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Pakistan aims to lower business costs to spur growth, investment and jobs

Pakistan aims to lower business costs to spur growth, investment and jobs
Shopkeepers break their fast at a market during the Islamic holy fasting month of Ramadan in Karachi on March 9, 2025. (AFP/ file)
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Updated 10 min 41 sec ago

Pakistan aims to lower business costs to spur growth, investment and jobs

Pakistan aims to lower business costs to spur growth, investment and jobs
  • The country is currently navigating a tricky path to economic recovery under a $7 billion IMF program since averting a default in 2023
  • The government has reduced energy costs, halved interest rates and ensured faster approvals, simpler procedures for sake of regulatory ease

ISLAMABAD: Pakistan is taking policy measures to increase the ease of doing business in a bid to boost growth, investment and employment opportunities in the South Asian country, the country's finance adviser said on Sunday.

The South Asian country of more than 241 million people is currently navigating a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default in 2023.

Besides introducing structural reforms relating to expansion of the country's tax base and privatization of loss-making entities, the government of Prime Minister Shehbaz Sharif is striving to boost foreign investment and trade.

Khurram Schehzad, an adviser to the finance minister, said the government has reduced energy costs from Rs38/unit to Rs23/unit, interest rate to 11% from an all-time high of 22% in June last year among other measures.

"The direction is clear: lowering the cost of doing business to make way for growth, investment and jobs," Schehzad said on X, adding that the tax structure has been rationalized, while the government is ensuring faster approvals and simpler procedures to increase regulatory ease for businesses.

Pakistani tax authorities have shifted their focus from salaried individuals and corporate sector to bringing people, who do not file their wealth statements, by increasing compliance and enforcement.

For the first time in 14 years, the South Asian country posted a current account surplus of $2.1 billion (0.5% of GDP) in the outgoing fiscal year 2024-25 that ended in June, marking a sharp turnaround from a $2 billion deficit in FY2023-24, driven by a 27% increase in remittances and a 16% drop in services deficit.

The government is now pursuing privatization, tax and energy sector reforms, and an accelerated digitalization drive to strengthen the economy. These measures are designed to improve fiscal stability and rebuild confidence among both investors and international lenders.

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India and China resume direct flights as ties improve

India and China resume direct flights as ties improve
Updated 13 min 7 sec ago

India and China resume direct flights as ties improve

India and China resume direct flights as ties improve
  • The neighbours remain strategic rivals competing for regional influence, but ties have eased gradually since a deadly border clash in 2020
  • India's government said the resumption of flights will boost 'people-to-people contact,' aid the 'gradual normalisation of bilateral exchanges'

KOLKATA: India and China resumed direct flights on Sunday after a five-year suspension, a move important both for trade and a symbolic step as Asia's giants cautiously rebuild relations.

Data from tracking website Flightradar24 showed the flight, operated by India's largest commercial airline IndiGo, took off from Kolkata's Subhash Chandra Bose International Airport in eastern India at 10:00 pm (1630 GMT) for Guangzhou in China.

The neighbours -- the world's two most populous nations -- remain strategic rivals competing for regional influence, but ties have eased gradually since a deadly Himalayan border clash in 2020.

India's government said the resumption of flights will boost "people-to-people contact" and aid the "gradual normalisation of bilateral exchanges".

Warming relations with Beijing come as India's ties with key trade partner Washington falter, following US President Donald Trump's order imposing punishing 50 percent tariffs.

Trump's aides have accused India of fuelling Russia's war in Ukraine by buying Moscow's oil.

There are already regular flights between India and Hong Kong, while additional services from the capital New Delhi to Shanghai and Guangzhou will begin in November.

"The direct air link will reduce logistics and transit time," said Rajeev Singh, head of the Indian Chamber of Commerce in Kolkata, telling AFP it would benefit businesses.

India's eastern port city of Kolkata has centuries-old ties with China dating back to British rule, when Chinese migrants arrived as traders.

