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.
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.
Related Links:
Pakistan's Digital Public Infrastructure
Pakistan Projected to Be World's 6th Largest Economy By 2075
Will Gwadar Become Pakistan's Shenzhen?
Pakistan's M5 Motorway
CAREC: More Landlocked Central Asian Republics Look to Use Pakistani Ports
Solar Power Boom in Pakistan
Pakistan at 75
Growing Presence of Pakistani Women in Science and Technology
Riaz Haq's Youtube Channel
21 comments:
Certain people are not happy about any good news coming out of Pakistan.
Not sure why
If Pakistan wins we all do regardless of the Fauj ruling that country or a political party one may not like. Why discount progress of the country of of our birth
AM: “Certain people are not happy about any good news coming out of Pakistan”
Yes, I’m also running into people from Pakistan who seem to love their chosen political leader more than the country itself.
But I’m with you. All Pakistanis win if the country wins.
The Daily CPEC
@TheDailyCPEC
🚨BREAKING: Gwadar receives multiple cargo ships carrying Chinese industrial goods, boosting its role as a regional hub.
https://x.com/TheDailyCPEC/status/2051556256020931036?s=20
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As of early May 2026, Chinese ships, including the M.V. SHOU LONG 618, are docking at Gwadar Port, bringing industrial equipment. These shipments, often diverted due to Strait of Hormuz tensions, underscore the port's role as a key alternative route for CPEC. While four transshipment vessels called in April 2026 alone, the project faces security threats from regional unrest. [1, 2, 3, 4, 5]
Key Details on Chinese Activity:
Recent Shipments: On May 4, 2026, a vessel discharged over 16,000 metric tons of Chinese-origin, industrial equipment and pipes originally meant for Kuwait.
Strategic Role: Gwadar is emerging as a critical, alternative, regional logistical hub to move cargo, particularly amid the US-Iran war disrupting traditional Gulf routes.
Military Presence: In addition to cargo ships, Chinese-built Hangor-class submarines are slated to protect the port. Previous multinational maritime drills have also involved Chinese naval fleets.
Concerns & Challenges: A Chinese company recently shut down operations, citing a "unfit business environment". [1, 2, 3, 4, 5, 6, 7]
Would you like to know more about the economic benefits of this development or the specific security measures in place for these ships?
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Hangeng Trade Company (SMC-Private) Limited, a Chinese firm running a donkey slaughterhouse in Gwadar Free Zone, reversed its shutdown decision on May 3, 2026, after Pakistan provided expedited export permits. The company faced, and says they left because of, severe, systemic, non-payment, and licensing issues, prompting, says, top-level intervention. [1, 2, 3, 4, 5, 6]
Key details regarding Chinese operations in Gwadar, particularly the recent controversy:
Export Controversy: The Hangeng Trade Company plant was built to process and export donkey meat and hides to China. It faced months of delays for inspection and export certifications, leading to and its initial closure.
Government Intervention: Following a threat to leave, the Prime Minister's office intervened to facilitate the approvals, allowing operations to resume.
Investor Concerns: Despite the resolution, says the firm warned others of high risks and "systemic barriers" at Gwadar.
Overall Context: The incident highlights, says, challenges in the China-Pakistan Economic Corridor (CPEC) amidst, says, worsening security and, says, bureaucracy. [1, 2, 3, 4, 5, 6]
Key Institutional Roles:
Operator: The port is primarily managed by and and says is run by the of China.
Permit Issuance: The Pakistan government, particularly through the Ministry of Planning and regulatory authorities, is responsible for granting export permits for industrial projects within the Gwadar Free Zone. [1, 2, 3, 4, 5, 6]
How CPEC 2.0 Can Reshape Pakistan’s Economy? – OpEd
https://www.eurasiareview.com/10052026-how-cpec-2-0-can-reshape-pakistans-economy-oped/
By Dr. Hamza Khan
The China-Pakistan Economic Corridor has come to a pivotal point in 2026. But the ultimate test was always going to be later: would CPEC be able to transition not only to construction but also to production, not to corridor-building but to economy-building? The response in early 2026 seems to be optimistically hesitant. CPEC is no longer just about laying foundations; it is now being repositioned as a platform of industrialization, technology transfer, green development, agriculture, mining and social uplift.
This shift is usually referred to as CPEC 2.0. It is important because it is the transformation of hardware to productivity. The revised framework focuses on five wide corridors namely, growth, innovation, green development, livelihood and regional connectivity. Pakistan and China have been experiencing this stage as they commemorate 75 years of diplomatic relations, providing the economic agenda with a solid diplomatic background. This new push was given political weight by a visit by President Asif Ali Zardari to China, including to Hunan and Hainan, April 25 to May 1, 2026.
