Pakistan unveils economic plan for sustainable growth amid challenges

Pakistan Prime Minister Shehbaz Sharif addresses the launch ceremony of National Economic Transformation Plan in Islamabad, Pakistan, on December 31, 2024. (PMO)
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Updated 31 December 2024
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Pakistan unveils economic plan for sustainable growth amid challenges

  • Economic transformation plan to focus on export-led growth so Pakistan escapes boom-bust economic cycle, says finmin
  • Development takes place as Pakistan grapples with economic crisis that has triggered inflation, drained its foreign reserves

ISLAMABAD: Pakistan’s government is set to launch its five-year homegrown National Economic Plan today, Tuesday, targeting sustainable growth and development in the long-term, Finance Minister Muhammad Aurangzeb said amid Islamabad’s struggle to ward off its macroeconomic crisis. 

Pakistan’s government has attempted to steer itself out of a prolonged macroeconomic crisis that has weakened the South Asian country’s currency and drained its foreign exchange reserves over the past two years. 

Pakistan’s Planning Minister Ahsan Iqbal said in July that the National Economic Plan will be based on the 5Es framework (exports, energy, economic growth, education and equality), adding that it would aim to foster stability and lay the foundation for future growth in Pakistan.

In a video message, Aurangzeb said the plan has been aptly titled “Uraan Pakistan” which means “Flying Pakistan,” and aims to take the country’s prevalent macroeconomic stability to sustainable growth. 

“There are three to four key pillars of this [economic plan],” Aurangzeb said. “First of all, our growth will be export-led so that we do not go into the boom-bust cycle that we have been going through for the past few eras. Secondly, the private sector has to lead this country,” he added. 

Pakistan agreed to a 37-month, $7 billion bailout program from the International Monetary Fund (IMF) this year, promising the lender financial reforms in exchange for it. These reforms include increasing the tax base, regulating the energy sector and handing over loss-making state owned enterprises to the private sector. 

“The structural reforms that we have started, we have to take them through the finishing line,” the minister said. “Whether that is on the taxation side, whether its on the energy side, whether it’s our SOE reforms, whether it’s our privatization agenda.”

Aurangzeb vowed that the plan would put Pakistan on an upward economic trajectory in the next two to three years, saying it would ensure that this will be the last IMF program Islamabad resorts to. 

The development takes place amid Prime Minister Shehbaz Sharif’s increased efforts for greater collaboration in trade, defense, agriculture and other key sectors of the economy with regional allies to attract foreign investment and brighten Pakistan’s economic prospects.

In its move to attract foreign investment in key sectors, Pakistan has enhanced its bilateral trade and investment ties with Saudi Arabia, the United Arab Emirates, Russia, Central Asian states and other Gulf countries. 

Pakistan suffered a sovereign default before Islamabad clinched a last-gasp $3 billion bailout program from the International Monetary Fund (IMF) in 2023 that helped its economy stay afloat. Pakistan’s Finance Minister Muhammad Aurangzeb has repeatedly said Islamabad needs to adopt an export-led economy to achieve long-term and sustainable economic growth.


Pakistan court expected to announce verdict today in land bribe case against ex-PM Khan

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Pakistan court expected to announce verdict today in land bribe case against ex-PM Khan

  • Khan, wife are accused of receiving land worth millions of dollars as a bribe from real estate tycoon
  • The announcement of the verdict in the Al-Qadir Trust case has already been postponed thrice before

ISLAMABAD: An accountability court in Pakistan is expected to announce a much-anticipated verdict today, Friday, in a case in which former prime minister Imran Khan is accused of receiving land as a bribe by misusing his office during his premiership.

The announcement of the verdict in the Al-Qadir Trust case has already been postponed thrice before, drawing criticism from Khan’s Pakistan Tehreek-e-Insaf (PTI) party. The case involves a charitable trust set up by Khan and his third wife Bushra Khan in 2018 when he was still in office.

Pakistani authorities say the trust was a front for the couple to receive valuable land as a bribe from a real estate developer, Malik Riaz Hussain, who is one of Pakistan’s richest and most powerful businessmen. Hussain, like Khan and Bushra, denies any wrongdoing.

