Haq's Musings

Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics. Subjects include personal activities, education, South Asia, South Asian community, regional and international affairs and US politics to financial markets. For investors interested in South Asia, Riaz has another blog called South Asia Investor at http://www.southasiainvestor.com and a YouTube video channel https://www.youtube.com/channel/UCkrIDyFbC9N9evXYb9cA_gQ

Monday, May 25, 2026

Iron Brothers China and Pakistan Celebrate 75 Years of "Unbreakable" Friendship

President Xi Jinping and Prime Minister Shehbaz Sharif have met today in Beijing to reaffirm the "unbreakable" bond between their two "iron brother" countries on the 75th anniversary of the establishment of the China-Pakistan diplomatic ties. "No matter how the international landscape may evolve, China will always place priority on the development of China-Pakistan relations in its diplomacy with neighboring countries," he said. Over 7 decades of friendship witnessed Pakistan help bring about the US-China rapprochement that has enabled the Asian giant to grow from international isolation to what President Donald Trump recently declared part of "G2", the exclusive group of two real superpowers in the world today. Prime Minister Shehbaz Sharif's three-day visit to China has seen the signing of multiple agreements to further strengthened strategic and economic relations between two Asian neighbors. These deals are aimed at developing Pakistan's digital economy and renewable energy sectors.

Prime Minister Shehbaz Sharif (L) with President Xi Jinping

Digital Economy:

Prime Minister Shehbaz Sharif began his 3-day official visit to China with the city of Hangzhou where he was warmly welcomed by Chinese officials. He led a business-to-business (B2B) investment conference with private business leaders from China and Pakistan. Hangzhou is known for its huge digital economy, e-commerce dominance, and an aggressive push into "future technologies" like embodied AI, robotics, and drones. It is home to the Chinese tech giant Alibaba.

Prime Minister Sharif visited Alibaba’s headquarters where he forged a comprehensive strategic agreement with the tech giant's Chairman Tsai "right now" to accelerate Pakistan's digital economy. The deal covers AI infrastructure, cloud computing, digital payments and e-commerce.

Renewable Energy:

Prime Minister Sharif also received CATL Executive Vice President Oscar Lou in Hangzhou. CATL is a leading manufacturer of advanced batteries used for energy storage and electric vehicles. Sharif invited CATL and other renewable energy equipment makers to invest in Pakistan to respond to the growing needs of the country.

In a meeting with Sheng Huo Neng Yuan Ke Ji Company CEO Agnes Siu, discussions focused on cooperation in the renewable energy sector, particularly solar power. The prime minister highlighted Pakistan’s growing renewable energy market and government measures aimed at facilitating investment in the sector. He also met with Danwei Shao, the Chairwoman of Starcharge Group, to build electric vehicle charging infrastructure and smart mobility systems in Pakistan.

Sharif argued that the industries where China was no longer competitive because of expensive labor could come to Pakistan, bring in plant and machinery, enter into joint ventures with Pakistani entrepreneurs, manufacture goods, and export to third countries.

Other Industries:

Sharif pitched for Chinese investments and cooperation in other key sectors, including agriculture, pharmaceuticals, textiles and mining.

President Xin Yuan of Xiuzheng Pharmaceuticals called on the prime minister and discussed pharmaceutical manufacturing, healthcare cooperation and investment opportunities in Pakistan’s growing medical sector.

Sharif promoted a number of special economic zones (SEZs) created by the Pakistan government, Specifically, he mentioned a special economic zone in Karachi spread over more than 6,000 acres of land, where all basic amenities would be provided so that Chinese investors and Pakistani entrepreneurs together could invest there.

Beijing Visit:

Prime Minister Sharif and his team flew from Hangzhou to Beijing to meet with the top Chinese leaders, including President Xi Jinping, Prime Minister Li Qiang and Foreign Minister Wang Yi.

President Xi told the visitors that China firmly supports Pakistan in safeguarding its independence, sovereignty, and territorial integrity. "No matter how the international landscape may evolve, China will always place priority on the development of China-Pakistan relations in its diplomacy with neighboring countries," he said.

Foreign Minister Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, held a meeting with Pakistan's Chief of Defense Forces and Chief of Army Staff Syed Asim Munir. No matter how the international and regional situation changes, the friendship between China and Pakistan has always been as solid as a rock and unbreakable, Chinese Foreign Minister Wang Yi said to him on Monday.

Joint Statement:

At the conclusion of Prime Minister Sharif's China visit, a joint China-Pakistan statement said the two nations have reached a “new broad consensus” ⁠on deepening strategic ⁠ties to bolster the development of a joint economic corridor and establish the port of Gwadar as a regional connectivity hub. “The two sides engaged cordially and reached a new broad consensus on further deepening the China-Pakistan All-Weather Strategic Cooperative Partnership,” the statement said.

