Pakistan PM says policy rate reduction to enhance business activities, boost employment

Pakistan PM says policy rate reduction to enhance business activities, boost employment
People walk past a sidewalk money exchange showcase, which is decorated with pictures of currency notes, in Karachi, Pakistan on September 12, 2023. (REUTERS/File)
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Updated 05 November 2024
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Pakistan PM says policy rate reduction to enhance business activities, boost employment

Pakistan PM says policy rate reduction to enhance business activities, boost employment
  • Pakistan’s central bank slashed key policy rate by 250 basis points to 15 percent on Monday 
  • With fourth straight reduction since June, Islamabad aims to revive sluggish economy 

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has welcomed the central bank’s decision to cut the policy rate by 250 basis points, saying the move would help boost the country’s business activities and enhance employment opportunities, state-run media reported on Tuesday.

Pakistan’s central bank slashed its key policy rate by 250 basis points to 15 percent on Monday for a fourth straight reduction since June. The development takes place as Islamabad attempts to revive a sluggish, fragile $350 billion economy as inflation eases. 

Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.

“Prime Minister Shehbaz Sharif says the reduction in policy rate will enhance business activities, exports and employment opportunities in the country,” state broadcaster Radio Pakistan reported. 

Sharif was chairing a meeting of the ruling Pakistan Muslim League-Nawaz’s (PML-N) parliamentary party on Monday when he touched upon the central bank’s move. The premier noted that inflation has reduced from an alarming 38 percent in May 2023 to 7 percent at present.

The Pakistani premier informed members of the PML-N parliamentary party about his visit to Saudi Arabia and Qatar last week, saying that “a new chapter” has been added to the Pakistan-Saudi investment partnership. 

“The Saudi leadership assured all kinds of support for the stability and development of Pakistan’s economy,” Sharif said according to the state broadcaster. 

The Pakistani prime minister also informed the lawmakers about his visit to Qatar, saying that the Qatari leadership also assured an increase in investment for Pakistan. He said talks were held between both sides on giving “a practical shape” to projects worth $3 billion in Pakistan. 

“He said Qatar will invest in various sectors including aviation, hoteling, information technology and energy sectors in Pakistan,” the state broadcaster said. “Shehbaz Sharif said the government is taking steps on a priority basis to facilitate investment and increase foreign investment in Pakistan.”


EU to advocate for integrated solutions to land, water challenges at COP16

EU to advocate for integrated solutions to land, water challenges at COP16
Updated 16 sec ago
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EU to advocate for integrated solutions to land, water challenges at COP16

EU to advocate for integrated solutions to land, water challenges at COP16

RIYADH: The EU is set to intensify global cooperation at COP16 in Riyadh, working with international partners to combat desertification, land degradation, and drought while also addressing critical issues such as food security, biodiversity loss, and water scarcity.

The 16th Conference of the Parties to the UN Convention to Combat Desertification, which runs from Dec. 2 to 13, will provide a platform for the EU to advocate for stronger action on these interconnected global challenges. These issues, compounded by climate change, threaten economic, social, and environmental stability, as noted in a recent press release.

The EU emphasizes that addressing these challenges is crucial for securing its strategic autonomy, enhancing competitiveness, and ensuring long-term security.

Jessika Roswall, the EU Commissioner for Environment, Water Resilience, and a Circular Competitive Economy, will lead the EU delegation at COP16.

“The world loses 100 million hectares of healthy and productive land every year — around twice the size of France. Without rich and fertile soils, we have no food. Without healthy land, people lose their livelihoods,” Roswall said.

She added: “The EU is committed to working with international partners and will play a crucial, leading role in the negotiations in Riyadh.”

At COP16, the EU will advocate for stronger connections between the three Rio Conventions — climate change, biodiversity, and desertification — and will focus on integrated solutions to the complex challenges of land degradation, biodiversity loss, and climate change. The EU will also push for a shift from reactive, crisis-driven drought management to more proactive, long-term strategies.

Another key focus for the EU will be increasing the involvement of civil society organizations and the private sector in the UNCCD processes. The EU will also push for gender-balanced and gender-responsive approaches to policy implementation. Additionally, securing a robust budget for the UNCCD’s secretariat to support the implementation of agreements beyond 2030 will be a priority.

On Dec. 3, the EU will host the high-level One Water Summit, aimed at advancing global water governance and accelerating progress toward Sustainable Development Goal 6, which focuses on water and sanitation, in preparation for the 2026 UN Water Conference.

