Pakistan expects remittances to hit $43 billion, plans first Panda bond this year — finance minister

Pakistan expects remittances to hit $43 billion, plans first Panda bond this year — finance minister
The screengrab taken from a video shows Finance Minister Muhammad Aurangzeb addressing a business summit in Peshawar, Pakistan, on October 2, 2025. (@nutshellgroup/Facebook)
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Pakistan expects remittances to hit $43 billion, plans first Panda bond this year — finance minister

Pakistan expects remittances to hit $43 billion, plans first Panda bond this year — finance minister
  • The development comes as Pakistan navigates a tricky path to economic stability under a $7 billion IMF program since averting a default in 2023
  • Finance Minister Muhammad Aurangzeb mentions climate change and population growth as real threats to the $411 billion South Asian economy

ISLAMABAD: Pakistan expects its remittance inflows to rise to $43 billion this fiscal year as it plans to launch the first Panda bond, the country’s finance minister Muhammad Aurangzeb said on Thursday, amid improving macroeconomic indicators.

The development comes as Pakistan navigates a tricky path to economic stability under a $7 billion International Monetary Fund (IMF) program since averting a default in 2023.

Last year, the country’s remittance inflows increased to $38 billion in 2024, compared to $27 billion in 2023, amid efforts to formalize over $400 billion economy by curbing currency smuggling and widening tax base.

“We expect in this fiscal year the remittances to go up to about anywhere between $41-43 billion and that’s a direct function of this macroeconomic stability and a stable currency rate,” Aurangzeb said at a business summit in Peshawar.

The minister shared that Islamabad made a $500 million repayment for Euro bond, while the country is “well positioned” for its next payment of $1.3 billion in April.

“So now we have to go back into the international capital markets, and so God willing, before the year [2025] is out, we expect we’ll have the inaugural Panda bond issued,” he said.

A panda bond is a Chinese yuan-denominated debt instrument issued in China’s onshore bond market by foreign governments, multilateral institutions or companies. It allows overseas borrowers to access China’s vast pool of investors while diversifying funding sources.

“All these positive outcomes of economic stability, this is how it translates into getting the economy moving forward,” Aurangzeb said.

FLOOD RISKS

While he described the country’s economy to be “very resilient,” he mentioned climate change and population growth as threats to the $411 billion economy, which the World Bank says can be around $3 trillion by 2047 given its true potential is realized.

“If [we] are to realize that potential, then we have two existential issues: one [is] dealing with climate change and the other is population,” he said. “Unless we negotiate these challenges, we are not going to get there.”

Aurangzeb’s comments follow deadly floods in Pakistan that have killed 1,006 people since late June and affected millions of others, with the government assessing damages. The latest disaster struck only three years after deluges killed over 1,700 Pakistanis, affected another 33 million and caused around 30 billion in economic losses.

“Climate change is not something which is academic. It is not only adaptation. We are living it day in and day out,” he said.

“So right now, we do not have this room for an economic recovery first that we fix our economic woes and then we start addressing these issues. These have real implications for our people, for livelihoods, for our economy as we go forward.”

Sensing this urgency, the minister said, the government plans to kick in a 300-day plan to mitigate the climate crisis.

“That’s where we are working as whole of the government. We are going to help support assessments to climate change any way we can,” he said.

Similarly, Aurangzeb said, Pakistan’s annual population growth of 2.5 percent leads to issues such as poverty, malnutrition and out-of-school children.

“We are very focused on what we have to do in short to medium terms... we have to get, in terms of a direction for the country, to also negotiate these two existential issues as we go forward,” he added.


