Mobilink Bank inaugurated its first dedicated Islamic banking branch in December in Karachi, the South Asian country’s economic hub. A second Islamic banking branch is scheduled to commence operations in Peshawar in the coming weeks, followed by a phased rollout of Islamic banking services across the nation.

During the occasion, Aamir Ibrahim, Chairman of the Mobilink Bank Supervisory Board, said, “With the launch of Islamic banking at Mobilink Bank, we are reinforcing our commitment to inclusive, customer-centric financial services. The continued growth of Islamic banking in Pakistan reflects strong demand and significant potential, which we are proud to address through solutions that empower individuals and businesses.”

Mobilink Bank received its Islamic Banking licence from the State Bank of Pakistan in 2025 itself.

The launch of Mobilink’s Islamic banking services supports the venture’s strategy to broaden financial choice and inclusion for individuals, micro-entrepreneurs, and small businesses across Pakistan. Mobilink Bank’s Islamic banking portfolio will also offer Shariah-compliant deposit and financing products designed to meet daily financial needs, apart from supporting business growth.

“Expanding into Islamic banking allows us to directly respond to the needs of a large segment of Pakistan’s population. By offering transparent, faith-aligned products through both physical branches and digital channels, we are increasing access to formal financial services across the country,” noted Haaris Mahmood Chaudhary, President and CEO of Mobilink Bank.

According to the State Bank of Pakistan’s “Islamic Banking Bulletin” for the period ending September 2025, assets reached approximately PKR 12.7 trillion (around USD 44 billion), accounting for 21.6% of total banking sector assets. Islamic banking deposits represented 26.5% of total deposits across the South Asian nation. On a year-on-year basis, Islamic banking assets and deposits grew by 28.3% and 29.7%, respectively, underscoring the sector’s strong momentum and rising adoption ratio among customers.

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The lender stated that the funds will be released under the bank’s Public Resources for Inclusive Development – Multiphase Programmatic Approach (PRID-MPA), which could provide up to USD 1.35 billion in total financing, according to The Dawn.

“Around USD 600 million of this will be allocated to federal programmes, while USD 100 million will be allocated to a provincial programme in Sindh,” the media outlet stated.

The approval comes after a World Bank grant of USD 47.9 million in August 2025 to enhance primary education in Pakistan’s Punjab province.

In a separate statement, the lender quoted Bolormaa Amgaabazar, the World Bank’s country director for Pakistan, as saying, “Pakistan’s pathway to inclusive, sustainable growth lies in mobilising more domestic resources and applying them efficiently and transparently to deliver results for people.”

She stated that the MPA enables the bank to work with the federal and Sindh governments to “deliver on impact-more reliable budgeting for schools and clinics, fairer taxation, and better data for decision-making, all while protecting priority social and climate investments, and building public trust.”

Tobias Akhtar Haque, World Bank lead country economist for Pakistan, added that “strengthening the fiscal foundations was key to restoring macroeconomic stability, delivering results, and strengthening institutions.”

“Through the PRID-MPA, we are launching a coherent nationwide approach to support reforms that expand fiscal space, bolster investments in human capital and climate resilience, and strengthen revenue administration, budget execution, and statistical systems,” the official added.

“These reforms will ensure that resources reach the front line and deliver better outcomes for people across Pakistan with greater efficiency and accountability,” he concluded.

The post World Bank approves USD 700 million to boost Pakistan’s financial health appeared first on International Finance.

He further told Saudi business daily Al-Eqtisadiah that remittances are witnessing continuous growth and constitute an important part of Pakistan’s economic stability.

“Pakistan has signed 27 memoranda of understanding (MoU) worth close to USD 2.8 billion, covering diverse sectors from agriculture to manpower export, through technology and food products,” Farooq remarked.

“Among these MoUs, 17 worth USD 1 billion have been activated, with numerous opportunities available for Saudi investors in Pakistan in the mining, information technology, agriculture, and petrochemicals sectors,” the diplomat stated.

According to Farooq, Pakistan imports around USD 4 billion worth of goods from the Kingdom, with its main imports being oil and its derivatives.

“When we look at the volume of trade exchange between Pakistan and Saudi Arabia, we find that Pakistan’s exports are about $700 million, including rice, meat, and textiles, and these are the main products,” he continued.

