KARACHI: Pakistan is all set to receive the first container ship directly from Russia next week at the Karachi harbor, paving the way for speedy and direct access for Pakistani exporters to Russian markets, an official of a shipping agency confirmed on Friday.
The direct service will start between the port city of Karachi and Russia’s Saint Petersburg from May 25, mainly for the export of Pakistani products.
The development comes as cash-strapped Pakistan is desperately looking to increase its exports and bolster trade relations with other countries to shore up its depleting foreign exchange reserves, which have fallen to critically low levels over the last few months. The country has been waiting for the approval of a bailout program from the International Monetary Fund (IMF) to stave off the possibility of default but has so far been unsuccessful in finalizing an agreement with the global lender.
Earlier this year, Pakistan also signed a deal with Russia to purchase crude oil and oil products at a cheaper rate and is awaiting the first shipment.
“The container ship, Necoline, will berth on May 25 at the Karachi Port and will depart on the same day,” Abdullah Farrukh, CEO of the shipping agency Pak Shaheen Private Limited, told Arab News. “This is a significant development in the history of Pakistan that a Russian ship is coming to the country that will load Pakistani products and directly supply them to the Russian market for the first time.”
Farrukh said the direct service will operate on a monthly basis before its frequency is increased from August this year, keeping in view the expected surge in trade flow between the two countries.
He added the direct service would also reduce the delivery time to 19 days as compared to the usual 50 days that it took previously.
“With the commencement of direct service, the Karachi Port will be transformed into a transshipment hub and cargoes from another neighboring country would be transported via Karachi,” he added. “Cargo from China, India, Malaysia, and other regional countries would be transshipped from Karachi to Russia.”
Responding to a question about the mode of payment, Farrukh said the payment would be made in Chinese Yuan because Russian importers are willing to pay in Yuan and the transactions would be facilitated by both Chinese and Pakistani banks.
The Pakistani embassy in Russia announced in a statement on Friday that Moscow signed a protocol related to customs cooperation with Pakistan’s commerce ministry.
It said the protocol that covered administrative cooperation and information exchange under the unified tariff preferences of Eurasian Economic Union was “another important step in building the legal framework required for developing commercial relations” between the two countries.
Aasim Azim Siddiqui, chairman of All Pakistan Shipping Association, said the initiation of direct service would not only cut the delivery time but also help reduce shipping costs.
“In the absence of direct service between Pakistan and Russia, the transportation of goods via other ports was not only time-consuming but also costly,” he said. “This initiative would not only cut the number of days but also reduce costs or at least make it market competitive.”
Pakistani shippers said the opening of a direct shipping line would help Pakistani exporters supply textiles and sports goods, and commodities such as rice, various leather products, and fruits and vegetable, among others things, to Russia at competitive rates.
The South Asian country during the first 10 months of the current fiscal year has received $77.8 million on account of export receipts from Russia as compared to the $119.6 million received during the same period last year, according to the State Bank of Pakistan (SBP).
Meanwhile, Pakistan made payments of $522.9 million on account of imports as compared to $213.9 million in the same period last year.
Pakistan to have direct shipping link with Russia from next week — shipping agency official
https://arab.news/2zha5
Pakistan to have direct shipping link with Russia from next week — shipping agency official
- Russia’s first container ship will dock at the Karachi Port on May 25 before sailing back with Pakistani goods
- Direct shipping service will deliver cargo within 19 days, instead of 50 days, and cut down shipping costs
Pakistani companies likely to raise over $89 million in new stock listings this year
- Farrukh H. Sabzwari says approvals for two listings already granted while 10 more Initial Public Offerings are expected over next 12 months
- Economists expect KSE-100 index to reach 208,000 points by Dec., reflecting pent-up demand, strategic expansions and broader investor appetite
KARACHI: The Pakistan Stock Exchange (PSX) expects at least a dozen new listings this year, the PSX chief executive officer said on Monday, with the new entrants likely to raise as much as Rs25 billion ($89.3 million) in funding through the equity market.
Pakistan’s benchmark KSE-100 index has rallied to new highs and recorded returns of around 50 percent in Calendar Year (CY) 2025. The market closed at 182,384 points on Monday.
Around 135,000 new investors have also joined the PSX over the last 18 months, according to Pakistani state media.
“Continuing with the momentum, in CY2026, approvals for two Main Board listings have been granted,” PSX CEO Farrukh H. Sabzwari, who has previously served as a local partner of BoA Merrill Lynch and country head of CLSA Emerging Markets in Pakistan, told Arab News.
“PSX is expecting 10 more IPOs (Initial Public Offerings) over next 12 months across various sectors.”
Pakistan’s growing stocks mirror the country’s stabilizing economy which Prime Minister Shehbaz Sharif’s government expects would expand 3.9 percent this fiscal year through June with the help of the International Monetary Fund’s reforms-oriented $7 billion loan program.
The new IPOs would cover food, pharmaceutical, real estate investment trust (REIT), engineering, technology, oil and gas marketing, insurance, auto parts, manufacturing and energy sectors of the economy, according to Sabzwari.
Last year, the PSX listed Zarea Limited, Barkat Frisian Agro Limited, Image REIT, Pak Qatar Family Takaful, Blue-Ex Limited, Nets International Communication Limited and the Pakistan Credit Rating Agency Limited. These listings helped companies raise Rs4.3 billion ($15.4 million) of funding.
In addition, the PSX debt market witnessed seven issuances, valuing Rs10.5 billion ($37.5 million). Pakistan’s finance ministry raises funds through PSX by selling borrowing instruments like Islamic sukuk.
The PSX recorded the highest eight IPOs in a single year in 2021, according to Shankar Talreja, head of research at Topline Securities Ltd. It would be a record if the market lists 12 new entrants this year.
Sana Tawfiq, an economist at Karachi-based brokerage research firm AHL, described the market performance last year as “exceptional.”
“With projected fundraising of up to Rs25 billion ($89.3 million), the upcoming pipeline reflects pent-up demand, strategic expansions, and a broader investor appetite,” she said.
Tawfiq expects the KSE-100 index to reach 208,000 points by Dec. this year.
“As we look toward 2026, Pakistan’s equity market is entering a phase defined by stability, depth, and sustainable growth,” the economist said.
“The market is now transitioning toward a more measured trajectory.”
Key drivers in 2026 would likely include sustained domestic liquidity in equities, strengthening foreign reserves and a contained current account deficit, successful completion of the Pakistan International Airlines (PIA) privatization alongside accelerating progress on privatization and restructuring of power distribution companies (DISCOs), continued efforts to resolve circular debt in both power and gas sectors, and supportive global commodity prices, according to Tawfiq.
In a recent note to its clients, Topline Securities said the current IPO momentum was driven by macroeconomic stability under the IMF program, improving investor confidence and a declining interest rate environment.
Pakistan’s central bank last month cut its interest rate by 50 basis points to 10.5 percent in a surprising move aimed at boosting economic growth in the inflation-hit country.
“Despite ongoing geopolitical and macroeconomic uncertainties, investor sentiment continues to improve,” it said.
