ISLAMABAD: The government is set to hold a final auction for the state-owned Pakistan International Airlines (PIA) in the first week of October, an official said on Saturday, adding all issues related to the privatization of the national air carrier, including outstanding commercial loans, would be resolved within a couple of weeks.
The government announced in June it had selected six companies qualified to bid for PIA out of a pool of eight after receiving expressions of interest. Pakistan plans to sell more than 51 percent of its stake in the loss-making airline as part of the economic reforms suggested by the International Monetary Fund (IMF) for a fresh $7 billion loan program.
However, the country’s central bank refused earlier this week to grant a waiver or exemption to prospective buyers regarding PIA’s commercial bank loans of Rs268 billion ($971.1 million) and other financial guarantees in dollar terms, a development viewed as a setback to the privatization bid.
“It has been mutually decided with the pre-qualified bidders to hold final auction for the PIA in first week of October,” Dr. Ahsan Ishaq, a privatization ministry spokesperson, told Arab News. “We have been in touch with the central bank to resolve the issue regarding all outstanding commercial loans of the national carrier before its final bid.”
According to the ministry, the pre-qualified bidders for PIA include Air Blue, Arif Habib Corporation, Blue World City, Fly Jinnah, Pak Ethanol (Pvt) Consortium and YB Holdings Consortium.
The government initially planned to finalize the deal on the country’s Independence Day on August 14, but it was delayed following requests from bidders who were waiting for the airline’s latest audited accounts, aircraft lease agreements and clarity on flights to Europe, which are currently banned.
Official data available with Arab News reveal there are 88 commercially operated state-owned enterprises in Pakistan, with their collective losses reaching Rs730.258 billion ($2.61 billion) in the fiscal year 2022 (FY22).
In its five-year privatization plan ending in 2029, the government has approved 24 state-owned enterprises for sale, including PIA.
“This issue of the loans will be resolved in a couple of weeks,” Ishaq said. “Even if this issue of the commercial loans is not resolved, the final bidder may adjust this amount in its offer.”
The top ten loss-making Pakistani entities, including PIA with Rs97.5 billion, the National Highways Authority at Rs168.5 billion and the Peshawar Electric Supply Company Limited with Rs102.2 billion, accounted for a cumulative loss of Rs650.197 billion ($2.33 billion) in FY22, according to official data.
In contrast, the remaining enterprises reported combined losses of Rs80 billion ($286 million) during the same fiscal year.
Dr. Ishaq informed PIA’s cumulative losses alone had surpassed Rs800 billion ($2.86 billion), with the total asset valuation of the airline standing at approximately Rs160 billion ($572 million).
He said the government had categorized the entities to be privatized into first, second and third phases over five years, including PIA, First Women Bank, House Building Finance Corporation and various power generation and distribution companies.
“The government is fully focused on privatizing all state-owned enterprises to eliminate billions of rupees in annual losses,” he added. “Privatization is a time-consuming and complex process, but we are pursuing it diligently.”
Pakistan to hold final auction for national air carrier in October — official
https://arab.news/ycbf3
Pakistan to hold final auction for national air carrier in October — official
- Government says all issues related to PIA privatization, including outstanding commercial loans, will be resolved
- The national air carrier is among 88 state-owned enterprises that made collective losses of $2.61 billion in FY22
Pakistan offers condolences after gunmen kill 26 tourists in Indian-administered Kashmir
- The incident happened in Pahalgam where unidentified assailants gunned down mostly domestic tourists
- Such attacks have historically strained ties between the two nuclear rivals, pushing them close to war
ISLAMABAD: Pakistan on Wednesday voiced concern over the killing of civilians in Indian-administered Kashmir, after at least 26 people were gunned down by unidentified assailants at a tourist site in the region’s deadliest attack on non-combatants in decades.
The shooting occurred Tuesday afternoon in Pahalgam, a popular resort town in the Anantnag district, when armed men emerged from forest cover and opened fire on crowds of mostly domestic tourists.
Indian officials said the attack bore the hallmarks of an organized militant assault, though no group claimed responsibility for it. Survivors described a calculated and prolonged attack, with gunmen selectively targeting men and sparing women.
