Latest from Arab News
Arab News
27 minutes ago
- Business
- Arab News
Pakistan's trade deficit with Gulf states widens to $12.4 billion amid free trade agreement talks
KARACHI: Pakistan's trade deficit with Gulf nations widened by 14 percent to $12.4 billion in the outgoing fiscal year through May, even as the country pushes for a free trade agreement (FTA) with the six-member Gulf Cooperation Council (GCC) to boost exports and market access, official statistics show. The trade gap stood at $10.9 billion during the same period last year, according to data from the State Bank of Pakistan (SBP). Pakistan's exports to the region grew to $5.08 billion — up 16 percent — while imports rose 14 percent to $17.5 billion. The GCC includes Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman and Bahrain. Shankar Talreja, director of research at Topline Securities, attributed the widening trade imbalance primarily to surging imports from the UAE, Pakistan's largest oil supplier in the bloc. 'Pakistan's imports from the UAE have increased by 32 percent in 11MFY25,' Talreja told Arab News from Karachi. 'This is a whopping increase of $1.5 billion.' Overall, imports from the UAE jumped 46 percent to $8.33 billion, while exports to the country totaled $3.96 billion. In contrast, imports from Saudi Arabia dropped 15 percent to $3.47 billion. The increase in oil imports comes as Pakistan, which heavily depends on petroleum products from the GCC, monitors global crude trends. Prices spiked by 13 percent to $77 per barrel after Israel attacked Iran on June 13, before easing by 6 percent on June 24 following a ceasefire announcement. 'Pakistan largely relies on petroleum products from the GCC region and overall petroleum import bill in FY26 is unlikely to increase as oil prices are currently 10 percent lower than the average oil price of July-May period,' Talreja noted. 'This lower oil price may offset volumetric increase, leaving overall petroleum import bill unchanged,' he added. Last year, Pakistan spent $17 billion on oil imports, more than twice the size of its most recent International Monetary Fund (IMF) loan package. The IMF has urged the government to ramp up exports to stabilize its fragile external account. To that end, Islamabad is pursuing bilateral and multilateral trade deals, including FTAs with the GCC, South Korea, Vietnam, East Africa and Central Asian states. While Commerce Ministry spokesperson Muhammad Ashraf did not respond to queries, another official confirmed the FTA was under negotiation. 'The FTA talks with the GCC nations are ongoing but I am not sure if they have finalized anything,' the ministry official said, requesting anonymity as he was not authorized to speak to the media. Pakistan's Economic Survey for FY2024-25 mentions both the Pakistan-GCC FTA and the Pakistan-UAE Comprehensive Economic Partnership Agreement as 'upcoming agreements.' However, Talreja expressed skepticism about the potential gains. 'Pakistan has never benefitted from FTAs, like in case of China our deficit with China has further increased,' he said. Islamabad's FTA with Beijing, signed in 2006, has consistently produced unfavorable trade outcomes. The bilateral trade deficit with China stands at $2.5 billion this fiscal year, according to SBP figures. 'In the case of the Middle East, I doubt that Pakistan will benefit as it's a very competitive market due to the global access the GCC has,' Talreja added. 'Islamabad could only benefit if it negotiated something extraordinary.' Prime Minister Shehbaz Sharif's government is also pushing to expand trade with the United States, Pakistan's top textile buyer, by negotiating reciprocal tariffs. Talks are expected to conclude next week. As part of these discussions under the Trade and Investment Framework Agreement, Islamabad is seeking greater access for mangoes, dates and beef in the US market. Pakistan's trade prospects in the European Union remain strong after its GSP+ status, granting zero-duty access on 66 percent of tariff lines, was renewed. A preferential trade agreement with the eight-member Organization for Economic Cooperation also came into force in January. Still, officials warn that the country's export profile remains vulnerable due to over-reliance on a handful of markets. 'The overall export trajectory signals Pakistan's reliance on a few core markets, highlighting the need for diversification and expanded global outreach to minimize exposure to external shocks,' the finance ministry said in its economic survey.
