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Pakistan signs financial advisory deal to privatize state-owned agricultural bank

Pakistan signs financial advisory deal to privatize state-owned agricultural bank
An undated file photo of Zarai Taraqiati Bank Limited (ZTBL). (ZTBL/ website)
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Updated 15 August 2025

Pakistan signs financial advisory deal to privatize state-owned agricultural bank

Pakistan signs financial advisory deal to privatize state-owned agricultural bank
  • IMF has urged Pakistan to privatize loss-making or under-performing state firms to ease pressure on public finances
  • Government hopes private investment will modernize agricultural finance and help farmers adopt new technologies

ISLAMABAD: Pakistan has signed a financial advisory services agreement to begin the strategic privatization of Zarai Taraqiati Bank Limited (ZTBL), the country’s largest state-owned agricultural lender, the privatization commission said on Friday.

The move comes as Islamabad faces pressure to privatize loss-making or under-performing state-owned enterprises under International Monetary Fund loan agreements in recent years.

The government expects the sell-off drive to improve efficiency by putting such entities under competitive, corporate management.

ZTBL’s privatization comes at a time when Pakistan is striving to bolster food security in the face of extreme climate patterns by modernizing agricultural finance, helping farmers adopt new technologies and practices critical for boosting yields and resilience.

“The privatization of ZTBL is designed to catalyze investment in Pakistan’s agricultural future by combining private sector efficiency with the bank’s long-standing expertise in agricultural finance,” the commission said in a statement. “The goal is to ensure farmers have timely access to essential financial resources.”

It signed the financial advisory services agreement with a consortium led by Next Capital Limited.

ZTBL operates a network of more than 500 branches nationwide, providing credit to small farmers and rural communities.

Officials said private investment was expected to expand the bank’s product range, introduce modern banking technologies, improve governance and strengthen customer service.

Under the newly signed agreement, advisers will conduct due diligence, market sounding and investor engagement, as well as structure and market the transaction and assist in a transparent bidding process.


UK clears final permit for PIA flights, paving way for return to Britain this month

UK clears final permit for PIA flights, paving way for return to Britain this month
Updated 27 sec ago

UK clears final permit for PIA flights, paving way for return to Britain this month

UK clears final permit for PIA flights, paving way for return to Britain this month
  • Britain lifted restrictions on Pakistani carriers in July, almost five years after a deadly crash
  • Pakistan plans to relaunch Manchester route first, with Birmingham and London to follow

ISLAMABAD: The United Kingdom’s Civil Aviation Authority on Friday issued a Foreign Aircraft Operating Permit to Pakistan International Airlines (PIA), the country’s high commission in London said, clearing the final administrative hurdle for the carrier to resume flights to Britain this month.

Britain lifted restrictions on Pakistani carriers in July, nearly half a decade after grounding them following a 2020 PIA Airbus A320 crash in Karachi that killed 97 people. The disaster was followed by claims of irregularities in pilot licensing, which led to bans in both the UK and the European Union.

A PIA spokesperson had earlier announced plans to restart direct flights to Britain in October after securing international safety and security approvals, signaling a return to one of its most important markets while awaiting the UK permit.

“The Wait Is Over,” the Pakistan High Commission in London exclaimed in a post on social media.

“High Commissioner @DrMFaisal is grateful to the Civil Aviation Authority, UK @UK_CAA for issuing the Foreign Aircraft Operating Permit (FOP) today, the final document enabling commercial flights between the UK and Pakistan,” it added.

PIA has already received Third-Country Operator (TCO) approval for flight operations in Britain and will initially relaunch flights to Manchester, with Birmingham and London to follow in later phases.

The airline’s return is expected to ease travel for the Pakistani diaspora, strengthen trade links and boost revenues.

Britain is Pakistan’s third-largest trading partner, with bilateral commerce worth about £4.7 billion ($5.7 billion) annually.

The Pakistan government, which has repeatedly bailed out the loss-making carrier, is pushing ahead with its privatization as part of a broader plan to reduce losses at state-owned firms under a $7 billion International Monetary Fund (IMF) loan program.

PIA has accumulated more than $2.5 billion in losses over roughly a decade, draining public finances.

The European Union Aviation Safety Agency lifted its suspension in November 2024, allowing the airline to resume flights to Paris in January and later expand to Lahore–Paris in June.

However, PIA suspended those services in recent months to prioritize resources for the UK relaunch.


More rains, hailstorms forecast in different parts of Pakistan from Oct. 3-6

More rains, hailstorms forecast in different parts of Pakistan from Oct. 3-6
Updated 03 October 2025

More rains, hailstorms forecast in different parts of Pakistan from Oct. 3-6

More rains, hailstorms forecast in different parts of Pakistan from Oct. 3-6
  • Alert issued for Rawalpindi, Lahore, Faisalabad, Dera Ismail Khan, GB and parts of Sindh province
  • Landslides, floods, rainfall this year killed 1,037 people and injured 1,067 throughout the country

ISLAMABAD: The Pakistan Meteorological Department (PMD) on Friday warned of heavy rains and hailstorms in the capital Islamabad, central Punjab and northwestern Khyber Pakhtunkhwa (KP) province from Oct. 3 to 6, as the country reels from devastating flood losses.

