Pakistan’s army chief says Afghan peace, prosperity vital for regional stability

Pakistan's Chief of Army Staff Gen. Qamar Javed Bajwa (right) meets Chinese Ambassador Nong Rong (second left) in Islamabad, Pakistan, on November 5, 2021. (Photo courtesy: APP)
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Updated 06 November 2021
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Pakistan’s army chief says Afghan peace, prosperity vital for regional stability

  • General Qamar Javed Bajwa was meeting with the Chinese envoy and Beijing’s incoming military attaché to Pakistan
  • Pakistan and China have been closely working to stabilize Afghanistan since the withdrawal of international forces in August

ISLAMABAD: Pakistan’s army chief General Qamar Javed Bajwa said on Friday Afghanistan’s peace and prosperity were imperative for greater stability in the region during a meeting with the Chinese envoy and Beijing’s incoming military attaché to Pakistan in Rawalpindi, said the military’s media wing in a statement.
Pakistan and China have been closely working to stabilize Afghanistan since the withdrawal of international forces in August.
As the new administration in Kabul tries to prevent an economic meltdown, Afghanistan’s neighbors have expressed fears of another refugee influx in the region.
Pakistan has also maintained Afghanistan can become a safe haven for transnational militant networks once again, if the world refuses to help the Taliban deal with emerging challenges in the war-battered state by engaging with them.
“During the meeting [between General Bajwa and Chinese officials], matters of mutual interest, regional security situation, including Afghan Peace Process and measures to further enhance bilateral cooperation were discussed,” the official statement said, adding that the army chief “reiterated the need for convergence of efforts toward a peaceful & prosperous Afghanistan in pursuit of regional stability.”


Pakistan and China have a strong defense cooperation and the two countries are also striving for greater regional connectivity.
According to the official statement, the visiting Chinese officials thanked the army chief for taking special measures to provide safe and secure environment to their fellow citizens working on various infrastructure projects under the umbrella of the China-Pakistan Economic Corridor.

 


IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

Updated 10 January 2026
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IMF hails Pakistan privatization drive, calls PIA sale a ‘milestone’

  • Fund backs sale of national airline as key step in divesting loss-making state firms
  • IMF has long urged Islamabad to reduce fiscal burden posed by state-owned entities

KARACHI: The International Monetary Fund (IMF) on Saturday welcomed Pakistan’s privatization efforts, describing the sale of the country’s national airline to a private consortium last month as a milestone that could help advance the divestment of loss-making state-owned enterprises (SOEs).

The comments follow the government’s sale of a 75 percent stake in Pakistan International Airlines (PIA) to a consortium led by the Arif Habib Group for Rs 135 billion ($486 million) after several rounds of bidding in a competitive process, marking Islamabad’s second attempt to privatize the carrier after a failed effort a year earlier.

Between the two privatization attempts, PIA resumed flight operations to several international destinations after aviation authorities in the European Union and Britain lifted restrictions nearly five years after the airline was grounded following a deadly Airbus A320 crash in Karachi in 2020 that killed 97 people.

“We welcome the authorities’ privatization efforts and the completion of the PIA privatization process, which was a commitment under the EFF,” Mahir Binici, the IMF’s resident representative in Pakistan, said in response to an Arab News query, referring to the $7 billion Extended Fund Facility.

“This privatization represents a milestone within the authorities’ reform agenda, aimed at decreasing governmental involvement in commercial sectors and attracting investments to promote economic growth in Pakistan,” he added.

The IMF has long urged Islamabad to reduce the fiscal burden posed by loss-making state firms, which have weighed public finances for years and required repeated government bailouts. Beyond PIA, the government has signaled plans to restructure or sell stakes in additional SOEs as part of broader reforms under the IMF program.

Privatization also remains politically sensitive in Pakistan, with critics warning of job losses and concerns over national assets, while supporters argue private sector management could improve efficiency and service delivery in chronically underperforming entities.

Pakistan’s Cabinet Committee on State-Owned Enterprises said on Friday that SOEs recorded a net loss of Rs 122.9 billion ($442 million) in the 2024–25 fiscal year, compared with a net loss of Rs 30.6 billion ($110 million) in the previous year.