“There are currently 100 Pakistani technology companies operating in Saudi Arabia, offering diverse services and products to the Saudi market,” the Ambassador mentioned, confirming that work is ongoing to enhance cooperation in the information technology (IT) sector.

He affirmed that over the past two years, several Saudi trade delegations have visited Pakistan, and their visits resulted in the signing of several MoUs and agreements.

“We have been able to convert approximately USD 1 billion worth of these MoUs into agreements,” Farooq explained.

He also told the Saudi business daily that the South Asian country’s leadership’s focus is currently on enhancing the economic partnership with its Gulf counterpart, which includes trade, investment, and technology.

The post Saudi Arabia accounts for 25% of Pakistan’s global remittances: Diplomat appeared first on International Finance.

Bangladesh was perceived internationally as having a rapid economic development trajectory as recently as 2022. But as of right now, nothing more exemplifies how Bangladesh’s economic success story is coming apart than its desperate pleas for a fresh $3 billion bailout from the IMF, $1.5 billion from the World Bank, $1 billion from the Asian Development Bank, and cooperation from the Japan International Cooperation Agency.

Before the global economic consequences from the Ukraine war started to weigh on Bangladesh’s finances, the Sheikh Hasina regime brought political stability and great economic growth to Bangladesh, despite her almost 15-year reign growing increasingly dictatorial.

Bangladesh’s growth and stability stand in contrast to Pakistan’s ongoing political and economic challenges. The two countries diverged in 1971 following a liberation war marked by significant violence and loss of life.

Uncertainty awaits

After Sheikh Hasina was overthrown in a youth-led uprising, the military chose an interim civilian-led government that is currently fighting to reestablish the rule of law and revitalise an economy severely damaged by widespread mob violence and destruction. Bangladeshi politics has historically involved the military as a major actor. The military’s influence over the government in a democratic context is concerning, and in Bangladesh, this has contributed to significant instability.

Apart from hundreds of deaths during the anti-government protests, the new regime contended that some of the rioters had stolen weaponry from law enforcement and other persons. Additionally, mobs in Dhaka took some police officers hostage, resulting in the deaths of at least 44 officers.

Political tensions have increased due to the new government’s involvement in human rights violations, including purges, arbitrary detentions, and restrictions on freedom of speech. Many individuals, including academics, journalists, and political opponents, have faced serious charges that led to their imprisonment.

Recently, a 75-year-old retired Supreme Court justice was severely beaten in a magistrate’s court, suffering injuries that required emergency surgery. This raises concerns about whether Bangladesh might follow a similar path to Pakistan, where ongoing political dysfunction and economic challenges have resulted in persistent conflict. In Pakistan, elections have struggled to reduce the military’s influence over politics.

In Bangladesh, the military has increasingly taken on a prominent role in national decision-making, with the army commander emerging as a key leader. Former military general M. Sakhawat Hussain, now a minister in the interim government, made headlines by threatening political extortionists, stating he had “asked the army leader to break your legs.”

The 84-year-old Nobel Peace Prize winner Muhammad Yunus is in charge of an interim government that is unconstitutional.

Bangladesh’s economy is in terrible shape, with foreign reserves fast depleting, prices skyrocketing, the banking system in disarray, and most economic activity coming to a complete halt. Regaining the trust of international investors will be difficult in light of the widespread looting, vandalism, and arson that have occurred since July 2024. Travel advisories to Bangladesh are still in force for many nations.

The resurgence of some groups poses a serious challenge to law and order in Bangladesh, similar to the situation in Pakistan.

While Prime Minister Sheikh Hasina’s government had taken strong measures against faction groups, recent protests led to the release of hundreds of radical elements from jails. Attacks on jails started more than two weeks before the overthrow of the government, but they picked up steam following Hasina’s forcible flight to India.

In a televised speech on August 5, Bangladesh’s chief of army, General Waker-uz-Zaman, announced Sheikh Hasina’s resignation and departure, saying he was “taking full responsibility” and would assist in “forming an interim administration.”

However, a partisan administration of three former military generals, a hard-line Islamist cleric, and two student protest leaders have taken office in place of a broad-based government of national unity.

