Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly

Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly
President Donald Trump signs an executive order in the Oval Office of the White House in Washington on January 20, 2025. (AP/File)
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Updated 28 January 2025
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Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly

Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly
  • US last week paused all foreign assistance to countries, saying will review if they are consistent with foreign policy
  • Washington has invested in Pakistan’s critical energy, economic development and agriculture sectors over the years

KARACHI: Pakistani economists and former diplomats on Tuesday brushed aside the new American administration’s decision to suspend foreign assistance for countries around the world including Pakistan, saying it will not have a significant impact on the South Asian country and could even force Islamabad to undertake much-needed economic reforms. 

US State Department confirmed on Sunday that Washington has paused all US foreign assistance funded by or through the State Department and US Agency for International Development (USAID), adding that America would review all foreign assistance programs to ensure if they are efficient and consistent with US foreign policy.

The program affects all recipient countries, including Pakistan, where numerous US-funded programs are currently in progress. For over 70 years, the US-Pakistan development partnership has been instrumental in supporting sectors such as energy, economy, agriculture, education and health. The South Asian country has been grappling with an economic crisis that in 2023 almost pushed it toward a sovereign default. 

Washington has invested over $205 million in Pakistan’s energy sector, as per USAID’s website and has also provided assistance to economic development programs such as the Investment Promotion Activity ($16.8 million) and the Pakistan Private Investment Initiative ($43.5 million), aimed at enhancing Pakistan’s business climate and supporting small and medium enterprises (SMEs).

“I’m not sure if the suspension of aid will be very harmful because the real harm to the economy is coming from our own policy governance,” Kaiser Bengali, a leading Pakistani economist, told Arab News. 

“On the whole at the macro level, we have seen that in the last 40 years, foreign assistance has not contributed to the economy.”

Bengali said Pakistan’s current economic issues were largely self-created.

“We have created this deficit, balance of trade, balance of payments [crisis],” he said. “We have created a huge debt burden, borrowing loan after loan for the past thirty years and not investing debt funds to increase the productivity of the economy.” 

Pakistan’s Information Minister Ataullah Tarar and Khurram Schehzad, adviser to the government on finance, did not respond to Arab News’ request for comment. Pakistan’s foreign officer spokesperson Shafqat Ali Khan said he would address the queries during the foreign office’s weekly press briefing.

Zamir Akram, a former Pakistani ambassador, agreed with Bengali. He said Washington’s assistance to Pakistan is “limited” and its overall impact on the country’s economy is “negligible.”

“Since the US assistance for Pakistan is less and its funding is very low, it doesn’t have great impact,” Akram told Arab News. “We don’t know the amount of project-based assistance but its overall national assistance for Pakistan is negligent. So that’s why it won’t make any impact.”

However, Ahmed Bilal Mehboob, founder and president of Islamabad-based think tank Pakistan Institute of Legislative Development and Transparency (PILDAT), emphasized that the suspension could have significant consequences for Pakistan’s civil society and development sectors. 

Mehboob said an estimated 10,000 to 15,000 people were working in organizations working to protect democracy and human rights in Pakistan.

“If funding is halted in the future, not only will thousands be left unemployed but governance and human rights work will also be severely affected,” Mehboob told Arab News. 

However, he cited India’s example where civil rights groups grew indigenously, saying that they began receiving minimal foreign funding much later. 

“Sincere people will continue their work using local resources,” he said. 

Bengali said there might be a silver lining to the suspension of foreign assistance, adding that it may prompt Pakistan to seek local solutions and implement necessary reforms.

“If the entire world stopped funding Pakistan, that would actually be a big favor to the country,” Bengali said. “It would force us to make the necessary reforms and find our own solutions.”


Pakistan takes steps to enhance workforce skills for Middle Eastern job market — official

Pakistan takes steps to enhance workforce skills for Middle Eastern job market — official
Updated 16 sec ago
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Pakistan takes steps to enhance workforce skills for Middle Eastern job market — official

Pakistan takes steps to enhance workforce skills for Middle Eastern job market — official
  • Government is integrating interpersonal and problem-solving skills into technical and vocational training
  • Pakistan heavily relies on remittances which is a key source of foreign exchange for its struggling economy

