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High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says

High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says
In this handout photo, released by Pakistan’s Finance Ministry on April 26, 2025, senior representatives of the United States Export-Import Bank (EXIM), led by Vice Chairman Jim Barrows (3L), gesture during the meeting with Pakistan Finance Minister Muhammad Aurangzeb (not pictured) in Washington, on the sidelines of the IMF–World Bank Spring Meetings. (Photo courtesy: Handout/Finance Ministry)
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Updated 26 April 2025

High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says

High-level Pakistan delegation to visit US ‘shortly’ to address trade imbalance, finmin says
  • The development comes as the South Asian country mulls options to offset a trade imbalance that has triggered higher tariffs from Washington
  • The US is Pakistan’s largest export market with over $5 bln annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 bln

KARACHI: A high-level Pakistani delegation will “shortly” visit the United States to address trade imbalance between the two countries, Pakistani Finance Minister Muhammad Aurangzeb said on Friday.
The statement came after Aurangzeb’s meeting with Thomas Lersten, a senior State Department Official for economic growth, energy and environment, in Washington, on the sidelines of the International Monetary Fund-World Bank spring meetings.
The development comes as Islamabad mulls options, which range from importing crude oil from the US to abolishing tariffs on American imports, to offset a trade imbalance that has triggered higher tariffs from Washington.
In his meeting with Lersten, Aurangzeb thanked the United States for the participation of a well-represented US delegation in a minerals summit held in Pakistan this month, according to the Pakistani finance ministry.
“He expressed Pakistan’s desire to engage constructively to address the trade imbalance between the two countries and informed that a high-level trade and investment delegation was expected to visit the United States shortly to explore avenues of mutually rewarding economic engagement,” the ministry said.




This handout photo, released by Pakistan’s Finance Ministry on April 26, 2025, shows officials from Pakistan (right) and senior representatives of the United States Export-Import Bank (left) during a meeting in Washington, on the sidelines of the IMF–World Bank Spring Meetings. (Photo courtesy Handout/Finance Ministry)

Pakistan is looking to buy more cotton and soybean from the US, while 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,” Aurangzeb told Bloomberg this week.
Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by Trump. Those levies are on hold until July.
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.
Aurangzeb also held a meeting with senior representatives of the US Export-Import Bank (EXIM), led by its Vice Chairman Jim Barrows, according to his ministry. The finance minister briefed the EXIM delegation on Pakistan’s improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government.
“He called for the EXIM Bank’s enhanced support to facilitate greater US investment in Pakistan,” the finance minister said.
“Senator Aurangzeb further expressed Pakistan’s desire to engage constructively with the United States to address tariff-related issues and strengthen bilateral trade relations.”
Authorities are trying to rebuild Pakistan’s tattered economy after it came close to a default in 2023. The South Asian nation last year secured a 37-month, $7 billion IMF program to help stabilize the $350 billion South Asian economy.
This month, Fitch upgraded Pakistan’s credit rating, citing confidence that the South Asian country will be able to sustain reforms under the IMF loan program.


Pakistan condemns Israel’s ‘blatant aggression’ against Iran, calls for dialogue to resolve crisis

Pakistan condemns Israel’s ‘blatant aggression’ against Iran, calls for dialogue to resolve crisis
Updated 20 sec ago

Pakistan condemns Israel’s ‘blatant aggression’ against Iran, calls for dialogue to resolve crisis

Pakistan condemns Israel’s ‘blatant aggression’ against Iran, calls for dialogue to resolve crisis
  • Pakistan’s UN ambassador urges Security Council to deny Israel “free hand” in conflict with Iran
  • Middle East tensions soared on Friday after Iran fired dozens of missiles at Israel in retaliation

ISLAMABAD: Pakistan’s United Nations Ambassador Asim Iftikhar Ahmad this week criticized Israel for its “blatant aggression” against Iran at a UN Security Council meeting, calling on the international community to use dialogue and diplomatic engagement to resolve tensions in the Middle East.

