Displaced Palestinians return to the war-devastated Jabalia refugee camp in the northern Gaza Strip, shortly before a ceasefire deal between Israel and Hamas was implemented. AFP
Displaced Palestinians return to the war-devastated Jabalia refugee camp in the northern Gaza Strip, shortly before a ceasefire deal between Israel and Hamas was implemented. AFP

2023 - Saudi-Iranian rapprochement and the Oct. 7 attacks

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Updated 19 April 2025
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2023 - Saudi-Iranian rapprochement and the Oct. 7 attacks

2023 - Saudi-Iranian rapprochement and the Oct. 7 attacks
  • Surprise assault on Israel by Hamas triggers massive war on Gaza, reshapes the Middle East and raises questions about future of the territory

RIYADH: The year 2023 began with signs of shifting regional dynamics. On March 10, senior security officials from China, Iran and Saudi Arabia met in Beijing to formalize an agreement restoring diplomatic ties between Riyadh and Tehran after more than four decades of tensions.

While both sides described the rapprochement as cautious, the deal marked a turning point. Previous rounds of talks, hosted by Iraq and Oman, had paved the way for dialogue but the final agreement signaled a broader shift toward diplomacy and direct engagement over longstanding hostility.

In the months that followed, Iran and Saudi Arabia reestablished diplomatic missions, with Tehran reopening its embassy in Riyadh and the Kingdom resuming operations in the Iranian capital. The agreement provided a framework for the two countries to focus on shared regional challenges rather than their history of rivalry. For Riyadh, in particular, the easing of tensions with Iran was a crucial step toward achieving the stability needed for its long-term development goals.

This momentum toward regional realignment was further reflected in reports of ongoing Saudi-Israeli normalization talks, brokered by the US. Speculation intensified until Sept. 21, when Crown Prince Mohammed bin Salman confirmed, in an interview with Fox News, that Saudi Arabia was moving “closer” to a deal with Tel Aviv, describing it as “the biggest historical agreement since the end of the Cold War.” However, he also stressed that the Palestinian issue remained a key factor in any potential accord.

In hindsight, his words seemed to foreshadow what would come next. Two weeks later, on Oct. 7, Hamas launched a large-scale attack on Israel, shattering hopes of a breakthrough in Saudi-Israeli relations.

More than that, the attacks represented a seismic event that left Israelis and Palestinians, and the rest of the Middle East, badly bleeding. The scars will remain on the two peoples and their societies, and many others far beyond their borders, for decades to come.

How we wrote it




Arab News reported the unprecedented attacks with two main images comparing Oct. 7 to the 1973 Yom Kippur War. 

The brutality of the Hamas attacks, during which more than 1,200 people were killed and about 250 abducted, followed by the relentless nature of Israel’s massive military response, have left a legacy of death and destruction that spread to other countries in the Middle East.

It remains to be seen what the two societies, and the others directly or indirectly involved, have learned from this. But the first lesson must surely be that allowing a conflict to fester without meticulously addressing its root causes is a disaster waiting to happen, the consequences of which will be considerably more dire than any painful efforts to resolve them.

The second lesson that must be internalized by those involved in the conflict is that the concept of “status quo” can be dangerously misleading and ends only in bloodshed.

Thirdly, setting unrealistic war objectives, especially maximalist ones, will only result in a never-ending war, inevitably with large numbers of victims.

Moreover, underestimating the capabilities, determination and intentions of the enemy can only have disastrous consequences; both sides in this conflict are at fault for that.

Finally, decades of mutual demonization and dehumanization can only result in a complete loss of empathy and legitimize the kind of carnage we have witnessed during this war.

Key Dates

  • 1

    Following days of discussions in Beijing, Saudi Arabia’s National Security Advisor Musaed Al-Aiban and Iran’s security official Ali Shamkhahni declare the resumption of diplomatic relations.

    Timeline Image March 10, 2023

  • 2

    Hamas stages unprecedented attacks on Israel on multiple fronts, killing more than 1,200 people and taking about 250 hostages.

    Timeline Image Oct. 7, 2023

  • 3

    Israel’s defense minister, Yoav Gallant, orders complete siege of Gaza amid intense retaliatory strikes.

    Timeline Image Oct. 9, 2023

  • 4

    Iran-backed Houthis hijack Galaxy Leader, an Israeli-linked cargo ship, in the first of many attacks on international shipping in the Red Sea. The group says it is acting in protest against the war in Gaza.

