China finalises $1.5bn deals
China has finalised new joint venture agreements worth $1.5 billion with Pakistan and signed memoranda of understanding valued at approximately $9 billion across the agriculture, automotive and minerals sectors, Federal Minister for Investment Qaiser Ahmed Sheikh said on Thursday.
In a conversation with source, the minister stated that China is also set to make a further investment of $10 billion in the country in the near future, adding that global attention is increasingly focused on Pakistan and broad-based foreign investment is expected in the coming years.
According to the minister, a large trade delegation comprising 300 businesspersons from various sectors, organised by the Government of Pakistan, recently visited China. He said the government is planning to link the Reko Diq project to Karachi via Chagai, enabling travel from Chagai to Karachi through a special railway track and a new highway.
Airport moved to privatisation catalog
The Government has shelved a plan to outsource the management and operations of Islamabad International Airport to the United Arab Emirates (UAE) after Abu Dhabi lost interest in the process.
The deadlock between the two countries emerged following repeated delays by the UAE in nominating an entity for the outsourcing of Islamabad International Airport.
The government has now approved a proposal to include Islamabad International Airport in the active privatisation list following the recent successful privatisation of Pakistan International Airlines (PIA).
Sources told that despite initial interest shown by the UAE, it failed to communicate the name of the nominated entity for the outsourcing of the management and operations of Islamabad International Airport, indicating disinterest on the part of the UAE.
Epic angels backs neem in major pre-series a round
In a move that has electrified Pakistan’s fintech landscape, Epic Angels, the world’s largest “female-only” investment collective, has officially announced its backing of Karachi-based fintech Neem in a Pre-Series A round, Neem disclosed on its website. The development marks an essential shift in how global “smart money” views the Pakistani market, moving beyond speculative bets towards building foundational digital infrastructure.
Based in Singapore, Epic Angels is not a traditional venture capital firm. It is a network of over 200 high-net-worth female executives and entrepreneurs dedicated to bridging the gender funding gap. Their entry into Pakistan’s embedded finance space signals a focus not on an app, but on the rails that will carry the country’s commerce in the coming decade.
The timing of the investment is critical. On January 12, the State Bank of Pakistan officially inducted Neem into its first-ever regulatory sandbox for open banking, granting it approval to test financial data-sharing protocols once limited to traditional, brick-and-mortar banks.
ADB warns Pakistan’s AI reforms
The Asian Development Bank (ADB) has identified that Pakistan’s push to modernise public services through artificial intelligence is confronting deep structural barriers, as fragmented data systems, weak inter-agency coordination, low digital literacy and limited institutional capacity continue to constrain access to government services and tax administration, raising concerns that technology-driven reforms may outpace the state’s ability to implement them effectively.
These challenges were identified by Farzana Noshab, Lead Economics Officer at the Public Sector Management and Governance Sector Office of the ADB Sectors Group, and Yuji Miyaki, Public Management Specialist (Taxation) at the ADB Sectors Department, in a blog post published on the ADB website.
PHMA demands equivalent access
The local apparel and value-added textile sector has expressed concern over the government’s decision to include the rice sector, whose share in exports is only $3 billion, in the Export Development Fund (EDF) and the Duty Drawback of Local Taxes and Levies (DLTL) mechanism involving large allocations, while exporters from the apparel and value-added textile sector remain ignored. The sector has demanded that the government extend EDF and DLTL facilities on an equitable basis to this key sector, which accounts for $18 billion in exports.
PHMA Central Chairman Babar Khan said the government owes Rs5 billion to the value-added textile sector under the DLTL scheme since 2014. He said export-led growth cannot be achieved through policies alone and requires a reduction in production costs and practical facilitation.
Pak-Railway talks with Kazakhstan advance
A high-level consultation was held at the Ministry of Railways between the Federal Minister for Railways and the Ambassador of Kazakhstan, focusing on regional connectivity and railway cooperation. During the meeting, both sides discussed projects connecting Pakistan to Central Asia via rail and their potential economic and trade benefits.
Under the Prime Minister’s Regional Connectivity Vision, the project has been identified as strategically significant for regional integration. Federal Minister for Railways Muhammad Hanif Abbasi stated that the initiative represents a significant development for Pakistan’s railway sector and could enhance trade and regional linkages.
PBF: Pakistan’s cost of doing business 34pc higher than region
Pakistan’s business community is facing a serious competitiveness crisis as the cost of doing business is 34 percent higher than in regional economies, severely undermining the ability of local industries to compete in international markets, Pakistan Business Forum (PBF) Chief Organiser Ahmad Jawad said on Thursday.
According to a statement, Jawad attributed the widening cost gap to irrational taxation, high electricity and gas tariffs, and persistent currency instability. He said Pakistani exporters have been unable to match regional competitors, resulting in stagnant exports since 2022.