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CAREC urged to turn transport infrastructure into productive economic corridors

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CAREC urged to turn transport infrastructure into productive economic corridors

ISLAMABAD, Oct 15 (ABC): The Central Asia Regional Economic Cooperation (CAREC) programme is entering a new phase, with experts calling for a shift from building transport infrastructure to developing commercially productive economic corridors that strengthen regional trade, investment and connectivity.

The transition comes as the programme plans more than $7.5 billion in financing through 2030, alongside efforts to attract greater private-sector investment and generate stronger economic returns from existing infrastructure.

According to the Asian Development Bank (ADB), CAREC has mobilised cumulative investment of $60.2 billion over 25 years, helping improve more than 20,000 kilometres of roads and railways across its 11 member countries. The ADB has contributed $19.9 billion to the programme.

Despite these investments, trade among CAREC countries accounted for only around 5% of their total trade in 2025. This highlights the need to connect transport infrastructure more effectively with production centres, logistics facilities and cross-border markets.

The ADB also aims to mobilise approximately $3 billion in private-sector financing as part of the programme’s next phase.

Experts call for integrated trade and logistics networks

Dr Faisal Javaid, an international relations expert specialising in regional connectivity, author and Deputy Director at the Office of Research, Innovation and Commercialisation (ORIC), told Wealth Pakistan that CAREC’s next phase should focus on transforming transport corridors into commercially viable economic corridors.

He said regional countries needed to integrate transport, trade, production, energy and digital systems to facilitate the movement of goods, services, investment and people.

Reducing the cost and time of cross-border movement through harmonised customs procedures, digital documentation, single-window facilities and better coordination among border agencies would be essential to achieving this objective, he added.

Dr Javaid emphasised that the next generation of regional investment should extend beyond roads and railways to include logistics centres, dry ports, warehouses, cold-chain facilities and industrial clusters along major transport routes.

Such facilities could connect regional transport networks with agricultural markets, manufacturing centres and export-oriented industries. This would help countries generate greater economic returns from existing infrastructure while creating opportunities for investment and employment.

He said commercially viable economic corridors required a coordinated approach, with transport infrastructure supported by efficient trade procedures, reliable logistics services and stronger links between producers and markets.

Dr Javaid also called for greater emphasis on digital and energy connectivity, including digital customs systems, electronic certificates, cargo tracking and interoperable payment mechanisms.

Implementing regional arrangements, such as TIR-based transit facilitation and integrated single-window systems, could further reduce transaction costs and border delays, provided they aligned with national regulations and applicable international agreements.

The proposed shift towards economic corridors comes as CAREC marks its 25th anniversary. The milestone provides an opportunity for participating countries to reassess how regional infrastructure investments can generate stronger trade flows and wider economic benefits.

While the programme has expanded transport connectivity across Central and East Asia, the relatively low share of intra-regional trade indicates that physical infrastructure alone has not been sufficient to unlock the region’s full commercial potential.

Pakistan’s 2027 chairmanship offers regional trade opportunities

For Pakistan, the evolving CAREC agenda carries particular significance as the country prepares to assume the programme’s chairmanship in 2027.

Dr Javaid said Pakistan’s upcoming chairmanship could provide a platform to promote a more commercially oriented regional agenda connecting Central Asia, China, South Asia and the Arabian Sea.

Better integration with regional transport networks could help landlocked Central Asian economies improve access to international markets. It could also create opportunities for Pakistan to expand transit trade, exports and investment, he said.

He emphasised that Pakistan should use the opportunity to promote practical measures for improving cross-border trade facilitation, strengthening logistics infrastructure and connecting domestic production centres with regional markets.

Mujtaba Arshad, Research Associate at the Centre of Excellence for CPEC at the Pakistan Institute of Development Economics (PIDE), said CAREC corridors provided a strategic framework for strengthening connectivity between Central and East Asia and South Asia.

He said improved regional transport links could eventually provide landlocked Central Asian countries with access to Pakistan’s seaports, including Karachi, creating opportunities for trade diversification and more efficient movement of goods.

However, Arshad cautioned that this remained a longer-term objective rather than an established Central Asian trade route. Several physical connections and institutional arrangements still needed development before commercially viable cross-border railway freight services could become operational.

ML-1 modernisation could strengthen regional connectivity

Arshad said the proposed modernisation of Pakistan Railways’ Main Line-1 (ML-1) could play an important role in addressing part of the regional connectivity gap.

Improving ML-1 could strengthen Pakistan’s domestic freight and passenger transport services while creating more efficient links between production centres, logistics facilities and seaports.

He said that if financing was secured and implementation progressed alongside the development of necessary cross-border connections, the railway could become an important component of Pakistan’s wider regional connectivity network under CAREC.

Such development would also complement the objectives of the second phase of the China-Pakistan Economic Corridor (CPEC 2.0), particularly its emphasis on industrial cooperation, trade facilitation and improved transport connectivity.

The CPEC Action Plan for 2025-2029 calls for a practical financing and implementation plan for ML-1 to support connectivity under the initiative.

The action plan also identifies Gwadar’s potential as a gateway for trade with Afghanistan, Central Asia and markets beyond the region. This reinforces the importance of linking port development with inland transport networks and cross-border trade arrangements.

Commercial viability key to CAREC’s next phase

Experts stressed that realising the commercial potential of regional corridors would require more than completing major infrastructure projects.

Competitive freight rates, reliable transport services, efficient port operations, coordinated customs procedures and investment in missing cross-border links would be necessary to attract sustained trade flows and private-sector participation.

