Pakistan, Somalia eye stronger trade agreements
The Ambassador of Somalia to Pakistan, Sheikh Noor Muhammad Hassan, has expressed a strong interest in signing bilateral agreements to enhance mutual trade between the two countries, according to a press statement. Speaking at the Lahore Chamber of Commerce & Industry (LCCI) on Thursday, he reflected on the longstanding historical relations between Pakistan and Somalia, dating back to 1960, in trade and economic cooperation.
The Somali envoy highlighted his country’s openness to Pakistani investors in all sectors of the economy and stressed that exchanging trade delegations could significantly strengthen economic ties. He also noted that many Somali students are pursuing education in Pakistan and sought internship opportunities for them to enhance their practical experience.
LCCI Senior Vice President Engineer Khalid Usman reiterated Pakistan’s commitment to expanding trade ties with Africa under the “Look Africa” and “Engage Africa” policies. He pointed out that Somalia’s strategic location along the Indian Ocean makes it an essential market for Pakistan. He also highlighted Pakistan’s long-standing defence cooperation with Somalia.
Proposal to organize transport division abandoned
The government has dropped the idea of setting up a transport division by merging different entities under its rightsizing programme.
According to sources, the proposal was discussed in a recent high-level meeting, chaired by Prime Minister Shehbaz Sharif.
The meeting was informed that the committee on rightsizing had discussed in detail the idea of creating a transport division by merging the Aviation, Railways and Communications Divisions.
However, it was felt that such an arrangement could create complexity and disperse focus.
Reserves rise to $16.1bn
Pakistan’s total liquid foreign reserves increased by $46 million to reach $16.1 billion.
As of January 31, 2025, Pakistan’s total liquid foreign reserves stood at $16,044.1 million, according to the State Bank of Pakistan (SBP). These reserves included $11,418.3 million held by the SBP and $4,625.8 million held by commercial banks. During the week ending January 31, SBP reserves increased by $46 million, reaching $11,418.3 million.
Moreover, the SBP conducted an Open Market Operation (OMO) through a Reverse Repo Purchase (Injection) on February 6, 2025, injecting Rs1.1 trillion into the market. A total of nine quotes were received for a 4-day tenor, with an interest rate range of 12.11percent to 12.05percent.
Pakistan public debt stays above
Pakistan’s public debt remained above the sustainable level in the last fiscal year, violating an Act of Parliament due to higher interest expenses, which also neutralised the benefits of exchange rate stability and reductions in other expenditures, states a new government report.
The Debt Policy Statement 2025 from the Ministry of Finance officially confirmed that the government could not bring down the debt level to 56.75percent of the size of the economy by the end of the last fiscal year. The limit had been set for the fiscal year 2023-24 under the Fiscal Responsibility and Debt Limitation Act. For this fiscal year, the ceiling will be further tightened to 56percent.
The Debt Policy Statement has been finalised on the heels of a World Bank Debt Heat Map report, which also flagged a lack of transparency in reporting Pakistan’s debt indicators.
The World Bank report showed that the government did not timely publish the Annual Debt Bulletin for the last fiscal year and also published the Annual Borrowing Plan with a lag of over two months. The World Bank report also mentioned that the government provided no information about public-private partnership-related guarantees.
British businesses to explore investment in Pakistan
Acting Senate Chairman Syedaal Khan on Thursday invited British businesses to explore investment opportunities in Pakistan, which offered a favourable environment to foreign investors.
During a meeting with the UK deputy speaker, who led a delegation, at the Parliament House, he urged British traders and companies to pour investment into Pakistan’s energy, technology and industrial sectors for enhancing economic cooperation between the two nations.
The delegation comprised the political adviser to the British high commissioner and officials from the House of Commons. Syedaal Khan underscored the importance of strengthening parliamentary relations between Pakistan and the UK. Both sides discussed democratic values and various aspects of bilateral relations. He reiterated Pakistan’s commitment to fostering ties with the UK through parliamentary diplomacy.
Exhibition strengthens economic contracts with Riyadh
Federal Minister for Commerce Jam Kamal Khan engaged in high-level meetings with Saudi officials to enhance economic cooperation and expand trade and investment opportunities between Pakistan and Saudi Arabia. The discussions took place on the sidelines of the ‘Made in Pakistan’ Exhibition and Business Forum in Jeddah.
During a meeting with Abdul Aziz Alsakran, Deputy Governor of the General Authority of Foreign Trade, both sides underscored the importance of increasing bilateral trade and investment. Alsakran congratulated the Pakistani government on organising a successful trade event, recognising its role in promoting Pakistani products and fostering stronger business ties between the two countries.
In another key discussion, Kamal Khan met with Hassan Moejeb Al-Huwaizy, Chairman of the Federation of Saudi Chambers, to explore institutional collaboration. The minister reaffirmed Pakistan’s commitment to strengthening economic partnerships and the role of business chambers in driving bilateral trade. He proposed structured Business-to-Business (B2B) networking activities to unlock new trade and investment prospects.