Comment by Riaz Haq on May 14, 2026 at 9:48am

Pakistan Gets Low-Cost Financing in Debut Panda Bond Sale

https://www.bloomberg.com/news/articles/2026-05-14/pakistan-gets-lo...

Pakistan sold its first yuan-denominated notes in China’s onshore market, marking its cheapest foreign-currency bond offering ever.

The junk-rated country priced the 1.75 billion yuan ($258 million) of three-year panda bonds at a coupon of 2.5% Thursday, people familiar with the matter said. The bond was more than five times oversubscribed, they said, helping to drive the borrowing cost more than 500 basis points lower than Pakistan’s outstanding dollar notes, which carry an average coupon of 7.7%.

The Asian Infrastructure Investment Bank and Asian Development Bank are guaranteeing 95% of the sustainable development bond, effectively bumping the issuance up to investment-grade paper in a market that still largely prefers high-rated names.

Locking in cheaper funding costs is particularly helpful for Pakistan, which is struggling with high debt payments and relies on International Monetary Fund bailout loans. The Middle East war has exacerbated the challenges by pushing up the cost of oil, prompting Pakistan to increase interest rates recently.

The war has also boosted the appeal of Chinese assets as a relative safe haven. Lower funding costs and the internationalization of the yuan have helped fuel the popularity of panda bonds as well. Issuance of the notes totaled a record 114.4 billion yuan so far in 2026, up about 70% from a year earlier.

Comment by Riaz Haq on May 15, 2026 at 7:59am

Pakistan courts Chinese manufacturers as apparel firm targets $500 million exports | Arab News

https://www.arabnews.com/node/2643380/pakistan

Short Url

https://arab.news/43tch

• Chinese company says Pakistan project could create up to 20,000 jobs
• Commerce minister says tariff reforms underway to support export-oriented industry

KARACHI: Pakistan is seeking to attract more Chinese export-oriented manufacturing as a Chinese apparel company plans a major expansion in the country targeting up to $500 million in annual exports, according to a commerce ministry statement released on Wednesday.

The development comes as Pakistan pushes to position itself as a regional manufacturing and export hub amid shifting global supply chains and growing Chinese interest in lower-cost production bases abroad. Textile and apparel products remain Pakistan’s largest export category and a key source of foreign exchange for the cash-strapped South Asian economy.

Against this backdrop, Federal Commerce Minister Jam Kamal Khan met a Chinese business delegation from Challenge Fashion Group, led by Chairman Huwang Weiguo and Karen Chen, a senior executive associated with the group’s Pakistan operations.

According to the statement, the Chinese company is establishing a major manufacturing facility in Pakistan under international production standards, with the first phase expected to be completed later this year.

“The long-term expansion plan envisions one of the largest industrial operations of its kind, with the potential to create up to 20,000 employment opportunities and generate annual exports of approximately $400–500 million,” the ministry said, citing the Chinese delegation.

The statement said the two sides discussed investment opportunities in textiles, apparel and other sectors, as well as industrial facilitation, logistics, energy access and tariff rationalization.

“The government is actively working to improve the investment climate, simplify regulatory procedures, and facilitate foreign investors through coordinated institutional support,” the minister said, according to the statement.

He said changing global supply chains and economic conditions were creating new opportunities for countries such as Pakistan.

“Pakistan’s strategic location, industrial potential, and regional connectivity make it an increasingly attractive destination for export-oriented investment,” he said.

Pakistan has increasingly sought to attract Chinese industrial relocation under broader economic cooperation initiatives with Beijing, including projects linked to the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar infrastructure and connectivity program.

The Chinese delegation highlighted Pakistan’s “competitive workforce” and strategic geographic position linking regional and international trade routes, the statement said.

The investors also raised concerns related to specialized industrial construction materials and manufacturing inputs not currently produced locally, seeking facilitation for imports required to meet international production and safety standards.