Arab News
40 minutes ago
- Climate
- Arab News
Pakistan issues glacial lake outburst warning for northern areas as temperatures soar
ISLAMABAD: Pakistan's National Disaster Management Authority (NDMA) this week issued a Glacial Lake Outburst Flood (GLOF) alert for the country's northern areas, citing 'persistent high temperatures' and intense monsoon currents as the main reasons. Pakistan is consistently ranked among the countries most adversely affected by climate change. Climate change has triggered irregular weather patterns in the country, which include unusually heavy rains, droughts and heat waves. In a press release on Wednesday, the NDMA said sustained heat for the past several weeks has accelerated snow and glacier melt in Pakistan's northern regions. 'The added influence of monsoon rains and thunderstorms have now significantly increased hydrometeorological pressure on glacial lakes, raising the risk of sudden GLOF events,' the NDMA said. It said Reshun, Brep, Booni, Sardar Gol, Thalu 1 and 2, Badswat, Hinarchi, Darkut and Hundur valleys are at 'heightened risk' in case of a GLOF events. 'Sudden outbursts from these glacial lakes may trigger flash floods, posing a serious threat to human lives, livestock, and agriculture,' the disaster management authority said. 'Damage to infrastructure such as roads, bridges, and communication networks is likely, and access to remote valleys may be temporarily disrupted.' The NDMA urged residents, tourists and trekkers to avoid traveling near glaciers, glacial lakes and riverbanks in the identified areas. It urged locals to stay informed through official alerts and cooperate with authorities on evacuation instructions where necessary. Floods in 2022, brought by record monsoon rains and glacial melt in northern mountains, killed over 1,700 people and impacted 33 million people out of a population of 220 million. Raging currents swept away homes, vehicles, crops and livestock in damages estimated at $30 billion.
Arab News
an hour ago
- Climate
- Arab News
Saudi weather center forecasts ‘above normal' temperatures, rainfall in July and August
JEDDAH: Expect higher temperatures in the central, northern and eastern parts of Saudi Arabia in July and August, the National Center for Meteorology (NCM) has announced. In a seasonal forecast carried by the Saudi Press Agency (SPA), the meteorology center forecast a temperature increase of 1 degree Celsius above normal in parts of Riyadh, Qassim, Hail, Eastern, and Northern Borders regions, peaking in August at 1.2 degrees Celsius in Jouf, Tabuk, Qassim, Hail, and Eastern regions. NCM has also forecast higher-than-normal rainfall in Najran, Jazan, Al-Baha, and Aseer, and parts of Makkah, Madinah, and southern Riyadh and Eastern regions, particularly in July and August. The rest of the Kingdom is expected to receive normal rainfall. The Summer 2025 forecast, covering the months of June to August, was based on climatic conditions from 1991 to 2020, SPA said. According to the report, the highest maximum temperature was recorded in Jeddah on June 2010 at 52°C, while Al-Ahsa recorded 51.3°C in July 2024. Dammam and Al-Qaisumah in the eastern part of the Kingdom recorded August highs of 51°C in 1998 and 2021, respectively. For rainfall, the southwestern region of Jazan recorded the highest daily amount in August 2024 at 113 millimeters. It also held the record for July at 67.6 mm in 1995. For the month of June, Sharurah, in the southern province of Najran, recorded the highest daily amount in June 1996 at 53.8 mm.
