Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets

Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets
Muhammad Aurangzeb, Pakistan’s Minister of Finance and Revenue (third left), speaks during a meeting with Moody’s team in Islamabad on April 5, 2025. (AFP/File)
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Updated 15 July 2025
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Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets

Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets
  • Finance minister says improving macroeconomic indicators strengthening case to tap international markets
  • Pakistan has successfully arranged $1 billion in commercial financing from Middle Eastern, Aurangzeb tells Moody’s

ISLAMABAD: Pakistan is re-engaging with global financial markets, tapping funding from the Middle East and pursuing preferential tariff access with the United States as it works to stabilize its economy and attract fresh investment, Finance Minister Muhammad Aurangzeb said on Tuesday. 

Pakistan has “successfully arranged $1 billion in commercial financing from the Middle Eastern region” and plans to launch an inaugural Panda bond while exploring a Eurobond and other international debt markets as its credit ratings improve, Aurangzeb said during a briefing with the Moody’s rating agency on Tuesday.

“These changes, together with improving macroeconomic indicators and the reform momentum, would be positively acknowledged by rating agencies, further strengthening Pakistan’s case to tap international markets and deepen its external sector stability,” the finance minister said.

The virtual session, attended by the State Bank governor and senior officials, also highlighted “ongoing discussions with the United States on preferential tariff access,” which the minister described as “making encouraging headway.”

The finance team cited key progress under Pakistan’s IMF-backed economic plan. Recent reforms include “prudent fiscal measures” in the new budget, trade and tariff liberalization for export-led growth, and steps to rationalize spending.

Aurangzeb also pointed to signs of recovery, including a sharp drop in inflation, a lower policy rate, a stable exchange rate, a current account surplus and foreign reserves rising above $14 billion by the end of June.

He underlined plans to raise the tax-to-GDP ratio to 13–13.5 percent in the coming years through technology-driven tax administration, digitization and tougher enforcement. 

Under the prime minister’s direct oversight, he said, a “Rs. 2 trillion revenue delta” was achieved this year through “autonomous efforts.”

Despite repeated external and fiscal pressures, Pakistan says it hopes improved ratings and renewed investor confidence will lower borrowing costs and keep the economy on a sustainable path.

“Pakistan is ready to carry forward this journey of resilience, reform, and recovery to unlock long-term, inclusive, and export-oriented economic growth,” Aurangzeb said.


Pakistan says center, provinces united to promote learning on World Literacy Day 

Pakistan says center, provinces united to promote learning on World Literacy Day 
Updated 18 sec ago
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Pakistan says center, provinces united to promote learning on World Literacy Day 

Pakistan says center, provinces united to promote learning on World Literacy Day 
  • Alarmingly, Pakistan has one of the highest populations of children out of schools, over 26 million 
  • Pakistan PM says country’s literacy rate below modern global requirements, other South Asian states

ISLAMABAD: Prime Minister Shehbaz Sharif on Monday expressed alarm at Pakistan’s low literacy rate, stressing that the country’s federal and provincial governments were united in their efforts to promote learning as the international community marks World Literacy Day today. 

Since 1967, annual celebrations of World Literacy Day have taken place on Sept. 8 around the world to remind policymakers, practitioners and the public of the critical importance of literacy for creating a more just, peaceful and sustainable society. According to the United Nations Educational, Scientific and Cultural Organization, at least 739 million youth and adults worldwide still lacked basic literacy skills in 2024. 

According to the government, Pakistan’s literacy rate stands at 60%. The country grapples with the challenge of 26 million out-of-school children, one of the highest populations of children around the world without access to education. 

“The federal and provincial governments are united in their efforts to promote learning and increase the literacy rate,” Sharif said, according to a statement by the Prime Minister’s Office (PMO). “The primary objective of this national campaign is to ensure that every child not only receives basic education but also has access to higher education, skills, and technical knowledge.”

Sharif said the process of education, training, literacy, and learning is a “continuous struggle to shape the generations of any nation.” He said education should be the foremost priority of every government for the overall and meaningful progress of a country.

