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Pakistan plans more innovative ‘funding products’ as it issues $106 million Shariah-compliant bonds

Pakistan Finance Minister Muhammad Aurangzeb speaks during a Reuters interview at the 2025 annual IMF/World Bank Spring Meetings in Washington DC, US on April 25, 2025. (Reuters/File)
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Updated 18 May 2025
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Pakistan plans more innovative ‘funding products’ as it issues $106 million Shariah-compliant bonds

  • The proceeds of Green Sukuk are going to be used for key water-related infrastructure projects in the country, the finance minister says
  • Pakistan has seen erratic changes in its weather patterns leading to frequent heat waves, untimely rains, and droughts in recent years
Updated 18 May 2025
Ismail Dilawar

KARACHI: Pakistan has issued the inaugural Shariah-compliant Green Sukuk bonds worth Rs30 billion ($106 million), its finance minister said on Friday, amid Islamabad’s plans to launch innovative “funding products” for local and foreign investors.

The Pakistani government this month approved the issuance of Green Sukuk that has been structured to support projects aligned with environmental sustainability, including renewable energy and green infrastructure initiatives, marking a milestone in sustainable finance.

The inaugural $106 million bonds, which will be listed on the Pakistan Stock Exchange, has brought the percentage of the South Asian nation’s Shariah-compliant bonds to about 14 percent in our overall debt profile, according to Finance Minister Muhammad Aurangzeb.

“Climate change is an existential threat for Pakistan,” the minister said at a gong ceremony at the stock market in Karachi. “The proceeds of this Green Sukuk are going to be used for key water-related infrastructure projects across Pakistan.”

Pakistan has seen erratic changes in its weather patterns which have led to frequent heat waves, untimely rains, cyclones and droughts in recent years. Scientists have blamed the events on human-driven climate change. In 2022, devastating floods, blamed on human-driven climate change, killed more than 1,700 Pakistanis, affected another 33 million and caused the country over $30 billion in economic losses.

In November, Pakistan received $500 million from the Asian Development Bank (ADB) as proceeds of a loan for the Climate Change and Disaster Resilience Enhancement Program, while the World Bank in January pledged $20 billion in loans to Pakistan under its 10-year framework that focuses among other things on the country’s increased resilience to climate-related disasters and better food security.

Last week, the International Monetary Fund (IMF) also approved $1.4 billion in climate financing for Pakistan.

“This is all there for us to use vis a vis adaptation, financing but also with very concrete reform measures which are required,” Aurangzeb said.

“One should never be complacent about the financing because the gap that we talk about is a very big gap but we should at least use the financing that is available for now.”

Pakistan is in the process of restructuring and reorganizing our debt management office in line with global best practices, according to the finance minister.

The South Asian country will soon be launching various funding products in terms of the demand that it has to meet domestically as well as with international investors.

“We will continue to engage the investor community very proactively to get your feedback,” he said. “So stay tuned. You will be hearing more from this space as we go forward.”

Topics: Green Sukok Shariah Banking climate financing

Imran Khan’s sons to lobby US, march in Pakistan in new protest movement — sister

Updated 08 July 2025
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Imran Khan’s sons to lobby US, march in Pakistan in new protest movement — sister

  • Khan’s PTI party last week announced new protest campaign after top court denied it reserved parliamentary seats
  • His sister says Khan’s sons will highlight rights situation in Pakistan in US, ‘injustice’ being done to ex-PM
Updated 08 July 2025
Muhammad Ibrahim

ISLAMABAD: Former prime minister Imran Khan’s sons, Sulaiman Khan and Kasim Khan, will lobby in the United States (US) about Pakistan’s human rights record before traveling to the South Asian country to join a protest movement by their father’s Pakistan Tehreek-e-Insaf (PTI) party, Khan’s sister announced on Tuesday.

The PTI last week announced it would launch a nationwide protest movement against the government after the Islamic month of Muharram, days after Pakistan’s top court denied the party reserved parliamentary seats for minorities and women.