The ADB’s planned financing of more than $7.5 billion through 2030, together with its target to mobilise around $3 billion in private investment, could support this transition by helping CAREC countries develop infrastructure more closely integrated with economic activity.

For Pakistan, the planned 2027 CAREC chairmanship offers an opportunity to advance regional coordination on trade facilitation, logistics development and transport connectivity while strengthening links between Central Asian markets and Arabian Sea ports.

Experts believe the success of CAREC’s next phase will depend on how effectively participating countries combine infrastructure investment with regulatory cooperation, efficient border management and commercially viable transport services.

Such an approach could help ensure that regional connectivity translates into sustainable growth in trade, investment and employment.

TMUC celebrates Class of 2026 graduation in Islamabad with global university leaders

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TMUC celebrates Class of 2026 graduation in Islamabad with global university leaders

ISLAMABAD, Oct 14 (ABC): TMUC Higher Education Group celebrated its Class of 2026 graduation ceremony at Serena Hotel, Islamabad, bringing together national dignitaries, senior British university officials, international education partners, faculty members, parents and graduates.

Dr Muhammad Najeeb Naqi Khan, President of Azad Jammu and Kashmir, attended the ceremony as chief guest, while Dr Faisal Mushtaq (TI), Founder and CEO of TMUC Higher Education Group, hosted the event.

The gathering also included former AJK President Sardar Masood Khan, President of CLAS, and James Hampson, Country Director of the British Council Pakistan, alongside prominent national and international academic leaders.

TMUC marks 10 years of partnership with UK university

A major highlight of the ceremony was the participation of Professor Anthony Woodman, Vice-Chancellor of the University of Hertfordshire, United Kingdom, who travelled from London to Islamabad to deliver the keynote address and visit TMUC campuses.

His visit coincided with the completion of 10 years of academic partnership between TMUC and the University of Hertfordshire. The collaboration focuses on internationally recognised British higher education, academic excellence, graduate employability and global learning opportunities for Pakistani students.

Addressing the graduating class, Professor Woodman congratulated students on their academic achievements and highlighted the importance of employability, ambition, adaptability and a global outlook in an increasingly competitive and technology-driven world.

He emphasised that higher education must remain closely connected with industry, innovation and emerging professional opportunities. He also encouraged graduates to embrace lifelong learning, critical thinking, creativity and leadership.

Reflecting on the decade-long partnership, Professor Woodman reaffirmed the shared commitment of the University of Hertfordshire and TMUC to preparing internationally competent and professionally equipped graduates.

His visit to TMUC campuses also provided opportunities to strengthen institutional engagement and explore further academic collaboration.

University for the Creative Arts marks eight-year collaboration

The ceremony also welcomed Professor Lyndsay Duthie, Pro Vice-Chancellor for Academic Partnerships and Industry Engagement at the University for the Creative Arts (UCA), United Kingdom.

She was accompanied by Catherine Riley, Assistant Director of International Partnerships at UCA. Both officials travelled from London to attend the graduation ceremony.

Their participation marked eight years of academic partnership between TMUC and the University for the Creative Arts. The collaboration focuses on creativity, design, innovation, entrepreneurship and industry-oriented education.

The presence of senior leadership from both British universities highlighted TMUC’s continuing efforts to strengthen Pakistan-UK academic cooperation and expand access to internationally connected higher education.

Graduate employability and creativity take centre stage

Welcoming the distinguished guests, Dr Faisal Mushtaq congratulated the Class of 2026 and acknowledged the contributions of parents, faculty members and international academic partners.

He described graduation as the beginning of a new journey of responsibility and lifelong learning. He stressed that universities must prepare students not only to earn qualifications but also to make meaningful contributions to society and the global economy.

“A university’s greatest ranking is not in a magazine, but in the employability of its graduates,” Dr Mushtaq said.

Highlighting the growing influence of artificial intelligence on education and employment, he added, “In an age of Artificial Intelligence, creativity is not a soft skill; it is the ultimate human skill.”

He encouraged graduates to remain intellectually curious, professionally adaptable and entrepreneurial while developing the confidence to create opportunities rather than simply wait for them.

Chief guest President Dr Muhammad Najeeb Naqi Khan congratulated the graduates and highlighted the importance of education in developing responsible leadership, active citizenship and a commitment to public service.

The ceremony was also attended by Zeyad Ahmed, Senior Business Manager at NCC Education; Waqar Shah, Deputy General Manager at Pearson Pakistan; and Saad Wasim, Regional Advisor for South Asia at the University of London.

The participation of former AJK President Sardar Masood Khan and British Council Pakistan Country Director James Hampson further highlighted the importance of international educational cooperation and institutional partnerships.

Graduates recognised across multiple disciplines

The ceremony recognised graduates from TMUC’s Schools of Education, Creative Arts, Computing, Business and Social Sciences, Foundations and Laws.

These academic pathways are offered through collaborations with the University of Hertfordshire, University of London, University for the Creative Arts, Pearson and NCC Education in the United Kingdom.

Building on the 40-year educational legacy of The Millennium Education Group, TMUC continues to promote transnational higher education in Pakistan through internationally recognised qualifications, academic innovation and industry engagement.

The institution also places emphasis on graduate employability and preparing students for changing professional requirements.

Its decade-long partnership with the University of Hertfordshire and eight-year collaboration with the University for the Creative Arts represent significant milestones in its international academic engagement.

The ceremony concluded with the presentation of commemorative mementos to distinguished guests, followed by a cake-cutting ceremony and reception.

