Middle East & Central Asia News
LAST UPDATE: July 19, 2025
Pakistan says it held productive trade talks in Washington
Pakistan’s Finance Minister reported positive trade negotiations with the U.S. in Washington, focusing on tariff reductions and U.S. investment in Pakistan’s oil and mining sectors. Both sides are optimistic about concluding talks within a week. (Reuters)
Insight
Pakistan is leveraging its trade surplus to negotiate concessions while aiming to deepen ties with the U.S. via investment deals, indicating a strategic shift in economic diplomacy.
Egypt Plans $4 Billion in International Bonds Over the Next Year
Egypt’s Finance Ministry announced plans to issue $4 billion in international bonds—including euro‑, dollar‑, and sustainability bonds—over the next year to meet 40% of its external financing needs.
Insight
Egypt is seeking to stabilize its fiscal position through international markets, but increasing reliance on external debt exposes it to interest rate fluctuations and creditor sentiment, demanding careful macroeconomic management.
Suez Canal revenues fall 63%, IMF forecasts further decline
Suez Canal revenue dropped 63% year-on-year, with the IMF predicting it will decline to $3.6 billion in FY2024/25 due to lower traffic and geopolitical risks in the Red Sea.
Insight
The sharp revenue fall underlines Egypt’s exposure to global trade volatility and regional conflict, weakening a major source of hard currency and fiscal stability.
Iraq’s Kurdish oil exports restart is not imminent, sources say
Despite an agreement between Baghdad and Erbil, sources say Kurdish oil exports are unlikely to restart soon due to lack of a signed deal and necessary technical steps.
Insight
Political friction between Iraq’s federal and Kurdish authorities continues to delay oil flow resumption, affecting national revenues and regional economic planning.
UN urges ‘immediate halt’ to Afghan deportations
The UN urged countries to immediately stop deporting Afghans, citing over 1.4 million returns this year alone and warning of a deepening humanitarian crisis.
Insight
Mass deportations are straining Afghanistan’s fragile infrastructure and risking instability, as international protections appear insufficient amid rising regional pressure.
