Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants

Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
An undated file photo of a Hubco Coal Power Plant. (Photo courtesy: HUBCO)
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Updated 16 July 2025
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Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants

Pakistan’s HUBCO seeks extension of $51 million guarantees to safeguard coal plants
  • New transmission charges, which HUBCO says were not originally included, have pushed investors to seek extended guarantees
  • Coal-fired power is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged

KARACHI: Pakistan’s largest independent power producer Hub Power (HUBCO) said on Wednesday it was seeking an extension to $51 million in bank guarantees to protect its coal-fired power plants, a crucial source of stable power amid Pakistan’s rising use of solar.

The guarantees, previously short-term, would now stay in place until 2034 to cover future loan repayments and potential penalties, the company said in a notice to the country’s stock exchange.

New government-imposed transmission charges, which HUBCO is contesting and says were not included in its original contracts, have pushed investors to seek extended guarantees. The cost of borrowing to provide these guarantees would remain below the expected returns from the projects, it said.

“The extended guarantee will cover any fines or funding gaps that may arise,” HUBCO said in a notice to the country’s stock exchange, adding that the company has invested about $131 million in the projects so far.

The South Asian nation has faced chronic electricity shortages and challenges to grid stability because of rising solar power use, fuel import constraints due to a foreign exchange crisis and a debt-burdened electricity sector.

Stable coal-fired power supply is crucial amid rising use of solar power, whose variability could potentially cause blackouts if mismanaged.

HUBCO will hold an extraordinary general meeting in August to seek shareholder approval for the plan for its two 330 megawatt (MW) plants operating on locally mined coal “to ensure the plants’ continued operation,” it said.

The plants’ problems stem from broader challenges faced by Pakistan’s power sector. Pakistan last year authorized an early termination of a power supply deal running to March 2027 as a part of an IMF mandate to cut energy debt.


Pakistani PM welcomes revival of bilateral mechanisms with Bangladesh, calls for sustaining momentum

Pakistani PM welcomes revival of bilateral mechanisms with Bangladesh, calls for sustaining momentum
Updated 15 August 2025
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Pakistani PM welcomes revival of bilateral mechanisms with Bangladesh, calls for sustaining momentum

Pakistani PM welcomes revival of bilateral mechanisms with Bangladesh, calls for sustaining momentum
  • Sharif meets Dhaka envoy, says keen to expand cooperation in political, economic and cultural spheres
  • Fall of Sheikh Hasina has created opening for Pakistan and Bangladesh to move past decades of frosty ties

KARACHI: Pakistani Prime Minister Shehbaz Sharif on Friday underlined the revival of bilateral mechanisms as key to rebuilding relations with Bangladesh as he received Dhaka’s High Commissioned for a courtesy call in Islamabad. 

The meeting with Md. Iqbal Hussain Khan comes amid a remarkable realignment in South Asia’s geopolitics. Since the fall of former Bangladeshi prime minister Sheikh Hasina in 2024 and her subsequent flight to India, Dhaka’s traditionally close relationship with New Delhi has grown strained. The shift has created an opening for Pakistan and Bangladesh — once a single nation until the bloody 1971 war of independence — to move past decades of frosty ties.

“He expressed satisfaction at the revival of various bilateral mechanisms between the two sides,” the Prime Minister’s Office said in a statement, quoting Sharif. “He stressed upon the importance of maintaining this momentum to carry forward their bilateral ties.”

Sharif also recalled his “warm and productive” interactions with Bangladesh’s Chief Adviser Mohammad Yunus, most recently at the D-8 summit in Cairo last December, and said Pakistan was keen to expand cooperation in political, economic and cultural spheres while enhancing trade and people-to-people contacts.

The High Commissioner, according to the PMO, briefed Sharif on steps being taken by both countries to facilitate travel, trade and connectivity, and expressed his desire to continue working to “further strengthen the historic bonds of friendship.”

Sharif wished the envoy success in his assignment and expressed confidence that his tenure would “witness positive developments” in the bilateral relationship.

The outreach reflects what experts widely describe as an unprecedented attempt at rebuilding ties more than half a century after Bangladesh’s independence, since which relations between Islamabad and Dhaka were largely defined by mistrust and India’s dominant role in the region.


China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM

China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM
Updated 15 August 2025
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China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM

China’s Challenge Fashion to set up $100 million Special Economic Zone in Pakistan — PM
  • Prime minister welcomes new Chinese investment in textiles, pledges full support
  • Project is expected to generate $400 million in exports over five years

KARACHI: China’s Challenge Fashion Group will establish a Special Economic Zone (SEZ) in Pakistan with planned investments of $100 million over five years, expected to generate $400 million in exports, Prime Minister Shehbaz Sharif’s office said on Friday.