Ahmad’s statement came on Friday as tensions in the Middle East soared after Iran fired dozens of missiles at Israel late Friday night, lighting up the skies above Jerusalem and Tel Aviv. The strikes were in response to a large-scale Israeli attack on Tehran’s nuclear facilities and military leadership early Friday. Iran said 78 people were killed and over 320 injured in the Israeli strikes.

At a UN Security Council briefing meeting on the Iran-Israel tensions on Friday, Ahmed said Tel Aviv’s “blatant provocations” posed a serious threat to the region and beyond, reiterating Iran’s right to self-defense. He said Israel’s recent military operations in Gaza and repeated cross-border strikes in Syria, Lebanon, and Yemen demonstrate a consistent disregard for international norms.

“Such blatant aggression and contempt for international law has already had devastating consequences,” Ahmad said, pointing out that tens of thousands of people have been killed in Gaza due to Israel’s military operations since October 2023.

Pakistan’s Ambassador to the United Nations Asim Iftikhar Ahmad speaks during a UN Security Council briefing on Iran, at the UN Headquarters in New York on June 13, 2025. (Photo courtesy: X/@PakistanUN_NY)

Israeli leaders say the Friday attack was necessary to head off an imminent threat that Iran would build nuclear bombs, though it remains unclear how close the country is to achieving that.

Iran maintains its nuclear program is for civilian purposes only.

Ahmad said Israel’s actions risk eroding the trust of the negotiation process related to Iran’s nuclear program, which he said was crucial for the peaceful settlement of these issues.

“We call on all parties to fulfill their respective obligations and responsibilities and avoid escalation,” the Pakistani envoy said. “Even in these testing times, diplomatic engagement and dialogue must be prioritized.”

Ahmad reiterated that the UN Security Council bears the responsibility to maintain international peace and security, calling it to “hold the aggressor accountable for its actions.”

Israeli first responders arrive at a site hit by a missile fired from Iran, in Ramat Gan on the outskirts of Tel Aviv on June 13, 2025. (AFP)

“This Council must deny Israel the free hand, and the impunity with which it continues to operate in defiance of international law and international opinion,” he said.

Israel has long been determined to prevent Iran from developing nuclear weapons, a concern laid bare on Thursday when the Board of Governors at the International Atomic Energy Agency for the first time in 20 years censured Iran over its refusal to work with its inspectors. Iran immediately announced it would establish a third enrichment site and install more advanced centrifuges.

Even so, there are multiple assessments on how many nuclear weapons Iran could conceivably build, should it choose to do so. Iran would need months to assemble, test and field any weapon, which it so far has said it has no desire to do. US intelligence agencies also assess Iran does not have a weapons program at this time.


Pakistan’s deputy PM speaks with Iranian official as Tehran launches retaliatory strikes on Israel

Pakistan’s deputy PM speaks with Iranian official as Tehran launches retaliatory strikes on Israel
Updated 19 min 1 sec ago

Pakistan’s deputy PM speaks with Iranian official as Tehran launches retaliatory strikes on Israel

Pakistan’s deputy PM speaks with Iranian official as Tehran launches retaliatory strikes on Israel
  • Ishaq Dar expresses Pakistan’s support to Iran ‘for achieving peace and stability in the region’
  • Air raid sirens sounded across Israel Friday night as dozens of Iranian missiles struck the country

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar spoke with his Iranian counterpart on Friday as Tehran launched a retaliatory missile strike on Israel following deadly Israeli attacks on nuclear facilities and senior military commanders.

Air raid sirens sounded across Israel on Friday night as dozens of Iranian missiles struck the country in a dramatic escalation of tensions. Explosions were heard throughout Jerusalem and plumes of smoke were seen rising in Tel Aviv after apparent strikes. While no casualties were immediately reported, the Israeli military ordered residents nationwide into bomb shelters.

The latest attacks came after Israel carried out a wave of airstrikes across Iran, reportedly killing at least three top Iranian military officers and targeting nuclear facilities and ballistic missile sites. Israeli military officials said 200 fighter jets were involved in the operation, which struck more than 100 locations in what analysts described as the most significant assault Iran has faced since its war with Iraq in the 1980s.

The Pakistani deputy PM held a phone call with Iranian Foreign Minister Seyed Abbas Araghchi, as the war escalated between the two Middle Eastern rivals.

