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Islamabad invites South Korea to join UAE, Saudi Arabia in investing in Pakistani ports

Islamabad invites South Korea to join UAE, Saudi Arabia in investing in Pakistani ports
In this file photo, taken on April 6, 2023, shipping containers are seen stacked on a ship at a seaport in Karachi. (AFP/File)
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Updated 2 min 45 sec ago
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Islamabad invites South Korea to join UAE, Saudi Arabia in investing in Pakistani ports

Islamabad invites South Korea to join UAE, Saudi Arabia in investing in Pakistani ports
  • Pakistan’s maritime affairs minister meets South Korean envoy to discuss modernizing ports, boosting economic ties
  • With access to Arabian Sea, Pakistani ports are vital for international trade and provide jobs to thousands of people
Updated 2 min 45 sec ago
Hasaan Ali Khan
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ISLAMABAD: Pakistan’s Minister for Maritime Affairs Qaiser Ahmed Shaikh invited South Korea to join Saudi Arabia, the United Arab Emirates, Denmark and Malaysia in investing in the country’s key port infrastructure, state-run media reported recently. 
Pakistan aims to bolster its maritime sector and enhance regional trade connectivity by modernizing its key port facilities, including the deep water Gwadar Port, and improving its infrastructure to increase cargo handling capacity and streamline trade routes.
Shaikh met South Korea’s Ambassador to Pakistan Park Ki Jun on Sunday to discuss Pakistan’s growing efforts to attract foreign investment in strategic sectors, with a focus on modernizing the country’s ports and boosting economic ties with leading Asian economies.
“Minister for Maritime Affairs Qaiser Ahmed Shaikh has invited the Korean government and investors to explore opportunities in Pakistan’s port and shipping industry,” the state broadcaster said. 
The minister highlighted that Saudi Arabia, UAE, Denmark and Malaysia had already made “significant investments” in Pakistani ports and hoped Korean investors would do the same. 
Shaikh said bilateral cooperation with South Korea could be strengthened in renewable energy, solar, wind, hydropower, urban planning and transportation sectors.
Lauding the educational exchange program between both countries, Shaikh reiterated Pakistan’s commitment to enhance its partnership with South Korea in key economic sectors, saying that Islamabad is aiming for a mutually beneficial relationship.
With access to the Arabian Sea, Pakistan’s seaports in the coastal city of Karachi are vital for international trade and provide jobs for thousands of people in the country. 
Pakistan has been working on restructuring and upgrading its ports. In August, Danish shipping firm Maersk expressed intent to invest $2 billion in Pakistan’s port and transport infrastructure over the next two years. 
This initiative is seen as a pivotal step toward boosting the country’s economic growth, strengthening trade links across Asia, and enhancing its geopolitical influence in the region.
Pakistani ministries of maritime, aviation and railways last week signed four agreements with the Abu Dhabi (AD) Ports Group to enhance collaboration in customs, rail, airport infrastructure and maritime shipping and logistics sectors. 
AD Ports Group, a leading maritime and logistics provider in the Middle East, signed an agreement in July this year to invest $250 million in Pakistan in 10 years as it plans to build an advanced port facility in the country’s seaside metropolis of Karachi.

Topics: Karachi port

Pakistan to press developed nations for unconditional climate funding as COP29 opens today

Pakistan to press developed nations for unconditional climate funding as COP29 opens today
Updated 21 sec ago
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Pakistan to press developed nations for unconditional climate funding as COP29 opens today

Pakistan to press developed nations for unconditional climate funding as COP29 opens today
  • Annual summit will see tough talks following year of disasters that have emboldened developing countries in demands for climate cash
  • Pakistan goes to COP29 as record air pollution has triggered hundreds of hospitalizations, school closures, stay-at-home orders
Updated 21 sec ago
SAIMA SHABBIR

