No visit by Trump to Pakistan ‘scheduled at this time’ — White House official

No visit by Trump to Pakistan ‘scheduled at this time’ — White House official
US President Donald Trump speaks in the East Room at the White House in Washington, D.C., US on July 16, 2025. (REUTERS)
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Updated 17 July 2025
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No visit by Trump to Pakistan ‘scheduled at this time’ — White House official

No visit by Trump to Pakistan ‘scheduled at this time’ — White House official
  • Trump confirmed to visit UK from Sept. 17–19 for state events hosted by King Charles
  • Speculation of Trump’s Pakistan stop emerged after reports on local TV channels

ISLAMABAD: No visit to Pakistan by US President Donald Trump has been scheduled, a White House official confirmed on Thursday, contradicting media reports in Pakistan that claimed he would arrive in the country in mid-September.

At least two Pakistani media outlets had reported that Trump was expected to visit Islamabad around September 18. The reports fueled speculation about a possible South Asia tour that could include a rare presidential trip to Pakistan.

However, Trump is already scheduled to travel to the United Kingdom from September 17 to 19, where he is expected to meet members of the royal family and participate in events hosted by Buckingham Palace, according to a previously issued statement from the palace.

Separately, Indian media have reported that Trump may also stop in New Delhi in September, though exact dates have not been confirmed by the White House.

In response to an Arab News query regarding a potential Pakistan visit, the White House said on background:

“A trip to Pakistan has not been scheduled at this time.”

Geo and ARY news channels had said earlier on Thursday that Trump was expected to visit Pakistan in September. But both later withdrew their reports.

If Trump does end up visiting Pakistan, it would be his first to Pakistan as president and the first by a US president since George W. Bush’s trip to Islamabad in 2006.

US-Pakistan relations saw a major boost when Trump hosted Pakistan’s army chief Field Marshal Asim Munir at the White House last month in an unprecedented lunch meeting.


Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut
Updated 14 sec ago
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Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut

Moody’s upgrades Pakistan’s credit rating to ‘Caa1’, finance minister hopes for rate cut
  • Pakistan’s international bonds rose as much as 1 cent to between 90-100 cents on the dollar following ratings upgrade
  • Aurangzeb says more room for central bank to cut key policy rate from 11 percent on back of positive economic indicators

Moody’s said on Wednesday it had raised Pakistan’s credit rating by one notch to ‘Caa1’ from ‘Caa2’ due to an improving external financial position and it assigned the country a “stable” outlook.

The announcement came within hours of Pakistan’s Finance Minister Mohammed Aurangzeb saying there was more room for the central bank to cut the country’s key policy rate from 11 percent on the back of positive economic indicators.

“The credit rating’s improvement is a sign that economic policies are heading toward the right direction,” Prime Minister Shehbaz Sharif said in a statement.

Pakistan’s international bonds rose as much as 1 cent to between 90 and 100 cents on the dollar following the ratings upgrade. It lifted most of them to their highest since early 2022 when fears of a full-blown debt crisis sent them plunging to as little as 30 cents.

Moody’s decision to raise the rating by one notch after Fitch and S&P did the same will help Pakistan’s capability to raise external debt. Pakistan says its economy is on a recovery path after a $7 billion IMF bailout helped to stabilize it.

“We changed the outlook for the Government of Pakistan to stable from positive,” Moody’s said in a statement.

“The upgrade to Caa1 reflects Pakistan’s improving external position, supported by its progress in reform implementation under the IMF Extended Fund Facility (EFF) program,” it said.

Pakistan’s debt affordability has improved, but remains one of the weakest among rated sovereigns, Moody’s said, adding that the Caa1 rating also reflected the country’s weak governance and high degree of political uncertainty.

Aurangzeb told a gathering of businessmen in Islamabad ahead of the Moody’s announcement that he was expecting an improvement in Pakistan’s credit rating by other agencies after Fitch and S&P.

“We are hopeful of progress in terms of the policy rate going south,” he added.

Aurangzeb said it was his personal view that there was more room for a rate cut toward the end of the year, adding that it was for the central bank to make the final call on the issue. The next policy rate announcement is due on September 15. The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll they had forecast a reduction of 50 to 100 basis points. The bank said the inflation outlook had deteriorated due to rising energy prices.

Inflation accelerated to 4.1 percent year-on-year in July. 


Pakistan’s central bank sees FY26 growth up to 4.25 percent, trade gap to widen

Pakistan’s central bank sees FY26 growth up to 4.25 percent, trade gap to widen
Updated 20 min 50 sec ago
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Pakistan’s central bank sees FY26 growth up to 4.25 percent, trade gap to widen

Pakistan’s central bank sees FY26 growth up to 4.25 percent, trade gap to widen
  • Current account deficit forecast at 0–1 percent of GDP despite remittance growth
  • Forex reserves projected to reach $15.5 billion by end-December 2025

KARACHI: Pakistan’s central bank on Wednesday projected economic growth of up to 4.25 percent in the current fiscal year but warned the trade deficit would widen, even as reserves are set to climb on the back of steady remittances and foreign inflows.