Khan’s party has frequently held protests in recent years, demanding a probe into Feb. 2024 election results and the release of Khan, who has been jailed for nearly two years. His sons live in the UK and have not visited Pakistan in years, facing criticism by Khan opponents for not joining demonstrations for their father’s release, which his party was calling supporters from all over the nation to join.

Khan’s sister, Aleema Khan, told reporters in Rawalpindi on Tuesday that his sons, Sulaiman and Kasim, had decided to travel from the United Kingdom (UK) to the US and would eventually arrive in Pakistan to play their role in the PTI’s protest campaign against the government.

“Firstly, they are going to America and they’re telling all their friends, ‘And we will go and tell them [US administration] about the human rights [situation] and what injustice is being done to their father [in Pakistan]’,” Aleema said.

“Secondly, Sulaiman [and] Qasim have said, ‘After that, we will come to Pakistan.’ And they want to play their part in the [protest] movement.”

This is not the first time Khan’s sons have spoken about Pakistan’s domestic politics and their father, who has been in jail on corruption and other charges.

In a rare interview with business influencer and citizen journalist Mario Nawfal in May, they had urged US President Donald Trump and the “people of influence” around the world to help free their father from prison, speaking of alleged “suppression of democracy” in Pakistan and a lack of basic facilities for Khan in his prison cell.

Khan’s PTI has held frequent protests demanding his release and against the Pakistani government over what it says were rigged general elections in Feb. 2024 and a campaign to subdue PTI and its support base since Khan’s ouster from the PM’s office in April 2022.

Pakistani authorities deny the allegations and accuse the ex-premier and his party of leading violent anti-government protests in the past, particularly in May 2023 and Nov. 2024. Hundreds of PTI supporters were jailed after riots allegedly ordered by the party against the army on May 9, 2023, while the government says four troops were killed in protests in November last year to demand Khan’s release. The PTI denies instigating followers to violence.

The PTI announced the latest round of protests after the Supreme Court’s constitutional bench on June 27 ruled that the party was not entitled to reserved seats in the national and provincial assemblies, upholding an earlier verdict by the Peshawar High Court. The dispute arose after the PTI lost its electoral symbol ahead of the February 8, 2024 national polls and its candidates contested as independents.

Despite PTI-backed candidates winning the most general seats, the party was denied reserved seats for women and minorities, which are allocated to political parties based on proportional representation, by the Election Commission of Pakistan (ECP).

The government lost its two-thirds majority in parliament in July 2024 when the top court reversed the ECP’s decision, terming it unconstitutional and ordering the reserved seats to be allocated to PTI. The ECP and the political parties had filed review petitions, which were accepted by the top court last week.

Topics: Imran Khan Pakistan Tehreek-e-Insaf (PTI) party

Chinese air chief hails Pakistan’s ‘textbook’ response in recent India conflict — ISPR

Updated 08 July 2025
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Chinese air chief hails Pakistan’s ‘textbook’ response in recent India conflict — ISPR

  • PLA Air Force chief praises ‘precision and discipline’ of PAF in face of Indian aggression
  • High-level visit follows Indian claims Beijing gave Pakistan ‘live inputs’ during four-day war
Updated 08 July 2025
Arab News Pakistan

ISLAMABAD: The Chinese air chief has praised Pakistan’s military response during its May conflict with India as a “textbook example” of modern warfare, the Pakistan army said on Tuesday, quoting remarks that come amid renewed Indian allegations of Chinese support to Islamabad during their latest conflict in May. 

Lt. Gen. Wang Gang, chief of staff of the People’s Liberation Army Air Force (PLAAF), made the comments during a high-level visit to Islamabad on Monday, where he met Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu and discussed regional security, airpower cooperation, and bilateral military ties.

“He praised the decisive and measured response delivered by PAF pilots under the resolute leadership of the Air Chief, describing it as a textbook example of precision, discipline and courage in the face of unprovoked aggression,” the Pakistani army said in an official statement, quoting Wang. 

The Chinese general “paid rich tribute to the exemplary performance” of the PAF during the conflict with India, which took place from May 7 to 10 and involved drones, missiles, and artillery fire before a US-brokered ceasefire ended hostilities.