Landslides, floods and rainfall this year have killed 1,037 people and injured 1,067 throughout the country from June 26 till October 1, according to Pakistan's National Disaster Management Authority.

More than 3.6 million people were also affected across 3,363 villages, with nearly 1.29 million moved to safer areas and hundreds of relief camps set up in inundated districts in Punjab, Pakistan’s agricultural heartland.

"Thunderstorm and hailstorm [are] expected in Potohar, Punjab and southern KP," the PMD said in a post on X. 

"Rain and thunderstorm in Gilgit Baltistan [are also expected] for next three days."

It added that rain and hailstorms were also expected in Rawalpindi, Lahore, Faisalabad and Dera Ismail Khan.

The PMD also said windstorms and lightning may damage mud houses, electric poles, billboards and solar panels in the lower parts of southern Sindh province.

In April, a severe hailstorm accompanied by heavy rain hit Islamabad and nearby areas, damaging vehicles and shattering house windows.

Pakistan is among the countries most vulnerable to climate change, where scientists say rising temperatures are making South Asian monsoon rains heavier and more erratic.

The seasonal downpours provide up to 80 percent of the country’s annual rainfall but also cause regular devastation.

The catastrophic 2022 floods in Pakistan submerged a third of the country, displacing 30 million people and causing losses exceeding $35 billion.
 


Cement, urea and oil stocks lift Pakistan market to new peak above 168,000

Cement, urea and oil stocks lift Pakistan market to new peak above 168,000
Updated 03 October 2025

Cement, urea and oil stocks lift Pakistan market to new peak above 168,000

Cement, urea and oil stocks lift Pakistan market to new peak above 168,000
  • KSE-100 index shot up by 0.3 percent, or 500.45 points, to close at 168,995.74
  • Pakistan’s cement sector posted a 16.2 percent increase in the third quarter of 2025

ISLAMABAD: The Pakistan Stock Exchange (PSX) breached the 168,000 mark on Friday, hitting a record high, with analysts attributing the gains to cement, urea and oil stocks driving the market rally.

The benchmark KSE-100 index rose by 0.3 percent, or 500.45 points, to close at 168,995.74 points as compared to the previous close of 168,489.62 points, according to the PSX data.

Ahsan Mehanti, chief executive officer of Arif Habib Commodities, said stocks hit an all-time high on speculation ahead of major earnings announcements expected next week.

“Reports of a surge in cement sales by 16 percent, urea sales by 18 percent and oil sales by six percent year on year for September 2025 [affected the market sentiment],” he told Arab News. “Repayments to Pakistan State Oil for power sector circular debt dues and rupee stability also played a catalytic role in record bullish activity at PSX.”

Pakistan’s cement sector posted a 16.2 percent increase in the third quarter of 2025 by touching 12.1 million tons, recording an increase of 1.7 million tons from the same period last year.

Domestic sales, according to All Pakistan Cement Manufacturers Association, rose by 15 percent to 9.5 million tons compared to 8.3 million tons last year while cement exports grew by 21 percent to 2.5 million tons.

Urea sales in Pakistan also rose to 816,000 tons in August, up 46 percent year-on-year and 34 percent month-on-month, according to Pakistan’s National Fertilizer Development Center.

Meanwhile, Muhammad Saad Ali, Head of Research at Lucky Investments, said strong liquidity and positive news on the geopolitical and foreign policy fronts boosted market optimism.

“But I think more recently banks have stretched the rally and today there was optimism around refinery policy and refinery sector,” he added.

“Generally, the market mood is positive, every week they pick a sector and rally that, banks have done quite well, and refineries are also in the limelight.”

Pakistan’s stock market has outperformed all other asset classes this year, repeatedly breaking record highs as strong corporate earnings, robust liquidity and improving investor sentiment drive gains.


Sindh vows action against parents refusing polio vaccination as cases rise across Pakistan

Sindh vows action against parents refusing polio vaccination as cases rise across Pakistan
Updated 03 October 2025

Sindh vows action against parents refusing polio vaccination as cases rise across Pakistan

Sindh vows action against parents refusing polio vaccination as cases rise across Pakistan
  • Authorities may block IDs, SIM cards and passports of parents turning away inoculation teams
  • Over 216,000 children in Sindh missed September vaccination, with 35,000 whose parents refused

KARACHI: The provincial administration of Sindh on Friday announced tough measures against parents refusing polio vaccination for their children, as the country grapples with a rising number of cases of the crippling disease.

Last month, the National Institute of Health confirmed two poliovirus cases in the province, raising the nationwide tally to 29 this year. Pakistan remains one of the two countries, alongside Afghanistan, where polio is still endemic.

Efforts to eradicate the virus have been undermined by parental refusals, misinformation and militant attacks on vaccination workers. In some areas, inoculation teams operate under police protection, but security personnel have also been targeted and killed.