Bangladesh is currently experiencing significant political divisions, which have contributed to cycles of violence and retaliation. Without efforts toward national healing and reconciliation, these divisions are likely to lead to increased tensions and economic instability.

The current status of economy

The economy of Bangladesh may confront new difficulties as a result of the present political unrest. A downturn in economic growth will be among the most noticeable effects right away since volatility breeds doubt and erodes investor confidence.

Official figures denote that the GDP of the nation has grown by 6.6% annually on average during the last ten years. According to Moody’s ratings agency, this growth for the year ending in June 2025 will be significantly less than 6%.

To get the nation’s economy back on track, the Muhammad Yunus-led interim administration must promote political stability and restore law and order.

Before the latest round of upheaval, Bangladesh was already dealing with several economic difficulties. Among these has been a protracted period of high inflation since 2022. In July, the rate of inflation surged to a record 14.1%, with food inflation reaching a 12-year high of 11.66%.

The current situation is likely to persist. Supply chain disruptions from movement restrictions during the unrest have led to shortages, and high inflation is affecting lower-income individuals more significantly.

In Bangladesh, unemployment and the slow emergence of new jobs, particularly among educated youth, have long been problems. Currently, over twice as many Bangladeshi people as the worldwide average, 40% of those between the ages of 15 and 24, are not enrolled in school, employed, or receiving training.

Private sector investment in the country, a significant source of employment creation, has remained flat. Furthermore, the current unrest will provide additional harm to the investment environment.

From $48 billion (£36.6 billion) in August 2021 to just over $18 billion (£13.8 billion) in May 2024, Bangladesh’s foreign exchange reserves have dropped significantly. The International Monetary Fund (IMF) set a minimum reserve requirement for countries to clear import payments, which the current level of reserves hardly matches.

A protracted period of unrest can lead to a worsening of the situation as export and remittance income decline. Having accounted for two-thirds of the GDP per capita increase in Bangladesh between 2001 and 2020, these are the country’s two main sources of growth.

Repairing the economy

The primary goal of the transitional administration will be to prepare the way for a smooth handoff to more permanent leadership. It will also probably have to deal with the urgent economic issues facing the nation.

Dealing with inflation is an urgent priority. The central bank has been under fire in recent years from IMF and Bangladeshi economists for improper use of monetary policy. For example, despite mounting inflationary pressure, interest rates on bank deposits and loans were limited to 6% and 9%, respectively, between April 2020 and June 2023.

The government, under Sheikh Hasina’s leadership since 2009, also took out large loans from the central bank to improve its appalling tax mobilisation efforts. However, because borrowing from the central bank increases the amount of money in circulation, it typically increases inflationary pressure.

With the appointment of renowned economist Ahsan H Mansur as the new governor of the central bank, there is optimism that the bank will carry out its mandate.

However, a large number of the economic issues facing Bangladesh are systemic. Reforms are required, for instance, in the banking industry to address problems including excessively high loan default rates, subpar governance, and insufficient risk management procedures.

According to data from the Bangladesh Bank, 11% of loans are either not repaid at all or are subject to late repayment. However, the real percentage is probably far higher.

To guarantee that banks implement sound financial practices, greater regulatory monitoring and greater openness are required. The interim administration has declared that a banking commission will be established shortly.

In addition, Bangladesh collects far less tax money than other nations of comparable development. The next administration will have to increase tax compliance, expand the tax base, and boost revenue collection effectiveness.

Public spending should be able to rise as a result of these measures. In comparison to similar countries, Bangladesh’s public spending has decreased significantly in recent years, accounting for only 15% of GDP. Over Hasina’s 15 years in office, around $150 billion (£115 billion) was embezzled from the nation.

According to the US-based think tank Global Financial Integrity, most of the stolen money came from bank loans that corporations and influential people took out.

Lastly, Bangladesh must stop depending so much on the clothing sector. With ready-made clothing making up 85% of all export earnings, it is the nation’s largest export sector by far.

However, broadening the export market would not be a simple task. In 2026, Bangladesh is expected to leave the United Nations’ list of the least developed nations. Consequently, it is unlikely that the nation will gain the commercial advantages it already enjoys in other nations, including having no export taxes.

Furthermore, the nation receives relatively little foreign direct investment. The new government needs to move toward trade liberalisation, easing investment restrictions, and removing structural obstacles like financing availability to make investing in Bangladeshi companies more alluring to foreign investors.