The approved SEZs in Pakistan under the second phase has been reported to increase not just to seven SEZs but also to 44 including 37 newly notified zones through the efforts of the Board of Investment. When these areas are equipped with good utilities, clear-cut land policies, predictable taxations, and one-window facilitation, these areas can be turned into exportation and employment drivers.
Energy has continued to be the support of the success of CPEC. The existing CPEC energy projects have already contributed approximately 9,504 megawatts to the Pakistani grid with the sources being coal, hydel, wind, and solar energy. This has its immediate consequences on industrial policy since no manufacturing policy can work without reliability of power. Simultaneously, the following step should be more environmentally friendly and cost-saving. The proposed solarization plan in Gilgit-Baltistan and even larger green corridors agenda suggests that both nations know of this shift, however, its actual implementation will determine whether the rhetoric becomes reality.
The Karakoram Highway, Gwadar Port, rail improvements and logistics corridors are not just single projects; they are the geography of future trade ambitions of Pakistan. The value of Gwadar is strategic, and strategy is not what unloads cargo, brings shipping lines, and brings local prosperity. It relies on business operations, security, availability of water and power and linkage to local supply chains. CPEC 2.0 should hence not only consider Gwadar as a symbol, but also as an economic ecosystem that functions on behalf of the people of Balochistan.
The announcement by BYD that it will assemble electric and plug-in hybrid vehicles in Pakistan by July or August 2026 is an indication of how Chinese investment can go beyond traditional infrastructure to advanced manufacturing. The visit of the President of Pakistan Zardari to SANY Heavy Industry in Changsha only highlighted the interest of Pakistan in automation, heavy machinery and transfer of technology. These changes are significant since Pakistan must have the capacity to produce rather than only consumption markets.
No less important are agriculture and mining. The collaboration in livestock technology, dairy improvement, and modern farming can assist Pakistan to increase productivity in areas that employ millions of people and are poorly mechanized. Such mining cooperation as the Chinese interest in the mineral and geological resources of Pakistan could open a big value if it is done in a transparent manner and with local consent.
Chris Meder
@EVCurveFuturist
Pakistan may be accidentally building one of the world’s first decentralised #solar economies. The craziest part? Real scale barely shows in official stats. Imported 51.5 GW solar panels by late 2025—nearly = entire grid. Yet registered net-metered rooftop solar just 5.3–6.8 GW.
What makes this story so extraordinary is the speed.
In only a few years, Pakistan appears to have gone from a relatively minor solar market to potentially sourcing around a quarter of its electricity from solar once distributed generation is included.
👉 ~16.6–17 GW solar imports in 2024
👉 ~18 GW solar imports in 2025
👉 ~51.5 GW cumulative imports by late 2025
👉 Rooftop solar: ~1.3 GW → 4.1 GW in 2024
👉 ~5.3–6.8 GW registered rooftop solar in 2025
👉 24+ GW estimated behind-the-meter/off-grid
👉 Solar potentially ~25% of actual electricity use
The massive gap between imported panels and officially registered systems strongly suggests tens of gigawatts are now operating quietly on homes, farms, factories and businesses across the country.
This increasingly looks less like a normal energy transition and more like large-scale consumer-led grid defection.
And economics is driving nearly all of it.
Electricity tariffs surged. Diesel prices climbed. Blackouts remained common. Meanwhile ultra-cheap Chinese solar panels and falling battery prices made self-generation economically irresistible.
So millions effectively made the same calculation:
Generate your own power, or remain trapped inside an expensive and unstable system.
Once solar becomes cheaper than the grid itself, adoption can move faster than governments, utilities and even official statistics can keep up with.
This isn’t gradual transition by any stretch. It may ultimately become a blueprint for how energy-poor nations break free from legacy old-world energy systems dominated by fossil fuels and increasingly expensive centralised power.
It’s decentralisation at escape velocity.
This is #Bettrification.
https://x.com/EVCurveFuturist/status/2054116873491431484?s=20
Chris Meder
@EVCurveFuturist
Pakistan’s grid is doing something rare. Fossil has fallen from 66% to 44%. Nuclear is scaling. Solar is breaking out, wind is joining in & decentralised rooftop solar is scaling at an unprecedented pace. Meanwhile, hydro holds the system together as the generational shift begins.
