Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation
Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation/node/2609251/pakistan
Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation
In this handout photo, taken and released by Karachi Port Trust, a container ship sits docked at the Karachi Port in Karachi on May 29, 2024. (Photo courtesy: KPT/File)
ISLAMABAD: Pakistan and the United Arab Emirates strengthened economic ties this year, with bilateral trade increasing by 20.24 percent to $10.1 billion in fiscal 2024–25, according to State Bank of Pakistan data cited by Radio Pakistan on Thursday.
The state broadcaster report attributed the gains to the efforts of the Special Investment Facilitation Council (SIFC), a civil-military body set up in 2023 to fast‑track Gulf and other foreign investments in Pakistan’s key sectors. Islamabad aims to leverage these ties to reduce its import bill, attract capital, and create jobs.
The renewed focus on FDI comes amid Pakistan’s efforts to diversify exports and stabilize its economy under an IMF-supported reform program.
“There has been significant progress in Pakistan‑UAE cooperation due to effective policies of Special Investment Facilitation Council (SIFC),” the state broadcaster reported, attributing the statement to the Interior Ministry.
The growth follows the 12th session of the Pakistan‑UAE Joint Ministerial Commission, where officials from both countries discussed collaborations in trade, investment, food security, aviation, IT and energy, Radio Pakistan added.
Bilateral trade reached approximately $10.9 billion in fiscal 2023–24, including $8.41 billion in goods and $2.56 billion in services. Exports from Pakistan to the UAE were around $2.1 billion in FY25, compared to $8 billion in imports.
The UAE is also a major source of remittances. In 2024, money sent home by the Pakistani diaspora was $6.7 billion, which is projected to exceed $7 billion in 2025.
ISLAMABAD: A majority of financial market participants expect Pakistan’s central bank to cut its key interest rate by 50 to 100 basis points at its upcoming Monetary Policy Committee (MPC) meeting on July 30, according to a new poll by Topline Securities published this week.
The findings reflect growing market confidence that declining inflation and easing global oil prices have created space for monetary easing. In its last meeting, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 11 percent, citing uncertainty over the federal budget and regional tensions in the Middle East. This time, a stronger consensus appears to be building toward a rate cut.
In the latest survey, 56 percent of participants said they expect a 50–100 bps cut, compared to 44 percent in the previous poll, while 37 percent now expect no change, down from 56 percent in the last round.
Topline’s own forecast aligns with the consensus: the brokerage expects a 50 bps cut, noting that real interest rates remain elevated relative to historical averages.
“With FY26 inflation expected to average between 5–7 percent, the current policy rate of 11 percent implies real interest rates of 400–600 basis points — well above the historical range of 200–300 bps,” Topline said.
The survey also offered a broader glimpse into market sentiment:
51 percent of respondents expect the policy rate to fall to 10 percent by December 2025, with another 32 percent expecting 9 percent
On inflation, 54 percent forecast average inflation between 6–8 percent, while 27 percent see it between 4–6 percent
On the exchange rate, 51 percent expect the rupee to hover between Rs285–290 per US dollar by December 2025
Topline expects July inflation to fall to 3–3.5 percent, with prices staying between 3–5 percent through January 2026 before inching up to 6–8 percent through mid-2026. Pakistan’s government has set a 7.5 percent inflation target for FY26, while the IMF projects an average of 7.7 percent.
Secondary market signals also point to easing: yields on 6-month KIBOR and T-bills have dropped by 10–39 bps since the last MPC meeting. The 6M KIBOR currently stands at 10.99 percent, while the 6-month T-bill is at 10.75 percent.
KARACHI: Pakistan on Thursday signed a memorandum of understanding (MoU) with China’s Shandong Xinxu Group to deepen cooperation in ship leasing, sales and crew management, marking what officials described as a “new chapter” in maritime collaboration between the two countries.
The agreement between the Pakistan National Shipping Corporation (PNSC) and the Chinese firm is part of Islamabad’s broader push to modernize its shipping industry to enhance seaborne trade, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said during the signing ceremony in Islamabad.
“This agreement marks the beginning of joint development,” Chaudhry said. “It will strengthen Pakistan’s role in the growth of the shipping industry and create an enabling environment for further investment in the maritime sector.”