After the third postponement of the verdict on Jan. 13, Pakistan Information Minister Attaullah Tarar had accused Khan of using “delaying tactics” in the case and not showing up at the court for the announcement of the verdict, while

Khan’s party said the delay raised questions on merits of the trial.

“Imran Khan is being tried for establishing Al-Qadir University, which seems to scare the current regime, as they feel threatened by the very notion of an enlightened nation, equipped to determine right from wrong,” the PTI said in an X post on Friday.

Senator Talal Chaudhry, a member of the ruling Pakistan Muslim League-Nawaz (PML-N) party, said on Jan. 13 the Al-Qadir Trust case was an “open-and-shut case” and there was no possibility of a deal in it.

“Whether the decision is made today or tomorrow, it is a clear verdict, [this is] an open-and-shut case,” he said. “This is about Pakistan and there is no possibility of a pardon.”

Gohar Ali Khan, the PTI chairman and one of Khan’s lawyers, told reporters on Jan. 13 that his party had nothing to do with the postponement of the verdict.

“When decisions are based on political considerations or to put pressure, then everyone can see the writing on the wall,” Gohar said.

“We came prepared that the verdict would be released today but the judge has postponed it of his own accord.”

Authorities say the Al-Qadir Trust scheme originated with 190 million pounds repatriated to Pakistan in 2019 by Britain after Hussain forfeited cash and assets to settle a British probe into whether they were proceeds of crime. Instead of putting it in Pakistan’s treasury, Khan’s government is accused of using the money to pay fines levied by a court against Hussain for illegal acquisition of government lands at below-market value for development in Karachi.

Khan, who has been in jail since August 2023 and faces a slew of legal cases, says all charges against him are politically motivated and being backed by his political rivals led by Prime Minister Shehbaz Sharif and the country’s all-powerful military. Both deny the allegations.


Pakistan central bank says UAE has confirmed rollover of $2 billion deposits

Updated 8 min 28 sec ago
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Pakistan central bank says UAE has confirmed rollover of $2 billion deposits

  • The development comes ahead of a review of Pakistan’s $7 billion IMF program, expected in Feb.
  • The UAE has rolled over deposits with Pakistan since 2023, helping it shore up its foreign reserves

ISLAMABAD: The United Arab Emirates (UAE) has confirmed a rollover of $2 billion deposits with Pakistan, the Pakistani central bank said on Thursday.

The Gulf country has rolled over the deposits with Pakistan’s central bank since 2023, helping the South Asian country shore up its foreign exchange reserves, strengthen its currency and secure financial bailouts from the International Monetary Fund (IMF).

Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles and the South Asian country secured a $7 billion, 37-month loan program from the IMF in Sept. last year. The next review of the program is expected in February.

“UAE has confirmed rollover of its two deposits of $1.0 billion each placed with State Bank of Pakistan for another one year, which were maturing in January 2025,” the Pakistani central bank said in a statement.

The development comes more than a week after Prime Minister Shehbaz Sharif met UAE President Sheikh Mohamed bin Zayed Al-Nahyan in the Pakistani city of Rahim Yar Khan. Sharif later told his cabinet that the UAE president had agreed to roll over the $2 billion loan, which was due to mature this month.

The UAE is Pakistan’s third-largest trading partner after China and the United States (US), and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry. It is also home to more than a million Pakistani expatriates, who are one of the major sources of remittances to the South Asian country.

In January last year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos, Switzerland to attend 54th summit of the World Economic Forum (WEF).

Pakistan’s foreign exchange reserves stood at $16.45 billion as of January 10, with SBP-held reserves at $11.73 billion, according to the central bank.

In the past, Pakistan has also secured external financing, a key condition for IMF bailouts, from longtime allies Saudi Arabia and China.


