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Pakistan textile union warns of capital flight to UAE, urges industrial policies to retain investment

Special Pakistan textile union warns of capital flight to UAE, urges industrial policies to retain investment
In this picture taken on July 20, 2023, workers monitor fabric as they work on a machine at the Kohinoor Textile Mills in Lahore. (AFP/File)
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Updated 04 June 2025

Pakistan textile union warns of capital flight to UAE, urges industrial policies to retain investment

Pakistan textile union warns of capital flight to UAE, urges industrial policies to retain investment
  • APTMA chief urges government to remove yarn and fabric from the Export Facilitation Scheme in next budget
  • He says lack of favorable policies driving capital flight as textile exports fall over 13 percent between FY22 and FY24

KARACHI: Pakistan is facing the flight of capital, with local industrialists shifting their factories to investor-friendly Middle Eastern countries like the United Arab Emirates due to the lack of favorable industrialization policies at home, Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), said on Tuesday.

APTMA represents more than 200 textile millers, which employ the country’s largest industrial workforce of more than 40 million people and account for half of the nation’s total exports. Its top official made the remark during an interview with Arab News just a week ahead of the country’s federal budget that is scheduled to be announced on June 10.

“Pakistani investors are now the second or third largest investors in places like Dubai,” he said during the conversation.

“Yes, there has been a flight of capital,” he continued, adding “had there been curbs and checks and balances on the flight of capital and favorable industrialization policies, the capital would have remained within Pakistan and it would have gone into agriculture and industry.”

Pakistan’s government is trying to turn around the country’s debt-ridden economy by curtailing imports and increasing exports with the help of the International Monetary Fund’s (IMF) loan program.

The government has emphasized its commitment to creating a more business-friendly environment in recent years, identifying textiles as a central driver in achieving a $60 billion export target by 2029 under its newly unveiled five-year economic framework.

Overall, the country’s exports rose six percent to $27 billion this year through April, but its textile exports declined more than 13 percent between FY22 and FY24 after hitting a record $19.3 billion in FY22.

Arshad maintained this was mainly due to the Export Facilitation Scheme (EFS) introduced last year that did not work well for the sector.

Originally envisaged to streamline and incentivize exports by allowing exporters duty- and tax-free access to inputs used in the production of export goods, the scheme benefited importers over local input producers by putting yarn and all varieties of fabric on the EFS.

By removing the sales tax exemption from domestically produced inputs like cottonseed and yarn while keeping imported equivalents tax-free, the scheme made local sourcing less competitive for Pakistani manufacturers.

“We fully expect that the government would be considerate and they would honor our request, our demand to remove yarn and fabric of all sorts from the EFS scheme and to create a level playing field,” the APTMA chief said.

Separately, at a news conference, he said that while hundreds of local industries had already closed, others were running at partial capacity.

“More than 120 spinning mills and over 800 ginning factories stand closed at the moment,” he said.

NO BUYER FOR US COTTON

Arshad said the government may not find buyers for the additional cotton it is expected to import from the US if the heavily taxed spinning and ginning factories continue to shut down at the current pace.

Pakistan and the US last week began negotiating their “reciprocal” trade tariffs, with Islamabad aiming to bridge its $3 billion trade surplus with Washington by buying more cotton and soybean to avoid the imposition of 29 percent tariffs on its exports to the US.

“Washington has indicated availability of up to 1.5 million bales for export to Pakistan,” the APTMA chairman told reporters at a press briefing.

In the ongoing trade talks, he said one of the offers the Americans were expected to make was the doubling or tripling of cotton exports to Pakistan, which uses cotton as a raw material for its textile industry that fetched $16.7 billion in exports last year.

The US is the biggest buyer of Pakistan’s exports, mostly textiles, which were valued at $5.44 billion last year through June, according to State Bank of Pakistan data.

US Charge d’Affaires Natalie A. Baker last month met Pakistan’s commerce minister, Jam Kamal Khan, and cited enhanced cooperation in the cotton sector as a key area for mutual growth, given Pakistan’s textile industry’s demand for high-quality cotton and the US ability to meet that demand.

