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  • IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg

IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg

IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg
The International Monetary Fund headquarters building is seen during the IMF/World Bank spring meetings in Washington, US, April 21, 2017. (REUTERS/File)
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Updated 11 October 2024

IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg

IMF demand on special economic zones to dissuade China investments in Pakistan — Bloomberg
  • IMF has asked Pakistan to refrain from providing incentives such as tax breaks and subsidies to any new or existing SEZs
  • Pakistan has been wooing investors through special tax incentives, including exemptions on taxes and customs duties 
Updated 11 October 2024
Arab News Pakistan

ISLAMABAD: The International Monetary Fund has asked Pakistan to stop setting up any industrial zones that offer incentives for investment, Bloomberg reported on Friday, a dictate that could undermine Islamabad’s efforts to attract more Chinese industries into the South Asian country.
The IMF’s condition comes as part of the approval of a new $7 billion bailout package last month and as Prime Minister Shehbaz Sharif tries to convince Chinese companies to shift more industries into Pakistan to give fresh momentum to projects under its Belt and Road Initiative. The country had planned to build at least nine special economic zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) project that are at various stages of development.
“The authorities will refrain from providing incentives such as tax breaks and subsidies to any new or existing special economic zones,” Bloomberg reported, quoting an IMF report from Oct. 10. “This will help provide a level playing field for investment.”
The lender has asked Pakistan to offer a level playing field to businesses to attract investments without undermining the country’s tax base, according to Nathan Porter, IMF’s mission chief for Pakistan. 
The country has provided protection or concessions to sectors that were low in productivity, he said in a briefing last month, which was why Pakistan hadn’t been able to achieve the kind of sustainable growth rates many of its regional peers have.
“The demand from IMF is expected to immediately hit a new export processing zone that the government plans to build at the site of Pakistan Steel Mills in Karachi, Pakistan’s commercial capital,” Bloomberg said. 
Pakistan authorities, after securing the 37-month loan from the IMF in September, are working to invite about 100 major Chinese industries to invest in the textile parks that Ruyi Shandong Group will start building in its southern Sindh and central Punjab provinces later this year. 
The Sharif government has been wooing investors through offering special tax incentives, including exemptions from paying taxes and customs duties on imported goods, to businesses set up in such industrial zones.
China has built major infrastructure and energy projects in Pakistan to push its flagship CPEC corridor project that has helped the nation but left it burdened by huge debts.

Topics: Pakistan IMF Talks

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project
Updated 57 min 5 sec ago
Reuters

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project

Barrick CEO Mark Bristow steps down raising questions over future of Pakistan’s Reko Diq project
  • Bristow indicated in May he would stay in his current role until 2028, a timeline that would have allowed him to oversee Reko Diq’s development
  • His biggest test came this year when Barrick’s mine in Mali, Africa was taken over by the military government over alleged non-payment of taxes
Updated 57 min 5 sec ago
Reuters

Barrick Mining appointed veteran executive Mark Hill as interim president and CEO on Monday following the sudden resignation of Mark Bristow, who led the Canadian miner for nearly seven years after its merger with Randgold Resources.

Bristow, who became CEO in 2019 when Barrick acquired Randgold, oversaw the integration of the two companies and steered the miner through a period of significant portfolio reshaping and debt reduction.

“Disappointed to see him leave, he has been a fine leader,” said Peter Letko, of the Letko Brosseau investment fund, one of Barrick’s shareholders.

Bristow indicated in May he would stay in his current role until 2028, a timeline that would have allowed him to oversee the development of the company’s Reko Diq copper and gold project in Pakistan.

The announcement was therefore “surprising,” analysts at Citi said in a note.

“One question is whether this will lead to bigger changes at Barrick,” they said. “A new CEO could bring a new strategy in Mali, at Reko Diq or for the portfolio.”

Hill, who will also continue to serve as group chief operating officer, takes charge immediately as the board begins a global search for a permanent chief executive with the help of an external firm, named by one source as Egon Zehnder.

