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Pakistan witnesses significant drops in default risks, stands second globally — finance adviser

Pakistan witnesses significant drops in default risks, stands second globally — finance adviser
A dealer counts US dollars at a money exchange market in Karachi on March 2, 2023. (AFP/File)
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Pakistan witnesses significant drops in default risks, stands second globally — finance adviser

Pakistan witnesses significant drops in default risks, stands second globally — finance adviser
  • The South Asian country is second only to Turkiye, recording 22 percent reduction in default risk since June last year
  • The decline results from macroeconomic stability, structural economic reforms, timely debt servicing, official says

ISLAMABAD: Pakistan has witnessed one of the sharpest drops in sovereign default risks and stands second worldwide based on Credit Default Swap-implied probability, the country’s finance adviser said on Sunday, citing data from Bloomberg.

A Credit Default Swap-implied probability is the market’s forward-looking estimate of the probability of a borrower defaulting on their debt as derived from the spread of their Credit Default Swap (CDS) contract.

The South Asian country is second only to Turkiye in the Emerging Market (EM) rankings, recording 22 percent reduction in default risk over the last 15 months from June 24 till September 25, according to Khurram Schehzad, adviser to the finance minister.

“Default probability down by a massive 2,200 basis points,” Schehzad said on X. “Pakistan is the only country in the EM sample showing consistent quarterly improvement across the past year.”


The development comes as the South Asian country navigates a long path to economic recovery under a $7 billion International Monetary Fund (IMF) program.

Schehzad said this sharp decline in country’s default risk resulted from macroeconomic stability, structural economic reforms, timely debt servicing, staying the course with the IMF program, and positive ratings actions from global agencies such as S&P, Fitch and Moody’s.

“Message to investors: Pakistan is steadily rebuilding market credibility, standing out as one of the most improved sovereign credit stories in the emerging market universe,” he added.


No handshakes again as India, Pakistan meet at Women’s World Cup

No handshakes again as India, Pakistan meet at Women’s World Cup
Updated 05 October 2025

No handshakes again as India, Pakistan meet at Women’s World Cup

No handshakes again as India, Pakistan meet at Women’s World Cup
  • Neighbours faced off three times at recent men’s Asia Cup, did not shake hands before or after
  • India and Pakistan only meet in cricket in international tournaments and on neutral territory

COLOMBO: India captain Harmanpreet Kaur and her Pakistan counterpart Fatima Sana did not shake hands at the toss of Sunday’s Women’s World Cup cricket match, mirroring the actions of their men’s teams.

Sana won the toss and chose to field at Colombo’s R. Premadasa Stadium, where there were also no formal greetings between the players of both teams before the national anthems.

The neighbors faced off three times at the recent men’s Asia Cup in the United Arab Emirates, and did not shake hands before or after.

The Asia Cup, which concluded last Sunday with India beating their rivals, was notable for ill-feeling between the two teams and a series of on-field flashpoints.

The tournament in the UAE was the first time the nuclear-armed neighbors had met since a deadly border conflict between them in May.

India and Sri Lanka are co-hosting the Women’s World Cup.

As part of a compromise deal, Pakistan will play all their matches including Sunday’s group match in Sri Lanka, rather than travel to India.

India and Pakistan only meet in cricket in international tournaments and on neutral territory.


Pakistan denies reports of US proposal for Arabian Sea port at Pasni — state media

Pakistan denies reports of US proposal for Arabian Sea port at Pasni — state media
Updated 05 October 2025

Pakistan denies reports of US proposal for Arabian Sea port at Pasni — state media

Pakistan denies reports of US proposal for Arabian Sea port at Pasni — state media
  • Financial Times report claimed Field Marshal Munir’s advisers approached US with proposal to build Arabian sea port
  • “Conversations with private companies were exploratory, not official initiatives,” security official tells state media

ISLAMABAD: Pakistan has not offered the United States access to a proposed port at Pasni, a senior security official told state-run Pakistan TV on Sunday, saying there had been no official communication with Washington and any discussions on the idea were “purely exploratory.”

The clarification follows a Financial Times report this week that advisers to Pakistan’s army chief, Field Marshal Asim Munir, had approached US officials with a proposal to build and operate a port on the Arabian Sea. The plan reportedly envisions American investors developing and managing a port in the southwestern town of Pasni, located in Balochistan’s Gwadar district, to facilitate access to Pakistan’s critical minerals.

A senior security official told Pakistan TV the report did not represent official government or military policy.

“Conversations with private companies were exploratory, not official initiatives,” the state-run digital outlet quoted him as saying on condition of anonymity.

“There is no plan to hand over Pasni’s security to any foreign power. The Chief of Army Staff does not have advisers in any official capacity. Linking these ideas directly to him is misleading and inaccurate,” he added, saying the army chief should not be directly linked with any such proposals.