Under the MoU, the Chinese company has principally agreed to provide capital and vessels to PNSC, with cooperation covering ship acquisition, leasing, marketing and operational services.
The announcement comes just days after Pakistan halved port charges at Karachi Port, the country’s largest deep-sea facility, as part of a series of reforms aimed at cutting logistics costs and supporting low-emission, climate-resilient maritime practices.
“By lowering operational costs and streamlining logistics, we are not only boosting trade competitiveness but also contributing to climate resilience,” Chaudhry said over the weekend.
The ministry has also decided to deploy technologies such as artificial intelligence and drones to monitor port activity and reduce container dwell times by up to 70 percent.
Shandong Xinxu is one of several Chinese firms expanding investment in Pakistan under the multibillion-dollar China-Pakistan Economic Corridor (CPEC) cooperation.
ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar is expected to chair a United Nations Security Council (UNSC) meeting today, Thursday, on ties between the United Nations and the Organization of Islamic Cooperation (OIC), according to Security Council Report, an independent entity that closely monitors the Council’s work.
The meeting is among the signature events of Pakistan’s UNSC presidency this month and falls under the broader agenda of UN cooperation with regional and subregional entities.
A presidential statement, initiated by Pakistan, is expected to be adopted unanimously during the session.
“The agreed text of the draft presidential statement notes the interest of utilising the existing and potential capabilities of the OIC, including through encouraging its member countries to resolve differences peacefully through dialogue, reconciliation, consultation, negotiation, good offices, mediation, and judicial settlement of disputes,” Security Council Report said.
“Among other issues, it recognizes the importance of OIC interaction with the Peacebuilding Commission (PBC) in support of nationally owned peacebuilding efforts and commends OIC member states for their commitment to international peacekeeping and peacebuilding, including through the contribution of troops to UN peacekeeping operations,” it added.
Founded in 1969, OIC includes 57 member states across four continents and serves as a platform for collaboration on political, economic and social issues affecting Muslim communities.
Presidential statements are formal expressions of the Council’s consensus but are not legally binding. They require unanimous approval and are often preceded by complex negotiations.
In a concept note circulated earlier this month, Pakistan said the meeting aimed to take stock of UN-OIC collaboration and identify ways to deepen cooperation on peacekeeping, conflict prevention, counter-terrorism and institutional dialogue.
The note also posed questions about how the UN could help enhance the OIC’s conflict resolution capacity and better align institutional efforts on global peace and security.
QUETTA: A man was killed and three others injured in an attack on Wednesday night in southwestern Balochistan province after unknown individuals threw a hand grenade at a group of civilians sitting outside their house, a senior police official said.
The attack was reported at 10 PM in the mountainous town of Aab-e-Gum, located in Kachi district, after unidentified men lobbed a hand grenade at four people, Rana Muhammad Dilawar, Superintendent of Police in the area, told Arab News over the phone.
“One man identified as Ahmed was killed in the grenade attack and three others were injured,” he said, adding: “The injured were shifted to Mach District Headquarter Hospital before two of them were referred to Quetta.”
No group has claimed responsibility for the attack, though Pakistan’s restive province has been the site of a separatist insurgency for several decades, with militants belonging to groups like the Baloch Liberation Army (BLA) often targeting members of the Pakistani armed forces, state-backed tribal leaders and non-local workers in such attacks.
“Police have been investigating the motives behind targeting civilians with a grenade attack,” Dilawar said. “Hunt for the attackers is also underway in the area who fled by taking advantage of the dark.”
Aab-e-Gum is a small town located some 73 kilometers southeast of Quetta, surrounded by rugged mountains, and has remained a stronghold of ethnic Baloch separatist groups, particularly the BLA.
The group has previously targeted Punjab-bound passenger trains in the area that cross the Bolan Pass.
PESHAWAR, Pakistan: In the heart of the ancient walled city of Peshawar, perched on one of its highest elevations, stands a site layered with millennia of history.
Gor Khatri, literally, “Warrior’s Grave,” is a sprawling archaeological complex where 13 successive civilizations have left their mark, from the Indo-Greeks of the second century BC to the British Raj.
Located at a strategic point in what is now northwestern Pakistan, the complex was once a major caravanserai on the trade routes linking Central Asia to the Indian subcontinent. Today, it remains one of the oldest continuously inhabited urban settlements in South Asia — a rare living museum.