During the conference, the European Commission’s Joint Research Centre, in collaboration with the UNCCD, will unveil the World Drought Atlas, providing a comprehensive global assessment of drought risks and offering actionable strategies for building resilience. The UNCCD will also release the Economics of Drought Report, which outlines the economic benefits of preventing droughts and the costs of inaction.

The EU is prioritizing the acceleration of global efforts to address the water crisis, driven by overuse, mismanagement, and the impacts of climate change. With global freshwater demand expected to exceed supply by 40 percent by 2030, the EU has positioned water resilience as a key strategy to tackle future crises in health, food, and energy.


COP16: Saudi Arabia launches $150m Riyadh Global Drought Resilience Partnership

COP16: Saudi Arabia launches $150m Riyadh Global Drought Resilience Partnership
Updated 9 min 41 sec ago
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COP16: Saudi Arabia launches $150m Riyadh Global Drought Resilience Partnership

COP16: Saudi Arabia launches $150m Riyadh Global Drought Resilience Partnership

RIYADH: Saudi Arabia has announced the launch of the Riyadh Global Drought Resilience Partnership, supported by a $150 million investment, according to a top official.

Speaking during the first plenary meeting on the opening day of the UN Convention to Combat Desertification, the COP16 president and the Saudi Minister of Environment, Water and Agriculture Abdulrahman Abdulmohsen Al-Fadley explained that the initiative aims to promote multilateral efforts in the countries most impacted by drought.

This falls in line with the goal of the G20 Global Land Initiative, which was launched by the Kingdom and the UN in 2020, to reduce degraded land by 50 percent by 2040.

It also aligns with the country’s progressive stance on combating land degradation, as demonstrated by the Saudi Green Initiative. The nation has committed to rehabilitating over 74 million hectares of land, with 94,000 hectares already restored and 49 million plants and shrubs planted since 2021.

“The launching of the Riyadh Global Drought Resilience Partnership aims at promoting multilateral efforts to promote resilience, namely in the countries most impacted by drought. It includes proactive partnerships to support the UNCCD,” Al-Fadley said.

“It is my pleasure to announce that the government of the Kingdom of Saudi Arabia will support this initiative with the amount of $150 million in the coming 10 years,” he added.

After the COP16 president underlined how drought is increasingly challenging our lives, Al-Fadley said: “The global partnership aims at promoting partnership between countries, organizations, and relevant stakeholders for the sake of a preventive approach, proactive approach by implementing strategies.”

It also addresses drought comprehensively by assessing risks, implementing early warning systems, transferring knowledge, and increasing capacity through innovative agricultural solutions, such as drought-resistant crops. Additionally, it will provide financing for infrastructure development, he added.

President and Group Chairman of Islamic Development Bank Muhammad Al-Jasser also spoke during the meeting on behalf of the Arab Coordination Group.

“I would like to emphasize that the magnitude and urgency of these challenges demand collective action. We must unite as a global community, forging partnerships that mobilize resources and deliver meaningful impact where it is most needed,” Al-Jasser said.

“Together, we can drive a just, fair and inclusive transition toward a sustainable future for both people and planet earth,” he added.

During the meeting, the Director of the Potsdam Institute for Climate Impact Research Professor Johan Rockstrom also shed light on how the world is currently halfway through a decisive decade that will likely determine the future of humanity for generations to come.

“Unless we bend the curves and start truly transforming back within a safe operating space of a resilient and healthy planet. We are today finding overwhelming scientific evidence. We are at risk of destabilizing, of losing resilience and undermining life support at the planetary scale,” Rockstrom said.

“The latest finding shows we’re following a pathway that will take us to over 3 degrees Celsius of global mean surface temperature rise already by the end of this century,” he added.

The professor emphasized that the primary focus is gradually eliminating fossil fuels to ensure a smooth transition to a decarbonized global economy.

“But we today know scientifically that that will not be enough,” Rockstrom said.

“Investing in sustainable land use is critical not only to combat land degradation but it’s also fundamental for economics, it’s also fundamental for economic stability, it’s fundamental to avoid displacement, migration, and potentially also conflicts. It is fundamental for stability of societal development, it’s fundamental for climate stability and food security,” he said.


