Moody’s upgrade underscores Pakistan recovery, reforms fueling stability — central bank governor 

Moody’s upgrade underscores Pakistan recovery, reforms fueling stability — central bank governor 
State Bank of Pakistan Governor Jameel Ahmad speaks at the Reuters NEXT Asia summit in Singapore July 9, 2025. (Reuters/ file)
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Updated 10 min 30 sec ago

Moody’s upgrade underscores Pakistan recovery, reforms fueling stability — central bank governor 

Moody’s upgrade underscores Pakistan recovery, reforms fueling stability — central bank governor 
  • Rating agency lifted Pakistan’s sovereign credit score on Wednesday, citing stronger reserves and external stability
  • SBP governor says inflation has dropped to a historic low and reforms will support long-term growth

KARACHI: Pakistan’s central bank said on Thursday recent credit rating upgrades underscored the country’s improving macroeconomic outlook, as Governor Jameel Ahmad used an Independence Day address to stress economic resilience and reforms.

The remarks came a day after Moody’s Investors Service upgraded Pakistan’s sovereign rating, citing stronger foreign exchange reserves, a current account surplus and fiscal consolidation. Analysts said the move could ease access to global capital markets and attract investment as Pakistan looks to consolidate gains under its $7 billion IMF program approved in September 2024.

“International credit rating agencies have upgraded Pakistan’s ratings in recognition of recent measures which will help unlock foreign investment opportunities,” Ahmad said at the State Bank of Pakistan’s (SBP) flag-hoisting ceremony in Karachi.

Ahmad noted the dramatic improvement in inflation, which had soared to 38 percent in May 2023 before easing to 11.8 percent by May 2024 and reaching a record low of 3.2 percent in June 2025.

“Our monetary policy remains geared toward maintaining the hard-earned gains in price stability, while ensuring inflation remains within 5–7 percent,” he said, adding that this would help “unlock broader economic and business opportunities.”

The SBP has reduced its policy rate in seven steps from 22 percent to 11 percent since June 2024 in line with the improved outlook.

External accounts have also strengthened, with reserves nearly tripling to $14.5 billion by the end of FY25 from $4.4 billion two years earlier. Ahmad said the turnaround was achieved through a $2.1 billion current account surplus – the first in 14 years – and record remittances of $38.3 billion from overseas Pakistanis, without adding to external debt.

The governor also highlighted SBP’s digital push, including spinning off the Raast instant payment system into a separate subsidiary, easing account opening procedures and modernizing payment infrastructure to widen financial inclusion. He said such steps would particularly benefit women and small businesses.

Pakistan’s economic rebound follows two years of crisis, when the country averted default through IMF disbursements, painful reforms, and strict fiscal consolidation. The IMF has urged Pakistan to maintain exchange rate flexibility, broaden its tax base and strengthen the energy sector to lock in recent stability.


In Aug. 14 message, US says will explore cooperation with Pakistan on critical minerals, hydrocarbons

In Aug. 14 message, US says will explore cooperation with Pakistan on critical minerals, hydrocarbons
Updated 8 sec ago

In Aug. 14 message, US says will explore cooperation with Pakistan on critical minerals, hydrocarbons

In Aug. 14 message, US says will explore cooperation with Pakistan on critical minerals, hydrocarbons
  • Washington and Islamabad hailed a trade deal last month, which Pakistan said would result in lower tariffs, increased investment
  • Before President Donald Trump’s administration, Islamabad’s relationship with Washington had cooled in recent years

WASHINGTON: Secretary of State Marco Rubio said Washington looked forward to exploring cooperation with Pakistan on critical minerals and hydrocarbons, with his comments coming in a statement issued by the State Department on Pakistan’s Independence Day.

WHY IT’S IMPORTANT

Washington and Islamabad hailed a trade deal last month, which Pakistan said would result in lower tariffs and increased investment.
Pakistan’s Commerce Minister Jam Kamal has said Islamabad will offer US businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants.
The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world’s largest gold and copper mines.

KEY QUOTES

“We look forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and fostering dynamic business partnerships,” Rubio said late on Wednesday.
“The United States deeply appreciates Pakistan’s engagement on counterterrorism and trade.”

