Pakistan, China agree on CPEC upgrade, Sharif unveils Panda Bond plan

Pakistan, China agree on CPEC upgrade, Sharif unveils Panda Bond plan
Pakistan's Prime Minister Shehbaz Sharif (left) shaking hands with Chinese counterpart, Li Qiang in Bejing, China on September 4, 2025. (Government of Pakistan)
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Updated 31 min 43 sec ago

Pakistan, China agree on CPEC upgrade, Sharif unveils Panda Bond plan

Pakistan, China agree on CPEC upgrade, Sharif unveils Panda Bond plan
  • Sharif highlights economic reforms, thanks China for backing Pakistan’s sovereignty and development
  • The PM also discusses the next CPEC phase with Premier Li, new B2B investments in various sectors

ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday Pakistan planned to float Panda Bonds in China’s capital market as he met Premier Li Qiang in Beijing, where the two leaders discussed stronger economic cooperation including the next phase of the multibillion-dollar China–Pakistan Economic Corridor (CPEC).

Panda Bonds are yuan-denominated bonds issued in China by foreign governments or entities. Islamabad plans to issue them to raise financing from Chinese investors and ease pressure on its foreign exchange reserves.

At the same time, Pakistan is pushing for an upgraded phase of CPEC, a flagship project of President Xi Jinping’s Belt and Road Initiative (BRI), which has already poured billions of dollars into Pakistani infrastructure and energy. “CPEC 2.0” is meant to expand beyond roads and power plants into new areas focused on industry, agriculture, digital technology and livelihoods.

Sharif met with the Chinese premier during which he discussed Pakistan’s economic reforms, saying they were yielding promising results while acknowledging China’s support through his country’s prolonged financial hardships.

“While paying rich tribute to China’s impressive transformation under President Xi Jinping’s visionary leadership, the Prime Minister stated that Pakistan wanted to emulate China’s successes and build a stronger and closer Pakistan-China community with a shared future,” said a statement released by Sharif’s office in Islamabad after the meeting.

“He also shared Pakistan’s intent to float Panda Bonds in the Chinese capital market soon,” it added.The statement said both sides agreed to expedite work on the next CPEC phase, including early implementation of the long-delayed Main Line-1 railway upgrade, Karakoram Highway realignment and full operationalization of Gwadar Port.

They also attended a ceremony for signing agreements covering cooperation in CPEC 2.0, science and technology, agriculture, media and information technology.

Sharif highlighted the outcome of a Business-to-Business (B2B) Investment Conference held earlier in the day, attended by more than 300 Pakistani and 500 Chinese companies.

He identified agriculture, mines and minerals, textiles, industry and information technology as priority sectors for new collaboration.

He also thanked Beijing for its “unflinching support” to Pakistan’s territorial integrity, sovereignty and socio-economic development.

The acknowledgment comes months after Pakistan leaned heavily on Chinese military hardware during a brief four-day standoff with India.

Indian officials said Pakistan was fully backed by China in the war, though authorities in Islamabad later insisted their “victory” in that clash was “made in Pakistan.”

Sharif began his China visit over the weekend, attending a summit of the Shanghai Cooperation Organization (SCO) and meeting President Xi. He also watched a massive Victory Day military parade in Tiananmen Square — China’s largest in years — to mark the 80th anniversary of the end of World War II. The display showcased hypersonic missiles, sea drones and laser air defenses in a show of strength that drew world leaders including Russia’s Vladimir Putin.


Pakistan calls support for Palestine ‘moral obligation’ as fighting intensifies in Gaza

Pakistan calls support for Palestine ‘moral obligation’ as fighting intensifies in Gaza
Updated 04 September 2025

Pakistan calls support for Palestine ‘moral obligation’ as fighting intensifies in Gaza

Pakistan calls support for Palestine ‘moral obligation’ as fighting intensifies in Gaza
  • Pakistan’s religious affairs minister says Islamabad will continue to support Palestine ‘under all circumstances’
  • Palestinian delegation says time is near when Muslim leaders will gather at Al-Aqsa Mosque to offer prayers

ISLAMABAD: Federal Minister for Religious Affairs Sardar Muhammad Yousaf described support for Palestine as a “moral obligation” as he met a senior Palestinian delegation in Islamabad on Thursday, pledging continued backing at a time when the war in Gaza has intensified.