Saudi Aramco acquires 10% stake in HORSE Powertrain

Saudi Aramco acquires 10% stake in HORSE Powertrain
Updated 16 min 49 sec ago
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Saudi Aramco acquires 10% stake in HORSE Powertrain

Saudi Aramco acquires 10% stake in HORSE Powertrain

RIYADH: Energy giant Saudi Aramco has finalized its acquisition of a 10 percent stake in HORSE Powertrain Ltd., advancing hybrid combustion technologies to drive down transport emissions. 

According to a joint statement, the deal valued at €7.4 billion ($7.7 billion), followed the signing of definitive agreements on June 28, and subsequent regulatory approvals. 

Renault Group and Geely, through Geely Holding and Geely Auto, retain 45 percent stakes each in HORSE Powertrain. This collaboration is set to leverage Aramco’s expertise in synthetic fuels and lower-carbon mobility solutions, aligning with HORSE Powertrain’s vision to become a premier Tier 1 powertrain supplier. 

Strategic goals

Aramco’s investment supports ongoing research and development in lower-emission technologies.  

Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation, said: “Addressing transport emissions requires a wide range of approaches that consider the diverse nature of the global vehicle fleet, broad disparities in transport infrastructures, and the specific needs of motorists in different countries.” 

He added: “At Aramco, we are pursuing a number of potential innovative solutions, from lower-carbon synthetic fuels to more efficient internal combustion engines, as we look for opportunities to make a difference.” 

Al-Khowaiter highlighted that Aramco’s investment in HORSE Powertrain builds on its extensive research and development efforts, aiming to collaborate with two leading carmakers to advance lower-emission mobility solutions. 

Matias Giannini, CEO of HORSE Powertrain, highlighted the partnership’s strategic value. “Aramco’s expertise in alternative and synthetic fuels makes Aramco the ideal partner for us to deliver lower-emission powertrain solutions,” he said. 

Giannini added: “By strengthening our technology leadership with this partnership, HORSE Powertrain will only become more valuable as a partner to automotive brands looking to benefit from our expertise and global production footprint.” 

Operational synergies 

According to the statement, HORSE Powertrain will collaborate with Aramco and Valvoline Global Operations, focusing on innovations in internal combustion engine technology, alternative fuels, and lubricants.  

Jamal Muashsher, CEO of Valvoline Global Operations, said: “As a technical partner and supplier to HORSE Powertrain, we look forward to applying Valvoline Global’s 150-plus years of automotive expertise and tradition of innovation to advance future-ready solutions in internal combustion engine technology, fuels, and lubricants.” 

He added: “Our newest joint effort with HORSE Powertrain and Aramco builds on Valvoline Global’s strong history in original equipment manufacturer partnerships. Through collaboration, we are helping to shape the next generation of mobility.” 

The partnership aims to accelerate the development of next-generation ICE and hybrid powertrains, enhancing HORSE Powertrain’s global production footprint.  

This strategic alliance underscores Aramco’s commitment to sustainable energy transitions and reinforces HORSE Powertrain’s role as a key player in next-generation powertrain solutions. 

Aramco has been actively expanding its global partnerships in recent months.  

On Nov. 19, the company signed a framework agreement with China’s Rongsheng Petrochemical Co. to boost the expansion of SASREF, enhancing its refining and petrochemical capabilities.  

Earlier, on Oct. 30, Aramco agreed to collaborate with Vietnam Oil and Gas Group, or Petrovietnam, on energy storage, supply, and trading. This agreement, formalized during the Vietnamese Prime Minister’s visit to Saudi Arabia, aims to optimize operations and drive value across both companies’ energy and petrochemical sectors. 


Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 
Updated 28 min 42 sec ago
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Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

Saudi Arabia boosts health infrastructure with 5 new hospitals, increased budget 

RIYADH: Saudi Arabia is set to open five new hospitals by 2025, adding 963 beds across key provinces as part of a broader SR260 billion ($69.3 billion) budget allocation to the health and social development sector. 

This allocation represents the second-highest share of government expenditure, with the aim of increasing the national bed capacity to 23 beds per 10,000 residents, according to the Ministry of Finance’s budget report. 

The new facilities, located in Rijal Almaa, Dhahran Al-Janoub, Hail, Makkah, and Riyadh, include a dedicated mental health hospital in the capital. These projects aim to enhance access to care and improve healthcare infrastructure across the Kingdom.  

Other initiatives for 2025 include emergency services, early detection programs, cancer care, and expanded dialysis services, highlighting a comprehensive approach to healthcare that emphasizes prevention, early intervention, and state-of-the-art infrastructure. 