ISLAMABAD: A senior Pakistani official said on Friday the government had taken key measures to bridge the skills gap and boost the global competitiveness of people aspiring to work abroad, particularly in the Middle East, to better integrate them into the international job market, state media reported.
Pakistan relies heavily on remittances sent by its overseas nationals, a key source of foreign exchange that serves as a lifeline for its struggling economy. Many Pakistani workers seek jobs in Gulf countries, where demand for skilled labor remains high.
At the same time, the government has been working to open legal avenues for employment abroad following a series of tragic boat accidents involving illegal immigrants attempting to reach European shores, with dozens of Pakistanis among the victims.
Parliamentary Secretary for Federal Education and Professional Training Farah Naz Akbar shared the government’s strategy for workforce development while responding to questions during a National Assembly session.
“The government is integrating life skills and soft skills — such as communication, problem-solving, teamwork, interpersonal skills and work ethics — into technical and vocational training programs,” the state-run Associated Press of Pakistan (APP) news agency said while reporting on her briefing to the assembly. “These skills are highly valued by Middle Eastern employers and are crucial for workplace success.”
“The curriculum is also being updated to reflect the latest industry trends and technologies, ensuring that Pakistani workers are equipped with relevant knowledge and skills to meet evolving job market demands in the Middle East,” it added.
Akbar said as part of these reforms, Pakistan has established the Pakistan Skill Company and the Pakistan Skill Development Fund to centralize and improve technical and vocational training across the country, aiming to create better employment opportunities for workers abroad.
To align Pakistani qualifications with international standards, the government has revised National Vocational Qualification Framework (NVQF) regulations, ensuring that workers’ certifications meet the requirements of both European Union (EU) and Gulf Cooperation Council (GCC) countries.
Akbar said authorities were shifting toward competency-based training programs, which emphasize practical skills and hands-on experience, ensuring that workers are not only trained but also proficient in job-specific skills required by Middle Eastern employers.
She noted the measures were part of a comprehensive strategy to strengthen Pakistan’s labor force and increase employment opportunities for skilled workers in the Middle East.


New Zealand’s O’Rourke’s four wickets limit Pakistan to 242 in tri-series final

New Zealand’s O’Rourke’s four wickets limit Pakistan to 242 in tri-series final
Updated 13 min 13 sec ago
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New Zealand’s O’Rourke’s four wickets limit Pakistan to 242 in tri-series final

New Zealand’s O’Rourke’s four wickets limit Pakistan to 242 in tri-series final
  • Final is a dress rehearsal for opening Champions Trophy match between the two sides on Wednesday
  • Pakistan’s batting ace Baber Azam scored confident 29, reaching 6,000 runs in one-day internationals

KARACHI: New Zealand pace bowler Will O’Rourke took four wickets to restrict Pakistan to a modest 242 runs in the tri-series final in Karachi on Friday.
O’Rourke finished with 4-43 and was ably supported by spinners Mitchell Santner (2-20) and Michael Bracewell (2-38) as Pakistan were dismissed in 49.3 overs after they won the toss and batted.
Skipper Mohammad Rizwan top-scored with a 76-ball 46, while Salman Agha hit 45 off 65 balls, with slow and variable bounce on the National Stadium pitch proving tough for batting.
The final is a dress rehearsal for the opening match of the Champions Trophy between the same teams at the same venue on Wednesday.
Pakistan lost opener Fakhar Zaman to O’Rourke in the fourth over for 10 and then Saud Shakeel for eight.
Babar Azam looked good for his 29 runs, hitting four boundaries and a six, and reached 6,000 runs scored in one-day internationals when he was on 10.
He was playing his 123rd innings, the joint fastest to reach the 6,000-runs milestone with South African Hashim Amla.
Azam fell to a miscued shot off Nathan Smith, leaving Pakistan struggling at 54-3.
Rizwan and Agha, who shared a match-winning 260-run partnership against South Africa on Wednesday, then revived the innings with an 88-run stand.
Rizwan hit four boundaries and a six but he and Agha fell within 19 runs of each other to end any hope of a big total.
Tayyab Tahir hit a 33-ball 38, also with four boundaries and a six, while Faheem Ashraf (22) and Naseem Shah (19) added 39 invaluable runs to get Pakistan past 240.


Pakistani actors Kubra Khan and Gohar Rasheed share photos from Grand Mosque after nikkah in Makkah

Pakistani actors Kubra Khan and Gohar Rasheed share photos from Grand Mosque after nikkah in Makkah
Updated 34 min 22 sec ago
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Pakistani actors Kubra Khan and Gohar Rasheed share photos from Grand Mosque after nikkah in Makkah

Pakistani actors Kubra Khan and Gohar Rasheed share photos from Grand Mosque after nikkah in Makkah
  • Khan and Rasheed remain among the most recognized faces in Pakistan’s entertainment industry
  • One of the images on social media shows them in the attire worn by pilgrims performing Umrah

KARACHI: Pakistani actors Kubra Khan and Gohar Rasheed announced their wedding on Friday, sharing photos on Instagram taken at the Grand Mosque in Makkah with the Kaaba, the black cubic structure at the center of Islam’s most sacred mosque, in the background.
Khan and Rasheed remain among the most recognized faces in Pakistan’s entertainment industry. With their marriage now public, fans and colleagues have flooded social media with congratulatory messages, celebrating their union.
Arab News attempted to contact both actors for further comments but did not receive a response. Most of their friends also refrained from speaking on the matter, though some confirmed that the nikkah, the Islamic marriage contract requiring mutual consent, took place in the Grand Mosque earlier this week on February 12.
“Under the Kursi [throne] of Allah… 70 thousand angels as witnesses and Rehmat [mercy] pouring down on us like rain… Qubool hai,” the two actors said in a joint Instagram post, referencing the belief in divine presence and blessings during their marriage and mentioning their acceptance of the bond in the last two words.
The images with the post showed the couple in the white attire worn by pilgrims performing Umrah, including a close-up of their hands placed on the Kaaba with wedding rings and another of them smiling at each other against the sacred black cube.

