Sugar scam, IMF bailout saw ouster of Pakistani PM’s close aide from inner circle 

In this file photo, Pakistan Tehreek-i-Insaf (PTI) leaders Imran Khan and Jahangir Tareen are seen at a rally in Islamabad on November 30, 2014. (AFP/File)
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Updated 21 October 2020
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Sugar scam, IMF bailout saw ouster of Pakistani PM’s close aide from inner circle 

  • Longtime friends and confidants, Jahangir Khan Tareen and Imran Khan are no longer on talking terms
  • Tareen currently lives at his Newbury farmhouse outside of London in what many see as self-imposed exile

ISLAMABAD: For nearly a decade, of all the friends and confidants in Prime Minister Imran Khan’s inner circle, sugar baron Jahangir Khan Tareen was his closest.
Today, Tareen and Khan are no longer even on talking terms, officials close to both say, as the wealthy businessman and one of the largest sugar producers in Pakistan ponders his political future at a farmhouse outside London.

There is no doubt he is in self-imposed exile, indefinitely. 
Tareen left for London in June this year amid a high-profile investigation into a sugar case that accuses him of being one of the major beneficiaries of government subsidies on sugar exports and of profiting from increasing prices in the local market. 
PM Khan, who in the past had stood by Tareen even when he was barred by the country’s top court from holding public office over corruption allegations, has pushed for an investigation into the scam.

After that, said Ishaq Khan Khakwani, a senior member of the ruling Pakistan Tehreek-i-Insaf party, things got “personal” for Tareen.
But relations between the two leaders began to go sour much before the sugar scam — perhaps just a few months after Imran Khan took oath as prime minister in 2018. 
“When people form governments, there is a lot of palace intrigue,” said Khakwani. “Everyone wants the ear of the ruler. Thus, a tussle begins.”

The first major tussle, it seems, was over an IMF bailout.

Khan inherited an economy in shambles when he came to power, with major financing gaps, a large fiscal and current account deficit, a low level of reserves and an overvalued currency. 

Seeking a bailout from the IMF seemed to be the only solution, and one that Tareen supported. But finance minister at the time, Asad Umar, was opposed to the idea, Khakwani said. 

Lengthy negotiations with the IMF kicked off and dragged on, with no agreement in sight when in April 2019, Umar, himself a close aide to the PM, was replaced as the finance minister in a surprise move. Insiders in the PTI say Umar’s tough talking with the IMF had put Tareen and other wealthy business owners at unease, afraid he would not be able to get the right deal to shore up the economy.

With Umar gone, the IMF approved a three-year, $6 billion loan a few months later, in July.
In an interview to Voice of America, science minister and close PM aide Chaudhry Fawad Hussain claimed it was indeed Tareen who had Umar removed from the finance ministry portfolio. When Umar returned to the cabinet in November as planning minister, Hussain said, the former finance chief launched his own efforts to have Tareen ousted from Khan’s inner circle.
“When Umar returned [to the cabinet],” the minister said, “he put in a lot of effort and had Tareen removed.” 
Umar and Tareen did not respond to repeated requests for comment. 

The final straw came when the sugar scam broke, and Khan personally pushed for a probe, and many government officials began to publicly distance themselves from Tareen.
“An inquiry is okay if it probes all 88 sugar mills in the country,” Khakwani said. “But only Tareen’s office was raided. His staff was humiliated.”
Come 2020, the wealthy businessman was seen as a liability that would hurt the PTI’s anti-corruption mantra and thus he was cast out of the prime minister’s palace, analysts say.
“It [the sugar report] was the government’s first major scandal where the government was accused of wrongdoing, in which those connected to the government were seen to have benefited,” political talk show host Arifa Noor said. “So the prime minister was criticized for his government being guilty of financial impropriety.”
Hamid Khan, a founding member of the PTI and a senior lawyer who is now largely estranged from PM Khan, said the PTI leader should have distanced himself from Tareen much sooner:

First, when an internal party report in 2015 demanded that Tareen be stripped of his post as PTI general secretary over his alleged role in rigging intra-party polls; and second, in 2018, when the Supreme Court declared Tareen “dishonest” and barred him from holding public office over corruption allegations.
But both times, Khan stood by Tareen.
“He always protected him,” Hamid Khan told Arab News. “Back in 2015, Khan told a gathering of the party that he cannot leave these people.”


Islamabad invites Chinese enterprises to invest in Pakistan’s agriculture sector

Updated 17 July 2025
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Islamabad invites Chinese enterprises to invest in Pakistan’s agriculture sector

  • Agriculture employs nearly 38 percent of Pakistan’s workforce, contributes around 19 percent to GDP
  • China, Pakistan discuss collaborating in research, cotton production, seed development, irrigation efficiency

ISLAMABAD: Pakistan’s Minister for Food Security Rana Tanveer Hussain on Thursday invited Chinese enterprises to invest in the country’s agriculture sector, eyeing stronger collaboration with Beijing in irrigation technologies and modern farming techniques.