The event reaffirmed TMUC’s commitment to preparing graduates with the knowledge, creativity, technical skills and leadership capabilities needed to pursue professional opportunities in Pakistan and internationally.

Govt earmarks Rs12.75bn for six major infrastructure projects

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Govt earmarks Rs12.75bn for six major infrastructure projects

ISLAMABAD, Oct 14 (ABC): The government has allocated Rs12.75 billion under the Public Sector Development Programme (PSDP) 2026-27 for six major infrastructure projects with a combined PC-I cost of Rs1.065 trillion.

According to official documents available with Wealth Pakistan, the allocation comprises Rs9.60 billion in local funding and Rs3.15 billion in foreign assistance. The projects include major highway and motorway schemes, tunnel-related infrastructure and land acquisition for road development.

The documents show that first-quarter releases for FY2026-27 totalled Rs199.4 million, while recorded utilisation stood at Rs53.48 million. Meanwhile, cumulative expenditure on the six projects up to June 2026 amounted to Rs505.698 million.

Karakoram Highway relocation gets largest allocation

The government has earmarked the largest allocation of Rs5 billion for relocating the Karakoram Highway between Thakot and Raikot due to the construction of dams on the Indus River.

The 241-kilometre project, listed as China EXIM-funded, has a PC-I cost of Rs502.6 billion, making it the most expensive of the six schemes. Its annual allocation includes Rs4.5 billion in local funding and Rs500 million in foreign assistance.

Another major scheme is the Lahore-Sahiwal-Bahawalnagar Motorway, which has received an allocation of Rs2 billion against a PC-I cost of Rs435.72 billion.

The project covers 295 kilometres of motorway construction, along with an 18-kilometre link connecting the Lahore Ring Road at Raja Jang Interchange to Kasur Road. According to the documents, the project’s revised PC-I is undergoing approval.

Meanwhile, the revised Khyber Pass Economic Corridor (KPEC) project has received an allocation of Rs2.5 billion for FY2026-27.

The World Bank-funded scheme carries a PC-I cost of Rs77.91 billion, while cumulative expenditure up to June 2026 stood at Rs214.38 million.

Together, the Karakoram Highway relocation, Lahore-Sahiwal-Bahawalnagar Motorway and KPEC account for Rs9.5 billion. This represents approximately 74.5% of the total annual allocation for the six projects.

Rs3.25bn allocated for three other road projects

The government has allocated the remaining Rs3.25 billion to three schemes involving the Lowari Tunnel, Chakdara-Chitral Road and land acquisition for the Karakoram Highway relocation.

Of this amount, Rs2 billion has been earmarked for electrical and mechanical works and bridges associated with the Lowari Tunnel.

The project has a PC-I cost of Rs33.25 billion and is currently under procurement. It is also the only scheme among the six for which the documents record first-quarter releases and utilisation.

According to the figures, the government released Rs199.4 million during the first quarter of FY2026-27, while expenditure utilisation amounted to Rs53.48 million.

The Chakdara-Chitral Road Project (N-45), Section III, covering the 48-kilometre Kalkatak-Chitral section, has received an allocation of Rs500 million against a PC-I cost of Rs10.95 billion.

The project, identified as EDCF/Korea-funded, will receive Rs50 million in local funding and Rs450 million in foreign assistance. Its current status is also listed as under procurement.

Meanwhile, the government has allocated Rs750 million for land acquisition associated with the relocation of the Karakoram Highway between Thakot and Raikot.

The land-acquisition scheme has a PC-I cost of Rs4.13 billion and is listed as under process.

First-quarter utilisation stands at Rs53.48m

The documents show that three of the six projects are at the procurement stage, while the Lahore-Sahiwal-Bahawalnagar Motorway awaits approval of its revised PC-I.

The documents also record combined liabilities of Rs155.683 million, alongside first-quarter utilisation of Rs53.48 million against releases of Rs199.4 million.

These figures provide a snapshot of the funding and implementation position of the six infrastructure projects under PSDP 2026-27.

Global AI boom shifts focus to smarter, greener data centre development

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Global AI boom shifts focus to smarter, greener data centre development

ISLAMABAD, Oct 14 (ABC): The global surge in artificial intelligence (AI) and cloud computing is transforming data-centre development. Governments and technology companies are increasingly focusing on energy efficiency, sustainable infrastructure and economic value alongside the rapid expansion of computing capacity.

As demand for AI infrastructure accelerates, the international data-centre industry is moving beyond simply building more facilities. Instead, greater attention is being paid to operational efficiency, location and the contribution of these facilities to digital innovation and economic growth.

According to UN Trade and Development (UNCTAD), announced investment in data centres exceeded $270 billion in 2025. This accounted for more than one-fifth of global greenfield project values as demand for AI infrastructure, cloud services and digital networks continued to expand.

The investment surge reflects the growing importance of data centres as critical infrastructure for the digital economy. These facilities support AI applications, cloud computing, digital public services and increasingly sophisticated industrial technologies.

Rising electricity demand puts sustainability in focus

However, rapid expansion is placing greater pressure on electricity systems and other resources. The International Energy Agency (IEA) projects that global data-centre electricity consumption will more than double to approximately 945 terawatt-hours by 2030, with AI emerging as the principal driver.

These projections have brought energy availability, renewable electricity integration, efficient cooling systems and water consumption into sharper focus. Countries are also paying greater attention to computing-resource utilisation as they plan their next generation of digital infrastructure.

