ISLAMABAD: Pakistan’s last-minute price hike for a long-term mobile operating license renewal will worry foreign investors who are seeking stability in their operations, Jazz chief executive Aamir Ibrahim said, amid an ongoing court case about the issue.
Pakistan’s biggest mobile network Jazz, owned by Dutch giant VEON, and the country’s second-largest telecoms firm, Telenor, are challenging in court the license renewal process, which has seen the fee set at $450 million from an expected $291 million.
The battle comes as Pakistan’s government faces heavy pressure to lift tax revenues following a preliminary loan agreement with the International Monetary Fund that will require it to cut billions of dollars from its swollen budget deficit.
Pakistan’s telecoms sector has grown rapidly over the past decade but the market is hyper-competitive and mobile operators fear a tougher period ahead amid a slumping economy and rising inflation that is expected to lead to belt tightening by the country’s 208 million people.
Jazz believes the license increase goes against a previous agreement struck in 2004 and is also frustrated the government had two years to come to a renewal fee decision but raised the price only three weeks before the May 25 deadline.
“Ultimately the investor needs profitability, stability and continuity in a country that’s different from their own,” Ibrahim told Reuters at Jazz’s swish headquarters in the capital Islamabad earlier this week.
“So for a foreign investor having these surprises three weeks prior to the renewal of a license is a big shock.”
The government did not respond to a request for comment. The next court date is set for June 3.
Ibrahim said Jazz, which has 58 million subscribers, and Telenor expected the renewal fee to remain the same as during the auction in 2004, which was won by Warid, a company that was acquired by VEON’s Mobilink and merged to form the Jazz brand.
Another major sticking point for the mobile operators is the decision by Pakistan’s cash-strapped government to set the new fee in US dollars and not in local rupee currency, which has lost about 40 percent against the dollar in the last 18 months.
The 2004 auction for a 15-year license cost $291 million, equivalent to 17 billion rupees at the 2004 exchange rate. But with the rupee plunging to record lows against the dollar, Jazz now faces paying 67 billion rupees for $450 million.
“There is no precedent of the government offering (in dollars) any kind of a concession or a license to a company in Pakistan selling things in Pakistan,” Ibrahim said, pointing out that Jazz charges customers and earns in rupees, not dollars.
“Pricing in dollars is completely unsound.”
Pakistan secured preliminary agreement over a $6 billion IMF bailout program earlier this month that is expected to come with tough conditions requiring it to improve tax receipts to rein-in a ballooning fiscal deficit.
Ibrahim said higher fees will leave Jazz and other operators with less cash to invest in vital digital infrastructure Pakistan will need if it wants to modernize its economy and drive entrepreneurship and growth.
“I understand the government is cash-strapped but what they’re trying to do is milk for short-term gain,” he said. “But that in the process leaves the country behind.”
Pakistan’s biggest mobile operator warns license tussle worries investors
Pakistan’s biggest mobile operator warns license tussle worries investors
- Mobile operators Jazz and Telenor have gone to court challenging the government’s license renewal process
- A renewal fee has been set at $450 million from an expected $291 million, which mobile operators say is too high
Pakistan stocks slide on surging tensions with neighboring India
- The stock market shed 1,405.44 points, or 1.22 percent, to close at 115,469.34 points
- The below-expectation corporate results also disappointed investors, an analyst says
ISLAMABAD: The Pakistan Stock Exchange plunged and lost more than 1,400 points in intraday trading, traders and analysts said on Monday, as rising tensions with India triggered geopolitical jitters and fueled a wave of investor selling at the market.
The benchmark KSE-100 index shed 1,405.44 points, or 1.22 percent, to close at 115,469.34 points after touching an intraday high of 116,658.94 points on Monday, according to stock traders.
The development came amid heightened tensions between Pakistan and India over the killing of 26 tourists in Indian-administered Kashmir on April 22. New Delhi has blamed the attack on Pakistan, Islamabad denies any complicity.
"The prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence," Karachi-based Topline Securities brokerage firm said.
