ISLAMABAD: Pakistani President Dr. Arif Alvi said on Sunday Pakistan’s Gwadar and the UAE’s Jebel Ali ports could complement international trade and “make each other stronger,” saying Pakistan was looking to learn from the UAE how to become an international business hub and “capitalist paradise.”
The president was speaking to UAE’s state news agency WAM during a two day trip to the emirate in which he inaugurated the Pakistan Pavilion at the Expo 2020 Dubai and met leading UAE investors and heads of major companies and media, as well as interacted with members of the Pakistani diaspora. He also had a meeting with Sheikh Mohammed bin Rashid Al-Maktoum, the vice president and prime minister of the UAE.
In the WAM interview, Alvi said Pakistan could learn from the way the UAE had positioned itself as an investment and trade hub in the world.
“There are two important things that the UAE did, which we are trying to do: it is a safe country, and it established a brick-and-mortar domain in the last 30 to 40 years.
“It said to the investors, ‘Come here, establish factories, there are no taxes, do whatever you want to do, export it.’ People were very glad to do that.
“Pakistan is trying to create another business domain, like the UAE: we have special economic and export zones, where industrial brick-and-mortar investments are being encouraged. We also have a special technology zone authority where people can bring in capital and the government guarantees that you can take the capital out, you can take your profit out, there are no taxes – no income or sales taxes. It is a capitalist paradise.”
Alvi explained how Pakistan’s Gwadar and UAE’s Jebel Ali ports could work together.
Gwadar port in Pakistan’s southwestern Balochistan province is the center stage of the China-Pakistan Economic Corridor of over $60 billion in investments in Pakistan, while Dubai’s Jebel Ali is one of the largest and busiest ports in the world.
“Gwadar Port is the closest to central Asia states ... It is an addition to the international trade, it is a different business situation, a different pipeline for goods,” the president said. “[It] will complement the international trade and add to what Jebel Ali is doing, so both ports can make each other stronger.”
The president said Pakistan’s relationship with the UAE had “improved tremendously” over the years.
“Do you know why? Because of mutual trade, the Pakistani diaspora working here, and for the fact that we always want to build new bridges. The foundation is strong; it is based on brotherhood and a common religion, and as the world is looking for peace in this region, the UAE and Pakistan have always sought peace.”
Pakistan was the first country to recognize the UAE as a nation in 1971. Today, the UAE is considered Pakistan’s largest trading partner in the Middle East with bilateral trade amounting to $6 billion, according to latest figures from the embassy of Pakistan in the UAE.
Pakistan learning from UAE how to become international business hub — President Alvi
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Pakistan learning from UAE how to become international business hub — President Alvi
- In interview to WAM, president says Pakistan’s Gwadar and UAE’s Jebel Ali ports could “make each other stronger“
- UAE is considered Pakistan’s biggest trading partner in the Middle East with bilateral trade amounting to $6 billion
Pakistan launches first skills impact bond to fund training with private capital
- New $3.57 million pilot ties investor returns to job placement and retention outcomes
- The program aims to upskill youth at scale, with 40 percent of trainees targeted to be women
KARACHI: Pakistan on Tuesday launched its first-ever Pakistan Skills Impact Bond (PSIB), a private-capital-funded instrument aimed at financing technical training by linking investor repayments to measurable employment outcomes, as the government seeks new ways to upskill its rapidly growing workforce without relying solely on public spending.
The Rs 1 billion ($3.57 million) pilot tranche, backed by a government guarantee, is part of a three-year program designed to fund skills training through an outcome-based model, under which investors are repaid only if trainees achieve results such as certification, job placement and at least six months of employment retention.
Social impact bonds are a form of results-based financing in which private investors provide upfront capital for social programs, while governments or donors repay them only if agreed performance targets are met. Pakistan’s skills bond is intended to shift training finance away from traditional input-based budgets toward a market-oriented approach that rewards verified outcomes and crowds in private investment.
“Speaking at the event, Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue, underscored the transformational importance of the PSIB in Pakistan’s broader economic reform agenda and human capital strategy,” the finance division said in a statement. “He described the day as ‘an important moment focused on education and training,’ reiterating that Pakistan’s demographic dividend can only be realized if the country succeeds in upskilling and reskilling its youth at scale.”
The program is anchored in collaboration with the National Vocational and Technical Training Commission (NAVTTC) and is expected to evolve over time, with later tranches potentially linking repayments to a small share of trainees’ future earnings, a move officials say could help make the model financially self-sustaining.
The bond forms part of a broader government push to adopt social impact financing across priority areas including education, gender equality, health, climate resilience and poverty reduction, the statement said.
“Highlighting gender inclusion as central to the program design, the Finance Minister welcomed the recommendation led by the British Asian Trust that 40 percent of trainees under the PSIB be women, acknowledging that women’s participation and leadership in the workforce will play a decisive role in shaping Pakistan’s economic trajectory,” it added.
The Ministry of Finance has provided the initial guarantee to help establish credibility and attract investors, but has stressed the support is limited to the pilot phase.
The government has noted the model is intended to support Pakistan’s large youth population by aligning training with labor market demand, including high-value digital skills, while reducing long-term pressure on public finances.
The launch ceremony was attended by senior government officials, development partners, private sector representatives and international organizations involved in structuring and financing the bond.