ISLAMABAD: Pakistan will urge developed countries to fulfill past pledges and provide easy access to climate funding without attaching conditions as it attends the Conference of the Parties (COP29), which formally started in Baku today, Monday.
The annual UN climate summit will see tough talks on finance and trade, following a year of weather disasters that have emboldened developing countries in their demands for climate cash. Nearly 200 countries are gathering for the summit, where reaching a consensus for a deal among so many will be difficult.
“Pakistan is very clear on our stance on what we need from all the developed countries when it comes to the pledges, one, they need to complete their pledges, they need to fulfill their pledges, and two, easy access to the fundings,” Romina Khurshid Alam, PM Shehbaz Sharif’s coordinator on climate change, told Arab News in an interview this month.
Pakistan is ranked the 5th most vulnerable country to climate change, according to the Global Climate Risk Index. In 2022, devastating floods killed over 1,700 people and affected over 33 million, with economic losses exceeding $30 billion. 
International donors last January committed over $9 billion to help Pakistan recover from the ruinous floods but little of that cash has yet to trickle in, according to officials. 
Pakistan also regularly faces other climate change-induced affects such as droughts, cyclones, torrential rainstorms and heatwaves.
Currently, record-high air pollution levels have triggered hundreds of hospitalizations, school closures and stay-at-home orders in the eastern city of Lahore and other cities in the populous Punjab province, which has been enveloped in a thick, toxic smog since last month. 
A mix of low-grade fuel emissions from factories and vehicles, exacerbated by agricultural stubble burning, blanket Lahore and its surroundings each winter, trapped by cooler temperatures and slow-moving winds. The city of 14 million people stuffed with factories on the border with India regularly ranks among the world’s most polluted cities, but it has hit record levels this month, as has New Delhi. 
Pakistani authorities have said archrivals Pakistan and India need to coordinate actions to temper toxic smog, which winds carry across the border.
“We are open to dialogues and open to come up with the solution, we want to get the things done by dialogue,” Alam said, noting that the chief minister of Pakistan’s Punjab had also urged India to pursue diplomacy to resolve this issue. 
“This is not a game, the main thing is to think about the children and to think about the future.”
Last year, the Punjab government tested artificial rain to try to overcome the smog, and this year, trucks with water cannons have sprayed the streets, with no results.
The WHO says air pollution can trigger strokes, heart disease, lung cancer and other respiratory diseases. It is particularly punishing for children and babies, and the elderly.

Topics: Pakistan in cop29 UN COP29

Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body 

Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body 
Updated 4 min 10 sec ago
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Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body 

Lucky Cement to set up hybrid wind-solar power plant under Pakistan’s special investment body 
  • In the past, Lucky Cement has commissioned 42.8 MW solar power plant in Karachi
  • Power consumption in Pakistan has declined 8-10% year on year in past 3 quarters 
Updated 4 min 10 sec ago
Arab News Pakistan

ISLAMABAD: One of Pakistan’s largest domestic cement producers, Lucky Cement, will set up a hybrid wind and solar power project under the Special Investment Facilitation Council (SIFC), state media said on Monday.
Private investment is low and declining in Pakistan, which has very low rates of private investment relative to regional and comparable countries, around one-third of the South Asia average, according to World Bank data released in 2023. Private investment declined from an average of 13.7 percent of GDP in the 2000s to around 10 percent in FY21.
The government set up the SIFC last year to attract foreign investment and also create better conditions and remove bottlenecks for domestic companies who have historically faced unfair competition from state-owned entities undertaking commercial operations and received little support when seeking to access new overseas markets.
“Special Investment Facilitation Council is supporting private companies for development of energy sector,” Radio Pakistan reported. “As part of these efforts, Lucky Cement has planned a hybrid wind and solar power project which will generate environment friendly electricity.”
In the past, Lucky Cement has commissioned a 42.8 MW solar power plant in Karachi.
Power consumption in Pakistan has declined 8-10 percent year on year over the past three quarters, according to energy ministry data. Power consumption is a significant economic indicator in the developing economy and another expected decline this year underscores challenges facing the newly elected government in debt-laden Pakistan, amid growing discontent among the poor.
Poor and middle class households are still feeling the impact of the International Monetary Fund’s bailout of Pakistan last year, which contributed to rising retail prices including fuel and electricity charges.
Power cuts are also frequent in Pakistan, especially in far flung rural areas, due to grid issues, delays in importing fuel and hard currency shortages, though the frequency of such outages have reduced in the recent months.