Indo-Chinese fusion food remains a beloved staple of the city's culinary identity.

"It's great news for people like us, who have relatives in China," said Chen Khoi Kui, a civil society leader in Kolkata's Chinatown district of Tangra. "Air connectivity will boost trade, tourism and business travel."

'LONG-TERM CHALLENGE'

India runs a significant trade deficit with Beijing, relying heavily on Chinese raw materials for industrial and export growth.

The thaw between New Delhi and Beijing followed meetings between their leaders in Russia last year and in China in August.

India's imports from China surged to more than $11 billion last month, up more than 16 percent compared with September 2024, according to New Delhi's commerce ministry.

Exports from India to China were $1.47 billion, modest by comparison, but up around 34 percent year-on-year.

Direct flights between the two countries were suspended during the Covid-19 pandemic, halting roughly 500 monthly services.

Relations then plummeted after the 2020 border skirmish between the nuclear-armed nations, when at least 20 Indian and four Chinese soldiers were killed.

New Delhi responded by tightening restrictions on Chinese investments and banning hundreds of apps, including TikTok.

India then deepened ties with the US-led Quad alliance -- also including Japan and Australia -- aimed at countering China's influence in the Asia-Pacific.

Both sides have troops posted along their contested 3,500-kilometre (2,175-mile) high-altitude frontier.

But this month, soldiers on each side exchanged gifts of sweets on the Hindu festival of Diwali, "marking a gesture of goodwill", said Yu Jing, the spokesperson of the Chinese Embassy in India.

The Indian Express, in an editorial after Indian Prime Minister Narendra Modi and China's President Xi Jinping met in August, said improving ties with Beijing "sends an appropriate signal" to Washington.

But relations still have far to go.

"Managing an increasingly assertive China remains India's long-term challenge," the newspaper added.

"These fundamental realities remain unchanged, regardless of Trump's whimsical diplomatic actions."

 


Pakistan coach backs Azam’s return for South Africa T20s

Pakistan coach backs Azam’s return for South Africa T20s
Updated 26 October 2025

Pakistan coach backs Azam’s return for South Africa T20s

Pakistan coach backs Azam’s return for South Africa T20s
  • Azam, 31, has been recalled for the first time since December last year
  • Mike Hesson believes the timing is right for Azam to make a comeback

RAWALPINDI: Pakistan coach Mike Hesson has thrown his support behind Babar Azam’s return to the T20 squad, as the three-match series against South Africa starts in Rawalpindi on Tuesday.

Azam, 31, has been recalled for the first time since December last year, having previously been dropped due to concerns over his strike rate in the format. But Hesson believes the timing is right for the batsman to make his comeback.

“Yes, I certainly endorse his selection,” Hesson said on Sunday. “We have rested Fakhar Zaman for this series, so it was a good opportunity to bring back Azam and I am confident he will do well.”

Azam, who captained Pakistan across all formats before stepping down in October 2024, is on the verge of a major milestone. He needs just nine runs to surpass India’s Rohit Sharma as the leading run-scorer in T20 internationals. Sharma currently has 4,231 runs from 159 matches, while Azam sits at 4,223 from 128 games.

Hesson, who took charge of the team in May, sees Azam’s return as a strategic move ahead of next year’s T20 World Cup in India and Sri Lanka.

“Azam is likely to bat at number three and it is a role that I am confident that he will be able to do well and give us some options coming into the World Cup,” he said.

Despite South Africa missing several key players, Hesson remains cautious about the threat they pose.

“Look, the squad that South Africa put together is a very dangerous side and we are wary of that,” he said, referring to the team captained by Donovan Ferreira.

South Africa will be without key batsman David Miller, who was ruled out due to a hamstring injury, and fast bowler Gerald Coetzee, sidelined with a pectoral muscle issue. Opener Aiden Markram and paceman Kagiso Rabada have also been rested for the series.

The final two matches of the series will be played in Lahore on Friday and Saturday.