Khan said Pakistan was undertaking a phased tariff rationalization process aimed at improving industrial competitiveness and reducing costs for manufacturers.

The meeting also reviewed land approvals, infrastructure development, utility access and reforms related to Pakistan’s Special Economic Zones, the ministry said.

Comment by Riaz Haq on May 15, 2026 at 7:45pm

Pakistan 5G Rollout Plan Revealed: 4 Phases, 100 Mbps Speeds & $700M Investment


https://www.techjuice.pk/pakistan-5g-rollout-plan-revealed-4-phases...


Pakistan is officially stepping into the 5G era. The Ministry of Information Technology and Telecommunication (MoITT) submitted the official 5G rollout plan to the National Assembly today, May 15, 2026. Consequently, operators will execute the rollout in four distinct phases. Furthermore, telecommunication companies must progressively enhance their Fiber-to-the-Site (FTTS) network ratios to support the new infrastructure.

5G Rollout Plan: A 4-Phased Approach

The MoITT has mandated a strict timeline for nationwide deployment. Telecom operators must meet specific 5G rollout obligations while expanding their fiber networks.


Faster Speeds & Enhanced Quality

The ministry has also established stricter Quality of Service (QoS) thresholds. Currently, telecom operators must drastically boost 4G data rates. The baseline requirement has jumped from 4 Mbps to 20 Mbps. Eventually, operators will push these 4G speeds to 50 Mbps.

Similarly, 5G networks will launch with a mandatory minimum data rate of 50 Mbps. Ultimately, the government targets an end-state 5G speed of 100 Mbps. These phased upgrades will significantly improve overall network performance and elevate the user experience.

Market-Driven Investments & Regulatory Support

This nationwide digital transformation relies entirely on operator-led, market-driven investments. Telecom companies will fund mandatory network deployments, capacity enhancements, and spectrum acquisitions. Meanwhile, the Universal Service Fund (USF) will continue expanding internet access to remote areas to ensure complete digital inclusion.

Foreign investors are actively backing this ecosystem. Digital Foreign Direct Investment (DFDI) 2025 has successfully secured investment commitments exceeding $700 million. This massive capital injection reflects growing international confidence in Pakistan’s tech sector.

Additionally, the MoITT is launching several regulatory reforms to support this transition. Upcoming initiatives include the MVNO Framework, a new FSS licensing regime, and updated IoT/SRD frameworks. Furthermore, the ministry will introduce spectrum sharing and reframing reforms. These targeted measures will accelerate digital innovation, optimize broadband infrastructure, and ensure a seamless rollout of next-generation connectivity across the country.

Comment by Riaz Haq on May 16, 2026 at 8:09pm

Pakistan cuts Gwadar fees, eyes transit traffic from postwar Iran

Islamabad seeks to be a hub for foreign cargo going to and from Iran

https://asia.nikkei.com/spotlight/iran-tensions/iran-war/pakistan-c...

ISLAMABAD -- Looking beyond the ongoing U.S.-Iran conflict, Pakistan has begun offering sizable incentives to foreign cargo carriers bringing goods between Iran and third countries as it repositions itself as a regional trade hub, partly by leveraging its proximity to the Middle East's second most populous nation.

Pakistan late last month issued an order permitting foreign cargo operators to transport goods through its territory to designated locations in Iran. The order specifies six routes involving three of Pakistan's main ports -- the Port of Karachi, Port Qasim and Gwadar Port -- and two border crossings with Iran in Pakistan's southwestern Balochistan province.

Junaid Anwar Chaudhry, Pakistan's maritime minister, on Monday announced a major tariff reduction at Gwadar Port aimed at attracting global cargo carriers.

"Berthing fees for container ships have been reduced by 25%," the minister said in a statement, "while port charges on international transshipment containers have been cut by 40%. [And] a one-month free storage facility has been introduced for general cargo."