China is among the countries placing greater emphasis on sustainable and efficient computing facilities. Last month, five Chinese government bodies launched the 2026 selection programme for National Green Computing Facilities.

The programme assesses data centres on energy and carbon efficiency, water consumption, renewable electricity use and utilisation of computing resources.

Industry experts say countries seeking to benefit from the global AI investment boom must look beyond attracting capital and constructing facilities. They also need reliable electricity, high-speed connectivity, technical capabilities and sustainable economic benefits.

Pakistan needs coordinated data-centre development

Hassan Abbas, CEO of Sky47, a Pakistani data-centre and sovereign-cloud operator, told Wealth Pakistan that Pakistan was entering an important phase of digital infrastructure development. However, rapid expansion also carried the risk of uncoordinated development and data-centre sprawl.

He said data centres should be treated as critical national infrastructure rather than isolated technology or real-estate projects. Planning should consider power availability, connectivity, land, water, renewable energy, cybersecurity, disaster recovery, data sovereignty and future AI workloads together.

Abbas said coordination should not restrict private investment. Instead, it should ensure that facilities are developed where strategically required and meet appropriate technical and sustainability standards.

He warned that duplicated or poorly planned facilities could lead to inefficient utilisation of scarce electricity, land and connectivity resources. Such development could also increase the overall cost of digital infrastructure.

Abbas proposed establishing a Pakistan Data Centre Association to bring together operators, cloud service providers and other stakeholders. The association could provide a structured platform for capacity planning, industry standards, sustainability benchmarks, knowledge-sharing and engagement with regulators.

He said such coordination would help Pakistan develop a more integrated digital infrastructure ecosystem while allowing individual operators to compete and innovate.

Data-centre investment should support wider economic growth

Abbas also stressed that authorities should evaluate data-centre investment by the economic activity it enabled rather than simply counting facilities or measuring capital investment.

The wider benefits, he said, included local employment, technical skills, domestic cloud adoption, cybersecurity capabilities and AI infrastructure. Investment could also support software development and help Pakistani businesses develop and scale digital products.

Pakistan already has a Cloud First Policy aimed at increasing public-sector adoption of cloud services. Abbas said the priority should now be consistent implementation and migration of government workloads to avoid further fragmentation of public-sector digital infrastructure.

For the longer term, he emphasised developing a national digital infrastructure ecosystem rather than a collection of independent facilities.

“The principle should be simple: competition between operators, but coordination at the ecosystem level,” Abbas said.

Reliable energy, skills and connectivity remain essential

Muhammad Arif Rabbany, CEO of K2 Peak Technologies and Chairman of the Gilgit-Baltistan IT Association, told Wealth Pakistan that countries competing for data-centre investment faced increasingly demanding requirements.

Investors, he said, were assessing reliable and competitively priced electricity, high-speed connectivity, international bandwidth, cybersecurity standards and regulatory certainty.

Rabbany said Pakistan needed to develop local technical capabilities alongside physical infrastructure. This would help investment generate opportunities for domestic engineers, technicians and businesses working in cooling, networking, power management, cybersecurity and cloud services.

He said partnerships with international technology companies, including Chinese firms already active in Pakistan’s telecommunications and digital sectors, should increasingly incorporate skills development, local engineering and technology transfer. Such cooperation should extend beyond the supply of imported equipment.

Rabbany added that emerging economies should assess whether data-centre investment supported local cloud services, AI companies and technology suppliers. At the same time, development needed to remain compatible with available electricity and infrastructure resources.

Both experts emphasised that sustainability and resource planning were becoming increasingly important as data-centre capacity expanded.

The global shift towards energy-efficient and coordinated computing infrastructure offers an important reference point for Pakistan. It comes as the country develops its digital economy and seeks to benefit from growing investment in AI and cloud services.

For Pakistan, the challenge is to translate these international developments into coordinated planning for electricity, connectivity, technical standards and workforce development. Such an approach could ensure that future data-centre investment supports broader digital-sector growth rather than creating isolated infrastructure.

Abbas said the long-term objective should be an integrated digital infrastructure ecosystem. It should encourage private-sector competition while ensuring coordination on the resources, standards and capabilities needed to sustain growth.

China’s financial reforms widen funding opportunities for overseas investment

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China’s financial reforms widen funding opportunities for overseas investment

ISLAMABAD, Oct 8 (ABC): China’s latest cross-border financial reforms are widening funding opportunities for companies operating internationally. The measures give businesses greater flexibility to finance overseas operations and manage liquidity across markets while retaining regulatory safeguards over capital flows.

Introduced during 2026, the reforms signal a broader effort to ease financing constraints for Chinese companies with international operations. They cover corporate overseas lending, banks’ cross-border lending capacity and the management of renminbi and foreign-currency funds by multinational companies.

In March, the People’s Bank of China and the State Administration of Foreign Exchange unified renminbi and foreign-currency rules governing overseas lending by domestic enterprises.

Under the framework, regulators increased the macroprudential adjustment coefficient used to determine companies’ overseas lending ceiling from 0.5 to 0.6. The ceiling is linked to a lender’s latest audited owners’ equity, allowing eligible companies to lend more to overseas entities while remaining under regulatory supervision.

China expands overseas lending capacity

Regulators followed this in April by expanding the overseas lending capacity of certain banks. They raised the overseas lending leverage ratio for foreign-funded banks operating in China from 0.5 to 1.5. Meanwhile, the ratio for the Export-Import Bank of China increased from 3 to 3.5.

