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Pakistan working to issue domestic green sukuk bonds by December — finance minister

Pakistan working to issue domestic green sukuk bonds by December — finance minister
Pakistan's Finance Minister Muhammad Aurangzeb speaks during an interview with AFP at the Embassy of Pakistan in Washington, DC on April 15, 2024. (AFP/File)
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Updated 10 May 2024
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Pakistan working to issue domestic green sukuk bonds by December — finance minister

Pakistan working to issue domestic green sukuk bonds by December — finance minister
  • Proceeds of green bonds used to finance climate change mitigation, adaptation and environmental projects
  • According to recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks
Updated 10 May 2024
KHURSHID AHMED   
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KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Friday the Pakistan government was working to issue domestic green sukuk bonds by December 2024 to fund environmentally sustainable infrastructure projects. 

The green sukuk is a Shariah-compliant interest-free bond in which instead of interest, investors receive an agreed share of the profits generated by the pool of underlying assets, which are partially owned by investors. Proceeds of green bonds are used to finance climate change mitigation and adaptation, and environmental projects. 

“The government is working on issuing domestic green sukuk bonds by December 2024 to finance sustainable development projects,” Aurangzeb said as he delivered an online keynote speech at the UK-Pakistan Green Investment Forum, organized by the British High Commission in Pakistan. 

In his address, the finance minister emphasized Pakistan’s commitment to addressing climate change and promoting green investment opportunities, and highlighted Pakistan’s vulnerability to the adverse effects of climate change, despite its low contribution to global greenhouse gas emissions. 

According to a recent World Bank study, Pakistan faces potential annual GDP losses of up to 1 percent due to climate-related risks.

Acknowledging a significant funding gap in adaptation, resilience, and mitigation projects and the need for a better portfolio of green investment projects, the minister emphasized Pakistan’s reliance on the private sector for support in this regard and highlighted the government’s efforts to enhance investor confidence in bankable green opportunities. 

He also outlined Pakistan’s plans to utilize innovative financing instruments like green sukuk to raise international climate finance. 

Pakistan ranks among the top 10 countries worldwide most affected by climate change and natural disasters.

Topics: domestic green sukuk bonds Shariah-compliant interest-free bond

Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues

Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues
Updated 43 sec ago
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Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues

Pakistan urges Security Council to de-escalate tensions, says dialogue ‘only way’ to resolve issues
  • Pakistan’s UN ambassador briefs Security Council during special session in New York on prevailing tensions with India
  • New Delhi accuses Islamabad of backing militant attack in Indian-administered Kashmir last month that killed 26 tourists
Updated 43 sec ago
Shahjahan Khurram

ISLAMABAD: Pakistan’s Permanent Representative to the United Nations Asim Iftikhar Ahmad has urged the UN Security Council to de-escalate Islamabad’s tensions with New Delhi, stating that dialogue is the “only way” to resolve issues between the nuclear-armed nations, state-run media reported on Tuesday. 

A special UN Security Council session to discuss surging tensions between Pakistan and India was convened in New York on Monday at Islamabad’s request. The meeting took place as fears of a military confrontation between India and Pakistan loom after ties deteriorated last month following an attack in Indian-administered Kashmir that killed 26 people. 

India has accused Pakistan of backing the Apr. 22 attack which took place in Pahalgam, a tourist spot in Indian-administered Kashmir. Islamabad has denied involvement and asked for evidence which New Delhi has so far not publicly shared. Both countries have since exchanged gunfire in Kashmir, taken diplomatic measures against each other, expelled citizens and ordered the border shut. 

“Pakistan has urged the United Nations Security Council to take steps to de-escalate tensions in South Asia for global and regional peace,” state broadcaster Radio Pakistan reported. 

The state broadcaster said Ahmad told reporters after the session ended that India’s recent steps are a “threat to peace and stability in the region and dialogue is the only way to resolve issues.”

Ahmad informed Security Council members that Pakistan is ready to take part in any independent and neutral investigation into the Pahalgam attack, Radio Pakistan said. He also raised the issue of India suspending the decades-old Indus Waters Treaty in abeyance unilaterally. 