Peshawar’s strategic geography has long made it a magnet for conquest, trade and religion.
An old fire brigade caravan on display in Gor Khatri, situated in Peshawar, Pakistan on July 16, 2025. (AN Photo)
Nestled at the mouth of the Khyber Pass — the historic invasion route into the subcontinent — the city has served as a crossroads between Central and South Asia for over two millennia. Greek settlers, Buddhist monks, Persian merchants, Mughal princesses and British generals have all passed through this terrain, leaving behind a mosaic of cultural and architectural legacies.
“Peshawar is one of the oldest living cities of South Asia,” said Dr. Numan Anwar, field supervisor at Gor Khatri for the Khyber Pakhtunkhwa Directorate of Archaeology and Museums.
“The site has the footprints of 13 civilizations.”
The current 160-by-160-foot square structure dates to 1641, when it was commissioned by Mughal princess Jahan Ara, daughter of Emperor Shah Jahan, and named Sarai Jahanabad. Built as a caravan rest stop, the complex included cells, chambers and grand gateways, many of which still survive.
“When Jahan Ara Begum came to that [caravan resting] spot and saw people from many regions gathering here, she had the present building constructed,” said Dr. Zakirullah Jan, associate professor at the University of Peshawar’s Department of Archaeology.
“The cells, rooms, gateways, all were constructed during the Mughal period.”
“BUDDHA’S BOWL”
The site’s significance reaches far deeper than the Mughal era.
Gor Khatri has yielded the earliest archaeological material ever found in Peshawar, dating back to the Indo-Greek period, roughly the second or third century BC.
Overview of Gor Khatri, an archaeological site in Peshawar, Pakistan, pictured on July 16, 2025. (AN Photo)
“The earliest level that has been discovered related to the history and archaeology of Peshawar came from the site of Gor Khatri,” Dr. Jan said.
“When Alexander came, and when the Indo-Greeks came, the Mauryans came, it touches that time.”
Excavations began in earnest in 1992 through a joint initiative by the Directorate of Archaeology and Museums and the University of Peshawar.
Archaeologists have since unearthed layers revealing Roman coins, Kushan pottery, Scythian jewelry and even traces from the White Huns and the Ghaznavid Empire.
Chinese pilgrim Xuanzang, the 7th-century Buddhist monk who translated sacred texts from Sanskrit to Chinese, is believed to have visited the site. In his writings, he is known to have described a location where “Buddha’s giant bowl was kept,” which many historians believe refers to Gor Khatri. The bowl, some researchers say, was historically kept in Peshawar and Kandahar before being moved to the Kabul Museum.
Today, a small museum inside Gor Khatri showcases pottery shards, coins, beads, seals and kitchen tools from the many civilizations that passed through.
A man pushes a cart outside the entrance gate of Gor Khatri, a Mughal-era caravanserai, in Peshawar, Pakistan, on July 16, 2025. (AN Photo)
The complex also houses a mosque and the Goraknath Temple, a Hindu shrine built between 1834 and 1849, which now coexists in the same space — a testament to religious diversity.
“There is not a single break in the cultural history of this region,” said Dr. Jan. “Since the second century BC till now, there is a continuity of culture. That’s why the site is important.”
The British-era governor’s residence still stands at one corner of the site. Paolo Crescenzo Martino Avitabile, an Italian general in the army of Maharaja Ranjit Singh, once ruled Peshawar from this post between 1838 and 1842. Locally remembered as Abu Tabela, his tenure is part of the site’s colonial legacy.
On a typical day, students and families explore the site’s pathways and peek into excavated trenches, standing on layers of millennia-old soil.
“Whenever my friends come from cities like Mardan, Swat, or Lahore, I take them here to show them the positive side of Peshawar,” said Hamza Khan, 21, a student of Peace and Conflict Studies.
“This place represents religious and cultural diversity.”
The excavation work at Gor Khatri concluded in most parts in 2012, but archaeologists say there is still much to study.
What remains today is not just an ancient structure, but a microcosm of Peshawar’s civilizational depth — where Buddhist monks, Mughal princesses, British soldiers and local pilgrims have all, at some point, passed through.