“Who will buy this US cotton,” said Arshad, “while more than 120 spinning mills and 800 ginning factories have already shut down across the country.”

He noted the industry was already dealing with the carryover stocks of as much as 800,000 cotton bales from last year while the next crop was about to land.

Spinning mills consume most of Pakistan’s cotton output, which is falling and halved this year to 7.1 million bales after reaching a record 15 million bales in FY15, according to Pakistan Central Cotton Committee data.

Pakistan’s annual cotton consumption is about 15 million bales, but a poor crop made it the biggest importer of US raw cotton in FY23, when the dollar-strapped country had to spend billions on importing more than 4 million cotton bales, each weighing 170 kilograms.

Arshad said for Pakistan to absorb an increased amount of US cotton, a viable and operational spinning industry was essential.

“Without restoring competitiveness for domestic spinners, additional cotton imports will not materialize,” he added.

Pakistan’s finance adviser Khurram Schehzad declined to comment on issues related to the textile sector “before budget,” while finance ministry spokesperson Qamar Sarwar Abbasi did not respond to questions.


Pakistan reports second death of 2025 from deadly brain-eating amoeba

Pakistan reports second death of 2025 from deadly brain-eating amoeba
Updated 04 June 2025

Pakistan reports second death of 2025 from deadly brain-eating amoeba

Pakistan reports second death of 2025 from deadly brain-eating amoeba
  • Naegleria fowleri, with a 98 percent fatality rate, spreads when contaminated water enters through the nose
  • Victim, a Karachi resident, used water at home and nearby mosque for ablution, says Sindh government

KARACHI: A 23-year-old man died in Pakistan’s southern port city of Karachi this week after contracting Naegleria fowleri, the Sindh Health Department said on Wednesday, marking the second death of the year from the deadly brain-eating amoeba.

Naegleria fowleri, commonly known as the brain-eating amoeba, has a fatality rate of over 98 percent. It is transmitted when contaminated water enters the body through the nose and cannot be spread from person to person.

Pakistan has witnessed a rise in Naegleria fowleri cases in recent years, with more than 100 reported deaths since the first confirmed infection in 2008. Five fatalities were recorded in 2024 alone.

In the latest case the deceased, a resident of Karachi’s Orangi Town area, was hospitalized on May 30 after suffering from symptoms on May 28. He died on June 3 after the presence of Naegleria fowleri was confirmed in the patient on June 1. 

“Upon investigation, it was noted that the patient had not participated in any water-related activities,” the Sindh Health Department said. “His only exposure was regular use of water at home and use of water at a nearby local mosque to perform ablution.”

Symptoms of Naegleria fowleri infection include severe headache, altered sense of taste, high fever, sensitivity to light, nausea and vomiting. Death typically occurs within five to seven days of infection.

The health department confirmed this was the second death in Pakistan from Naegleria fowleri in 2025. The first death was reported in March when a 36-year-old woman died from the same disease. She was also a resident of Karachi. 

A 2021 study by the Sindh Health Department found that 95 percent of water samples in Karachi, Sindh’s provincial capital, were unfit for human consumption.

Experts say the contamination leads to the spreading of the brain-eating amoeba among the city’s residents.


Pakistan clinches 14 medals at Asian Indoor Rowing Championship in Thailand

Pakistan clinches 14 medals at Asian Indoor Rowing Championship in Thailand
Updated 04 June 2025

Pakistan clinches 14 medals at Asian Indoor Rowing Championship in Thailand

Pakistan clinches 14 medals at Asian Indoor Rowing Championship in Thailand
  • Pakistan rowing team wins 10 gold medals, three silver and one bronze
  • Championship features athletes competing on indoor rowing machines

ISLAMABAD: Pakistan bagged 14 medals, including 10 gold ones, at the recently concluded Asian Indoor Rowing Championship in Thailand, state media reported this week.

The Asian Indoor Rowing Championship was organized by the Asian Rowing Federation from May 26 to 31 in Pattaya, Thailand, to showcase the talents of indoor rowers from across Asia.