Right now, Bangladesh stands at a critical juncture as it navigates the aftermath of a turbulent revolution and the establishment of a military-backed interim government. While the nation previously enjoyed rapid economic growth, the current climate is marked by severe financial instability, escalating inflation, and significant political divisions. The urgent need for international loans highlights the economic challenges ahead, including restoring investor confidence and addressing systemic banking issues.

As the new administration seeks to stabilise the country, it must prioritise political reconciliation and implement essential reforms. Only through unity and effective governance can Bangladesh hope to regain its footing and work towards a sustainable economic future, moving beyond its reliance on the garment sector and fostering a more diverse and resilient economy.

The post Bangladesh’s political reset faces economic hurdles appeared first on International Finance.

The development comes a day after PTI (Pakistan Tehreek-e-Insaaf) Senator Ali Zafar told reporters that a letter would be sent from the jailed party founder and former Prime Minister Imran Khan to the IMF, urging it to call for an independent audit of the February 8 general elections before it continues its engagement with Islamabad.

Zafar also pointed out the charter of the IMF, the European Union and other organisations, which stated that good governance was needed for working in the country or giving it a loan.

“If elections were not free and fair, any organisation would avoid giving a loan to such a country. Because that loan will further burden the people,” Zafar said, while talking about PTI demanding an audit of the election results and that condition being put in front of the IMF.

Pakistan averted default in 2023 as the IMF provided a last-minute bailout. The short-term programme is all set to expire in April 2024 and a new government will have to negotiate a long-term arrangement to keep the economy stable.

IMF’s Take On The Matter

Julie Kozack, the head of the Communications Department at the IMF, was recently asked about whether Pakistan was on track to secure the third tranche of the stand-by agreement reached in June 2023, along with the question enquiring whether the global monetary body would entertain any letter by Imran calling for investigations into election irregularities.

Kozack said, “On January 11, the IMF Executive Board approved the first review of the Stand-By Arrangement, with Pakistan that brought total disbursements under the Stand-By Arrangement to USD 1.9 billion. The Stand-By Arrangement is supporting the authority’s efforts to stabilise the economy and to, of course, with a strong focus on protecting the most vulnerable.”

She said that during the tenure of the interim government, the authorities had “maintained economic stability”.

“This has been done through strict adherence to fiscal targets while also protecting the social safety net. It has been done by maintaining a tight monetary policy stance to control inflation and to continue to build up foreign exchange reserves,” Kozack stated further, while adding, “We look forward to working with the new government on policies to ensure macroeconomic stability and prosperity for all of Pakistan’s citizens. And I am going to leave it at that.”

Commenting on Imran possibly writing a letter to the IMF, the official remarked, “I’m not going to comment on ongoing political developments. So, I don’t have anything else to add to what I just said.”

Pakistan secured a last-gasp USD 3 billion “Stand-by Arrangement” in 2023 June with an immediate disbursement of USD 1.2 billion to help the country’s economy stay afloat.

In January 2024, the IMF’s executive board completed its first review of the country’s economic reform programme, allowing for the release of USD 700 million. The move brought total fiscal disbursements under the programme to USD 1.9 billion.

For 2024, Pakistan plans to seek a new IMF loan of at least USD 6 billion, which will be used by the incoming government to repay billions in debt due this year. The country will seek to negotiate an “Extended Fund Facility” with the IMF, as the talks with the global lender were reportedly expected to start in March or April.

“The country’s vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government,” ratings agency Fitch said.

“A new deal is key to the country’s credit profile, and we assume one will be achieved within a few months, but an extended negotiation or failure to secure it would increase external liquidity stress and raise the probability of default,” it added further.

What’s Happening In Pakistan?

The latest general elections saw a split mandate with PTI-backed candidates winning 93 seats in the National Assembly while the party’s main rivals, the Pakistan Muslim League-Nawaz (PMLN) and Pakistan Peoples Party (PPP), secured 75 and 54 seats, respectively.

Despite not having the majority, PMLN, PPP and smaller allies have agreed to form a coalition government. The PTI was denied its electoral symbol, a cricket bat, weeks before the elections and was forced to field candidates as independents. The party also faced a nationwide crackdown that impeded its campaign but still won the highest number of seats. The boost for the party came after the removal of Imran Khan’s government in 2022 after a no-confidence motion.

