Pakistan PM heads to Davos to push dialogue in divided world, court investors

Pakistan's Prime Minister Shehbaz Sharif speaks at the World Economic Forum (WEF) in Riyadh, Saudi Arabia, April 28, 2024. (Reuters/ file)
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Updated 20 January 2026
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Pakistan PM heads to Davos to push dialogue in divided world, court investors

  • Shehbaz Sharif will participate in the World Economic Forum’s gathering of economic leaders
  • He will also highlight Pakistan’s economic vision, trade prospects and investment opportunities

ISLAMABAD: Prime Minister Shehbaz Sharif will attend the annual meeting of the World Economic Forum in Davos from Tuesday, where he is expected to push dialogue in an increasingly divided world while courting foreign leaders and investors as Pakistan seeks to build on recent economic stabilization, an official statement said.

Held in Davos-Klosters, the World Economic Forum’s annual meeting is among the world’s most prestigious global platforms, bringing together heads of state and government, senior business executives, leaders of international organizations and civil society to debate geopolitical, economic, social and environmental challenges.

“Prime Minister Muhammad Shehbaz Sharif will lead a high-level delegation to the Annual Meeting of the World Economic Forum (WEF) in Davos-Klosters, Switzerland, from 20 to 22 January 2026,” the foreign office said in a statement.

“The Prime Minister’s program includes multiple substantive engagements, including participation in the WEF’s Informal Gathering of World Economic Leaders’ session on ‘Restoring a Spirit of Dialogue in a Divided World,’” it added.

Pakistan has repeatedly called for multilateralism and adherence to the United Nations Charter and international law, cautioning against the growing resort to force as global conflicts multiply and tensions simmer across regions.

Sharif is also expected to hold meetings with world leaders and business executives on the sidelines of the forum, where he will outline Pakistan’s views on global and regional peace and highlight the government’s economic vision, trade prospects and investment opportunities.

The visit comes as Pakistan looks to attract foreign investment and shift toward export-led growth after emerging from a prolonged economic crisis that depleted foreign exchange reserves, strained its balance of payments and sharply weakened the currency.

The government says macroeconomic indicators have improved, an assessment echoed by global credit rating agencies, as the country continues structural reforms under a $7 billion program with the International Monetary Fund.
 


Pakistan stocks edge higher as export financing, industrial power tariffs are cut

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Pakistan stocks edge higher as export financing, industrial power tariffs are cut

  • KSE-100 index gained 1,607.26 points, or 0.88%, to close at 183,945.38
  • Rebound follows steep sell-off a day earlier amid regional geopolitical tensions

ISLAMABAD: Pakistan’s stock market rebounded on Friday, with the benchmark index gaining more than 1,600 points, as analysts pointed to cuts in export refinancing rates and lower electricity tariffs for industrial consumers as key drivers of the recovery.

The KSE-100 index rose 1,607.26 points, or 0.88%, to close at 183,945.38, up from 182,338.12 a day earlier, according to Pakistan Stock Exchange (PSX) data.

The uptick followed Prime Minister Shehbaz Sharif’s announcement of a Rs4.4 per unit cut in electricity tariffs for industrial consumers, alongside a reduction in the export refinance rate from 7.5% to 4.5%.

“Stocks staged an early recovery at the PSX on institutional buying in oversold scrips after the prime minister’s assurance to renegotiate the IMF deal, along with cuts in the export refinance rate to 4.5% and industrial power tariffs by Rs4.4 per unit,” Arif Habib Commodities Chief Executive Officer Ahsan Mehanti told Arab News.

He added that higher global crude oil prices and earnings-season speculation also acted as catalysts for bullish activity.

According to local media reports last week, Pakistan is seeking flexibility in IMF lending conditions for the 2026–27 budget and aims to renegotiate its agreement to complete the remaining $7 billion under the Extended Fund Facility (EFF) and a $1.4 billion Resilience and Sustainability Facility (RSF) by September 2027.

The rebound came a day after Pakistani stocks plunged 6,042.26 points on Thursday, a drop analysts attributed to heavy selling and heightened geopolitical tensions between Iran and the United States.

Those concerns intensified after US President Donald Trump warned Iran this week that “time is running out” to reach a deal on its nuclear program, amid a steady buildup of US military forces in the Gulf.