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Pakistan welcomes World Bank stance on Indus Waters Treaty amid India suspension row

Pakistan welcomes World Bank stance on Indus Waters Treaty amid India suspension row
Pakistan's Prime Minister Shehbaz Sharif (right)in conversation with Regional President of the World Bank, Ousmane Dione in Islamabad on July 24, 2025. (Government of Pakistan)
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Updated 7 min 58 sec ago

Pakistan welcomes World Bank stance on Indus Waters Treaty amid India suspension row

Pakistan welcomes World Bank stance on Indus Waters Treaty amid India suspension row
  • Shehbaz Sharif discusses World Bank’s Country Partnership Framework with its regional vice president
  • He also thanks the Bank for its assistance during Pakistan’s 2022 floods that killed over 1,700 people

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday welcomed the World Bank’s position against India’s unilateral suspension of the Indus Waters Treaty (IWT), describing it as “principled support” for Pakistan during a meeting with the Bank’s regional vice president, Ousmane Dione, who is currently visiting the country.

The IWT, brokered by the World Bank and signed in 1960, governs water sharing between India and Pakistan. Earlier this year, New Delhi announced it was placing the treaty “in abeyance” following a militant attack in Indian-administered Kashmir that killed 26 tourists.

Indian authorities blamed the attack on Pakistan, a charge Islamabad denied while calling for a transparent and impartial international investigation.

The incident also triggered a four-day military standoff between the two nuclear-armed neighbors, which ended with a US-brokered ceasefire on May 10.

“The Prime Minister appreciated the World Bank’s principled support for Pakistan’s legitimate position in light of India’s unilateral and illegal actions to undermine a key international agreement like the Indus Waters Treaty,” said a statement issued by the Prime Minister’s Office after Sharif’s meeting with Dione.

“He reaffirmed Pakistan’s commitment to international law, the pursuit of prosperity, and the maintenance of regional peace, and expressed his resolve to address all issues through dialogue,” it added.

The World Bank’s stance aligns with comments made by its president, Ajay Banga, in May, when he clarified that the IWT contains no provision for unilateral suspension or withdrawal, and that any changes to the agreement must be made mutually by both India and Pakistan.

Banga also noted the Bank’s role in the treaty is strictly administrative, to appoint dispute-resolution experts and manage a trust fund when required, adding the institution has no authority to intervene in political decisions by either country.

During their meeting, Sharif and Dione discussed ongoing development cooperation, including the World Bank’s Country Partnership Framework (CPF), a strategic roadmap for investments in energy, education, governance reforms, and climate resilience.

The prime minister also thanked the Bank for its “swift and generous assistance” during Pakistan’s 2022 floods, which killed over 1,700 people, displaced millions and devastated agricultural land and public infrastructure.

Dione, the Bank’s regional vice president for the Middle East, North Africa, Afghanistan and Pakistan (MENAAP), reaffirmed his institution’s commitment to deepening its engagement with Pakistan.

He praised the country’s ongoing macroeconomic stabilization efforts and expressed confidence in the current administration’s reform agenda aimed at restoring investor confidence and promoting inclusive, sustainable growth.


Taliban deny UN report they tortured, threatened Afghans expelled from Pakistan and Iran 

Taliban deny UN report they tortured, threatened Afghans expelled from Pakistan and Iran 
Updated 8 sec ago

Taliban deny UN report they tortured, threatened Afghans expelled from Pakistan and Iran 

Taliban deny UN report they tortured, threatened Afghans expelled from Pakistan and Iran 
  • Pakistan and Iran are expelling millions of Afghans who they say are living in their countries illegally
  • Taliban authorities deny mistreating Afghan returnees, reject allegations of arrest, violence, intimidation 

ISLAMABAD: The Taliban have tortured and threatened Afghans forcibly returned from Iran and Pakistan because of their identity or personal history, a UN report said Thursday, which the Kabul administration has denied.

Pakistan and Iran are expelling millions of Afghans who they say are living in their countries illegally. Afghan authorities have urged nationals to return, pledging amnesty for anyone who left after the Taliban seized power in 2021.

But rights groups and the UN have repeatedly warned that some of those returning are at risk of persecution because of their gender, links to the former Western-backed administration or profession.

Thursday’s report from the UN mission in Afghanistan said some people have experienced serious human rights violations, while others have gone into hiding or relocated for fear of Taliban reprisal.

The violations include torture, ill-treatment, arbitrary arrest, and threats to personal security at the hands of the Taliban, according to the report.

A former government official told the UN mission that, after his return to Afghanistan in 2023, he was detained and severely tortured with sticks and cables. He was waterboarded and subjected to a mock execution.

A non-binary person said they were beaten severely, including with the back of a gun.

Volker Türk, the UN high commissioner for human rights, said nobody should be sent back to a country where they faced the risk of persecution on account of their identity or personal history. This was even more pronounced for Afghan women and girls, who were subjected to a range of measures “amounting to persecution based on their gender alone,” he added.