A further measure took effect in September, when China extended its integrated renminbi and foreign-currency cash-pooling framework for multinational companies nationwide.

The mechanism enables eligible corporate groups to centrally manage domestic and overseas funds, undertake internal liquidity transfers and conduct centralised current-account receipts and payments.

Together, the measures provide internationally active companies with greater flexibility to move funding through regulated channels. They could also reduce financing costs and make it easier to support commercially viable overseas operations and expansion.

Dr Uzma Zia, Senior Research Economist at the Pakistan Institute of Development Economics, told Wealth Pakistan that the changes suggested Beijing was seeking greater flexibility for internationally active firms while retaining safeguards against destabilising financial flows.

“The important aspect is not simply that more money can move abroad. Chinese firms are being given greater flexibility to use their balance sheets and manage funding across markets where they already have commercial operations. For economies such as Pakistan, this could improve the financing environment for viable Chinese investments and expansion projects,” she said.

Reforms create opportunities for Pakistan

Dr Sajjad Hasan, Senior Economist at the Applied Economics Research Centre, University of Karachi, said the reforms could reduce financial inefficiencies faced by Chinese enterprises operating across several jurisdictions.

“For an international company, the ability to mobilise surplus liquidity from one part of the group to another can lower financing costs and reduce dependence on separate borrowing in every market. That can make overseas operations more efficient and potentially free resources for expansion,” he told Wealth Pakistan.

Hasan said Pakistan could benefit where Chinese companies already operating under CPEC or in manufacturing, infrastructure, energy and technology identified commercially viable opportunities for reinvestment.

“However, easier capital movement on the Chinese side should not be confused with an automatic increase in investment into Pakistan. Projects will still compete for capital on profitability, regulatory certainty and risk. Pakistan has to improve those fundamentals if it wants to capture a larger share of outward Chinese funding,” he said.

China’s overseas investment shows mixed trends

The reforms come as China’s outward investment performance remains mixed. According to the Ministry of Commerce and the State Administration of Foreign Exchange, China’s all-industry outward direct investment reached RMB778.47 billion during January-August 2026, down 0.6% year-on-year.

However, measured in dollars, outward investment increased 3.9% to $113.39 billion during the same period.

Non-financial outward direct investment stood at RMB595.06 billion, declining 14.4%. Chinese investors directed capital into 8,424 overseas enterprises across 148 countries and regions.

Investment in Belt and Road partner countries also remained selective. Chinese non-financial direct investment in these economies amounted to RMB167.24 billion during the first eight months, down 11.3% year-on-year.

At the same time, completed turnover from contracted projects in Belt and Road countries increased 7.7% to RMB682.35 billion.

Zia said this divergence made the policy changes particularly significant.

“China appears to be improving the channels through which productive overseas activity can be financed rather than pursuing indiscriminate capital expansion. For Pakistan, that means the opportunity lies in presenting bankable projects where easier Chinese funding mechanisms can translate into actual investment,” she said.

OGDC plans 68% rise in oil output, 46% increase in gas sales by FY31

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OGDC plans 68% rise in oil output, 46% increase in gas sales by FY31

ISLAMABAD, Oct 12 (ABC): Oil and Gas Development Company Limited (OGDC) has outlined a five-year expansion plan targeting a 68% increase in crude oil production and a 46% rise in natural gas sales by FY2030-31. The strategy focuses on development drilling, interventions at existing fields, pressure-maintenance initiatives and major gas compression projects.

According to official documents available with Wealth Pakistan, OGDC aims to increase crude oil production from 36,013 barrels per day (BPD) in FY2025-26 to 60,384 BPD by FY2030-31.

Similarly, the company projects natural gas sales to rise from 797 million standard cubic feet per day (MMscfd) to 1,167 MMscfd over the same period.

The five-year strategy envisages drilling 140 development wells, undertaking 200 rig and rigless interventions and implementing 19 brownfield revitalisation initiatives. It also includes 10 greenfield development and old-discovery projects, 12 pressure-maintenance and enhanced oil recovery (EOR) projects, and expansion of seven existing production plants.

Oil production projected to reach 60,384 BPD

According to the production outlook, OGDC expects crude oil output to increase to 41,076 BPD in FY2026-27, followed by 51,239 BPD in FY2027-28 and 57,028 BPD in FY2028-29.

The company projects production to reach 59,747 BPD in FY2029-30 before rising further to 60,384 BPD in FY2030-31.

Meanwhile, the gas sales outlook projects 764 MMscfd in FY2026-27, increasing to 935 MMscfd in FY2027-28 and 1,125 MMscfd in FY2028-29.

Gas sales are subsequently expected to reach 1,154 MMscfd in FY2029-30 and 1,167 MMscfd in FY2030-31.

Five major development and compression projects

As part of its development programme, OGDC has identified five major development and compression projects. Two have already been commissioned, while the remaining three are scheduled for completion between November 2026 and March 2028.

The projects comprise Jhal Magsi, Dakhni front-end compression, Uch compression, KPD-TAY compression and Sinjhoro Development Phase-II.

The Jhal Magsi project was commissioned in August 2025. According to the company’s presentation, the project has associated production of 14 MMscfd of natural gas and 45 barrels of crude oil per day.

The Dakhni front-end compression project was commissioned in February 2026, with associated production figures of 100 barrels of oil per day, 5 MMscfd of natural gas and 30 metric tonnes of sulphur daily.

Meanwhile, the Uch compression project is expected to be completed in November 2026. OGDC describes the project as essential for maintaining the field’s production plateau.

