ISLAMABAD: Foreign Minister Shah Mahmood Qureshi told Arab News in an exclusive interview on Thursday that Pakistan’s mediation gesture during the Middle East crisis in the beginning of the year was applauded by Saudi Arabia and Iran.
“Both Saudi Arabia and Iran have appreciated Pakistan’s positive intentions behind the mediation effort,” Qureshi said, adding that the Saudi foreign minister, Prince Faisal bin Farhan Al Saud, told him during a meeting in Riyadh that Pakistan was “on the right track and all the regional countries should immediately join hands to deescalate the situation in the Middle East.”
On the directives of Prime Minister Imran Khan, Qureshi visited Iran, Saudi Arabia and the United States earlier this month to urge all stakeholders to practice “maximum restraint” in the wake of the killing of a top Iranian commander, Qassem Soleimani, in a US drone strike in Baghdad.
“With the help of other countries, Pakistan succeeded in its efforts to deescalate the Middle East situation. The country assured everyone it was willing to be partner in peace but could not become part of any other conflict,” Qureshi said.
“I also contacted foreign ministers of other regional states. Everyone understood the importance of convincing the countries concerned to exercise maximum restraint,” he continued.
“I met with the Iranian foreign minister and president. My meeting with President Hassan Rouhani lasted for an hour wherein we discussed how to defuse the situation and minimize tensions in the region,” the foreign minister said, adding: “I shared all the findings of my discussions in Tehran with my counterpart in Riyadh, saying it was Pakistan’s utmost desire to reduce tensions in the region.”
The minister continued that Pakistan wanted to minimize misunderstandings among Muslim states.
“Saudi Arabia is our very close friend while Iran is our neighbor. We don’t want tensions to mount among Muslim countries since that can be harmful for the whole Muslim Ummah.”
Asked about the expected visit of United States President Donald Trump to Pakistan, he said the American leader would visit Pakistan this year.
“President Trump has expressed his desire to pay an exclusive and independent visit to Pakistan which would not be linked to his visit to India. Pakistan is an independent and important country in the eyes of President Trump, therefore he desires to pay an exclusive visit to Pakistan,” Qureshi said.
The foreign minister said it now depended on President Trump’s “schedule where the visit will fit in.”
“It may come before or after the next US presidential election, but it will take place this year,” he said.
Pakistan’s role in Middle East deescalation hailed, says Qureshi
https://arab.news/jdz95
Pakistan’s role in Middle East deescalation hailed, says Qureshi

- Says the country’s diplomatic efforts have produced positive results in the region
- Informs that US President Donald Trump is planning an exclusive visit to Pakistan this year
Pakistan central bank expected to hold policy rate in June 16 meeting – survey

- 56 percent survey respondents predict no change, 44 percent expect rate cut amid moderate inflation outlook
- Bank has cut rate by 1,000 basis points since June 2024 from all-time high of 22% before holding it in March
ISLAMABAD: Pakistan’s central bank is likely to keep its benchmark interest rate unchanged at 11 percent in its upcoming monetary policy meeting next week, according to a survey conducted by brokerage firm Topline Securities.
The bank had cut the rate by 1,000 basis points since June 2004 from an all-time high of 22 percent before holding it in March, citing the risk of price rises including from increased US tariffs.
In May, the central bank cut its key policy rate by 100 basis points to 11 percent, citing an improved inflation outlook and resuming a series of cuts from a record high of 22 percent.
“56 percent of market participants expect a status quo in the upcoming monetary policy meeting, compared to 31 percent in the previous poll,” Topline Securities said in a market note, releasing the results of its survey.
“44 percent of participants anticipate a further rate cut of at least 50 basis points. Of these, 19 percent expect a 50 bps cut and 25 percent foresee a 100 bps cut.”
The brokerage house said analysts believed the SBP may have space to ease the policy rate further by up to 100 basis points, with inflation for fiscal year 2025–26 forecast to average between 6 and 7 percent.
However, it said the likelihood of near-term rate cuts was tempered by external headwinds such as rebounding global crude oil prices, ongoing tensions in the Middle East, and uncertainty around a potential US-China trade agreement.
“Some major notifications are also expected before the start of the next fiscal year— such as gas and electricity price adjustments,” the report said.
“The inflationary impact of these measures is yet to be assessed and absorbed. That said, we believe the central bank will observe the status quo in the upcoming meeting.”
Topline’s survey also found that 58 percent of respondents expect the interest rate to remain above 10 percent through December 2025, while 42 percent foresee a range between 8 and 10 percent.
On inflation expectations, 69 percent believe average inflation will range between 6 and 8 percent in the next fiscal year, 20 percent expect it to hover between 8 and 10 percent, and 11 percent forecast inflation falling below 6 percent.
Separately, the SBP confirmed that its next Monetary Policy Committee (MPC) meeting will be held on Monday, June 16, as scheduled.
The meeting is being closely watched by investors and market analysts amid changing domestic and global economic conditions. While the May rate cut signaled the beginning of a monetary easing cycle, rising external risks and upcoming fiscal adjustments may prompt a more cautious stance from the central bank.
Pakistan PM meets UAE president, thanks him for role in defusing India tensions