These developments come with Islamabad mediating between the U.S. and Iran to end the U.S. war. Iran last weekend sent a proposal to end the war to Washington via Pakistan that U.S. President Donald Trump called "totally unacceptable."

A Pakistani official told Nikkei Asia on condition of anonymity that Pakistani ports, especially Gwadar, are ready to facilitate the loading and unloading of cargo linked to trade with Iran. "There is capacity at Pakistani ports to handle transit cargoes for Iran and earn significant revenue," the official told Nikkei Asia.

Another official said that the arrangement mirrors the long-running Afghanistan transit trade framework, which was put aside in October after border clashes broke out between Pakistan and Afghanistan.

Experts say Pakistan can capitalize on its geographic position to gain from transit trade with Iran.

"Through TIR, Pakistan can facilitate transit trade not only into Iran but also onward to Turkey, Europe, Russia, and Central Asia," Ali Asad, a trade consultant in Karachi, told Nikkei Asia, referring to Transports Internationaux Routiers, a global agreement applied to the goods transport between customs offices of departure and destination countries, allowing cargo trucks to move across countries with simplified customs procedures.

Comment by Riaz Haq on May 16, 2026 at 9:05pm

@SputnikInt

🚨🇵🇰🇷🇺 Russia supports incorporating Pakistan's Gwadar Port into the International North–South Transport Corridor -- Deputy PM

"We have long been in talks with Pakistan about connecting to the North–South Transport Corridor," Russian Deputy Prime Minister Alexey Overchuk said in response to a Sputnik question on the sidelines of the Kazan Forum

He stressed that the parties are discussing various options for connectivity between Russia and Pakistan, including railways. According to him, work on the North–South Corridor continues despite conflicts in the region, including in Iran

"Therefore, we certainly welcome such initiatives from Pakistan," Overchuk said

https://x.com/sputnikint/status/2055292617949098299?s=61&t=mgTx...


————

Historic opportunity

The May 2025 victory and the ongoing mediation in US-Iran crisis have raised Islamabad’s profile in West Asia


https://www.thenews.pk/tns/detail/1415630-historic-opportunity

Pakistan is clearly trying to carve out a middle-power role for itself—strategically positioned, militarily capable and diplomatically agile. Geography alone provides rare leverage. Gwadar Port, a deep-sea harbour on the Arabian Sea, sits at the crossroads of South Asia, Central Asia and the Middle East. For China, it is the crown jewel of the China-Pakistan Economic Corridor. For the rest of the region, it is a potential linchpin for trade and connectivity—one that could one day rival the Gulf ports.

Talking to The News on Sunday, Pakistan’s former ambassador to China and the European Union Naghmana Hashmi says Islamabad is walking a careful line between Washington, Beijing, Riyadh and Tehran. It has to avoid over-commitment to any one axis. “Recent mediation in West Asian crises shows that it is developing a knack for small-group negotiations that cut through a power gridlock.”

“The May 2025 conflict with India cemented its credentials. By effectively challenging the perception of Indian military superiority, Pakistan demonstrated credible kinetic capability.” Citing a report by the Henry Stimson Centre, she says, the strategic takeaway for outside observers was clear: Pakistan’s air defences and counter-strike capabilities were credible.

Crucially, Islamabad did not press its military advantage. “A ceasefire negotiated on May 10 allowed Pakistan to de-escalate from a position of strength rather than weakness,” she says. “The twin outcome of proven capability and strategic restraint enabled Pakistan to project itself as a regional stabiliser rather than just another nuclear-armed state. This restored a measure of international confidence in the country’s strategic relevance.”

That credibility soon translated into tangible partnerships. The Pak-Saudi Strategic Mutual Defence Agreement followed Israeli strikes on Qatar, as Gulf states realised that American guarantees and advanced air defences could prove useless against Israel. Against this backdrop, Gulf capitals wanted a partner that could deliver under pressure. “Pakistan, fresh from the May crisis, fit the brief,” says Hashmi.