‘Tu Meri’: Producers release first song of Mahira, Fawad Khan-starrer ‘Neelofar’

‘Tu Meri’: Producers release first song of Mahira, Fawad Khan-starrer ‘Neelofar’
Updated 26 October 2025

‘Tu Meri’: Producers release first song of Mahira, Fawad Khan-starrer ‘Neelofar’

‘Tu Meri’: Producers release first song of Mahira, Fawad Khan-starrer ‘Neelofar’
  • The song was unveiled at an exclusive screening at Lahore’s Sir Ganga Ram House
  • The romantic drama film is scheduled for worldwide release this winter season

ISLAMABAD: The producers of Pakistani romantic drama movie, ‘Neelofar,’ released its first song at an exclusive screening hosted in Lahore on Sunday, they said in a statement.

The long-delayed movie, which stars Fawad Khan and Mahira Khan in lead roles, is written and directed by Ammar Rasool and produced by Khan, Hassaan Khalid, Usaf Shariq.

The event was hosted by the film’s lead stars, Khan and Mahira, who welcomed guests from the entertainment, fashion and music industries at Lahore’s historic Sir Ganga Ram House, a reflection of the city’s timeless charm.

Actor Yasir Hussain served as the host, bringing warmth and wit to an intimate gathering filled with creativity and excitement. Sung by Vicky Haider, the night celebrated the launch of the film’s first music video, ‘Tu Meri,’ marking an emotional and memorable moment in Neelofar’s journey.

“Neelofar is a story that lives in emotions, and this song is its heartbeat,” Khan said, speaking at the event. “Tonight was about sharing that feeling with everyone who has believed in the film’s journey.”

Shooting for Neelofar was reportedly completed in 2020, but the COVID-19 pandemic postponed its release indefinitely. The movie is finally set for nationwide release on Nov. 28.

Tu Meri, a lyrical and emotional centerpiece of the film, captures the poetic spirit that defines Neelofar: a love story where sight is transcended by connection, and silence speaks through melody.

The film stars Khan as a writer and Mahira as Neelofar, a visually impaired yet radiant soul. It has already been hailed as one of the most touching romantic narratives to emerge from Pakistani cinema in recent years.

The event was attended by Pakistan’s leading musicians and artists, including Seemi Raheel, Zeb Bangash, Nameer Khan, HAVI, Mooroo and Ken Doll, along with several other distinguished celebrated guests who graced the occasion.

“This film is deeply personal to me. Seeing everyone respond so emotionally to the song tonight reminded me why we made Neelofar,” Mahira said.

“It’s about love in its purest, most soulful form.”

Khan and Mahira won the hearts with their performance in television serial ‘Humsafar.’ They later reunited in Bilal Lashari’s ‘The Legend of Maula Jatt,’ which shattered all box office records.

The duo is anticipated to once again create magic with their on-screen chemistry.

The cast of the movie includes, Madiha Imam, Sarwat Gilani, Atiqa Odho, Behrooz Sabzwari, Gohar Rasheed, Faisal Qureshi, Samiya Mumtaz, Rashid Farooqui, Chand Baral, Seemi Raheal, Adeel Hashmi, Hira Tareen and Navid Shahzad.


Toxic smog continues to blanket Lahore, with air quality reaching ‘hazardous’ levels

Toxic smog continues to blanket Lahore, with air quality reaching ‘hazardous’ levels
Updated 26 October 2025

Toxic smog continues to blanket Lahore, with air quality reaching ‘hazardous’ levels

Toxic smog continues to blanket Lahore, with air quality reaching ‘hazardous’ levels
  • Authorities attribute the current spike in toxic air levels to both local pollution, contaminants drifting from across the border
  • Punjab Environment Protection Agency institutes new enforcement regime to counter the problem, focusing on agricultural burning

LAHORE: A blanket of toxic smog shrouded Lahore on Sunday, pushing the city’s air quality to near-emergency levels, despite environmental authorities announcing a significant escalation in their efforts to penalize polluters.

