Economic cooperation centerstage in Pakistan’s discussion with GCC nations at AlUla conference
Economic cooperation centerstage in Pakistan’s discussion with GCC nations at AlUla conference/node/2590510/pakistan
Economic cooperation centerstage in Pakistan’s discussion with GCC nations at AlUla conference
Pakistan’s Finance Minister Muhammad Aurangzeb (second from right) poses for a picture after a group discussion with his counterparts from the United Arab Emirates, Egypt, Jordan, Morocco and other Gulf Cooperation Council (GCC) countries during the Emerging Markets Conference 2025 in AlUla, Saudi Arabia, on February 17, 2025. (Finance ministry)
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb participated in a group discussion with his counterparts from the United Arab Emirates, Egypt, Jordan, Morocco and other Gulf Cooperation Council (GCC) countries to discuss regional economic cooperation and development strategies, the Finance Division said on Monday, as the Pakistani finmin attends day two of the Emerging Markets Conference 2025 in AlUla city.
Aurangzeb is in Saudi Arabia to attend the two-day conference, which has been organized by the Saudi finance ministry in collaboration with the International Monetary Fund (IMF). The event brings together emerging market finance ministers, central bank governors, policymakers, public and private sector leaders, international institutions and academics.
The Pakistani finance minister participated in a group discussion with his counterparts from the Middle Eastern countries at the sidelines of the conference, the Finance Division said.
“The discussion focused on regional economic cooperation, financial policies, and development strategies, with participating countries exchanging views on shared economic goals and sustainable growth opportunities,” it said.
The global conference takes place at a time when the world economy is facing persistent shocks, trade tensions between major world powers, geopolitical instability and tight financial conditions.
Pakistan is navigating a fragile economic recovery under a $7 billion IMF loan program secured in September 2024, after implementing austerity measures and policy reforms to avert a sovereign default in 2023.
To facilitate Pakistan’s economic recovery, Saudi Arabia signed 34 memorandums of understanding (MoUs) worth $2.8 billion last October to boost private sector investment in key areas, including energy, infrastructure and technology.
Speaking to Arab News on Sunday, Aurangzeb emphasized that Saudi Arabia’s leadership in economic reforms offers important lessons for Pakistan as it embarks on its own structural changes.
“As we go through our own structural reforms at this point in time, on the back of the macroeconomic stability that we have achieved, there’s a lot to learn from Vision 2030,” the minister said. He added that the Kingdom is well ahead of its targets of Vision 2030, “so there’s so much to learn in Pakistan from our partners in Saudi Arabia.”
ISLAMABAD: Saudi company Wafi Energy Pakistan Limited has announced its financial results for 2024, reporting a profit of Rs3.3 billion ($11.8 million), according to a statement from the group on Thursday.
Wafi Energy, an affiliate of the Asyad Group, became the majority shareholder of Shell Pakistan Limited (SPL) in November last year and now holds approximately 87.78% of the total issued share capital of SPL. However, the Shell brand will remain in Pakistan through retail and brand licensing agreements, with SPL as the exclusive brand licensee.
The financials of the company for the year ending December 2024 were announced by its board of directors.
“The company reported a profit after tax of Rs3.3 billion for 2024 compared to a profit of Rs5.8 billion [$20.7 million] in 2023,” the company said. “It is important to note that the 2023 results included a one-time income of PKR10.7 billion [$38.3 million] related to the waiver of Shell Group liabilities.”
The company highlighted that it increased its market share with Helix and Advance Lubricants and formed a partnership in the Thar Coal Project following a win in the Saindak Gold and Copper mining project.
“The mobility business also made significant strides, expanding its network by introducing 16 new sites and rebuilding nine existing ones,” the statement added. “The convenience retail business demonstrated strong growth, with a 28% year-on-year increase.”
SPL is one of the oldest multinationals in Pakistan, with a network of over 600 sites, countrywide storage facilities and a broad portfolio of global lubricant brands.
Shell has supported Pakistan’s development by providing energy for major projects like Mangla Dam and Kotri Barrage, powering Pakistan International Airlines’ first flights, expanding road infrastructure and fostering innovation among local entrepreneurs.
ISLAMABAD: The Pakistan cricket team has departed for the United Arab Emirates (UAE) to face arch-rivals India in a highly anticipated ICC Champions Trophy 2025 match on Feb. 23, the Pakistan Cricket Board (PCB) said on Thursday.
Pakistan suffered a 60-run defeat to New Zealand in their opening match of the tournament in Karachi, making their next contest even more crucial.
“National squad departs from Karachi to Dubai,” the PCB said in a statement. “The Pakistan cricket team will play a match against India on February 23.”
The statement added the Pakistan squad will have a practice session in Dubai tomorrow.