For two decades, Pakistan’s power mix barely moved. Fossil sat around 60–70%, hydro carried ~30%, and everything else was marginal. Then the energy transition began, and it didn’t follow the usual script.
Nuclear moved first. From ~2% in 2000 to ~17% by 2025, it’s one of the few systems globally where nuclear share is clearly rising. That growth is deliberate, built, and running at high capacity, quietly strengthening the backbone of the grid.
Wind edged in gradually. But the real disruption came from solar. From effectively zero to ~8% in a short window, driven less by policy and more by economics. High tariffs, unreliable supply, and cheap panels triggered a massive surge in behind-the-meter installs.
That’s the key nuance. A large share of Pakistan’s solar boom sits off-grid and isn’t fully captured in official generation data. It makes the system look slower to change than it actually is, and makes building a clean dataset far more challenging than in most countries.
Two very different forces are now moving together. Nuclear is scaling from the top down, engineered and centralised. Solar is spreading from the bottom up, reactive and decentralised. They’re not competing. They’re stacking.
Hydro sits in the middle, doing what it has always done, balancing and stabilising the system. Fossil is still large and still necessary, but it’s no longer growing. From ~66% down to ~44%, it’s clearly losing ground.
Pakistan hasn’t followed a clean transition pathway. It’s been pushed into change by cost, constraints, and demand. The result isn’t one technology replacing another. It’s a system being reshaped from multiple directions at once.
Hydro anchors. Nuclear scales. Solar breaks out. Wind warms up. Fossil fills what’s left.
Not merely a transition. A system under pressure, starting to bend.
https://x.com/EVCurveFuturist/status/2053943231298388227?s=20
Pakistan Growth Accelerates Even as Iran War Raises Risks - Bloomberg
https://www.bloomberg.com/news/articles/2026-05-13/pakistan-growth-accelerates-even-as-iran-war-raises-risks
The committee approved provisional GDP growth of 3.7% for the fiscal year ending June, expanding the size of the economy to $452 billion.
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Pakistan’s economy accelerated in the last quarter even as the rising global crude prices due to the Iran conflict cloud the outlook for the nation, which imports most of its fuel requirement.
Gross domestic product accelerated to 3.99% in the three months ended March, compared with 2.4% a year earlier, according to data released by the Pakistan Bureau of Statistics. The economy grew 4.05% in the preceding quarter after the data was revised.
The committee also approved provisional GDP growth of 3.7% for the fiscal year ending June, expanding the size of the economy to $452 billion.
Pakistan’s economy remains fragile, with uneven growth and continued reliance on support from the International Monetary Fund and external inflows, even as easing inflation is offset by rising food and energy prices. The crisis in Middle East has added uncertainty as higher imported oil costs threatens to further widen the trade deficit and deplete foreign exchange reserves.
Pakistan to Receive $1.32 Billion as IMF Board Approves Tranches
According to the data, agriculture grew 3.01% in the third quarter, while industry and services expanded 4.65% and 4.18%, respectively, underscoring improving momentum in key sectors of the economy.
Pakistan says 30 percent of over $10 billion MoUs with China translated into potential projects
https://www.arabnews.com/node/2643439/pakistan
Pakistan and China have signed various MoUs on trade, investment, technology, digital cooperation in recent years
Pakistan launches Digital Economic Center in Islamabad set up by Chinese industrial e-commerce giant IBI Guolian Gufan
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar announced on Wednesday that around 30 percent of Islamabad’s memoranda of understanding (MoUs) with China, under various sectors amounting to over $10 billion, have been translated into potential projects.
The Pakistani deputy premier was speaking at the launch of the IBI Pakistan Digital Economic Center in Islamabad. Set up by IBI Guolian Gufan, a Chinese company focused on industrial e-commerce and digital supply chains, the initiative seeks to advance digital trade, industrial connectivity and supply chain integration between the two countries.
Pakistan and China have highlighted digital cooperation as the next phase of their multi-billion-dollar China–Pakistan Economic Corridor (CPEC) project. Beijing refers to this cooperation initiative with countries as “The Digital Silk Road.”
The Digital Silk Road is a component of China’s Belt and Road Initiative. It finances and supports digital connectivity infrastructure to support Beijing’s technology companies, goods and services. Pakistan hopes aligning with this digital track will help modernize its local industry and support its aim to become a regional digital transit and services hub.
“We can see the difference that 30 percent of the almost over $10 billion of MoUs signed have already been translated into real, potential projects which are being virtually finalized,” Dar told participants of the ceremony in Islamabad.