The forecast comes as Pakistan implements reforms under a $7 billion International Monetary Fund (IMF) program approved in September 2024, which has helped stabilize the currency, ease inflation and restore investor confidence. The IMF deal is tied to fiscal consolidation, energy sector reforms, and measures to boost exports, part of a broader effort to strengthen macroeconomic stability after years of chronic external imbalances.

The economy returned to moderate growth last year, aided by improved agricultural output, lower global commodity prices, and a series of policy rate cuts totaling 1,100 basis points since late 2024. Inflation has eased from record highs, while the rupee has stabilized against the dollar after a crackdown on the illegal currency market.

“With the policy rate kept unchanged at 11 percent in the MPC meetings in June and July, the MPC expects the real policy rate to be adequately positive to stabilize inflation within the medium-term target range,” the State Bank of Pakistan (SBP) said in its Monetary Policy Report (MPR) released on Wednesday. 

“In the external account, the MPR expects the trade deficit to widen further and, notwithstanding continued expected growth in workers’ remittances, result in a current account deficit of 0–1 percent of GDP in FY26,” it added.

The central bank said “projected financial inflows, coupled with continued SBP interbank FX purchases, would support further buildup in SBP’s FX reserves, which are projected to rise to $15.5 billion by end-December 2025.”

Economic activity, it said, was “projected to gain further traction, with the impact of the earlier reductions in the policy rate still unfolding,” and real GDP growth was expected to range between 3.25 percent and 4.25 percent in FY26.

The MPR also flagged “potential external and domestic risks to the baseline macroeconomic outlook” and included analysis of the lag in monetary policy transmission, comparisons with global central bank decisions, and the SBP’s use of alternative data and machine learning to fill gaps in labor market and agriculture statistics.

 


Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback

Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback
Updated 29 min 41 sec ago
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Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback

Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback
  • Campaign runs Aug. 13–22 with Rs3,000 cap per customer
  • Cashback credited to accounts within one business day

KARACHI: Pakistan’s first Islamic digital bank is offering a 14 percent cashback on eligible debit card and QR code transactions to mark the country’s 78th Independence Day, in a campaign aimed at promoting cashless and Shariah-compliant payments.

The “Azadi Cashback” promotion, launched by aik, will run from Aug. 13 to Aug. 22 and allow customers to earn up to Rs3,000 ($10.75) in cashback during the period, credited to their accounts within one business day. The offer excludes utility bills, cash withdrawals, peer-to-peer transfers and government payments.

“The cashback is structured as a discretionary gift on the momentous occasion of Pakistan’s 78th Independence Day,” aik said in a statement.

aik, which operates as a digital-only platform, said the promotion supports its mission to provide Riba-free financial services and encourage secure, cashless transactions. It aims to create a banking experience rooted in transparency, ethics and user empowerment.

aik said the Independence Day campaign was part of efforts to “accelerate the adoption of secure digital payments across Pakistan,” combining “convenience with compliance” for users seeking Islamic finance options.

Digital banking is expanding rapidly in Pakistan, driven by high smartphone penetration and government incentives for electronic payments. According to the State Bank of Pakistan, digital retail transactions surged over 50 percent year-on-year in fiscal 2024, with mobile banking emerging as a key growth segment.


India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales
Updated 24 min 52 sec ago
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India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales
  • Flag maker reports sales up by up to 50 percent as households and businesses spend heavily on August 14 decorations
  • Traders say brisk Independence Day buying is lifting markets despite inflation squeezing consumer budgets

KARACHI: Pakistan’s largest flag manufacturer, VIP Flags, is expecting around 50 percent growth in sales this year as the public marks the country’s 78th Independence Day with unusual zeal, fueled by celebrations of victory in the May 2025 conflict with India.

The two nuclear-armed neighbors, which have fought three major wars since 1947, engaged in their deadliest fighting in decades this May. The fighting ended on May 10 after US mediation, with Prime Minister Shehbaz Sharif’s government declaring victory and saying it had downed at least six Indian fighter jets.

Officials have since linked the conflict’s outcome to the heightened national fervor surrounding August 14 this year, reflected in booming flag markets and sales of other Independence Day paraphernalia.

“Our business, all the businesses have grown 50 percent,” said VIP Flags CEO Nisar Ahmed Sheikh, adding that much of his stock had been sold to marchers rallying in support of Pakistan’s armed forces during the war with India.