    Timeline Image Nov. 19, 2023

  • 5

    First ceasefire agreement between Hamas and Israel takes effect, lasting a week; 70 Israeli hostages released in exchange for 210 Palestinians in Israeli jails.

  • 6

    Israel intensifies aerial campaign against Lebanon in a crackdown on Hezbollah after almost a year of cross-border fire exchange.

    Timeline Image Sept. 23, 2024

  • 7

    Lebanon and Israel sign ceasefire agreement.

  • 8

    Israel and Hamas agree on ceasefire deal after 14 months of stalled negotiations, which takes effect three days later.

  • 9

    Arab leaders adopt Egyptian plan to reconstruct Gaza without displacing Palestinians, countering US President Donald Trump’s ‘Middle East Riviera’ vision.

    Timeline Image March 4, 2025

  • 10

    Israel resumes war on Gaza, shattering the ceasefire agreement.

    Timeline Image March 18, 2025

It is still unknown whether Hamas, and the others who joined their attacks, expected to be able to execute the massacre they committed on the scale that unfolded, or whether they were surprised by the complete lack of Israeli preparedness for such an incident. Regardless, nothing can excuse the brutality that was on display that day.

Israel’s response was as much expected as it was condemnable, even allowing for the trauma and sense of grief that engulfed the country. It entered into this war as a red mist descended on the entire nation, including its leaders, who neglected any thoughts of morality and had no political vision for ending the war or its aftermath, nor any consideration for their country’s international reputation.

Depicting the entire population of Gaza as culprits complicit in the attacks, and simply collateral damage in the war against Hamas, legitimized, in their eyes, the mass killing of civilians.

Israel initially garnered the sympathy and support of the world to go after Hamas — but never to kill more than 48,000 people, more than half of them women and children, or reduce the entire Gaza Strip to rubble.

The Israeli government — the most far-right in the country’s history, led by a prime minister, Benjamin Netanyahu, who was thoroughly compromised by being a defendant in a corruption trial — was ill-equipped to protect its people in the first place, and then set two unachievable objectives: the elimination of Hamas, and the rescue of the hostages through the application of military pressure.




Iran’s FM Hossein Amir- Abdollahian (R) and Saudi counterpart Prince Faisal bin Farhan (L) meet in Beijing in the first formal meeting of the two countries’ top diplomats in seven years. AFP 

Israeli authorities ended up negotiating with their sworn Islamist enemy, at a very heavy price, a ceasefire agreement that included the return of the remaining hostages in exchange for the release of Palestinian detainees.

Still, the ceasefire deal, reached during the final days of the Biden administration in Washington, with the active encouragement of the incoming Trump administration, presented an opportunity to establish a horizon for the reconstruction of Gaza. However, a genuine peace process between Israelis and Palestinians is under threat from US President Donald Trump’s proposal to take over Gaza and relocate the Palestinians there to Egypt and Jordan.

In response, Egypt proposed an alternative plan, calling for $53 billion to rebuild Gaza without displacing its population. However, the resistance in Israel and Washington to the Egyptian plan, which Arab leaders adopted during the Cairo Summit on March 4, compounded by unanswered questions about the fate of Hamas and who will rule Gaza, means the future of the enclave remains uncertain.

The Arab gathering to discuss Egypt’s plan reflects the impact that Oct. 7 had, and will continue to have, on the rest of the Middle East.

The hostilities were not confined to Gaza; they spread across the Middle East as old enmities bubbled back up to the surface, mainly among Iran and its “Axis of Resistance” allies.




Palestinians salvage belongings from a UN-run school damaged in the Jabalia refugee camp, northern Gaza Strip, during the Israel-Hamas conflict. AFP

It is true that Hezbollah, the military threat Israel most feared along its immediate borders and was probably the best-prepared to deal with, proved hesitant when the Israelis were at their most vulnerable in the immediate aftermath of the attacks, and offered only halfhearted support for Hamas.

However, the continual barrage of missiles and rockets from southern Lebanon rendered northern Israel too dangerous for much of the population to remain there and forced their displacement, eventually leading to a powerful, if delayed, response by Israeli authorities in late September 2024.