The four-member delegation, led by Dr. Mahmoud Sidqi Abdul Rahman Al-Habbash, the Supreme Judge of Palestine, also included the imams of Al-Aqsa and Ibrahimi Mosques.

Their visit comes as Israeli strikes on Gaza have drawn widespread condemnation across the Muslim world, with Pakistan, which does not recognize Israel, reaffirming its stance of unconditional support for the Palestinian cause.

“Support for the Palestinian nation is a human and moral obligation that transcends religion, race, creed and culture,” the Pakistani minister said.

He condemned the “ongoing massacre in Gaza” and vowed that “Pakistan will continue to extend political, moral and diplomatic support to Palestine under all circumstances.”

In recent weeks, Gaza has faced a worsening humanitarian emergency. Israel’s blockade, imposed since early March, has severely restricted access to food, water and medical supplies. Aid agencies and the United Nations have warned of mass starvation and rising child malnutrition in the enclave, home to around two million people. Only a few humanitarian trucks have been allowed in.

Pakistan has also raised the issue at the United Nations Security Council, saying Israel is using the starvation of civilians as a weapon of war.

Yousaf said Prime Minister Shehbaz Sharif had directed that relief goods be sent to Gaza, while the Palestinian delegation expressed sorrow over the loss of life and property in Pakistan’s recent floods.

Al-Habbash thanked Islamabad for raising its voice against Israel’s military campaign, adding that “several countries will recognize Palestine as a free and sovereign state in the month of September.”

“The time is near when the leaders of the Islamic world will gather at Al-Aqsa Mosque to offer prayers of thanksgiving,” he added.

The Al-Aqsa Mosque in Jerusalem is Islam’s third holiest site after Makkah and Madinah, revered as the place where Muslims believe the Prophet Muhammad (PBUH) ascended to heaven during the Night Journey.

It also stands at the heart of the Israeli–Palestinian conflict, making it both a spiritual and political symbol for Muslims worldwide.

The meeting also agreed to promote dialogue and exchanges between religious scholars, according to the statement.


Nearly 4 million affected as floods swamp Pakistan’s Punjab, threaten city of Multan

Nearly 4 million affected as floods swamp Pakistan’s Punjab, threaten city of Multan
Updated 26 min 10 sec ago

Nearly 4 million affected as floods swamp Pakistan’s Punjab, threaten city of Multan

Nearly 4 million affected as floods swamp Pakistan’s Punjab, threaten city of Multan
  • Disaster chief says Sher Shah Bridge near Multan nearly at danger point, 35,000 residents threatened
  • Punjab, home to half of Pakistan’s 240 million people and its breadbasket, inundated as major rivers swell

ISLAMABAD: Pakistan’s disaster management chief in Punjab warned on Thursday that the next 24 hours would be “extremely critical” as floods surged down the Chenab River, threatening the southern city of Multan and dozens of nearby villages after weeks of heavy monsoon rains and dam releases from India.

Punjab, home to half of Pakistan’s 240 million people, is the country’s most populous and agriculturally vital province, often described as its breadbasket. Officials say 46 people have been killed, nearly 3.9 million people affected, 1.8 million displaced, and thousands of villages inundated as the Chenab, Ravi and Sutlej rivers have overflowed since late last month. 

Nationwide, more than 883 people have died in floods, rains and landslides since the monsoon season began in late June, according to the National Disaster Management Authority. The disaster has revived memories of the 2022 deluges, when a third of the country was submerged, 30 million people were displaced and losses exceeded $35 billion.

“This is a critical time for the city and district of Multan,” Punjab Disaster Management Authority (PDMA) Director General Irfan Ali Kathia told reporters at a press conference. 

“The main surge of the Chenab has already reached Head Muhammad Wala at its peak and is now moving downstream.”

Multan, with a population of about 2.6 million, is the largest city in southern Punjab and the region’s economic hub, famous for mango exports, textiles and fertile farmland. 

Kathia said while there was “no danger” yet at Head Muhammad Wala, a barrage point on the Chenab upstream of Multan, the Sher Shah Bridge flood gauge near the city had already reached maximum capacity with only “two to three inches of space” left.