In addition to healthcare, these funds will also support the management of human resources and social services, including social security and welfare. 

They will also extend to the cultural, media, sports, and entertainment sectors, as well as the implementation of the Quality of Life Program. This underscores Saudi Arabia’s holistic approach, recognizing the interconnectedness of health and social development.  

Healthcare advancements 

Saudi Arabia has made significant strides in advancing its healthcare sector as part of its broader vision to improve the well-being of its citizens and residents. 

Over the past decade, the Kingdom has invested heavily in modernizing healthcare infrastructure, expanding medical services, and improving access to quality care nationwide.  

With initiatives like Vision 2030, which outline ambitious goals to diversify the economy and enhance public services, the health sector has become a key area of focus. 

The government has prioritized expanding health coverage, upgrading hospitals and clinics, and implementing advanced technologies such as electronic health records and telemedicine services. 

Additionally, Saudi Arabia places strong emphasis on preventive healthcare, early diagnosis, and specialized treatment programs, all aimed at reducing the disease burden and improving the quality of life. 

Key investments 

The ministry’s report indicated that the new hospitals will be outfitted with state-of-the-art medical equipment, and skilled healthcare professionals will be employed to address the health needs of the population and enhance the quality of care.  

To bolster emergency medical services, Saudi Arabia plans to deploy 568 vehicles, including ambulances, electric vehicles, and amphibious units.  

These vehicles will play a crucial role in transporting the injured and medical supplies, enhancing the overall responsiveness of healthcare services, especially in remote areas and during emergencies. This extensive fleet will ensure timely medical attention and improve access to healthcare across all regions, regardless of geographic challenges. 

Health innovations 

The health sector will also prioritize early screening for newborns and young children in 2025, aiming to reduce disability and enhance overall quality of life. 

This includes the implementation of newborn screening programs to detect hearing impairments and genetic disorders. 

A comprehensive database will be created, linking both public and private sectors to ensure early diagnosis and intervention. 

Additionally, preschool hearing screenings will be integrated with the Noor system to improve educational outcomes for children, further supporting the early identification of health issues that could impact development. 

In an effort to reduce the incidence of cervical cancer, the Kingdom will increase HPV vaccination coverage for girls, targeting a 90 percent vaccination rate.  

The program will provide vaccines for girls in their first year of intermediate school and offer early detection services for women aged 30 and older. Positive cases will be referred to early screening programs for cervical cancer, aiming to prevent the spread of HPV and improve overall public health by detecting and addressing the virus early. 

The Kingdom is also expanding its cancer care services by implementing a modern care model across three new oncology centers. 

This includes expanding early cancer detection capabilities and providing state-of-the-art diagnostic equipment to improve the accuracy and speed of diagnoses.  

Similarly, dialysis services at Huraymila and Jazan General Hospitals will undergo significant expansion, with a 200 percent increase in capacity at each facility. These centers will receive substantial funding — SR10 million for Huraymila and SR30 million for Jazan — to ensure advanced care and accommodate more patients in need of dialysis. 

In parallel with these service expansions, the Kingdom is enhancing its medical evacuation capabilities by developing and activating medical evacuation centers, command and control hubs, and advanced ambulance services across the country. 

Notably, the National Health Emergency Operations Center has earned recognition from the World Health Organization for its efficiency and preparedness, positioning Saudi Arabia as a leader in healthcare crisis management and emergency response. 

Healthcare achievements 

The Ministry of Finance budget report highlighted the issuance of 113 million electronic prescriptions through the Wasfaty service, resulting in SR1.3 billion in savings and reducing costs by SR2.4 billion. 

The Wasfaty service is an electronic prescription platform introduced by the Saudi Ministry of Health. It allows doctors to prescribe medications electronically, replacing traditional paper prescriptions. 

This service is part of Saudi Arabia’s broader efforts to digitize healthcare services and improve efficiency. Through this platform, prescriptions can be directly sent to pharmacies, streamlining the process for both patients and healthcare providers. It also enhances medication tracking, reduces prescription errors, and helps manage healthcare costs more effectively. 

Emergency services have seen a 20 percent improvement in response time, enhancing life-saving efforts with more efficient ambulance and air transport services. 

Health coverage has expanded, with 12.5 million beneficiaries and a reduction in patient transfers outside local areas. 