“Deputy Prime Minister/Foreign Minister, Senator Mohammad Ishaq Dar @MIshaqDar50, today spoke with the Foreign Minister of Iran, Seyed Abbas Araghchi @Araghchi,” the Pakistani foreign office said in a statement.

Smoke billows after a projectile hit a building in Tel Aviv, Israel on June 14, 2025. (AP)

“Condemning the blatant Israeli aggression against the Islamic Republic of Iran in total disregard of the UN Charter and international law, DPM/FM reiterated strong support of Pakistan to the Government and brotherly people of Iran for achieving peace and stability in the region,” it added.

Dar also conveyed “deepest sympathies on the loss of many precious lives during Israeli attacks,” according to the statement.

Earlier in the day, the Pakistani foreign office said Israel had violated Iran’s sovereignty and that the attacks were “contrary to the UN Charter and fundamental principles of international law.”

It warned the escalation posed “a serious threat to regional peace and security,” adding that Iran had the right to self-defense under Article 51 of the UN Charter.

Dar, writing on X, described the Israeli strikes as a “brazen violation” of Iranian sovereignty and said they “gravely undermine regional stability and international security.”

“Pakistan stands in solidarity with the government and the people of Iran,” he wrote.

He also said the foreign ministry had established a 24/7 Crisis Management Unit to ensure the safety and security of Pakistani nationals and pilgrims in Iran.

Prime Minister Shehbaz Sharif echoed the condemnation and called on the international community and the United Nations to “take urgent steps to prevent any further escalation that could imperil regional and global peace.”

Israeli military spokesperson Defrin said all air defense systems had been activated in response to Iran’s retaliation and the country expected “difficult hours ahead.”

In Washington, the US administration said it had not been involved in the Israeli operation.

“Israel took unilateral action against Iran,” US Secretary of State Marco Rubio said in a statement released by the White House. “Our top priority is protecting American forces in the region.”

Ƶ’s foreign ministry also condemned the Israeli strikes.

“The Kingdom condemns these heinous attacks and affirms that the international community and the Security Council bear a great responsibility to immediately halt this aggression,” the Saudi statement said.

Airlines cleared out of the airspace over Israel, Iran, Iraq and Jordan on Friday following the strikes, according to Flightradar24 data, as carriers scrambled to divert or cancel flights to ensure passenger and crew safety.

Iran closed its airspace and Tel Aviv’s Ben Gurion Airport was shut down until further notice.

Israeli military Chief of Staff Eyal Zamir said tens of thousands of soldiers had been called up and deployed across all borders.

“We are amidst a historic campaign unlike any other. This is a critical operation to prevent an existential threat, by an enemy who is intent on destroying us,” he said.

With inputs from AP and Reuters
 


Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows

Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows
Updated 13 June 2025

Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows

Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows
  • Bilawal Bhutto-Zardari calls Indus Waters Treaty ‘gold standard in diplomacy’ at a think tank in Brussels
  • He condemns Israel’s military strike on Iran, says the region cannot afford the war to continue for long

KARACHI: The head of Pakistan’s diplomatic mission touring world capitals to explain Islamabad’s position on a recent military standoff with New Delhi warned Friday India’s threat to cut off his country’s water supply could lead to the “first water war” between two nuclear-armed states at a think tank in Brussels.

The warning came after New Delhi announced in April it was suspending the 1960 Indus Waters Treaty, a World Bank-brokered agreement seen as a cornerstone of India-Pakistan water cooperation, following a deadly gun attack in Kashmir, which it blamed on Pakistan.

Islamabad denied any involvement and called for an impartial international probe. However, tensions quickly escalated, with both sides deploying fighter jets, missiles, drones and artillery fire before a US-brokered ceasefire was announced by President Donald Trump on May 10.

Bilawal Bhutto-Zardari, Pakistan’s former foreign minister and the current head of the country’s diplomatic outreach, told the European think tank India’s threat to disrupt river flows affecting 240 million people amounted to a “war crime.”

“It would turn this into an existential crisis, and we would be left with no choice but to embark on the first water war… between two nuclear-armed states,” he said.