As Georgetown’s F Gregory Gause has noted, the Saudi-Pakistani security relationship is decades old; what changed in 2025 was its formalisation into a binding mutual-defence framework. Other Gulf states are reportedly exploring similar arrangements. The pact’s core clause—that “any aggression against either country shall be considered an aggression against both”—is the closest thing the Gulf has to an Article 5-style commitment. And it is underwritten by the only Muslim-majority state commanding a nuclear arsenal.

Comment by Riaz Haq on May 19, 2026 at 10:52am

Pakistan’s operational PV capacity estimated a 51 GW – pv magazine International


https://www.pv-magazine.com/2026/05/19/pakistans-operational-pv-cap...

Latest report from Renewables First finds that Pakistan’s solarization continues to grow with households, farms and businesses turning to distributed solar to reduce their reliance on the grid.

MAY 19, 2026 PATRICK JOWETT

Pakistan had deployed an estimated 51 GW of solar as of March 2026, according to a new report from Renewables First, with solar module imports reaching 54 GW by the end of the same month.

The latest edition of the think tank’s flagship report, Pakistan Electricity Review 2026, finds that electrification in Pakistan is accelerating through distributed solar installations despite grid-based indicators suggesting stagnation.

Figures in the report highlight that electricity generated by utility-scale power sources in Pakistan reached 135 TWh in the period from July 2024 to June 2025, known as fiscal year 2025 (FY25), representing a 2% year-on-year decline. This is the fourth consecutive decline in reliance on utility-scale electricity generation, which peaked at 154 TWh in fiscal year 2022 (FY22).

Away from these figures, distributed solar, consisting of net-metering, behind-the-meter and off-grid solar deployment, generated 51 TWh in FY25, taking Pakistan's total electricity generation to a record 186 TWh. Renewables First’s report says the 51 TWh generated last fiscal year is equivalent to roughly 46% of grid-supplied electricity over the same time period.

Speaking during a webinar launching the report earlier today, Renewables First Associate – Energy Insights, Nabiya Imran, explained that new growth in electricity is increasingly being met by distributed solar. “It is being met outside the grid,” Imran said. “Or in other words, the demand that was first entirely on the grid has migrated to behind the meter and net metered distributed solar.”

The report adds that grid sales, defined as the electricity purchased by consumers from the state-owned central utility network, reached 111 TWh in FY25, a 1.7% increase year-on-year but down on a FY22 peak. “This does not reflect falling electricity demand,” the report explains. “Instead, a growing share of consumption is being met through distributed solar, indicating that underlying electricity use continues to rise but is increasingly bypassing the grid.”

Renewables First latest report follows previous research that highlighted the scale of Pakistan’s solar market is underrepresented in official statistics. In today’s webinar, Imran explained that there are two parallel systems currently operating in Pakistan.

“On one side, we have the centralized grid, which is structured around unidirectional power flows, thermal plants and thermal dependence. At the same time, we have consumers investing increasingly in distributed solar, driven by high electricity tariffs and cheaper solar panel costs,” Imran told attendees. “So, there's a mismatch between these two systems. The goal is to bridge that mismatch, because that will help us reduce our fossil fuel dependence and improve macroeconomic resilience.”

Comment by Riaz Haq on May 19, 2026 at 10:53am

Pakistan’s operational PV capacity estimated a 51 GW – pv magazine International


https://www.pv-magazine.com/2026/05/19/pakistans-operational-pv-cap...

Imran added that clean technologies such as solar, batteries and electric vehicles are also an opportunity to localize manufacturing. “And in turn, it supports the broader economic development of the country,” she said.

In the report’s forward, Sohaib Malik, Senior Fellow – Energy Transitions at Renewables First, wrote that while policymakers are starting to recognize the challenges facing the country’s centralized model of power generation and supply, the full extent of the shift is yet to be appreciated by most stakeholders because of the incomplete and imprecise datasets available to them.