After facing India in Dubai, Pakistan’s next group match will be against Bangladesh on Feb. 27 in Rawalpindi.
The eight-team tournament will continue till March 9. Pakistan entered the contest as the defending champions, having beaten India in the final of the championship’s 2017 edition.
The participating teams have been divided into two groups with hosts Pakistan, Bangladesh, India and New Zealand pooled in Group A while Group B comprises Afghanistan, current ODI World Cup champions Australia, England and South Africa.
ISLAMABAD: Pakistan and Türkiye concluded their two-week joint military exercise, “Ataturk-XIII,” on Thursday, highlighting the deepening defense cooperation between the two nations, according to the Inter-Services Public Relations (ISPR).
The exercise, which began on February 10 at Pakistan’s Special Operations School in Cherat, involved two combat teams from Pakistan’s Special Services Group and 36 personnel from Türkiye’s Special Forces.
The closing ceremony was attended by Commander 11 Corps as the chief guest, with Brig. Gen. Ahmet Asik from Türkiye also in attendance.
“The exercise was aimed at refining professional skills through joint training besides harnessing the historic military-to-military relations among the friendly countries,” the ISPR said. “Participating troops benefited immensely from joint training/exercise.”
Pakistan’s Commander 11 Corps Lt. Gen. Syed Omer Ahmed Bokhari addresses participating troops from Pakistan and Türkiye as they conclude joint military exercise “Ataturk-XIII” at the Special Operations School in Cherat, Pakistan. (Photo courtesy: ISPR)
The collaboration comes days after Turkish President Recep Tayyip Erdogan’s visit to Pakistan on February 13, during which both countries signed 24 agreements to bolster economic and defense ties. The leaders agreed to elevate bilateral trade to $5 billion annually, reflecting a commitment to strengthen relations across various sectors.
Military officials review participating troops from Pakistan and Türkiye during the joint military exercise “Ataturk-XIII” at the Special Operations School in Cherat, Pakistan. (Photo courtesy: ISPR)
Pakistan and Türkiye also enjoy a longstanding defense partnership. Notably, Türkiye has been involved in modernizing Pakistan’s submarine fleet, including the upgrade of Agosta 90B-class submarines, enhancing the South Asian nation’s maritime capabilities.
The recent exercise focused on counterterrorism operations and took place amid a surge in militant violence in Pakistan. Islamabad has been actively seeking to enhance international collaboration to effectively address these security challenges.
KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb acknowledged on Thursday Pakistan’s privatization efforts have encountered setbacks, notably a failed attempt to sell the national airline last year, though he affirmed the government’s commitment to advancing the privatization agenda.
Speaking at an economic conference in Islamabad, Aurangzeb addressed the difficulties faced in divesting state-owned enterprises (SOEs), a key component of the International Monetary Fund’s (IMF) structural reform requirements.
The privatization initiative aims to alleviate the financial burden of loss-making SOEs on the national economy. Last October, the sought to sell Pakistan International Airlines (PIA) after multiple delays in the bidding process.
The final round attracted only one bid from real estate developer Blue World City, offering Rs10 billion ($36 million) for a 60 percent stake — substantially below the government’s minimum price of Rs85 billion. Consequently, the privatization ministry rejected the offer, citing non-compliance with financial expectations.
“We have faced hiccups while doing privatization,” Aurangzeb said. “PIA is getting to be relaunched. But we are very determined to take this forward.”
The government anticipates that PIA privatization prospects will improve following the resumption of flights to Europe in January 2025. PIA’s operations to the European Union were suspended in June 2020 due to safety concerns after a crash in Karachi, resulting in a four-and-a-half-year ban.
The minister emphasized the government’s stance on limiting its role in commercial enterprises, advocating for private sector leadership in economic activities.
“The private sector has to lead the country,” he asserted. “The government must be there to provide policy framework and policy continuity.”
Aurangzeb outlined the administration’s vision to reestablish Pakistan as a “bankable brand,” necessitating comprehensive structural reforms currently underway. These reforms include measures to control public expenditure and expedite the rightsizing of government operations.
He highlighted significant transformations in the taxation system, focusing on digitization to incorporate all businesses into an equitable tax framework.
“It is very important that we restore the trust in the tax authorities,” he noted.
China’s sprawling rail projects, from Pakistan to Indonesia
In Pakistan, railway linking Gwadar Port with China’s Xinjiang province has long been on the cards
If the project moves ahead, a 2023 Chinese study estimated an eyewatering price tag of $58 billion
Updated 20 February 2025
AFP
TOKYO: Vietnam approved plans on Wednesday for a multi-billion-dollar railway with China, boosting links between the two communist countries.
Around the region, China has been financing railways under its Belt and Road Initiative, which funds infrastructure projects globally, but has come under fire with a number of plans stalled or mired in controversy.