Unlike traditional rowing competitions held on water, this championship features athletes competing on indoor rowing machines, such as the Concept2 ergometer, simulating the rowing experience in a controlled environment.

“Competing against 25 countries, the Pakistani squad stunned traditional powerhouses such as India, Iran, Thailand, South Korea and Japan,” Radio Pakistan said in a report on Monday.

“Despite being a small contingent, the Pakistani rowers delivered an outstanding performance that defied expectations.”

According to a local news outlet, Pakistan won 10 gold, three silver and one bronze medal.

Key contributors included Pakistani rowers Abdul Jabbar and Muhammad Shahzad, who won one gold and one silver each.

Tayyab Iftikhar earned one silver medal and one bronze, the report added.

Radio Pakistan said the athletes received a grand welcome from the Pakistan Rowing Federation (PRF) upon their return to the country.

It highlighted that the athletes’ performance marked “a new era for rowing” in Pakistan. PRF President Hamdan Nazir and Chairman Rizwan-ul-Haq also praised the players for their outstanding achievements.


Pakistani man accused of killing young TikTok influencer appears in court

Pakistani man accused of killing young TikTok influencer appears in court
Updated 44 min 32 sec ago

Pakistani man accused of killing young TikTok influencer appears in court

Pakistani man accused of killing young TikTok influencer appears in court
  • Umar Hayat is accused of killing TikTok influencer Sana Yousaf for rejecting friendship offers
  • Pakistani judge orders Hayat to be presented again on June 18 for pretrial proceedings

ISLAMABAD: A Pakistani man accused of killing a 17-year-old TikTok influencer after she rejected his offer of friendship made his first court appearance Wednesday, officials and police said.

Suspect Umar Hayat, 22, who also creates content on TikTok, was arrested Tuesday by Islamabad police in Faisalabad, an industrial city in eastern Punjab province.

He is accused of shooting Sana Yousuf, who had more than one million followers on social media. The killing earlier this week in Islamabad drew widespread condemnation.

TV footage showed Hayat with his face covered as he was brought to court, where police requested additional time to complete their investigation and file formal murder charges.

The judge ordered that Hayat be presented again on June 18 for pretrial proceedings.

Yousuf, originally from the scenic northern region of Chitral, was known for promoting traditional Chitrali music and dress through her videos. She also advocated for girls’ education. TikTok has more than 60 million users in Pakistan, many of them young women and teenagers.

Hours before her murder, she had posted a photo celebrating her birthday with friends.


Pakistan’s Punjab issues solar panel installation guidelines following accidents

Pakistan’s Punjab issues solar panel installation guidelines following accidents
Updated 04 June 2025

Pakistan’s Punjab issues solar panel installation guidelines following accidents

Pakistan’s Punjab issues solar panel installation guidelines following accidents
  • Over 70% of 124 accidents reported across Punjab during May 24 thunderstorms were related to solar panels, says disaster management authority
  • Guidelines include installation of solar panels by those certified by federal government, using wind-rated mounting systems that withstand pressure

ISLAMABAD: The disaster management authority in Pakistan’s most populous Punjab province on Wednesday issued new guidelines for the installation of solar systems, citing that over 70 percent of accidents related to solar panels were reported during a thunderstorm last month. 

Thunderstorms killed at least 21 people and injured more than 100 others in Punjab late last month as moist currents penetrated upper parts of Pakistan, according to national and provincial disaster management authorities.

Earlier this week, the Punjab Disaster Management Authority (PDMA) issued a fresh alert for rain and strong, dusty winds across the province from June 2 to June 5. 

“During the thunderstorm on May 24, there were 124 small and large accidents in Punjab,” PDMA spokesperson Mazhar Hussain told Arab News. 

“When this was analyzed, it was revealed that over 70 percent of the accidents have been caused by solar panels or related structures,” he added. 

PDMA Director General Irfan Ali Kathia said new guidelines and a regulatory framework were prepared by stakeholders, including the province’s energy department and the local government department.

“These instructions are aligned with the national framework provided by the Alternative Energy Development Board (AEDB), and include essential safety protocols, installation standards and the responsibilities of certified installers,” Kathia explained. 