India suspended the 1960 World Bank-mediated treaty a day after the Pahalgam attack, saying the suspension would last until “Pakistan credibly and irrevocably abjures its support for cross-border terrorism.” Pakistan has described the suspension of the treaty as an “act of war” and vowed to respond with full force to any attempts to divert or stop its water flow. 

The flare-up and exchanges of small arms fire between India and Pakistan across their de facto border in Kashmir has alarmed world and regional powers, who have called for restraint and urged the two neighbors to resolve the crisis through dialogue. Pakistan has assured foreign capitals and friendly nations that it would not be the first one to strike, according to officials.

Prime Minister Shehbaz Sharif spoke to UN Secretary-General Antonio Guterres on Monday night, Radio Pakistan reported, to discuss Pakistan’s ongoing tensions with India. Guterres briefed Sharif on his outreach efforts for peace and stability in the region, expressing his commitment to remain engaged with all interlocutors on the issue.
Sharif appreciated the UN secretary-general’s continued engagement and outreach efforts and welcomed his call for de-escalation, the state-run media reported.
Pakistan and India have a history of bitter relations. They have fought two of their three wars over Kashmir, a region split between them, since gaining independence from the former British colonial rule in 1947.

Topics: Asim Iftikhar Ahmad Pahalgam attack

UN urges ‘maximum restraint’ as OIC group voices concern over India-Pakistan standoff

UN urges ‘maximum restraint’ as OIC group voices concern over India-Pakistan standoff
Updated 26 min 9 sec ago
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UN urges ‘maximum restraint’ as OIC group voices concern over India-Pakistan standoff

UN urges ‘maximum restraint’ as OIC group voices concern over India-Pakistan standoff
  • Relations between the nuclear-armed neighbors have plummeted after India accused Pakistan of backing an attack in Kashmir that killed 26 tourists
  • Pakistan has denied the allegation and called for a credible, international probe as pressure mounts on both New Delhi and Islamabad to de-escalate
Updated 26 min 9 sec ago
SAIMA SHABBIR

ISLAMABAD: United Nations (UN) chief Antonio Guterres said on Monday that Pakistan and India must exert “maximum restraint” as the Organization of Islamic Cooperation (OIC) expressed “deep concern” over the deteriorating security environment in South Asia, amid soaring tensions between the two neighbors over an attack in the disputed Kashmir region.
New Delhi has blamed Islamabad for backing the attack that killed 26 tourists in Indian-administered Kashmir’s Pahalgam town on April 22. Islamabad has denied the charge, with both sides announcing tit-for-tat measures.
There have been fears that India may conduct limited strikes close to its border with Pakistan, while the Pakistan military said on Monday that it had conducted a second missile test since the standoff began.
Guterres told reporters in New York that Pakistan-India relations had reached “a boiling point,” condemning the April 22 attack and calling for those responsible to be brought to justice through “credible and lawful means.”
“It is also essential, especially at this critical hour, to avoid a military confrontation that could easily spin out of control,” he said.
“Now is the time for maximum restraint and stepping back from the brink. Make no mistake: a military solution is no solution.”
No group has claimed responsibility for the April 22 attack in Indian-administered Kashmir, where several outfits have waged an insurgency since 1989.
Pakistan has denied any involvement and called for a credible, international probe into it as international pressure continues to pile on both New Delhi and Islamabad to de-escalate.
Separately, the OIC Group in New York, which represents the OIC’s interests and voice at the UN, expressed its “deep concern” over the situation in South Asia, exacerbated by India’s “unfounded allegations” against Pakistan, which it said were “inflaming tensions in an already volatile region.”
“The OIC Group reiterates its principled position against, and condemnation of terrorism in all its forms and manifestations, committed by whomsoever and wherever; and reaffirms its unequivocal rejection of all attempts to associate any country, race, religion, culture or nationality with terrorism,” it said in a statement.
“The Group commends the offer of good offices made by the UN Secretary General and calls upon the international community, including the United Nations Security Council and influential states, to take immediate and credible measures to de-escalate the situation.”
Bitter foes Pakistan and India, which were carved out of the Subcontinent at the bloody end of British rule in 1947, have fought multiple wars, including two over Kashmir.
Indian Prime Minister Narendra Modi has given his military “full operational freedom” to respond to the Pahalgam attack and Islamabad has warned it will hit back in kind against any aggression.
Speaking to reporters, Guterres said he was ready to offer his good offices to both countries to defuse tensions.
“The United Nations stands ready to support any initiative that promotes de-escalation, diplomacy, and a renewed commitment to peace,” he added.
 