Pakistani airline says ad showing plane flying toward Eiffel Tower never meant to evoke 9/11

Updated 52 min 50 sec ago
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Pakistani airline says ad showing plane flying toward Eiffel Tower never meant to evoke 9/11

  • The illustration showed a plane superimposed over the French flag and tilted toward the landmark, with the words ‘Paris, we’re coming today’
  • The advert was posted on X by Pakistan International Airlines, or PIA, on Jan. 10, the day that the company resumed flights to European Union

ISLAMABAD: Pakistan’s national airline said Thursday that an advertisement showing a plane heading toward the Eiffel Tower was never intended to evoke the memories of the Sept. 11 attacks.

The illustration, not in video format, shows a plane superimposed over the French flag and tilted toward the Paris landmark, with the words “Paris, we’re coming today.”

The ad was posted on X by Pakistan International Airlines, or PIA, on Jan. 10, the day that the company resumed flights to European Union countries after a four-year ban by the bloc’s aviation safety agency.

Many social media users immediately decried the ad, and Pakistan’s prime minister called for an inquiry. On Tuesday, Deputy Prime Minister Ishaq Dar described the ad as an act of “stupidity.”

PIA spokesman Abdullah Hafeez said Thursday that the ad, which hasn’t been deleted and has more than 21.2 million views, was only ever meant to celebrate that the airline was resuming flights to Europe, and never intended to harm 9/11 survivors or victims’ families.

Hafeez told The Associated Press that he was surprised over the criticism. But he said that “we apologize to those who feel the advertisement hurt them.

“We want to make it clear that we had no intention to hurt the feelings of anyone,” Hafeez said.

He said that the Eifel Tower was shown in the ad because it’s one of the best places in the world.

Curbs on PIA had been imposed in 2020 after 97 people died when a PIA plane crashed in Karachi in southern Pakistan. Then Aviation Minister Ghulam Sarwar Khan said that an investigation into the crash found that nearly a third of

Pakistani pilots had cheated on their pilot’s exams. A government investigation later concluded that the crash was caused by pilot error.

The ban caused a loss of nearly $150 million a year in revenue for PIA, officials say.

Pakistan has some connections to the Sept. 11 attacks. One of the 9/11 masterminds, Khalid Sheikh Mohammed, was detained in the country in 2003. In 2011, Osama bin Laden was killed in a US special forces raid in Pakistan.


‘Tremendous response’: Pakistani companies say several MoUs signed with Saudi firms at minerals summit

Updated 17 January 2025
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‘Tremendous response’: Pakistani companies say several MoUs signed with Saudi firms at minerals summit

  • Future Minerals Forum, world’s premier platform for minerals, was held in Riyadh from Jan.14-16 
  • Pakistan in recent months has intensified efforts to attract foreign investment in its mining sector

ISLAMABAD: Pakistani companies signed several agreements and joint ventures with Saudi firms during this week’s three-day Future Minerals Forum (FMF) summit in Riyadh, members of the delegation confirmed on Thursday, praising the “tremendous response” that the Pakistan Pavilion received at the Kingdom’s capital. 

 The Future Minerals Forum (FMF), the world’s premier platform for minerals, was held in Riyadh from Jan. 14-16. It brought together governments, international organizations and key stakeholders to collectively shape the future of the global minerals industry. With 14,000 participants from 178 countries, including 75 government representatives, FMF says it serves as a catalyst for global collaboration.

Pakistan’s Petroleum Minister Dr. Musadik Malik led a delegation of Pakistani companies and businesspersons at the summit. Pakistan set up a pavilion at the FMF where 12 leading companies, including the Pakistan Petroleum Limited (PPL), Mari Petroleum Company, Oil & Gas Development Company Limited (OGDCL), Bolan Mining Enterprises, HTMA Mining and Wah Nobel Group, showcased their potential in the country’s mining sector.

“Pakistan Pavilion received a tremendous response during three days at FMF and many deals, joint ventures, and MoUs were signed with different Saudi firms,” Syed Mahmood ul Hassan, the general manager of Pakistan’s premier natural gas supplier PPL, and focal person of the country’s pavilion at the FMF summit, told Arab News over the phone from Riyadh. 

He said around 35 Saudi firms from across the Kingdom actively engaged with Pakistani companies at the forum.