“We are concerned at the loss of tourists’ lives in an attack in Anantnag district of Indian Illegally Occupied Jammu and Kashmir,” the foreign office of Pakistan said in a statement.
“We extend our condolences to the near ones of the deceased and wish the injured a speedy recovery,” it added.
Indian Prime Minister Narendra Modi, who cut short a state visit to Saudi Arabia in response, called the attack a “heinous act” and pledged that the perpetrators would be brought to justice.
Such attacks have historically strained ties between India and Pakistan, two nuclear-armed rivals with a long-standing dispute over Kashmir. In 2019, a suicide bombing in Pulwama killed 40 Indian paramilitary personnel and triggered cross-border air strikes, pushing the neighbors to the brink of war.
New Delhi has repeatedly blamed Islamabad for backing militant groups operating in the region, an allegation Pakistan denies, insisting it supports only the political aspirations of Kashmiris.
On Wednesday, India’s army also reported killing two gunmen in a separate incident near the Line of Control, the de facto border separating the Pakistani and Indian sides of Kashmir, in Baramulla district, describing it as a foiled infiltration attempt.
Kashmir has been divided between India and Pakistan since 1947, with both countries claiming it in full. A violent separatist insurgency has simmered in the Indian-administered part since the late 1980s, although militant violence had declined in recent years.
Tuesday’s attack has also promoted global reaction, with US President Donald Trump and EU chief Ursula von der Leyen condemning the violence and pledging support for India in pursuing the assailants.
Pakistan’s finance chief seeks deeper US trade ties, welcomes reform efforts at global lenders
- Muhammad Aurangzeb downplays US tariff concerns, says Pakistan sees greater opportunity in rebalancing trade
- IMF chief says the international lender is trying to determine how to design loan programs for countries like Pakistan
KARACHI: Pakistan’s finance minister said on Tuesday the country wants to broaden trade and investment ties with the United States, especially in minerals critical to the energy transition, while also joining other vulnerable economies in urging reforms at the World Bank and International Monetary Fund (IMF).
Minister Muhammad Aurangzeb is currently in Washington to attend the IMF-World Bank Spring Meetings, where policymakers are grappling with debt distress, climate vulnerabilities and growing calls from the Global South to reshape how multilateral institutions lend and design reforms.
The IMF has acknowledged the need to tailor programs more toward pro-growth reforms and private-sector led development, particularly for repeat borrowers like Pakistan.
“We genuinely believe that there’s a win-win situation,” Aurangzeb said at the Atlantic Council, pointing to high-level US interest in Pakistan’s copper and rare earth potential. “Reko Diq is only the first one... the value addition and downstream stuff is going to be really game-changing for Pakistan.”
Aurangzeb downplayed concerns over US tariffs, saying the country saw greater opportunity in rebalancing trade and attracting strategic investment.
He reiterated a high-level delegation from Islamabad would visit Washington in the coming weeks to explore broader cooperation beyond tariffs, citing minerals, agriculture and green technology as key areas.
On multilateral reform, Aurangzeb welcomed the willingness of IMF and World Bank leaders to reassess their lending frameworks, especially in light of liquidity strains across the Global South.
“These institutions also need to have ownership and accountability at their end to really drive impact,” he said, calling for a system that allows countries like Pakistan to access flexible financing and avoid perpetual debt cycles.
He praised recent efforts to unify public and private sector arms within the World Bank and to coordinate better with other lenders like the ADB and AIIB.
IMF Managing Director Kristalina Georgieva said on Tuesday the international lending agency was not just telling countries to get their own houses in order, but was also looking at the way it does business, including conducting a review of how it designs loan programs, and determines their length and conditions.
She said the IMF was also looking at countries that have had repeated programs, such as Pakistan, Argentina and Egypt, to ensure loan programs were designed the right way.
Pakistan has been in over 20 IMF programs, including a $7 billion Extended Fund Facility finalized last year to stabilize its economy.
Aurangzeb said the government was pursuing structural reform, with a focus on climate, population, and fiscal sustainability, including efforts to broaden the tax base and digitize enforcement.