Pasni, a small fishing town of about 70,000 people, has long been viewed as a potential site for port development because of its naturally deep waters.

“Pasni’s location may make it significant in global geopolitics … but at this stage, it is only an idea, not an initiative,” the official added. 

The US State Department, White House and Pakistan’s army and foreign ministry have not commented on the FT report.

While the Pakistan TV report said the Pasni port proposal may have been floated by private parties but was never routed through official channels or reviewed at a strategic level, the Financial Times said the proposal was discussed with some US officials and shared with Munir ahead of his meeting with President Donald Trump at the White House late last month.

The report highlighted that the plan does not include any provision for US military bases but sought development financing to build a rail network connecting the port to Pakistan’s mineral-rich western provinces.

China already has a major presence in Gwadar and the Pasni port proposal would offer the US a potential foothold in the region. 

The development could add a new layer to the strategic competition between Washington and Beijing in the Indian Ocean. It may also test Islamabad’s ability to balance its ties with both powers while pursuing much-needed foreign investment. 


Pakistan joins Arab, Muslim nations in backing Hamas response to Trump’s Gaza plan

Pakistan joins Arab, Muslim nations in backing Hamas response to Trump’s Gaza plan
Updated 05 October 2025

Pakistan joins Arab, Muslim nations in backing Hamas response to Trump’s Gaza plan

Pakistan joins Arab, Muslim nations in backing Hamas response to Trump’s Gaza plan
  • Statement by Pakistan, Ƶ, Egypt, Jordan, UAE, Indonesia, Türkiye, Qatar calls move “real opportunity” for ceasefire
  • Foreign ministers urge swift talks to implement Trump proposal, ensure aid access and full Israeli withdrawal

ISLAMABAD: Pakistan and seven other Arab and Muslim nations on Sunday welcomed Hamas’s response to US President Donald Trump’s proposal to end the war in Gaza, calling it a “real opportunity” to achieve a lasting ceasefire and address the worsening humanitarian crisis.

Trump unveiled his 20-point Gaza peace plan on Sept. 29, proposing an immediate ceasefire, the release of hostages, a phased Israeli withdrawal, Hamas disarmament and a reconstruction plan for Gaza under international supervision. The proposal has since drawn cautious support from several Arab and Islamic nations as a possible framework to end a conflict that has killed tens of thousands of Palestinians since October 2023.

In a joint statement released by Pakistan’s Ministry of Foreign Affairs, the foreign ministers of Jordan, the United Arab Emirates, Indonesia, Pakistan, Türkiye, Ƶ, Qatar and Egypt said they welcomed “the steps taken by Hamas regarding US President Donald Trump’s proposal to end the war on Gaza, release all hostages, alive or deceased, and the immediate launch of negotiations on implementation mechanisms.”

“The Foreign Ministers reiterated their joint commitment to support efforts toward the implementation of the proposal,” the statement said, pledging to work for “the immediate end of the war on Gaza” and to ensure “unrestricted delivery of humanitarian aid.”

Palestinians inspect the site of an Israeli strike on Saturday, on a house in the Tuffah neighborhood in Gaza City October 5, 2025. (REUTERS)

The ministers praised Hamas’s announcement of its readiness to hand over Gaza’s administration to a transitional Palestinian technocratic committee, and welcomed Trump’s call on Israel “to immediately stop the bombing and to begin implementation of the exchange agreement.” 

They also expressed appreciation for what they described as his “commitment to establishing peace in the region.”

The statement emphasized that the ministers viewed these developments as “a real opportunity to achieve a comprehensive and sustainable ceasefire, and to address the critical humanitarian conditions facing people in Gaza.” 

It added that any agreement must prevent the displacement of Palestinians, guarantee civilian protection, ensure the release of hostages and allow the Palestinian Authority’s return to Gaza under a unified administration of Gaza and the West Bank.

Hamas, in its written response released Friday, said it accepted the release of “all occupation war prisoners, both living and dead,” under Trump’s proposed exchange formula, provided field conditions for implementation are secured. 

The group also reaffirmed its approval to “entrust the administration of the Gaza Strip to an independent Palestinian administration (a technocratic authority) based on Palestinian national consensus and supported by Arab and Islamic backing.”


Pakistan, India to face off in Women’s World Cup amid political tension, rain threat

Pakistan, India to face off in Women’s World Cup amid political tension, rain threat
Updated 05 October 2025

Pakistan, India to face off in Women’s World Cup amid political tension, rain threat

Pakistan, India to face off in Women’s World Cup amid political tension, rain threat
  • Pakistan skipper Fatima Sana says team focused solely on game despite rivalry backdrop
  • BCCI hints Indian players may again avoid handshakes as political tension spills into sport

ISLAMABAD: Pakistan and India are set to meet today, Sunday, in a much-anticipated encounter at the ICC Women’s Cricket World Cup, though persistent rain in Colombo threatens to disrupt play at the R. Premadasa Stadium.

