Pakistan preparing to debut yuan-denominated bonds this year, finance minister says

Pakistan preparing to debut yuan-denominated bonds this year, finance minister says
A Pakistani currency dealer counts Chinese currency for his customer at his shop in Quetta on January 3, 2018. (AFP/File)
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Updated 13 January 2025
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Pakistan preparing to debut yuan-denominated bonds this year, finance minister says

Pakistan preparing to debut yuan-denominated bonds this year, finance minister says
  • Pakistan planning to raise $200 million to $250 million from Chinese investors over next six to nine months
  • Government is optimistic it will meet the terms for an ongoing $7 billion IMF loan, finance minister says

ISLAMABAD: Pakistan is preparing to debut yuan-denominated bonds this year to shore up finances, Finance Minister Muhammad Aurangzeb told Bloomberg in an interview Monday, saying his government remained optimistic it would meet the terms of an International Monetary Fund bailout program.

The South Asian nation is planning to raise up to $250 million from Chinese investors over the next six to nine months, Aurangzeb said of the plan that comes as Pakistan’s sovereign rating has been upgraded recently by all three credit agencies. Aurangzeb said he expected further upgrades, and the challenge was to get into a “single-B” category, which would allow the country to return to global bond markets to raise funds.

“The country is very keen to tap the Panda bonds and the Chinese capital markets,” Aurangzeb said on the sidelines of the Asian Financial Forum in Hong Kong. “We have been remiss as a country not to tap it previously.”

The latest figure is slightly lower than the $300 million the finance minister was targeting in a March 2024 interview. China International Capital Corporation is advising Pakistan on the issuance of Panda bonds, Aurangzeb said.

Pakistan has enjoyed some stability from two years ago when an IMF bailout deal was in limbo and inflation and interest rates were above 20 percent. The government is optimistic it will meet the terms for an ongoing $7 billion loan, the finance minister said. 

The IMF, which is scheduled to visit Pakistan next month, wants Pakistan to broaden its tax base and reach a tax-to-GDP ratio of 13.5 percent, from 10 percent in December, Aurangzeb said.

“We are well on our way to achieve that target, not only because the IMF is saying that but because from my perspective the country needs to get into that benchmark to make our fiscal situation sustainable,” he said.

After Pakistan clinched the IMF bailout last year, it has been getting some reprieve, including from cooling inflation that provides space for policymakers to cut borrowing costs further and help prop up a nation that remains hammered by structural weaknesses. Stronger remittances, a bright spot, have also helped shore up currency reserves.

The rupee, as a result, rose about 2 percent in 2024, among best performers in emerging markets. The benchmark stock index outperformed nearly all other equities markets last year.

Pakistan still remains in a tough spot.

The government has to increase taxes to secure a fresh $1 billion loan tranche from the IMF or miss the lender’s tax revenue requirement for fiscal year ending June 2025 which could put the bailout at risk, Bloomberg Economics’ Ankur Shukla said in a note on Jan. 8.

Having gone through 25 loan programs over half a century, Pakistan must institute durable reforms in key areas of the energy sector, tax collection and state-owned enterprises to end a cycle of indebtedness, Aurangzeb told an IMF forum in October.

On Monday, Aurangzeb said the nation’s gross domestic product would probably expand 3.5 percent in the fiscal year ending June. Pakistan had set a 3.6 percent economic growth target after a 2.5 percent expansion the prior financial year.

The State Bank of Pakistan, which has cut the benchmark rate to the lowest in more than two years, is scheduled to announce its decision on Jan. 27 while inflation is expected to stabilize within the target range of 5 percent–7 percent in the next 12 months.

“We are into that phase of stabilization,” Aurangzeb said. “Now where do we go from here? We have to focus on sustainable growth. We are now very focused on fundamentally changing the DNA of the economy to make it export-led.”


Pakistan approves fast-track plan to privatize loss-making national airline

Pakistan approves fast-track plan to privatize loss-making national airline
Updated 1 min 10 sec ago
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Pakistan approves fast-track plan to privatize loss-making national airline

Pakistan approves fast-track plan to privatize loss-making national airline
  • Cash-strapped Pakistan wants to privatize debt-ridden PIA to reform state-owned enterprises
  • Pakistan hopes the restoration of PIA routes to Europe will boost the airline’s appeal to buyers

