Pakistan praises Saudi Arabia, Iran for agreeing to resume diplomatic relations

Director of China's Office of the Central Foreign Affairs Commission, Wang Yi, center, attends a meeting with Secretary of Iran's Supreme National Security Council Ali Shamkhani, right, and Minister of State and national security adviser of Saudi Arabia Musaad bin Mohammed Al Aiban in Beijing, China on March 10, 2023. (China Daily via REUTERS)
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Updated 11 March 2023
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Pakistan praises Saudi Arabia, Iran for agreeing to resume diplomatic relations

  • Foreign office calls the development a significant ‘breakthrough’ which will strengthen peace in the Middle East
  • Pakistan also applauds China that facilitated the dialogue between the two sides and helped broker the agreement

ISLAMABAD: Pakistan welcomed the normalization of diplomatic relations between Saudi Arabia and Iran on Friday, calling it an “important diplomatic breakthrough” and applauding China’s role in helping the two sides reach an agreement.

The two Middle Eastern countries decided to restore ties and reopen diplomatic missions while reaching an agreement brokered by the Chinese authorities.

The development was announced in a trilateral statement which mentioned the reopening of embassies within two months along with renewal of bilateral cooperation in other fields.

“Pakistan firmly believes that this important diplomatic breakthrough will contribute to peace and stability in the region and beyond,” said the foreign office in a statement. “We commend the role played by China’s visionary leadership in coordinating this historic agreement which reflects the power of constructive engagement and meaningful dialogue.”

The foreign office praised the “sagacious leadership” of Saudi Arabia and Iran in the wake of the development.

“With a history of consistently supporting and coordinating efforts for bridging gaps between the two brotherly countries, Pakistan will continue to play a constructive role in the Middle East and the region,” it added. “We hope this positive step would define a template for regional cooperation and harmony.”

It may be recalled that the kingdom decided to downgrade its diplomatic relations with Iran after protesters attacked Saudi diplomatic facilities in 2016.

Friday's agreement, which materialized after several rounds of negotiations between the two Middle Eastern countries, was also welcomed by other states as a positive development for the region.


Pakistan stocks hit record as fertilizer sales jump, rate cut hopes build

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Pakistan stocks hit record as fertilizer sales jump, rate cut hopes build

  • KSE-100 jumps 1.5 percent to close above 179,000 points for the first time
  • Stocks start 2026 on a strong note amid broad-based institutional buying

ISLAMABAD: Pakistani stocks extended their rally on Friday, with the benchmark index closing above the 179,000-point mark for the first time, driven by strong fertilizer sales data and expectations of further monetary easing by the central bank.

The KSE-100 index rose 2,679.44 points, or 1.52 percent, to close at 179,034.93, compared with its previous close of 176,355.49, according to data from the Pakistan Stock Exchange (PSX).

Ahsan Mehanti, chief executive officer at Arif Habib Commodities, said buying interest picked up ahead of key corporate earnings due next week, supported by easing inflationary pressures and improving sector-specific data.

“Rupee gains, strong fertilizer sales growth of 34 percent year-on-year in December 2025 and expectations of further policy easing by the State Bank of Pakistan, after headline inflation slowed to 5.6 percent year-on-year, acted as key triggers for bullish activity at the Pakistan Stock Exchange,” he told Arab News.

Fertilizer sales in Pakistan have shown mixed trends in recent months, with overall offtake affected by weak farm economics and seasonal factors. While urea sales declined in some periods, December data showed a sharp rebound, helping lift investor sentiment in the sector.

This has supported fertilizer stocks on the PSX, including Fauji Fertilizer Company, Engro Fertilizers and Fatima Fertilizer, which continue to draw interest due to their market dominance and dividend payouts.

Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company Limited, said investors were positioning for another rate cut amid improving macroeconomic indicators.

“Expectations of another rate cut, strong macroeconomic fundamentals and better corporate results are driving the market,” he said.

Pakistan’s central bank cut its key policy rate by 50 basis points to 10.5 percent last month, surprising markets after maintaining rates unchanged in its previous four policy meetings. Consumer price inflation eased to 5.6 percent year-on-year in December, while prices declined on a monthly basis.

Friday’s close capped a strong start to 2026 for the PSX, with broad-based institutional buying lifting major sectors and reinforcing investor confidence at the beginning of the year.