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China’s top diplomat to visit Pakistan on Thursday for strategic dialogue amid regional tensions

China’s top diplomat to visit Pakistan on Thursday for strategic dialogue amid regional tensions
Pakistan's Deputy Prime Minister, Ishaq Dar (left) talking with China's Foreign Minister, Wang Xi at the 58th ASEAN Foreign Ministers' meeting in Kuala Lumpur, Malaysia, on July 11, 2025. (AFP/File)
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China’s top diplomat to visit Pakistan on Thursday for strategic dialogue amid regional tensions

China’s top diplomat to visit Pakistan on Thursday for strategic dialogue amid regional tensions
  • Wang Yi to co-chair strategic dialogue after reported Chinese support for Islamabad during India-Pakistan standoff
  • Pakistan and China held arms control talks in Beijing a day earlier, focusing on regional security, strategic stability

ISLAMABAD: Chinese Foreign Minister Wang Yi will visit Islamabad on Thursday for the sixth Pakistan-China Foreign Ministers’ Strategic Dialogue to explore ways of further deepening the bilateral strategic partnership, the foreign office in Islamabad said in a statement on Tuesday.

The two allies have a longstanding relationship encompassing the China-Pakistan Economic Corridor (CPEC), close defense and security ties and frequent diplomatic coordination. The visit comes just months after a brief but intense military standoff between India and Pakistan in May, during which Islamabad deployed Chinese-made fighter jets and missiles. India alleged that Beijing had actively supported Pakistan’s military response.

Institutionalized in 2017, the Foreign Ministers’ Strategic Dialogue provides a platform for high-level engagement on regional developments, reaffirmation of shared interests and coordination on multilateral issues.

“On the invitation of Deputy Prime Minister and Foreign Minister, H.E. Senator Mohammad Ishaq Dar, member of the Politburo of the Communist Party of China and Foreign Minister, H.E. Mr. Wang Yi is visiting Islamabad for co-chairing the 6th Pakistan-China Foreign Ministers’ Strategic Dialogue on August 21, 2025,” the foreign office said.

“The visit is part of the regular high-level exchanges between Pakistan and China to further deepen their ‘All-Weather Strategic Cooperative Partnership,’ reaffirm support on the issues of respective core interests, enhance economic and trade cooperation, and reaffirm their joint commitment to regional peace, development and stability,” it added.

The announcement comes just a day after Pakistan and China held bilateral consultations on arms control, non-proliferation and disarmament in Beijing.

According to a separate statement, the foreign office said the two sides engaged in a comprehensive exchange of views on issues related to global and regional peace and security.

“They also reviewed the situation in South Asia, with particular emphasis on the challenges to security and strategic stability,” it added.

Wang is currently in India, where he arrived on Monday and is expected to hold talks with Prime Minister Narendra Modi and National Security Adviser Ajit Doval on the disputed Himalayan border.

The two countries have witnessed military tensions along the Line of Actual Control in Ladakh since 2020. Media reports suggest discussions may focus on reducing troop deployments and partially resuming cross-border trade.

|The regional diplomacy comes amid growing friction between New Delhi and Washington, after US President Donald Trump imposed steep tariffs on India. Seen as a strategic counterweight to China, India is also part of the Quad security alliance with the United States, Australia and Japan.


Fitch says Pakistan’s banks to gain from improving economic outlook

Fitch says Pakistan’s banks to gain from improving economic outlook
Updated 19 August 2025

Fitch says Pakistan’s banks to gain from improving economic outlook

Fitch says Pakistan’s banks to gain from improving economic outlook
  • Ratings agency cites easing inflation, stronger growth, currency stability
  • Notes risks remain tied to sovereign credit profile and pace of reforms

ISLAMABAD: Pakistan’s banks are set to benefit from better opportunities to generate business volumes due to improving operating conditions amid receding macroeconomic headwinds, Fitch Ratings said in its latest report. 