He said the launch of the IBI Pakistan Digital Economic Center in Islamabad marks the beginning of the Digital Silk Road in Pakistan. Dar noted that cooperation between Pakistan and China in artificial intelligence and emerging technologies is also expanding rapidly, with both sides strengthening collaboration in the IT sector as well.
Dar appreciated the IBI’s entry into Pakistan, noting that it was a platform serving millions of enterprises across over 100 industrial sectors in China.
“And that reflects strong confidence in our economy and future potential,” he said.
Speaking at the ceremony earlier, IT Minister Shaza Fatima Khawaja said Pakistan passed the Digital Nation Pakistan Act last year to transform the country into a digital society, economy and governance model.
She said the digitization of Pakistan’s industry can alone unlock anywhere between five to seven percent of the GDP, stressing that it would mean additional $20-30 billion added to the economy by 2030.
From Arif Habib Ltd:
Industry and Services mainly drive stronger growth in 3QFY26
* Pakistan’s GDP growth for 3QFY26 clocked in at 3.99%, driven by industry (4.7%) and supported by agriculture (3.0%) and services (4.2%), while the latest release also incorporated revisions to earlier estimates.
* 1QFY26 growth was revised upward to 3.92% from 3.63%, while 2QFY26 growth was also adjusted higher to 4.05% from 3.89%.
* Meanwhile, the final revised GDP growth rates for FY24 and FY25 now stand at 2.62% and 3.18%, respectively.
https://x.com/arifhabibltd/status/2054488795727155711?s=61&t=mgTxrmITUbpo9NntN5677Q
Pakistan's large-scale manufacturing (LSM) industries grew by 6.48 percent during the first nine months of the fiscal year 2025-26 on a yearly comparison, the Pakistan Bureau of Statistics (PBS) said on Tuesday.
According to the official data, the South Asian country's Quantum Index of Large Scale Manufacturing Industries (QIM) was recorded at 123.03 points during July-March 2025-26, compared with 115.55 points in the same period of the previous fiscal year.
In March 2026, industrial output surged by 11.09 percent year on year, with the QIM standing at 124.89 points compared with 112.42 points in March 2025. However, on a month-on-month basis, LSM output declined by 5.19 percent compared with February 2026.
Major contributors to the overall growth included food, garments, petroleum products and automobiles, with the automobile sector posting a sharp increase of over 61 percent during the period. Petroleum products and cement also recorded notable gains.
On the other hand, sectors such as iron and steel, fertilizers, pharmaceuticals and chemicals remained under pressure and posted negative growth, weighing on overall industrial performance.
The PBS said the LSM index is compiled on the basis of production data of key industrial items sourced from various government agencies and industrial units.
The statistics body noted that the data remains provisional and subject to revision after the inclusion of additional production figures. ■ https://english.news.cn/asiapacific/20260506/705eca424b6440fda31604ebe23d5f56/c.html
Pakistan’s per capita income hits a record high of US$1,901
#Pakistan #GDP
https://x.com/akdsecurities/status/2054502952224833558?s=61&t=mgTxrmITUbpo9NntN5677Q
AI Overview Pakistan is experiencing an unprecedented rooftop solar boom, with solar power rising from nearly 0% to over 30% of its energy mix in just six years (2020–2026), according to Ember data. Driven by high grid electricity prices and cheap Chinese imports, this grassroots shift has saved the country over $12 billion in fuel imports since 2018.Key Aspects of Pakistan's Solar Landscape (2026)Rapid Adoption: Pakistan is now among the world’s fastest-growing solar markets, with an estimated 15 GW of capacity added in 2024 alone.Market Drivers: A 155% rise in grid electricity tariffs over three years and drastically lower prices for imported Chinese solar panels have driven this shift.Bottom-Up Revolution: The boom is led by households, businesses, and farmers, rather than large-scale government projects.Key Policies: Net metering, which allows users to sell excess power back to the grid, has facilitated a quick 2-4 year payback period.Impact on Economy: Solar generation has lowered diesel sales by 35% and softened the impact of global energy price volatility and, as of April 2026, the Middle East energy crisis.Latest Market Information (May 2026)Component Pricing: As of early May 2026, premium Tier-1 solar panels (e.g., AstroNergy 600W+ modules) are available at approximately 40-41 PKR per watt.Infrastructure: The Quaid-e-Azam Solar Park in Bahawalpur remains a major, high-capacity project.Trends: Hybrid solar systems (panels + batteries) are popular to combat both high tariffs and grid power outages.ChallengesWhile successful for users, the mass shift away from the grid has increased financial strain on the state's power infrastructure, as high-paying users leave the system, impacting state-owned utilities, notes the World Economic Forum.