CONTEXT

Before President Donald Trump’s administration, Islamabad’s relationship with Washington had cooled in recent years, as the US drew closer to Pakistan’s traditional adversary India to counter China’s rise, among other factors.
Washington also resented Islamabad over Afghanistan, especially under former President Joe Biden’s administration, which oversaw a chaotic withdrawal from Afghanistan and the takeover of the country by the Taliban insurgency that Washington accused Islamabad of backing. Pakistan denied the charge.
In recent months, Washington’s ties with Islamabad have improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in India-administered Kashmir.
Pakistan praised Trump while India maintained that New Delhi and Islamabad should resolve their issues directly without outside involvement.

COUNTERTERRORISM TALKS

The US and Pakistan held the latest round of counterterrorism talks in Islamabad on Tuesday. Washington has designated separatist militant group Balochistan Liberation Army as a “foreign terrorist organization.”
“The US-Pakistan counterterrorism dialogue joint statement is one of the most positive and effusive I’ve seen from these two countries on CT for quite a few years,” Michael Kugelman, a Washington-based South Asia analyst and writer for Foreign Policy magazine, said.


Chinese mountaineer killed on Pakistan’s K2

Chinese mountaineer killed on Pakistan’s K2
Updated 3 min 52 sec ago

Chinese mountaineer killed on Pakistan’s K2

Chinese mountaineer killed on Pakistan’s K2
  • Guan Jing was descending from summit of K2 on Tuesday night when she was hit by falling rocks
  • This season, four deaths have been reported, including two on K2, one on Nanga Parbat, one on Laila Peak 

KHAPLU, Pakistan: A Chinese mountaineer died while descending the world’s second-highest peak, with Pakistani rescuers waiting on Thursday for weather conditions to improve to recover her body.

Guan Jing was descending from the summit of K2 on Tuesday night when she was hit by falling rocks, Deputy Commissioner for Shigar district Arif Ahmad told AFP.

“An army aviation team is ready for the recovery of the body and is waiting for better weather conditions,” he said.

According to the Alpine Club of Pakistan, which monitors local climbing expeditions, Guan is the fourth casualty of the country’s summer climbing season.

Guan was among 30 climbers who reached the summit of K2 on Monday before beginning her fatal descent.

“The incident occurred on the Abruzzi Spur route between Camp I and Advanced Base Camp — a section notorious for frequent rockfalls,” the Alpine Club said.

At 8,611 meters (28,251 feet), K2 on the Pakistan-China border sits 238 meters shy of world-topping Himalayan giant Everest but is considered more technically challenging.

Home to five of the world’s 14 mountains above 8,000 meters, Pakistan typically welcomes an influx of summer climbers from early June until late August.

This season, four deaths have been reported, including two on K2, one on Nanga Parbat and one on the lesser-known Laila Peak in the Karakoram range where German Olympic biathlete Laura Dahlmeier died after being hit by falling rocks last month.


Three killed, over 100 injured in Independence Day celebratory gunfire in Karachi 

Three killed, over 100 injured in Independence Day celebratory gunfire in Karachi 
Updated 23 min 35 sec ago

Three killed, over 100 injured in Independence Day celebratory gunfire in Karachi 

Three killed, over 100 injured in Independence Day celebratory gunfire in Karachi 
  • Victims included a child, a 70-year-old man and another adult, according to hospital data
  • Aerial firing is common during public celebrations in Pakistan but often causes deadly accidents

KARACHI: Three people were killed and 119 injured in Karachi when celebratory aerial firing broke out as Pakistan marked its Independence Day, a senior health official said on Thursday.

Firing guns into the air during weddings, festivals and national holidays is a long-standing practice in Pakistan, but one that regularly results in injuries and deaths when stray bullets strike bystanders. Police typically ban the practice, yet enforcement remains weak in the country’s largest city of more than 20 million people.

“Three people were killed and 119 injured in celebratory aerial firing on August 14 in Karachi,” Karachi Police Surgeon Dr. Summaya Syed said in a statement, citing hospital reports.

According to official data, casualties were reported from multiple hospitals: 42 injured at Abbasi Shaheed Hospital, 26 at Civil Hospital Karachi/SMBB Institute of Trauma, and 41 cases at Jinnah Postgraduate Medical Center. 

Those killed included a minor girl in Azizabad, a 70-year-old man in Kalri, and a 35-year-old man in Qur’angi.

Karachi, Pakistan’s financial hub and most populous city, frequently sees such incidents during national holidays. Rights groups and doctors have repeatedly called for stronger enforcement against aerial firing, noting that most victims are innocent bystanders, including children.