The development comes as Islamabad seeks to draw more Chinese investment into manufacturing and textiles under the industrial arm of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar flagship of Beijing’s Belt and Road Initiative.

China is Pakistan’s largest trading partner, with bilateral trade exceeding $25 billion in recent years, and Chinese companies have already invested heavily in power, transport, infrastructure, and telecoms projects across the country.

““We welcome the establishment of a Special Economic Zone (SEZ) by Challenge Group in Pakistan,” Sharif told a visiting delegation led by Challenge Fashion Chairman Huwang Weiguo. 

“Through this SEZ, there will be assistance in technology transfer, skill development and sustainable industrial growth.”

Sharif instructed officials to provide every possible facility to the company and emphasized Pakistan’s resolve to promote the industrial component of CPEC.

Since 2014, Challenge Fashion has invested $17 million in Pakistan and is now scaling up with a modern textile industry. The Prime Minister’s Office said Sharif also inaugurated the new SEZ after the meeting.

Textiles remain the backbone of Pakistan’s economy, accounting for more than 60 percent of exports and employing nearly 40 percent of the industrial workforce.

The sector has faced challenges in recent years due to energy shortages, high costs and slowing global demand, but policymakers hope new investment and technology transfer from China will help boost competitiveness.


Dubai’s Burj Khalifa turns white and green to mark Pakistan Independence Day

Dubai’s Burj Khalifa turns white and green to mark Pakistan Independence Day
Updated 15 August 2025
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Dubai’s Burj Khalifa turns white and green to mark Pakistan Independence Day

Dubai’s Burj Khalifa turns white and green to mark Pakistan Independence Day
  • The UAE is Pakistan’s third-largest trading partner and home to over 1.6 million Pakistani expats
  • Pakistan achieved independence on Aug. 14, 1947, after the British partitioned the Sub-continent

ISLAMABAD: Dubai’s iconic Burj Khalifa lit up with Pakistan’s national flag on Thursday evening as the South Asian country marked its 79th Independence Day.

Pakistan achieved independence from British colonial rule on Aug. 14, 1947, after the British partitioned the Sub-continent into two independent dominions, Muslim Pakistan and Hindu-majority India.

On Thursday, the Pakistani embassy in the United Arab Emirates (UAE) shared on X a video of the world’s tallest skyscraper turning green and white.

“Dubai’s iconic Burj Khalifa, the world’s tallest building, illuminated with the Pakistani flag on 14 August 2025 to mark Pakistan’s Independence Day,” the embassy wrote on X.

The UAE is Pakistan’s third-largest trading partner after China and the US. The Gulf state is also Pakistan’s second-largest source of foreign remittances, after Saudi Arabia, with over 1.6 million Pakistani expatriates living and working there.

Separately, Pakistan’s Consulate General in Dubai also hosted a flag-hoisting today to mark the 78th anniversary of Pakistan’s independence, with a large number of Pakistani community members attending the event.

Pakistan’s Consul General Hussain Muhammad warmly welcomed the community members and urged them to continue playing a constructive role in the development of both the UAE and Pakistan, according to the consulate.

Earlier this week, thousands of people attended Pakistan’s Independence Day celebrations at the Dubai Exhibition Center.

The event, titled ‘Emirates Loves Pakistan,’ was organized in collaboration with the Pakistan Association Dubai (PAD) and supported by Dubai Police, and featured a colorful mix of music, dance, art, cuisine and community spirit.


PM calls for fast-tracking Islamabad IT park as Pakistan eyes $30 billion exports

PM calls for fast-tracking Islamabad IT park as Pakistan eyes $30 billion exports
Updated 15 August 2025
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PM calls for fast-tracking Islamabad IT park as Pakistan eyes $30 billion exports

PM calls for fast-tracking Islamabad IT park as Pakistan eyes $30 billion exports
  • The 720,000-square feet IT park was previously scheduled to be inaugurated on Aug. 14
  • The facility will include incubation center, labs, offices, Tier III data center and auditorium

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday asked authorities to fast-track the completion of an information technology (IT) park in the federal capital of Islamabad, Sharif’s office said on Thursday, amid Pakistan’s efforts to boost its IT exports to $30 billion.

The Pakistani Ministry of IT and Telecommunications, in collaboration with the Pakistan Software Export Board (PSEB), had earlier announced the inauguration of the IT park on this Independence Day, Aug. 14.

The 720,000-square feet facility will comprise offices, incubation center, business support center, research and development (R&D) laboratories, a Tier III data center that offers a high level of availability and redundancy and an auditorium.

The prime minister expressed his displeasure over the slow pace of construction on the project and gave directions to authorities for speedy completion of the facility, according to his office.

“The provision of world-class facilities must be ensured in the project,” he was quoted as saying.” All those responsible should intensify their efforts to complete this project.”

The IT Park aims to create jobs for youth, boost economic growth, enhance global IT competitiveness, and bridge the digital divide, according to officials.