The Air Quality Index (AQI) for the eastern Pakistani city spiked to 388 at 9am local time (0400 GMT), placing the pollution in the “Hazardous” category and renewing health concerns for millions of residents.

Authorities have attributed the current spike in the toxic air level to both local pollution and contaminants drifting from across the border.

“During smog season, the East Corridor opens, allowing Indian winds from the northeast to bring pollutants into Lahore,” said Sajid Bashir, Project Director at Punjab Environment Protection Agency.

“The recent Diwali celebrations have clearly had an impact, with migrated smog adding to our local problem.”

To counter local pollution, the department has instituted a strict new enforcement regime, focusing on agricultural burning.

“The Environment Department has, for the first time, formed quick response forces, equipped with state-of-the-art vehicles, to be present in the field round the clock,” Bashir confirmed, adding that they would “immediately extinguish” any instances of stubble burning.

Bashir also warned that farmers engaged in illegal burning face immediate prosecution, including “filing a First Information Report, arrest, and a fine.”


US sees opportunity in expanding strategic ties with Pakistan, Rubio says

US sees opportunity in expanding strategic ties with Pakistan, Rubio says
Updated 26 October 2025

US sees opportunity in expanding strategic ties with Pakistan, Rubio says

US sees opportunity in expanding strategic ties with Pakistan, Rubio says
  • Islamabad, Washington have come closer in recent months, particularly after President Donald Trump brokered a ceasefire between Pakistan, India
  • Trump this year significantly lowered tariffs on Pakistan, while both sides signed a $500 million deal in Sept. for collaboration in rare earth minerals

ISLAMABAD: Secretary of State Marco Rubio has said that the United States (US) sees an opportunity in expanding its strategic relationship with Pakistan, which does not come at the expense of Washington’s ties with India.

Rubio’s statement came in response to a question at a press briefing on Saturday whether India had raised any concerns about the “stronger relationship” between Washington and Islamabad.

Relations between the US and Pakistan have seen significant ups and downs, but the two countries have come closer in recent months after President Donald Trump brokered a ceasefire between Pakistan and India following their four-day military conflict in May.

Pakistani civilian and military leaders have gained favor with Trump since publicly endorsing him for a Nobel Peace Prize for the ceasefire, with the US president significantly lowering trade tariffs on Pakistan from 29 percent to 19 percent in July this year.

“They really haven’t – I mean, we know they’re concerned for obvious reasons because of the tensions that have existed between Pakistan and India historically. But, I think they have to understand we have to have relations with a lot of different countries,” Rubio said.

“We see an opportunity to expand our strategic relationship with Pakistan, and I think we’ve made – that’s our job, is to try to figure out how many countries we can find how we can work with on things of common interest.”

In Sept., American firm US Strategic Metals (USSM) and Pakistan’s Frontier Works Organization (FWO) signed a $500 million deal for collaboration across a range of minerals essential for the defense, aerospace and technology industries.

“The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements. This cooperation lays the foundation for scaling up toward the establishment of a USSM proprietary, highly flexible poly-metallic refinery in Pakistan,” Prime Minister Shehbaz Sharif’s office said.

“The refinery will produce intermediate and finished products dedicated to meeting the rapidly growing demand of the US market. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.”

The next steps for the MoU include forming dedicated teams to explore the full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing.

Critical minerals are a select group of non-fuel minerals and metals essential for modern manufacturing, technological advancements, and the transition to clean energy technologies like solar panels and electric vehicles but are subject to supply chain vulnerabilities.

While Pakistan is rich in gold, copper and lithium reserves as well as other minerals, its mineral sector contributes only 3.2 percent to the country’s GDP and 0.1 percent to global exports, according to official figures.

In August, Pakistani and US officials also discussed ways to strengthen Pakistan’s railways and infrastructure to support mineral extraction and transportation, the US embassy said.