Pakistan signs rail project pact with Afghanistan, Uzbekistan in push for regional connectivity

Pakistan Foreign Minister Ishaq Dar meets his Afghan and Uzbek counterparts in Kabul on July 17, 2025, ahead of the signing of a framework agreement on a joint railway project. (Handout/MOFA)
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Updated 17 July 2025
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Pakistan signs rail project pact with Afghanistan, Uzbekistan in push for regional connectivity

  • Agreement will launch joint feasibility study for UAP railway link connecting Central Asia to Pakistani ports
  • Pact seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Thursday signed a framework agreement to conduct a joint feasibility study for the Uzbekistan-Afghanistan-Pakistan (UAP) Railway Project in Kabul, in a major push for regional connectivity with Central Asia.

The UAP Railway Project aims to establish a vital trade and transit corridor linking Uzbekistan with Pakistan via Afghanistan, offering the Central Asian republics direct access to Pakistani seaports. The rail link is expected to significantly boost regional connectivity, facilitate trade and contribute to long-term economic integration and political stability in the broader region.

For Pakistan, which seeks to position itself as a regional connectivity hub, the UAP railway is also strategically important in strengthening economic ties with Central Asia and securing stable transit through Afghanistan, a country whose internal security dynamics continue to impact broader regional development goals.

“I congratulate the people & governments of Pakistan, Afghanistan, and Uzbekistan on the signing of the Framework Agreement on the Joint Feasibility Study for the Naibabad–Kharlachi rail link under the Uzbek–Afghan–Pak (UAP) Railway Corridor,” Dar wrote on social media platform X.

Dar described the signing of the agreement as a “major milestone” for advancing regional connectivity and economic integration, pointing out that the project would connect Central Asian countries to Pakistani seaports through Afghanistan.

He thanked the foreign minister of Uzbekistan and Afghanistan for their support in ensuring the timely signing of the framework agreement.

Uzbekistan and Afghanistan signed an agreement in 2017 to extend a railroad connecting the two countries that would eventually give Uzbekistan a direct link to seaports. Landlocked Uzbekistan’s access to marine shipping is very limited.

DAR MEETS AFGHAN LEADERS

Dar, who also serves as Pakistan’s foreign minister, met his Afghan counterpart Amir Khan Muttaqi at the sidelines of the framework agreement signing to discuss bilateral cooperation and security.

He also met Afghan Prime Minister Muhammad Hassan Akhund to discuss trade, security and other matters between the two countries.

“The two leaders exchanged views on issues of mutual interest, including peace and security, trade and transit cooperation and regional connectivity,” Pakistan’s foreign office said in an earlier statement.




Pakistan Deputy Prime Minister Ishaq Dar meets Afghan Prime Minister Mullah Muhammad Hassan Akhund in Kabul on July 17, 2025, on the sidelines of the signing of the Uzbek-Afghan-Pak railway agreement. (Handout/MOFA)

Talks between the two countries’ officials took place amid a tentative thaw in Pakistan-Afghanistan relations, which have been strained in recent years due to a surge in militancy in Pakistan that Islamabad blames on Afghan-based insurgent groups. Kabul denies the allegations.

Efforts to repair the fractured ties between Islamabad and Kabul gained momentum during a China-hosted trilateral dialogue in Beijing in May between the foreign ministers of Pakistan, Afghanistan and China.

Islamabad and Kabul agreed in principle to send ambassadors to each other’s countries as soon as possible, Chinese Foreign Minister Wang Yi had announced after the summit.

The upcoming signing of the UAP railway pact, a long-discussed infrastructure project championed by all three governments, is also being seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul.


Pakistan’s Pak-Qatar Family Takaful to raise $3.9 million in Islamic insurance IPO

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Pakistan’s Pak-Qatar Family Takaful to raise $3.9 million in Islamic insurance IPO

  • Company to offer 50 million shares with a price band of $0.05–0.07 per share
  • Proceeds to support capital needs, digital expansion, new customer-focused products

ISLAMABAD: Pak-Qatar Family Takaful Limited, Pakistan’s largest dedicated Islamic insurance provider, will launch an initial public offering this month to raise about Rs1.1 billion ($3.9 million), with book-building scheduled for Dec. 11–12 and registration opening Dec. 8, the company said in a statement on Friday.

The offer will make Pak-Qatar the first dedicated family takaful operator to list on the Pakistan Stock Exchange, marking a notable development for the country’s insurance landscape, where penetration remains low by global standards. The IPO comes as the company looks to scale operations, strengthen technology channels and widen product distribution in a market where Shariah-compliant savings and protection instruments have grown steadily.

“Pak Qatar Family Takaful Limited is all set to list itself at Pakistan Stock Exchange through an IPO with registration starting 08th December. Through this IPO PQFTL is aiming to raise approx. Rs. 1.1 billion,” the statement said.

The company will offer 50 million shares, starting at a floor price of Rs14 per share ($0.05), with a ceiling of Rs21 per share ($0.07). Of the total issue, 37.5 million shares will be allocated to institutional investors, while 12.5 million shares will be offered to the general public.

Lead manager Shahid Ali Habib of Arif Habib Ltd. said investor response has been strong as the offering represents a sector first. According to the statement, proceeds will be used to meet capital requirements, develop new products and accelerate digital outreach.

Pak-Qatar Family Takaful is the country’s first and largest dedicated shariah-compliant family risk-protection provider, holding 44 percent of the total family takaful market and more than 90 percent of the fully dedicated segment, with a nationwide presence of 73 branches and 1,971 field representatives.

Despite Pakistan’s population size, insurance penetration stood at just 0.7 percent in 2024, the company noted, adding that rising awareness and economic shifts leave room for growth compared with advanced markets where penetration has crossed 10%.