The KPD-TAY compression project is scheduled for completion in December 2026. The company lists associated production of 750 barrels of condensate per day, 50 MMscfd of natural gas and 130 tonnes of liquefied petroleum gas (LPG) daily.

Sinjhoro Development Phase-II is expected to be completed in March 2028, with associated production figures of 27 MMscfd of natural gas and 30 tonnes of LPG per day.

OGDC holds major share of Pakistan’s oil and gas reserves

The company’s presentation also highlights its position in Pakistan’s exploration and production sector.

According to the documents, OGDC accounts for approximately 55% of Pakistan’s crude oil production, 28% of natural gas production and 35% of LPG output.

The company holds 58% of the country’s oil reserves and 28% of its natural gas reserves, according to the presentation.

Its exploration acreage represents approximately 31% of Pakistan’s total area under exploration. Meanwhile, its seismic acquisition contribution stands at 53% for two-dimensional surveys and 34% for three-dimensional surveys.

OGDC has 112 production leases, including 82 operated and 30 non-operated interests.

The company reports current production of approximately 40,000 barrels of crude oil per day, 815 MMscfd of natural gas and 780 metric tonnes of LPG daily.

It also reported net sales revenue of approximately $1.6 billion for FY2025-26.

China’s factory rebound signals growing role of AI in industrial expansion

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China’s factory rebound signals growing role of AI in industrial expansion

ISLAMABAD, Oct 12 (ABC): China’s manufacturing sector has returned to expansion, supported by strong growth in high-technology production, robotics and digital equipment. The recovery highlights the increasing role of artificial intelligence (AI) and automation in the country’s industrial development.

China’s official manufacturing Purchasing Managers’ Index (PMI) rose to 50.1 in September from 49.8 in August, crossing the 50-point threshold separating expansion from contraction, according to the National Bureau of Statistics.

Manufacturing production increased more noticeably, with the production subindex rising 1.3 percentage points to 51.7. Meanwhile, the new orders index remained in expansion territory at 50.5.

The improvement followed particularly strong growth in technology-intensive manufacturing. In August, China’s industrial output increased 5.2% year-on-year, while manufacturing output expanded 6.1%. Equipment manufacturing grew 12.1%, and high-technology manufacturing surged 16.7%, significantly outperforming overall industrial production.

High-tech manufacturing drives industrial growth

The technology component of China’s industrial growth has become increasingly visible. The value added of the country’s digital product manufacturing industry increased 15.7% in August.

Electronics components and equipment manufacturing grew 22.9%, while intelligent equipment manufacturing expanded 14.2%. Computer manufacturing also recorded an increase of 11.9%.

Industrial robotics has emerged as another important growth area. China produced 96,174 industrial robots in August, an increase of 34.6% from a year earlier. During the first eight months of 2026, industrial robot production reached 729,352 units, up 29%.

Integrated circuit output increased 20.6% in August and 22.3% during January-August, reflecting continued expansion in semiconductor-related production.

China’s statistics authority said new growth drivers, including high-technology and digital product manufacturing, contributed more than 60% of the increase in industrial output in August. It also reported that AI-related demand helped lift sensor production by 42.6% and optical fibre products by 20.7%.

The combination of recovering factory activity and rapid growth in advanced manufacturing suggests that AI, automation and digital technologies are becoming increasingly important to China’s industrial expansion. Manufacturers are increasingly adopting these technologies to improve productivity, efficiency and production quality.

AI integration reshapes factory production

Prof. Dr. Muhammad Usman Ghani Khan, Director of the National Centre of Artificial Intelligence at UET Lahore, told Wealth Pakistan that the significance of China’s latest manufacturing recovery extended beyond factory output.

He said the growing integration of AI with physical production was becoming an important driver of industrial development.

“Artificial intelligence is increasingly moving from software applications into the production system itself. When AI is combined with robotics, machine vision, predictive maintenance and automated quality control, manufacturers can improve productivity and use machinery, materials and energy more efficiently,” he said.

Khan said China’s manufacturing scale represented an important advantage because companies could test and commercialise new AI systems across extensive industrial networks.

“The next stage of AI growth will not be driven only by large language models. A major part of its economic value will come from applying intelligence inside factories, supply chains and industrial equipment. China is well positioned to demonstrate how that transition can take place at scale,” he added.

Sajjad Ahmed, Deputy Manager Business Development at Descon Engineering Limited, said AI-driven manufacturing could increasingly reshape how industrial companies evaluated competitiveness, operational efficiency and investment decisions.

“For engineering companies, the opportunity is not simply replacing labour with machines. The larger gains come from reducing downtime, detecting faults before equipment fails, improving production planning and getting more output from existing industrial assets,” he told Wealth Pakistan.

Ahmed said countries seeking to maintain manufacturing competitiveness would increasingly need to combine conventional engineering capabilities with digital systems.

China’s AI advances offer lessons for Pakistan

Ahmed said China’s progress in advanced manufacturing offered useful lessons for Pakistan. Integrating AI into industrial operations could help improve productivity, strengthen engineering services and modernise supply chains.

“China’s experience is important because it shows how technology adoption can move beyond isolated pilot projects and become part of industrial capacity. For Pakistan, the lesson is that AI adoption should eventually be connected with factories, engineering services and supply chains where measurable productivity improvements can be achieved,” Ahmed said.

Despite the improvement in overall manufacturing activity, China’s recovery remains uneven across different categories of enterprises.

