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ISLAMABAD: With a contribution of $25.2 million (Rs 7.2 billion) over three years, the United Kingdom hopes to provide over 250,000 Pakistani children better access to education, focusing primarily on the country’s eastern Punjab and northwestern Khyber Pakhtunkhwa provinces, the British Council said on Wednesday.

Pakistan has an estimated 22.8 million out-of-school children, the second highest in the world, according to UNICEF. A majority of them, about 12.2 million, are girls who face cultural and social barriers preventing them from seeking formal education especially in rural areas.

Funded by the British High Commission in Pakistan and delivered by the British Council, the service delivery component of Girls and Out of School Children’s Action for Learning (GOAL) program, “Khilo aur Barho” will see children receive support with their Urdu, Math and English subjects. The five-year program, from January 2023 to December 2027, aims to build more inclusive provincial education systems delivering quality education in KP and Punjab. 

“The UK is set to help over 250,000 children in Pakistan access better education,” the British High Commission said in a statement. “Through the service delivery component of Girls and Out of School Children’s Action for Learning (GOAL) program, Khilo aur Barho, the UK’s £20 million contribution will help break down barriers to education, enhance literacy and numeracy skills, and strengthen a resilient and effective education system in Pakistan over the next three years.”

It added that 10 percent of the participants would be children with disabilities while 20 percent will comprise from marginalized groups. 

“This support will focus on their ability, rather than their age, helping them to catch up on these subjects quicker,” the statement said. 

British High Commissioner Jane Marriott said Pakistan was facing an “education emergency” with $26.2 million children out of school.

“This targeted support will make sure some of the most vulnerable children in the country don’t fall behind,” she said. “The UK is already a significant supporter of education in Pakistan, supporting over 4.5 million children across Pakistan to access a decent education over the past 10 years.”

Pakistan’s Education Secretary Mohyuddin Ahmad Wani said his ministry is focused on facilitating each of the provinces to connect with international and local partners to fight learning poverty in every district, with a special focus on lagging districts. 

 “I am hoping that GOAL will show how you deliver that successfully in 14 most challenging districts. We will stand ready to help in every way to make it a success,” he said. 

In 2022, the UK had donated $160 million (Rs45.76 billion) to support women’s education in Pakistan. 

According to WorldMetrics, Pakistan’s literacy rate stood at 59 percent, while the country grapples with the challenge of 23 million out-of-school children.

The government’s spending on education remains low, at just 2.8 percent of GDP, contributing to poor infrastructure, limited access to quality education and a shortage of trained teachers, particularly in rural areas.
 

RIYADH: Banks in the Gulf Cooperation Council region are expected to maintain strong asset quality, profitability, and ample liquidity through 2025, according to a new report by S&P Global.  

The global credit rating agency highlighted the robust performance of the region’s banking sector, which it attributes to solid capitalization and well-managed balance sheets, despite potential challenges from lower interest rates.  

S&P Global said that while the outlook for GCC banks remains positive, heightened geopolitical risks or a sharp drop in oil prices could pose threats to their creditworthiness. However, the agency added that the banks are likely to demonstrate resilience in the face of such adverse scenarios, reflected in their currently high ratings. 

The report forecasts that Brent crude oil will average $75 per barrel from the fourth quarter of the year through 2027, supporting GCC economies.  

“In our view, GCC countries will also benefit from the implementation of economic transformation projects (in ��������Ƶ), the expansion of gas production (in Qatar), reform implementations (in Bahrain and Oman), and the non-oil economy’s good performance (in Bahrain and the UAE),” the report said.
 
Despite expected interest rate cuts by the US Federal Reserve, and mirrored reductions by GCC central banks, S&P Global predicts a manageable impact on bank margins.  

The decline in rates could reduce funding costs and mitigate unrealized losses in securities portfolios, with an estimated margin impact ranging from 20-60 basis points, depending on the country. 

GCC banks maintain strong capitalization levels, which continue to underpin their overall creditworthiness, according to the report.  

Shareholder support has been a key factor, with dividend payouts generally below 50 percent, allowing banks to retain profits and stabilize their capital positions. 

The quality of capital remains robust, with limited reliance on hybrid instruments. However, S&P Global anticipates an increase in hybrid issuance by GCC banks over 2025-2026, as institutions seek to take advantage of lower interest rates and address the first call dates of previously issued instruments. 

“GCC banks are mainly funded by domestic deposits, which have proved stable through periods of mild stress, such as the COVID-19 pandemic and previous instances of geopolitical risk,” the report added. 

It also outlined potential risks stemming from ongoing regional conflicts. 

S&P Global conducted stress tests on GCC banks, analyzing scenarios ranging from modest to severe geopolitical escalations.  

In severe cases, involving broader regional conflict and disruptions to trade routes, the impact could extend to energy prices and macroeconomic stability, affecting both sovereign and banking sector credit metrics. 

S&P Global said despite these challenges, the GCC banking sector’s strong efficiency, driven by low labor costs and increasing digitalization, provides a solid foundation for continued growth and resilience through 2025.