It said companies like SYS, LUCK, MEBL and HBL contributed 489 points to the index, while ENGRO, UBL, MARI, EFERT and PSO shaved off 907 points from the benchmark.
"Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 421 million shares and a turnover of Rs26.43 billion," the firm said in its review.
The market saw an overall trade of 533 million shares, valued at Rs33.7 billion.
Muhammad Rizwan, a director at Chase Securities, said below-expectation corporate results also disappointed investors.
"NRL, PAEL and Engro Holding disappointed investors, impacting stocks in a range of 5.4 percent to 9.7 percent," Rizwan said.
First six Hajj flights from Pakistan depart for Saudi Arabia tomorrow
- 114,000 Pakistanis are expected to perform Hajj pilgrimage in 2025
- Record-breaking 2.5 million Muslims expected to perform Hajj this year
ISLAMABAD: Pakistan’s 33-day-long Hajj flights operation will be launched tomorrow, Tuesday, with six flights set to depart for Saudi Arabia, state media reported on Monday.
This year’s annual pilgrimage will take place in June, with nearly 89,000 Pakistanis expected to travel to Saudi Arabia under the government scheme and 23,620 Pakistanis performing Hajj through private tour operators.
“The Hajj flight operation to airlift intending pilgrims to Saudi Arabia is commencing from tomorrow [Tuesday],” Radio Pakistan said in its report.
“On the first day of the Hajj flight operation, six flights will be operated: two from Lahore and one each from Islamabad, Karachi, Quetta and Multan.”
Around 89,000 pilgrims traveling under the government scheme will travel to Makkah and Madinah through 342 flights. The last Hajj flight will depart on May 31.
Around 50,500 Pakistani pilgrims will travel to Saudi Arabia under Saudi Arabia’s Makkah Route Initiative, which aims to streamline the immigration process for pilgrims to Makkah. The initiative was launched in 2019 by the Saudi Ministry of Hajj and Umrah and has been implemented in five countries: Pakistan, Malaysia, Indonesia, Morocco, and Bangladesh.
Under the initiative, pilgrims are able to complete their immigration requirements at their home country’s airports before they depart for Saudi Arabia. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again.
Under the Makkah Route Initiative, 28,000 pilgrims will depart for the Kingdom from Islamabad while the remaining 22,500 will fly from the southern port city of Karachi.
While a precise number of worldwide pilgrims for Hajj 2025 is difficult to determine in advance, projections suggest it will be a record-breaking year, with over 2.5 million Muslims performing the pilgrimage.
China urges restraint, Riyadh and Tehran offer help as Pakistan-India tensions surge over Kashmir
- The development comes amid fears India may carry out limited airstrikes or raids near the border with Pakistan over attack in Pahalgam
- The two neighbors have exchanged gunfire, diplomatic barbs, expelled each other’s citizens after the attack that killed 26 tourists
ISLAMABAD: China has called for measures to lower heightened tensions between Pakistan and India over a recent attack in India-administered Kashmir, while several other countries, including Saudi Arabia and Iran, have offered Islamabad assistance in resolving the crisis.
New Delhi has accused Pakistan of backing the deadliest attack in Indian-administered Kashmir since 2000 that killed 26 tourists on April 22. Islamabad denies the claim and has offered to participate in a credible international probe.
The two nuclear-armed neighbors have since exchanged gunfire, diplomatic barbs, expelled each other’s citizens and shut border in a series of punitive measures against each other.
Top Pakistani leaders have reached out to senior officials in China, Saudi Arabia, Iran and Egypt and other countries amid fears that India’s possible actions over the attack may lead to a wider conflict in the region.
“China welcomes all measures that will help cool down the current situation and supports carrying out fair and just investigations at an early date,” Guo Jiakun, a Chinese foreign ministry spokesman, said at a press briefing on Monday, hoping Pakistan and India would uphold regional peace.
“As the neighbor of both India and Pakistan, China hopes that India and Pakistan will exercise restraint, work in the same direction, handle relevant differences properly through dialogue and consultation, and jointly uphold peace and stability in the region.”