The board has been looking at succession planning for some time, driven, according to one source with knowledge of the matter, by the business’s relative underperformance compared to competitors over the past five years.

Shares in Barrick, which owns 13 mining assets across Africa, Asia, Latin America, and North America, have lagged some rivals, rising by 37 percent since 2020 compared to a 110 percent climb in shares of fellow Canadian miner Agnico Eagle, with gold prices hitting record highs.

US-listed shares of Barrick were marginally higher in premarket trading on Monday.

MALI, REKO DIQ AMONG CHALLENGES FOR NEW CEO

The company will consider both internal and external candidates, the source said, adding it was not clear if Hill would put himself forward as permanent CEO.

Bristow’s last public appearance was earlier this month at the Denver Gold Conference, where he addressed a packed room of investors about Barrick’s future plans.

Known for his mercurial leadership style, his tenure at Barrick was focused on integrating tough assets that Barrick owned in some of the volatile regions of the world.

But his biggest test came this year when Barrick’s mine in Mali, one of its biggest gold assets in Africa, was taken over by the military government over alleged non-payment of taxes. Barrick had to write off $1 billion from its books over the dispute.

Resolving that dispute will be among the key challenges for Bristow’s successor, along with the development of Nevada gold project Fourmile and its integration with Nevada Gold Mines joint venture with Newmont, and work on Reko Diq, said Martin Pradier of Veritas Investment Research.

Topics: Barrick Gold Reko Diq mining project Reko Diq

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war
Updated 29 September 2025

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump’s Gaza plan, says his leadership vital to ending war
  • Trump presented the peace plan for Gaza during his meeting with leaders of Pakistan, and other Muslim states last week
  • PM Shehbaz Sharif says he strongly believes the implementation of a two-state proposal is essential to ensure lasting peace in region
Updated 29 September 2025
SAIMA SHABBIR

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday backed President Donald Trump’s 20-point plan to end Israel’s war on Gaza, praising his leadership for efforts to bring an end to the nearly two-year-old Israeli onslaught.

Trump presented the peace plan for Gaza and the Middle East during his meeting with leaders of Pakistan, , United Arab Emirates, Turkiye, Indonesia and other Muslim states last week on the sidelines of the United Nations General Assembly (UNGA) session.

The meeting came in the backdrop of Israel’s ramping up of its military operations in Gaza, where it has killed over 65,000 people since October 2023, as well as Israeli attacks against other regional states, with Muslim nations demanding the world hold Tel Aviv accountable.

In a post on X, Sharif, whose country does not recognize Israel and calls for an independent Palestinian state with pre-1967 borders, welcomed the US president’s 20-point plan to ensure an end to the war in Gaza.

“I am also convinced that durable peace between the Palestinian people and Israel would be essential in bringing political stability and economic growth to the region,” the Pakistan premier said.

“It is also my firm belief that President Trump is fully prepared to assist in whatever way necessary to make this extremely important and urgent understanding to become a reality.”

Sharif has gained favor with Trump since publicly endorsing the US president for a Nobel Peace Prize over his role in brokering a ceasefire in a four-day Pakistan-India military standoff in May. Unlike Sharif, PM Narendra Modi has declined to indulge Trump’s attempt to claim credit for the truce.

On Sept. 25, the Pakistani premier and Army Chief Field Marshal Asim Munir met Trump at the White House, in a high-level engagement aimed at resetting relations between the two countries and expanding cooperation on security, trade and regional peace.

On Sunday, Trump expressed optimism about reaching a deal to end the war in Gaza, saying there is “a real chance for greatness in the Middle East.”

“I laud President Trump’s leadership and the vital role played by Special Envoy Steve Witkoff in bringing an end to this war,” Sharif said in his X post on Monday.

“I also strongly believe that the implementation of the two-state proposal is essential to ensure lasting peace in the region.”