This photo, jointly posted by the couple on their respective official Instagram accounts on February 14, 2025, shows a close-up of their hands placed on the Kaaba with wedding rings, announcing their marriage on February 12, at the Grand Mosque in Makkah. (Photo courtesy: Instagram/@thekubism/@mirzagoharrasheed)

The Grand Mosque is considered the most sacred site in Islam, where millions of Muslims gather to perform Hajj and Umrah each year.
Kubra Khan, born Rabia Iqbal Khan, is a British-Pakistani actor known for her roles in popular television dramas such as “Sang-e-Mar Mar,” “Alif” and “Hum Kahan Ke Sachay Thay,” as well as films like “Na Maloom Afraad” and “Jawani Phir Nahi Ani 2.”
Gohar Rasheed has built a reputation with performances in “Mann Mayal,” “Ishqiya” and “The Legend of Maula Jatt.” The two actors have been close friends for years and co-starred in the drama “Jannat Se Aagay,” fueling long-standing speculation about their relationship.


PM Sharif calls climate financing ‘crucial’ in talks with top UN official in Pakistan

PM Sharif calls climate financing ‘crucial’ in talks with top UN official in Pakistan
Updated 45 min 16 sec ago
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PM Sharif calls climate financing ‘crucial’ in talks with top UN official in Pakistan

PM Sharif calls climate financing ‘crucial’ in talks with top UN official in Pakistan
  • Pakistan is one of the world’s most climate-vulnerable nations, frequently battered by extreme weather events
  • The country has pushed for operationalization of Loss and Damages Fund for nations facing climate catastrophes

KARACHI: Prime Minister Shehbaz Sharif on Friday described climate financing as a “crucial component” of addressing the effects of climate change, urging developed nations to honor their commitments during a meeting with the United Nations’ top official in the country.
Despite contributing less than one percent to global carbon emissions, Pakistan remains one of the world’s most climate-vulnerable nations, frequently battered by extreme weather events.
The catastrophic floods of 2022 submerged a third of the country, affecting over 33 million people, killing more than 1,700 and inflicting about $30 billion in damages and economic losses.
In response, Pakistan has led efforts on climate financing, securing pledges at international platforms such as the COP27 climate conference in Egypt to assist in rebuilding climate-resilient infrastructure.
“[The Prime Minister] reaffirmed Pakistan’s strong political commitment to advancing the objective of combating climate change in close collaboration and partnership with the international community and the UN,” the PM Office said in a statement after Sharif’s meeting with UN Resident Coordinator Mohamed Yahya.
“The Prime Minister underscored that climate financing remained a crucial component of addressing the impacts of climate change, and expressed the hope that the developed nations would fulfill their commitments in that regard,” it added.
Pakistan has played a key role in pushing for the operationalization of the Loss and Damage Fund, an initiative to support nations suffering climate-induced destruction, in recent years.
Sharif also emphasized the need for reforms in the global financial system to increase the voice and representation of developing countries in international financial institutions in his meeting with the top UN official, according to the statement.
Last week, the UN Resident Coordinator called for “stronger international solidarity” in rebuilding homes in Pakistan’s flood-affected regions while speaking to Arab News.
He also described it as “unjust” for Pakistan to be asked to take loans for reconstruction, arguing that the crisis was caused by other countries, including 20 nations responsible for 80 percent of global emissions.


Habib Bank, S&P Global launch Pakistan’s first index to track manufacturing sector

Habib Bank, S&P Global launch Pakistan’s first index to track manufacturing sector
Updated 14 February 2025
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Habib Bank, S&P Global launch Pakistan’s first index to track manufacturing sector

Habib Bank, S&P Global launch Pakistan’s first index to track manufacturing sector
  • The index will be a standardized economic indicator based on a survey of a diverse panel of industries
  • It will help track economic developments in Pakistan, support decision making by financial institutions

ISLAMABAD: Pakistan’s largest bank, Habib Bank Limited (HBL), and global financial information and analytics firm S&P Global have launched a new index to track the country’s manufacturing sector, the companies said on Friday.
Rising taxes and power tariffs have led to social unrest and hammered industries in Pakistan’s $350 billion economy, as it navigates a tricky path to recovery under a $7 billion International Monetary Fund (IMF) program approved in September.
The HBL S&P Global Purchasing Managers’ Index will be a standardized economic indicator based on a survey of a diverse panel of industries.
It will be Pakistan’s first comprehensive manufacturing index and a welcome source of information for investors in a country where economic data is scarce.
The industries will be asked about their perceptions of current business conditions and future expectations and the index will be released on the first working day of each month, the companies said in a statement.
“The launch of Pakistan’s first ever PMI is a significant event contributing to the accessibility of timely and high-frequency data to track economic developments in Pakistan and support decision making by financial institutions, investors and businesses,” said Luke Thompson, Managing Director of S&P Global Market Intelligence, in a statement.
Muhammad Nassir Salim, President & CEO of HBL said the series will enhance investor confidence and transparency in Pakistan’s economy.