Bhutto-Zardari described the Indus Waters Treaty as “the gold standard in diplomacy,” noting it had survived multiple wars and had been replicated in over 40 other international water-sharing agreements.

He said recent Indian actions, such as the delayed or excessive release of water, had already damaged Pakistan’s crops and posed a humanitarian risk.

“Just a few days’ delay in water release can have devastating consequences for our agriculture,” he said. “This is the only water supply into Pakistan. In the context of climate vulnerability, the last thing we need is a fault line developing where cooperation once existed.”

His other delegation members maintained undermining the treaty would set a dangerous global precedent, allowing upper riparian states anywhere in the world to disregard binding water-sharing agreements.

“If this treaty is in abeyance, then no treaty signed after World War II is worth the paper it’s written on,” Musadik Malik, the climate change minister, said. “That threatens the rights of lower riparian countries across Africa, South America and beyond.”

Earlier, in a brief exchange with reporters, Bhutto-Zardari welcomed renewed interest from Washington in mediating between India and Pakistan.

“As you have seen, President [Donald] Trump said once again yesterday that he is ready to mediate on Kashmir,” he noted. “At the moment, Pakistan is talking about peace, America is also talking about peace. If anyone is still talking about war, it is India, and, by the grace of God, they will step back from this position soon.”

Responding to a query, Bhutto-Zardari strongly condemned Israel’s military operations against Iran and its broader regional policies.

“We strongly oppose the attack on Iran and the way the war is being waged in this region,” he said. “No amount of condemnation is enough. We demand that this war be stopped and that the entire world plays its role. Peace is very important in our territory. We cannot afford Israel’s war on Iran to continue for long.”


Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts

Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts
Updated 13 June 2025

Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts

Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts
  • Sindh, home to commercial hub Karachi, wants to abolish five taxes to ease pressure on individuals, businesses
  • Khyber Pakhtunkhwa, governed by jailed ex-PM Khan’s PTI, presents $7.63 billion budget for FY2025-26

KARACHI: Pakistan’s southern Sindh province on Friday proposed abolishing five taxes as it presented a Rs3.45 trillion ($12.41 billion) new budget for fiscal year 2025-26 to simplify taxation and alleviate financial pressure on people and small businesses.

Friday also saw Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province announcing a surplus budget of Rs2,119 billion ($7.63 billion) for next year, without proposing any new taxes. The province allocated significant financial resources for the militancy-hit tribal districts and social welfare programs, according to the budget document.

SINDH

Sindh’s budget, which carries a deficit of Rs38.46 billion ($138.35 million), includes plans to eliminate professional tax, cotton fee and entertainment duty among other levies as part of broader reforms to support salaried individuals, small businesses, and cultural industries.

“I would like to share some important changes being planned to make our tax system simpler and to reduce the financial burden on both individuals and businesses,” Chief Minister Murad Ali Shah said while presenting the budget in the provincial assembly.

Sindh generates most of Pakistan’s revenues, more than 60 percent, and is the second most populous province ruled by Pakistan People’s Party of President Asif Ali Zardari, a coalition partner of Pakistan Muslim League-Nawaz party which leads the federal government.

Pakistan remains under a $7 billion International Monetary Fund (IMF) loan program approved last year and the Washington-based lender wants Islamabad to broaden its tax base by taxing incomes from agriculture, retail and real estate sectors at the provincial level.

The two provinces announced their new fiscal plans days after Pakistan’s federal government announced its FY26 budget targeting 4.2 percent economic growth, while aiming to arrest fiscal deficit at 3.9 percent of the GDP.

In Sindh, the province’s total revenue receipts are projected at Rs3.41 trillion ($12.27 billion) for FY2025-26, up 11.6 percent from the current fiscal year ending June. Transfers from the federal divisible pool, which account for 75 percent of revenue, are expected to rise 10.2 percent to Rs1.93 trillion ($6.94 billion). With additional grants and straight transfers, total federal receipts are estimated at Rs2.10 trillion ($7.55 billion).

Current Revenue Expenditure (CRE) has been set at Rs2.15 trillion ($7.73 billion), a 12.4 percent increase from the prior year, driven by higher salaries, pensions, and grants to non-financial institutions.