Topics: India Pakistan Ties Secretary-General Antonio Guterres Pahalgam attack

Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production

Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production
Updated 05 May 2025
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Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production

Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production
  • CEOs of refineries call on Finance Minister Muhammad Aurangzeb to discuss investment plans
  • Oil imports amounted to $5.1 billion in 2024, April data from Pakistan’s central bank showed
Updated 05 May 2025
Ismail Dilawar

KARACHI: The chief executive officers (CEOs) of leading oil refineries on Monday called on Finance Minister Muhammad Aurangzeb and discussed with him investment plans, including multi-billion-dollar plant upgrades aimed at enhancing the domestic production capacity of petrol and diesel.
Pakistan produces some petrol and diesel domestically, but it is not sufficient to meet the country’s total demand. The country imports significant quantities of crude oil and refined petroleum products to supplement domestic production. Pakistan’s five oil refineries have a combined capacity to process 450,000 barrels of crude oil per day.
In the first four months of fiscal year 2025, petrol production was up by 4.50 percent and high-speed diesel by 7.85 percent, compared to the same period last year. This increase is attributed to rising demand in the transport and agriculture sectors.
On Monday, a delegation a CEOs of top oil refineries briefed the finance minister and his team on their upcoming investment plans, which include multi-billion-dollar plant upgrades aimed at enhancing domestic production.
“The delegation highlighted that these upgrades, once implemented, have the potential to save the country close to $1 billion annually in foreign exchange by reducing reliance on imported refined fuels,” a statement from the finance division said.
The refinery representatives also raised concerns regarding the change in the sales tax regime on petroleum products, specifically the shift from zero-rated to exempt supplies.
“They explained that this change has led to a significant increase in both operational and capital expenditure for the refining sector, adversely impacting the financial viability of their planned upgrades,” the statement added.
This change in the sales tax regime, introduced by the Finance Act 2024, means that certain petroleum products like motor spirit (petrol), high-speed diesel, kerosene, and light diesel oil are now exempt from sales tax instead of being zero-rated. This change has raised concerns from refineries, who worry about increased operational and capital costs due to the disallowance of input sales tax claims.
Aurangzeb assured the CEOs that the government would carefully review their concerns, especially those relating to the sales tax exemptions, and added that the issue would be addressed in a manner that supports the continued growth and modernization of the domestic refining industry.
“The meeting concluded with a reaffirmation of the government’s commitment to enabling long-term investment in the energy sector and promoting sustainable industrial development,” the finance division said.
Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers, data from analytics firm Kpler showed. Oil imports amounted to $5.1 billion in 2024, data from Pakistan’s central bank showed.
In February, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a $1.2 billion financing facility to Pakistan for the import of oil products for a year.
The SFD has provided approximately $6.7 billion to Islamabad for oil products since 2019.

Topics: Finance Minister Muhammad Aurangzeb Pakistani oil refineries

Army says one soldier, eight militants killed in multiple engagements in Pakistan’s northwest

Army says one soldier, eight militants killed in multiple engagements in Pakistan’s northwest
Updated 05 May 2025
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Army says one soldier, eight militants killed in multiple engagements in Pakistan’s northwest

Army says one soldier, eight militants killed in multiple engagements in Pakistan’s northwest
  • The encounters took place in North and South Waziristan, Khyber and Bannu districts of Khyber Pakhtunkhwa province
  • Pakistan has seen a surge in militancy in KP since its fragile truce with the Pakistani Taliban broke down in late 2022
Updated 05 May 2025
Hasaan Ali Khan

