Pakistan seeks Saudi support for desert reclamation, afforestation projects amid climate worries

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Updated 11 July 2025
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Pakistan seeks Saudi support for desert reclamation, afforestation projects amid climate worries

Pakistan seeks Saudi support for desert reclamation, afforestation projects amid climate worries
  • Pakistan, Saudi Arabia signed an agreement in 2022 to cooperate in nine environmental areas, including desertification and biodiversity
  • Climate Change Minister Musadik Malik says he will soon visit the Kingdom to discuss climate collaboration between the two countries

ISLAMABAD: Pakistan’s Climate Change Minister Musadik Malik has said that his ministry is seeking Saudi Arabia’s support for comprehensive climate projects that include desert reclamation, afforestation and carbon offset initiatives, amid Islamabad’s efforts to deal with climate-related challenges.

Pakistan has 4.2 million hectares of forest and planted trees, which equates to 4.8 percent of its total land area, according to the United Nations’ Food and Agriculture Organization. The country is currently focusing on combating desertification through afforestation, water management and sustainable agricultural practices.

Saudi Arabia, on the other hand, is playing a leading role in global climate action and launched in 2021 the Middle East Green Initiative (MGI) that aims to mitigate climate change impacts by raising $10.4 billion for clean energy, planting 50 billion trees and restoring degraded lands spanning 200 million hectares in the Middle East and North Africa (MENA) region.

In February 2022, the two brotherly countries signed a memorandum of understanding (MoU) to cooperate in nine environmental areas, including pollution control, nature protection, forestry, biodiversity, desertification, hazardous waste management, marine conservation, air quality monitoring and environmental training exchanges.

“I am going to work directly with them [Saudi Arabia] on climate initiatives, on claiming deserts, on building forests, and on [carbon] offsetting,” Malik told Arab News in an interview on Thursday.

“I just need a little bit more time to put a package together.”

He said Saudi Arabia had always extended its unwavering support to Pakistan and he would soon visit the Kingdom to discuss climate collaboration between the two nations.

“It’s on my table right now to put together those projects with carbon offsets, or whatever those initiatives are, and take them there, which are viable, real, doable and meaningful,” Malik said.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change and has seen erratic changes in its weather patterns, which have led to frequent heatwaves, untimely rains, floods, storms, cyclones and droughts in recent years.

Malik said his ministry was working on green mobility and recycling initiatives in partnership with Gulf Cooperation Council (GCC) countries, particularly the United Arab Emirates (UAE), to drive climate action to benefit the poor.

“They have sent me a letter about starting a movement on behalf of the entire world south… moving the recycling kind of revolution in a manner which serves the poor people of Pakistan,” he said.

In 2022, deadly floods submerged a third of Pakistan, claimed more than 1,700 lives and affected 33 million people, causing more than $30 billion in economic losses. 

So far this monsoon season, which began in late June, at least 87 people have been killed and 149 others injured in rain-related incidents across Pakistan, with the death toll expected to rise further as heavy rains continue to batter the South Asian nation.

But Malik believed the country was unlikely to face flood-like conditions similar to 2022 as the climate patterns showed a “balancing effect” between glacier melt and rainfall.

“Where the melting is increasing, the rainfalls are projected to decrease,” he said. “The signs, the projections that we have seen, the numbers that we have seen, basically show that hopefully we would have a good, decent, and manageable year.”

Speaking of Pakistan’s early warning systems, the minister acknowledged “serious gaps” in the mechanisms despite previous investments, saying efforts were underway to fix deficiencies that hinder timely disaster alerts.

“The early warning systems, after all of the investments that we’ve done… they are not able to give us warning in a timely manner… those systems are not working,” he said.

Asked about international climate funding to Pakistan post-2022 floods, Malik said the funding was declining due to Pakistan’s “limited absorptive capacity and lack of impactful projects.”

“We did not have a lot of absorptive power and even when funding was available, we did not come up with enough projects,” he said, adding that the country could only draw around $50-$70 million despite $500 million commitments.

He said his ministry had engaged youngsters from environmental sciences background to develop ideas, projects and startups to help attract international funding.

“We are going to come up with lowest cost, highest impact projects, and we are going to go after them,” Malik added.


Pakistani banks lead Asia-Pacific in stock gains as economy stabilizes

Pakistani banks lead Asia-Pacific in stock gains as economy stabilizes
Updated 07 October 2025
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Pakistani banks lead Asia-Pacific in stock gains as economy stabilizes

Pakistani banks lead Asia-Pacific in stock gains as economy stabilizes
  • Six Pakistani lenders among Asia-Pacific’s best-performing bank stocks, led by Bank of Punjab and Bank of Khyber
  • Surge in share values reflects renewed investor confidence amid IMF reforms and currency stabilization

ISLAMABAD: Pakistani banks outperformed all their Asia-Pacific peers in the third quarter of 2025, with several local lenders topping a regional list of best-performing bank stocks, according to data from market analytics firm S&P Global Market Intelligence.