The resultant elimination of much of the Hezbollah leadership, in particular its chief Hassan Nasrallah, and the severe damage inflicted on its military capabilities changed the equation of fear between this Shiite movement and the Jewish state, giving Israel the upper hand. Their ceasefire agreement on Nov. 27 has the potential to ensure the Israeli-Lebanese border remains quiet in the long term.

Combined with this truce, the election of Joseph Aoun as Lebanese president on Jan. 9, after two years of a power vacuum that followed the end of his predecessor’s term, marked the start of a journey of political change in the country.

However, it remains to be seen what the lasting effects of the Oct. 7 attacks will be on the Israelis and the Palestinians, as well as the wider Middle East.

One can only hope diplomacy will prevail and peaceful resolutions to conflicts can be reached. The alternative, as we saw during this most recent war, is immense suffering, mainly among innocent civilians.

  • Yossi Mekelberg is professor of international relations and senior consulting fellow of the MENA Program at Chatham House. 


Saudi Arabia steps up dugong conservation

Saudi Arabia steps up dugong conservation
Updated 6 min 37 sec ago
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Saudi Arabia steps up dugong conservation

Saudi Arabia steps up dugong conservation
  • Found in the country’s warm coastal waters, the species is considered an important marker of the health and stability of marine ecosystems
  • During Saudi Arabia’s Environment Week, the dugong featured prominently in events

RIYADH: The dugong, or Dugong dugon, a marine mammal classified as vulnerable, remains a key indicator of marine biodiversity in Saudi Arabia. 

Found in the country’s warm coastal waters, the species is considered an important marker of the health and stability of marine ecosystems, the Saudi Press Agency reported. 

During Saudi Arabia’s Environment Week, the dugong featured prominently in events, drawing attention to ongoing conservation efforts and the responsibilities shared by researchers, environmental advocates, and policymakers.

The National Center for Wildlife is leading initiatives to protect the dugong from further population decline. These efforts by the center include satellite tracking and scientific research to monitor its distribution in Saudi Arabia’s territorial waters. 

Additionally, national plans are in place to manage and rehabilitate the species’ natural habitats, supporting long-term sustainability and the conditions necessary for dugong reproduction and survival. 

On the international front, Saudi Arabia continues to strengthen global cooperation in marine conservation. 

In 2013, the Kingdom signed an agreement to protect dugongs and their habitats and has taken part in initiatives such as the Pacific Year of the Dugong, launched in 2011.

Throughout Environment Week, the center presented recent studies and carried out public outreach activities. 

Educational programs were provided to students, visitors, and marine life enthusiasts, emphasizing the dugong’s ecological role and the importance of preserving its habitat.

The center also showcased modern tracking technologies used to study the species and its movements, the SPA reported.


Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013

Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013
Updated 13 min 46 sec ago
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Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013

Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013
  • PM’s focal person for polio eradication, Ayesha Raza Farooq, meets IsDB delegation in Islamabad
  • IsDB is one of largest financiers of Pakistan’s anti-polio program, announced $587 million loan in 2023

ISLAMABAD: Pakistani prime minister’s aide on polio eradication, Ayesha Raza Farooq, on Tuesday acknowledged the Islamic Development Bank’s (IsDB) financial and strategic contributions to sustain its anti-polio program in the country. 

The IsDB has contributed over $587 million to eradicate poliovirus from Pakistan since 2013, making it one of the largest financiers of the country’s anti-polio program. It announced a loan of $100 million in December 2023 to support Pakistan’s polio eradication efforts. 

Farooq met a high-level delegation of the IsDB’s Regional Hub in Turkiye at the National Emergency Operations Center (NEOC) in Islamabad on Tuesday, the Pakistan Polio Eradication Programme said. 

“The Islamic Development Bank has been a pillar of strength for the Pakistan Polio Eradication Programme, especially during its most challenging phases,” Farooq was quoted as saying by Pakistan’s anti-polio program. 

“Your financial and strategic contributions have been instrumental in sustaining the program and ensuring that vaccination campaigns reach the most vulnerable children across the country.”

Pakistan is only one of two countries worldwide where polio remains endemic. The Pakistani government launched a seven-day nationwide campaign on Monday to vaccinate over 45 million children against the disease. 

Dr. Walid Mohamad Abdelwahab, director of the IsDB’s regional hub in Turkiye, reaffirmed the institution’s support for Pakistan in achieving a polio-free future, the statement said. He commended Pakistan for its efforts and collaboration in the fight against polio, it added. 