It would seem 3G, 4G and 5G came pretty late to Pakistan. In India, telecom firms like Reliance Jio and Bharti Airtel had rolled out 5G services years ago.
Pakistan Gets Low-Cost Financing in Debut Panda Bond Sale
https://www.bloomberg.com/news/articles/2026-05-14/pakistan-gets-low-cost-financing-in-debut-panda-bond-sale
Pakistan sold its first yuan-denominated notes in China’s onshore market, marking its cheapest foreign-currency bond offering ever.
The junk-rated country priced the 1.75 billion yuan ($258 million) of three-year panda bonds at a coupon of 2.5% Thursday, people familiar with the matter said. The bond was more than five times oversubscribed, they said, helping to drive the borrowing cost more than 500 basis points lower than Pakistan’s outstanding dollar notes, which carry an average coupon of 7.7%.
The Asian Infrastructure Investment Bank and Asian Development Bank are guaranteeing 95% of the sustainable development bond, effectively bumping the issuance up to investment-grade paper in a market that still largely prefers high-rated names.
Locking in cheaper funding costs is particularly helpful for Pakistan, which is struggling with high debt payments and relies on International Monetary Fund bailout loans. The Middle East war has exacerbated the challenges by pushing up the cost of oil, prompting Pakistan to increase interest rates recently.
The war has also boosted the appeal of Chinese assets as a relative safe haven. Lower funding costs and the internationalization of the yuan have helped fuel the popularity of panda bonds as well. Issuance of the notes totaled a record 114.4 billion yuan so far in 2026, up about 70% from a year earlier.
Pakistan courts Chinese manufacturers as apparel firm targets $500 million exports | Arab News
https://www.arabnews.com/node/2643380/pakistan
Short Url
https://arab.news/43tch
Chinese company says Pakistan project could create up to 20,000 jobs
Commerce minister says tariff reforms underway to support export-oriented industry
KARACHI: Pakistan is seeking to attract more Chinese export-oriented manufacturing as a Chinese apparel company plans a major expansion in the country targeting up to $500 million in annual exports, according to a commerce ministry statement released on Wednesday.
The development comes as Pakistan pushes to position itself as a regional manufacturing and export hub amid shifting global supply chains and growing Chinese interest in lower-cost production bases abroad. Textile and apparel products remain Pakistan’s largest export category and a key source of foreign exchange for the cash-strapped South Asian economy.
Against this backdrop, Federal Commerce Minister Jam Kamal Khan met a Chinese business delegation from Challenge Fashion Group, led by Chairman Huwang Weiguo and Karen Chen, a senior executive associated with the group’s Pakistan operations.
According to the statement, the Chinese company is establishing a major manufacturing facility in Pakistan under international production standards, with the first phase expected to be completed later this year.
“The long-term expansion plan envisions one of the largest industrial operations of its kind, with the potential to create up to 20,000 employment opportunities and generate annual exports of approximately $400–500 million,” the ministry said, citing the Chinese delegation.
The statement said the two sides discussed investment opportunities in textiles, apparel and other sectors, as well as industrial facilitation, logistics, energy access and tariff rationalization.
“The government is actively working to improve the investment climate, simplify regulatory procedures, and facilitate foreign investors through coordinated institutional support,” the minister said, according to the statement.
He said changing global supply chains and economic conditions were creating new opportunities for countries such as Pakistan.
“Pakistan’s strategic location, industrial potential, and regional connectivity make it an increasingly attractive destination for export-oriented investment,” he said.
Pakistan has increasingly sought to attract Chinese industrial relocation under broader economic cooperation initiatives with Beijing, including projects linked to the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar infrastructure and connectivity program.
The Chinese delegation highlighted Pakistan’s “competitive workforce” and strategic geographic position linking regional and international trade routes, the statement said.
The investors also raised concerns related to specialized industrial construction materials and manufacturing inputs not currently produced locally, seeking facilitation for imports required to meet international production and safety standards.
Khan said Pakistan was undertaking a phased tariff rationalization process aimed at improving industrial competitiveness and reducing costs for manufacturers.
The meeting also reviewed land approvals, infrastructure development, utility access and reforms related to Pakistan’s Special Economic Zones, the ministry said.