Topics: solar energy wind energy Lucky Cement Pakistan Special Investment Facilitation Council (SIFC)

Pakistan limits outdoor activities, market hours to curb air pollution-related illness

Pakistan limits outdoor activities, market hours to curb air pollution-related illness
Updated 23 min 50 sec ago
Reuters
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Pakistan limits outdoor activities, market hours to curb air pollution-related illness

Pakistan limits outdoor activities, market hours to curb air pollution-related illness
  • Punjab government says “unavoidable religious rites” exempt from latest smog-related restrictions
  • Several parts of South Asia are engulfed by toxic haze each winter as cold air traps dust, emissions
Updated 23 min 50 sec ago
Reuters

LAHORE: Pakistan’s Punjab province banned most outdoor activities and ordered shops, markets and malls in some areas to close early from Monday to curb illnesses caused by intense air pollution.
The province has already closed educational institutions and public spaces like parks and zoos until Nov. 17 in places including Lahore, the world’s most polluted city in terms of air quality according to Swiss group IQAir’s live ratings.
The districts of Lahore, Multan, Faisalabad, and Gujranwala have seen an unprecedented rise in patients with respiratory diseases, eye and throat irritation, and pink eye disease, the Punjab government said in an order issued late on Sunday.
The new restrictions would also remain in force until Nov. 17, it said.
“The spread of conjunctivitis/ pink eye disease due to bacterial or viral infection, smoke, dust or chemical exposure is posing a serious and imminent threat to public health,” it said.
While outdoor activities including outdoor sports events, exhibitions and festivals, and outdoor dining at restaurants have been prohibited, “unavoidable religious rites” are exempt from this direction, the order said.
Some outlets like pharmacies, oil depots, dairy shops, and fruit and vegetable shops have similarly been exempted from the directions to close by 8 p.m. local time.
Lahore’s air quality remained hazardous on Monday, with an index score of more than 600, according to IQAir, but this was significantly lower than the 1,900 that it touched in some places earlier this month.
A score of 0-50 is considered ‘good’.
Several parts of South Asia are engulfed by a toxic haze each winter as cold air traps dust, emissions, and smoke from farm fires.
Punjab has blamed its particularly toxic air this year on pollution wafting in from India, where northern parts have also been battling hazardous air, and has said it will take the issue up with the neighboring country through its foreign ministry.
India’s Supreme Court on Monday directed the Delhi government to decide by Nov. 25 on imposing a ‘perpetual ban’ on firecrackers, legal news portal Bar and Bench reported.
Firecrackers set off by revellers on Diwali, the Hindu festival of lights that was celebrated on Oct. 31 this year despite a ban, has aggravated the region’s pollution problem.

Topics: Pakistan Smog Lahore Smog smog

Pakistani-led Canadian group Al-Nihang’s offers $358 million to acquire PIA

Pakistani-led Canadian group Al-Nihang’s offers $358 million to acquire PIA
Updated 49 min 15 sec ago
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Pakistani-led Canadian group Al-Nihang’s offers $358 million to acquire PIA

Pakistani-led Canadian group Al-Nihang’s offers $358 million to acquire PIA
  • Plans to privatize national carrier hit a snag when bidding process last month attracted just one bid
  • Al-Nihang’s will be responsible for PIA’s existing liabilities of $896 million, retain all employees for 3 years
Updated 49 min 15 sec ago
NAIMAT KHAN