Pakistan says Israel’s obstruction of Gaza aid flotilla endangers lives, demands activists’ release

Pakistan says Israel’s obstruction of Gaza aid flotilla endangers lives, demands activists’ release
Updated 02 October 2025

Pakistan says Israel’s obstruction of Gaza aid flotilla endangers lives, demands activists’ release

Pakistan says Israel’s obstruction of Gaza aid flotilla endangers lives, demands activists’ release
  • The flotilla is latest sea-borne attempt to break Israel’s blockade of Gaza, much of which has been turned into wasteland over last two years
  • Last week, the flotilla was attacked by drones, which dropped stun grenades and itching powder on the vessels, causing damage but no injuries

ISLAMABAD: Pakistan on Thursday said that Israel’s interception of the Global Sumud Flotilla, which was en route to Gaza, endangers civilian lives and demanded the release of all activists aboard the vessels, reiterating its call for a ceasefire in Gaza and an end to its blockade.

The Global Sumud Flotilla, which was carrying medicine and food to Gaza, consisted of more than 40 civilian boats carrying about 500 activists, lawyers and parliamentarians, including a Pakistani senator Mushtaq Ahmed Khan.

Israeli forces boarded several boats in the flotilla carrying aid to Gaza and took them to an Israeli port on Wednesday, disrupting a protest that has become one of the most high-profile symbols of opposition to Israel’s blockade.

Pakistan’s foreign office said it strongly condemns the interception of the flotilla to deliver much needed humanitarian assistance to Gaza as a breach of Israel’s obligations under the Fourth Geneva Convention.

“The unlawful detention of international activists onboard the flotilla constitutes yet another flagrant violation of international law and international humanitarian law by Israel, and endangers the lives of innocent civilians,” the Pakistani foreign office said.

“Pakistan reiterates its call for an immediate, unconditional, and permanent ceasefire across all Occupied Palestinian Territories; the lifting of the illegal blockade of Gaza; unfettered access and provision of humanitarian assistance to the Palestinian people.”

The flotilla is the latest sea-borne attempt to break Israel’s blockade of Gaza, much of which has been turned into a wasteland by almost two years of war that has killed over 65,000 Palestinians. The flotilla’s organizers denounced Wednesday’s raid as a “war crime.” They said the military used aggressive tactics, including the use of water cannon but that no one was harmed.

A video from the Israeli foreign ministry verified by Reuters showed the most prominent of the flotilla’s passengers, Swedish climate campaigner Greta Thunberg, sitting on a deck surrounded by soldiers.

The flotilla’s progress across the Mediterranean Sea had garnered international attention as nations including Turkiye, Spain and Italy sent boats or drones in case their nationals required assistance, even as it triggered repeated warnings from Israel to turn back.
Pakistan, which does not diplomatic relations with Israel, called for immediate release of all humanitarian workers and activists onboard the flotilla and accountability for Israel’s repeated violations of international law.

“Pakistan reaffirms its unwavering support and solidarity with the Palestinian people in their just struggle for the realization of their inalienable right to self-determination and for the establishment of a viable, independent, sovereign and contiguous State of Palestine, based on pre-1967 borders,” its foreign office said.

The flotilla had hoped to arrive in Gaza on Thursday morning if it was not intercepted. This was the second time the flotilla was approached on Wednesday. Before dawn, the mission’s organizers said two Israeli “warships” had encircled two of the flotilla’s boats and scrambled its communications.

Last week, the flotilla was attacked by drones, which dropped stun grenades and itching powder on the vessels, causing damage but no injuries. Israel did not comment on that attack, but has said it will use any means to prevent the boats from reaching Gaza.


Qatar Charity mobilizes emergency relief after floods kill over 1,000 in Pakistan

Qatar Charity mobilizes emergency relief after floods kill over 1,000 in Pakistan
Updated 02 October 2025

Qatar Charity mobilizes emergency relief after floods kill over 1,000 in Pakistan

Qatar Charity mobilizes emergency relief after floods kill over 1,000 in Pakistan
  • The floods have damaged 12,569 homes, 1,981-km of roads and washed away 6,509 livestock, besides inundating standing crops on hundreds of thousands of acres
  • The government of Prime Minister Shehbaz Sharif is still assessing the damages from the latest deluges, which come just three years after the 2022 cataclysmic floods

ISLAMABAD: Qatar Charity has distributed emergency relief aid, including food baskets, hygiene kits and medical camps, in flood-affected communities in Pakistan, it said on Wednesday, after deluges killed more than 1,000 people.

