Islamabad offers skilled manpower to help Iraq in reconstruction, development efforts

Pakistan President Asif Ali Zardari meeting with Iraqi counterpart, Dr. Abdul Latif Jamal Rashid, at Baghdad Palace, on December 21, 2025. (@PresofPakistan/ X)
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Updated 21 December 2025
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Islamabad offers skilled manpower to help Iraq in reconstruction, development efforts

  • The development comes during Pakistan President Asif Ali Zardari’s four-day visit to Iraq to strengthen bilateral cooperation
  • Zardari says current levels of bilateral trade do not reflect true potential of Pakistan-Iraq ties, highlights opportunities

ISLAMABAD: Pakistan has offered to provide skilled manpower to support Iraq’s reconstruction and development efforts, the Pakistani government said on Sunday, signaling Islamabad’s willingness to deepen cooperation with Baghdad in sectors including infrastructure, technical services and human resource development.

The development comes during Pakistan President Asif Ali Zardari’s four-day visit to Iraq to strengthen cooperation in trade, investment, religious tourism, energy and other sectors.

Zardari held a one-on-one meeting with his Iraqi counterpart, Dr. Abdul Latif Jamal Rashid, at Baghdad Palace, which was followed by delegation-level talks to review the state of bilateral relations.

“President Zardari reiterated Pakistan’s willingness to support Iraq’s reconstruction and development efforts through the provision of skilled and semi-skilled manpower under the existing Memorandum of Understanding on manpower transmission,” Pakistan’s Press Information Department (PID) said in a statement.

“He also highlighted Pakistan’s capacity in medical services, financial expertise and digital governance, and expressed readiness to share technical experience, including in secure data management, to support institutional capacity-building in Iraq.”

Iraq has been working to rebuild its economy and infrastructure after decades of conflict, including the 2003 US-led invasion and years of instability caused by sectarian violence and the fight against Daesh group. Although security conditions have improved in recent years, large parts of the country still face damaged roads, power plants, hospitals and housing, requiring large-scale reconstruction and public service delivery.

During Sunday’s meeting, Zardari noted that the current levels of bilateral trade do not reflect the true potential of Pakistan-Iraq economic, cultural and security relations, highlighting opportunities in agriculture, defense production, information technology, construction, pharmaceuticals and other sectors. He underscored the importance of business-to-business engagement and the establishment of direct banking channels to facilitate trade and commercial activity, according to the PID.

Zardari also requested improved facilitation for Pakistani pilgrims visiting Iraq and expressed hope for early finalization and implementation of a proposed Memorandum of Understanding on Zaireen (pilgrims) Management, aimed at ensuring orderly travel. He expressed his firm resolve to work with the Iraqi government to stop illegal entry and overstay of those Pakistanis who violate Iraqi law.

“Both Presidents expressed their resolve to fight extremism, terrorism and narco trade and enhance bilateral cooperation,” the PID said. “The two leaders reaffirmed their commitment to further deepening bilateral cooperation across political, economic and social domains.”

Pakistan and Iraq established diplomatic relations in 1947 and have traditionally maintained cordial ties, though commercial links remain modest. The volume of trade between both countries stood at $268 million in 2023.

Pakistan’s major exports to Iraq include machinery and mechanical appliances, pharmaceutical products, fish, cereals, essential oils and resinoids. Islamabad’s imports from Iraq include mineral fuels, mineral, organic chemicals, edible fruit and nuts.


Rating firm S&P says it won’t rush Iran war downgrades, sees risks for countries like Pakistan

Updated 12 March 2026
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Rating firm S&P says it won’t rush Iran war downgrades, sees risks for countries like Pakistan

  • Agency says it is monitoring indebted energy importers as higher oil prices strain finances
  • Gulf economies seen better placed to weather shock, though Bahrain flagged as vulnerable

LONDON: S&P Global ‌said it would not make any knee-jerk sovereign rating cuts following the outbreak of war in the ​Middle East, but warned on Thursday that soaring oil and gas prices were putting a number of already cash-strapped countries at risk.

The firm’s top analysts said in a webinar that the conflict, which has involved US and Israeli strikes ‌against Iran and Iranian ‌strikes against Israel, ​US ‌bases ⁠and Gulf ​states, ⁠was now moving from a low- to moderate-risk scenario.

Most Gulf countries had enough fiscal buffers, however, to weather the crisis for a while, with more lowly rated Bahrain the only clear exception.

Qatar’s banking sector could ⁠also struggle if there were significant ‌deposit outflows in ‌reaction to the conflict, although there ​was no evidence ‌of such strains at the moment, they ‌said.

“We don’t want to jump the gun and just say things are bad,” S&P’s head global sovereign analyst, Roberto Sifon-Arevalo, said.

The longer the crisis ‌was prolonged, though, “the more difficult it is going to be,” he ⁠added.

Sifon-Arevalo ⁠said Asia was the second-most exposed region, due to many of its countries being significant Gulf oil and gas importers.

India, Thailand and Indonesia have relatively lower reserves of oil, while the region also had already heavily indebted countries such as Pakistan, Bangladesh and Sri Lanka whose finances would be further hurt by rising energy prices.

“We ​are closely monitoring ​these (countries) to see how the credit stories evolve,” Sifon-Arevalo said.