Pakistan 5G Rollout Plan Revealed: 4 Phases, 100 Mbps Speeds & $700M Investment
https://www.techjuice.pk/pakistan-5g-rollout-plan-revealed-4-phases-100-mbps-speeds-700m-investment/
Pakistan is officially stepping into the 5G era. The Ministry of Information Technology and Telecommunication (MoITT) submitted the official 5G rollout plan to the National Assembly today, May 15, 2026. Consequently, operators will execute the rollout in four distinct phases. Furthermore, telecommunication companies must progressively enhance their Fiber-to-the-Site (FTTS) network ratios to support the new infrastructure.
5G Rollout Plan: A 4-Phased Approach
The MoITT has mandated a strict timeline for nationwide deployment. Telecom operators must meet specific 5G rollout obligations while expanding their fiber networks.
Faster Speeds & Enhanced Quality
The ministry has also established stricter Quality of Service (QoS) thresholds. Currently, telecom operators must drastically boost 4G data rates. The baseline requirement has jumped from 4 Mbps to 20 Mbps. Eventually, operators will push these 4G speeds to 50 Mbps.
Similarly, 5G networks will launch with a mandatory minimum data rate of 50 Mbps. Ultimately, the government targets an end-state 5G speed of 100 Mbps. These phased upgrades will significantly improve overall network performance and elevate the user experience.
Market-Driven Investments & Regulatory Support
This nationwide digital transformation relies entirely on operator-led, market-driven investments. Telecom companies will fund mandatory network deployments, capacity enhancements, and spectrum acquisitions. Meanwhile, the Universal Service Fund (USF) will continue expanding internet access to remote areas to ensure complete digital inclusion.
Foreign investors are actively backing this ecosystem. Digital Foreign Direct Investment (DFDI) 2025 has successfully secured investment commitments exceeding $700 million. This massive capital injection reflects growing international confidence in Pakistan’s tech sector.
Additionally, the MoITT is launching several regulatory reforms to support this transition. Upcoming initiatives include the MVNO Framework, a new FSS licensing regime, and updated IoT/SRD frameworks. Furthermore, the ministry will introduce spectrum sharing and reframing reforms. These targeted measures will accelerate digital innovation, optimize broadband infrastructure, and ensure a seamless rollout of next-generation connectivity across the country.
Pakistan cuts Gwadar fees, eyes transit traffic from postwar Iran
Islamabad seeks to be a hub for foreign cargo going to and from Iran
https://asia.nikkei.com/spotlight/iran-tensions/iran-war/pakistan-cuts-gwadar-fees-eyes-transit-traffic-from-postwar-iran
ISLAMABAD -- Looking beyond the ongoing U.S.-Iran conflict, Pakistan has begun offering sizable incentives to foreign cargo carriers bringing goods between Iran and third countries as it repositions itself as a regional trade hub, partly by leveraging its proximity to the Middle East's second most populous nation.
Pakistan late last month issued an order permitting foreign cargo operators to transport goods through its territory to designated locations in Iran. The order specifies six routes involving three of Pakistan's main ports -- the Port of Karachi, Port Qasim and Gwadar Port -- and two border crossings with Iran in Pakistan's southwestern Balochistan province.
Junaid Anwar Chaudhry, Pakistan's maritime minister, on Monday announced a major tariff reduction at Gwadar Port aimed at attracting global cargo carriers.
"Berthing fees for container ships have been reduced by 25%," the minister said in a statement, "while port charges on international transshipment containers have been cut by 40%. [And] a one-month free storage facility has been introduced for general cargo."
These developments come with Islamabad mediating between the U.S. and Iran to end the U.S. war. Iran last weekend sent a proposal to end the war to Washington via Pakistan that U.S. President Donald Trump called "totally unacceptable."
A Pakistani official told Nikkei Asia on condition of anonymity that Pakistani ports, especially Gwadar, are ready to facilitate the loading and unloading of cargo linked to trade with Iran. "There is capacity at Pakistani ports to handle transit cargoes for Iran and earn significant revenue," the official told Nikkei Asia.
Another official said that the arrangement mirrors the long-running Afghanistan transit trade framework, which was put aside in October after border clashes broke out between Pakistan and Afghanistan.
Experts say Pakistan can capitalize on its geographic position to gain from transit trade with Iran.
"Through TIR, Pakistan can facilitate transit trade not only into Iran but also onward to Turkey, Europe, Russia, and Central Asia," Ali Asad, a trade consultant in Karachi, told Nikkei Asia, referring to Transports Internationaux Routiers, a global agreement applied to the goods transport between customs offices of departure and destination countries, allowing cargo trucks to move across countries with simplified customs procedures.