The floods, triggered by heavy monsoon rains and India’s release of excess water, have killed 1,006 people in Pakistan since Jun. 26 and submerged vast tracts of land, mainly in Punjab province where over 4 million people have been affected.

The government of Prime Minister Shehbaz Sharif is still assessing the damages from the latest deluges, which come just three years after the 2022 floods that inundated a third of the country, affected 33 million people, and caused an estimates loss of $30 billion.

Qatar Charity, which aims to provide support for vulnerable communities through robust social welfare systems, has organized free medical camps, distributed 500 hygiene kits and delivered 2,500 dry food baskets to the flood-affected Pakistanis as part of its aim to support vulnerable communities internationally.

“Since late June, Qatar Charity has been actively engaged in addressing the devastating impacts of the ongoing monsoon floods in Swat, Shangla, in KP and Jhang, Muzaffargarh in Punjab,” it said.

“Qatar Charity rapidly activated its emergency response across affected and at-risk areas, working with provincial governments, disaster management authorities, UNICEF and communities to deliver life-saving assistance in food security, health, nutrition, and WASH (Water, Sanitation, and Hygiene).”

It said the response prioritized life-saving community needs while strengthening coordination and information management for effective multi-sectoral action.

The floods have damaged 12,569 homes, 1,981 kilometers of roads and washed away 6,509 livestock, besides inundating standing crops on hundreds of thousands of acres of land.

“With floodwater everywhere, we had no access to roads or food. My children were crying in hunger,” Shahnaz Bibi, 38, whose home and livestock were destroyed, was quoted as saying by the charity. “The Qatar Charity team delivered a food package to my doorstep. This is truly a blessing from Allah.”

Shakir Ullah, another 40-year-old beneficiary, shared that he lost four of his relatives to the recent floods.

“My home was destroyed, and I am now staying at a relative’s house with no income and no access to roads,” he said. “Qatar Charity reached out to me and provided a food pack that will sustain me for more than a month.”

The charity’s Rapid Needs Assessment (RNA), in collaboration with United Nations agencies and other stakeholders, identified in Khyber Pakhtunkhwa over 1.57 million people affected with critical gaps in nutrition, education, and WASH services, while in Punjab, it identified 4.2 million people affected and 2.8 million displaced in the 18 targeted districts, according to the charity.

It said it had managed to conduct free general medical screening camps in Punjab’s Jhang and Muzaffargarh and reached about 22,000 people, while it reached about 30,000 people through free eye medical screening camps in the two districts.

Additional, Qatar Charity, it will sign an agreement to End Child Wasting, Nutrition Prevention, Promotion and Management Intervention in four flood-affected districts of Punjab.


Six protesters, three policemen killed in Azad Kashmir unrest as government calls for dialogue

Six protesters, three policemen killed in Azad Kashmir unrest as government calls for dialogue
Updated 02 October 2025

Six protesters, three policemen killed in Azad Kashmir unrest as government calls for dialogue

Six protesters, three policemen killed in Azad Kashmir unrest as government calls for dialogue
  • The Azad Jammu and Kashmir government’s call to resume dialogue follows shutter-down strikes, wheel-jam protests and clashes across the disputed northern region
  • The protesters demand an end to special allowances for government officials, electricity and wheat at discounted rates, similar to subsidies in other parts of Pakistan

ISLAMABAD: At least six protesters and three policemen have been killed in days of protests in Azad Kashmir, the region’s Press Information Department (PID) said on Wednesday, with the government urging the demonstrators to return to dialogue with authorities.

The statement came hours after Azad Jammu and Kashmir (AJK) Prime Minister Chaudhry Anwar ul Haq appealed for an end to protests organized by the Jammu Kashmir Joint Awami Action Committee (JKJAAC) in the disputed northern region since Sept. 29, saying the government is ready to talk to the protesters.

The call to resume dialogue followed shutter-down strikes, wheel-jam protests and clashes across Azad Kashmir. The JKJAAC civil rights alliance is demanding an end to special allowances for government officials and the supply of electricity and wheat at discounted rates, similar to subsidies in other parts of Pakistan.

