Pakistan mulls tit-for-tat action after two officials expelled over ‘espionage’

A vehicle carrying an Indian diplomat leaves the foreign ministry following a meeting with Kulbhushan Jadhav, an imprisoned Indian convicted of spying, in Islamabad, Pakistan, Monday, Sept. 2, 2019. (AP Photo)
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Updated 02 June 2020
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Pakistan mulls tit-for-tat action after two officials expelled over ‘espionage’

  • New Delhi’s act of detaining and torturing personnel unacceptable, High Commission official says 
  • Pakistan and India downgraded their diplomatic relations in August last year

ISLAMABAD: Pakistan said on Monday it is working on reciprocatory measures a day after India expelled two diplomats on “espionage” charges, with the two on their way to Islamabad from New Delhi this morning, senior officials told Arab News.

“Both our officials are on the way to Pakistan, as they are coming by road from New Delhi, so they will reach Wagah border by evening. Reciprocity in such acts is a normal procedure, and it is in the process,” Khawaja Maaz, spokesperson of Pakistan’s High Commission to India, told Arab News on the phone from New Delhi.

It follows a statement by India’s Foreign Ministry on Sunday which said that the officials had been apprehended and asked to leave the country within 24 hours for “indulging in activities incompatible with their status as members of a diplomatic mission.”

Pakistan slammed New Delhi’s statement and said that the charges were “false and unsubstantiated.”

“Pakistan has always followed the diplomatic norms and conventions that govern diplomatic relations between any two countries. We are a law-abiding country. We will take whatever step required to reciprocate and ensure the safety of our officers and diplomates in India,” Aisha Farooqui, Pakistan’s Foreign Office spokeswoman, told Arab News.

She added that the atmosphere of bilateral relations with India was already taut and that “this step of expelling Pakistani diplomats on false allegations will add to it.”

“There are a series of actions India has taken unilaterally like sending spy drones, maligning Pakistan on fake accusations and harassing high commission officials,” she said, adding that the latest move was “unacceptable.”

“Now they (India) went to a new low by detaining officials of our high commission, torturing them and pressurizing them to own up to false allegations. It is completely unacceptable,” Farooqui said.

Detailing the procedural steps that would follow, she said that India’s action was in clear violation of the Vienna Convention on diplomatic relations and norms.

“In this regard, the Indian Charge d’Affaires was summoned to the Foreign Office last night for a strong demarche, conveying Pakistan’s condemnation of the Indian decision to declare two officials of the High Commission for Pakistan in New Delhi persona non grata and rejection of all baseless Indian allegations against the High Commission officials,” Farooqui said.

Pakistan and India downgraded their diplomatic relations in August last year when New Delhi revoked the special legal status of Indian-administered Kashmir. 

The countries have fought two wars over the region and their forces regularly trade fire across the de facto border between the two countries, which is the 740-km long Line of Control.


PM Sharif orders probe as bomb blast in southwestern Pakistan kills 1

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PM Sharif orders probe as bomb blast in southwestern Pakistan kills 1

  • Incident follows Jan. 4 blast near Turbat city that killed five paramilitary soldiers, injured over two dozen others
  • Mineral-rich Balochistan province, which shares borders with Iran and Afghanistan, has faced insurgency for decades

ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Monday ordered authorities to investigate a roadside bomb blast in the country’s southwestern Turbat city that killed one person, vowing to bring the culprits to book and continue the state’s war against militants. 

The incident follows the Jan. 4 blast near Turbat when at least five paramilitary soldiers were killed and over two dozen others injured after a vehicle-borne improvised explosive device targeted a bus carrying security personnel. 

Monday’s roadside bomb blast in Turbat killed one person, state broadcaster Radio Pakistan reported. No group has so far claimed responsibility for the incident. 

“Prime Minister Shehbaz Sharif condemns the roadside bomb blast in Turbat,” a statement from Sharif’s office said. “The prime minister has directed the incident be investigated.”

Sharif said those responsible for the blast should be immediately identified and punished. 