The delegation briefly visited the NEOC control room following the meeting, where they were informed about the national reach of the campaign. The IsDB delegation was told the campaign would cover over 45.4 million children through the efforts of more than 400,000 frontline health workers via door-to-door vaccinations.

“IsDB commended the Government of Pakistan’s relentless efforts and reaffirmed its support in reaching the last mile of polio eradication,” Pakistan’s anti-polio program said.

In 2024, Pakistan reported an alarming 74 polio cases. The country’s polio program, launched in 1994, has faced persistent challenges including vaccine misinformation and resistance from some religious hard-liners, who claim immunization is a foreign conspiracy to sterilize Muslim children or a guise for Western espionage. 

Militant groups have also repeatedly targeted and killed polio vaccination workers during nationwide drives.


Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 
Updated 16 min 26 sec ago
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Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

RIYADH: Saudi Arabia has overtaken Singapore as the premier destination for venture capital funds across emerging markets after it secured $391 million in the first quarter of 2025.

The 53 percent year-on-year rise helped propel the Kingdom to becoming the highest-performing country across the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in terms of total funding during the three-month period, as revealed in the latest analysis by venture data platform MAGNiTT. 

While the standout $160 million series E round by fintech unicorn Tabby contributed significantly to the overall figure, the broader investment ecosystem showed resilience with non-MEGA deal funding, which are transactions below $100 million, rising 9 percent quarter-on-quarter. 

“This consistency signals a strengthening pipeline backed by sovereign LPs (limited partners) like SVC (Saudi Venture Capital), a growing cohort of accelerators, and successful exits like Rasan’s IPO (initial public offering),” according to MAGNiTT’s report. 

Saudi Arabia leads MENA funding and deal activity 

Saudi Arabia led the EVMs and continued its dominance in the Middle East and North Africa region. 

The Kingdom captured 58 percent of all MENA venture funding and accounted for 41 percent of transactions, far outpacing regional peers. 

According to MAGNiTT, the Kingdom achieved an 87 percent year-on-year increase in non-mega deal funding and a 437 percent rise in series A and B rounds, supported by sizable transactions such as those by Ula.me and Merit Incentives, each raising $28 million. 

The rise in Saudi venture capital investment comes amid a broader rebound in the MENA region. 

Total funding across MENA reached $678 million in the first quarter of 2025, a 58 percent increase year on year, despite a 21 percent decline in deal count to 133 transactions. 

The surge was supported by improved investor sentiment following late 2024 interest rate cuts across the Gulf, along with sustained sovereign fund activity and flagship ecosystem initiatives such as LEAP 2025. 

In terms of historical share, Saudi Arabia’s ascent has been significant. It expanded its share of MENA venture funding to 58 percent in the first quarter of the year, up from 39 percent in 2024 and 51 percent in 2023. 

This upward trajectory has positioned the Kingdom as the central engine of regional VC activity, reversing a period during which the UAE held the lead. 

The ecosystem shift also reflects a structural change in capital allocation. The first quarter saw non-mega deals rise for the fourth consecutive quarter, and early-stage investments in series A and B rounds increased by 50 percent quarter-on-quarter. 

In contrast, Southeast Asia reported its weakest early-stage quarter in seven years, with Singapore’s funding falling by 61 percent year on year to $377 million. 

The gap signals a shift in global investor preference as capital increasingly flows toward markets like Saudi Arabia, where macroeconomic stability, proactive policy, and institutional backing provide a conducive environment for venture growth. 

With 54 deals completed, the Kingdom reported the smallest year-on-year decline in deal count among the region’s top three markets, supported by a robust early-stage pipeline. 

Fintech dominates sector activity 

Fintech remained the most active and well-funded sector across MENA, particularly in Saudi Arabia, contributing 30 percent of all deals and capturing 57 percent of total regional funding. 

The sector saw a 362 percent year-on-year increase in funding, totaling $384 million, driven by Tabby’s $160 million MEGA round and strong underlying demand for digital finance solutions. 

Notably, 35 percent of all fintech deals in the first quarter of 2025 were in the $5 million to $20 million range, up 24 percentage points from the same period last year, demonstrating increasing maturity and scalability across the sector. 

Enterprise Software was the second most transacted and funded vertical, propelled by activity in Saudi Arabia and the UAE, accounting for 75 percent of all sector deals. 