He noted that Pakistan’s literacy rate is 60 percent, which is not only below modern global requirements but also lower than other South Asian countries. 

“This alarming situation reminds us that, as a nation, we must prioritize education and take every possible step to open the path of collective progress for our children, youth, and society,” he added. 

The Pakistani premier stressed the importance of the people’s support, urging teachers, parents, and citizens to recognize their responsibility and play a vital role in promoting education.

“Let us today reaffirm our commitment, as a nation, to dispel the darkness of illiteracy with the light of knowledge and lay the foundation of a strong, capable, and developed Pakistan,” he added. 


Pakistan’s Punjab continues floods evacuations as rivers swell, death toll reaches 56

Pakistan’s Punjab continues floods evacuations as rivers swell, death toll reaches 56
Updated 59 min 11 sec ago
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Pakistan’s Punjab continues floods evacuations as rivers swell, death toll reaches 56

Pakistan’s Punjab continues floods evacuations as rivers swell, death toll reaches 56
  • Punjab government has evacuated 2 million people, 1.5 million animals in flood-affected districts, says rescue service
  • Floods in Punjab are expected to flow downstream into Sindh this week, impacting 320,000 people in the province

ISLAMABAD: The government in Pakistan’s Punjab continued evacuating residents from high-risk flood areas on Monday, the Rescue 1122 service said in a statement, as water levels in the province’s rivers continued to rise and the death toll from the calamity reached 56. 

The provincial government has had its hands full with rescue and relief activities since late August, when heavy monsoon showers and releases from Indian dams caused water levels in Punjab’s rivers to rise. The resulting floods have inundated over 4,100 villages, killed 56 and impacted over 4 million people in Punjab, according to the Provincial Disaster Management Authority (PDMA). 

“Across all flood-affected districts of Punjab, the Government of Punjab has safely evacuated 2 million people and 1.5 million animals,” Rescue 1122 spokesperson Farooq Ahmad said in a statement. 

Punjab Chief Minister Maryam Nawaz said in a separate post on social media platform X on Sunday night that Jalalpur Pirwala city in Multan district is at risk of flooding as water levels have risen.

“The situation and ongoing operations are being minutely monitored through thermal imaging drones to ensure rapid response and prevent any loss of precious life,” she wrote. 

Ahmad said during the past 24 hours, 2,343 people have been rescued from Multan’s flood-affected areas, taking the total number of people rescued to 10,810 in the district. 

“The district management of Multan has already carried out advance evacuation of 350,000 people and over 300,000 animals,” Ahmad said. 

The Rescue 1122 spokesperson urged the people of Muzaffargarh and Alipur Jatoi areas to cooperate with authorities and evacuate from high-risk areas. 

WATER LEVELS

Meanwhile, the PDMA issued an update of the water levels in Punjab’s Chenab, Ravi and Sutlej rivers. It said the water level at Head Muhammad Wala in Chenab was rising at 417.50 feet while the water level at Marala Headworks was at a steady level at 84,753 cusecs. The water level in river Chenab at Khanki Headworks was recorded at a steady level of 147,294 cusecs while the water level at Qadirabad Headworks was recorded at 147,039 cusecs at a steady level, it said. At Trimmu Headworks, the water level was recorded at 543,579 cusecs at a steady level. 

Meanwhile, the river Ravi’s water level at Jassar was recorded at 45,720 cusecs at a steady level while at Ravi Syphon and Shahdara, it was noted that the water level was falling at 88,380 cusecs and 87,640 cusecs, respectively. At Balloki, the water level was recorded at a steady level of 139,030 cusecs and at Sidhani, at a steady level of 123,168 cusecs.

The water levels of river Sutlej were recorded at 319,295 cusecs at Ganda Singh Wala village at a steady level while at Sulemanki Headworks, it was recorded at 135,832 cusecs at a steady level. The water level at Panjnad Headworks was recorded at 564,604 cusecs at a steady level, while the PDMA said it was rising at Mailsi Syphon at 112,014 cusecs. 