The statement came as New Delhi said India had signed a contract to purchase 26 Rafale fighter jets from France, amid fears that India may carry out limited airstrikes or special forces raids near the border with Pakistan.
The last time India conducted such strikes against Pakistan was in 2019, when it retaliated for a suicide bombing in Pulwama in Indian-administered Kashmir in which at least 40 Indian paramilitary police were killed. Pakistan had denied complicity in that assault and the Indian strikes were followed by Pakistan’s downing of an Indian fighter jet and capturing of an Indian pilot, bring the two neighbors to the brink of an all-out war.
On Monday, India said it had responded to ‘unprovoked’ small arms firing from Pakistan along the de facto border in Kashmir for the fourth consecutive night. There was no immediate comment from the Pakistani side.
Several regional countries have urged bilateral consultation and dialogue between the two countries to prevent tensions from escalating any further.
Late last week, Pakistan’s Deputy Prime Minister Ishaq Dar, who also serves as foreign minister, briefed his Saudi counterpart, Prince Faisal bin Farhan, on Islamabad’s response to India’s retaliatory moves, saying his country would respond firmly to any external aggression.
“Both leaders agreed to continue consultations and coordination on the evolving regional situation,” the Pakistani foreign ministry said.
Iranian Foreign Minister Abbas Araghchi on Friday offered to mediate the crisis between the two South Asian nations.
“India and Pakistan are brotherly neighbors of Iran, enjoying relations rooted in centuries-old cultural and civilizational ties. Like other neighbors, we consider them our foremost priority,” he said on X.
“Tehran stands ready to use its good offices in Islamabad and New Delhi to forge greater understanding at this difficult time.”
Pakistan and India have fought multiple wars, including two of them over the disputed region of Kashmir, since their independence from British rule in 1947. Both rule the region in part but claim it in full.
New Delhi routinely accuses Pakistan of supporting armed separatist militants in Kashmir. Islamabad denies the allegations and says it supports the Kashmiri people diplomatically and politically.
Indian-administered Kashmir crackdown sparks anger as Pakistan tensions escalate
- New Delhi has accused Pakistan of supporting ‘cross-border terrorism’ after gunmen killed 26 people in Kashmir on Apr. 22
- Islamabad has denied any role and called attempts to link Pakistan to the attack ‘frivolous,’ vowing to respond to Indian action
SRINAGAR: Anger in Indian-administered Kashmir escalated on Monday over sweeping detentions in the hunt for the gunmen who carried out a deadly attack last week that New Delhi blames on arch-rival Pakistan.
New Delhi has accused Pakistan of supporting “cross-border terrorism” after gunmen killed 26 people on April 22, the worst attack on civilians in contested Muslim-majority Kashmir for a quarter of a century.
Islamabad has denied any role, calling attempts to link Pakistan to the attack “frivolous” and vowing to respond to Indian action.
Relations between the nuclear-armed rivals have plunged to their lowest level in years, sparking worries by analysts of possible military action.
The attack also sparked a huge manhunt for the gunmen in Kashmir, with Indian security forces blowing up nine homes of suspected rebels, as well as detaining nearly 2,000 people for questioning, a senior police official told AFP.
“Punish the guilty, show them no mercy, but don’t let innocent people become collateral damage,” Jammu and Kashmir’s Chief Minister Omar Abdullah said in a statement.
Aga Ruhullah, a federal lawmaker from Kashmir, said: “Kashmir and Kashmiris are being given a collective punishment.”
Security operations in the search for the gunmen come as India and Pakistani forces have exchanged fire across the de facto border in the rugged and remote high-altitude Himalayan outposts.
India’s army said on Monday its troops and Pakistani forces had fired at each other for a fourth night in a row.
There were no reported casualties. Islamabad did not immediately confirm the gunfire from Pakistan.
“During the night of April 27-28... Pakistan Army posts initiated unprovoked small arms fire across the Line of Control,” the Indian army said in a statement, referring to the de facto border in contested Kashmir.
“Indian troops responded swiftly and effectively,” it said.