The PTI has alleged widespread manipulation in the counting and results and has said it will continue both protests and legal cases to reclaim what it insists is “a stolen mandate”.

Why The Loan Is Necessary For The Nation?

The answer lies in the fact that a failure on the part of the new government to tackle Pakistan’s economic challenges may send the nation of 241 million people into default. Its foreign reserves, as of February 2024, stand at about USD 8 billion, which can somehow cover eight weeks of imports. The Pakistani rupee has lost more than 50% of its value against the US dollar.

Inflation, which hit a record high of almost 38% in 2023, is currently nearly 30%, and high energy tariffs, along with costlier essential commodities, are draining household incomes at a quick pace.

A recent report by Tabadlab, an Islamabad-based think tank, called Pakistan’s debt obligations “unsustainable”, saying that the total amount went up to USD 271 billion.

A 2023 United States Institute of Peace report stated that the Asian country needed to “repay USD 77.5 billion in external debt” by June 2026.

“For a USD 350 billion economy, this is a hefty burden,” it added further.

Pakistan’s central bank needs over USD 6 billion to service its debt obligations by June 30.

The post IMF engages with new Pakistan government for economic stability appeared first on International Finance.

The platform, as of November 2023, through its 40 payment methods, takes care of millions of transactions worth billions of dollars for more than 170,000 SME (Small and Medium Enterprises) businesses, apart from serving big brands like IKEA Egypt, Vodafone, Tabby and Uber.

Paymob currently has 16.5 million registered users. It is now planning to reach a million SMEs in the next few years. The start-up has secured a total funding of USD 68.5 million.

Making Waves In A Short Time

Established in 2015, Paymob now oversees millions of online transactions for MENAP (Middle East, North Africa and Pakistan) businesses. Paymob is also playing a vital role in the digital financial transformation initiatives backed by the Central Bank of Egypt.

Paymob envisions its innovative mobile wallet technology to empower MENAP’s fintech space and realise the region’s ‘Cashless Society’ dream.

Among Paymob’s key products, ‘Online Payment’ helps client businesses tailor their suitable payment methods and seamlessly integrate them on various online platforms. Using this solution, the client ventures can offer their customers flexible payment options.

The ventures can also control their billing cycles, automate recurring payments and scale their SaaS (Software as a Service) businesses. The product also comes with an inbuilt dashboard to monitor and payment tracking facilities. The dashboard also generates detailed reports and insights.

Credit and debit cards, mobile wallets, cash on delivery, loyalty points redemptions, payment links and kiosk payments, all are compatible with Paymob’s ‘Online Payment’.

While this particular solution is tailor-made for e-commerce businesses, it is even powering Nestle Egypt’s ground-breaking recycling initiative, where the project participants from the country’s informal waste sector are directly receiving their monthly salaries through mobile payments.

Through ‘Paymob Checkout’, client ventures can use a single code to enable all the possible payment methods in their e-commerce websites.

The solution comes with a 50% higher payment acceptance ratio, through 20-plus local and international methods.

While it is integration-friendly for standalone e-commerce sites with ‘One-Click Account Creation’ and ‘Dynamic Dashboard’ features, it scores highly on the fraud prevention front, by saving payment information with every transaction.

More Tailored Products

Paymob’s ‘POS Solutions’ makes in-store payments look easy, as its smart point of sale (POS) device helps customers to pay with multiple secured payment methods.

It enables businesses to add more POS payment methods and widen their revenue potential by allowing customers the choice to use card payments, cash payments, digital wallets or even instalments. The solution also lessens the chances of cash flow delays by handing the businesses their money right away.

The POS device also improves customer experience with smart and powerful touchscreen devices, while integrating elements like simplified checkout processes such as hand-keying, swiping and dipping transactions.

The customers can even pay by tapping their card on the instrument using NFC technology, rather than inserting cards and entering PIN numbers.

Paymob also has a product called ‘Payment Link’, where businesses lacking websites can still accept payments through links via WhatsApp, social media platforms, or any of their preferred communication tools.

This solution is perfectly tailored for small businesses with no website and POS devices, apart from event organisers, who can sell tickets and receive reserve confirmation through ‘Payment Links’.

