Pakistan seeks US tariff access, taps Mideast funds as it re-engages global markets
Pakistan has 'successfully arranged $1 billion in commercial financing from the Middle Eastern region' and plans to launch an inaugural Panda bond while exploring a Eurobond and other international debt markets as its credit ratings improve, Aurangzeb said during a briefing with the Moody's rating agency on Tuesday.
'These changes, together with improving macroeconomic indicators and the reform momentum, would be positively acknowledged by rating agencies, further strengthening Pakistan's case to tap international markets and deepen its external sector stability,' the finance minister said.
The virtual session, attended by the State Bank governor and senior officials, also highlighted 'ongoing discussions with the United States on preferential tariff access,' which the minister described as 'making encouraging headway.'
The finance team cited key progress under Pakistan's IMF-backed economic plan. Recent reforms include 'prudent fiscal measures' in the new budget, trade and tariff liberalization for export-led growth, and steps to rationalize spending.
Aurangzeb also pointed to signs of recovery, including a sharp drop in inflation, a lower policy rate, a stable exchange rate, a current account surplus and foreign reserves rising above $14 billion by the end of June.
He underlined plans to raise the tax-to-GDP ratio to 13–13.5 percent in the coming years through technology-driven tax administration, digitization and tougher enforcement.
Under the prime minister's direct oversight, he said, a 'Rs. 2 trillion revenue delta' was achieved this year through 'autonomous efforts.'
Despite repeated external and fiscal pressures, Pakistan says it hopes improved ratings and renewed investor confidence will lower borrowing costs and keep the economy on a sustainable path.
'Pakistan is ready to carry forward this journey of resilience, reform, and recovery to unlock long-term, inclusive, and export-oriented economic growth,' Aurangzeb said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asharq Al-Awsat
an hour ago
- Asharq Al-Awsat
SABIC Announces Second Quarter 2025 Financial Results
SABIC announced its financial results for the second quarter of 2025, with an adjusted net income of SAR0.5 billion compared to an adjusted net loss of SAR0.1 billion in the previous quarter, an increase of SAR555 million compared to the previous quarter. The company's revenue in the second quarter was SAR35.6 billion, compared to SAR34.6 billion in the first quarter, an increase of 3%. Total sales volume in the second quarter was 11,779 thousand metric tons, compared to 11,477 thousand metric tons in the first quarter, an increase of 3% due to higher sales volumes, offset by lower average sales prices, together with recognizing licensing and engineering services revenue, SPA reported. SABIC CEO Abdulrahman Al-Fageeh said that as of the second quarter of 2025, SABIC has adopted adjusted financial metrics, which exclude non-operational and one-off incidents, to reflect the true operational performance and organic and sustainable growth, while maintaining full compliance with disclosure requirements of the financial market. Al-Fageeh praised SABIC's EHSS performance, pointing out that the company has achieved HSE rate of 0.07 during the first half of this year, lower than petrochemical peers globally, and its lowest over the past 10 years. The announcement of SABIC's Q2 financial results and performance was at a press conference held at its headquarters in Riyadh, where Al-Fageeh spoke about the latest developments related to the company's operations and activities. "The Board of Directors has approved the distribution of SAR4.5 billion in dividends for the first half of this year, which underscores SABIC's commitment to maximize shareholders' value and ROA, and enhance SABIC's competitive position and investor confidence, while maintaining sufficient resources to achieve financial stability and future strategic growth," he said. Al-Fageeh noted that SABIC will continue to regularly review and optimize its portfolio as part of its transformation program. This includes the closure of its cracker in Teesside, UK, as well as the initiation of several strategic options for its affiliate Gas, including a potential IPO. This comes in line with SABIC's priorities to improve focus on its core business to achieve sustainable growth, strengthen its financial position. "In line with SABIC's growth ambitions, the one million metric ton capacity MTBE project at our Petrokemya affiliate is progressing well, according to planned cost and schedule. The Engineering, Procurement, and Construction (EPC) phase is more than 95% complete and pilot commissioning will occur during Q3 2025,' he added. Al-Fageeh also stressed that SABIC continues to make progress as planned on its Fujian Petrochemical Complex in China project – a flagship project that is driving the company's strategic expansion in Asia.
Arab News
2 hours ago
- Arab News
Closing Bell: Saudi main index ends lower at 10,833
RIYADH: Saudi Arabia's Tadawul All Share Index slipped on Sunday, falling 87.17 points, or 0.80 percent, to close at 10,833.10. The total trading turnover of the benchmark index stood at SR3.39 billion ($904 million), with 62 stocks advancing and 187 declining. The Kingdom's parallel market Nomu fell 169.14 points, or 0.63 percent, to close at 26,755.84, as 30 stocks advanced while 50 retreated. The MSCI Tadawul Index also dropped, losing 11.09 points, or 0.79 percent, to end at 1,398.65. The best-performing stock of the day was Sport Clubs Co., whose share price rose 9.96 percent to SR12.37. Other top performers included Thimar Development Holding Co., which increased 6.67 percent to SR38.68, and Nama Chemicals Co., which gained 5.72 percent to SR26.24. Saudi Aramco Base Oil Co., or Luberef, recorded the most significant decline, dropping 9.96 percent to SR94.00. Jabal Omar Development Co. saw its share price fall 5.39 percent to SR18.96, while Dar Alarkan Real Estate Development Co. declined 4.35 percent to SR18.27. On the announcements front, Saudi Basic Industries Corp. reported its interim financial results for the period ending June 30. According to a Tadawul statement, the company recorded a net loss of SR5.28 billion during the first six months of the year, compared to a net profit of SR2.43 billion in the same period a year earlier. The decline was primarily due to impairment charges, provisions, a strategic restructuring initiative, lower results from associates and non-integral joint ventures, and a zakat expense of SR694 million in 2025 versus a positive non-cash benefit of SR214 million in 2024. SABIC also announced the board of directors' recommendation to distribute SR4.5 billion in cash dividends to shareholders for the first half of 2025. A bourse filing revealed that the total number of shares eligible for dividends amounted to 3 billion, with a dividend per share of SR1.5, representing 15 percent of the share's par value. SABIC's share closed the session at SR54.45, down 1.19 percent. Luberef released its interim financial results for the first half of the year. According to a Tadawul statement, the company posted a net profit of SR446 million, down 13.2 percent year-on-year, mainly due to lower crack margins for by-products and a decline in base oil sales volumes, despite an improvement in base oil crack margins. The company also announced the board's recommendation to distribute SR168 million in cash dividends for the first half of 2025. A bourse filing said the number of shares eligible for dividends was 168 million, with a dividend per share of SR1, equivalent to 10 percent of the share's par value.
Argaam
2 hours ago
- Argaam
Multi-storey factories project supports entrepreneurs: Alkhorayef
Minister of Industry and Mineral Resources Bandar Alkhorayef said that the multi-storey factories project in the First Industrial Zone in the Eastern Region aims to provide opportunities for entrepreneurs and owners of small and medium-sized enterprises to enter the industrial sector.