Pakistan’s economy has shown signs of stabilization in recent months after securing a $7 billion International Monetary Fund (IMF) bailout program in September 2024, which helped restore investor confidence. Ratings agencies have since upgraded the country’s sovereign credit profile, citing fiscal reforms, lower inflation, and easing external pressures.

“Pakistan’s banks are set to benefit from better opportunities to generate business volumes due to improving operating conditions amid receding macroeconomic headwinds,” Fitch Ratings said, adding that the view was reinforced by the country’s improved sovereign credit profile following its upgrade of Pakistan’s Long-Term Issuer Default Rating to ‘B-’/Stable from ‘CCC+’ in April 2025.

Fitch said Pakistan’s economic recovery comes after “a period of significant turmoil and high inflation,” with real GDP growth expected to accelerate to 3.5 percent by 2027 from 2.5 percent in 2024.

“Consumer price inflation eased to 4.1 percent in July 2025 from its peak of 38 percent in May 2023, and we expect it to average around 5 percent in 2025,” the ratings agency noted.

The statement pointed to monetary easing and currency stability as drivers of recovery:

“The halving of the policy rate since May 2024 to 11 percent and a stabilizing external position, evident in lower currency volatility and current account surpluses, should support this recovery.”

Fitch said that while lower rates and a steadier macroeconomic environment should stimulate private credit demand and reduce banks’ dependence on lending to the public sector, risks remain.

“The banks’ intrinsic creditworthiness will likely remain closely linked to the sovereign and the pace of economic reform in the near term given their significant holdings of sovereign securities and loan exposures to state-linked entities.”

Pakistani banks have posted resilient results despite recent challenges, the agency added.

“The sector’s impaired loan ratio improved to 7.1 percent by March 2025 from 7.6 percent at end-2023, driven by strong loan growth of 26 percent amid high inflation.”

Return on average equity has “normalized to 20 percent in 1Q25, from around 27 percent in 2023,” while capital adequacy reached “a decade-high of 21 percent by March 2025.”

Fitch said that most large Pakistani banks “are well-positioned to navigate the transition to a more normalized operating environment of lower interest rates, although structural challenges persist.”


Pakistan continues to dispatch relief goods to flood-hit northwestern districts as over 340 killed 

Pakistan continues to dispatch relief goods to flood-hit northwestern districts as over 340 killed 
Updated 19 August 2025

Pakistan continues to dispatch relief goods to flood-hit northwestern districts as over 340 killed 

Pakistan continues to dispatch relief goods to flood-hit northwestern districts as over 340 killed 
  • Hundreds have died and been injured in the northwestern Khyber Pakhtunkhwa province in latest spell of rains that started last week
  • NDMA says consignments sent to Swat, Shangla, relief operations underway in coordination with military and aid groups

ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Tuesday said it had dispatched relief goods to flood-affected districts of Khyber Pakhtunkhwa province as monsoon rains continue to wreak havoc in the north of the country.

Since late June, heavy monsoon rains have killed nearly 670 people across Pakistan, damaged infrastructure, and triggered flash floods and landslides in the country’s mountainous north, according to official data. At least 341 people have died in the northwestern KP province in the latest spell of rains that started late last week.

“NDMA’s dispatch of relief goods for flood-affected areas of Khyber Pakhtunkhwa is continuing,” the authority said in a statement. “This morning, two separate consignments were sent for Swat and Shangla.”

The consignments include tents, blankets, generators, dewatering pumps, ration bags and medicines, the NDMA said, adding that the goods would be handed over to the respective district administrations for distribution among affected people.

The agency said it was working with the armed forces and welfare organizations to ensure timely delivery of relief supplies to flood-hit areas of Khyber Pakhtunkhwa and Gilgit-Baltistan.

“NDMA is in constant contact with all concerned civil and military institutions,” the statement said, adding that operations were being “continuously monitored.”

Changing climate has made residents of northern Pakistan’s river-carved mountainous areas more vulnerable to sudden, heavy rains.

More than 150 people were still missing in the district of Buner in Khyber Pakhtunkhwa province after Friday’s flash floods.