If authorities were forced to operate a breaching section to relieve pressure, he warned, “there are about twenty-seven locations that can be affected by it,” including settlements such as Shershah, Akbarpur and Mirzapur, with 35,000 residents at risk.

Kathia said backwater flows on the Ravi River were worsening the crisis, creating stagnant water in Toba Tek Singh and Khanewal districts. 

“At present, under the backwater effect… there are about two hundred and three villages that have been affected,” he said, adding that more than 1.8 million people and 1.3 million animals had already been evacuated with the help of the Pakistan Army and Rescue 1122.

Relief Commissioner Nabeel Javed said separately in a statement that 46 people had died in Punjab in the latest spell of monsoon rains and floods. He said 410 relief camps, 444 medical camps and 395 veterinary camps had been set up across the province to support those displaced.

RIVER FLOWS AND SINDH THREAT

River flows continued to remain dangerously high on Thursday.

The Chenab was at 217,000 cusecs at Marala, 450,000 at Khanki and 507,000 at Qadirabad, while Chiniot bridge had climbed past 509,000 cusecs and was still rising.

On the Ravi, flows stood at 84,000 cusecs at Jassar and nearly 128,000 at Balloki, both rising. The Sutlej carried 335,000 cusecs at Ganda Singh Wala and 139,500 at Sulemanki, with 169,000 steady at Panjnad. (One cusec equals one cubic foot per second of water flow.)

With reservoirs on both sides of the border near full capacity — Tarbela at 100 percent, Mangla at 87 percent, and India’s Bhakra, Pong and Thein all above 90 percent — officials warned of further downstream pressure in the southern province of Sindh. 

Chief Minister Murad Ali Shah said his province was preparing for a potential “super flood” as inflows from Punjab converged in the coming days.

“Our preparations are complete, and we pray this time passes without major damage,” Shah told reporters, warning that persuading riverine communities to evacuate remained the greatest challenge.


US envoy encourages American firms to invest in Pakistan’s minerals, ICT, energy sectors

US envoy encourages American firms to invest in Pakistan’s minerals, ICT, energy sectors
Updated 04 September 2025

US envoy encourages American firms to invest in Pakistan’s minerals, ICT, energy sectors

US envoy encourages American firms to invest in Pakistan’s minerals, ICT, energy sectors
  • Embassy statement says CDA Baker cites Pakistan’s demographics and location as key draws
  • Pakistan is pursuing IMF-backed reforms to stabilize finances, boost reserves and credit ratings

ISLAMABAD: A senior US diplomat has highlighted opportunities for American companies to invest in Pakistan’s critical minerals, information technology, agriculture and energy sectors, calling them key areas for growth and bilateral cooperation, the US Embassy said in a statement this week.

Chargé d’Affaires Natalie Baker made the remarks at a webinar hosted by the Business Council for International Understanding (BCIU) on Sept. 2, where US and Pakistani business leaders discussed the country’s evolving business environment.

In 2024, total US-Pakistan goods trade amounted to approximately $7.2 billion, with US exports to Pakistan valued at around $2.1 billion and imports at nearly $5.1 billion. On the foreign direct investment front, the United States remains one of Pakistan’s largest investors, with net US FDI inflows estimated at $227.7 million

“The opportunities are significant in critical minerals, ICT, agriculture, energy and infrastructure,” Baker said at the webinar, encouraging American companies to engage with the US Foreign Commercial Service team in Pakistan and pursue partnerships with local counterparts to build “profitable ventures” that could contribute to economic prosperity in both countries.

Baker also underlined Pakistan’s demographic and strategic advantages, noting its location, competitive labor force and vast consumer base. 

“This is the fifth-largest country in the world, home to 250 million people, with 64 percent of the population under the age of 30,” she said. 

“Pakistan’s GDP is about $412 billion, ranking 38th in the world, but Goldman Sachs projects it could reach $3.3 trillion by 2050, putting it among the top 10 to 15 economies globally.”

Her remarks came as Pakistan implements reforms under a $7 billion International Monetary Fund program approved in September 2024, focused on tax collection, energy sector restructuring and privatization of state-owned firms.

The measures have helped stabilize public finances, rebuild foreign exchange reserves and improve international credit ratings, with Fitch Ratings upgrading Pakistan’s outlook to positive in mid-2025. Officials say the steps are crucial for restoring investor confidence and laying the groundwork for sustainable growth in the South Asian nation. 