ISLAMABAD: The government has decided to endorse a plan to fast-track Pakistan International Airlines Corporation’s privatization, state media reported on Tuesday, while reiterating its resolve to offload loss-making public entities from the national exchequer.
Cash-strapped Pakistan is looking to privatize the debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program secured last year.
The decision to endorse the new privatization plan follows Pakistan’s failed attempt last year to offload a 60 percent stake in the airline, which drew just a single offer that was well below the asking price.
The issue PIA privatization came under discussed at a meeting in Islamabad chaired by Deputy Prime Minister Senator Ishaq Dar.
“Cabinet Committee on Privatization (CCOP) on Tuesday approved a fast-tracked plan for the privatization of Pakistan International Airlines Corporation (PIACL), including the divestment of 51-100 percent share capital together with management control,” the Associated Press of Pakistan (APP) news agency reported.
“The deputy PM emphasized the government’s commitment to PIACL’s privatization to unlock its full potential and reduce financial burden on the national exchequer,” it added.
APP did not provide further details of the revised plan or explain how it would differ from the previous unsuccessful effort.
Earlier this month, the government appointed Muhammad Ali, formerly the special assistant to the prime minister on the power sector, as adviser for privatization.
Last year, PIA got permission to resume operations in Europe after a 2020 ban by the European Union Aviation Safety Agency (EASA), which had raised concerns about the ability of Pakistani authorities and the Civil Aviation Authority to ensure compliance with international aviation standards.
EASA and UK authorities had suspended PIA’s operations in the region after Pakistan launched a probe into pilot licensing irregularities following a 2020 crash that killed 97 people.
Pakistan hopes that the restoration of routes to Europe and anticipated approval for UK operations will boost the airline’s appeal to potential buyers.
 


WWF, global biopharma giant join hands to protect freshwater resources in Pakistan, India

WWF, global biopharma giant join hands to protect freshwater resources in Pakistan, India
Updated 12 min 41 sec ago
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WWF, global biopharma giant join hands to protect freshwater resources in Pakistan, India

WWF, global biopharma giant join hands to protect freshwater resources in Pakistan, India
  • Freshwater ecosystems have seen an alarming 85 percent decline in wildlife since 1970, WWF says
  • Pakistan’s Indus Basin, in particular, faces threats from pollution, dams and climate change

ISLAMABAD: The World Wide Fund for Nature (WWF) and the GSK global biopharma giant have launched a five-year initiative to conserve and restore freshwater resources in water-stressed regions of Pakistan and India, Pakistani state media reported on Tuesday.
The collaboration, running until 2030, will focus on the Indus River Basin in Pakistan and the Sutlej River Basin in India, key areas for medicine production. The initiative aims to replenish over 300,000 cubic meters of water and benefit more than 100,000 people by implementing nature-based solutions.
Key efforts include restoring freshwater habitats, protecting endangered species like river dolphins and otters, and promoting sustainable water management in local communities and farms, the Associated Press of Pakistan (APP) news agency reported.
“Ensuring sustainable water supply is critical to delivering life-saving medicines,” Regis Simard, president of global supply chain of GSK that operates three manufacturing sites in these regions, was quoted as saying by the APP.
“Partnering with WWF allows us to drive meaningful change in these vulnerable ecosystems.”
Freshwater ecosystems have seen an alarming 85 percent decline in wildlife populations since 1970, according to WWF’s Living Planet Report. The Indus Basin, in particular, faces threats from pollution, dams and climate change.
The partnership aligns with global biodiversity goals, including the Freshwater Challenge that seeks to restore 300,000 kilometers of rivers and 350 million hectares of wetlands by 2030.
“Pakistan faces severe water scarcity and pollution,” said Hammad Naqi Khan, director-general of WWF-Pakistan, highlighting the urgency of water conservation.
“Companies like GSK are leading by example not just reducing water use but actively replenishing resources.”


Rescued dog helps police find owner’s body, wife and brother-in-law held

Rescued dog helps police find owner’s body, wife and brother-in-law held
Updated 25 March 2025
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Rescued dog helps police find owner’s body, wife and brother-in-law held

Rescued dog helps police find owner’s body, wife and brother-in-law held
  • Omar Hayat, an agricultural worker, had rescued a stray dog with broken legs and nursed it back to health
  • Hayat’s body was buried under a heap of cow dung, which was then set on fire to destroy any evidence

KARACHI: A stray dog rescued and nursed back to health by a Pakistani agricultural laborer led police to its owner’s buried body, exposing a murder plot allegedly orchestrated by the victim’s wife and her brother, officials said on Tuesday.
Omar Hayat was killed last month in a village in Tehsil Chichawatni, located in Punjab province. His wife, Shamim, and her brother, Fida Hussain, were arrested and sent into judicial custody on Monday, according to Station House Officer (SHO) Shahzad Ahmed.
“Omar Hayat had found the dog on the roadside months earlier, with both of his legs broken,” Ahmed told Arab News over the phone. “He took it in and treated its legs. After approximately two months, the dog was able to walk again. Since then, the dog stayed with Hayat all the time.”
The SHO said that when Hayat went missing, the dog began searching for him.
“It sensed its owner’s scent and started digging a pile of burnt cow dung with its legs. It continued this for two days until the legs of the body appeared,” he continued, adding that a local resident, Bilal Shah, saw the remains and informed the police.
“We called the crime scene unit and began collecting evidence,” the police official said.
According to him, the victim’s face had been completely burned, making identification difficult. His wife also refused to identify the body and “continuously misled the police,” he added. However, Hayat’s mother recognized the legs, saying they resembled her son’s, and subsequent DNA testing confirmed the body’s identity.
“We arrested Shamim’s brother, Mudasir, a week ago, and Shamim was arrested two days ago,” the police official said. “Yesterday, both were sent to jail on judicial remand.”
During interrogation, both suspects confessed to murdering Hayat and burying his body under a pile of cow dung, which they set on fire in an attempt to destroy evidence and hinder identification.
“Hayat’s wife said that her husband used drugs and had affairs with other women,” Ahmed said. “After catching him with a woman, his wife went to her brother, and they both murdered him.”
Originally from Multan, Hayat worked at a farmhouse in a Chichawatni village, where he lived with Shamim and their four children.
Shamim belongs to Khanewal, and the couple had been married for 15 years.
 