Paymob, through its ‘Subscriptions’, is also helping its client businesses to control their billing cycle and convert the customers into loyal subscribers. The solution uses the tokenization pathway (where customers get securely saved on Paymob’s gateway) to enable monthly recurring payments. The customers need to submit their payment information only once if they want to use the recurring payment method.

Through Paymob ‘Installments’, businesses can increase their profits by offering flexible payment options to their customers, irrespective of whether the latter is banked/unbanked. The smart checkout process under the solution detects the customer’s payment card issuer and offers him/her the relevant instalment programme. This instalment programme comes with zero-interest offers, different tenure options and instant loan approvals. From card transfers to digital wallets, customers can pay their instalments through a wide array of payment methods.

Paymob’s ‘Marketplace’ helps businesses to accept payments and distribute payouts automatically, while offering shoppers a consistent and unified experience through their digital journey with a single automated seamless payment engine.

Whether the client venture is an e-commerce marketplace, a booking/ticketing platform or any other complex online platform, ‘MarketPlace’ has been built to accommodate business models of all scales while providing businesses with tailored payout tools.

Expanding The Branches Further

In March 2023, Paymob partnered with Shahid, an Arabic streaming platform. Shahid customers in Egypt can now pay their subscriptions via digital wallets processed through Paymob’s infrastructure. Shahid now becomes the first and only subscription video on demand (SVOD) service to offer its subscribers e-wallet payment options.

Two months later, Paymob secured Saudi Arabia’s ‘Payment Technical Services Provider’ certification, using which it can expand its services to the Kingdom’s merchants.

In September, Paymob and Egypt’s cybersecurity start-up Buguard announced their partnership. Buguard’s cutting-edge Dark Web Monitoring platform, ‘Dark Atlas’, now protects Paymob against potential data breaches, as the tool scans for compromised data and emerging threats. In the event of a data leak, ‘Dark Atlas’ alerts Paymob, following which compromised credentials get instantly rotated to prevent unauthorised access.

The post Start-up of the Week: The fintech revolution called ‘Paymob’ appeared first on International Finance.

In Kearney’s 2023 Foreign Direct Investment (FDI) Confidence Index, the UAE has been placed third overall and first in the Middle East and North Africa.

Business leaders may learn which emerging economies are most enticing to investors thanks to Kearney’s FDI Confidence Index.

China came out on top globally, followed by India, the United Arab Emirates, Qatar, Thailand, and Saudi Arabia—the only other emerging markets that were counted in the rankings.

To increase its appeal to both investors and talent, the UAE has adopted a number of initiatives and significant regulatory reforms, including business-friendly policies.

A significant portion of the USD 66 billion in possible FDI inflows into Pakistan and the MENA region this year is anticipated to come from the UAE. The UAE received almost $22 billion in FDI inflows last year.

More than three-quarters (82%) of investors, up from 76% last year, said they plan to increase FDI over the next three years, according to a survey by Kearney.

In the next three years, FDI will be more crucial for the majority’s companies’ profitability and competitiveness (87%) than it was in 2022 (83%).

Nonetheless, investor pessimism has increased from 32% to 35%, a small increase. Despite the fact that more investors are feeling negative, the majority (63%) still have more optimism than pessimism about the world economy.

According to Kearney, investors’ confidence has been tempered by worries about potential negative outcomes.

“Investors see commodity price increases, heightened geopolitical tensions and political instability in an emerging market as the most likely risks this year. These anticipated developments are likely attributable to the ongoing Russia-Ukraine conflict and the continuing effects of the pandemic, including commodity price volatility and high inflation,” Kearney noted.

The post Top emerging market in MENA is UAE: Kearney’s index appeared first on International Finance.

According to the codeshare deal, Etihad will place its EY code on PIA flights to and from Abu Dhabi to the Pakistani cities of Lahore, Islamabad, and Peshawar.

Similarly, PIA will also place its PK code on Etihad services from Karachi, Islamabad and Lahore to Abu Dhabi and vice versa, and also onwards from the UAE capital to Amsterdam, Bahrain, Colombo Chicago, Frankfurt, Los Angeles, Madrid, Moscow, Washington, Zurich, Amman, Athens, Brisbane, Melbourne, Nairobi, Rome, and Sydney.