Meanwhile, heavy rains and floods have caused power outages in several districts of Punjab. The Power Division shared an update of the restoration work, saying that 515 feeders had been affected out of which 269 have been fully restored and 242 have been temporarily restored.

“Thus, out of a total of 1,659,716 affected consumers, electricity has been restored for 1,404,486,” the division wrote. “For the remaining 255,230 affected consumers, restoration remains a top priority.”

FLOODING RISKS, MONSOON SHOWERS

Pakistan has been bracing for more rains and floods, as the Pakistan Meteorological Department (PMD) on Sunday warned of urban and coastal flooding in several parts of Pakistan from Sept. 7 till Sept. 10, as monsoon currents continue to penetrate southern parts of the country. 

The nationwide death toll from monsoon rains and deluges across the country since Jun. 26 has risen to 910, according to the latest situation reported by the National Disaster Management Authority (NDMA). 

Floods in Punjab are expected to flow downstream into the southern Sindh province now. Sindh said it was anticipating for floods to reach their peak level this week. Authorities say the floodwaters are likely to affect more than 320,000 people in the province, with nearly 128,000 already evacuated from riverine areas. 

President Asif Ali Zardari, whose Pakistan Peoples Party (PPP) rules the Sindh province, urged all institutions to make preparations for the possible floods on Sunday.

“Provincial, district and local government institutions should be on alert to deal with possible flood situation,” he said in a statement issued from his office.


What to know: Asia Cup T20 puts continental cricket heavyweights in focus

What to know: Asia Cup T20 puts continental cricket heavyweights in focus
Updated 08 September 2025
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What to know: Asia Cup T20 puts continental cricket heavyweights in focus

What to know: Asia Cup T20 puts continental cricket heavyweights in focus
  • Asia Cup tournament begins from Sept. 9-28, featuring associate teams Hong Kong, UAE and Oman
  • Asia Cup began in 1984 with only Pakistan, India and Sri Lanka, has expanded and is staged every 2 years

Five of the world’s top 10 Twenty20 teams will compete in the 17th Asia Cup, starting in the United Arab Emirates from Tuesday, with defending champion India grouped together with archrival Pakistan.

Here’s what to know:

COMPETING TEAMS

India is No. 1, and Sri Lanka, Pakistan, Afghanistan and Bangladesh hold Nos. 7-10 in the International Cricket Council’s T20 rankings. Joining them in the tournament, which starts with two groups of four, are Hong Kong, UAE and first-timer Oman. All three of the Associate teams qualified via the ACC Premier Cup, where Nepal only narrowly missed out.

India and Pakistan being bracketed together should catch a billion-plus TV audience and raise substantial revenue for the Asian Cricket Council. Oman and UAE are the other teams in that group.

The other group contains Afghanistan, Bangladesh, Sri Lanka and Hong Kong.

PROGRESSION

The top two teams in each group will advance to the Super 4 stage.

The groups have been formed in a way that traditional on-field and off-the-field rivals — Pakistan and India — could meet three times during the tournament, if both teams go all the way to the final on Sept. 28.

Dubai will host 11 games, including the final, and Abu Dhabi will host eight games.

ASIA CUP HISTORY

The continental tournament, which began in 1984 with only Pakistan, India and Sri Lanka, has expanded and is now staged every two years, alternating between the ODI and T20 formats depending on which ICC World Cup is next in line.

With India and Sri Lanka set to co-host the T20 World Cup next February, this Asia Cup is also in the sport’s shortest international format.

India has won the title eight times, followed by Sri Lanka with six. Pakistan won the last of its two titles in 2012.

HYBRID MODEL

The Board of Control for Cricket in India had been due to host the Asia Cup but preferred to organize the tournament in the UAE to avoid the logistical issues that come with the strained political relationship between India and Pakistan.

The neighboring countries don’t engage in bilateral tours with each other, which limits their head-to-head encounters to multinational tournaments at neutral venues.