“I have no other option but to penalize those who shirk their national responsibility of eradicating polio,” Shah Chief Minister Murad Ali Shah told officials at a meeting in Karachi, according to a statement circulated by his office. “This responsibility begins at home and affects the entire province and the country.”

The statement said Shah’s administration was considering blocking national identity cards, mobile SIM cards and passports of parents refusing vaccination to deny them travel and communication privileges.

The chief minister also ordered the establishment of a polio refusal cell, directing the health authorities to provide detailed data on refusing parents at the union council level so refusals can be countered through social, political and administrative channels.

He also instructed that vaccination be ensured in all such households.

Shah asked the provincial chief secretary to prepare a plan to block IDs, SIMs and passports, adding that the forthcoming Oct. 13 vaccination campaign should be run like a “war strategy” and warning that negligence would not be tolerated.

Some health and administrative officials have already been removed for poor performance, he said, and more could follow.

Polio is a highly infectious and incurable disease that can cause lifelong paralysis. The only protection is repeated doses of the Oral Polio Vaccine for every child under five, alongside routine immunizations.

Pakistan recorded 74 cases in 2024, up from six in 2023 and just one in 2021.

The official statement said Sindh had reported nine cases so far this year, with many of the infections, particularly in Karachi and Malir, linked to parental refusals.

Environmental samples from several Karachi neighborhoods have also tested positive for the virus.

During the September campaign, over 216,000 children in the province missed vaccination, including 35,000 whose parents refused.
 


Thousands rally in Pakistan amid global protests over Israel’s interception of Gaza aid flotilla

Thousands rally in Pakistan amid global protests over Israel’s interception of Gaza aid flotilla
Updated 03 October 2025

Thousands rally in Pakistan amid global protests over Israel’s interception of Gaza aid flotilla

Thousands rally in Pakistan amid global protests over Israel’s interception of Gaza aid flotilla
  • Protests were held after Friday prayers across Pakistan on the call of a religio-political party
  • The flotilla was an attempt to breach Israel’s siege of Gaza, where millions are facing hunger

KARACHI: Thousands of people staged pro-Palestine demonstrations after the Friday prayer congregations across Pakistan, joining global protests against Israel’s seizure of an aid flotilla with high-profile international rights activists and a former Pakistani senator attempting to breach the blockade of Gaza.

The rallies were held on the call of a prominent religio-political party, Jamaat-e-Islami (JI) over the interception of the Global Sumud Flotilla, which set sail in late August and was transporting medicine and food to the besieged Palestinians in Gaza.

The convoy consisted of more than 40 civilian vessels with about 500 parliamentarians, lawyers and activists and was intercepted on Wednesday by Israeli forces. Organizers said the flotilla aimed to highlight what the United Nations has described as “famine conditions” in Gaza after nearly two years of war.

“All the nations in the world should raise their collective voice against Israel’s atrocities,” Monem Zafar Khan, the JI chief in Karachi, said while addressing a demonstration outside a mosque in Karachi.

“The blockade of Gaza is a crime against humanity and those trying to break it should be supported,” he added.
Gaza has faced a significant humanitarian crisis since the imposition of Israel’s blockade in March this year, which severely restricted access to food, water and medical supplies for its residents. Aid agencies and the United Nations have warned of mass starvation and rising child malnutrition in the region, home to around two million people, where only a few humanitarian trucks have been allowed in.

Israel has launched a sweeping offensive in Gaza since October 2023, killing more than 65,000 people, most of them women and children.

The JI Karachi chief also called upon the Pakistan government to secure release of his party member and ex-senator Mushtaq Ahmed Khan, who was part of the flotilla and is believed to be in Israeli’s detention.

Pakistan’s foreign office condemned Israel’s interception of the flotilla and said it was working with international partners to secure the release of its nationals. Prime Minister Shehbaz Sharif also praised their “dignified participation” in the effort to help the residents of Gaza while calling for their immediate return.

Large demonstrations were also held in other cities such as Lahore, Islamabad, Peshawar, Multan, Faisalabad and Quetta.

In Karachi, hundreds waving Palestinian flags and chanting anti-Israel slogans poured into the streets outside the mosques in various neighborhoods of the city.

Meanwhile, in Israel’s southern port of Ashdod, the country’s far-right National Security Minister Itamar Ben-Gvir was filmed visiting the site where activists were being held, accusing them of supporting “terrorism” in a video that was circulating on Friday.

In the footage, the activists are seen sitting cross-legged on the floor while Ben-Gvir stands and delivers his accusations. One person is heard shouting back “Free Palestine” but it was not immediately clear from the footage who that was.

By Friday afternoon, at least four Italian citizens were deported, Israel’s Foreign Ministry posted on X. “Israel is keen to end this procedure as quickly as possible,” the ministry said.

The developments come after protests were also reported in London, Paris, Madrid, Sydney and Buenos Aires, with demonstrators carrying banners reading “Free Gaza” and “End the Siege.”

Pakistan, which does not recognize Israel, has seen regular demonstrations since the Gaza war broke out nearly two years ago, led largely by religio-political parties.

JI has also given a call for a march in Karachi on Sunday, hoping it to be one of the largest pro-Palestinian rallies in the country this year.