The protests have turned violent over the course of the last three days as protesters and police came face to face and clashed at various locations. JKJAAC leaders accuse the government of reneging on promises and say at least 12 people have been killed, claims denied by regional authorities.

“As a result of the violent protests of the Joint Awami Action Committee in Azad Kashmir, six civilians and three police personnel have been killed so far,” the AJK PID said in a statement. “About 172 police personnel have been injured, of which 12 police personnel are seriously wounded. Fifty civilians have also been injured in the violent protests.”

The statement appealed to the public to remain peaceful, not to listen to “fake news on social media under a specific agenda” and to share only authentic and verified news.

Kashmir is divided between India and Pakistan, but both claim it in its entirety. Azad Kashmir is the part administered by Pakistan.

“For resolving any conflict, the best and most well-known way in the world, which has been used continuously and will continue to be used, is through dialogue,” AJK PM Haq said at a press conference on Wednesday.

“The government is ready to talk to you [JKJAAC], your legitimate demands will be resolved as soon as possible. The path of violence will only go toward the loss of human lives.”

The JKJAAC rejected the government’s claims and its member, Syed Hafeez Hamdani, said in a written statement that 12 of its supporters had been killed in the protests and more than 200 injured.

“All have suffered gunshot wounds,” the statement read. “The claim that our demands have been accepted is contrary to the facts… If our demands had been accepted, we would have had no reason to keep protesting.”

Meanwhile, Pakistan PM Shehbaz Sharif expressed concern over the situation in Azad Kashmir, according to his office.

“The Prime Minister directed that the law enforcement agencies should exercise restraint and tolerance with the protesters,” Sharif’s office said. “The Prime Minister said that public sentiments should be respected and any unnecessary harshness should be avoided.”

He said his government was always ready to resolve the problems of its Kashmiri brothers.

“The Prime Minister, expressing deep concern over the unpleasant incidents that took place during the protests, has ordered a transparent investigation into the incident,” it added.

In May 2024, a similar wave of protests paralyzed the region. After six days of strikes and violent clashes that left at least four dead, PM Sharif approved a grant of Rs 23 billion ($86 million) for subsidies on flour and electricity, and a judicial commission to review elite privileges.

Protest leaders suspended their campaign at that time but warned that failure to implement the package would fuel fresh unrest.


Three die in Karachi sewers, casting spotlight on Pakistan’s lethal manual scavenging industry

Three die in Karachi sewers, casting spotlight on Pakistan’s lethal manual scavenging industry
Updated 02 October 2025

Three die in Karachi sewers, casting spotlight on Pakistan’s lethal manual scavenging industry

Three die in Karachi sewers, casting spotlight on Pakistan’s lethal manual scavenging industry
  • Around 100 manual scavengers die each year in Pakistan, including about 30 in Karachi
  • The work forces people to descend into clogged drains filled with toxic gases and liquids

KARACHI: Late on a humid Sunday night earlier this month, four sanitation workers left their small homes in United Colony, a predominantly Christian neighborhood in Karachi’s Saddar Town, to do what they had done countless times before: descend into the city’s underbelly to clear blocked drains. 

By dawn, three of them were dead.

The victims — George Masih, 43, his 16-year-old son Vishal, and their 18-year-old relative Sahil Khurshid — collapsed one after another inside a sewer filled with poisonous gas. 

Only Sahil’s younger brother, 14-year-old Raza, survived to tell the story.

“They said they had some work to do, something about going to the hole. I didn’t know they meant a gutter,” Maryam Ruqaiya, Sahil’s mother, said, recalling the deadly incident that unfolded in the early hours of September 22.

The deaths have once again thrust a harsh spotlight on Pakistan’s reliance on manual scavenging, the hazardous and degrading work of physically cleaning sewers and drains, still largely performed by members of marginalized communities like Christians.

“First, George went in. Then Sahil. And after Sahil, Vishal,” Ruqaiya said as she stood at the gate where she had once waited for her son to return from work. 