The strong performance reflects growing investor confidence in Pakistan’s financial sector as the country’s economy shows signs of stabilization following last year’s $7 billion International Monetary Fund bailout. The program helped ease fears of default, strengthen foreign reserves and stabilize the rupee after two years of severe fiscal stress. Inflation has eased from record highs, and the government is moving ahead with privatization, tax and energy reforms, and digitalization drives, all aimed at restoring credibility among investors and lenders.

“Pakistan-based lenders dominated a ranking of Asia-Pacific banks with the best-performing stocks in terms of total return in the third quarter,” S&P Global Market Intelligence said in its latest report, noting that local equities had strengthened during the review period.

The market data firm said its quarterly analysis covered publicly traded Asia-Pacific banks with a market capitalization greater than $100 million, using total returns calculated between June 30 and Sept. 30, 2025.

According to the analysis, the Bank of Punjab was the best performer, delivering a total return of 176.4 percent between June 30 and Sept. 30. The Bank of Khyber ranked second with 108.2 percent, while National Bank of Pakistan, JS Bank Ltd., Askari Bank Ltd., and Habib Bank Ltd. also featured among the top 15 performers.

A “total return” measures how much value investors gained from both stock price appreciation and dividends over a specific period, a key indicator of confidence in a bank’s financial strength and profitability.

The rally in Pakistani bank shares underscores optimism over the government’s reform trajectory and macroeconomic stability, even as challenges persist in the form of high energy costs, sluggish exports, and vulnerability to climate shocks.

Beyond Pakistan, PT Allo Bank Indonesia Tbk took the third spot with an 89.2 percent total return, while Vietnam Prosperity Joint Stock Commercial Bank, the largest by market capitalization among the top 15, placed seventh with a 68.1 percent gain.

At the other end of the spectrum, Indonesia’s PT Bank Nationalnobu Tbk posted the steepest losses with a negative 31.9 percent total return, followed by several mid-tier Chinese and Indian banks that saw weaker performances amid slower credit growth and domestic market pressures. 


Pakistan asks provinces to fund flood recovery, an IMF condition provinces call unfair

Pakistan asks provinces to fund flood recovery, an IMF condition provinces call unfair
Updated 07 October 2025
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Pakistan asks provinces to fund flood recovery, an IMF condition provinces call unfair

Pakistan asks provinces to fund flood recovery, an IMF condition provinces call unfair
  • IMF mission in Islamabad for $8.4 billion loan review as government faces pressure over flood response
  • Provinces warn move shifts burden of national disaster to local budgets already strained by delayed transfers

ISLAMABAD: Pakistan’s government has asked provincial administrations to finance flood-recovery projects in line with the International Monetary Fund’s (IMF) conditions under its $8.4 billion loan programs, officials from the Sindh and Khyber Pakhtunkhwa provinces said on Tuesday.

The move comes as an IMF mission led by its chief Iva Petrova is in Islamabad for talks on the second review under a $7 billion Extended Fund Facility (EFF) and the first under a $1.4 billion Resilience and Sustainability Facility (RSF). A successful review could unlock about $1 billion in budgetary support and $100 million for climate-resilience funding from the lender.

Prime Minister Shehbaz Sharif has said the recent flood damages should be taken into account and “factored in” as the IMF assesses Pakistan’s fiscal performance, arguing that the scale of the disaster underscores the need for flexibility in the review process. The floods have killed more than 1,000 people and destroyed crops and infrastructure worth around $1.3 billion, according to initial government estimates.

The IMF has long urged Pakistan to improve coordination between federal and provincial governments on natural-disaster response and financing — a measure that officials say has prompted Islamabad to ask provinces to fund part of the country’s flood-recovery program. Provincial governments, however, say the move shifts the burden of a national disaster onto their already stretched budgets.

“The federal government has asked provinces to fund flood recovery schemes under IMF pressure,” Sharmila Farooqui, a member of Pakistan’s parliamentary finance committee from Sindh, the country’s second largest province, told Arab News.

“This is neither fair nor feasible. Provinces like Sindh, which suffered the worst devastation, cannot be expected to shoulder the cost of a national disaster from already strained budgets,” she said. “Flood recovery is a federal responsibility and must be treated as a national priority.”

Farooqui added that while Islamabad had not “formally” requested Sindh, discussions were ongoing and “the buzz is going around.” She said the federal government could not abdicate its duty by passing the burden to the provinces. 

“Equity, compassion, and transparency must guide this process.”