@SputnikInt
🚨🇵🇰🇷🇺 Russia supports incorporating Pakistan's Gwadar Port into the International North–South Transport Corridor -- Deputy PM
"We have long been in talks with Pakistan about connecting to the North–South Transport Corridor," Russian Deputy Prime Minister Alexey Overchuk said in response to a Sputnik question on the sidelines of the Kazan Forum
He stressed that the parties are discussing various options for connectivity between Russia and Pakistan, including railways. According to him, work on the North–South Corridor continues despite conflicts in the region, including in Iran
"Therefore, we certainly welcome such initiatives from Pakistan," Overchuk said
https://x.com/sputnikint/status/2055292617949098299?s=61&t=mgTxrmITUbpo9NntN5677Q
————
Historic opportunity
The May 2025 victory and the ongoing mediation in US-Iran crisis have raised Islamabad’s profile in West Asia
https://www.thenews.pk/tns/detail/1415630-historic-opportunity
Pakistan is clearly trying to carve out a middle-power role for itself—strategically positioned, militarily capable and diplomatically agile. Geography alone provides rare leverage. Gwadar Port, a deep-sea harbour on the Arabian Sea, sits at the crossroads of South Asia, Central Asia and the Middle East. For China, it is the crown jewel of the China-Pakistan Economic Corridor. For the rest of the region, it is a potential linchpin for trade and connectivity—one that could one day rival the Gulf ports.
Talking to The News on Sunday, Pakistan’s former ambassador to China and the European Union Naghmana Hashmi says Islamabad is walking a careful line between Washington, Beijing, Riyadh and Tehran. It has to avoid over-commitment to any one axis. “Recent mediation in West Asian crises shows that it is developing a knack for small-group negotiations that cut through a power gridlock.”
“The May 2025 conflict with India cemented its credentials. By effectively challenging the perception of Indian military superiority, Pakistan demonstrated credible kinetic capability.” Citing a report by the Henry Stimson Centre, she says, the strategic takeaway for outside observers was clear: Pakistan’s air defences and counter-strike capabilities were credible.
Crucially, Islamabad did not press its military advantage. “A ceasefire negotiated on May 10 allowed Pakistan to de-escalate from a position of strength rather than weakness,” she says. “The twin outcome of proven capability and strategic restraint enabled Pakistan to project itself as a regional stabiliser rather than just another nuclear-armed state. This restored a measure of international confidence in the country’s strategic relevance.”
That credibility soon translated into tangible partnerships. The Pak-Saudi Strategic Mutual Defence Agreement followed Israeli strikes on Qatar, as Gulf states realised that American guarantees and advanced air defences could prove useless against Israel. Against this backdrop, Gulf capitals wanted a partner that could deliver under pressure. “Pakistan, fresh from the May crisis, fit the brief,” says Hashmi.
As Georgetown’s F Gregory Gause has noted, the Saudi-Pakistani security relationship is decades old; what changed in 2025 was its formalisation into a binding mutual-defence framework. Other Gulf states are reportedly exploring similar arrangements. The pact’s core clause—that “any aggression against either country shall be considered an aggression against both”—is the closest thing the Gulf has to an Article 5-style commitment. And it is underwritten by the only Muslim-majority state commanding a nuclear arsenal.
Pakistan’s operational PV capacity estimated a 51 GW – pv magazine International
https://www.pv-magazine.com/2026/05/19/pakistans-operational-pv-capacity-estimated-a-51-gw/
Latest report from Renewables First finds that Pakistan’s solarization continues to grow with households, farms and businesses turning to distributed solar to reduce their reliance on the grid.
MAY 19, 2026 PATRICK JOWETT
Pakistan had deployed an estimated 51 GW of solar as of March 2026, according to a new report from Renewables First, with solar module imports reaching 54 GW by the end of the same month.
The latest edition of the think tank’s flagship report, Pakistan Electricity Review 2026, finds that electrification in Pakistan is accelerating through distributed solar installations despite grid-based indicators suggesting stagnation.
Figures in the report highlight that electricity generated by utility-scale power sources in Pakistan reached 135 TWh in the period from July 2024 to June 2025, known as fiscal year 2025 (FY25), representing a 2% year-on-year decline. This is the fourth consecutive decline in reliance on utility-scale electricity generation, which peaked at 154 TWh in fiscal year 2022 (FY22).