The Taliban have imposed severe restrictions on Afghan girls and women, cutting off education beyond sixth grade, most employment and access to many public spaces.

Responding to the report, Taliban authorities denied mistreating Afghan returnees and rejected allegations of arrest, violence, intimidation or retaliation against people because of their identity or personal history.

Afghans returning from neighboring countries were provided with facilities related to documentation, transportation, resettlement, and other legal support, they said, while the Interior Ministry provides a “warm welcome.”

They called on the UN mission to prevent forced deportations, adding the United Nations as a whole “should not hesitate” in providing basic needs to refugees, such as food, medicine, shelter and education.

Afghans who left their homeland in the millions over the decades are either being pushed out in expulsion campaigns, like those in Iran and Pakistan, or face an uncertain future because of reduced support for refugees.

On Monday, thousands of Afghans in the US lost protection from deportation after a federal appeals court refused to postpone US President Donald Trump administration’s decision to end their legal status.

Homeland Security officials said in their decision to end the Temporary Protected Status for Afghans that the situation in their home country was getting better. But groups helping Afghans with this status say the country is still extremely dangerous.

The Trump administration’s January suspension of a refugee program has left thousands of Afghans stranded, particularly in Pakistan, and a travel ban on Afghans has further diminished their hopes of resettlement in the US.


Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation

Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation
Updated 9 min 41 sec ago

Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation

Pakistan-UAE trade hit $10.1 billion in FY24-25 amid deepening cooperation
  • Trade surge attributed to policies of Special Investment Facilitation Council, Radio Pakistan says
  • UAE remains key for Pakistan’s exports, remittances and trade diversification strategy

ISLAMABAD: Pakistan and the United Arab Emirates strengthened economic ties this year, with bilateral trade increasing by 20.24 percent to $10.1 billion in fiscal 2024–25, according to State Bank of Pakistan data cited by Radio Pakistan on Thursday.

The state broadcaster report attributed the gains to the efforts of the Special Investment Facilitation Council (SIFC), a civil-military body set up in 2023 to fast‑track Gulf and other foreign investments in Pakistan’s key sectors. Islamabad aims to leverage these ties to reduce its import bill, attract capital, and create jobs.

The renewed focus on FDI comes amid Pakistan’s efforts to diversify exports and stabilize its economy under an IMF-supported reform program. 

“There has been significant progress in Pakistan‑UAE cooperation due to effective policies of Special Investment Facilitation Council (SIFC),” the state broadcaster reported, attributing the statement to the Interior Ministry.

The growth follows the 12th session of the Pakistan‑UAE Joint Ministerial Commission, where officials from both countries discussed collaborations in trade, investment, food security, aviation, IT and energy, Radio Pakistan added. 

Bilateral trade reached approximately $10.9 billion in fiscal 2023–24, including $8.41 billion in goods and $2.56 billion in services. Exports from Pakistan to the UAE were around $2.1 billion in FY25, compared to $8 billion in imports.

The UAE is also a major source of remittances. In 2024, money sent home by the Pakistani diaspora was $6.7 billion, which is projected to exceed $7 billion in 2025.


Pakistan central bank likely to cut interest rate at July 30 monetary policy meeting — poll

Pakistan central bank likely to cut interest rate at July 30 monetary policy meeting — poll
Updated 16 min 56 sec ago

Pakistan central bank likely to cut interest rate at July 30 monetary policy meeting — poll

Pakistan central bank likely to cut interest rate at July 30 monetary policy meeting — poll
  • Topline Securities survey finds 56 percent expect 50–100 bps rate cut, 37 percent see no change
  • Inflation projected to average 5–7 percent in FY26 leaving room for gradual monetary easing

KARACHI: A majority of financial market participants expect Pakistan’s central bank to cut its key interest rate by 50 to 100 basis points at its upcoming Monetary Policy Committee (MPC) meeting on July 30, according to a new poll by Topline Securities published this week.

The findings reflect growing market confidence that declining inflation and easing global oil prices have created space for monetary easing. In its last meeting, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 11 percent, citing uncertainty over the federal budget and regional tensions in the Middle East. This time, a stronger consensus appears to be building toward a rate cut.

In the latest survey, 56 percent of participants said they expect a 50–100 bps cut, compared to 44 percent in the previous poll, while 37 percent now expect no change, down from 56 percent in the last round.

Topline’s own forecast aligns with the consensus: the brokerage expects a 50 bps cut, noting that real interest rates remain elevated relative to historical averages.

“With FY26 inflation expected to average between 5–7 percent, the current policy rate of 11 percent implies real interest rates of 400–600 basis points — well above the historical range of 200–300 bps,” Topline said.