Pakistan has recently undertaken efforts to promote its agriculture sector, which include establishing a new regulatory body this week to reform the sector and bring domestic food safety standards in line with international requirements.

Agriculture remains a cornerstone of Pakistan’s economy, employing nearly 38 percent of the workforce and contributing around 19 percent to the country’s GDP. However, the sector has long faced challenges, including outdated practices, poor regulatory oversight, low export competitiveness and barriers in meeting international sanitary and phytosanitary (SPS) standards.

Hussain met a high-level Chinese delegation including Jiang Zaidong, the Chinese ambassador to Pakistan, on the sidelines of the China-Pakistan Economic and Trade Exchange Conference in Islamabad.

“The Minister also underlined the importance of public-private partnerships and urged Chinese enterprises, including those from XPCC [Xinjian Production and Construction Corps] and China Xinjian Group, to explore investment opportunities in Pakistan’s agriculture and agri-business sectors,” the food security and research ministry said in a statement.

Hussain welcomed proposals for joint ventures, research exchanges and the establishment of demonstration farms and technology centers in Pakistan, the statement added.

The two sides discussed enhancing agricultural cooperation, particularly focusing on research, cotton production, seed development, irrigation efficiency and technological exchange.

The Pakistani minister highlighted the challenges Islamabad has faced in recent years, especially in cotton production, where declining yields and outdated seed varieties have created major setbacks, the ministry said.

“The Minister expressed keen interest in learning from Xinjiang’s remarkable progress in improving agricultural productivity, especially in regions with arid and semi-arid climates, which closely resemble many parts of Pakistan,” the statement said.

Zaidong reaffirmed China’s commitment to deepening agricultural cooperation with Pakistan, the food security ministry said.

“He appreciated Pakistan’s proactive approach and openness to collaboration and highlighted the potential for long-term partnership in food security, technology transfer, and rural development,” the statement added.

Pakistan has undertaken a reform drive to enhance its economic sectors via the Special Investment Facilitation Council (SIFC). The SIFC is a civil-military hybrid body formed in 2023 to fast-track foreign investment and economic reform in strategic sectors, including agriculture, mining, IT and defense production.

Pakistan aims to attract international investment in its key economic sectors to ward off a prolonged macroeconomic crisis that has drained its resources and embroiled the country in a balance of payments crisis.


No visit by Trump to Pakistan ‘scheduled at this time’ — White House official

Updated 17 July 2025
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No visit by Trump to Pakistan ‘scheduled at this time’ — White House official

  • Trump confirmed to visit UK from Sept. 17–19 for state events hosted by King Charles
  • Speculation of Trump’s Pakistan stop emerged after reports on local TV channels

ISLAMABAD: No visit to Pakistan by US President Donald Trump has been scheduled, a White House official confirmed on Thursday, contradicting media reports in Pakistan that claimed he would arrive in the country in mid-September.

At least two Pakistani media outlets had reported that Trump was expected to visit Islamabad around September 18. The reports fueled speculation about a possible South Asia tour that could include a rare presidential trip to Pakistan.

However, Trump is already scheduled to travel to the United Kingdom from September 17 to 19, where he is expected to meet members of the royal family and participate in events hosted by Buckingham Palace, according to a previously issued statement from the palace.

Separately, Indian media have reported that Trump may also stop in New Delhi in September, though exact dates have not been confirmed by the White House.

In response to an Arab News query regarding a potential Pakistan visit, the White House said on background:

“A trip to Pakistan has not been scheduled at this time.”

Geo and ARY news channels had said earlier on Thursday that Trump was expected to visit Pakistan in September. But both later withdrew their reports.

If Trump does end up visiting Pakistan, it would be his first to Pakistan as president and the first by a US president since George W. Bush’s trip to Islamabad in 2006.

US-Pakistan relations saw a major boost when Trump hosted Pakistan’s army chief Field Marshal Asim Munir at the White House last month in an unprecedented lunch meeting.


Pakistan signs rail project pact with Afghanistan, Uzbekistan in push for regional connectivity

Updated 17 July 2025
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Pakistan signs rail project pact with Afghanistan, Uzbekistan in push for regional connectivity

  • Agreement will launch joint feasibility study for UAP railway link connecting Central Asia to Pakistani ports
  • Pact seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar on Thursday signed a framework agreement to conduct a joint feasibility study for the Uzbekistan-Afghanistan-Pakistan (UAP) Railway Project in Kabul, in a major push for regional connectivity with Central Asia.

The UAP Railway Project aims to establish a vital trade and transit corridor linking Uzbekistan with Pakistan via Afghanistan, offering the Central Asian republics direct access to Pakistani seaports. The rail link is expected to significantly boost regional connectivity, facilitate trade and contribute to long-term economic integration and political stability in the broader region.

For Pakistan, which seeks to position itself as a regional connectivity hub, the UAP railway is also strategically important in strengthening economic ties with Central Asia and securing stable transit through Afghanistan, a country whose internal security dynamics continue to impact broader regional development goals.