Within this segment, the productivity apps sub-sector achieved record performance with six deals, including Merit Incentives’ $28 million and Qeen.ai’s $10 million rounds. The enterprise category posted a 112 percent annual growth in funding to reach $61 million. 

Saudi Arabia drives top-tier transactions and investor participation 

While deal volume across MENA dropped 21 percent year on year to just 133 transactions — one of the lowest quarterly figures in five years — Saudi Arabia defied the trend, maintaining strong early-stage momentum.

MAGNiTT noted that deal activity in the up to $1 million bracket declined 8 percentage points year on year to just 31 percent, while deals in the $5 million to $20 million and over $20 million brackets saw increases of 4 percentage points and 3 percentage points, respectively. 

This reallocation of capital reflects investors’ growing appetite for scale-ready startups in more advanced funding stages. 

Pre-seed to pre-series A activity in the Kingdom saw a 14 percent increase, highlighting the nation’s strengthening foundation for long-term growth. 

The shift in capital allocation patterns also reinforced Saudi Arabia’s strategic focus. 

The share of deals in the $1 million to $5 million range rose to 46 percent, the highest proportion in five years, mirroring a broader pivot across MENA toward larger, more scalable investment opportunities. 

Simultaneously, the lowest-value ticket size, $0 to $1 million, fell to 31 percent of deals, down 8 percentage points from the previous year. 

Five of the region’s 10 largest deals originated from the Kingdom, including Tabby’s round, the sole mega deal of the quarter, alongside significant rounds by Zension, with $30 million and Merit Incentives. 

According to MAGNiTT, this concentration of large-ticket transactions underscores the depth of investor confidence in the Saudi startup ecosystem.

Investor engagement in the Kingdom was also evident in the breakdown of top deals. The nation hosted more top-10 deals than any other MENA country, with fintech leading as the most represented industry. 

Blue Pool Capital and Hassana Investment Co. emerged as the most prominent backers, jointly deploying an estimated $53.3 million across key transactions, with fintech accounting for four of the top 10 deals. 

Exit environment strengthens on record M&A activity 

Saudi Arabia’s momentum was further underscored by a robust exit environment, with the MENA region recording 21 exits, up 163 percent year on year, marking the strongest quarter for mergers and acquisitions since MAGNiTT began tracking. 

The Kingdom’s IPO pipeline also improved, adding another layer of attractiveness to its startup ecosystem. 

While the regional rebound was attributed to easing inflation, improved liquidity, and pre-US tariff optimism, MAGNiTT emphasized that: “Saudi Arabia’s IPO and M&A momentum are now integral to the region’s exit environment.” 

Despite this surge, the median time to exit via M&A lengthened to six years, up from five in 2024, reflecting continued challenges for early-stage startup liquidity. 

Geopolitical risks introduce uncertainty to venture outlook 

Despite strong regional performance, MAGNiTT highlighted emerging risks that could disrupt momentum. 

“While Q1 2025 was a positive start to the year … that momentum is now under threat,” said Philip Bahoshy, CEO of MAGNiTT. 

He added that the new US tariff policies have created uncertainty in both the public and private markets over the last couple of weeks, which can create a challenge for decision-makers who are likely to be in a risk-off mindset.

“In venture capital, this uncertainty is likely to impact three areas: the deployment of capital from LPs to VCs, VCs’ willingness to make decisions in uncertain times, and finally, startups’ ability to raise funds,” said Bahoshy.

He noted that while global volatility persists, long-term fundamentals in EVMs remain strong. 

“Despite global headwinds, emerging venture markets continue to present compelling long-term opportunities. MENA, in particular, is uniquely positioned for sustained growth thanks to deep pools of local capital, pro-entrepreneurship policy, and active sovereign support,” Bahoshy added. 

“As global investors diversify beyond traditional markets, regions like MENA and Southeast Asia are poised to attract fresh capital — particularly in tech-led sectors that are strategically positioned and less exposed to tariff volatility,” the CEO said.


Bangladesh’s largest private airline starts Riyadh flights as demand grows

Bangladesh’s largest private airline starts Riyadh flights as demand grows
Updated 29 min 20 sec ago
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Bangladesh’s largest private airline starts Riyadh flights as demand grows

Bangladesh’s largest private airline starts Riyadh flights as demand grows
  • US-Bangla Airlines offers 5 weekly flights on Dhaka–Riyadh route
  • First private Bangladeshi carrier to operate flights to the Kingdom

DHAKA: US-Bangla Airlines, the largest airline in Bangladesh by fleet size, has launched direct flights from Dhaka to Riyadh amid increasing demand for travel to Saudi Arabia.