According to the guidelines seen by Arab News, the PDMA has directed users to procure the services of AEDB-certified installers to ensure a professional solar system design and so that the panels are properly mounted, sealed and structurally reinforced.

Along with other technical details, the PDMA stresses people to use wind-rated mounting systems attached to mountings by stainless steel nut bolts. The authority directs that these bolts be fastened using stainless steel spring washers. 

It also says people should consider windstorm-safe anchors or extra brackets in the province’s regions prone to storms. 

“The mountings itself should be properly secured with base/floor to ensure it can withstand windstorms and other climatic vagaries,” the document stated.

Kathia said only professionals approved by the AEDB will be authorized to install solar energy systems. He said this move was aimed at ensuring technical standards were maintained and risks associated with faulty or unregulated installations were reduced.

“In addition, all structures across Punjab that may be vulnerable to future damage are being surveyed by the respective deputy commissioners,” the PDMA official said.

He added strict compliance would be ensured in close coordination with district administrations to avoid such accidents in the future. 

Khalil Ahmed, owner of a solar installation company in Punjab’s provincial capital Lahore, supported the PDMA’s decision.

Ahmed said people often hire non-professional installers to save a small amount of money, putting both their systems and safety at risk.

“Ensuring that only AEDB-certified professionals handle solar installations is not just a matter of compliance, it’s a matter of public safety,” he told Arab News.

Proper mounting, structural reinforcement, and weatherproofing are essential to prevent accidents and protect both lives and property, he added.


PM invites opposition leader for talks on Pakistan election commissioner’s appointment

PM invites opposition leader for talks on Pakistan election commissioner’s appointment
Updated 04 June 2025

PM invites opposition leader for talks on Pakistan election commissioner’s appointment

PM invites opposition leader for talks on Pakistan election commissioner’s appointment
  • PM, opposition leader are required to finalize three names for chief election commissioner before forwarding them to parliamentary committee
  • Omar Ayub’s Pakistan Tehreek-e-Insaf party accuses Shehbaz Sharif’s party of rigging 2024 election by colluding with Election Commission of Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday wrote a letter to opposition leader Omar Ayub, inviting him to hold consultations regarding the appointment of a new Pakistan chief election commissioner. 

Former chief election commissioner Sikandar Sultan Raja and two other members of the Election Commission of Pakistan (ECP) from Sindh and Balochistan completed their five-year tenures on Jan. 26 this year. However, they continue to hold office as per Article 215 of the constitution until their replacements are appointed. 

As per Pakistan’s constitution, the prime minister shall forward, after consultations with the leader of the opposition in the National Assembly, three names for the appointment of the chief election commissioner to a parliamentary committee for hearing and confirmation of any one person. 

“In view of the aforesaid, you are invited for a meeting for consultation, in terms of clause (2A) of Article 213 of the Constitution of Islamic Republic of Pakistan, 1973, in order to finalize three names each for appointment of Chief Election Commissioner and Members from Sindh and Balochistan,” a copy of Sharif’s letter to Ayub, seen by Arab News, said. 

Raja oversaw Pakistan’s contentious general election last year marred by a countrywide shutdown of cellular networks, suspension of Internet services and delayed results. Ayub’s Pakistan Tehreek-e-Insaf (PTI) and other opposition parties alleged the ECP, under Raja, manipulated the results of the polls to facilitate his political rivals. 

The ECP strongly rejected the PTI’s allegations while the caretaker government at the time said mobile phone and Internet services were suspended to maintain law and order in the country. Sharif’s government has also rejected the PTI’s allegations and said the polls were free, fair and transparent. 

Former prime minister Imran Khan’s PTI has held several protests against the government and demanded it investigate allegations of rigging in the 2024 election, and return its “stolen” mandate.

The government, on the other hand, has urged the PTI to seek legal recourse and avoid taking to the streets in protest. 

Talks between the two sides to break political tensions were held earlier this year. However, after a couple of rounds, the PTI pulled out, accusing the government of not fulfilling its demands to form judicial commissions to probe violent protests in May 2023 and November 2024. 

The government alleges the violent protests were instigated by the PTI leadership.