While the headline manufacturing PMI returned to expansion in September, the index for medium-sized enterprises stood at 49.7. The corresponding reading for smaller manufacturers was 48.9, indicating that some businesses continued to face pressure even as larger industrial companies benefited from improving conditions.

The divergence highlights the importance of extending technological advances beyond major manufacturers. Smaller industrial enterprises also need opportunities to benefit from AI-driven production systems, automation and digital infrastructure.

Khan said the broader economic impact of China’s technological progress would depend on how effectively advanced manufacturing technologies spread across the industrial sector.

“The real test of an AI-led industrial cycle will be whether advanced technologies spread beyond leading companies and begin raising productivity across ordinary manufacturing businesses. If that happens, AI can become not simply a technology sector, but a broader industrial growth engine,” he said.

Sindh plans $9.15m floating agriculture project across 100 villages

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Sindh plans $9.15m floating agriculture project across 100 villages

ISLAMABAD, Oct 11 (ABC): Sindh has proposed a $9.15 million climate-resilient floating agriculture project targeting 100 waterlogged and flood-prone villages in the province’s lower region. The initiative aims to develop 400 hectares of resilient cropland and train 10,000 farmers by 2029.

According to official documents available with Wealth Pakistan, the project, titled Climate-Resilient Floating Agriculture Systems for Waterlogged and Flood-Prone Areas of Lower Sindh, envisages introducing floating agriculture using organic rafts to cultivate vegetables, herbs and grains.

The initiative aims to improve food security by 30% by 2029 while reducing displacement and strengthening livelihoods in communities affected by waterlogging and floods.

The programme targets 100 villages and 400 hectares of climate-resilient cropland. It is expected to benefit 12,500 people directly and another 50,000 indirectly.

Training planned for 10,000 farmers

Under the proposed project, 10,000 farmers would receive training in floating agriculture and climate-smart, flood-resilient farming techniques. Women are expected to account for 20% to 30% of the farmers targeted for training.

The project also envisages supporting women-led farmer groups through training and seed capital. These interventions aim to strengthen livelihoods and improve food security in vulnerable rural communities.

Proposed activities include cultivating crops on organic rafts, providing practical training in climate-resilient farming and supporting women’s participation in agricultural production.

Project targets improved food security by 2029

The Environment, Climate Change and Coastal Development Department (ECC&CDD), Sindh, has been identified as the executing entity.

Meanwhile, the United Nations Development Programme (UNDP), National Agricultural Research Centre, Sindh Agriculture University Tandojam and Sindh Agriculture Department are listed as supporting organisations.

According to the document, the programme targets a 30% improvement in food security by 2029. It also envisages covering 100 waterlogged villages and developing 400 hectares of resilient cropland.

The proposed budget stands at $9.15 million. The initiative is among the projects being processed under the World Bank Country Partnership Framework for Pakistan, covering FY2026 to FY2035.

Developing economies strengthen refinancing strategies amid higher global yields

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Developing economies strengthen refinancing strategies amid higher global yields

ISLAMABAD, Oct 8 (ABC): Developing economies are placing greater emphasis on longer debt maturities, diversified funding sources and concessional financing as higher global government bond yields increase the cost of refinancing external debt.

The renewed focus on debt management comes as several developing economies regain access to international capital markets following an exceptionally difficult debt cycle. However, elevated benchmark yields continue to make new borrowing and refinancing expensive, particularly for weaker-rated sovereigns.

Sarwat Shah, Business Development Executive at JS Investments, told Wealth Pakistan that the concern for developing economies was not simply rising US yields. Rather, it was the higher benchmark against which lenders calculate their borrowing costs.

“When the risk-free rate rises sharply, emerging market borrowers start from a much more expensive base even if their individual credit spreads do not deteriorate. For countries approaching sizeable debt maturities, that can turn refinancing into a much more difficult and costly exercise,” she said.

Shah said countries with weaker external buffers needed to carefully weigh their financing options. These included paying higher yields to retain market access, delaying debt issuance where possible or relying more heavily on multilateral and bilateral financing.

Rising US Treasury yields increase borrowing costs

US Treasury data show that the 10-year Treasury yield reached 5.27% on October 6, while the 30-year yield stood at 5.64%. On September 16, the same maturities stood at around 4.23% and 4.43%, respectively. The increase illustrates how quickly long-term global borrowing benchmarks have changed.

However, the impact on developing-country borrowing conditions has not been uniform.

A recent World Bank analysis found that dollar-denominated sovereign borrowing costs for emerging market and developing economies rose less than US Treasury yields. Narrowing sovereign spreads helped absorb part of the increase, although absolute financing costs remained high.

Median yields for weaker-credit developing economies stand at around 9%, compared with 6.3% for stronger-credit borrowers. Countries carrying a larger share of short-term debt face median yields of about 7%, against 6.1% for those with lower short-term exposure.

Maham Imran, Research Associate at Foundation Securities, said refinancing stress tended to emerge when high borrowing costs coincided with concentrated repayment schedules.

“A country may have manageable debt on paper, but if a large portion matures while international yields are elevated, the refinancing rate can be far higher than the rate on the debt being replaced. That raises future interest payments and can progressively consume fiscal space,” she told Wealth Pakistan.

“For vulnerable economies, the pressure can then spread beyond the debt account. Higher external financing costs can weigh on foreign exchange reserves, currencies, domestic interest rates and ultimately the government’s ability to allocate resources towards development spending,” she added.

Developing economies face heavy external debt burden

The renewed emphasis on refinancing strategies follows an exceptionally difficult debt cycle for developing economies. According to World Bank estimates, low- and middle-income countries paid a record $415.4 billion in interest on external debt in 2024. This was more than twice the level recorded a decade earlier.