- Leaders agreed to maintain close coordination, work together “to advance shared goals of regional peace and prosperity”
- Saudi Arabia and the UAE were widely reported to have played a significant role in back-channel diplomacy last month
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Thursday met United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan and thanked him for his government’s efforts in defusing last month’s military conflict with India.
Sharif, who arrived in the UAE earlier in the day, held talks with the Emirati leader on bilateral, regional, and global issues. He had previously met Sheikh Mohamed in February while attending the World Government Summit in Dubai.
According to a statement from the PM’s office, Sharif specifically appreciated the UAE’s “constructive role in promoting peace and stability in the region, including its efforts to de-escalate tensions between Pakistan and India.”
“Both sides expressed satisfaction over the positive trajectory of bilateral ties and ongoing engagements at all levels,” the statement added. “The leaders agreed to maintain close coordination and continue working together to advance shared goals of regional peace and prosperity.”

Between May 7 and 10, nuclear-armed neighbors India and Pakistan exchanged drone, missile, and artillery strikes in their worst cross-border escalation in years. A ceasefire was later brokered by the United States, but Gulf states, particularly Saudi Arabia and the UAE, were widely reported to have played a quiet but significant role in back-channel diplomacy.
During Thursday’s meeting, Sharif also extended a renewed invitation for Sheikh Mohamed to visit Pakistan.
The UAE is one of Pakistan’s most important regional partners, with cooperation spanning trade, investment, defense, energy, and diaspora affairs. Roughly 1.5 million Pakistanis live in the UAE, making it the second-largest overseas Pakistani population after Saudi Arabia.
The UAE is also the second-largest source of remittances to Pakistan behind Saudi Arabia and in May sent $754.2 million home, according to the State Bank of Pakistan.
Bilateral ties have deepened in recent years, especially in areas like infrastructure, renewable energy and logistics. In May 2024, the UAE pledged to invest $10 billion in Pakistan’s key economic sectors as part of its long-term regional economic strategy.
Pakistan needs foreign investment to boost its economy and shore up its currency reserves to meet rising external repayment obligations as it treads a tricky path to economic recovery under a $7 billion IMF bailout deal.
Islamabad police make history with appointment of first woman SHO at men's station