Operational efficiency has been boosted, leading to a 27 percent increase in scheduled surgeries and a 91 percent improvement in emergency service access within four hours.  

The localization of specialized tests has grown by 13.1 percent, reducing reliance on external laboratories and cutting long-term costs. 

Dental services have also flourished, with a 137 percent increase in clinic capacity, a 200 percent rise in appointments, and a 250 percent growth in primary healthcare services.  

Additionally, the provision of advanced ambulances has improved services for challenging terrains and mass casualty incidents. The sector has also achieved 17 international accreditations, raising the health compliance rate to 84 percent across 252 facilities, solidifying its commitment to global standards. 

Digital advancements 

Investment in digital healthcare systems is proving beneficial in improving performance and health outcomes, as highlighted by the Organization for Economic Cooperation and Development. 

According to the World Economic Forum, Saudi Arabia allocated over $50 billion in 2023 to initiatives, including digital health services aimed at improving efficiency and accessibility.  

McKinsey predicts that the widespread adoption of digital solutions could bring an additional $15 billion to $27 billion in economic benefits by 2030. 

Saudi Arabia’s partnership with Orion Health to create the world’s largest health information exchange, connecting 5,000 institutions and 32 million people, is one example of such efforts. 

Artificial Intelligence, especially generative AI, is expected to play a significant role in improving patient care and healthcare efficiency, with the potential to contribute $320 billion to the Middle East’s economy by 2030, according to the WEF.  

Robots are also being explored for improving precision, workplace safety, and elderly care. Saudi Arabia, for instance, saw a 52 percent increase in robotics company registrations between 2022 and 2023. 

As Saudi Arabia continues to focus on digital health, AI advancements, and comprehensive care models, its efforts are poised to transform the sector, improve health outcomes, and support the well-being of its growing population.  


Saudi Arabia allocates $453m for 2024–2025 sports initiatives

Saudi Arabia allocates $453m for 2024–2025 sports initiatives
Updated 48 min 59 sec ago
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Saudi Arabia allocates $453m for 2024–2025 sports initiatives

Saudi Arabia allocates $453m for 2024–2025 sports initiatives

JEDDAH: Saudi Arabia has unveiled an SR1.7 billion ($453 million) investment in three sports initiatives for the 2024–2025 season, aimed at boosting club development and raising the Kingdom’s profile in the sector.

This comes as part of the Kingdom’s Clubs Support Strategy, which focuses on developing five key initiatives – governance, various sports, and direct support, as well as fan attendance and digital transformation.  

In a post on X, the Ministry of Sports confirmed that the allocations include SR1.04 billion in direct support for clubs in the Saudi Pro League, as well as those in the first and second divisions

Saudi Arabia has made significant progress in sports tourism since the launch of Vision 2030 in 2016, hosting around 80 athletic events over the past four years and drawing 2.5 million visitors.

Major events such as the Formula One race in Jeddah have brought substantial economic benefits. The 2023 edition, for instance, generated over 20,000 job opportunities and attracted attendees from 160 different countries.

In its post, the ministry also stated that Pro League teams will receive SR47 million annually for public clubs and SR45 million for private organizations. Additionally, each public or private club in the first division league will receive SR6 million annually.

Each public club in the second division league will receive SR2.787 million per year, while private clubs will get SR2.7 million each.

It added that a budget of SR503 million was allocated for the various sports initiatives.

It also stated that SR128 million has been allocated for the fan attendance initiative in the Saudi Pro League, with support contingent upon achieving performance indicators.

The Sports Ministry pointed out that its governance initiative aims to develop clubs administratively by applying standards and indicators that ensure their stability, growth, and goal achievement.

The Kingdom’s ongoing sports privatization undertaking has attracted considerable interest from local and international investors, with 25 companies actively pursuing opportunities in six of the 14 sports clubs proposed for privatization in the first phase.

At the country’s recent Budget Forum 25, Sports Minister Prince Abdulaziz bin Turki Al-Faisal highlighted the economic potential of the privatization effort, estimating investments could reach SR500 million.

Prince Abdulaziz also underlined the rising international profile of the Saudi Pro League, with broadcasts now reaching over 160 countries and a 33 percent increase in revenue this year, driven by growing participation and interest in the nation’s sports sector.

This expansion is part of Saudi Vision 2030 reforms aimed at diversifying the economy. To support investment, the privatization process has been streamlined by launching a platform that licenses academies and clubs, making it easier for individuals and businesses to invest.