Pakistan approves industrial estate on steel mills land, $10 million upgrade for state TV English channel

Pakistan approves industrial estate on steel mills land, $10 million upgrade for state TV English channel
Updated 14 August 2025

Pakistan approves industrial estate on steel mills land, $10 million upgrade for state TV English channel

Pakistan approves industrial estate on steel mills land, $10 million upgrade for state TV English channel
  • Pakistan Steel Mills, once country’s biggest industrial complex, is dormant since 2015, governments have long debated how to repurpose its land
  • ECC also approved funds for climate diplomacy at COP-30 in Brazil, grant to upgrade PTV’s English news channel to enhance global outreach

KARACHI: Pakistan’s top economic decision-making body has approved plans to build an industrial estate on the land of the country’s largest state-owned steel producer, part of a package of measures aimed at boosting exports, investment and climate diplomacy, the finance division said this week. 

Pakistan Steel Mills (PSM), located in Karachi, was once the country’s biggest industrial complex but has been largely dormant since 2015 due to financial losses and mismanagement. Successive governments have sought to privatize or repurpose its land and assets.

The Economic Coordination Committee (ECC), which oversees key economic policy, said turning the site into an industrial estate would generate jobs and attract investment.

“The ECC approved the development of an Industrial Estate on the land of Pakistan Steel Mills (PSM) in Karachi, aimed at boosting industrial activity, generating employment opportunities, and attracting investment,” the Finance Division said in a statement after a meeting chaired by Finance Minister Muhammad Aurangzeb on Wednesday evening. 

The ECC also approved measures to support Pakistan’s leather industry, including scrapping the requirement for health quarantine certificates on imports and exports to “enhance its competitiveness in international markets.”

Another major decision was the allocation of a technical supplementary grant of 2.8 billion rupees ($10 million) for the state-run Pakistan Television Corporation to upgrade its English-language news channel. The committee said the goal was to “improve broadcast quality and expand outreach to global audiences,” while urging the channel to develop a business plan to reduce reliance on federal subsidies.

In addition, a separate grant was approved for the Ministry of Climate Change to strengthen its participation at the upcoming COP-30 climate summit in Brazil, reflecting Pakistan’s push to maintain visibility in global climate talks after championing the “Loss and Damage” agenda in 2022.

The Finance Division said the ECC chair concluded the meeting by stressing “the importance of timely and effective implementation of these decisions to ensure their intended economic and social benefits.”


PM announces creation of missile command in Pakistan army aimed at boosting combat power

PM announces creation of missile command in Pakistan army aimed at boosting combat power
Updated 14 August 2025

PM announces creation of missile command in Pakistan army aimed at boosting combat power

PM announces creation of missile command in Pakistan army aimed at boosting combat power
  • Sharif announced establishment of Army Rocket Force at pre-Independence Day ceremony on Wednesday 
  • Security official said force will operate under its own command, dedicated to handling, deploying missiles in conventional war

ISLAMABAD: Pakistan will create a new force in the military to supervise missile combat capabilities in a conventional conflict, apparently a move to match the neighboring arch-rival India.

Prime Minister Shehbaz Sharif announced the creation of the Army Rocket Force late Wednesday at a ceremony held in Islamabad to commemorate the worst conflict in decades with India in May.

The ceremony was held a day ahead of Pakistan’s 78th Independence Day.

“It will be equipped with modern technology,” Sharif said in a statement from his office, adding that the force will prove to be a milestone in strengthening the combat capability of Pakistan’s army.

He did not give any further details.

A senior security official, however, said that the force will have its own command in the military which will be dedicated to handling and deployment of missiles in any event of a conventional war.

“It is obvious that it is meant for India,” he said.

The two nuclear-armed nations keep upgrading their military capabilities in the wake of a longstanding rivalry since their independence from British rule in 1947.

The latest tension between the two countries soared in April over the killing of 26 civilians in Indian-administered Kashmir, an attack New Delhi blamed on Islamabad. Pakistan denied involvement.

A conflict then erupted in May, the most serious fighting between the two countries in decades, which saw both sides using missiles, drones and fighter jets before it ended with a ceasefire announcement by US President Donald Trump.

Islamabad acknowledges the US role, but India denies it, saying it was agreed directly between the two militaries.