The NDMA issued an alert for further flooding after new rains began Sunday in many parts of the country.


Over 150 people are still missing after devastating flooding in northwest Pakistan

Over 150 people are still missing after devastating flooding in northwest Pakistan
Updated 19 August 2025

Over 150 people are still missing after devastating flooding in northwest Pakistan

Over 150 people are still missing after devastating flooding in northwest Pakistan
  • Government has said the sudden downpours were so intense that the deluge struck before residents could be warned
  • Higher-than-normal monsoon rains since June 26 have killed at least 645 people across Pakistan, with 400 deaths in northwest

PESHAWAR, Pakistan: Anguished Pakistanis searched remote areas for bodies swept away by weekend flash floods as the death toll reached 277 on Monday, while one official replied to the lack of evacuation warnings by saying people should have built homes elsewhere.

A changing climate has made residents of northern Pakistan’s river-carved mountainous areas more vulnerable to sudden, heavy rains.

More than 150 people were still missing in the district of Buner in Khyber Pakhtunkhwa province after Friday’s flash floods.

Villagers have said there had been no warning broadcast from mosque loudspeakers, a traditional method for alerting emergencies in remote areas. The government has said the sudden downpour was so intense that the deluge struck before residents could be informed.

Emergency services spokesman Mohammad Suhail said three bodies were found on Monday. The army has deployed engineers and heavy machinery to clear the rubble.

On Sunday, provincial chief minister Ali Amin Gandapur said many deaths could have been avoided if residents had not built homes along waterways. He said the government would encourage displaced families to relocate to safer areas, where they would be assisted in rebuilding homes.

Residents said they were not living near streams, yet the flood swept through their homes. In Buner’s Malak Pur village, Ikram Ullah, aged 55, said people’s ancestral homes were destroyed even though they were not near the stream, which emerged in the area because of the flood. He said large boulders rolled down from mountains with the flood.

In flood-hit Pir Baba village, Shaukat Ali, 57, a shopkeeper whose grocery store was swept away, said his business was not near a river or stream but had stood for years alongside hundreds of other shops in the bazar. “We feel hurt when someone says we suffered because of living along the waterways,” Ali told The Associated Press.

Pakistan has seen higher-than-normal monsoon rains since June 26 that have killed at least 645 people across the country, with 400 deaths in the northwest. The National Disaster Management Authority issued an alert for further flooding after new rains began Sunday in many parts of the country.

In a statement, the military said the Pakistan Air Force played a key role in flood relief operations by airlifting 48 tons of NGO-provided relief goods from the port of Karachi to Peshawar, the regional capital. It said the air force established an air bridge to ensure the swift delivery of supplies.

On Monday, torrential rains triggered a flash flood that struck Darori village in northwestern Swabi district, killing 15 people, government official Awais Babar said.

He said rescuers evacuated nearly 100 people, mostly women and children, who had taken refuge on the roofs of homes. Disaster management officials said the floods inundated streets in other districts in the northwest and in Pakistan-administered Kashmir.

Prime Minister Shehbaz Sharif chaired a high-level meeting Monday to review relief efforts in flood-hit areas of Khyber Pakhtunkhwa as well as northern Gilgit-Baltistan and Pakistan-administered Kashmir.

At the meeting, officials estimated flood-related damages to public and private property at more than 126 million rupees ($450,000), according to a government statement.

The UN humanitarian agency said it had mobilized groups in hard-hit areas where damaged roads and communication lines have cut off communities. Relief agencies were providing food, water and other aid.

Flooding has also hit India-administered Kashmir, where at least 67 people were killed and dozens remain missing after flash floods swept through the region during an annual Hindu pilgrimage last week.

In 2022, catastrophic floods linked to climate change killed nearly 1,700 people in Pakistan and left hundreds of thousands homeless.