Wang’s remarks follow claims by Indian Army Deputy Chief Lt. Gen. Rahul Singh, who last week alleged China had provided Pakistan with “live inputs” about Indian military positions during the May fighting. Pakistan’s army chief Field Marshal Syed Asim Munir has rejected the claim as “factually incorrect” and a “shoddy attempt” to explain India’s battlefield failures.

While Beijing has not officially responded to the Indian allegations, the Chinese delegation’s strong endorsement of PAF’s conduct has added diplomatic weight to its deepening military alignment with Islamabad.

“Lt. Gen. Wang Gang expressed deep appreciation for the high state of operational readiness and the cutting-edge capabilities of Pakistan Air Force,” the official statement said, adding that he was “particularly impressed by PAF’s seamless integration of Multi-Domain Operations, terming it a hallmark of modern air warfare.”

The visiting delegation was also given a detailed briefing on the PAF’s evolving force structure, modernization plans and strategic initiatives.

Air Chief Marshal Sidhu “reiterated that Pakistan and China enjoy historic and time-tested ties rooted in mutual trust, strategic convergence and shared aspirations for regional peace & stability,” the statement added.

Pakistan and China have long collaborated on airpower development, including co-producing the JF-17 fighter jet and holding joint training exercises. But their military alignment has grown closer in recent years, particularly amid rising tensions with India, with whom both have longstanding disputes. The latest visit reinforces that trajectory, military observers say.

“The meeting stands as a testament to the shared resolve of Pakistan and China to advance their time-tested strategic partnership through deepened cooperation and innovation-driven collaboration,” the Pakistani military said.

In an address this week, Munir said India had failed to achieve its stated military objectives in “Operation Sindoor,” New Delhi’s campaign during the May conflict.

Pakistan said it launched “Operation Bunyan Al Marsoos” in retaliation for Indian attacks on civilian and military sites. India claimed it had only targeted militant infrastructure.

Tensions between the neighbors had escalated into a brief war after an April 2025 militant attack in Indian-administered Kashmir killed several tourists, an incident New Delhi blamed on Pakistan, which Islamabad denied.
 

Topics: Chinese air chief

Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal

Updated 08 July 2025
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Pakistan prequalifies four investors for PIA, greenlights Roosevelt Hotel joint venture deal

  • Pakistani state-owned enterprises lose over $2.87 billion annually, total government support pushes burden past $3.59 billion
  • PIA has roughly accumulated over $2.5 billion losses, while Roosevelt remains one of Pakistan’s most politically sensitive assets
Updated 08 July 2025
Ismail Dilawar

KARACHI: Pakistan has prequalified four investors for the sale of Pakistan International Airlines (PIA), while its Cabinet Committee on Privatization (CCOP) has approved the transaction structure for the denationalization of the Roosevelt Hotel in New York under a joint venture, the ministry of privatization said on Tuesday.

Pakistan has been seeking to sell a 51-100 percent stake in the struggling national airline to raise funds and reform cash-draining, state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. It would be the country’s first major privatization in nearly two decades.

Among the bidding groups, one is a consortium of major industrial firms Lucky Cement, Hub Power Holdings, Kohat Cement and Metro Ventures. Another is led by investment firm Arif Habib Corp. and includes fertilizer producer Fatima Fertilizer, private education operator The City School, and real estate firm Lake City Holdings. Additionally, Fauji Fertilizer Company, a military-backed conglomerate, and Pakistani airline Airblue, have been approved to bid for PIA.

“The prequalified parties will now proceed to the buy-side due diligence phase — a critical next step in the transparent and competitive privatization process of PIACL,” the privatization commission’s statement said.

PIA, once a respected carrier in Asia, has been propped up by taxpayers for decades due to political interference, corruption and inefficiencies. The airline’s privatization has repeatedly collapsed amid union resistance, legal hurdles and low investor appetite.

Pakistani state-owned enterprises post annual losses of more than Rs800 billion ($2.87 billion), and when subsidies, grants and other support are included, the burden swells beyond Rs1 trillion ($3.59 billion), Finance Minister Muhammad Aurangzeb told parliament while presenting the budget for fiscal year 2025–26 earlier this month.