– With input from Reuters
Pakistan’s foreign investment dropped 19% during first nine months of FY25— central bank
- Foreign portfolio investment dropped by 514% in July-March FY25 period, says state bank
- Pakistani financial analysts attribute decline to political uncertainty, lack of ease of doing business
KARACHI: Pakistan’s foreign investment declined by 19% to $1.3 billion during the first nine months of this fiscal year through March, recent data from Pakistan’s central bank said, with analysts attributing the slump to political uncertainty and lack of ease of doing business.
As per the State Bank of Pakistan’s (SBP) latest data, foreign direct investment (FDI) in Pakistan rose by 14% to $1.64 billion in the same period, compared to $1.44 billion the country attracted a year ago.
However, the total foreign investment also includes foreign portfolio investment (FPI), which are foreign investments in a country’s stocks, bonds and other securities. The SBP said FPI dropped by a staggering 514% as foreigners sold $269 million of the country’s equity and debt during July-March this fiscal year. Last year, foreign investors were holding $65 million in Pakistan’s stocks and bonds during the same period.
Pakistan’s government has said the country is on its path to economic progress. Pakistan formed the Special Investment Facilitation Council (SIFC) in 2023 after coming to the brink of a sovereign default. The SIFC is a civil-military body that aims to attract foreign investment in minerals, agriculture, livestock, tourism, defense and other important sectors.
“Although the SIFC has been instrumental in generating leads for foreign investment, the actual materialization of flows has been weak due to hurdles in executing these,” Shankar Talreja, director of research at brokerage firm Topline Securities Limited, told Arab News on Friday.
Prime Minister Shehbaz Sharif has tasked his government to increase exports to $60 billion in the next five years, seeking to boost its foreign exchange reserves.
However, the country’s foreign reserves have declined to $10.6 billion during the week ended Apr. 11, as per the SBP’s figures. The amount is hardly enough to cover two months of imports whereas the International Monetary Fund (IMF) wants Pakistan to increase its reserves to support three months of imports.
Pakistan’s Information Minister Attaullah Tarar and the finance ministry’s spokesperson Qamar Sarwar Abbasi did not respond to Arab News’ request for comments.
While Sharif’s government has signed various memoranda of understanding (MoUs) with several countries over the past year, it has not been able to attract even $3 billion in investment since the last two decades, since FY09, as per the central bank’s data.
Talreja said some foreign companies wanted to make major investments in Pakistan’s refinery sector but frequent changes in the country’s tax structure led to a “hue and cry” from them.
“The ease of doing business is quite low in Pakistan due to higher taxes and frequent bubbles in the economy led by inconsistent macro policies,” Talreja explained.
‘ZERO GROWTH IN PER CAPITA INCOME’
Financial analyst Sana Tawfik said besides political uncertainty and a high cost of doing business, Pakistan’s fragile balance of payment position has been a permanent concern for risk-averse investors.
These investors have seen Islamabad approach the IMF for frequent financial bailouts whenever it has tried to achieve an import-driven 5-6 percent growth, she said.
“Pakistan’s macroeconomic situation is no doubt improving but then we have to see how sustainable this improvement is,” Tawfik, the head of research at Arif Habib Limited, told Arab News.
Pakistan, Turkiye demand immediate ceasefire in Gaza, separate state for Palestinians
- Prime Minister Shehbaz Sharif meets Turkish President Recep Tayyip Erdogan in Ankara
- Both leaders discuss cooperation in energy, mining, military and defense, says Sharif’s office
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif and Turkish President Recep Tayyip Erdoğan on Tuesday called for an immediate ceasefire in Gaza, reiterating their demand for the establishment of a separate and independent state for the people of Palestine.
Sharif is in Ankara on a two-day official visit to discuss bilateral ties between the two states, the regional situation and economic opportunities.
Pakistan and Turkiye have both repeatedly condemned Israel for its military campaign in Gaza, which has claimed the lives of over 51,000 Palestinians since October 2023.
“We strongly condemn the brutal killings of over 50,000 innocent Palestinians, including women and children,” Sharif said during a joint press conference with Erdogan.
“We have called for an immediate ceasefire and unhindered flow of humanitarian assistance for the Palestinian people. We renewed our call for a viable, independent and contiguous Palestinian state with pre-1967 borders and Al-Quds Al-Sharif as its capital,” he added.