When Pakistan hosted the Champions Trophy earlier this year, it organized for all India’s games to be staged in Dubai.

SUPER FOUR

India is a firm favorite with stars including captain Suryakumar Yadav, Shubman Gill, Hardik Pandya and Jasprit Bumrah in its ranks. With the slow wickets likely to suit spinners, India has plenty of options with Axar Patel, Varun Chakravarthy and Kuldeep Yadav keen to exploit the conditions.

Pakistan has been relying on a fleet of all-rounders after ignoring its two stalwarts Babar Azam and Mohammad Rizwan since Dec. 2024 in the shortest format. Under new coach Mike Hesson, Pakistan has played a majority of its T20 games with only three specialist bowlers, using four allrounders to bowl out the remaining overs. Whether Hesson’s template works against the likes of India remains to be seen. 

But Hesson’s blueprint at least worked in a build-up to the Asia Cup when Afghanistan crashed to its second lowest-ever T20 score of 66 against Mohammad Nawaz’s hat-trick in the final of the tri-series at Sharjah on Sunday.

Afghanistan has plenty of spin options and could edge either Bangladesh or Sri Lanka for a place in the Super 4. Led by Rashid Khan, the leading wicket-taker in T20 cricket, Afghanistan also has experienced off-spinner Mohammad Nabi, Mujeeb Ur Rahman, left-arm spinner Noor Ahmad and rookie AM Ghazanfar to challenge batters of any opposition on spin-friendly wickets.

Despite losing to Bangladesh in the recent bilateral T20 series, Sri Lanka could has the potential to make the Super 4 with opening batter Pathum Nissanka in good form at the top of the order. Wanindu Hasaranga, who injured a hamstring against Bangladesh, has regained fitness and will team up with Maheesh Theekshana and Dunith Wellalage to boost the spin options.

T20 FORMAT

It follows conventional cricket rules, where taking wickets and scoring runs are the main objectives for the bowling and batting teams, but does so in a shorter, sharper timeframe. Each team is allocated one 20-over innings to bat in each game. The main aim remains to score more runs than the opposition. Matches last around three hours.


India hopes ‘insights’ from Pakistan clash will help woo arms buyers

India hopes ‘insights’ from Pakistan clash will help woo arms buyers
Updated 08 September 2025
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India hopes ‘insights’ from Pakistan clash will help woo arms buyers

India hopes ‘insights’ from Pakistan clash will help woo arms buyers
  • India and Pakistan traded missiles, drone strikes, artillery fire, bombed each other with jets in May 
  • One of world’s top arms importers, India is now determined to recast itself as major producer, exporter 

NEW DELHI: The skies lit up during the four-day clash between India and Pakistan in May as drones were blasted from the air by missiles that showcased what New Delhi believes is a “new vision” of warfare.

India now hopes that the demonstration of its combat capabilities, which included a domestically developed “invisible shield” missile defense system, will fuel international demand.

“The operation was a sign of the new art of warfare, a glimpse of a new vision, technological advancements and self-reliance,” Defense Minister Rajnath Singh said in August.

Long one of the world’s top arms importers, India is now determined to recast itself as a major producer and exporter of weapons.

Defense exports reached a record $2.8 billion in 2024-25, still small compared to established players, but up 12 percent from the year before and 34 times higher than a decade ago.

Domestic defense production also surged to a record $18 billion, nearly doubling in five years.

India now exports defense equipment to more than 100 countries, with the United States, France and Armenia among the top buyers, according to the defense ministry.

Exports range from missiles, boats and artillery to radar systems, rocket launchers, software and electronic components.

‘GOLDEN INSIGHTS’

The May conflict was the worst between the nuclear-armed neighbors since 1999, with more than 70 people killed in missile, drone and artillery exchanges.

Both sides claimed victory, each boasting of downing the other’s fighter jets.

A senior Indian army officer said the clashes provided a “very good understanding” of how new weapons performed.

“These were golden insights for us — and our rapidly expanding industry partners,” he told AFP.