PIA has been one of the government’s most costly liabilities, which has accumulated over $2.5 billion in losses in roughly a decade and been surviving on repeated bailouts that have weighed heavily on Pakistan’s strained budget.

Last month, five consortiums submitted expressions of interest for a 51–100 percent stake in PIA after the government restructured its balance sheet to make the deal more attractive. It also scrapped the sales tax on leased aircraft and is providing limited protection from legal and tax claims. Around 80 percent of the airline’s debt has been transferred to the state.

ROOSEVELT HOTEL

Separately, the CCOP approved the transaction structure for Roosevelt Hotel under a “Joint Venture model with multiple options.”

“This option is aimed at maximizing long-term value for the country, while ensuring flexibility, multiple exit opportunities, and minimizing future fiscal exposure,” the privatization commission said.

How much money the hotel ultimately brings in, and its overall valuation, depends on the type of transaction structure adopted, Privatization Commission Chairman Muhammad Ali told Arab News in an interview last month. If the government formed a joint venture with a private investor, sharing both the risks and future profits, the hotel could be worth four to five times more than its as-is valuation, he said at the time.

“So, depending on what sort of structure you have, how much risk you take, how much effort the government puts in, we can make a lot of money from this asset,” the privatization chief had said.

The Roosevelt, a 1,015-room historic hotel in Midtown Manhattan, has long been one of Pakistan’s most prominent but politically sensitive overseas assets. Acquired by Pakistan International Airlines Investment Limited (PIAIL) in 1979, the hotel occupies a full city block on Madison Avenue and 45th Street. Over the past two decades, successive Pakistani governments have floated plans to sell, lease, or redevelop the property, but no proposal has advanced beyond early-stage planning.

Operations at the Roosevelt were suspended in 2020 following steep financial losses during the COVID-19 pandemic. In 2023, Pakistan entered a short-term lease with the City of New York to use the property as a temporary shelter for asylum seekers, generating more than $220 million in projected rental income. That agreement ended in 2024 and no new revenue stream has since been announced.

The Roosevelt Hotel is one of several state assets the government hopes will contribute to its target of raising Rs86 billion ($306 million) in privatization proceeds during the fiscal year starting July 1, alongside the sale of PIA and three electricity distribution companies.

Topics: Pakistan International Airline (PIA) Roosevelt Hotel

Pakistani Internet regulator, Meta join forces to tackle militancy in digital sphere

Updated 08 July 2025
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Pakistani Internet regulator, Meta join forces to tackle militancy in digital sphere

  • The two sides bring together experts from Facebook, Instagram and WhatsApp as well as Pakistani government and law enforcement officials for a workshop
  • The event focused on Meta’s evolving policies to tackle militancy-related content and enhance cooperation between digital platforms, LEAs and regulators
Updated 08 July 2025
Hasaan Ali Khan

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) and Meta have organized a high-level workshop, titled “Counter-Terrorism in the Digital Age,” the PTA said on Tuesday, aiming to ensure safe use on online spaces.

The event brought together experts from Facebook, Instagram and WhatsApp along with representatives from key Pakistani government institutions and law enforcement agencies (LEAs).

The workshop focused on Meta’s evolving policies for tackling militancy-related content and enhancing cooperation between digital platforms, LEAs and regulators, according to the PTA.

“Collaboration with global platforms like Meta is vital to prevent the misuse of online spaces by extremist elements,” PTA Chairman Hafeez-ur-Rehman said, reaffirming the PTA’s commitment to building a safer digital environment.

The development comes amid a surge in militancy in Pakistan’s western regions by religiously motivated groups like the Pakistani Taliban and Daesh as well as ethno-nationalist Baloch separatist groups.

Pakistani officials have in the past said that these militant groups also used social media platforms to “brainwash” and “recruit” people, including women, in their ranks to carry out attacks. Militant attacks in Pakistan more than doubled from 517 in 2023 to 1,099 in 2024.