Muzzammil Aslam, finance minister of Khyber Pakhtunkhwa, also confirmed that the federal government wanted provinces to fund flood-recovery projects. 

“Yes, it’s partly true,” Aslam told Arab News in a text message. “We, KP, actually endorsed this from day one.”

“On IMF targets, it’s conditional on the Federal Board of Revenue’s tax collections and timely payments of straight transfers,” he said.

Both Aslam and Farooqui criticized delays in the transfer of federal revenue shares to provinces under Pakistan’s fiscal distribution system, known as the National Finance Commission (NFC) award.

“They always do. Same situation every year,” said Farooqui, who is from Sindh, Pakistan’s second-largest province, which contributes more than 60 percent of federal revenues.

She said the delay in federal transfers was a routine occurrence. 

“While I was in Sindh as a provincial lawmaker, we would raise this issue every year during the budget. A major portion is always delayed.”

Pakistan remains highly exposed to extreme weather events that pose major fiscal and development risks for its cash-strapped economy. The IMF’s RSF loan is designed to help buffer the nation from climate-related growth and balance-of-payments shocks.

“(The RSF) aims to reduce Pakistan’s balance-of-payments stability risks stemming from climate vulnerabilities,” the IMF said in its latest review report.

Government estimates show the latest floods have damaged crops and infrastructure worth about $1.3 billion, mostly in the country’s breadbasket Punjab province.


Pakistan plans to access USD, Euro, Islamic Sukuk markets ‘in due course’ — finmin

Pakistan plans to access USD, Euro, Islamic Sukuk markets ‘in due course’ — finmin
Updated 07 October 2025
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Pakistan plans to access USD, Euro, Islamic Sukuk markets ‘in due course’ — finmin

Pakistan plans to access USD, Euro, Islamic Sukuk markets ‘in due course’ — finmin
  • High-level Acumen delegation led by founder Jacqueline Novogratz meets finance minister in Islamabad
  • Finance minister highlights tax, energy and privatization reforms to boost investor confidence

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday the country plans to tap the US dollar, euro and Islamic sukuk markets “in due course” as part of efforts to diversify funding sources and sustain economic stability.

The announcement came during a meeting with a high-level Acumen delegation led by founder and Chief Executive Officer Jacqueline Novogratz. The delegation of board members and global investors is visiting Pakistan to meet government officials and private stakeholders in a move seen as a sign of renewed foreign interest in the South Asian nation’s economy.

“Aurangzeb also discussed Pakistan’s plans to issue its inaugural Panda Bond before the year’s end and its intent to access USD, Euro, and Islamic Sukuk markets in due course,” the Finance Division said in a statement after the meeting.

A Panda Bond is a type of debt issued by a foreign borrower in China’s domestic market, denominated in renminbi (RMB). It enables foreign governments and companies to raise funds from Chinese investors and broaden their financing base.

“The Minister reaffirmed that the private sector must lead Pakistan’s economic growth, while the government’s role is to provide a supportive ecosystem,” the finance ministry statement said.

“He highlighted Pakistan’s move toward an export-led growth model, supported by tariff reforms and responsible fiscal management, aimed at ending the boom-and-bust cycle.”

Aurangzeb appreciated Acumen’s continued engagement in Pakistan, particularly its focus on agriculture and climate resilience. He also informed the delegation about the clearance of backlogs in repatriating foreign profits and dividends, noting that the recent $500 million Eurobond repayment had been handled as a routine transaction, a sign of returning macroeconomic stability.

Aurangzeb highlighted Pakistan’s focus on structural reforms in taxation, energy and privatization, including the final stages of Pakistan International Airlines’ divestment and the planned privatization of power distribution companies. 

The minister also underscored Pakistan’s commitment to climate-resilient development, noting that the country faces twin challenges of population growth and climate change, which have intensified floods and droughts in recent years. He said policies promoting decarbonization, nutrition and education were being embedded in Pakistan’s ten-year Country Partnership Framework with the World Bank — a long-term plan that guides the Bank’s support for the country’s economic and climate priorities.

According to the finance ministry statement, Novogratz said expanding access to finance for Pakistan’s young talent could help transform innovative ideas into scalable businesses and reaffirmed Acumen’s commitment to invest in agriculture, climate resilience, energy and poverty reduction in the country. 

The delegation also discussed progress on Acumen’s $90 million Agriculture Resilience Fund for Pakistan, which aims to promote climate-smart farming and sustainable food systems. 