IT is a priority sector for Pakistan, which has been seeking new markets, particularly in the Gulf region, for tech firms and startups, and looking to attract greater foreign investment. The sector generated $3.8 billion in export revenue during the last fiscal year, marking a 19 percent year-on-year increase, according to the IT ministry.

Earlier this month, Sharif directed authorities to draw up a roadmap to gradually raise Pakistan’s IT exports to $30 billion, urging concrete annual targets and reforms to accelerate digital growth.

“A complete digital ecosystem and infrastructure is being introduced to take Pakistan’s IT exports to $30 billion,” the prime minister said at a meeting in Islamabad on Aug. 8.

“We are taking priority measures to align the economy with modern requirements through digitization.”


Nearly 40 killed as cloudburst, floods and landslides wreak havoc in Pakistan’s north

Nearly 40 killed as cloudburst, floods and landslides wreak havoc in Pakistan’s north
Updated 11 min 45 sec ago
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Nearly 40 killed as cloudburst, floods and landslides wreak havoc in Pakistan’s north

Nearly 40 killed as cloudburst, floods and landslides wreak havoc in Pakistan’s north
  • Cloudburst ravages remote village in Bajaur’s Salarzai tehsil, with 16 dead and several missing
  • Eight people were killed after flash floods hit Gilgit-Baltistan, damaged homes and infrastructure

KHAPLU/ISLAMABAD: Nearly 40 people were killed as a cloudburst, floods and landslides caused widespread destruction in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province and the northern Gilgit-Baltistan region, authorities said on Friday.

A flash flood swept through the remote Jabarai village in KP’s Bajaur, a restive district that borders Afghanistan, following a cloudburst late on Thursday night, according to Amjad Khan, the KP Rescue 1122’s district emergency officer.

The raging currents swept away dozens of people, with authorities searching for survivors.

“Rescuers with the help of locals have so far retrieved 16 bodies and rescued three injured people from the debris and floodwaters,” Khan told Arab News.

“The injured were given first aid on-site before being shifted to a nearby hospital.”

In the Battagram district, flash floods killed at least 10 people, while 18 were missing, according to Rescue 1122. Another five people were killed and four injured after roof of a house collapsed in Lower Dir.

Rescue operations were underway in affected areas, while a provincial government helicopter has been dispatched for Bajaur on the instructions of Chief Minister Ali Amin Gandapur, according a statement issued from the CM’s office.

“Timely rescue operation must be ensured to search for missing persons,” CM Gandapur was quoted as saying by his office.

In the northern Gilgit-Baltistan region, at least eight people were killed and several others injured after heavy rains triggered flash floods and landslides in several areas, officials said on Thursday.

“Eight people were killed in different incidents in GB on Thursday. Six people were buried under the debris of flood in Khalti village of Ghizer.

Of them, four bodies have been recovered and two are still missing, while another five people were injured,” Tahir Shah, a senior official at GB Rescue 1122 service told Arab News.

“Similarly, a 70-year-old man and a 13-year-old girl were killed in Ishkoman Valley, Ghizer. Another two people were also killed in Diamer district of Gilgit-Baltistan. The deceased were brother and sister.”

The floods, which carried with them boulders, mud and tree trunks, caused extensive damage to houses, crops, orchards and infrastructure in the region that is home to thousands of glaciers and five of the world’s 14 peaks above 8,000 meters, according to officials.

“Many roads are blocked, homes and other infrastructure have been damaged,” GB government spokesman Faizullah Faraq told Arab News.

“Many villages near the rivers have been vacated and resident moved to safe places.”

The Karakoram Highway, which connects Pakistan with China, has been blocked in Upper Hunza, while landslides have blocked Baltistan Highway, Babusar Road, Deosai Road and Skardu-Sadpara Road at multiple locations, according to Faraq.

“The government is utilizing all resources to restore roads,” he said. “Rescue 1122, GBDMA and local administration are active for the rescue and recovery of missing persons, and emergency has been declared in affected areas.”

GB Home Minister Shams Lone has instructed all district administrations to issue emergency alerts and prioritize the safety of lives and property, according to a GB government statement. The minister asked for timely evacuation of at-risk populations, with advance notices to residents.

“We advise all travelers and tourists en route to Gilgit-Baltistan to immediately halt their journey,” the GBDMA said in its advisory. “Travelers are advised to exercise extreme caution and wait for further updates.”

Pakistan, which produces less than 1 percent of the world’s greenhouse gases, has suffered disproportionately from climate-induced extreme weather patterns in recent years. The National Disaster Management Authority (NDMA) put the nationwide monsoon death toll at 313 on Thursday, which is likely to exceed with fresh fatalities taken into account.

In 2022, torrential monsoon rains killed more than 1,700 people and caused damages over $30 billion to the nation.