KARACHI: A business group in Canada led by a Pakistani expat has offered the Pakistan government around Rs100 billion ($358 million) to acquire its debt-ridden national carrier, Pakistan International Airlines (PIA), a letter written by the group’s CEO earlier this month shows. 
Cash-strapped Pakistan was looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program. The process, however, hit a snag last month when the final bidding round attracted just one bid of Rs10 billion ($36 million) for a 60 percent stake in the national flag carrier.
The offer letter by the Al-Nihang’s Group, dated Nov. 3, has been sent to the ministries of aviation, defense and privatization as well as the Establishment Division and the Planning Commission.
“I am writing to formally present an offer to acquire PIA at a valuation of PKR 100 billion in recognition of its invaluable role as Pakistan’s national carrier,” Al-Nihang’s CEO Faqir Muhammad M Ali said in the letter.
“Al-Nihang’s Group will acquire the full shareholding of PIA in accordance with the terms outlined in the tender proposal, assuming comprehensive ownership.”
Among proposed acquisition conditions, the group will be responsible for PIA’s existing liabilities, amounting to approximately Rs250 billion ($896 million), and ensure all outstanding payments. It would also retain all current PIA employees for a period of 2-3 years and commit to continue paying salaries and benefits.
There has been no comment as yet from Pakistani authorities regarding the offer.
Little information could be found online about Al-Nihang’s group, but the website of the group’s CEO said he served as a magistrate in Jhang from 1992 to 1994, and was the youngest nominated senator in 1996. Since then, he has worked in the UK and Canada, where he helped negotiate an airline treaty between Pakistan and Canada and also served as the president of the Pakistan Canada Association of Hamilton, according to the website.
The government had pre-qualified six groups for PIA’s privatization process in June, but only real-estate development company Blue World City participated in the bidding process last month, placing a bid that was below the government-set minimum price of Rs85 billion ($304 million). 
The disposal of PIA is a step former governments have steered away from, as it has been highly unpopular given the number of layoffs that would likely result from it.
Other concerns raised by potential bidders for the PIA stake included inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.

Topics: Pakistan International Airlines (PIA) PIA privatization

Pakistan Stock Exchange breaches record 94,000 points barrier during intraday trading

Pakistan Stock Exchange breaches record 94,000 points barrier during intraday trading
Updated 11 November 2024
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Pakistan Stock Exchange breaches record 94,000 points barrier during intraday trading

Pakistan Stock Exchange breaches record 94,000 points barrier during intraday trading
  • Rupee stability, falling bank lending rates played catalyst role in stock market’s bullish activity, says analyst
  • Pakistan Stock Exchange has witnessed bullish trend since last Monday when government slashed policy rate
Updated 11 November 2024
Shahjahan Khurram

ISLAMABAD: The Pakistan Stock Exchange (PSX) soared to a record high during intraday trading on Monday, breaching the 94,000 points barrier for the first time which analysts attributed to improved market sentiments due to rupee stability and the government’s move to slash the policy rate. 
The KSE-100 Index rose to a record 94,020 points, a level never seen before in PSX history, during intraday trading on Monday. The stock market has been experiencing a bullish trend since last week which was evident when it breached the 93,000 points barrier for the first time on Friday.
Ahsan Mehanti of Arif Habib Corporation told Arab News the bullish trend was led by blue chip companies after American finance company MSCI revised Pakistan’s expected sta­n­dard index weight for November to 4.4 percent. The MSCI, in its latest review this month, announced the addition of eight Pakistani companies to its Frontier Market Small Cap Index.
“Rupee stability and falling bank lending rates following a slump in government bond yields played a catalyst role in bullish activity at PSX,” Mehanti told Arab News via text. 
The bullish trend has been observed in the stock market since last Monday when Pakistan’s central bank cut its key policy rate by 250 basis points, bringing it to 15 percent. This was the fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.
Pakistan continues to enjoy record gains in the stock market as its economic indicators continue to improve after Islamabad secured a $7 billion, 37-month bailout package from the International Monetary Fund (IMF) in September. 
Last year, Pakistan narrowly avoided a sovereign default when it clinched a last-gasp $3 billion IMF bailout program. The country has suffered a prolonged economic crisis that drained its foreign exchange reserves and saw its currency weaken amid double-digit inflation.

Topics: Pakistan Stock Exchange (PSX)

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