The inaugural flight from Hazrat Shahjalal International Airport to King Khalid International Airport took off on Monday, with 423 passengers on board.

The flights will run five times a week on an Airbus 330 aircraft, with plans to gradually expand to daily service.

“Today, also, we are flying with full occupancy. There is always demand for destinations in the Middle East,” Kamrul Islam, the carrier’s general manager for public relations, told Arab News on Tuesday.

“We are receiving very good responses from the passengers ... The route will soon be served by daily flights.”

The airline is tapping into the growing market for Middle East travel. Flights to Saudi Arabia have been too few to accommodate the needs of some 3 million Bangladeshi workers in the Kingdom and hundreds of thousands of people traveling for the annual Hajj and Umrah pilgrimages.

In August last year, it launched daily flights to Jeddah, becoming the first — and so far the only — private Bangladeshi airline to fly to the Kingdom.

“Our aim is to start flight operations gradually in all the destinations where Bangladeshi migrants live,” Islam said.

“In the near future, we are planning to begin flight operations to Dammam and Madinah. Our plan is to begin these flights by the next year. It takes six to seven months of preparations to launch a new station.”

Founded in 2010, US-Bangla Airlines started as a domestic carrier and has lately expanded its routes to go international. The Riyadh route marks the airline’s 14th international destination and sixth in the Middle East.

“Every destination in the Middle East is a base for Bangladeshi migrants,” Islam said.

“We are currently operating also to other places in the region, like Dubai, Sharjah, Abu Dhabi, Muscat, and Doha.”

With its latest acquisition of new Airbus A330 and Boeing 737 aircraft last year, the carrier has become the largest airline in Bangladesh by fleet size.

With the additions, the US-Bangla fleet now consists of 24 aircraft, while the national flag carrier Biman has 21.


Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures

Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures
Updated 33 min 29 sec ago
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Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures

Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures
  • Pakistan’s government mulling options which range from importing crude oil from the US to abolishing tariffs on American imports
  • Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by President Donald Trump last month

ISLAMABAD: Finance Minister Muhammad Aurangzeb told Bloomberg this week Pakistan is looking to buy more goods from the US and remove non-tariffs barriers to escape President Donald Trump’s high tariffs.

Pakistan’s government is mulling options, which range from importing crude oil from the US to abolishing tariffs on American imports, as Islamabad attempts to offset a trade imbalance that has triggered higher tariffs from Washington. 

“It’s a bigger canvas that we are looking at in terms of engaging the US,” Aurangzeb said in an interview with Bloomberg News on Monday ahead of the IMF-World Bank spring meetings in Washington. “We will constructively engage, and we will have a formal delegation coming in.”

Pakistan is looking to buy more cotton and soybean from the US, the finance chief said, adding that it is also in talks to tear down non-trade barriers to open its markets to more US products.

“We can also look at if there are any issues with respect to non-tariff discussion, whether there are any onerous inspections at our end for US products, we can obviously view that.”

Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by Trump. While those levies are on hold until July, Pakistan has said it will send a trade delegation to Washington in the coming months to bridge the trade gap. 

The US is Pakistan’s largest export market with over $5 billion in annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 billion.

The finance minister said the country is also open to foreign direct investments from US firms in its recently opened minerals and mining sectors.

Aurangzeb, a close aide of Prime Minister Shehbaz Sharif, is in the US for a nearly week-long trip to participate in the Spring Meetings of the International Monetary Fund and the World Bank. The former JPMorgan Chase & Co. banker said that the crisis-ridden nation will tap the international capital markets to secure more funds for a sustainable growth.

“What we are looking for is how we get away from a boom-and-bust cycle which Pakistan has gone through and get on to a sustainable growth path,” he told Bloomberg. 

Pakistan is preparing to debut its first-ever Panda bond in the range of $200 million to $250 million that will likely take place in the fourth quarter of this year, the minister added.

Authorities are trying to rebuild Pakistan’s tattered economy after it came close to a default in 2023. Last month, the South Asian nation won an initial nod for a $2.3 billion IMF loan that will give it funding visibility until 2027. 

Last week, Fitch upgraded Pakistan’s credit rating, citing confidence that the South Asian country will be able to sustain reforms under the IMF loan program.