Bahrain awards top state honor to Pakistan PM as leaders discuss deeper trade, security ties

Bahrain’s King Hamad bin Isa Al Khalifa confers the Order of Bahrain (First Class) to Pakistani Prime Minister Shehbaz Sharif (left) during a meeting in Manama, Bahrain, on November 26, 2025. (PID)
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Updated 26 November 2025
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Bahrain awards top state honor to Pakistan PM as leaders discuss deeper trade, security ties

  • King Hamad confers Order of Bahrain (First Class) on PM Sharif during meeting in Manama
  • Leaders review political, economic and defense cooperation, discuss Gaza, trade expansion

ISLAMABAD: Bahrain’s King Hamad bin Isa Al Khalifa on Wednesday awarded the Order of Bahrain (First Class) to Pakistani Prime Minister Shehbaz Sharif during a meeting in Manama, where the two leaders reaffirmed their historic partnership and reviewed political, economic and defense cooperation, the Prime Minister’s Office (PMO) said.

Pakistan and Bahrain established diplomatic ties in 1971 and maintain close economic, labor and defense cooperation. Bahrain hosts more than 120,000 Pakistanis, making it an important source of remittances for Islamabad. 

Economic engagement between the two nations has accelerated this year following the Pakistan–Bahrain Investment Summit, where firms signed $13 million worth of contracts, and with the Pakistan–GCC Free Trade Agreement now at an advanced stage of finalization.

“The King of Bahrain conferred upon Prime Minister Muhammad Shehbaz Sharif the Order of Bahrain (first class), which is the highest award given by Bahrain to Heads of States and governments,” Sharif’s office said after he met Hamad. 

The monarch highlighted a historic connection between the two countries, noting that the Kingdom of Bahrain “had the privilege of being represented at a legal forum by none other than Quaid-e-Azam Muhammad Ali Jinnah,” the founder of Pakistan, who served as Bahrain’s lawyer.

Both sides reviewed the “encouraging momentum” in bilateral ties and agreed to enhance cooperation across political, economic, defense and cultural domains. The PMO said Sharif expressed appreciation for Bahrain’s support, including the establishment of the King Hamad University for Nursing and Allied Medical Sciences in Islamabad and the pardon of Pakistani prisoners.

Earlier in the day, Sharif held separate talks with Bahrain’s Crown Prince and Prime Minister Salman bin Hamad Al Khalifa, where he proposed raising bilateral trade from over $550 million to $1 billion within three years, backed by progress on the Pakistan–GCC Free Trade Agreement and relaxed visa rules.

“Economic cooperation was a key focus,” Sharif’s office said about the meeting with the crown prince.

“The Prime Minister highlighted the potential to increase bilateral trade, currently over $550 million, to $1 billion within three years, supported by the Pakistan–GCC Free Trade Agreement … and recently eased visa requirements.”

Sharif invited Bahraini investors to explore opportunities in food security, IT, construction, mines and minerals, health care, renewable energy and tourism. He also proposed enhancing port-to-port connectivity between Karachi or Gwadar and Bahrain’s Khalifa Bin Salman Port to improve cargo movement and Gulf maritime integration.

The PMO said the two sides also discussed academic cooperation, governance reforms and support for Pakistani expatriates, noting: 

“Sharif welcomed further collaboration in higher education, technical training, and digital governance, building on the King Hamad University initiative, and thanked Bahrain for facilitating the release and repatriation of Pakistani nationals.”

Defense cooperation was another area of expansion, with both governments looking to deepen collaboration in training, cybersecurity, defense production and information sharing.

The humanitarian crisis in Gaza was a major part of the conversation with the two leaders agreeing that the establishment of “peace and stability was long overdue for the people of Gaza who have suffered for decades.”

The PMO said the crown prince meeting “concluded with confidence that the discussions will translate into tangible outcomes and further elevate Pakistan–Bahrain relations across strategic, economic, security and people-to-people domains.”


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.