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ISLAMABAD: President Asif Ali Zardari this week assured Chinese company Shanghai Electric of resolving all of its outstanding issues “amicably,” days after it terminated a $1.8 billion deal to acquire Pakistan’s K-Electric. 

Shanghai Electric’s board of directors decided to terminate the deal to acquire the Pakistani power utility company on Sept. 9, citing Pakistan’s changing business conditions and K-Electric’s failure to meet conditions. The Chinese company was in talks to acquire the majority stake in KE since 2016, delayed due to regulatory approvals and liquidity constraints as a consequence of mounting circular debt plaguing the country’s power sector.

Zardari arrived in China last Friday for a ten-day official visit to the country, which comes on the heels of Prime Minister Shehbaz Sharif’s trip to China last week. The Pakistani president met Shanghai Electric’s Chairman Wu Lei at the company’s office in Shanghai.

He was accompanied by his daughter and First Lady Aseefa Bhutto Zardari and his son, former foreign minister Bilawal Bhutto Zardari. 

“The President thanked him for the contribution of Shanghai Electric in meeting Pakistan’s energy needs, generating employment and supporting socio-economic development,” state broadcaster Radio Pakistan reported on Monday. 

“He assured Shanghai Electric that any outstanding issues would be resolved amicably and in a spirit of mutual cooperation.”

The state broadcaster said Lei expressed gratitude to the Pakistani government for providing security arrangements to Shanghai Electric employees working in Pakistan. In response, Zardari reaffirmed Pakistan’s commitment to enhancing security measures for Chinese nationals in the country.

Chinese nationals working on various projects in Pakistan have been targeted in attacks conducted by separatist militants in the country. These attacks have worried Beijing, which has pressed Islamabad to provide adequate security to its nationals. 

During his visit, Zardari witnessed the signing of a memorandum of understanding for the establishment of a coal gasification plant in Sindh’s Tharparkar district. The Pakistani president invited Shanghai Electric to explore further investment opportunities to modernize Pakistan’s power transmission and distribution network.

Pakistan’s power sector is riddled with challenges which include frequent and lengthy power outages, high transmission losses, dependence on expensive imported fuels, limited renewable energy sources and most of all, a massive circular debt. The circular debt is a cascade of unpaid government subsidies that results in accumulation of debt on distribution companies.

Pakistan has sought help from international partners to improve its energy infrastructure by modernizing its transmission system and promoting renewable energy projects.

KARACHI: Pakistan’s BankIslami has been named the ‘Best Islamic Banking Brand’ at the Global Islamic Finance Awards (GIFA) 2025 in Kuala Lumpur, Malaysia, the bank said on Monday, earning international recognition for innovation, customer-centric services and contribution to the growth of Islamic finance in the country.

GIFA is a globally recognized platform that honors institutions and individuals for contributions to Islamic banking and finance, according to a BankIslami statement.

It recognized BankIslami’s efforts to advance Islamic banking through awareness and access initiatives, interest-free financial solutions, and programs to expand financial inclusion.

The bank has played a pioneering role in developing Pakistan’s Islamic finance landscape, from deploying biometric ATMs to introducing Islamic digital banking solutions.

“Advancing Riba-free (interest-free) banking in Pakistan is a national cause, and as a financial institution, we see it as our responsibility to join hands and contribute,” BankIslami President Rizwan Ata was quoted as saying.

“We remain dedicated to our mission of Saving Humanity from Riba by expanding access, keeping products simple and transparent, and delivering service that earns trust.”

In May this year, the Pakistani central bank said Islamic banking assets had for the first time reached Rs11.5 trillion ($40.7 billion) by the end of March 2025 as the country actively moved toward implementing a fully Shariah-compliant financial system.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk Islamic bonds to replace interest-based treasury bills and investment bonds.

With a network of more than 500 branches in over 210 cities, it offers Shariah-compliant financial products for individuals and businesses, including Hajj savings plans and small-media enterprise (SME) financing.

“BankIslami remains committed to advancing its mission by rolling out new Shariah-compliant financial tools, extending reach to more Pakistani households through technology-driven solutions, building partnerships with community-based organizations, and promoting financial literacy for inclusive and ethical banking,” it said.