ISLAMABAD: The Pakistan army said on Monday one soldier had died while security forces killed eight Pakistani Taliban militants in multiple engagements in the northwestern Khyber Pakhtunkhwa (KP) province. 
Three militants were killed in an encounter in the North Waziristan district that borders Afghanistan, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
Two militants and a Pakistani troop were killed in an intelligence-based operation in the neighboring South Waziristan district. Security forces gunned down another three militants in two engagements in Khyber and Bannu districts.
“Weapons, ammunition and explosives were also recovered from the killed khwarij, who remained actively involved in numerous terrorist activities,” the ISPR said in a statement. “Sanitization operations are being conducted to eliminate any other Kharji [Pakistani Taliban militant] found in the area.”
Pakistan has struggled to contain a surging militancy in KP in recent years, where the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have mounted their attacks against security forces and police since their fragile, months-long truce with Islamabad broke down in late 2022. Islamabad has frequently accused Afghanistan of supporting the Pakistani Taliban and other militant groups, an allegation denied by Kabul.
The latest operations follow the killing of five TTP militants and the arrest of two others in KP, while the military said late last month it had killed 71 militants while infiltrating Pakistan’s border with Afghanistan in North Waziristan.
The number was usually high in Pakistan’s battle against militancy and instability along its border with Afghanistan during the nearly four years since the United States withdrew its military support from the country and the Taliban took over Kabul.
The South Asian country is also facing an intensifying insurgency by armed separatist groups in its southwestern Balochistan province.

Topics: militancy in Pakistan KP militancy

Pakistan dispatches another shipment carrying 97 tons of relief goods for Gaza

Pakistan dispatches another shipment carrying 97 tons of relief goods for Gaza
Updated 05 May 2025
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Pakistan dispatches another shipment carrying 97 tons of relief goods for Gaza

Pakistan dispatches another shipment carrying 97 tons of relief goods for Gaza
  • The development comes as death toll from Israel’s war on Gaza rises to 52,567 
  • Pakistan has sent a total of 1,615 tons of relief aid for the war-torn Palestinians
Updated 05 May 2025
Hasaan Ali Khan

ISLAMABAD: Pakistan has dispatched 97 tons of humanitarian aid for the war-affected people of Gaza, its National Disaster Management Authority (NDMA) said on Monday, as Israel voted to scale up the offensive against Hamas in Gaza to the point of seizing the entire enclave.
The death toll in the Gaza Strip due to the ongoing Israel-Hamas war has reached 52,567, according to Palestinian authorities. In the past 24 hours alone, 32 people were reportedly killed and 119 others injured, bringing the total number of injuries to over 118,600.
Pakistan’s NDMA said the latest shipment, which is the 16th aid consignment for Gaza and the overall 27th sent to the Middle East, was dispatched as part of Pakistan’s ongoing humanitarian efforts.
“The latest consignment, sent in collaboration with Al-Khidmat Foundation, comprises approximately 85 tons of canned food, 10 tons of rice and two tons of powdered milk,” the NDMA said.
“The aid was transported via a chartered flight from Jinnah International Airport, Karachi, to Amman (Jordon) for onward distribution to the people of Palestine.”
Israel ended its months-long ceasefire with Hamas by launching a surprise bombardment on Mar. 18 and has been carrying out daily waves of strikes since then. Israeli forces have expanded a buffer zone, encircled the southern city of Rafah, and now control around 50 percent of the territory.
Israel has also sealed off the territory’s two million Palestinians from all imports, including food and medicine, for nearly 60 days. Aid groups say supplies will soon run out and that thousands of children are malnourished.
Pakistan, which does not have diplomatic ties with Israel, has consistently condemned Israeli military actions and called for the uninterrupted flow of humanitarian aid into Palestinian territory.
The South Asian country has dispatched a total of 1,615 tons of relief aid exclusively for Palestine, according to the NDMA. Overall, Pakistan has sent 2,142 tons of humanitarian aid, including 416 tons for Lebanon and 111 tons for Syria.
“The Government of Pakistan remains steadfast in its commitment to standing with the people of Palestine and will continue to provide humanitarian assistance based on the evolving needs of those affected by the ongoing crisis,” the authority said.

Topics: pakistan palestine ties National Disaster Management Authority of Pakistan (NDMA) Al-Khidmat Foundation

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