Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
A container ship is docked at the port of Jebel Ali, operated by the Dubai-based giant ports operator DP World, in the southern outskirts of the Gulf emirate of Dubai, on June 18, 2020. (AFP/File)
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Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank

Pakistan’s trade deficit with Gulf nations widens 28% in July – central bank
  • Exports to GCC dropped 12.5% to $277.3 millions as imports climbed 19% to $1.68 billion
  • Statistics reveal UAE was Pakistan’s top GCC oil supplier, with July imports at $816 million

KARACHI: Pakistan’s trade deficit with Gulf nations widened 28.4% to $1.4 billion in July, the first month of the current fiscal year, driven by rising imports from the oil-rich region, State Bank of Pakistan (SBP) data showed this week.

Last year in July, the gap with the six-member Gulf Cooperation Council (GCC) — , the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain — had stood at $1.09 billion.

This time around, exports to the bloc fell 12.5% year-on-year to $277.3 million, while imports rose 19% to $1.68 billion.

Pakistan has been negotiating a free trade agreement (FTA) with the GCC to improve market access and signed preliminary accords in Riyadh two years ago.

“This is a significant development as the FTA is the first by GCC with any country since 2009 and marks a milestone in both sides’ economic cooperation,” then-commerce minister Gohar Ejaz said at the time.

Pakistan has continued to rely heavily on petroleum supplies from GCC states since then.

Its imports from the bloc totaled $17.9 billion in FY2024-25, nearly matching earnings from the country’s textile exports. In return, Pakistan exported $3.79 billion worth of goods and services to the GCC.

According to the data, the widening deficit reflects surging imports from the UAE, Pakistan’s largest oil supplier in the bloc.

July imports from the Emirates reached $816 million, while the FY25 bill stood at $8 billion.

The UAE is also Pakistan’s biggest export market in the GCC, buying $2.12 billion worth of goods last year, SBP data showed.

and Qatar were other key suppliers, exporting $3.8 billion and $3.5 billion worth of oil and gas to Pakistan respectively in FY25.

Pakistan’s cash-strapped government is struggling to rein in its external account by curbing imports and boosting exports, but the country’s overall trade deficit rose nine percent to $26 billion last year, according to the Pakistan Bureau of Statistics.


Sindh disaster authority says 300 rescued as heavy rains flood Karachi, schools shut

Sindh disaster authority says 300 rescued as heavy rains flood Karachi, schools shut
Updated 10 September 2025

Sindh disaster authority says 300 rescued as heavy rains flood Karachi, schools shut

Sindh disaster authority says 300 rescued as heavy rains flood Karachi, schools shut
  • PDMA chief says communities along Karachi’s Lyari and Malir rivers worst hit by rains
  • Punjab officials say monsoon rains have ended and no new river flooding is expected

KARACHI: Sindh’s disaster authority said on Wednesday more than 300 people were rescued in Pakistan’s commercial capital Karachi after heavy rains lashed the city for several hours, inundating low-lying neighborhoods and forcing the government to close schools.

The Pakistan Meteorological Department warned of a new spell of rains in southern Sindh and neighboring Balochistan provinces this week, with risks of severe urban flooding in Karachi, Hyderabad and Sukkur as well as flash floods in mountain catchments.

Torrential downpours submerged parts of Karachi late Tuesday, as authorities in Sindh were already bracing for looming “super floods” along the Indus River after weeks of record monsoon rains across Punjab, the country’s agricultural heartland, sent massive torrents downstream.

Millions were displaced in Punjab after three major eastern rivers — Chenab, Ravi and Sutlej — surged following water releases from Indian dams amid New Delhi’s efforts to ease pressure on swollen reservoirs.

“The populations living along the Lyari and Malir rivers have been the worst affected by the rains,” Sindh Provincial Disaster Management Authority (PDMA) Director General Salman Shah said. “So far, 325 people have been rescued. Nine PDMA teams and 50 Rescue 1122 personnel were on standby, and about 400 workers are currently engaged in rescue operations.”

Karachi’s mayor, Murtaza Wahab, toured affected areas during the night and said in the early hours of Wednesday that all major arteries and underpasses were clear for traffic. He cautioned that drizzle was still continuing and urged residents to remain safe during the inclement weather.

Separately, the Karachi commissioner’s office announced a holiday for all public and private educational institutions across the division late Tuesday, citing forecasts of more heavy rain.