Between 2022 and 2024, developing economies paid $741 billion more in principal and interest than they received through new external financing. This represented the largest net debt outflow in at least five decades.

Nevertheless, bond markets have begun reopening. In 2024, private bond investors provided developing economies with around $80 billion more in fresh financing than they collected in repayments and interest. However, borrowing rates remained close to 10%, roughly twice their pre-2020 levels.

The World Bank has projected total external debt service by low- and middle-income economies to decline from an estimated $1.2 trillion in 2025 to $918 billion by 2027. The projection partly assumes easing global financing conditions.

However, higher global yields make careful management of debt maturities and funding sources increasingly important. Such measures could help developing economies manage their repayment obligations without adding excessive pressure to public finances.

Pakistan focuses on concessional financing, longer maturities

Pakistan is partially insulated from immediate global bond-market repricing because of the composition of its external public debt.

According to the Finance Ministry, around 75% of the country’s approximately $92 billion external public debt consists of concessional and long-term multilateral and bilateral financing.

The government has also made longer maturities, concessional borrowing and diversification of funding sources central to its debt-management strategy. These measures aim to reduce dependence on any single financing channel during periods of global market volatility.

Imran said the latest developments reinforced the importance of managing refinancing risks well before repayment obligations became immediate.

“The lesson for developing economies is that market access alone is not enough. The maturity structure and the price at which debt is refinanced matter just as much. A prolonged period of high global yields can turn what appears to be a liquidity problem into a much broader fiscal constraint,” she said.

Nepal flood losses highlight need for climate-resilient hydropower in South Asia

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Nepal flood losses highlight need for climate-resilient hydropower in South Asia

ISLAMABAD, Oct 10 (ABC): Severe flood damage to energy and transport infrastructure in Nepal has highlighted the growing need for climate-resilient hydropower development across South Asia. Himalayan countries face increasing exposure to floods, landslides, glacial hazards and more erratic river flows, raising concerns about the resilience of major infrastructure projects.

The issue has gained renewed attention following catastrophic flooding in Nepal. The World Bank said it had made up to $170 million in emergency financing available to support Nepal’s immediate response. The funding would also help restore critical infrastructure and services following the Rasuwa Bhote Koshi flood.

The economic consequences are extending beyond the immediate disaster. In its latest Nepal Development Update, the World Bank projected the country’s economic growth to slow to 3.7% in FY27. It identified extensive damage to hydropower, solar, electricity transmission and transport infrastructure as a major drag on industrial activity.

However, reconstruction is expected to help Nepal’s economic growth recover to 5.2% in FY28.

The flood also directly affected the Upper Trishuli-1 hydropower project, with the extent of damage still being assessed. Meanwhile, the World Bank is working with Nepal on reconstruction and investment programmes aimed at building more resilient infrastructure.

Nepal’s experience offers lessons for Pakistan

Nepal’s experience carries particular relevance for Pakistan, where much of the country’s existing and planned hydropower capacity is concentrated in mountainous areas. These regions face risks from flash floods, landslides, glacial lake outburst floods and increasingly erratic river flows.

Fatima Rehan, Environmental Economist at the Pakistan Institute of Development Economics, told Wealth Pakistan that the stronger economic case for dams lay in water management, agriculture and protection against repeated flood losses.

“Pakistan’s central problem is not only the volume of water available, but the country’s limited ability to manage that water across seasons. During major flood events, very large flows move through the river system in a short period, while the economy later faces water shortages for irrigation and other uses,” she said.

Rehan said greater storage capacity could improve the country’s ability to manage that imbalance.

“Reservoirs preserve part of the high-flow water for later agricultural and domestic use and support more stable irrigation supplies during dry periods. That directly affects farm productivity, rural incomes and food security,” she said.

She added that dams could also help manage extreme water events when sufficient storage capacity was available and reservoirs were operated effectively.

“When storage space is available and reservoirs are operated effectively, dams reduce pressure on downstream areas and provide authorities with greater control over flood flows. This does not eliminate flood risk, but it strengthens the country’s ability to manage extreme water events and reduce damage to crops, roads, settlements and productive infrastructure,” she said.

Rehan added that Pakistan should evaluate new dam projects on their combined economic benefits rather than on power generation alone.

Climate risks require stronger infrastructure standards

An official of the Environmental Protection Agency (EPA) said Himalayan hydrology required updated infrastructure standards to account for altered river flows, glacial melt and increasingly erratic monsoon patterns.

He said authorities needed to design long-life assets such as dams, hydropower plants, access roads and transmission networks for future climate conditions rather than historical averages.

“Pakistan needs to assess future projects against changing river flows, more intense rainfall, glacial melt and the growing risk of landslides and flash floods. Climate resilience has to become part of the engineering design from the beginning rather than being added after construction,” he said.

Climate-resilient dam infrastructure could also strengthen Pakistan’s ability to manage increasingly volatile water flows. At the same time, it could support electricity generation, agriculture and long-term water security.

Basin-level planning needed for hydropower resilience

The EPA official said protecting individual projects would not be sufficient as climate-related risks increasingly affected entire river systems and associated infrastructure.

“Pakistan also needs to move from project-by-project protection towards basin-level climate-risk planning. Hydropower development, flood management, watershed rehabilitation, sediment control, early-warning systems and downstream community protection should increasingly be planned together because climate risks do not stop at the boundary of an individual project,” he said.

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