Foodpanda to double Pakistan operations in three years, eyes $2 billion economic activity

Foodpanda to double Pakistan operations in three years, eyes $2 billion economic activity
Updated 19 August 2025

Foodpanda to double Pakistan operations in three years, eyes $2 billion economic activity

Foodpanda to double Pakistan operations in three years, eyes $2 billion economic activity
  • Platform targets growth from 6 million to 12 million households amid booming e-commerce
  • CEO cites macroeconomic conditions, government policies, young population as growth drivers

KARACHI: Food and grocery delivery service foodpanda Pakistan plans to double its operations in the country within the next three years, aiming to expand from six million to as many as 12 million households and generate $2 billion in economic activity this fiscal year, CEO Muntaqa Peracha has said.

Foodpanda is a subsidiary of Berlin-based Delivery Hero, which operates in more than 70 countries. The company generated $1.2 billion in economic activity in FY24 and now connects millions of users in 35 Pakistani cities with restaurants, home chefs, and its own pandamart grocery stores. It employs thousands of freelance riders and handles up to 20 percent of the total food business for its restaurant partners.

“Now that we’re at that point and the economy looks relatively stable we’re hoping to further accelerate that to get to a point of doubling our business over the next, you know, 24 to 36 months,” Peracha told Arab News in a recent interview.

Pakistan, with a population of over 240 million and mobile penetration exceeding 80 percent, has seen rapid expansion in digital commerce. The country’s e-commerce market — projected by Statista to grow at over 8 percent annually for the next five years — is driven by a tech-savvy youth demographic and increasing female participation. The online food delivery segment alone is expected to generate $2.35 billion in revenue by December 2025, while grocery delivery is projected to expand by 19 percent in 2026, according to Statista.

Pakistan’s food and grocery delivery space remains underpenetrated relative to regional peers, presenting opportunities for scale.

Peracha said foodpanda would grow its pandamart grocery network from seven to 12 cities over the next year, expand its “shops” vertical to onboard more local retailers, and open six to eight new kitchens. The platform also plans to deepen coverage in existing cities before scaling to Pakistan’s top 50 urban centers.

“We’re looking to expand our categories within the cities that we operate in right now,” he said. “That means more pandamarts opening up, more shops coming online, more restaurants being contracted, more home chefs working with us.”

While the outlook is optimistic, foodpanda faces operational hurdles, including political rallies, road blockades, heavy rains, and prolonged Internet shutdowns. Pakistan was the most affected nation by Internet outages in 2024, with $1.62 billion in economic losses, according to Top10VPN.com.

“If it’s an elongated nationwide blackout… the whole day’s business can be impacted by 30, 40, 50 percent,” Peracha said, noting the impact on rider earnings.

The company counters such disruptions by opening Wi-Fi access at pandamarts, kitchens, and hubs to keep orders moving.

Peracha said foodpanda has also automated demand planning and order allocation using AI and engineering teams in Singapore and Berlin to optimize rider logistics and delivery routes.

When asked about plans to go public, Peracha said any such decision would depend on its parent company Delivery Hero and market conditions.

“If… it makes a business sense, we will see at that point in time,” he said.

Ahsan Mehanti, CEO at Arif Habib Commodities, said favorable government policies about Small and Medium Enterprises (SMEs) were attracting foreign investors toward Pakistan.

“This is the time, like foreign institutions are focusing toward Pakistan market, and the reason behind that is the profitability that they see in Pakistan, especially for SMEs,” the analyst told Arab News.

He said foodpanda did not have many competitors, but would need to invest more money to take its services to Pakistan’s young, growing population.

“It’s a very positive development that foodpanda is expanding and the development especially at this time when the rupee stability is apparently there and we are not expecting rupee to fall.”

Consumers have welcomed foodpanda’s expansion plans but also want improvement in its services.

“We should welcome them because their service is good while the charges they take are also affordable,” said Karachi-based policewoman Sadia Muhammad Bilal.

foodpanda regular Muhammad Safeer Malik also said the platform should improve services to stay competitive.