MORE RAINS EXPECTED

Meanwhile, the National Emergencies Operation Center of the National Disaster Management Authority (NDMA) issued a flood alert for Sindh and Balochistan, warning of widespread rain and thunderstorms in Karachi, Hyderabad, Jamshoro, Thatta, Badin, Sujawal, Tharparkar, Umerkot, Sanghar, Dadu, Jacobabad and other districts.

It noted that low-lying urban areas were at risk of submergence, with traffic flows likely to be disrupted.

Heavy rain was also forecast for Sukkur, Rohri, Larkana, Shikarpur, Ghotki and Kashmore, while downpours in the Kirthar mountain range could trigger hill torrents.

In Balochistan, heavy rainfall was expected over the next 24 hours in Lasbela, Hub, Khuzdar, Awaran, Barkhan, Sui, Sibi, Dera Bugti, Naseerabad, Kohlu, Kalat and Zhob. Further rain was forecast in Kech, Gwadar, Pasni, Ormara, Surab and southern Washuk, with flash floods feared in Wadh, Khuzdar, Bela, Ormara and Hingol valley.

The NDMA urged the public to avoid unnecessary travel, keep vehicles parked in safe areas, and stay clear of submerged roads and underpasses.

RIVER SITUATION

According to an update by the Punjab PDMA after midnight on Wednesday, river flows in Punjab remained high, with significant pressure points downstream.

On the Chenab, flows at Trimmu headworks close to Jhang were recorded at more than 328,000 cusecs, though falling, while gauges at Sher Shah Bridge near Multan showed water levels holding steady at 393.40 feet.

The Sutlej carried some of the heaviest volumes, with 230,000 cusecs at Ganda Singh Wala near Kasur and more than 475,000 cusecs at Punjnad headworks, where operational capacity was reported reduced due to backwater effects from the Indus.

Downstream in Sindh, the Guddu Barrage was handling more than 443,000 cusecs, underscoring the threat of flooding as Indus waters surged south.

The PDMA said on Tuesday the tenth spell of monsoon rains had ended in Punjab, with no major downpours expected in the province in the coming days.

“There is no forecast of major rains in Punjab now, and the floodwaters have already moved into south Punjab,” PDMA Director General Irfan Kathia said in a statement. “There is no expectation of new flood waves in the three rivers, and conditions should normalize in the next few days.”


Pakistan PM directs crackdown on tax evaders in bid to shore up revenues

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues
Updated 10 September 2025

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues

Pakistan PM directs crackdown on tax evaders in bid to shore up revenues
  • Pakistan has set a record-high tax collection target of $47 billion for 2025–26, marking a 9% increase from the previous year
  • Shehbaz Sharif stresses leveraging Federal Board of Revenue’s internal resources, private sector expertise to detect tax evaders

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif has ordered a crackdown on tax evaders and recovery of outstanding dues, Pakistani state media reported on Tuesday, amid the government’s efforts to shore up revenues.

The prime minister issued the directives at a meeting on the Federal Board of Revenue-related matters, during which he called for a public awareness campaign regarding government measures against tax evasion.

Pakistan has lately introduced several reforms to ensure economic stability and to meet structural benchmarks under a $7 billion International Monetary Fund (IMF) program Islamabad secured last year.

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.

“Shehbaz Sharif asked the FBR to foster a business-friendly environment and ensure the provision of all possible facilities to taxpayers. He also directed the hiring of professionals to identify tax evaders and recover dues from them,” the Radio Pakistan broadcaster reported.

“He stressed the importance of leveraging both FBR’s internal resources and private sector expertise to detect individuals and companies involved in tax evasion.”

In June, 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.

Since then, the prime minister has approved modern digital ecosystem for the FBR to increase its collection and the launch of simplified digital tax returns to increase compliance and widen the country’s narrow tax base.

At Tuesday’s meeting, Sharif also asked officials to expedite the completion of an income and sales taxpayer directory, aimed at recognizing and honoring responsible taxpayers.

“Responsible citizens who regularly pay taxes are the backbone of the national economy,” he was quoted as saying. “Acknowledging taxpayers and taking firm action against tax evaders would contribute significantly to broadening the tax base.”


Pakistan court jails Imran Khan aides to 10 years over May 2023 riots case

Pakistan court jails Imran Khan aides to 10 years over May 2023 riots case
Updated 09 September 2025

Pakistan court jails Imran Khan aides to 10 years over May 2023 riots case

Pakistan court jails Imran Khan aides to 10 years over May 2023 riots case
  • Dr. Yasmin Rashid, Ejaz Chaudhry, Mian Mehmood-ur-Rasheed, Umar Sarfraz Cheema and Khadija Shah among those sentenced
  • The court acquitted Shah Mahmood Qureshi, a senior member of Khan’s PTI opposition party, in the case, local media widely reports

ISLAMABAD: A Pakistani anti-terrorism court (ATC) on Tuesday sentenced top aides of former prime minister Imran Khan to 10 years in prison, but acquitted Shah Mahmood Qureshi, a former foreign minister, in a case related to 2023 riots, Khan’s party and local media said.