“We will continue the war against terrorism until Pakistan is cleansed of it,” Sharif said. “Those who carry out such terrorist activities are enemies of the development of Balochistan.”

Balochistan, a mineral-rich province sharing borders with Iran and Afghanistan, has faced an insurgency for decades, which has intensified in recent years. The Baloch separatists accuse the Pakistani state of exploiting the region’s resources without adequately benefiting its population. 

However, Pakistani governments deny the allegations, saying they have launched several development projects to promote prosperity and improve the lives of residents in the province.

The Balochistan Liberation Army (BLA), with a strong presence in Balochistan, has emerged as a major threat to the state, carrying out deadly attacks, including suicide bombings, to target Pakistani security forces. 

According to provincial administration data, Balochistan witnessed a dramatic surge in militant violence in 2024, resulting in about 300 deaths in over 550 attacks.


Pakistani fintech operator partners with UAE group to provide financial solutions in Emirates

Updated 40 min 55 sec ago
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Pakistani fintech operator partners with UAE group to provide financial solutions in Emirates

  • Partnership to help customers in United Arab Emirates access earned wages prior to scheduled payroll date
  • Move “significant step” in providing flexible financial solutions to unbanked individuals, says Pakistani fintech 

KARACHI: An emerging fintech operator in the Middle East and Pakistan, Abhi, announced on Monday it has partnered with UAE’s Al Ansari Financial Services to provide financial solutions to banked and unbanked communities in the UAE. 

Abhi is a Pakistani fintech company that provides employers an opportunity to withdraw their earned salary any day through its Earned Wage Access (EWA) facility and other products. Founded in 2021, Abhi has been serving customers in Pakistan, UAE and Bangladesh through its credit-bridging products. 

Al Ansari Financial Services is a UAE-based financial services ecosystem that enables the mobility of money locally and globally. For almost 60 years, the group says it has enabled tourists, residents and businesses to transfer and exchange money and conduct payments effectively.

“In a move set to reshape the financial landscape, Al Ansari Financial Services one of the leading integrated financial services groups in the UAE announces its strategic partnership with Abhi Middle East Limited, the region’s largest embedded finance platform backed by Hub71 and Abu Dhabi Investment Office (ADIO), to broaden the spectrum of financial solutions available to consumers, ensuring a seamless service experience across the board,” Abhi said in a statement. 

The alliance will provide EWA and Send Now, Pay Later (SNPL) services to complement Al Ansari Financial Services’ existing portfolio from the second quarter of this year, Abhi said. The alliance will help address the varied needs of both unbanked and underbanked communities in the UAE, it added. 

The statement said that the solutions would be gradually introduced across multiple platforms to ensure easy and convenient access for customers, allowing for a smooth integration and enhanced user experience of the financial services.

“Abhi, a pioneer in earned wage access and technology-driven financial solutions, will be providing a technology platform and operational framework that will enable Al Ansari Financial Services’ customers to access their earned wages prior to the scheduled payroll date, in addition to allowing the unbanked and underbanked customers to remit funds internationally instantly while deferring payment,” Abhi said. 

It said Al Ansari will identify eligible customers for both services. 

“This partnership aligns with our ongoing mission to enhance financial accessibility and provide flexible solutions that cater to diverse financial needs,” Mohammad Bitar, group deputy CEO of Al Ansari Financial Services, said in a statement. 

Omair Ansari, co-founder and CEO of Abhi Middle East Limited, said the partnership is a “significant step” in providing unbanked individuals with flexible financial solutions. 

“Through the introduction of Earned Wage Access and Send Now, Pay Later in the UAE, we aim to address real-world financial challenges, offering tools that empower individuals to take control of their finances,” Ansari said. 


Pakistan preparing to debut yuan-denominated bonds this year, finance minister says

Updated 13 January 2025
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Pakistan preparing to debut yuan-denominated bonds this year, finance minister says

  • Pakistan planning to raise $200 million to $250 million from Chinese investors over next six to nine months
  • Government is optimistic it will meet the terms for an ongoing $7 billion IMF loan, finance minister says

ISLAMABAD: Pakistan is preparing to debut yuan-denominated bonds this year to shore up finances, Finance Minister Muhammad Aurangzeb told Bloomberg in an interview Monday, saying his government remained optimistic it would meet the terms of an International Monetary Fund bailout program.