“If foodpanda wants to promote its business in Pakistan, it will need to add new services that could benefit the customers… they could get discounts and the services… improved further,” he said.

Other customers complained of delays, hidden charges, and inconsistent rider performance.

“Foodpanda is good but when we have events like August 14 and Eid their service slows down and they make deliveries very late, by as much 30 to 45 minutes,” said Zara Yousuf, an accountant at a private firm.

She urged the company to improve its home service model to better support women entrepreneurs who want to start food businesses from home.

Munesh Kumar, an IT expert at a major commercial bank, said he often observed hidden charges in bills.

“They show certain amount of charges initially but sometime hidden charges show up later,” he said.

Kumar said foodpanda should also improve service during emergencies like rains and Internet blackouts: “The food you order will reach you but late.”

Muhammad Zain, 16, said rider training was also needed.

“Sometime their riders make mistakes,” he said, “like they won’t come on time or mistakenly deliver a wrong order.”


Pakistan launches AI ‘techathon’ to empower young innovators, build future economy

Pakistan launches AI ‘techathon’ to empower young innovators, build future economy
Updated 19 August 2025

Pakistan launches AI ‘techathon’ to empower young innovators, build future economy

Pakistan launches AI ‘techathon’ to empower young innovators, build future economy
  • The development came days after Pakistan announced its first National Artificial Intelligence Policy
  • Minister says Pakistan plans to move toward a trillion-dollar economy by 2035 through such initiatives

ISLAMABAD: Pakistan on Monday launched an artificial intelligence (AI) ‘techathon’ that aims to empower young innovators to build the country’s future economy, a government statement said.

A techathon, also called a hackathon or codefest, is an event where people, typically programmers and tech professionals, collaborate intensively on software projects for community building and innovation.

The launch of ‘Uraan AI Techathon 1.0’ in Islamabad brought together Pakistan’s brightest minds to harness the power of AI for national development, marking a significant milestone in the country’s digital journey, according to Pakistan’s Press Information Department (PID).

Planning Minister Ahsan Iqbal described the techathon, part of the Uraan Pakistan national transformation initiative, as a “national call” to challenge, inspire and mobilize Pakistani students, developers, thinkers and entrepreneurs to use AI to solve real problems.

“Its objective is to mobilize Pakistan’s youth and professionals to solve real-world challenges through AI, build national capacity in Artificial Intelligence and Machine Learning, and enhance Pakistan’s global visibility in emerging technologies,” Iqbal said at the launch.

The development came days after Pakistan announced its first National Artificial Intelligence Policy, a wide-ranging plan to develop AI infrastructure, train one million people in related skills and ensure responsible, ethical use of the technology in line with global standards.

The policy is designed to transform the country into a “knowledge-based economy” through investment in research, innovation and skills, while safeguarding personal data and human rights, according to the IT and telecom ministry. It lays out a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure and international partnerships.

Speaking at Monday’s event in Islamabad, the planning minister announced the launch of a dedicated online portal for the techathon to serve as a central hub for registrations, communication, updates, resources and event coordination, stressing inclusive participation especially from underserved and remote regions.

He noted that AI is “no longer the future but the present,” reshaping health, education, agriculture, industry and governance around the world.

“Decisions that shape economies today are increasingly driven by algorithms,” Iqbal said. “Pakistan will not remain a spectator in the AI revolution but will emerge as a rising leader.”

Speaking about the government’s priorities, the minister said it was focused on leveraging AI to bring innovative solutions to health, education, agriculture and other sectors, and building the national capacity through training, mentorship and the establishment of Centers of Excellence.

He said Pakistan’s youth possess the same passion and energy that fuels the world’s leading technology hubs and urged young innovators to step forward, experiment and prove that their ideas, vision and creativity are second to none globally, underlining the role of local startups, universities, and technology parks in building a robust AI ecosystem.

“Through initiatives like the URAAN AI Techathon 1.0, we are not only nurturing innovation but also preparing Pakistan to move toward a trillion-dollar economy by 2035,” Iqbal added.