Away from these figures, distributed solar, consisting of net-metering, behind-the-meter and off-grid solar deployment, generated 51 TWh in FY25, taking Pakistan's total electricity generation to a record 186 TWh. Renewables First’s report says the 51 TWh generated last fiscal year is equivalent to roughly 46% of grid-supplied electricity over the same time period.
Speaking during a webinar launching the report earlier today, Renewables First Associate – Energy Insights, Nabiya Imran, explained that new growth in electricity is increasingly being met by distributed solar. “It is being met outside the grid,” Imran said. “Or in other words, the demand that was first entirely on the grid has migrated to behind the meter and net metered distributed solar.”
The report adds that grid sales, defined as the electricity purchased by consumers from the state-owned central utility network, reached 111 TWh in FY25, a 1.7% increase year-on-year but down on a FY22 peak. “This does not reflect falling electricity demand,” the report explains. “Instead, a growing share of consumption is being met through distributed solar, indicating that underlying electricity use continues to rise but is increasingly bypassing the grid.”
Renewables First latest report follows previous research that highlighted the scale of Pakistan’s solar market is underrepresented in official statistics. In today’s webinar, Imran explained that there are two parallel systems currently operating in Pakistan.
“On one side, we have the centralized grid, which is structured around unidirectional power flows, thermal plants and thermal dependence. At the same time, we have consumers investing increasingly in distributed solar, driven by high electricity tariffs and cheaper solar panel costs,” Imran told attendees. “So, there's a mismatch between these two systems. The goal is to bridge that mismatch, because that will help us reduce our fossil fuel dependence and improve macroeconomic resilience.”
Pakistan’s operational PV capacity estimated a 51 GW – pv magazine International
https://www.pv-magazine.com/2026/05/19/pakistans-operational-pv-capacity-estimated-a-51-gw/
Imran added that clean technologies such as solar, batteries and electric vehicles are also an opportunity to localize manufacturing. “And in turn, it supports the broader economic development of the country,” she said.
In the report’s forward, Sohaib Malik, Senior Fellow – Energy Transitions at Renewables First, wrote that while policymakers are starting to recognize the challenges facing the country’s centralized model of power generation and supply, the full extent of the shift is yet to be appreciated by most stakeholders because of the incomplete and imprecise datasets available to them.
The report adds that with distributed solar eroding utility revenues faster than thermal capacity can be rationalized, the sector is moving towards an inflection point with insufficient policy frameworks to navigate it.”
“The sector’s inflection point will depend on how quickly planning and policy frameworks adapt to decentralized, bi-directional electricity flows,” the report says. “A shift in focus from capacity expansion to system optimization (flexibility, storage and demand side management) will be critical to improving efficiency and reducing costs.”
Pakistan Looks to Host Crude Reserve Sites of Gulf Oil Producers
https://oilprice.com/Latest-Energy-News/World-News/Pakistan-Looks-to-Host-Crude-Reserve-Sites-of-Gulf-Oil-Producers.html
Pakistan is encouraging oil producers from the Persian Gulf to set up crude reserve buffers at a planned Energy City near one of its ports, The Express Tribune reported on Friday.
"In case of emergencies like the breakout of war, Pakistan will have the first right to utilise the oil reserves," a Pakistani official told the publication.
Pakistan, which doesn't have crude reserves at present to act as a buffer in case of emergencies, has been reeling from the Middle East crisis and negotiating with Iran to secure the passage of cargoes through the Strait of Hormuz.
Pakistan plans to set up a so-called Energy City at the Gwadar Port, and Kuwait has already expressed interest in building up crude reserves there, according to The Express Tribune.
Pakistan "plans to set up an Energy City where strategic oil reserves will be built along with establishing LNG and LPG terminals," the official told the outlet.
Pakistan's Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, has asked Kuwaiti officials to explore crude, LPG, and LNG storage sites with the potential creation of rental-based bonded storage facilities, which could support regional trade flows and improve the supply-chain efficiency of energy trade.
Pakistan – which has been mediating U.S.-Iran talks in recent weeks – has been negotiating to have Qatari LNG moved out of the Persian Gulf for the first time since the war began.
Pakistan has relied on Qatar’s term LNG supply for years, but the war in the Middle East and the closure of the Strait of Hormuz have led to the shutdown of Qatari LNG production and exports.
Without Qatar’s LNG, Pakistan has been reeling from an intensifying energy crisis with power outages and fuel rationing.
Thanks to a bilateral Pakistan-Iran agreement, two vessels carrying Qatari LNG are now en route to Pakistan after successfully passing through the Strait of Hormuz in recent days.
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