Arab News
2 hours ago
- Sport
- Arab News
Cooper Flagg, Dylan Harper, VJ Edgecombe first picks of 2025 NBA Draft
Cooper Flagg anticipated the moment for many months. Still, when Flagg heard his name called No. 1 overall by the Dallas Mavericks on Wednesday night in the NBA Draft, he felt a flurry of emotions. 'I'm feeling amazing,' Flagg said as he stood with his family. 'It's a dream come true, to be honest. I wouldn't want to share it with anybody else.' The Mavericks' announcement ended a months-long buildup for the 18-year-old Flagg, who had long been projected as the top pick. The only question was which team would get the chance to select him, and Dallas earned that opportunity when it won the NBA Draft lottery last month, despite having just 1.8 percent odds of moving into the top spot. Flagg figures to quickly provide a new face of the franchise for the Mavericks, who drew ire from their fan base for trading Luka Doncic to the Los Angeles Lakers in February. The 6-foot-9, 205-pound Flagg helped guide Duke to an NCAA Final Four appearance while averaging 19.2 points, 7.5 rebounds, 4.2 assists, 1.4 steals and 1.4 blocks as a freshman. He won the Wooden Award as the nation's best player while taking home ACC Rookie of the Year and ACC All-Defensive Team honors. The San Antonio Spurs followed with the No. 2 pick, which they used to select Rutgers freshman guard Dylan Harper. The son of longtime NBA player Ron Harper will join a talented roster that includes prized big man Victor Wembanyama. Harper said he could not wait to get to San Antonio to prepare for the season. 'I'm feeling everything — all the emotions mixed in one bucket,' Harper said. 'I think when you play with a bunch of great players, it brings the best out of you. They've got a great young core over there. I'm just ready to get in there and make an impact any way I can with those guys.' At No. 3, the Philadelphia 76ers selected guard VJ Edgecombe out of Baylor. He was named Big 12 Freshman of the Year after averaging 15 points and 5.6 rebounds for the Bears. The Charlotte Hornets selected Duke guard Kon Knueppel next, which gave the Blue Devils two freshmen in the top four picks. Now, Knueppel will stay in North Carolina to play in the NBA. 'It was a big spotlight at Duke,' he said. '(We) freshmen didn't shy away from that, and it prepared us for the next level. Hopefully, that will carry over.' The Utah Jazz selected Ace Bailey out of Rutgers to round out the top five picks. Harper and Bailey marked the highest draft picks in Rutgers annals. The next three selections featured three more freshman guards: Texas' Tre Johnson to the Washington Wizards at No. 6, Oklahoma's Jeremiah Fears to the New Orleans Pelicans at No. 7 and BYU's Egor Demin to the Brooklyn Nets at No. 8. The Mavericks had the No. 1 overall pick for the second time in franchise history. When they owned the top selection in 1981, they drafted DePaul's Mark Aguirre over Indiana's Isiah Thomas.
Arab News
4 hours ago
- Sport
- Arab News
Pacquiao ‘hungry' for comeback after four-year layoff
LOS ANGELES: Manny Pacquiao said Wednesday that his lengthy layoff from boxing has reignited his passion for the sport as he prepares for next month's world welterweight title comeback against Mario Barrios. For the latest updates, follow us @ArabNewsSport The 46-year-old Filipino boxing icon faces World Boxing Council (WBC) champion Barrios in Las Vegas on July 19, four years after his last fight ended in defeat. Pacquiao has reunited with long-time veteran trainer Freddie Roach for next month's title tilt, and spoke to journalists on Wednesday as he worked out at the Hall of Famer's Wild Card gym in Hollywood. 'Four years rest has been good for me,' Pacquiao said after showing off some impressive hand speed in an open pads session. 'I've been in boxing for so many decades, so it's good for my body to rest for four years. 'Now I'm back, I'm hungry to fight again. I'm hungry to fight in a big fight like this. To work hard, have discipline, everything like that.' 'I've missed boxing. I feel like the passion, the fire in my eyes, working hard — it's still there.' Pacquiao said while his recovery times were now slightly longer, he had not noticed any drop off in his physical conditioning. 'I'm fast, I can move like I did before. I can run in the mountains with the young boxers, so I'm happy,' he said. 'I'm enjoying this training camp. There's a couple of adjustments for bodily recovery. We have to control the body, give my body time to rest and recover.' Pacquiao, who won 12 world titles in eight different weight classes during a glittering professional career that began in 1995, refused to be drawn on whether his comeback next month would be 'one and done' or just the first step of a full-fledged return to the sport. 'It's hard to say,' he said when asked about future bouts. 'Now I'm back so one at a time, after this fight we can plan whatever we want.' For some in boxing, however, Pacquiao's return to the ring represents an unnecessary risk. British promoter Eddie Hearn was the latest to cast doubt on the wisdom of the Filipino's comeback earlier this month, predicting that the 30-year-old Barrios will be 'too young and too strong' for Pacquiao. Pacquiao smiled on Wednesday when asked for his response to Hearn's remarks. 'Just watch on July 19th,' he said. 'It will be a good fight.'
