Pakistan | Pakistan

ISLAMABAD: Pakis­tan has decided to return $3.5 billion in debt to the United Arab Emirates (UAE) before the end of this month, a senior Pakistani official said on Friday. The official described the move as a cost the country was willing to bear to uphold “national dignity,” even as it is set to significantly draw down foreign exch­ange reserves. The official disclosed that Abu Dhabi had sought the immediate return of the amount. “The amount will be returned as soon as possible,” the official said, adding that “national dignity could not be compromised for financial considerations”. These funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments. The official said the dec­i­sion had ended the uncertainty surrounding the deposits placed through the Abu Dhabi Fund for Development, which had been rolled over multiple times since 2019. In recent months, the extensions had become as shorter as month long, reflecting Emirati unease over the continuati...

The impact of the ongoing US-Iran war on ordinary Pakistani households and business is already being felt. With petrol at Rs458 per litre and diesel at over Rs520, citizens are going to be facing real challenges once more. For a country that only recently suffered inflation rates that peaked at 40 per cent, this conflict could not have come at a worse time. But the crisis can also be an opportunity for Pakistan, and given the bottom-up solar revolution the country has experienced over the last few years, the building blocks are already there for the country to be future ready. Before getting into how this can be done, one must acknowledge that the government’s decision to pass on the price increase was the right call. In a country with limited fiscal space, broad-based subsidies are a luxury Islamabad simply cannot afford. A prolonged subsidy program would hurt, not benefit, households and businesses because of the inflationary pressures that would have been created by an expanding fiscal deficit funded by cr...

Negotiations between Afghanistan and Pakistan are advancing steadily, China said on Friday, following reports that the South Asian neighbours were meeting there to try to end their worst conflict since the Taliban returned to power in 2021.

• Finance minister to hold key talks with Fund, World Bank officials through April 17 • Islamabad to seek safety nets, subsidy reforms, emergency financing options • Oil, gas volatility threatens Pakistan’s reserves, widens current account gap WASHINGTON: Finance Mini­ster Muhammad Aurangzeb is expected in Washington on April 11 for the 2026 Spring Meetings of the International Monetary Fund and the World Bank, a visit that has acquired added significance as developing economies grapple with the widening economic fallout of the ongoing war in Iran. Mr Aurangzeb is scheduled to remain in the United States through April 17. During his visit, he will hold a series of bilateral and multilateral meetings with senior officials of international financial institutions and other stakeholders. The minister will also address Pakistani media on April 17 before departing for Islamabad. The Spring Meetings, set for April 13–18, will bring together finance ministers, central bank governors, policymakers and development expe...

Pakistan on Thursday expressed optimism about ongoing efforts for US-Iran negotiations, despite rhetoric from any side, while highlighting the strong commonalities and widespread appreciation received by the five-point peace plan announced in Beijing and the seven-point summary of the quadrilateral talks held in Islamabad.

Pakistan is holding talks with Afghanistan to end the current conflict between the two countries, but Kabul must “demonstrate visible and verifiable actions”, said Foreign Office Spokesperson Tahir Andrabi on Thursday. Since Pakistan launched Operation Ghazab lil-Haq against terrorist hideouts in Afghanistan on February 26, diplomatic contact between the two sides had largely ceased. The talks in the northwestern Chinese city of Urumqi were being held between senior officials of the two countries, the spokesperson said in his weekly press briefing. The meeting was focused on sharing perspectives on the latest escalation. No major outcomes were expected, though it was believed that China was pushing for confidence-building measures, such as reopening trade routes. The spokesperson recounted the visit of Deputy Prime Minister and Foreign Minister Ishaq Dar to Beijing earlier this week at the invitation of Chinese Foreign Minister Wang Yi, saying that it “provided an opportunity for both sides to hold in-depth d...