Among the weapons tested was Akashteer, or “Sky Arrow,” a vehicle-mounted air defense platform powered by artificial intelligence that intercepted volleys of missiles and armed drones.

India also fired several long-range BrahMos cruise missiles at Pakistani air bases.

Co-developed with Russia and already exported to the Philippines, the BrahMos drew fresh attention after the conflict.

“Because of the stellar performance of these BrahMos missiles, 14 or 15 countries have reached out to supply these missiles,” Singh said at a military factory opening in July.

Ashok Malik, of The Asia Group business consultancy, said the conflict acted “like a market demonstrator.”

“It is one thing for me to buy something which you’ve made,” Malik said. “It is another to buy something which you’ve made and successfully used in the field.”

AIR DEFENSE

India’s defense budget has more than doubled in the past decade, reaching $78 billion.

At the same time, India has sought to ease its reliance on Russian hardware, signing import and production deals with the United States, France and Israel.

The industry push comes as New Delhi balances relations with Washington and Moscow, while also countering China — Pakistan’s chief arms supplier.

That tightrope act has grown harder since Washington imposed 50 percent tariffs on many Indian products to punish New Delhi for buying Russian oil.

Hence the “Make in India” drive as the country seeks to develop fighter jet engines and pledges to build an Israeli-style Iron Dome system it calls “Sudarshan Chakra” — the spinning discus weapon of the Hindu god Vishnu.

India has also highlighted its fast-growing drone sector, which it says could be worth $11 billion by 2030, including several models developed while working closely with Israeli firms.

However, challenges remain.

Murlidhar Mohol, junior minister for civil aviation, told parliament in April that 39 percent of critical smaller drone components had been “sourced from manufacturers based in China.”


Pakistan skipper Agha dedicates UAE tri-nation series win to flood victims

Pakistan skipper Agha dedicates UAE tri-nation series win to flood victims
Updated 57 min 45 sec ago
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Pakistan skipper Agha dedicates UAE tri-nation series win to flood victims

Pakistan skipper Agha dedicates UAE tri-nation series win to flood victims
  • Pakistan beat Afghanistan by 75 runs on Sunday to clinch tri-nation series also involving UAE
  • Salman Ali Agha, Shaheen Shah Afridi, donate match fees from entire series to flood relief fund

ISLAMABAD: Pakistan T20 cricket captain Salman Ali Agha dedicated his team’s victory in the tri-nation series in the UAE to flood victims in his country, the Pakistan Cricket Board (PCB) said on Sunday, urging others to come forward and help victims of the calamity. 

Floods in Pakistan’s eastern Punjab province, also known as the country’s breadbasket, have caused devastation for millions since late August. Torrential rains and excess floodwaters released by India have inundated over 4,100 villages in the province, killing at least 56 in Punjab and affecting over four million. 

Pakistan stomped Afghanistan in the final of the tri-nation series on Sunday in Sharjah, which also featured hosts UAE. The Green Shirts won the toss and elected to bat first, putting on 141/8 on a pitch that offered turn and bounce to spinners. In response, Afghanistan were bundled out for a paltry 66 runs in 15.5 overs, courtesy of stellar spin bowling by all-rounder Mohammad Nawaz, who returned figures of 5/19 from his four overs. 

“We stand with our brothers and sisters in this difficult time of hardship,” Agha was quoted as saying by the PCB. “Everyone should come forward together to help the flood victims.”

Agha and lethal left-arm pacer Shaheen Shah Afridi both announced they would dedicate their entire match fees from the tri-nation series to the government’s flood relief fund. 

“The soil of our homeland is demanding from us today to help the flood-affected people,” Afridi was quoted as saying by the board. “I appeal to the nation to actively contribute to the flood relief fund.”

The Green Shirts will now prepare for the upcoming Asia Cup tournament, slated to be held in the UAE from Sept. 9-28. Pakistan will begin their campaign to win the title on Sep. 12 against Oman before taking on defending champions India on Sept. 14 in Dubai.