Her younger son Raza, she said, was screaming helplessly as one man after another collapsed inside the sewer.

“He was screaming, ‘Save them! Save them! Save them!’” she said.

Raza’s own account is seared with trauma.

“We cleaned six manholes. At the seventh, George went down. He shouted, ‘I can’t breathe, the gas has got me. Pull me up,’” Raza recalled, pointing to the manhole in Usmanabad where it happened. 

“We started pulling him out, but the rope snapped. He fell back in.”

Panicked, Sahil and Vishal rushed in one after the other to rescue George. They too were overcome by the toxic fumes.

“I started crying, screaming,” Raza said. “No one came to help. Only one man arrived, but by then, it was too late.”

“INDIGNITY AND INHUMANITY”

In Pakistan, most sanitation workers are Christians. They are often sent into toxic drains without protective gear, a practice human rights advocates say amounts to state-sanctioned homicide.

“I’ve gone into drains as deep as 25 feet, even into fully clogged ones,” said Shamoon Masih, a sanitation worker with 14 years of experience. “You have to hold your breath when you go in, but you can only do it for about a minute.”

Naeem Sadiq, an industrial engineer and activist who has campaigned for decades to end manual scavenging, said about 30 workers die each year in Karachi alone and around 100 across Pakistan, though the real toll is likely higher due to underreporting.

“It is a process in which one is almost certain to die. If you survive, you are lucky,” Sadiq told Arab News, citing poisonous gases, chemical exposure and powerful water currents as the primary risks. “If your foot slips, you die.”

While many countries have outlawed the manual cleaning of sewers, Pakistan continues to rely on human entry, sometimes even when machines are available.

“These are ceremonial machines since they stand on the sides and these people are put into the sewage gutters,” Sadiq said. “This is not only a mistake of the government, but [this amounts to] first-degree murder.”

Authorities have offered the families of the three victims Rs800,000, about $2,900, in total compensation. 

But Sadiq argued that payouts miss the point.

“The issue is not about compensation,” he said. “It relates to why we still send our people into the depths of the gutters, into indignity and inhumanity, kill them there and then remain silent before doing the same thing again next week?”

Sadiq and other activists plan to file a public interest litigation seeking a nationwide ban on manual scavenging, similar to one imposed by the Supreme Court of India.

SLOW REFORM

Officials acknowledge the dangers of manual scavenging but point to structural barriers that make reform difficult.

“This work falls under the Karachi Water and Sewerage Corporation (KWSC), and it depends on the area-wise jurisdiction,” said Daniyal Sial, spokesperson for the Karachi Metropolitan Corporation. 

“Whoever is found responsible, an inquiry is conducted first. After that, whatever action is required, either by the government or by the concerned department, is certainly taken.”

Sial said overlapping jurisdictions among more than 30 civic agencies and crumbling sewerage infrastructure have slowed change. He added that the KWSC, with World Bank support, is expanding its fleet of suction vehicles to reduce reliance on manual labor.

“Hopefully, within the year, we’ll begin to see concrete results,” he said.

For families like Ruqaiya’s, such promises offer little solace. Her son Sahil had been her only source of income and support. He constantly worried about her heart condition and whether she had enough money for medication.

“He used to say, ‘You have heart disease. Your medication is running out,’” she recalled. “Now what will I do?”

George also leaves behind a young son and three daughters.

“Not even one is left,” Ruqaiya said of the three men who died. “We just want justice.”


Pakistan reopens Angoor Adda border with Afghanistan after two-year closure

Pakistan reopens Angoor Adda border with Afghanistan after two-year closure
Updated 02 October 2025

Pakistan reopens Angoor Adda border with Afghanistan after two-year closure

Pakistan reopens Angoor Adda border with Afghanistan after two-year closure
  • Crossing seen as vital to boosting bilateral trade, easing congestion at Torkham route
  • Traders say new facilities by Pakistan’s National Logistics Cell will create jobs, expand commerce

PESHAWAR: Pakistan this week formally reopened the Angoor Adda border crossing with Afghanistan after nearly two years, a move officials and traders said would revive cross-border commerce, generate local employment and improve connectivity in the country’s northwest.