Topics: Pakistan US Ties Trump's Gaza plan Pakistan Prime Minister Shehbaz Sharif

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion
Updated 29 September 2025

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government’s flood damage estimates top $1.3 billion
  • Preliminary assessment says agriculture sector suffered $546 million in losses from floods
  • Experts warn unplanned relief spending could worsen fiscal pressures under IMF program
Updated 29 September 2025
Waseem Abbasi

ISLAMABAD: Pakistan has slashed its annual gross domestic product (GDP) growth forecast to 3.9 percent from an earlier target of 4.2 percent as devastating monsoon floods this year caused an estimated $1.3 billion (Rs371 billion) in damage, according to a preliminary government assessment seen by Arab News.

The revised outlook highlights how recurring climate disasters are undermining Pakistan’s fragile economic recovery, even as it implements structural reforms under a $7 billion International Monetary Fund (IMF) program. Monsoon rains and floods have killed over 1,000 people, affected more than 4.5 million since June 26, and submerged millions of acres of farmland and standing crops, according to disaster management authorities.

The damage estimates currently reflect losses only from Punjab province, and assessments in Sindh and other regions are still underway, suggesting the final toll could be significantly higher. The agriculture sector — which underpins food security and exports — is the hardest hit, suffering $546 million (Rs155 billion) in losses, with projected growth slowing from 4.5 percent to 4 percent, according to the government’s early report of damages. 

Crop production has borne the brunt of the loss, with key staples such as wheat, rice and cotton expected to see growth decline from 6.7 percent to 4.5 percent. The industrial sector is projected to sustain more modest losses of $105 million (Rs29.9 billion), with growth revised slightly downward from 4.3 percent to 4.2 percent, while the services sector faces losses of $652 million (Rs186 billion). The transport and storage sector incurred $259 million (Rs74 billion) in damages, and the information and communication sector will contract from 5.0 percent to 4.3 percent, losing $51 million (Rs14.5 billion). Education and health sectors have incurred combined losses of about $19 million (Rs5.6 billion).

Economic experts have urged the government to avoid “unplanned expenditures” for relief after the latest disaster that follows the 2022 cataclysmic deluges, which killed more than 1,700 people, affected 33 million and caused an estimated $30 billion in losses.

“In response to Pakistan’s appeal [for international assistance] after devastating 2022 floods, funds to the tune of $10.98 billion were committed, but apart from the Saudi oil facility and deferred payment relief, only 25 percent of the remaining amount was actually received,” Dr. Abid Qaiyum Suleri from the Islamabad-based Sustainable Development Policy Institute (SDPI) think tank, told Arab News. “The country should locally arrange climate funds annually to deal with floods and other disasters.”

Arab News contacted Climate Change Minister Musadik Malik and Finance Adviser Khurram Schehzad for comment on the government’s assessment and any plans for an international appeal but received no response.

Earlier this year, Pakistan and the World Bank signed a Country Partnership Framework worth $20 billion over the next decade to support the country’s development priorities, including climate adaptation, social protection and private-sector growth. The financing, which complements the ongoing IMF program, is intended to strengthen the country’s economic resilience in the face of recurring climate shocks like the latest monsoon floods.

Despite contributing less than 1 percent of global greenhouse gas emissions, Pakistan ranks among the countries most vulnerable to climate change. Experts warn that without urgent adaptation and mitigation measures, the human and economic toll of climate change in Pakistan will only deepen in the years ahead.

But Muhammad Waqas Ghani, head of research at the JS Global brokerage firm, warned the government against fiscal and external risks if it resorted to unplanned relief spending.

“Despite the scale of devastation in 2022, international assistance for Pakistan remained limited,” Ghani said. “Should the government now resort to unplanned expenditures on relief, restoration, and subsidies, it will create additional fiscal stress at a time when the country is already operating under strict IMF program targets.”

Damages to crops, livestock and textiles, which account for nearly 30 percent of Pakistan’s consumer price index, pose a “key downside risk to inflation forecasts,” while food imports and reduced textile and rice exports could worsen the external account, Ghani added.