While the codeshare flights are available for booking, the first codeshare flight between Etihad and PIA will fly on November 26, 2019.

With regard to the codeshare deal with PIA, Robin Kamark, Etihad Airways chief commercial officer told the media, “The UAE and Pakistan share strong historical, commercial and cultural links and this partnership with PIA, one of the oldest and most experienced airlines in Asia, is a natural progression for both carriers. It enables us to cater to the strong customer demand for both point-to-point business and visual flight rules travel between the UAE and major cities in Pakistan, and to provide seamless travel options for the large Pakistani diaspora around the world, connecting through our hub in Abu Dhabi.”

Last month, Etihad Airways and Saudi Arabian Airlines announced 11 new codeshare routes across Europe and Asia as a part of their new codeshare agreement.

Reportedly, Etihad Airways is set to compete with Qatar Airways as both the carriers will fight for a share in the Indian aviation market, the fastest growing domestic aviation market in the world.

The post PIA-Etihad codeshare improves UAE-Pakistan route access appeared first on International Finance.

The crisis has its roots in the current account deficit, in which the value of imports exceeds the value of exports. The country’s current account deficit has grown four times in the last two years. It touched $18 bn in FY 18, up 42.5% over the previous fiscal year. Two years ago, it was at $4.876 bn and rose to $12.621 bn in the next one.

In 2017, between July and March – about 70% of the country’s import bill was for energy, machinery and metals, according to AFP reports. The import bill ballooned mainly due to higher oil prices and imports from China—which is involved in building several infrastructure projects in Pakistan under the China-Pakistan Economic Corridor programme. Since December, Pakistan has devalued its rupee four times with an aim to make its exports cheaper. The country and its economic policies have suffered, due to corrupt regimes, faulty policmaking and low tax revenues.

Now, the only visible option remaining to Pakistan is to go to the International Monetary Fund (IMF) for a loan. The country has borrowed from IMF more than a dozen times since 1980. Though the total financing gap for the current fiscal is at around $12 bn, the country could not get more than $9 bn from IMF, in accordance to its maxmimum quota. However, this may pose a challenge, as the US itself has warned the IMF to pay Pakistan, as the country is hoping that the IMF can help pay off its China debt.

Even if IMF decides to help Pakistan, it will bring strict conditions that might further devalue the currency. This will severly jeapordise Imran Khan’s new government as well as affect economic growth. Pakistan can also seek Saudi Arabia’s help, but all the Gulf country can do, is defer the oil payments. Borrowing from China is another option, but rising Chinese debt is already a worry for Pakistan. A higher debt burden can prove to be even more of a challenge, as China has already lent Pakistan $1 bn in June to boost foreign reserves.

All things considered, the Imran Khan government has its task cut out in front of it—and a mountain of challenges ahead.

The post Fear of bankruptcy hangs over Pakistan on its independence day appeared first on International Finance.

Halal tourism is identified as a subcategory of tourism directed towards Muslim families who firmly abide by Islam rules. In such destinations, hotels do not serve alcohol and have separate swimming pools and spa for both men and women.

While talking to the opening session of the summit, Mr Muh. Zubair Mughal said that tourism is the 4th largest industry in the world. There are various departments rapidly growing within the tourism industry i.e. Medical tourism, religious tourism, Agricultural, social and educational tourism. Above all, Halal tourism is the industry which is most rapidly increasing all over the world. According to the World Tourism Organization (WTO) tourism industry is growing four percent per annum. Various other statistics forecast more than the above annual increase in the sector. Therefore, Halal tourism consists of 12% within the total Halal industry and Malaysia, UAE, Turkey, Indonesia and Thailand are categorically on top five countries. Non muslim countries are also working hard on their Tourist infrastructure to come into and to excel into Halal tourism market. Singapore, Thailand, UK, South Africa and Japan are on the top of the list.

He further added that in order to promote Halal industry the facilities are important like Halal hotels, food of the airlines, Halal tourism operators, Halal food in hotels, Mosques in the hotels, separate swimming pools for males and females etc.  He said that Halal tourism is facing a few challenges i.e. Islamophobia in non Muslim countries, non availability of Islamic economic system, unavailability of international standards for halal tourism and infrastructure and enabling environment.

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