In a week marked by both diplomatic engagement and renewed violence, Libya has found itself at a crossroads—balancing efforts to deepen international economic partnerships while grappling with persistent instability at home. On August 21, 2025, Pakistan and Libya took significant steps to strengthen their decades-old economic relationship, even as, just a day later, the United Nations Support Mission in Libya (UNSMIL) headquarters in Tripoli narrowly escaped a rocket attack, highlighting the enduring volatility that continues to shadow the North African nation.
According to a news release covered by multiple outlets, the Chairman of Pakistan’s Senate, Syed Yousaf Raza Gilani, hosted a high-level delegation from Libya’s sovereign wealth fund, the Libya African Investment Company (LAFICO). The delegation was led by Jehad Jamal Al-Buragh, Director-designate of LAFICO, and included senior figures from the Pak-Libya Holding Company, such as Managing Director & CEO Tariq Mahmood, CFA, Deputy Managing Director Basheer B. Omar Matoug, and Aamir Zareef Khan, SEVP & Company Secretary.
Welcoming the Libyan guests, Chairman Gilani underscored the importance of expanding cooperation across key sectors—energy, sustainable infrastructure, agricultural exports, SME financing, fintech, and Islamic banking. “Strengthening economic partnership in these areas would give new momentum to bilateral relations, foster financial innovation, and contribute to long-term stability and shared prosperity,” Gilani remarked during the meeting, as reported by official sources.
The gathering spotlighted the revival of the Pak-Libya Holding Company, a joint institution that has symbolized the partnership between the two countries since its founding in 1978. Under new leadership, the company has undergone a significant turnaround, now boasting a stronger governance framework, a more diversified investment portfolio, and a renewed focus on supporting SMEs, renewable energy, and private sector financing. Jehad Jamal Al-Buragh expressed his gratitude for the meeting, stating, “LAFICO remains strongly focused on Pakistan, is actively exploring new avenues of growth, and is committed to synergizing investments between the two countries.”
Pak-Libya Holding Company’s CEO, Tariq Mahmood, provided further insight into the institution’s evolving strategy. He explained that the company is “now moving on a positive trajectory after a successful turnaround” and is rededicating itself to its original mandate as a Development Finance Institution. Mahmood noted that delegations from Pakistan’s textile and pharmaceutical sectors are already engaged, with a road show in the works to attract broader investment interest. “We are working to synergize investors from both Pakistan and Libya, creating joint opportunities in priority sectors,” he said. The company is also exploring ways in which Libya’s Central Bank reserves could be beneficially placed with the State Bank of Pakistan, reinforcing Pakistan’s fiscal buffers and signaling Libya’s growing confidence in bilateral financial cooperation.
Both sides agreed on the importance of taking practical steps to enhance cooperation in renewable energy, agriculture value chains, IT and fintech, and Islamic banking. The Chairman of Pakistan’s Senate assured the Libyan delegation of the full support of the Upper House of Parliament, encouraging Libya to take maximum advantage of the Special Investment Facilitation Council (SIFC), described as a “one-window operation” to streamline trade and investment. Gilani also praised Pak-Libya Holding Company’s initiatives to provide relief to flood-affected communities, extend small loans on easy terms, and promote investment opportunities in underserved sectors.
LAFICO, for its part, is actively scouting new investment opportunities in Pakistan in pharmaceuticals, textiles, mining, energy, and other industries. The delegation has also been engaging with chambers of commerce to build stronger business-to-business linkages. Advisor to the Chairman Senate, Aizaz Khan, briefed the Libyan officials on SIFC’s role in fostering a fast-track, investor-friendly environment, emphasizing that the Senate’s committees are fully engaged in promoting growth and a conducive climate for foreign investment.
Yet, even as these diplomatic and economic overtures unfolded, Libya’s internal security challenges were thrust into the international spotlight. On August 22, 2025, the UN Support Mission in Libya reported that its Tripoli headquarters had come under rocket attack. The Libyan interior ministry said it had foiled “an attempted attack” with an anti-tank missile on the UNSMIL compound, seizing a pickup truck loaded with two more missiles and a launch platform. Fortunately, the rocket struck a house in Janzour, on the outskirts of the capital, causing no casualties or damage to the UN facility.
UNSMIL’s chief, Hanna Tetteh, was briefing the Security Council in New York when the attack occurred. The mission later stated, “The mission’s premises were not impacted,” and commended “the vigilance of the Libyan authorities and their swift measures to thoroughly investigate this incident and ensure continued security of UN facilities.” The Tripoli-based government condemned the attack as a “serious act aimed at undermining security and stability, and damaging Libya’s relations with the international community.” It also reaffirmed its commitment to building “professional and unified security forces” and ending the proliferation of “illegal armed groups.”
This latest attack comes against a backdrop of ongoing division and violence in Libya. Since the NATO-backed revolt that toppled longtime leader Muammar Qaddafi in 2011, the country has remained split between the UN-recognized government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and a rival administration in the east. In May 2025, Tripoli was rocked by days of deadly fighting between rival armed groups, leaving at least eight people dead, according to UNSMIL. The violence erupted as authorities attempted to dismantle militias that had long controlled significant parts of the capital, describing these groups as having “become stronger than the state.”
The juxtaposition of these two stories—the robust push for economic cooperation abroad and the struggle for security at home—captures the paradox facing Libya today. On one hand, Libyan institutions are actively seeking to build bridges with international partners, diversify investments, and contribute to regional prosperity. On the other, the country’s internal divisions and the persistent threat of violence continue to hamper progress and cast a long shadow over its diplomatic efforts.
For Pakistan, the deepening of economic ties with Libya offers the prospect of new investments, greater financial stability, and expanded opportunities for its businesses and entrepreneurs. For Libya, such partnerships could help lay the groundwork for economic recovery and long-term stability—if, and only if, the country can overcome its entrenched security challenges and unify its fragmented political landscape.
As both nations look to the future, the coming months will test whether the momentum generated by these diplomatic initiatives can withstand the pressures of Libya’s ongoing internal strife. The world, watching closely, will hope for a breakthrough that brings lasting peace and prosperity to a country that has long yearned for both.