The riots erupted after Khan was briefly arrested in Islamabad on corruption charges on May 9, 2023, with his supporters attacking government buildings and military installations.

Thousands of Khan’s Pakistan Tehreek-e-Insaf (PTI) party members and supporters were later detained and hundreds were charged under anti-terrorism laws in a sweeping crackdown, with some cases referred to military courts.

While a written order of Tuesday’s judgment by Lahore ATC judge Manzar Ali Gul was not available at the time of filing, the verdict was widely reported by Pakistani print and electronic media outlets and confirmed by the PTI.

“An anti-terrorism court in Lahore sentenced Dr. Yasmin Rashid, Ejaz Chaudhry and others to 10 years in prison over a May 9 riots case,” PTI spokesman Syed Zulfiqar Bukhari said in a text message to reporters.

The court also sentenced PTI’s Mian Mehmood-ur-Rasheed and former Punjab governor Umar Sarfraz Cheema to 10 years in prison, while Khadija Shah was handed down a five-year sentence.

The PTI denies inciting supporters to violence in May 2023 and says the government is using the protests as a pretext to victimize the party. The government denies political persecution.

This is the second such verdict against PTI members in less than a month.

On Aug. 25, an ATC in Faisalabad convicted 75 out of 109 accused persons for an attack on the residence of then-Minister for Provincial Coordination Rana Sanaullah during the May 2023 riots.

Among those sentenced to 10 years were senior Khan aides, Omar Ayub Khan, Shibli Faraz and Zartaj Gul Wazir as well as Sheikh Rashid Shafiq, Rai Murtaza Iqbal, Kanwal Shauzab, Rai Hassan Nawaz, Ahmad Chattha, Ansar Iqbal, Bilal Ijaz, Ashraf Sohna, Mehr Javed and Shakeel Niazi.

Prior to the Aug. 25 verdict, courts in Lahore and Sargodha also handed down similar sentences of up to 10 years to other PTI leaders and workers linked to the May 2023 riots.

Khan has himself been jailed since August 2023, when he was convicted of illegally selling state gifts, a ruling that also barred him from contesting the 2024 general elections. He is currently serving a 14-year jail sentence in a land graft case he says is politically motivated to keep him away from public office.

Khan, ousted in a no-confidence vote in April 2022, has dismissed all cases against him and other party leaders and members as politically motivated. The government denies this and says PTI uses violent protests to derail economic progress and destabilize the country.

Pakistan’s top court last week granted bail to Khan in eight May riot cases.


At Islamabad talks, Pakistan and Turkiye pledge to take bilateral trade to $5 billion

At Islamabad talks, Pakistan and Turkiye pledge to take bilateral trade to $5 billion
Updated 09 September 2025

At Islamabad talks, Pakistan and Turkiye pledge to take bilateral trade to $5 billion

At Islamabad talks, Pakistan and Turkiye pledge to take bilateral trade to $5 billion
  • Bilateral trade volume between Turkiye, Pakistan rose by nearly 30 percent year-on-year in 2024 to reach $1.4 billion
  • Both countries have moved closer since Ankara’s public support for Islamabad in its standoff with India in May

ISLAMABAD: Pakistan and Turkiye on Tuesday concluded their two-day Joint Ministerial Commission (JMC) talks in Islamabad, the Pakistani economic affairs ministry said, with both sides aiming to take their bilateral volume to $5 billion.

The session was preceded by extensive inter-ministerial consultations and coordination between both sides, including through the High-Level Strategic Cooperation Council (HLSCC), Joint Standing Committees (JSCs), and diplomatic missions. A comprehensive draft protocol was reviewed in advance, with the final technical session successfully resolving key areas of cooperation, according to the Pakistani ministry.

The JMC is a cornerstone institutional mechanism for bilateral economic cooperation established in 1975. The discussions at the session, co-chaired by Commerce Minister Jam Kamal Khan and Turkish National Defense Minister Yaşar Güler, encompassed 24 key sectors, including Trade and Investment, Energy, Information and Communication Technology, Banking and Finance, Industrial Cooperation, Education, Tourism and Climate Change.