Allocations for key sectors have seen marked increases. The education budget has risen to Rs523.73 billion ($1.88 billion) – a 12.4 percent hike – with major investments in primary and secondary education. New initiatives include hiring 4,400 staff, opening four community colleges, and funding for 34,100 primary schools through cost centers.

The health sector will receive Rs326.5 billion ($1.17 billion), up 8 percent, including Rs19 billion ($68.35 million) for the Sindh Institute of Urology & Transplantation (SIUT) and Rs10 billion ($35.97 million) for a new hospital in Larkana.

Enhanced ambulance and mobile diagnostic services are also planned.

Grants-in-aid total Rs702 billion ($2.53 billion), reflecting allocations for hospitals, universities, and development bodies. A Rs520 billion ($1.87 billion) Annual Development Program (ADP) focuses on 475 new schemes targeting flood recovery, renewable energy, and underserved regions.

Karachi, the provincial capital of Sindh, will see major upgrades in transport and infrastructure. Fifty electric buses will launch this year, with 100 more expected by August. Bus Rapid Transit (BRT) Yellow Line is nearing completion, and the Red Line has passed the halfway mark.

The Karachi Safe City initiative will expand CCTV coverage using artificial intelligence, while blockchain-based land records, a KPI monitoring dashboard, and digital birth registration aim to enhance governance.

In rural areas, Rs20 billion ($71.95 million) has been allocated for pro-poor initiatives, while the new Benazir Hari Card will support 200,000 farmers. The Sindh Cooperative Bank is being explored to provide interest-free loans to progressive farmers.

KHYBER PAKHTUNKHWA

Presenting the new budget, Khyber Pakhtunkhwa’s Finance Minister Aftab Alam said the province achieved a Rs100 billion ($359.71 million) surplus in the outgoing fiscal year despite receiving Rs90 billion ($323.74 million) less in funds from the federal government.

The province is ruled by jailed former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which is in opposition at the federal level.

“Against all odds and skepticism, we not only met our budget targets but also ensured timely debt repayments of Rs49 billion [$176.26 million],” Alam said.

He added that KP’s own non-tax revenues rose by 74 percent this year, while the KP Revenue Authority collected Rs41.37 billion ($148.79 million) in the first 10 months of the outgoing fiscal year.

The province has set a tax revenue target of Rs83.5 billion ($300 million) and a non-tax revenue target of Rs45.5 billion ($163.71 million) for the next fiscal year, aiming to widen the tax net rather than impose new levies.

Federal transfers, including Rs1,147.91 billion ($4.13 billion) from tax revenues and Rs58.15 billion ($209.17 million) in oil windfall levy, are expected to form the bulk of receipts.

The tribal districts are set to receive Rs292.34 billion ($1.05 billion), including Rs50 billion ($179.85 million) under an accelerated implementation program and Rs39 billion ($140.28 million) for development.

Key initiatives include the expansion of the Sehat Card Plus with life insurance coverage, recruitment of 16,000 teachers, and establishment of new degree colleges.

The province’s police force will receive Rs693.7 million ($2.49 million) for modern arms and Rs1.22 billion ($4.39 million) for vehicles.
 


IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine

IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine
Updated 13 June 2025

IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine

IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine
  • The loan adds to a $300 million commitment announced in April, bringing the total to $700 million
  • Reko Diq, one of the largest undeveloped copper-gold deposits, is being developed by Barrick Gold

ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan’s Reko Diq copper-gold mine, according to an IFC disclosure on Friday.

The loan adds to a $300 million commitment announced in April, bringing IFC’s total financing for the project to $700 million. The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders.

“The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,” the disclosure said, adding that other parallel lenders will provide the remaining debt financing.

This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest.

Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April.

Term sheets are expected to close by early in the third quarter. IFC chief Makhtar Diop said earlier this year that the institution was “doubling down” on Pakistan, with a focus on infrastructure, energy and natural resources.

Reko Diq, located in Balochistan, is one of the world’s largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50 percent, with the remainder split between Pakistan’s federal and provincial governments.

Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.