ISLAMABAD: The federal government has approved a series of initiatives related to transshipment with the aim of strengthening Pakistan’s maritime sector amid evolving regional security dynamics following the US-Israeli attack on Iran, it emerged on Thursday. The initiatives were approved based on recommendations of the high-level committee constituted by the Prime Minister Shehbaz Sharif, headed by Maritime Affairs Minister Junaid Anwar Chaudhry. According to an official handout, the decisions mark a significant step toward positioning Pakistan as a competitive and resilient transshipment hub in the region”. Among the key initiatives, the government has approved the handling of bulk and break-bulk cargo under transshipment arrangements. The handout added that the measure was expected to significantly enhance port throughput, attract new shipping lines, and facilitate regional trade by enabling the efficient movement of commodities such as grains, coal, minerals and project cargo. The government also approved ...

ISLAMABAD: Amid a continuous surge in the global market, Pakistan on Thursday said it would seek flexibility in the International Monetary Fund (IMF) programme to create room for evolving contingencies following the US-Israeli war on Iran and pass on the burden of petroleum prices to consumers. This was announced by the Ministry of Finance after a meeting between Finance Minister Muhammad Aurangzeb and the US Charge d’Affaires Natalie Baker ahead of upcoming spring meetings with the IMF and the World Bank later this month. An official statement by the ministry said both sides discussed Pakistan’s ongoing engagement with international financial institutions and development partners, including efforts to maintain reform momentum under the IMF programme. “The finance minister reiterated Pakistan’s commitment to fiscal discipline while seeking flexibility in light of evolving global and regional challenges,” the statement said. The minister also briefed the US diplomat on ongoing efforts to manage energy sector c...

The Ministry of Foreign Affairs of Pakistan has issued a warning over a surge of false information originating from India, aimed at undermining Pakistan’s diplomatic initiatives amid ongoing US-Iran tensions.

Eight Muslim-majority countries, including Pakistan, on Thursday strongly condemned Israel’s move to pass a law making death by hanging a default sentence for Palestinians convicted in military courts of deadly attacks. The joint statement, shared by the Foreign Office, was released by the foreign ministers of Pakistan, Turkiye, Egypt, Indonesia, Jordan, Qatar, Saudi Arabia and the United Arab Emirates. The statement said that the countries “strongly condemned the Israeli occupying power’s enactment of a law in its Parliament (Knesset), that allows the imposition of the death penalty in the occupied West Bank and its de facto application against Palestinians”. They warned against the “increasingly discriminatory, escalating Israeli practices that entrench a system of apartheid and a rejectionist discourse that denies the inalienable rights and the very existence of the Palestinian people in the Occupied Palestinian Territory”. “The ministers underscored that this legislation constitutes a dangerous escalation...

The International Monetary Fund (IMF) has advised the government of Pakistan against providing general petrol subsidies, recommending instead that relief be limited to low-income groups to avoid further economic strain.

Pakistan has dismissed claims circulating on social media regarding the removal of barbed wire along the Pakistan-Afghanistan border, terming them “fabricated” and part of a broader misinformation campaign amid ongoing cross-border tensions.

ISLAMABAD: Federal Minister for Health Syed Mustafa Kamal said on Wednesday Pakistan will surpass Indonesia in population growth within the next five years. “Pakistan is currently the fifth most populous cou­ntry in the world, and at the current growth rate, it is projected to surpass Indo­nesia in next five ye­ars. The rapidly increasing population has become a serious national challe­nge, placing imm­ense pressure on healthcare, education, infrastructure, and employment sectors,” the minister said while chairing a meeting to review the growing population challenge and its implications for the country’s health system and national resources. He said the country’s population is increasing by around 6.2 million people annually, which exceeds the total population of some countries such as New Zealand. He noted that unchecked population growth was straining national infrastructure and undermining effective planning. “If we fail to control population growth, our vision for sustainable development will remain unach...

Landmark climate accord will unlock green investment, clean energy and international carbon finance for Pakistan.