Gunmen kill three police officers in northwest Pakistan ambush

Gunmen kill three police officers in northwest Pakistan ambush
Updated 04 September 2025

Gunmen kill three police officers in northwest Pakistan ambush

Gunmen kill three police officers in northwest Pakistan ambush
  • Attack took place in Banda Dawood Shah near Bannu, a region troubled by militancy
  • One officer critically injured and taken to hospital as police launch search operation

PESHAWAR: Unidentified gunmen ambushed a police patrol in northwest Pakistan last night, a senior official said on Thursday, killing three policemen and wounding another before escaping.

The assault occurred in Banda Dawood Shah, in Karak district of Khyber Pakhtunkhwa (KP) province, an area close to Bannu that has long been prone to militant violence.

Bannu itself was the scene of a major attack earlier this week, when six security personnel and six militants were killed in an hours-long battle at a paramilitary Frontier Constabulary base after a suicide bomber rammed the compound.

“The attackers, who were lying in ambush, suddenly opened fire on the police party at around 9:30 p.m. [on Wednesday],” said Shaukat Khan, spokesperson for Karak district police.

“Inspector Umar Niaz and two other policemen succumbed to their injuries on the spot, while one personnel was critically injured and rushed to a nearby hospital,” he added.

Khan said the assailants fled after the attack, prompting police to cordon off the area and launch a search operation.

A case has been registered, and an investigation is underway to determine the motive.

KP has witnessed a surge in militant violence in recent months, much of it blamed on the Pakistani Taliban, also known as the Tehreek-e-Taliban Pakistan (TTP), an umbrella organization of militant outfits in the region.

Pakistani officials say TTP militants operate from neighboring Afghanistan and have previously accused the Kabul administration of “facilitating” cross-border attacks. Kabul rejects the allegation, saying Pakistan’s security issues are its internal matter.

Pakistani security forces have also launched intelligence-based operations in the region to counter the militant presence.


Pakistan PM to meet Chinese counterpart, interact with business leaders in Beijing

Pakistan PM to meet Chinese counterpart, interact with business leaders in Beijing
Updated 04 September 2025

Pakistan PM to meet Chinese counterpart, interact with business leaders in Beijing

Pakistan PM to meet Chinese counterpart, interact with business leaders in Beijing
  • Shehbaz Sharif’s office says he will interact with the Chinese information technology minister
  • The PM will also chair the second Pakistan-China B2B Investment Conference during the day

KARACHI: Prime Minister Shehbaz Sharif is scheduled to meet China’s Premier Li Qiang and the Minister of Information Technology and Industry Li Licheng today, Thursday, as he continues his six-day visit during which he will hold a string of meetings with Chinese political and business leaders.

Sharif started his visit to China over the weekend, where he attended a summit of the Shanghai Cooperation Organization (SCO) and held talks with Chinese leadership, including President Xi Jinping.

He also witnessed a major Victory Day military parade in Tiananmen Square — China’s largest in years — held to mark the 80th anniversary of the end of World War II.

The display featured cutting-edge systems, including hypersonic missiles, sea drones and laser air defenses. The event was widely viewed as a show of Chinese military might, with a number of world leaders, including Russia’s Vladimir Putin, in attendance.

“Prime Minister Muhammad Shehbaz Sharif will meet with His Excellency Premier Li Qiang of China today,” his office said in a statement while circulating his agenda for the day. “The Prime Minister will also hold talks with His Excellency Li Lie-cheng, China’s Minister of Information Technology and Industry.”

Pakistan considers China a major investor and regional ally.

Over the years, Beijing has emerged as Islamabad’s largest trading partner, with bilateral trade exceeding $25 billion in recent years, and Chinese companies have already invested heavily in power, transport, infrastructure and telecom projects across the country as part of the multi-billion-dollar China–Pakistan Economic Corridor project.

Sharif will also preside over the second edition of the Pakistan–China Business-to-Business Investment Conference in Beijing during the day. The meeting will review outcomes from the first conference held in Shenzhen in June 2024 and set a future roadmap.

A day earlier, Sharif also invited top Chinese business executives and companies to expand their investments in Pakistan, citing his government’s investor-friendly policies and the country’s push for sustainable economic growth.