“About four MoUs have been signed by us and it has been very helpful in seeking collaboration, joint ventures and investments,” Hassan said. “We hope that in the future we will continue to materialize whatever talks we have conducted.”

Arslan Younus, business development manager at Wah Nobel Group, a Pakistani company engaged in producing a wide range of commercial explosives, detonators and drilling and blasting accessories, said the company signed four MoUs with Saudi firms during the FMF Summit.

“We have signed four MOUs with Saudi mining companies to offer our drilling and blasting services for their upcoming mining and mineral projects in the Kingdom,” he told Arab News. 

Younus said these agreements were signed with the Saudi Gold Refinery, the Kingdom’s largest mining company, the Saudi Mining Company, a Saudi incubation firm and AMAK mining company. 

With numerous projects emerging in the Kingdom, particularly under Saudi Vision 2030 in the mining and mineral sectors, Younus expressed hope for more collaborations. 

“Now we are entering the Saudi market through joint ventures and are optimistic about establishing strong collaborations,” he said. 

Saudi Arabia’s Mining Minister Bandar Alkhorayef told Reuters on Wednesday that mining company Manara Minerals was looking at investing in Pakistan’s Reko Diq mine, saying that the Saudi Development Fund could contribute over $100 million to Pakistan’s mining infrastructure. 

Located in the country’s southwest, Reko Diq is considered one of the world’s largest underdeveloped copper-gold areas by global mining company Barrick Gold Corp. 

Saudi Arabia has offered Pakistan a 15 percent investment stake in the copper and gold mine project, Pakistan’s state media reported in September 2024. 

Muhammad Yousaf, the focal person for mines and minerals at the Trade Development Authority of Pakistan, said the South Asian country offered highly attractive investment opportunities for Saudi investors, which is why leading Pakistani companies participated in the summit to capitalize on the opportunities offered by Riyadh.  

“All of these companies are big names in mines and minerals exploration,” Yousaf told Arab News. 

He said the Pakistani delegation had “very good discussions” with Saudi company Manara Minerals, hoping the investment would realize “soon.” 


Pakistan Navy hands over command of multi-nation task force to New Zealand 

Updated 16 January 2025
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Pakistan Navy hands over command of multi-nation task force to New Zealand 

  • Combined Task Force 150 conducts maritime security operations outside the Arabian Gulf
  • Pakistan Navy says intercepted narcotics with street value exceeding $50 million in six months

ISLAMABAD: Pakistan’s navy handed over command of the Combined Task Force (CTF) 150 multi-nation task force to New Zealand on Thursday, the navy said in a statement, after heading it for six months during which it boosted cooperation with regional allies and intercepted narcotics worth millions of dollars. 
CTF 150 was established in February 2002 and is one of five operational task forces under the Combined Maritime Forces, the largest multi-nation naval alliance in the world. CTF 150 conducts maritime security operations outside the Arabian Gulf against threats from non-state actors.
Pakistan Navy Commodore Asum Sohail Malik turned over command to Royal New Zealand Navy Commodore Rodger Ward during a change of command ceremony at the Naval Support Activity in Bahrain. Pakistan had taken command of CTF 150 in July 2024. 
The navy said during Pakistan’s tenure as head of the CTF 150, the task force conducted numerous maritime security operations. Pakistan Navy and Pakistan Maritime Security Agency ships independently interdicted three narcotics-laden dhows, the navy’s media wing said. 
“Collectively, Pakistan Navy and CMF intercepted approximately 10 tons of narcotics, with a street value exceeding 50 million US dollars over the last six months,” Pakistan Navy said in a statement. 
It said that under Pakistan Navy’s leadership, CTF 150 also actively fostered regional collaboration, securing the participation of ships from Kenya Navy and Royal Navy of Oman in CTF 150 operations.
The incoming Commander of the CTF 150, Commodore Ward, expressed his gratitude to Pakistan Navy for its exemplary leadership and operational successes during its tenure.
The new CTF 150 commander has an extensive background in maritime operations, with deployments to Malaysia, the Solomon Islands, Afghanistan, and Iraq, the CMF said in a statement.
This will mark the second time New Zealand has taken command of CTF 150.