Pakistan says will expand cooperation with China in counter-terrorism, industry and technology

Pakistan says will expand cooperation with China in counter-terrorism, industry and technology
President of Pakistan, Asif Ali Zardari (left), shaking hands with Chen Xiaojiang, the Communist Party secretary of the Xinjiang Uyghur Autonomous Region, in Urumqi, China on September 18, 2025. (PID)
Short Url
Updated 19 September 2025
Follow

Pakistan says will expand cooperation with China in counter-terrorism, industry and technology

Pakistan says will expand cooperation with China in counter-terrorism, industry and technology
  • Pakistan views China as an important strategic ally and investment partner, which has funneled billions of dollars into the country
  • President Asif Ali Zardari invites people from Xinjiang to visit Pakistan’s northern regions to strengthen cultural and economic ties

ISLAMABAD: Pakistan will continue to work with China in countering terrorism and extremism, while expanding cooperation in agriculture, manufacturing, livestock, industry, mining and new technologies, President Asif Ali Zardari said on Thursday.

The statement came after his meeting with Chen Xiaojiang, the Communist Party secretary of the Xinjiang Uyghur Autonomous Region, in Urumqi, at which the president reaffirmed Pakistan-China friendship as the cornerstone of Islamabad’s foreign policy.

Pakistan views China as an important strategic ally and investment partner, which has funneled billions of dollars into the country under the China-Pakistan Economic Corridor (CPEC) energy and infrastructure project for over a decade.

Despite massive investments, Chinese projects and nationals have been hit by militant attacks in recent years, with Beijing pressing Islamabad to step up security of Chinese nationals and initiatives in the South Asian country.

“Pakistan will continue to cooperate with China to eliminate terrorism and extremism,” President Zardari was quoted as saying by his office. “Pakistan and China will increase cooperation in the fields of agriculture, industry, minerals and new technology.”

Beijing is Pakistan’s largest trading partner, with bilateral trade topping $25 billion in recent years, while Chinese firms have also invested heavily in Pakistan’s power, transport, infrastructure, telecommunication and other projects.

Highlighting Xinjiang’s pivotal role in CPEC, the President encouraged greater industrial and agricultural collaboration, noting the potential of Special Economic Zones in Gilgit-Baltistan. He invited people from Xinjiang to visit Pakistan’s northern regions, hoping that these visits would further strengthen cultural and economic bonds, the state-run Radio Pakistan broadcaster reported.

In his remarks, Chen underlined that Xinjiang has become a hub of prosperity and is advancing in agriculture and livestock, adding that he looked forward to deepening government-to-government and business-to-business cooperation with Pakistan, particularly in agriculture, livestock, mining and industry.

“He reaffirmed the desire to work closely on security and counter-terrorism as well,” the broadcaster said.

The development comes during President Zardari’s ten-day visit to China that began on Sept. 12. The president has since had a number of engagements with Chinese political and business figures, aimed at further strengthening ties between the two countries.
Beijing and Islamabad this week signed multiple memorandums of understanding (MoUs) aimed at strengthening cooperation in agriculture, environmental protection and mass transit, Zardari’s office said.

“These MoUs reflect a practical step toward strengthened cooperation between Pakistan and China in agriculture, technology, and environmental management,” Zardari said at the signing ceremony.


Shariah-compliant stocks outperform broader market amid rising investor demand at PSX

Shariah-compliant stocks outperform broader market amid rising investor demand at PSX
Updated 15 November 2025
Follow

Shariah-compliant stocks outperform broader market amid rising investor demand at PSX

Shariah-compliant stocks outperform broader market amid rising investor demand at PSX
  • Islamic equities now make up more than half of daily trading value on the Pakistan Stock Exchange
  • Analysts say macro stability and policy reforms fueling stronger gains in Shariah-compliant counters

KARACHI: As Pakistan’s economy steadies, stock investors are increasingly gravitating toward Shariah-compliant equities, with Pakistan Stock Exchange (PSX) data showing these counters outperforming conventional stocks since early October and now accounting for more than half of the daily trading value.

Investors on Friday traded Rs35 billion ($125 million) worth of shares, of which Rs23 billion ($80 million) came from Shariah-compliant counters.

“Around 65 percent of today’s equity value traded was in Shariah compliant stocks,” PSX said in a statement.

Pakistan’s market has been on a strong upward run, with the benchmark KSE-100 Index climbing 41 percent to 161,935 points since January.

The Karachi Meezan Index (KMI-30), launched in 2008 to track Shariah-compliant equities, has risen 30 percent so far this year and gained another 0.8 percent on Friday to close at 231,590 points.

“The broader Pakistan Shariah index has demonstrated remarkable strength and resilience, closely mirroring the sustained bullish momentum observed across the PSX,” said Amreen Soorani, head of research at Al Meezan Investments Management Limited, Pakistan’s largest Shariah-compliant mutual fund managing Rs638 billion ($2.3 billion) in assets.

“This exceptional performance is a direct result of recent macroeconomic stabilization and impactful policy reforms,” she told Arab News.

Pakistan’s economic outlook has brightened as the current administration has pulled inflation down to 6.2 percent in October, while the central bank expects the current account deficit to widen by up to one percent this fiscal year.
Foreign exchange reserves are projected to reach $18 billion by June 2026.

“We maintain an optimistic outlook for the Shariah equity index, projecting sustained growth driven by robust corporate profitability and attractive dividend yields, all underpinned by strong structural and macroeconomic tailwinds,” Soorani added.

She said regulatory steps, including the listing of government sukuk on the stock exchange, were also “actively diversifying investment offerings and enhancing market liquidity in the Shariah space.”

INCREASING EXPOSURE

These trends are drawing in individual investors such as Saniya Bilal Doni, who is already invested in Shariah-compliant stocks and now plans to boost her holdings.

“My portfolio has benefited from the recent PSX rally, and I am considering increasing my exposure given the positive market outlook,” said Doni, 33, a Chartered Financial Analyst by qualification.

For her, she said, the appeal of these stocks extends beyond performance.

“The Shariah-compliant stocks align with my ethical and faith-based principles, and historically, Shariah-compliant companies in Pakistan tend to have stronger balance sheets, lower leverage and more disciplined governance, which naturally reduces risk,” she continued.

Doni did not disclose the size of her portfolio but said she prefers long-term, dividend-focused investments in “well performing” banking, real estate, fertilizer and technology stocks.

“In Pakistan, many retail and institutional investors already gravitate toward Shariah-compliant names,” said Leena Abid, an analyst at Karachi-based brokerage Arif Habib Limited.

She noted that the KMI-30 Index posted a 71 percent return last year and has already delivered 29 percent gains this year.

“Looking ahead, if the current momentum continues, supported by improving macros and earnings growth, the KMI-30 could end another year with gains,” she told Arab News.