The crossing, which lies in the hilly Barmal Valley connecting South Waziristan district in Pakistan’s Khyber Pakhtunkhwa province with Afghanistan’s Paktika province, was closed in 2023 due to security concerns. Its reopening is expected to relieve pressure on the Torkham border in Khyber district, currently the busiest route between the two countries but often plagued by congestion and long delays.

Analysts say the decision underscores Pakistan’s efforts to expand regulated trade with Afghanistan, which remains one of its top export markets despite frequent border disruptions. Official figures place current bilateral trade at around $800–900 million annually, though business leaders estimate volumes could rise to $3–4 billion if crossings are streamlined and incentives provided.

Saif-u-Rehman, president of the South Waziristan Chamber of Commerce and Industry, said the reopening would significantly revive trade and employment. 

“Nearly 300 trucks used to cross the border daily before it was shut due to certain reasons,” he said, adding that the new terminal developed by the National Logistics Cell (NLC), a state-run logistics and engineering organization, would allow movement of goods to increase manifold.

Rehman said the operationalization of customs and immigration facilities had already created jobs for about 50 local youth, while nearly 10,000 laborers were engaged directly or indirectly in cross-border trade. 

He noted that the introduction of proper visa and passport checks would also regulate pedestrian crossings and help stabilize the area.

“Making this border fully operational will ease pressure on Torkham and allow Afghan passengers and patients to reach Islamabad, Lahore or Multan within a day for medical treatment,” Rehman added. 

He said Afghanistan mainly exports fresh and dry fruits and vegetables through Angoor Adda, while Pakistan exports electronics, textiles, medicines and other food products.

Rehman urged Kabul to reciprocate by upgrading its facilities. 

“The Afghan government should match Pakistan’s efforts and encourage businesses at Angoor Adda,” he said.

Kabul has not yet commented on the opening. 

“RAY OF HOPE“

Muqtasid Ahsan, Secretary General of the Sarhad Chamber of Commerce and Industry, said the reopening of the border crossing would stimulate economic growth across southern Khyber Pakhtunkhwa and South Punjab by strengthening regional value chains and supporting local businesses. 

“It will also drive infrastructure development and human capital growth, creating new employment opportunities,” he added.

He said the crossing would ease congestion at Torkham, where long delays in clearing Afghan and Central Asian consignments had driven many traders to use Iranian routes instead. 

“Reducing pressure on Torkham will restore confidence among Afghan and Central Asian traders,” he said.

Ahsan estimated current Pakistan-Afghanistan trade volume at $800–900 million annually but said volumes could reach $3–4 billion with further facilitation. He called for Angoor Adda to be integrated into the Export Rebate Schemes and the national transit trade policy “to provide attractive incentives for Afghan and Central Asian consignments and strengthen Pakistan’s economy.”

Local business leader Muqarab Khan Wazir said the reopening had fulfilled a long-standing demand of both traders and residents, most of whom rely on border commerce. 

He praised the NLC for completing customs offices, immigration facilities and passenger waiting areas within just 30 days. 

“Now, Angoor Adda provides direct and easier access to Pakistani cities, sparing residents of Afghanistan’s Paktika province the long journey through Torkham,” he said.

Junaid Altaf, president of the Sarhad Chamber of Commerce and Industry, described the move as “a ray of hope” for the business community. 

“It will multiply trade not only with Afghanistan but also facilitate commerce with Central Asian countries,” he said, urging Pakistan to prioritize not just exports but also imports and transit trade with Afghanistan and states such as Uzbekistan. 

“Greater trade and commerce are extremely necessary between Kabul and Islamabad to achieve peace and development in the region,” he added.

Tribal elder Malik Anwar Amin said the long-awaited reopening would ease the movement of goods and people, provide a formal channel for trade, and help curb illicit activities:

“The most important thing is that people of this region will now earn their livelihood at the border to feed their extended families. Also, it will leave a positive impact on the security situation.”