The survey also offered a broader glimpse into market sentiment:

51 percent of respondents expect the policy rate to fall to 10 percent by December 2025, with another 32 percent expecting 9 percent

On inflation, 54 percent forecast average inflation between 6–8 percent, while 27 percent see it between 4–6 percent

On the exchange rate, 51 percent expect the rupee to hover between Rs285–290 per US dollar by December 2025

Topline expects July inflation to fall to 3–3.5 percent, with prices staying between 3–5 percent through January 2026 before inching up to 6–8 percent through mid-2026. Pakistan’s government has set a 7.5 percent inflation target for FY26, while the IMF projects an average of 7.7 percent.

Secondary market signals also point to easing: yields on 6-month KIBOR and T-bills have dropped by 10–39 bps since the last MPC meeting. The 6M KIBOR currently stands at 10.99 percent, while the 6-month T-bill is at 10.75 percent.


Pakistan signs MoU with Chinese firm for vessels, funding to boost shipping sector

Pakistan signs MoU with Chinese firm for vessels, funding to boost shipping sector
Updated 24 July 2025

Pakistan signs MoU with Chinese firm for vessels, funding to boost shipping sector

Pakistan signs MoU with Chinese firm for vessels, funding to boost shipping sector
  • Chinese company’s cooperation with Pakistan is expected to cover ship acquisition and operational services
  • The development is part of Pakistan’s broader push to modernize shipping industry, enhance seaborne trade

KARACHI: Pakistan on Thursday signed a memorandum of understanding (MoU) with China’s Shandong Xinxu Group to deepen cooperation in ship leasing, sales and crew management, marking what officials described as a “new chapter” in maritime collaboration between the two countries.

The agreement between the Pakistan National Shipping Corporation (PNSC) and the Chinese firm is part of Islamabad’s broader push to modernize its shipping industry to enhance seaborne trade, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said during the signing ceremony in Islamabad.

“This agreement marks the beginning of joint development,” Chaudhry said. “It will strengthen Pakistan’s role in the growth of the shipping industry and create an enabling environment for further investment in the maritime sector.”

Under the MoU, the Chinese company has principally agreed to provide capital and vessels to PNSC, with cooperation covering ship acquisition, leasing, marketing and operational services.

The announcement comes just days after Pakistan halved port charges at Karachi Port, the country’s largest deep-sea facility, as part of a series of reforms aimed at cutting logistics costs and supporting low-emission, climate-resilient maritime practices.

“By lowering operational costs and streamlining logistics, we are not only boosting trade competitiveness but also contributing to climate resilience,” Chaudhry said over the weekend.

The ministry has also decided to deploy technologies such as artificial intelligence and drones to monitor port activity and reduce container dwell times by up to 70 percent.

Shandong Xinxu is one of several Chinese firms expanding investment in Pakistan under the multibillion-dollar China-Pakistan Economic Corridor (CPEC) cooperation.


Pakistan’s deputy PM scheduled to chair Security Council meeting on UN-OIC cooperation today

Pakistan’s deputy PM scheduled to chair Security Council meeting on UN-OIC cooperation today
Updated 24 July 2025

Pakistan’s deputy PM scheduled to chair Security Council meeting on UN-OIC cooperation today

Pakistan’s deputy PM scheduled to chair Security Council meeting on UN-OIC cooperation today
  • Meeting is among the signature events of Pakistan’s UN Security Council presidency in the ongoing month
  • A presidential statement urging deeper UN-OIC engagement is expected to be adopted during the session

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar is expected to chair a United Nations Security Council (UNSC) meeting today, Thursday, on ties between the United Nations and the Organization of Islamic Cooperation (OIC), according to Security Council Report, an independent entity that closely monitors the Council’s work.

The meeting is among the signature events of Pakistan’s UNSC presidency this month and falls under the broader agenda of UN cooperation with regional and subregional entities.

A presidential statement, initiated by Pakistan, is expected to be adopted unanimously during the session.

“The agreed text of the draft presidential statement notes the interest of utilising the existing and potential capabilities of the OIC, including through encouraging its member countries to resolve differences peacefully through dialogue, reconciliation, consultation, negotiation, good offices, mediation, and judicial settlement of disputes,” Security Council Report said.

“Among other issues, it recognizes the importance of OIC interaction with the Peacebuilding Commission (PBC) in support of nationally owned peacebuilding efforts and commends OIC member states for their commitment to international peacekeeping and peacebuilding, including through the contribution of troops to UN peacekeeping operations,” it added.

Founded in 1969, OIC includes 57 member states across four continents and serves as a platform for collaboration on political, economic and social issues affecting Muslim communities.

Presidential statements are formal expressions of the Council’s consensus but are not legally binding. They require unanimous approval and are often preceded by complex negotiations.

In a concept note circulated earlier this month, Pakistan said the meeting aimed to take stock of UN-OIC collaboration and identify ways to deepen cooperation on peacekeeping, conflict prevention, counter-terrorism and institutional dialogue.

The note also posed questions about how the UN could help enhance the OIC’s conflict resolution capacity and better align institutional efforts on global peace and security.