- Sub-Inspector Misbah Shehbaz has been appointed the Station House Officer at Phulgran Police Station Islamabad
- As of 2023, women made up only 3.2% of Pakistan’s total police force, or 15,509 female officers out of 489,645 nationwide
ISLAMABAD: Sub-Inspector Misbah Shehbaz has been appointed the Station House Officer (SHO) at Phulgran Police Station, becoming the first woman to head a general (men’s) police station in the Pakistani capital of Islamabad.
The appointment was announced in an official press statement issued by the Foreign Media Cell of Islamabad Police on Thursday.
According to the statement, the appointment was made through formal orders issued by Deputy Inspector General of Police (DIG) Muhammad Jawad Tariq, who said the move was intended to “end gender discrimination within the Islamabad Police.”
“This initiative will continue and more female officers will be given the opportunity to lead police stations,” Tariq was quoted as saying in the press release.
The post of SHO is one of the most visible and operationally significant leadership roles in Pakistan’s police hierarchy, responsible for crime investigation, public safety, and station-level administration. Until now, female SHOs in Islamabad had only led women police stations.
By assigning a female officer to a mixed or general police station, Islamabad Police is signalling its intent to challenge long-standing norms. Observers say the move also aligns with broader reforms encouraged by both domestic policymakers and international partners such as the UN Office on Drugs and Crime (UNODC), which have pushed for gender-sensitive policing frameworks in Pakistan.
While Shehbaz’s appointment is a welcome development, it also highlights the structural barriers that female officers continue to face in entering Pakistan’s law enforcement sector.
According to the National Police Bureau (NPB) and UN Women Pakistan, as of 2023, women made up only 3.2% of Pakistan’s total police force — that is 15,509 female officers out of 489,645 nationwide.
In Islamabad, female representation was slightly higher at 5.04%, based on official NPB data published in 2023. Between 2019 and 2023, 11,398 women joined various police organizations in Pakistan, but the vast majority were not placed in command or operational leadership roles, as per a UN Women & NPB joint assessment report from 2023.
Experts say the absence of women in decision-making and field leadership reduces institutional responsiveness to gender-based violence and community trust in law enforcement.
Pakistan urges EU to continue GSP+, raises alarm over India’s water treaty violations

- Pakistani delegation has visited US, UK, Brussels to discuss regional tensions following military escalation with India
- Pakistani officials in the delegation warn EU officials of the wider implications of India undermining water treaties
KARACHI: A high-level Pakistani delegation visiting Brussels on Thursday urged European Union officials to support the continuation of Pakistan’s preferential trade access under the GSP+ scheme, while also raising concern over India’s alleged violations of the Indus Waters Treaty.
The delegation, led by former foreign minister Bilawal Bhutto Zardari, met with Bernd Lange, chair of the European Parliament’s International Trade Committee, to discuss regional tensions following a recent military escalation with India, the worst confrontation between the nuclear-armed neighbors in decades.
The group previously visited Washington and London as part of a broader diplomatic effort to rally international support after the conflict in which the two nations exchanged drones, missiles, and artillery strikes between May 7-10 before a ceasefire was announced. Since then, both countries have launched diplomatic offensives to present their narratives on the conflict and its causes.
“We just had a meeting with their [EU] trade representative, where we conveyed Pakistan’s message of peace,” Bhutto Zardari told reporters after the meeting.
“In that context, we specifically raised the decisions related to the Indus Waters Treaty, which are violations of international law, and in the EU context, they strongly believe in respecting treaties and adhering to international law. So, in that context, we pitched our case.”
The 1960 Indus Waters Treaty, brokered by the World Bank, governs the distribution of water from the Indus River system between India and Pakistan. Islamabad has expressed alarm in recent months over what it sees as India’s unilateral actions affecting river flows, warning that any withdrawal from or violation of the treaty could destabilize water access for millions of people in the region.
Bhutto Zardari emphasized that Pakistan seeks engagement over confrontation with India, citing terrorism, the longstanding Kashmir territorial dispute, and water issues as areas that require dialogue.
“There should be engagement with India, whether on the issue of terrorism, the Kashmir dispute, or, of course, the critical issue of water, so that solutions can be found,” he said.
Bhutto Zardari also thanked the European Union for expressing condolences over Pakistani casualties in the recent clashes with India and praised the bloc’s commitment to international norms.
“If you look at this recent conflict, the violation of international law has been committed by one side, and that side is not Pakistan,” he said.
Musadiq Malik, Pakistan’s federal minister for water resources and another member of the delegation, warned EU officials of the wider implications of undermining water treaties.
“If India is given the right to exit the Indus Waters Treaty, then 70 percent of the world’s countries that are lower riparian, whose populations depend on drinking water, agriculture, and life itself, will face destruction,” Malik said.
He urged the international community to preserve a rules-based global order.
“Because if we do not, remember, in the Wild West, the one with the faster gun ruled,” he added.
Former ambassador Jalil Abbas Jilani, also part of the delegation, said the team had requested continued EU support for Pakistan under the Generalized Scheme of Preferences Plus (GSP+), which allows duty-free or low-duty access for developing countries to the European market in exchange for progress on human rights, labor standards, environmental protection, and good governance.
“We requested them to continue their support for GSP+, as they have in the past,” Jilani said. “We hope the European Union will take into consideration Pakistan’s need for the GSP+ status and will play a role in its continuation.”
The current GSP+ arrangement, which has significantly boosted Pakistan’s textile exports to the EU, is due for review as the bloc finalizes the next phase of its trade preference program. The scheme has played a key role in supporting Pakistan’s exports, particularly in the garment sector, which employs millions.
Pakistan GSP+ benefits were extended last year until 2027.
Pakistan forms body to review e-commerce tax policy after new budget measures