Muslim-majority Kashmir has been divided between India and Pakistan since their independence from British rule in 1947.
Both claim the territory in full.
Rebels in the Indian-run area have waged an insurgency since 1989, seeking independence or a merger with Pakistan.
Indian police have issued wanted posters for three men — two Pakistanis and an Indian — who they say are members of the Pakistan-based Lashkar-e-Taiba group, a UN-designated terrorist organization.
They have announced a two million rupee ($23,500) bounty for information leading to each man’s arrest.
India is also hunting several of its own citizens in connection to the killings, sweeping up those they suspect may have information on the attackers.
“It’s a revolving door in police stations as part of the ongoing investigation,” said a senior police official who spoke on condition of anonymity because they were not authorized to talk to the media.
“Some have already been let go, and more are being summoned to police stations,” the officer said.
The homes of men suspected of having links to the attackers have also been blown up at night.
Yasmeena, the sister of fugitive accused Ashif Sheikh, said her family was being punished, with their home demolished even though they had not seen her brother for three years.
“If my brother is involved, how is it the family’s sin?” she said.
“This house doesn’t belong to him alone.”
New Delhi has downgraded diplomatic ties since the attack, withdrawn visas for Pakistanis, suspended a water-sharing treaty, and announced the closure of the main land border crossing with Pakistan.
In response, Islamabad ordered the expulsion of Indian diplomats and military advisers, canceled visas for Indian nationals and barred its airspace to Indian airplanes.
India’s Defense Minister Rajnath Singh met with Prime Minister Narendra Modi on Monday after warning last week that those responsible for the attack in Kashmir would see a response “loud and clear.”
The United Nations has urged the arch-rivals to show “maximum restraint” so that issues can be “resolved peacefully through meaningful mutual engagement.”
China, which shares a border with both India and Pakistan, urged both sides on Monday to “exercise restraint, meet each other halfway” and “properly handle relevant differences through dialogue,” foreign ministry spokesman Guo Jiakun said.
Iran has already offered to mediate, and Saudi Arabia has said Riyadh was trying to “prevent an escalation.”
Pakistan university, COMSTECH ink MoU for scholarships of Palestinian students
- Abbottabad University of Science and Technology will offer 40 scholarships to Palestinian students in various undergraduate programs
- Program aims to support Palestinian students by covering their tuition and hostel fees, and provide them stipends, says state media
ISLAMABAD: A Pakistani university has signed a memorandum of understanding (MoU) with the Organization of Islamic Cooperation’s (OIC) Standing Committee on Scientific and Technological Cooperation (COMSTECH) to provide scholarships to Palestinian students, state media reported on Monday.
The initiative is part of the “COMSTECH Scholarships and Research Fellowships for Palestinian Nationals” program, which aims to support Palestinian students by covering their tuition and hostel fees. The program also provides them monthly stipends, enabling Palestinian students to pursue higher education in Pakistan.
“The OIC Standing Committee on Scientific and Technological Cooperation (COMSTECH) and Abbottabad University of Science and Technology (AUST) on Sunday signed a MoU to offer scholarships to Palestinian students for the academic year 2025-2026,” the APP said.
As per the MoU, the Pakistani university would provide tuition to Palestinian students through both online and on-campus learning modes, APP said.
“The UST Abbottabad will offer 40 scholarships in various undergraduate programs including Doctor of Physiotherapy, Doctor of Pharmacy, BS Medical Laboratory Technology (MLT), BS Microbiology, BS Food Sciences, BS Computer Science and BS Software Engineering,” the report said.
Last year, Pakistan’s University of Lahore offered 5,000 free scholarships, fellowships and short training programs for Palestinian students in collaboration with COMSTECH.
Pakistan has actively tried to help Palestinian students secure higher education in the country after Israel’s military campaign in Gaza, which has killed over 52,000 Palestinians since Oct, 7, 2023, in the densely populated enclave.
Over 300 Palestinian students were enrolled in Pakistani universities in 2024 while more than 50,000 Palestinian nationals have graduated from educational institutions in Pakistan over the years.