Monday, May 18, 2026

Pakistani-American Franchisee Joins Bid to Acquire Papa John's Pizza

A Pakistan-American franchisee has joined a Qatari-backed investor group's bid to buy out the US-based Papa John's Pizza restaurants chain. Nadeem Bajwa started his part-time job in 1991 as a pizza delivery driver for Papa John's while attending college in Indiana. He has since risen to become the largest franchisee with nearly 300 restaurants across the United States. Bajwa's backing could help Irth, which is also backed by Brookfield Asset Management, in its $47 a share pursuit of the pizza chain. Papa John's has been reviewing Irth's offer, though sources told Reuters there is no guarantee a deal gets done.

Papa John's Largest Franchisee Nadeem Bajwa

Bajwa’s journey wasn’t easy. In his early twenties, he was the first in his family to move to the United States, where he encountered many challenges upon arrival. “Coming to the U.S., actually, that was my first flight [ever.] I’d never flown before,” Bajwa told CNBC News. “Just getting into the plane, it was a full flight coming here by myself, [there was] a lot of anxiety ... but I was determined to make it.”

Back in 2020, Pakistani reporter Ahmad Noorani alleged that "(T)he growth of the Bajwa family’s business empire in the United States and later in Pakistan directly matches the rise in power of retired general Asim Saleem Bajwa, who is now chairman of the country’s massive China-financed infrastructure project and a special assistant to the prime minister". “Out of total 99 companies, 66 are main companies, 33 companies are branch companies of some of the main companies, while five companies are dead now,” Ahmad Noorani alleged, adding that the businesses of the Bajwa family have been put under the umbrella called Bajco Group.

Eager to allege corruption, Noorani obviously ignored many well-known Pakistani immigrant success stories in US restaurant franchise business while jumping to the conclusion that Nadeem Bajwa's success must be built on his brother's alleged corruption in Pakistan. Noorani does not offer any evidence to back up his allegations.

Bajwa's success as a fast food franchisee is not unique. Other Pakistani-American entrepreneurs own and operate some of the largest fast-food franchises in the United States, managing thousands of locations for major brands like Popeyes, Burger King, and Papa John's. Among the most prominent Pakistani-American franchisees is Shoukat Dhanani (Dhanani Group). Based in Sugar Land, Texas, the Dhanani family runs one of the largest private businesses in the U.S. They are the largest franchisees of Popeyes and a massive Burger King operator, building an empire that generates well over a billion dollars in revenue.

Tabassum Mumtaz, an NED University alumnus, is a another successful Pakistani-American fast-food franchisees. He began his career as a cook for Long John Silver’s, eventually rising to own the entire chain and becoming a mega-franchisee of A&W, KFC, and Taco Bell under Ampex Brands, running a restaurant portfolio generating over a billion dollars in annual revenue.

PakAlumni Social Network

Monday, May 11, 2026

Is the India Growth Story Over?

In a television speech to the nation, Indian Prime Minister Narendra Modi urged his people to make sacrifices by spending less on fuel, fertilizer, and travel. He also asked them not to buy gold for a year. “To save foreign exchange, we must accept the challenge of patriotism,” he said. It appears that India's problems do not just stem from the effects of the US-Iran war; India's problems started well before that. Flight of foreign capital has put the Indian currency under tremendous pressure, with the Indian rupee falling nearly 10% in recent months. Many analysts believe that the Indian IT services exports could fall significantly as the artificial intelligence (AI) models begin to replace the IT workers. It could create a balance of payments crisis that could force India to seek the IMF bailout in the not too distant future. Already, the Indian economy has slipped to the sixth-largest economy by nominal GDP, dropping from previous projections that had it at fourth.

Indian Economy Drops From 4th to 6th Rank. Source: IndMoneyApp

Energy Crisis:

India is facing a serious energy crisis driven by the closure of the Strait of Hormuz that has disrupted global oil and gas supplies. While the government has assured citizens that there are no immediate shortages of petroleum or natural gas, the escalating costs of imports are putting extreme pressure on the nation's foreign exchange reserves.

AI Challenge:

Indian IT firms are cutting staff to prepare for the expected disruption from the adoption of AI. For example, the IT services firm Cognizant is planning major workforce reductions that could impact between 12,000 and 15,000 employees globally, with India expected to account for the majority of the cuts, according to a report.

A US-based investment research firm Citrini Research is forecasting a significant disruption to India's traditional IT services sector by 2027-2028, driven by the collapsing cost of AI coding agents. Here's an excerpt of the Citrini research report:

"The country’s IT services sector exported over $200 billion annually, the single largest contributor to India’s current account surplus and the offset that financed its persistent goods trade deficit. The entire model was built on one value proposition: Indian developers cost a fraction of their American counterparts. But the marginal cost of an AI coding agent had collapsed to, essentially, the cost of electricity. TCS, Infosys and Wipro saw contract cancellations accelerate through 2027. The rupee fell 18% against the dollar in four months as the services surplus that had anchored India’s external accounts evaporated. By Q1 2028, the IMF had begun “preliminary discussions” with New Delhi".