The report adds that with distributed solar eroding utility revenues faster than thermal capacity can be rationalized, the sector is moving towards an inflection point with insufficient policy frameworks to navigate it.”

“The sector’s inflection point will depend on how quickly planning and policy frameworks adapt to decentralized, bi-directional electricity flows,” the report says. “A shift in focus from capacity expansion to system optimization (flexibility, storage and demand side management) will be critical to improving efficiency and reducing costs.”

Comment by Riaz Haq on May 22, 2026 at 12:14pm

Pakistan Looks to Host Crude Reserve Sites of Gulf Oil Producers


https://oilprice.com/Latest-Energy-News/World-News/Pakistan-Looks-t...


Pakistan is encouraging oil producers from the Persian Gulf to set up crude reserve buffers at a planned Energy City near one of its ports, The Express Tribune reported on Friday.

"In case of emergencies like the breakout of war, Pakistan will have the first right to utilise the oil reserves," a Pakistani official told the publication.

Pakistan, which doesn't have crude reserves at present to act as a buffer in case of emergencies, has been reeling from the Middle East crisis and negotiating with Iran to secure the passage of cargoes through the Strait of Hormuz.

Pakistan plans to set up a so-called Energy City at the Gwadar Port, and Kuwait has already expressed interest in building up crude reserves there, according to The Express Tribune.

Pakistan "plans to set up an Energy City where strategic oil reserves will be built along with establishing LNG and LPG terminals," the official told the outlet.

Pakistan's Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, has asked Kuwaiti officials to explore crude, LPG, and LNG storage sites with the potential creation of rental-based bonded storage facilities, which could support regional trade flows and improve the supply-chain efficiency of energy trade.

Pakistan – which has been mediating U.S.-Iran talks in recent weeks – has been negotiating to have Qatari LNG moved out of the Persian Gulf for the first time since the war began.

Pakistan has relied on Qatar’s term LNG supply for years, but the war in the Middle East and the closure of the Strait of Hormuz have led to the shutdown of Qatari LNG production and exports.

Without Qatar’s LNG, Pakistan has been reeling from an intensifying energy crisis with power outages and fuel rationing.

Thanks to a bilateral Pakistan-Iran agreement, two vessels carrying Qatari LNG are now en route to Pakistan after successfully passing through the Strait of Hormuz in recent days.

Comment by Riaz Haq yesterday

Pakistan Outlines 4% Growth Target for Next Fiscal Year - Bloomberg

https://www.bloomberg.com/news/articles/2026-06-01/pakistan-outline...

Pakistan aims to grow at a slightly faster pace in the financial year starting July even as the crude price shock from the Middle East war clouds the outlook for the nation, which continues to rely on support from the International Monetary Fund.

The country is aiming for 4% gross domestic product growth in the next fiscal, according to a working paper shared by the Ministry of Planning at a news briefing in Islamabad. 

“The target is realistic and plausible as we see better growth in agriculture and industry,” said Waqas Ghani, head of research at Karachi-based JS Global Capital Ltd.

The country targeted 4.2% growth in the current year ending June, but it usually misses its growth target. Pakistan expects inflation to average 8.2% next year. 

The South Asian nation is currently implementing an IMF program, which compels fiscal discipline that restricts high growth. Since the Iran war began, the blockade of the Strait of Hormuz — a key bottleneck for global energy flows — has increased uncertainty for countries like Pakistan that import most of their fuel.

The ministry’s proposed targets for the next financial year will have to be approved by the prime minister and parliament. The country’s budget for fiscal 2027 will be announced later this week.

The government also proposes to allocate 1.1 trillion rupees ($3.95 billion) for development projects next fiscal compared with an outlay of 1 trillion rupees in the current year. The spending, a key driver of economic growth, is not fully utilized—only 56% has been spent so far this fiscal.

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