Tuesday’s workshop was part of the PTA’s broader strategy to promote responsible online behavior and enhance national digital resilience, at which the participants discussed various mechanisms for complaint handling and content escalation, and engaged with Meta’s policy specialists on various topics.

“Joint efforts like this are key to creating safer digital spaces while upholding community standards and fundamental rights,” Meta’s Dangerous Organizations and Individuals (DOI) Policy lead Dr. Nawab Osman said.

Topics: Pakistan Telecommunication Authority

Pakistan court orders YouTube to block channels of ex-PM Imran Khan, journalists

Updated 08 July 2025
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Pakistan court orders YouTube to block channels of ex-PM Imran Khan, journalists

  • YouTube notifies journalists of court order, warns action may follow without further notice
  • The order from a district magistrate directs the platform to block 27 YouTube channels
Updated 08 July 2025
NAIMAT KHAN

KARACHI: A number of Pakistani journalists said on Tuesday they received notifications from YouTube, citing a court order from Islamabad directing the blocking of their channels, along with those of jailed former Prime Minister Imran Khan and his Pakistan Tehreek-e-Insaf (PTI) party.

According to notices seen by Arab News, the US-based video-sharing platform said it had received a legal removal request referencing a court order dated June 24, 2025, in Enquiry No. 717/2025.

The list of affected channels includes those of senior journalists Matiullah Jan, Habib Akram, Sabir Shakir, Asad Ali Toor, Ahmed Noorani and at least 20 others, alongside Khan’s and PTI’s official YouTube channels.

Zulfi Bukhari, a close aide to Khan, told Arab News by phone that PTI’s channels had not yet received any formal notification. However, several journalists confirmed receiving takedown notices via YouTube and vowed to challenge the court’s directive.

“I am in contact with fellow journalists whose channels have been served with similar notices, and we intend to challenge this in court,” said Habib Akram, a Lahore-based anchor and political commentator, adding the order had been issued without any prior notice or summons from the Islamabad court.

“The decision appears to lack any clear legal basis and seems to be an apparent attempt to suppress independent journalism,” he added.

The order, issued by Judicial Magistrate Abbas Shah in Islamabad, instructed YouTube’s parent company, Google LLC, to block 27 channels for allegedly violating Pakistan’s Prevention of Electronic Crimes Act and other penal laws.

“You may choose to act on the said content in term of the aforesaid court order,” read a notice issued by YouTube. “If you fail to do so, as per our local law obligation, we may comply with the request without further notice to you.”

Asad Ali Toor, a journalist based in Islamabad whose name appears on the list, criticized both the court and the National Cyber Crime Investigation Agency (NCCIA) for acting without giving him a chance to be heard.

“For the past three months, NCCIA has also frozen my and my family’s bank accounts without any hearing,” he said.

Toor attributed such actions to his “critical reporting” on sensitive issues like enforced disappearances and institutional overreach. He said he had previously received notices about specific videos, but this was the first time his entire channel had been targeted.

Matiullah Jan voiced concern about the broader implications of the move.

“I believe YouTube should not block any channel solely on the basis of an inquiry without a court order,” he said. “If this becomes a norm, it could set a dangerous precedent globally.”

Despite multiple requests, the Ministries of Interior and Information & Broadcasting did not respond to Arab News queries seeking clarification on the government’s role in the matter or the legal grounds for the request to YouTube.

The court order referenced by YouTube states that during an inquiry under Section 94 of the Criminal Procedure Code, “evidence regarding YouTube channels” was deemed necessary, and their content constituted offenses under Pakistan’s cybercrime laws.

Digital rights groups and press freedom watchdogs have frequently criticized the Pakistani government for using vague legal provisions to stifle dissent. In its 2024 report, Reporters Without Borders (RSF) ranked Pakistan 152nd out of 180 countries on the World Press

Freedom Index, citing growing censorship, legal harassment of journalists, and tightening control over digital platforms.

Journalists now fear the court-backed move could deepen digital censorship in the country.

“We are not only being silenced, but also criminalized for doing our job,” said Toor. “This is not just about YouTube. It’s about the future of press freedom in Pakistan.”

Topics: Imran Khan PTI Youtube Asad Toor matiullah jan

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