Officials from Pakistan, Afghanistan and China met on Wednesday in the Chinese city of Urumqi under the trilateral mechanism. Since Pakistan launched Operation Ghazab lil-Haq against terrorist hideouts in Afghanistan on February 26, diplomatic contact between the two sides had largely ceased. A senior official from the Ministry of Foreign Affairs (MoFA), who asked not to be named due to the sensitive nature of negotiations, told Dawn that the meeting was not a “mediation effort per se”. The meeting was focused on sharing perspectives on the latest escalation. No major outcomes were expected, though it was believed that China was pushing for confidence-building measures, such as reopening trade routes. Evolving regional situation and balancing security concerns with economic priorities were also a part of the discussion. Diplomatic sources said Pakistan’s agenda included reiterating its concerns over the presence of Tehreek-i-Taliban Pakistan (TTP) sanctuaries inside Afghanistan. Afghan Taliban representatives...

Pakistan and Norway on Wednesday signed the former’s first-ever carbon market deal under the Paris Agreement, according to an official press release. According to the press release, “Pakistan and Norway on Wednesday signed the country’s first landmark bilateral agreement under Article 6.2 of the Paris Agreement, opening the door to international carbon trading, climate finance and major investment in clean energy and climate-smart agriculture.” To tackle climate change and its negative impacts, world leaders at the UN Climate Change Conference (COP21) signed the Paris Agreement on December 12, 2015, according to the United Nations. The agreement included commitments from all countries to reduce their emissions and work together to adapt to the impacts of climate change, and called on countries to strengthen their commitments over time. The press release issued on Wednesday said that a memorandum of understanding (MoU) signed in Islamabad under the auspices of the Ministry of Climate Change and Environmental C...

A delegation from the International Finance Corporation (IFC) called on Finance Minister Muhammad Aurangzeb and discussed its “growing portfolio in Pakistan, which now exceeds $2 billion annually and approximately $2.7bn committed this year”, according to the finance ministry. IFC is the private sector arm of the World Bank Group. According to the ministry, the IFC delegation comprised IFC Divisional Director for Pakistan, Afghanistan and Central Asia Simon Andrews, World Bank Country Director for Pakistan Bolormaa Amgaabazar and IFC Country Manager Naz Khan. Key areas of engagement included financial sector support through risk-sharing and guarantee facilities to promote trade and small and medium-sized enterprises (SME) financing; expansion of local currency financing to mitigate foreign exchange risks; and upcoming initiatives such as a diversified payment rights facility and a green bond issuance with a leading local bank, the ministry said. “Discussions focused on further scaling private sector investmen...

Prime Minister Shehbaz Sharif said on Wednesday that many countries were facing difficulties in maintaining the balance between demand and supply of essential commodities due to the global situation, but Pakistan was addressing the challenging situation “successfully and effectively,” the Prime Minister Office (PMO) said. According to a statement by the PMO, the prime minister made these remarks during a review meeting which was held to devise a comprehensive strategy to prevent the country from the financial and economic impacts arising from the regional conflict. PM Shehbaz commended the effective and timely measures taken by institutions to prevent any emergency situation regarding the demand and supply of essential goods. He appreciated the steps taken by relevant ministries and institutions through mutual coordination to address the financial and economic challenges and directed them to further enhance their cooperation. “After meeting domestic needs of food and essential items, progress is being made on...

Minister of Foreign Affairs of China Wang Yi conveyed his country’s appreciation and support to Pakistan’s active diplomatic role and efforts to end the conflict and promote peace in West Asia.

China’s Foreign Minister Wang Yi has conveyed Beijing’s appreciation for Pakistan’s “active diplomatic role” and efforts towards ending the Middle East conflict, the Foreign Office (FO) said on Wednesday. Wang made the remarks during his meeting with Deputy Prime Minister and Foreign Minister Ishaq Dar in Beijing on Tuesday, where the two sides had issued a five-point initiative for restoring peace in the Middle East. Referring to their discussions, the FO said in a statement, “The meeting was marked by traditional warmth and cordiality. Both dignitaries exchanged notes on the regional developments in West Asia as well as bilateral relations.” Dar briefed Wang in detail on Pakistan’s continued efforts towards the cessation of the Middle East conflict and resumption of dialogue, including its recent quadrilateral meeting in Islamabad with the foreign ministers of Saudi Arabia, Turkiye and Egypt. According to the FO, both sides “reviewed the regional security environment and expressed deep concern over its seri...