Stocks Selloff:

Sensing the growing crisis, Indian stock market investors are selling off their holdings. IN particular, foreign investors have accelerated their exit from Indian equities in early 2026, selling over $20 Billion in the first four months, driving 14-year low ownership levels. Triggered by Middle East conflicts, rising oil prices, and rupee depreciation, this record exodus—marking the worst quarterly selloff in March—was driven by outflows in banking, financial services, and IT.

Investors see the writing on the wall. The Indian economy has already dropped from the 4th to the 6th rank in the world. The Indian currency is under a lot of pressure. India's current account deficit will worsen with the loss of IT services exports.

Monday, May 4, 2026

Pakistan's New Infrastructure Investments and Trade Routes

Pakistan has recently launched 5G wireless service in multiple cities and closed financing on the 306 kilometer 6-lane Sukkur-Hyderabad M6 motorway. In addition, Pakistan is seeing significant increase in the utilization of its Gwadar and Karachi ports after the closure of the Strait of Hormuz due to the US-Iran war. This will help open the trade routes from Pakistan to Central Asia via Iran, bypassing unstable Afghanistan. It has the potential to eventually make Pakistan a major transshipment hub for the region extending to the land-locked Central Asian Republics. Another major news is the Asian Development Bank financing of cross-border connectivity of the power grid and digital networks. These developments are expected to substantially enhance economic activity in the country, in spite of the short-term negative impact of the energy crisis, particularly in oil and gas imports.

5G Launch:

Wireless carriers Jazz and Zong have launched 5G services across Pakistan in March 2026. This will further expand and enhance Pakistan's digital public infrastructure. Jazz launched its 5G service across major cities, including in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, Quetta, Multan, and Faisalabad. Meanwhile, Jazz's competitor Zong is targeting over 16 cities with 5G speeds exceeding 1.4Gbps.

During the March auction, a total of 480 MHz of spectrum was sold across multiple bands for over $500 million, with Pakistan's main telcos, Jazz, Ufone, and Zong, snapping up the assets. Pakistan Telecommunication Authority (PTA) put a total of 597 MHz of spectrum on the table, with just over 100 MHz of this going unsold.

M6 Motorway:

Pakistan has signed an agreement with the Asian Development Bank (ADB) for $235 million in financing for two sections (120 miles) of the M6 motorway in Sindh province. The Islamic Development Bank (IDB) and the OPEC Fund have already agreed to finance three other sections of this motorway.

The M-6 motorway is the only missing segment in the north-south motorway route linking Karachi to Peshawar. The 306-kilometer-long, six-lane motorway will have 15 interchanges and 10 service areas.

Cross-Border Grid Connectivity:

Pakistan is joining the Pan-Asia Power Grid Initiative sponsored and financed by the Asian Development Bank which will provide $50 billion for power and $20 billion for digital infrastructure. The project will link grids, boost power trading, improve broadband and develop AI-ready communities across Asia, the Pacific.

Iran Trade Routes:

Pakistan has opened six land transit routes for goods destined for Iran, creating a road corridor through its territory as thousands of containers remain stranded at Karachi port because of the United States blockade of Iranian ports and ships trying to pass through the Strait of Hormuz.

This development signals a major shift away from the Gulf trade infrastructure Iran had long relied upon, particularly through Jebel Ali Port in the United Arab Emirates. This represents an opportunity for Pakistan to create new trade routes to Central Asian Republics bypassing Afghanistan, eventually making Pakistani ports a major transshipment hub for the entire region.

Pakistan's newest Gwadar Port has already seen a major surge in activity, handling around 11,000 containers in April 2026 alone, surpassing its entire 2025 volume. The increase comes as shipping companies adjust routes due to disruptions near the Strait of Hormuz, pushing traffic toward safer alternatives.

Space Program:

Pakistan's space agency SUPARCO has achieved a major milestone by launching five indigenous satellites over the last 16 months (early 2025 – April 2026), marking a shift toward rapid space technology expansion. The fleet, aimed at Earth observation and agriculture, includes EO-1, EO-2, AI-powered EO-3, and Pakistan's first hyperspectral satellite, HS-1.

HS-1 is Pakistan's first hyper-spectral satellite which is equipped with advanced hyperspectral imaging sensors capable of capturing data across hundreds of narrow spectral bands. The satellite lifted off from China’s Jiuquan Satellite Launch Center on a Kinetica-1 rocket. It is expected to boost Pakistan's national capacities in areas such as precision agriculture, environmental monitoring, urban planning, and disaster management. Its high-resolution data will support improved resource management and strengthen Pakistan’s resilience to climate-related challenges.