- Fiscal plan for 2-25-26, announced on June 10, imposes tiered taxation structure on digital transactions
- Commerce, IT ministries are seeking input on reforms amid concerns over rising costs for online businesses
ISLAMABAD: Pakistan’s commerce and information technology ministries have announced the formation of a joint working group to propose changes to the country’s e-commerce tax regime, following the introduction of new digital levies in the federal budget for fiscal year 2025–26.
The budget, announced on June 10, imposes a tiered taxation structure on digital transactions. For payments under Rs10,000 ($35), a 1 percent tax will be applied. Payments between Rs10,000 and Rs20,000 ($71) will face a 2 percent tax, while transactions above Rs20,000 will be taxed at 0.25 percent. Courier services will collect the tax for cash-on-delivery orders, and payment gateways will deduct it for online payments.
The measures have raised concerns among businesses about increased compliance burdens and costs for online consumers.
“In line with the consultative approach of the forthcoming policy, Minister Kamal Khan announced the formation of a joint working group with input from the IT Ministry to gather comprehensive recommendations on taxation, vendor compliance and digital payments,” the commerce ministry said in a statement after a meeting between Commerce Minister Jam Kamal Khan and IT Minister Shaza Fatima Khawaja.
“The group’s findings will be formally presented to the prime minister for final consideration,” it added.
“Minister Kamal also confirmed that e-commerce policy 2.0 is in its final stages of internal review and will soon be submitted for cabinet approval.”
Pakistan’s e-commerce sector has grown rapidly, reaching a market value of Rs2.17 trillion ($7.7 billion) in 2024, according to the ministry of commerce. The sector is expected to expand at a compound annual growth rate of 17 percent through 2027, driven by increased smartphone penetration, digital payments, and logistics infrastructure.
The new tax framework has triggered concern among industry stakeholders, particularly small and medium-sized enterprises (SMEs), which dominate Pakistan’s online retail sector. Analysts say the measures could slow growth and hinder innovation in a sector seen as key to the country’s digital transformation.
In comparison, regional tax regimes vary.
India applies a 1 percent Tax Collected at Source (TCS) on e-commerce sellers under its Goods and Services Tax (GST) framework, while Bangladesh introduced a 5 percent VAT on local digital services in 2022. Sri Lanka levies a 2.5 percent Value Added Tax on online purchases, with additional withholding tax for certain platforms.
Globally, the European Union imposes VAT on cross-border e-commerce transactions, with rates ranging from 17 percent to 27 percent, while US states apply sales taxes ranging between 0 percent and 10.25 percent, depending on jurisdiction.
Pakistan’s e-commerce policy 2.0, once finalized, is expected to address regulatory gaps and streamline the digital business environment, which has so far operated under fragmented taxation and compliance rules.