Topics: Pakistan growth Pakistan Floods 2025 2025 Floods Pakistan growth rate

Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
Updated 29 September 2025

Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
  • The country’s new EV policy targets 30 percent of all new vehicle sales to be electric by 2030
  • EVs are key to cutting transport emissions accounting for 10 percent of Pakistan’s carbon output
Updated 29 September 2025
NAIMAT KHAN

KARACHI: The Sindh provincial government on Monday announced it will launch Pakistan’s first government-run electric vehicle (EV) taxi service in December to give public access to modern, eco-friendly and high-quality travel services.

Electric vehicles are vital to reducing transport emissions, which make up about 10 percent of Pakistan’s carbon output and for cutting a $16 billion annual oil import bill, according to Pakistani government data.

In June, the South Asian country launched its new EV policy that aims to accelerate the country’s shift toward sustainable transport, reduce fossil fuel dependence and curb climate-warming emissions.

Speaking at a meeting of provincial officials, Sindh Information Minister Sharjeel Memon noted the provincial administration had already introduced eco-friendly EV buses for the first time in Pakistan.

“In the initial phase, some EV taxis will be reserved exclusively for women,” he was quoted as saying by the provincial information department.

The minister said their Pink Scooty program for women and female students has been widely appreciated by the masses, along with the Pink Bus service for women.

“Now, with the launch of the Pink EV taxi for women, the Sindh government is introducing the country’s first EV taxi service,” he added.

Pakistan, which has experienced erratic weather patterns that experts attribute to climate change, has joined a growing list of nations pushing for zero-emission mobility to curb climate change and urban pollution.

The country’s new EV policy targets 30 percent of all new vehicle sales to be electric by 2030 to cut its reliance on imported fossil fuels. EVs are also expected to offer long-term savings to customers through reduced fuel and maintenance costs.

The South Asian country of over 240 million plans to incentivize EV adoption through tax breaks, subsidies and infrastructure development, including nationwide charging stations.

Memon said the Sindh provincial government will soon run double-decker and additional EV buses to ease transport challenges in Karachi, the provincial capital and the country’s financial hub.

“Work is also underway to develop the necessary infrastructure and charging stations for EV vehicles to ensure the project is sustainable and successful,” he added.

Topics: Electric Taxi clean energy electric vehicle (EV)

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
Updated 29 September 2025

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
  • The statement comes after some reports suggest the Federal Board of Revenue has extended the deadline in view of recent floods
  • Taxpayers are cautioned that failure to file returns by the due date will result in late-filer status and penalties, the watchdog says
Updated 29 September 2025
Ismail Dilawar

ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) on Monday rejected reports of an extension in deadline to file income tax returns for fiscal year 2024-25, saying Sept. 30 is final date for all Pakistanis to submit their wealth statements.

The statement came after some reports suggested the revenue watchdog had extended the deadline in view of the recent floods that killed more than 1,000 Pakistanis, uprooted nearly 3 million people and submerged standing crops on vast tracts of lands.

In a statement issued on Monday, the FBR said that all these reports were false, baseless and misleading and the deadline for filing income tax returns for Tax Year 2025 will not be extended.

“It is pointed out that a vast majority of taxpayers reside in areas unaffected by floods and have had ample time to discharge their national obligation of filing returns,” it said.

“Taxpayers are also cautioned that failure to file returns by the due date will result in late-filer status and imposition of penalties under the law.”

The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its collection targets.

In June, Prime Minister Shehbaz Sharif’s government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025–26, marking a 9 percent increase from the previous year.

Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.

“FBR urges all eligible taxpayers to act responsibly and file their Income Tax Returns with accuracy and honesty before the deadline of 30th September, 2025 to avoid any legal consequences,” the FBR said, denying reports about a slowdown of its tax returns filing platform, IRIS.

“In case of extreme hardship, the taxpayers can avail extension of return up to fifteen days with payment of due taxes by 30th September subject to approval by the relevant committee as per law.”

Topics: Pakistan tax income tax returns Last date to file Tax returns FBR

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