ahmed was briefing executives of global financial and investment institutions in the US
KARACHI: Pakistan’s foreign exchange reserves have more than tripled since early 2023, driven by a surplus in the external current account rather than fresh borrowing, the top central bank official said, according to a statement on Saturday, as the country targets $14 billion in reserves by June.
Pakistan’s forex reserves had touched critically low levels two years ago, giving it an import cover of less than a month. Faced with the threat of a sovereign debt default, the country secured a $3 billion short-term International Monetary Fund (IMF) bailout, tightened fiscal and monetary policies, restricted imports and allowed greater exchange rate flexibility.
Governor of the State Bank of Pakistan, Jameel Ahmad, told senior executives from global financial and investment institutions on the sidelines of the IMF-World Bank Spring Meetings in Washington the country’s external buffers had seen a “substantial qualitative as well as quantitative improvement” since then, as he briefed them about the current economic situation.
“Unlike previous episodes of reserve build-up, the ongoing rise in external buffers is not due to any further accumulation of external debt,” he said. “In fact, Pakistan’s public sector external debt, both in absolute terms and as a percent of GDP, has declined since June 2022.”
Ahmad added that the central bank had been able to strengthen reserves through foreign exchange purchases in the open market, supported by a current account surplus.
“The SBP is targeting to increase [forex] reserves to $14 billion by June 2025,” he said.
Ahmad said Pakistan had made tangible progress in stabilizing its economy, crediting a prudent monetary policy and sustained fiscal consolidation efforts for the improvement.
He informed that headline inflation had declined sharply over the past two years, reaching a multi-decade low of 0.7 percent in March 2025, while core inflation had also dropped from above 22 percent to a single digit and was expected to moderate further in the coming months.
Pakistan’s IT exports seen reaching $4 billion in FY25 as industry seeks tax relief
- Country’s software association calls IT industry the only sector with 75% trade surplus
- Government has set an ambitious target of reaching $10 billion in IT exports by 2029
KARACHI: Pakistan’s information technology (IT) sector expects exports to reach $4 billion in the current fiscal year and seeks regulatory reforms and a 10-year tax holiday to sustain growth momentum, said the country’s top software association on Saturday.
The IT sector is one of Pakistan’s priority industries as the country looks to boost export revenues and stabilize its external accounts.
Under the government’s “Uraan Pakistan” initiative, launched last year in December, Islamabad aims to raise IT exports to $10 billion by 2029.
Industry leaders say IT remains one of the few sectors capable of exponential growth despite the broader economic challenges.
“Muhammad Umair Nizam, Senior Vice Chairman of Pakistan Software Houses Association (P@SHA), has apprised that information technology has become the fastest growing export industry of Pakistan – and, the country is set to achieve $4 billion in its IT exports for the FY25,” the software association said in a statement, adding that Pakistan’s IT exports stood at $3.2 billion in the last fiscal year with the prospect for a 25% year-on-year growth.
However, P@SHA warned regulatory bottlenecks and inconsistent tax policies were hampering the sector’s expansion at a time when new tech sub-sectors were emerging.
The association said it had also submitted detailed budget proposals to the government, seeking a facilitative framework that includes streamlined foreign exchange regulations, banking sector support, removal of sales tax anomalies and accelerated development of special technology zones and IT parks.
Pakistan’s IT industry is the only sector with a trade surplus of around 75%, the statement said, underlining its potential to create jobs, develop skilled human capital and reduce the trade deficit on a sustainable basis.
The software association also raised concerns over income tax disparities between salaried employees and freelancers, saying the current structure discourages formal employment and needs urgent correction in the upcoming federal budget.