“A major highlight was the mutual commitment to enhance bilateral trade to USD 5 billion, with the first in-person round of negotiations for the Trade in Goods Agreement scheduled for October 2025,” the Pakistani economic affairs ministry said in a statement. “Both sides agreed to deepen business-to-business linkages, facilitate digital trade, and streamline customs cooperation.”

Bilateral trade volume between Turkiye and Pakistan rose by nearly 30 percent year-on-year in 2024 to reach $1.4 billion, according to Turkish state media.

Pakistan and Turkiye have moved closer since Ankara’s public support for Islamabad during its four-day skirmish with India in May. The military forces of the two Muslim-majority countries have since then resolved to forge stronger ties in defense and trade amid regional tensions.

At the ministerial talks in Islamabad, both sides reiterated their commitment to regional connectivity by agreeing to expedite the operationalization of the Islamabad–Tehran–Istanbul (ITI) Railway Corridor and advance work on the proposed TURPAK Transport Corridor. Cooperation will also expand in the maritime sector, including ship recycling and port development, according to the statement.

In the energy sector, both countries agreed to establish Sub-Working Groups to explore collaboration in renewables, hydrocarbons, hydrogen, mining, LNG, and electric vehicle infrastructure. Further cooperation was pledged in electricity distribution, transmission modernization, and hydropower development. Pakistan and Turkiye will also organize an IT Business Forum, while in the agriculture field, the two sides agreed to collaborate in livestock health, irrigation, fisheries, and the development of digital crop surveillance systems.

“The Ministry of Economic Affairs welcomes the renewed momentum in Pakistan–Türkiye economic relations and looks forward to the timely implementation of the key decisions and projects outlined during this session,” the statement read. “The outcomes reaffirm the shared vision of both nations to build a deeper, broader, and more strategic economic partnership.”

Separately, the Turkish defense minister called on Prime Minister Shehbaz Sharif in Islamabad, with both sides reaffirming their support for each other’s national interests and agreeing to continue working closely to elevate their partnership.

“Highlighting Pakistan’s investor-friendly policies, the Prime Minister also invited Turkish companies to expand their investment footprint in Pakistan,” Sharif’s office said.


Pakistani, Chinese firms to invest $12 million in fishmeal plant at Gwadar Port

Pakistani, Chinese firms to invest $12 million in fishmeal plant at Gwadar Port
Updated 09 September 2025

Pakistani, Chinese firms to invest $12 million in fishmeal plant at Gwadar Port

Pakistani, Chinese firms to invest $12 million in fishmeal plant at Gwadar Port
  • Pakistan has set a seafood export target of $600 million for the 2025–26 financial year
  • The venture will source fish from Arabian Sea to produce feed-grade fishmeal in China

ISLAMABAD: Pakistan’s TECNO Group and Chinese MAYCOM Group will invest $12 million to establish a joint fishmeal processing plant at Gwadar Port in Pakistan’s Balochistan province, Pakistani state media reported on Tuesday.

The agreement for the joint venture was signed during Prime Minister Shehbaz Sharif’s visit to Beijing last week, amid Islamabad’s efforts to boost seafood exports from the underdeveloped coastal regions in Pakistan.

Sharif’s six-day visit to China saw the signing of 21 memorandums of understanding and agreements worth $4.2 billion between the two countries to boost business-to-business cooperation across various sectors.

The fishmeal project will source sardines and other fresh fish from the Arabian Sea near Gwadar to produce feed-grade fishmeal and fish oil for aquaculture markets in southeastern China, the Associated Press of Pakistan (APP) news agency reported.

“Under the partnership, TECNO will hold a controlling stake in the joint venture, which also includes the third-party company, CYCLON, and will oversee local resource procurement and production in Pakistan,” the report read.

A fishmeal processing plant converts raw fish and trimmings into protein-rich fishmeal and fish oil, mainly used in animal feed for poultry and farmed fish.

MAYCOM will provide technology and oversee sales operations for the two-phase project, with the first phase requiring an initial investment of $4 million to produce an output of 15,000 tons, according to APP.

Pakistan has set a seafood export target of $600 million for the 2025–26 financial year. The country’s fisheries sector generated $465 million in earnings during FY 2024–25, according to government data, with China remaining the largest buyer.

The two groups also signed a procurement deal for 10,000 tons of Pakistani sesame seeds. They agreed to export peanuts, cottonseed and mineral products from Pakistan to China in return for Chinese solar panels, energy storage systems and new energy products.