Amid economic push, Pakistan reviews proposals for investment projects with Azerbaijan

Amid economic push, Pakistan reviews proposals for investment projects with Azerbaijan
Updated 25 March 2025
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Amid economic push, Pakistan reviews proposals for investment projects with Azerbaijan

Amid economic push, Pakistan reviews proposals for investment projects with Azerbaijan
  • Cash-strapped Pakistan is currently navigating a tricky path to recovery under a $7 billion International Monetary Fund bailout program
  • The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations

ISLAMABAD: Pakistan’s deputy prime minister, Ishaq Dar, on Tuesday reviewed various proposals for investment projects with Azerbaijan, the Pakistan foreign office said, amid Islamabad’s push for increase trade and investment in the South Asian country.

The development came days after Azerbaijan President Ilham Aliyev wrote a letter to Prime Minister Shehbaz Sharif and called for joint ventures with Pakistan in defense, energy, economy, logistics and transport sectors to expand Baku’s strategic partnership with Islamabad.

It followed a visit by Sharif to Baku, where he announced the two nations would sign deals in April to boost bilateral investments to $2 billion. Multiple agreements for cooperation in the trade, energy, tourism, education and other sectors were signed during Sharif’s visit in Feb.

On Tuesday, DPM Dar presided over an inter-ministerial meeting on possible investment projects with Azerbaijan and reviewed various proposals in this regard, according to the Pakistani foreign office.

“DPM/FM directed to accelerate the implementation of decisions to boost economic growth and development through viable investment projects,” it said in a statement. “He reaffirmed that strengthening Pakistan-Azerbaijan ties remains a priority as both countries collaborate across various sectors.”

Cash-strapped Pakistan is currently navigating a tricky path to recovery under a $7 billion International Monetary Fund (IMF) program. The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations and regional and international allies, focusing on export-led growth.

In September last year, Azerbaijan bought JF-17 Block III fighter jets from Pakistan, reportedly in a $1.6bn deal.

During President Aliyev’s visit to Pakistan last year, a joint committee was set up to materialize projects in trade, commerce, information technology, tourism, telecommunication, mineral resources and other sectors. Sharif said at the time the current trade volume of $100 million did not reflect the “true” trade potential between the two countries.


Pakistani YouTube star charged with blasphemy over perfume

Pakistani YouTube star charged with blasphemy over perfume
Updated 25 March 2025
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Pakistani YouTube star charged with blasphemy over perfume

Pakistani YouTube star charged with blasphemy over perfume
  • Rajab Butt has one of the largest online followings in the Muslim-majority country and has been embroiled in controversy for years
  • In a recent video, since deleted from social media accounts, Butt launched his ‘295’ perfume which refers to blasphemy legislation

LAHORE: A Pakistani YouTube star has been charged with blasphemy after launching a perfume named after the very law he has fallen foul of, police said Tuesday.
Rajab Butt has one of the largest online followings in the Muslim-majority country and has been embroiled in controversy for years, including over his brief custody of a lion cub.
In a recent video, since deleted from his social media accounts, Butt launched his “295” perfume which refers to blasphemy legislation in the penal code.
He said it followed a case filed against him last year, over an earlier video that was deemed blasphemous.
His perfume publicity sparked further ire, prompting the leader of the Tehreek-e-Labbaik Pakistan (TLP) to file a complaint late Monday.
“Our religious sentiments have been hurt,” said TLP leader Haider Ali Shah Gillani, whose party puts blasphemy as its central concern.
“There are numerous sections in the penal code but why did he choose blasphemy-related sections to name a perfume?,” he told AFP.
“This means you acknowledge the offense and are celebrating it. This is essentially an attempt to normalize such actions,” he said.
A police charge sheet seen by AFP and authenticated by a police official on Tuesday details the accusations against Butt, including blasphemy and cybercrime.
Blasphemy is an incendiary charge in Pakistan, where even unsubstantiated accusations can incite public outrage and lead to lynchings.
In both cases against him, the social media personality risks up to 10 years in prison.
Butt issued an apology video on Sunday, asserting he is not against the country’s blasphemy laws.
“I apologize for the words I uttered during the launch of the perfume,” he said while holding the Holy Qur’an.
“I apologize and announce the discontinuation of this perfume,” he added.
Butt has previously drawn a parallel with his “mentor,” the slain Indian rapper Sidhu Moose Wala, who released a song titled “295” in reference to religious incitement.
In other legal troubles, Butt pleaded guilty in January to owning an undocumented wild animal after accepting a lion cub as a wedding gift.
He avoided jail by promising a judge to post animal rights videos for a year.