VIP Flags manufactures flags for domestic customers, the armed forces, and international buyers in Saudi Arabia and the UAE, and holds Guinness World Records for the largest flags made in 2004 and 2008.

Sheikh said sales this year would likely run into millions of units.

“Obviously when people were filled with passion [after the war with India] and started hoisting flags, the flags business saw an uptick and increased compared to last year,” he told Arab News. 

“It is still growing and people are putting flags on their cars, bicycles and motorcycles.”

Sheikh said the surge in sales extended well beyond flags, with market vendors incorporating Independence Day themes into a wide range of products — from shirts, mufflers and headbands to shawls, dresses and children’s clothing — creating a vibrant festive atmosphere.

“People must be spending billions of rupees on this (celebrations) and this spending boosts the economy,” the CEO said. 

In Pakistan’s commercial hub of Karachi ahead of Aug. 14, large and small flags adorned vehicles, houses and office buildings, alongside buntings and night-time illuminations. Meanwhile, federal and provincial governments are holding daily events, with top officials like the prime minister and army chief expected to attend ceremonies in Islamabad on Aug. 13 and 14.

“The last time we saw such a show of national zeal on Independence Day was in Zia’s time,” Sheikh said, referring to former military ruler Zia-ul-Haq. “We see people decorating their houses, vehicles and vicinities with flags and buntings and badges.”

Abdul Wahab, a finisher at one of Sheikh’s factories, said he expected at least a 25 percent income increase this season. 

“We are seeing a rush in the market because of this war we recently fought with India,” said the 26-year-old, who plans to work overtime to meet demand.

For lawyer Bad-e-Saba, the occasion was a chance to pass on a message to the next generation.

“The war we recently won against Hindustan is a matter of great pride for us. We want to convey it to our children so they could know where we are standing against our enemy,” she said.

“We want to tell our enemies that we can take good care of our country and our next generation will do it better.”


Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks

Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks
Updated 13 August 2025
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Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks

Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks
  • Climate minister meets delegations from Saudi Arabia, Qatar, UAE and others on sidelines of INC-5.2 session
  • Talks focus on circular economy, resource mobilization for developing nations hit hardest by plastic pollution

ISLAMABAD: Pakistan has stepped up engagement with Gulf and regional partners on a planned global plastics treaty, holding talks with senior officials from Saudi Arabia, Qatar, the United Arab Emirates and other states at high-level negotiations in Geneva this week, the ministry of climate change said on Wednesday.

The discussions took place during the Fifth Session of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-5.2), part of ongoing UN-led efforts to produce the first legally binding international agreement to curb plastic waste. Negotiations have drawn wide participation from governments, industry and civil society, with particular focus on measures to reduce plastic production, boost recycling, and address the mounting environmental and economic costs of plastic pollution.

Pakistan has positioned itself as a voice for developing countries in the talks, stressing the need for fairness, financial support and technology transfer to help poorer nations tackle the crisis. Gulf states, several of which are major petrochemical producers, are seen as key stakeholders in shaping the treaty’s scope and implementation, both as plastic producers and as potential investors in recycling and waste-management infrastructure.

“The discussions focused on advancing cooperation for a fair and effective Global Plastics Treaty, promoting circular economy solutions, and mobilizing resources to address the disproportionate impacts of plastic pollution on developing countries,” the Pakistani climate ministry said in its statement after Climate Minister Dr. Musadik Malik held an interactive briefing with delegations from Saudi Arabia, Qatar, the United Arab Emirates, Kazakhstan, Iran, Azerbaijan, Algeria, and Kuwait.

The ministry said the engagements “formed part of Pakistan’s broader diplomatic outreach to build consensus and strengthen partnerships for equitable global environmental action.”

The second part of the fifth session of the Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution, including in the marine environment (INC-5.2), opened on Aug. 12 in Geneva. The session aims to finalize and approve the text of the agreement and forward it for consideration and adoption at a future Diplomatic Conference of Plenipotentiaries.

INC-5.2 takes place from 5 – 14 August, follows INC 5, which took place in November/December 2024 in Busan, Republic of Korea. 

“Plastic pollution is already in nature, in our oceans and even in our bodies. If we continue as on this trajectory, the whole world will be drowning in plastic pollution – with massive consequences for our planetary, economic and human health,” said Inger Andersen, Executive Director of UNEP. “But this does not have to be our future. Together, we can solve this challenge. Agreeing a treaty text is the first step to beating plastic pollution for everyone, everywhere.”

“We are here today to fulfil an international mandate. This is a unique and historic opportunity for the international community to bridge differences and find common ground. It is not just a test of our diplomacy— it is a test of our collective responsibility to protect the environment, safeguard human health, enable sustainable economies, and stand in solidarity with those most affected by this plastic pollution crisis,” said Luis Vayas Valdivieso, Chair of the INC.