Erdogan praised Pakistan for always adopting a “resolute” stance on the Palestinian issue, noting that Islamabad had given one of the strongest reactions to the ongoing “genocide” in Gaza.
“We will continue to work together toward the establishment of an independent and sovereign Palestinian state on the basis of 1967 borders with East Jerusalem as its capital and on the basis of its territorial integrity,” the Turkish president said.
Erdogan urged Turkish investors to develop joint business projects in Pakistan, saying that he discussed promoting mutual investments in Pakistan with Sharif and the allocation of a free economic zone for Turkish companies in the South Asian country.
“We wish to further develop our relations in the fields of military and defense industry through joint projects,” he said.
In a separate statement, Sharif’s office said he discussed the importance of enhancing economic collaboration with Turkiye, especially through joint ventures and bilateral investments, with Erdogan.
The Prime Minister’s Office said Sharif highlighted opportunities for cooperation in the fields of energy and mining, joint ventures in defense and agri production.
The PMO said Sharif also spoke about enhancing regional and bilateral connectivity to boost trade and deepen cooperation in emerging technologies such as artificial intelligence and cybersecurity.
Pakistan and Turkiye enjoy close cultural, historical and military relations which they are now expanding into the realms of trade, economy and investment as both countries seek to develop their economies.
As long-standing allies and strategic partners, Pakistan and Turkiye maintain a tradition of regular exchanges and have institutionalized leadership-level mechanisms such as the High-Level Strategic Cooperation Council (HLSCC).
The 7th session of the HLSCC was held in Islamabad on Feb 12-13 this year, and co-chaired by Sharif and Erdogan.
Pakistan stresses importance of trade corridors to increase investment at G-24 moot
- Muhammad Aurangzeb attends G-24 Finance Ministers and Central Bank Governors’ Meeting in Washington
- Finance minister stresses importance of greater financial and technical support among developing countries
KARACHI: Pakistan’s Finance Minister Muhammad Aurangzeb on Wednesday stressed the importance of regional trade corridors and enhanced connectivity to ensure increased investment and cooperation among nations, the Finance Division said.
Aurangzeb was speaking at the G-24 Finance Ministers and Central Bank Governors’ Meeting in Washington. The Pakistani finance minister is currently on a visit to Washington to attend the 2025 spring meetings of the IMF and the World Bank Group, where he has held a series of high-level engagements on the sidelines.
Pakistan has increased the importance of regional connectivity in its economic policy in recent years. The South Asian country is part of the China-Pakistan-Economic Corridor (CPEC), a multi-billion-dollar project that connects both countries via an infrastructure network of roads, railways and energy projects. Islamabad is also pushing for greater connectivity for trade and investment with Central Asian countries, Afghanistan, Turkiye and the Middle East.
“He [Aurangzeb] underscored the importance of regional trade corridors, enhanced connectivity and South-South cooperation as key drivers for increasing investment and trade flows,” the Finance Division said.
“He also stressed the need for greater financial and technical support among developing countries to navigate global economic challenges effectively.”
The minister highlighted the recent financial reforms undertaken by his government, pointing out the macroeconomic stability achieved by Pakistan. He lauded the “strong resilience” of the country’s banking system and the government’s ongoing structural reforms, the Finance Division said.
“Minister Aurangzeb emphasized the need to maintain the reform trajectory in view of evolving geopolitical dynamics, demand fragmentation, rising protectionism, and the risks of spillovers and exogenous shocks, including trade tariffs,” it added.
Earlier on Tuesday, Aurangzeb met IMF Managing Director Kristalina Georgieva, reassuring her that Islamabad would stay the reform course mandated by the global lender.
His engagements also included a meeting with World Bank Group President Ajay Banga. Aurangzeb commended the World Bank’s leadership in developing a transformative Country Partnership Framework (CPF) — a decade-long strategic roadmap centered around measurable impacts and outcomes.
During his visit to Washington, Aurangzeb is expected to meet finance ministers from China, the United States, United Kingdom, Saudi Arabia and Turkiye, as well as officials of global credit rating agencies, commercial and investment banks.