The South Asian nation is planning to raise up to $250 million from Chinese investors over the next six to nine months, Aurangzeb said of the plan that comes as Pakistan’s sovereign rating has been upgraded recently by all three credit agencies. Aurangzeb said he expected further upgrades, and the challenge was to get into a “single-B” category, which would allow the country to return to global bond markets to raise funds.

“The country is very keen to tap the Panda bonds and the Chinese capital markets,” Aurangzeb said on the sidelines of the Asian Financial Forum in Hong Kong. “We have been remiss as a country not to tap it previously.”

The latest figure is slightly lower than the $300 million the finance minister was targeting in a March 2024 interview. China International Capital Corporation is advising Pakistan on the issuance of Panda bonds, Aurangzeb said.

Pakistan has enjoyed some stability from two years ago when an IMF bailout deal was in limbo and inflation and interest rates were above 20 percent. The government is optimistic it will meet the terms for an ongoing $7 billion loan, the finance minister said. 

The IMF, which is scheduled to visit Pakistan next month, wants Pakistan to broaden its tax base and reach a tax-to-GDP ratio of 13.5 percent, from 10 percent in December, Aurangzeb said.

“We are well on our way to achieve that target, not only because the IMF is saying that but because from my perspective the country needs to get into that benchmark to make our fiscal situation sustainable,” he said.

After Pakistan clinched the IMF bailout last year, it has been getting some reprieve, including from cooling inflation that provides space for policymakers to cut borrowing costs further and help prop up a nation that remains hammered by structural weaknesses. Stronger remittances, a bright spot, have also helped shore up currency reserves.

The rupee, as a result, rose about 2 percent in 2024, among best performers in emerging markets. The benchmark stock index outperformed nearly all other equities markets last year.

Pakistan still remains in a tough spot.

The government has to increase taxes to secure a fresh $1 billion loan tranche from the IMF or miss the lender’s tax revenue requirement for fiscal year ending June 2025 which could put the bailout at risk, Bloomberg Economics’ Ankur Shukla said in a note on Jan. 8.

Having gone through 25 loan programs over half a century, Pakistan must institute durable reforms in key areas of the energy sector, tax collection and state-owned enterprises to end a cycle of indebtedness, Aurangzeb told an IMF forum in October.

On Monday, Aurangzeb said the nation’s gross domestic product would probably expand 3.5 percent in the fiscal year ending June. Pakistan had set a 3.6 percent economic growth target after a 2.5 percent expansion the prior financial year.

The State Bank of Pakistan, which has cut the benchmark rate to the lowest in more than two years, is scheduled to announce its decision on Jan. 27 while inflation is expected to stabilize within the target range of 5 percent–7 percent in the next 12 months.

“We are into that phase of stabilization,” Aurangzeb said. “Now where do we go from here? We have to focus on sustainable growth. We are now very focused on fundamentally changing the DNA of the economy to make it export-led.”


Pakistan, UAE logistics firm finalize freight corridor project

Updated 13 January 2025
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Pakistan, UAE logistics firm finalize freight corridor project

  • Project will run 50 km from Karachi Port in Pakistan’s most populous city to the Pipri marshalling yard
  • Aim is to decongest Karachi, improve road safety, increase efficiency, reduce transport times and costs

ISLAMABAD: Pakistani officials and Dubai-based logistics giant DP World have finalized terms for a freight corridor project from Karachi Port to the Pipri Marshalling yard in southern Pakistan, state media reported on Monday.

The Karachi Freight Corridor is an infrastructure project in Pakistan aimed at improving the movement of freight from the port city of Karachi, Pakistan’s largest, to various parts of the country. The project involves the construction of a dedicated double-track corridor and other related facilities that will run 50 km from Karachi port to the Pipri Marshalling yard.