US names Pakistan, Saudi Arabia among buyers in new American air-to-air missile deal

US names Pakistan, Saudi Arabia among buyers in new American air-to-air missile deal
Updated 07 October 2025
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US names Pakistan, Saudi Arabia among buyers in new American air-to-air missile deal

US names Pakistan, Saudi Arabia among buyers in new American air-to-air missile deal
  • Department of War lists both nations in $41.7 million Raytheon contract for fighter-jet missiles
  • Separate $24 million award covers communications upgrades on Saudi F-15 aircraft

ISLAMABAD: The US Department of War has named Pakistan and Saudi Arabia among countries included in a new contract for the supply of US-made air-to-air missiles, while separately approving a deal to improve communications systems on Saudi fighter jets, according to an official statement released on its website.

In its Sept. 30 bulletin, the Department of War said it had awarded Raytheon Missiles & Defense a $41.68 million modification “to provide production support for the Advanced Medium-Range Air-to-Air Missile,” a weapon designed to enable fighter aircraft to destroy enemy planes at long range.

The same announcement listed a wide range of US allies and partners receiving the system through the Foreign Military Sales program.

“This contract involves foreign military sales to United Kingdom, Poland, Pakistan, Germany, Finland, Australia, Romania, Qatar, Oman, Korea, Greece, Switzerland, Portugal, Singapore, Netherlands, Czech Republic, Japan, Slovakia, Denmark, Canada, Belgium, Bahrain, Saudi Arabia, Italy, Norway, Spain, Kuwait, Finland, Sweden, Taiwan, Lithuania, Israel, Bulgaria, Hungary and Turkiye,” the Department of War statement read.

The release did not specify how many missiles each country would receive or when deliveries would begin, details that are typically disclosed later through government-to-government filings.

The contract funds ongoing production of the Advanced Medium-Range Air-to-Air Missile (AMRAAM), which is used by more than 40 countries. Pakistan employs the system on its F-16 fighter jets, while Saudi Arabia operates it on F-15 aircraft.

Pakistan’s defense ministry had not issued any public comment on the latest contract listings as of Tuesday.

In a separate notice, the Department of War announced a $24.17 million contract for technical support to upgrade Link-16, a secure tactical data network that enables Saudi F-15 pilots and command centers to share real-time information on targets and threats. The work will be carried out in Saudi Arabia and continue through March 2031, the department said.

Both awards reflect Washington’s continuing defense cooperation with partners in the Middle East and South Asia. While Pakistan and Saudi Arabia are regularly listed in such multi-nation programs, the Department of War rarely releases individual country breakdowns in initial contract statements.

The Advanced Medium-Range Air-to-Air Missile has been a cornerstone of US and allied air defense for over three decades, capable of striking airborne targets at ranges exceeding 30 kilometers depending on the variant. 


Punjab disaster agency warns of possible medium flood in Sutlej river this week

Punjab disaster agency warns of possible medium flood in Sutlej river this week
Updated 07 October 2025
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Punjab disaster agency warns of possible medium flood in Sutlej river this week

Punjab disaster agency warns of possible medium flood in Sutlej river this week
  • PDMA says Ganda Singh Wala point may see medium flood as river levels rise
  • Monsoons have killed over 1,000 people, damaged millions of acres of farmland

ISLAMABAD: The Provincial Disaster Management Authority (PDMA) Punjab on Tuesday warned that the River Sutlej could reach medium flood level within the next 24 hours, with the level expected to persist for up to two days, though most rivers across the province currently remain within safe limits.

The advisory follows weeks of heavy monsoon rains that have killed more than 1,000 people nationwide, displaced thousands, and damaged over 2.5 million acres of farmland, according to official figures. Punjab — Pakistan’s agricultural heartland — has experienced repeated flooding since August after excess water releases from India and persistent rainfall left riverbanks and embankments saturated.

“The River Sutlej at Ganda Singh Wala is expected to reach the Medium Flood Level within the next 24 hours and sustain the level for the subsequent two days,” the PDMA said in its latest advisory, referring to a border town and river monitoring point located near Kasur district in Punjab along the Pakistan–India border.

The agency said water levels in the Sutlej and Ravi rivers depend on releases from Indian reservoirs and directed all divisional commissioners and deputy commissioners to remain on high alert. It also placed the Health, Irrigation, Communication and Works, Local Government, and Livestock Departments on standby for possible flood response operations.

PDMA Director General Irfan Ali Kathia said the River Sutlej currently has a low flood level at the Ganda Singh Wala point, adding that flows could increase in the next 48 hours due to upstream inflows and rainfall in the catchment areas.

“District administrations have been directed to stay alert as water levels in Punjab’s rivers and associated tributaries may rise due to continuing rainfall,” Kathia said.

The PDMA instructed all relevant departments to ensure round-the-clock staffing in emergency centers, activation of early warning systems, and pre-placement of heavy machinery in at-risk areas to manage potential breaches or road damage.

Citizens were urged to exercise caution during bad weather and stay informed through official PDMA updates. The agency said its control room was monitoring river flows continuously, coordinating with the Irrigation Department and local administrations for real-time response.