Here are some of the key instalments in Asia’s China-backed railway network: PAKISTAN
In Pakistan, a railway linking southwestern Gwadar Port with China’s northwestern Xinjiang province has long been on the cards but has yet to materialize.
This official route map, posted on the China-Pakistan Economic Corridor website, presents a monographic study on transport planning for CPEC’s Railway Network, covering the period from 2014 to 2030. (Photo courtesy: CPEC)
If the project moves ahead, a 2023 Chinese study estimated an eyewatering price tag of $58 billion. INDONESIA
Indonesia launched Southeast Asia’s first high-speed railway in October 2023, after years of delays. The $7 billion China-backed project links the capital Jakarta to the city of Bandung in 45 minutes — slashing the journey by about two hours.
A hi-speed train built in cooperation between Indonesia and China moves along its dedicated track, prior to a dynamic test, in Tegalluar on November 9, 2022. (AFP/File)
Built by a joint venture of four Indonesian state companies and Beijing’s China Railway International Co, it was initially set to cost less than $5 billion and be completed by 2019. But construction challenges and the pandemic led to delays and surging expenses.
Indonesia’s then-president Joko Widodo nevertheless hailed its opening as a symbol of modernization. LAOS
Laos unveiled its $6 billion Chinese-built railroad in 2021, bringing hopes of an economic boost despite backlash after thousands of farmers had to be evicted to make way for construction.
The 414-kilometer (260-mile) route connects the Chinese city of Kunming to Laotian capital Vientiane, with plans for the high-speed line to ultimately reach Singapore.
This photo taken on October 12, 2024 shows passengers boarding a high-speed train in the railway station in Laos' capital Vientiane. (AFP/File)
Infrastructure-poor Laos, a reclusive communist country of about 7.4 million people, previously had only four kilometers of railway tracks.
It was hoped that the railway would boost the Southeast Asian country’s ailing tourism industry, which struggled to rebound from the pandemic.
But experts also raised concerns over whether cash-strapped Laos — where public debt made up 116 percent of GDP in 2023 — would ever be able to pay back Beijing. THAILAND
After long delays, Thailand is pressing ahead with a Chinese-backed high-speed line set to partially open in 2028. The $5.4 billion project aims to expand the connection to Kunming, running to Bangkok via Laos by 2032.
Thailand already has nearly 5,000 kilometers (3,000 miles) of railway but the sluggish, run-down network has long driven people to favor road travel — despite extremely high accident rates.
In this photo taken on March 29, 2023 a train sits below an elevated track, still under construction as part of the Thai-Chinese Bangkok-Nong Khai high-speed railway project at Sung Noen Station in Nakhon Ratchasima province. (AFP/File)
When the new railroad is fully complete, Chinese-made trains will run from Bangkok to Nong Khai, on the border with Laos, at up to 250 km/h.
Unlike Laos, Thailand signed a deal to cover project expenditures itself and has pitched it as a way to boost the economy through trade with China. KYRGYZSTAN
Kyrgyz President Sadyr Japarov inaugurated construction in December of a railway linking China, Kyrgyzstan and Uzbekistan, with hopes it will serve as a supply route to Europe.
In this handout picture taken and released by the Kyrgyz presidential press office on December 27, 2024, fireworks explode behind state flags during the commencement ceremony of the China-Kyrgyzstan-Uzbekistan railway project in the settlement of Tash-Kitchu. (Photo courtesy: VCG/File)
“This route will ensure supply of goods from China to Kyrgyzstan and then onto Central Asia” and nearby countries “including Turkiye” and “even to the European Union,” he said.
The project, which Kyrgyz authorities estimate could cost up to $8 billion, includes construction through mountains and in areas of permafrost, where the ground never fully thaws. VIETNAM
Vietnam this week approved an $8-billion railroad running from its largest northern port city to China. The line will operate through some of Vietnam’s key manufacturing hubs, home to Samsung, Foxconn and Pegatron factories, many of which rely on components from China.
Railway workers guide a train at a railway crossing in Hanoi on February 18, 2025. (AFP/File)
Another yet-to-be-approved line to China would connect Hanoi to Lang Son province, traveling through more areas packed with manufacturing facilities. MALAYSIA
Malaysia has revived construction of a nearly $17 billion railroad to carry passengers and freight between shipping ports on its east and west coasts. The China-backed, 665-kilometer project was originally launched in 2011 under ex-leader Najib Razak, but shelved due to a dispute about payments.
After blowing past several deadlines and budgets, it now looks set to be operational by 2027. MYANMAR
In coup-hit Myanmar, talks on building a railway from Mandalay to China’s Yunnan province appear to have stalled.
And in the Philippines, plans for China to fund three railways flopped after Manila backed out of talks in 2023 as the South China Sea dispute heated up.