“A high-level delegation of Dubai-based logistics firm DP World led by Sultan Ahmed Bin Sulayem visited Pakistan through the SIFC [Special Investment Facilitation Council] platform to finalize various commercial aspects of the freight corridor project from Karachi Port to Pipri,” state news channel PTV said. 

“A mutually agreed-upon term sheet was signed between DP World and the relevant parties for the project’s implementation.

“This project will reduce the movement of freight vehicles in the Karachi metropolis through improved railway Infrastructure, aimed at advancing freight services within the country in a highly efficient and cost-effective manner.”

Pakistan and the UAE last year signed two inter-governmental framework agreements to establish a dedicated rail freight corridor and economic zone near Karachi. 

The agreements cover plans for over $3 billion investments in railways, economic zones and infrastructure. DP World will act on behalf of Dubai, while the Pakistan Railways and Port Qasim Authority will act on behalf of Pakistan.

The aim is to decongest Karachi, improve road safety, increase efficiency and reduce transport times and costs.

A second framework agreement covers dredging of the navigation channel and the development of an economic zone at Port Qasim.

Pakistan sees the signing of the investment framework agreements as a step toward the South Asian nation becoming a gateway to Asia and reaping the commercial dividends associated with its strategic location.

Last month, Pakistan’s National Logistics Corporation (NLC) and DP World said they would begin a shipping service between Karachi and Dubai from January. 


Pakistan and Saudi Arabia sign Hajj 2025 agreement in Jeddah 

Updated 35 min 53 sec ago
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Pakistan and Saudi Arabia sign Hajj 2025 agreement in Jeddah 

  • As per agreement, 179,210 Pakistanis will perform Hajj pilgrimage this year
  • Pakistan’s religion minister is in Kingdom to attend four-day Hajj conference

ISLAMABAD: Pakistan and Saudi Arabia have signed the Hajj agreement 2025, the spokesperson of Pakistan’s religion ministry said on Monday, according to which 179,210 pilgrims from the South Asian country would be able to perform the annual pilgrimage this year.

The agreement was signed by Pakistan’s Religious Affairs Minister Chaudhry Salik Hussain and Saudi Minister of Hajj and Umra Dr. Tawfiq bin Fawzan Al-Rabi’ah in Jeddah. Hussain arrived in the Kingdom on Sunday for a three-day visit to attend the Global Hajj and Umrah Conference and Expo in Jeddah. 

“As per the agreement, 179,210 Pakistanis will perform the Hajj this year,” the religious affairs ministry’s spokesperson said, according to Pakistan’s Press Information Department (PID). “It has been agreed to provide Pakistani Hajj pilgrims the best possible facilities.”

The spokesperson said Pakistani Hajj pilgrims will be provided a special place in Mina where the rates will be low, the spokesperson said. 

“A shortened Hajj program of 20 to 25 days has been introduced to make the Hajj journey more accessible, easy and comfortable,” he said, adding that pilgrims will have the option to spend four to eight days in Madinah during the Hajj. 

He said every Pakistani pilgrim will receive a specially designed bag containing the Pakistani flag, QR code for identification and information relevant to the Hajj. 

The spokesperson said Hussain will participate in the four-day Hajj conference, adding that more agreements will also be signed with institutions and companies responsible for providing facilities to pilgrims. 

Pakistan’s quota of 179,210 Hajj pilgrims for Pakistan in 2025 will be divided equally between government and private schemes.

For the first time, Pakistan’s Hajj policy allowed pilgrims last year to make payments in installments. Under this scheme, the first installment of Rs 200,000 ($717) had to be submitted with the application, the second installment of Rs 400,000 ($1,435) within 10 days of balloting and the remaining amount by Feb. 10 this year.

The Pakistani religious affairs ministry has also launched the Pak Hajj 2025 mobile application, available for both Android and iPhone users, to guide pilgrims. Additionally, the government announced a reduction in airfare, lowering ticket prices for federal program pilgrims to Rs 220,000 [$785.41], down from last year’s Rs 234,000 [$835.39].

Pakistan International Airlines, Saudi Airlines, and private carriers have agreed to transport pilgrims this year.