Pakistan are seeking to bounce back after a heavy opening defeat to Bangladesh, while India come in with confidence following their win against Sri Lanka. Forecasts predict intermittent showers throughout the day, and officials have warned that the weather could interrupt or even shorten the match. Heavy rain in Colombo also forced the cancelation of Saturday’s fixture between Sri Lanka and Australia.

India have an unbeaten record against Pakistan in women’s One-Day Internationals, winning all 11 previous encounters. Pakistan will play all their group-stage matches in Colombo, with both the semifinal (Oct. 29) and the final (Nov. 2) also scheduled for the same venue.

The contest comes amid renewed political tension after the Board of Control for Cricket in India (BCCI) suggested its players may again avoid handshakes with their Pakistani counterparts, continuing a policy adopted during the men’s Asia Cup earlier this year.

“I cannot forecast anything, but our relationship with that country [Pakistan] is the same, there is no change in the last week,” BCCI Secretary Devajit Saikia told the BBC. 

“India will play that match against Pakistan in Colombo, and all cricket protocols will be followed. Whether there will be handshakes, whether there will be hugging, I cannot assure you of anything at this moment.”

His comments follow India’s widely criticized conduct at the Asia Cup 2025, when its men’s team refused pre- and post-match handshakes with Pakistani players and declined to receive the trophy from Asian Cricket Council President Mohsin Naqvi, who also chairs the Pakistan Cricket Board and is the country’s interior minister.

Pakistan captain Fatima Sana said her team remained focused on performance and unity despite off-field politics.

“Our main goal is to play well. Our relationship with the other teams is good. We will try to fulfil the spirit of the game,” she told reporters on Saturday.

Asked whether she would miss the camaraderie seen during the 2022 World Cup, when Indian players gathered around then-Pakistan captain Bismah Maroof and her infant daughter, Fatima said such gestures were welcome but secondary to performance.

“What happened before, like with Bismah’s daughter, when everyone mingled and enjoyed together — as players, we all like such moments. But the main thing is to stay focused on what we have come here for,” she said.

Trailing India 11-0 in their head-to-head record, Fatima dismissed talk of odds being stacked against her team, insisting Pakistan have the talent to defeat top sides. 

“Records are meant to be broken,” she said.

The tournament runs from September 30 to November 2 across India and Sri Lanka. 


Pakistan confirms ex-senator detained in Israel after flotilla interception, says he is safe

Pakistan confirms ex-senator detained in Israel after flotilla interception, says he is safe
Updated 05 October 2025

Pakistan confirms ex-senator detained in Israel after flotilla interception, says he is safe

Pakistan confirms ex-senator detained in Israel after flotilla interception, says he is safe
  • Foreign Office says former senator Mushtaq Ahmad in Israeli custody but “in good health”
  • Islamabad working with partners for early repatriation of its nationals detained from flotilla

ISLAMABAD: Pakistan’s Foreign Office said on Saturday former senator Mushtaq Ahmad, who was aboard the Global Sumud Flotilla intercepted by Israeli forces this week, is in Israeli custody but safe and in good health.

The Global Sumud Flotilla, an aid convoy carrying activists from several countries, was intercepted by Israeli naval forces on Wednesday as it sailed toward Gaza to deliver humanitarian assistance and call for an end to the blockade of the enclave. The operation led to the detention of hundreds of participants, triggering protests in multiple countries, including Pakistan, and diplomatic appeals for their release.

The Pakistani government has said several of its nationals were on board the flotilla, which departed from European ports with medical supplies and food for civilians in Gaza, where a humanitarian crisis has deepened amid months of Israeli bombardment and aid blockades.

“Through the diplomatic channels of a friendly European country, we have confirmed that former Senator Mushtaq Ahmad is in the custody of the Israeli occupying forces and is safe and in good health,” the Foreign Office said in a statement.

It added that Ahmad would be presented before a court under local legal procedures and that, once deportation orders were issued, his return would be arranged on a “fast-track basis.”

The ministry said Pakistan had already coordinated the safe return of several citizens who disembarked earlier and expressed gratitude to “brotherly countries” that assisted in those efforts. 

It said the government “remains committed to the protection of all its citizens abroad” and expects the repatriation process to conclude in the coming days.

The flotilla incident has drawn international condemnation, with rights groups calling for the immediate release of detainees and renewed access for humanitarian aid to Gaza.