“I congratulate the people & governments of Pakistan, Afghanistan, and Uzbekistan on the signing of the Framework Agreement on the Joint Feasibility Study for the Naibabad–Kharlachi rail link under the Uzbek–Afghan–Pak (UAP) Railway Corridor,” Dar wrote on social media platform X.

Dar described the signing of the agreement as a “major milestone” for advancing regional connectivity and economic integration, pointing out that the project would connect Central Asian countries to Pakistani seaports through Afghanistan.

He thanked the foreign minister of Uzbekistan and Afghanistan for their support in ensuring the timely signing of the framework agreement.

Uzbekistan and Afghanistan signed an agreement in 2017 to extend a railroad connecting the two countries that would eventually give Uzbekistan a direct link to seaports. Landlocked Uzbekistan’s access to marine shipping is very limited.

DAR MEETS AFGHAN LEADERS

Dar, who also serves as Pakistan’s foreign minister, met his Afghan counterpart Amir Khan Muttaqi at the sidelines of the framework agreement signing to discuss bilateral cooperation and security.

He also met Afghan Prime Minister Muhammad Hassan Akhund to discuss trade, security and other matters between the two countries.

“The two leaders exchanged views on issues of mutual interest, including peace and security, trade and transit cooperation and regional connectivity,” Pakistan’s foreign office said in an earlier statement.

Pakistan Deputy Prime Minister Ishaq Dar meets Afghan Prime Minister Mullah Muhammad Hassan Akhund in Kabul on July 17, 2025, on the sidelines of the signing of the Uzbek-Afghan-Pak railway agreement. (Handout/MOFA)

Talks between the two countries’ officials took place amid a tentative thaw in Pakistan-Afghanistan relations, which have been strained in recent years due to a surge in militancy in Pakistan that Islamabad blames on Afghan-based insurgent groups. Kabul denies the allegations.

Efforts to repair the fractured ties between Islamabad and Kabul gained momentum during a China-hosted trilateral dialogue in Beijing in May between the foreign ministers of Pakistan, Afghanistan and China.

Islamabad and Kabul agreed in principle to send ambassadors to each other’s countries as soon as possible, Chinese Foreign Minister Wang Yi had announced after the summit.

The upcoming signing of the UAP railway pact, a long-discussed infrastructure project championed by all three governments, is also being seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul.


Pakistan, EU renew GSP+ commitment, discuss counterterror cooperation, Middle East peace efforts

Updated 17 July 2025
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Pakistan, EU renew GSP+ commitment, discuss counterterror cooperation, Middle East peace efforts

  • Pakistan, EU officials hold 10th Political Dialogue in Brussels to discuss bilateral, regional issues
  • Both sides call for resumption of ceasefire in Gaza, improvement in humanitarian situation there 

ISLAMABAD: Senior officials from Islamabad and the European Union on Thursday resolved to continue their engagement under the Generalized Scheme of Preference Plus (GSP+) framework, discussing counterterror collaboration and peace efforts in Gaza, Pakistan’s foreign office said. 

Europe’s GSP+ scheme grants beneficiary countries’ exports duty-free access to the European market in exchange for voluntarily agreeing to implement 27 international core conventions, including those on human and civil rights. In October 2023, the EU unanimously voted to extend GSP+ status until 2027 for developing countries, including Pakistan.

Olof Skoog, the deputy secretary general of the European External Action Service and Pakistan’s Foreign Secretary Amna Baloch led the delegations from both sides, as they held the 10th Political Dialogue in Brussels on Thursday. 

“The two sides reiterated their resolve to continue close engagement under the GSP+ framework,” Pakistan’s foreign office said.

“They acknowledged the meaningful cooperation on various aspects of migration, aiming to hold the third Comprehensive Migration and Mobility Dialogue later in 2025.”

The statement said both sides also discussed views on regional and global issues, stressing the importance of multifaceted cooperation on security matters, including counterterrorism and counter-narcotics.

Both delegations condemned all forms of “terrorism,” the foreign office said. 

Brussels and Islamabad discussed the Ukraine conflict and the Kashmir dispute between India and Pakistan as well, pushing for dialogue. 

“Both sides agreed on the need for efforts based on dialogue and diplomacy in order to solve contentious issues and underscored the importance of upholding international law and the sanctity of international agreements/treaties,” it added. 

The two sides also exchanged views on the evolving situation in the Middle East, where Israel has killed over 57,000 Palestinians in Gaza in military operations since October 2023. 

“They agreed on the urgent need to improve the humanitarian situation in Gaza,” the statement said.

“Both sides called for the resumption of a ceasefire, and expressed support for initiatives that contribute to a just, lasting, and comprehensive peace in Palestine in accordance with the two-state solution.”

Islamabad considers EU a vital trading partner. Pakistan has become the largest beneficiary of the GSP+ trade scheme in recent years, with its businesses increasing their exports to the EU market by 108 percent since the trade scheme was launched in 2014.


Pakistan expresses solidarity as fire at Iraq shopping center kills over 60

Updated 17 July 2025
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Pakistan expresses solidarity as fire at Iraq shopping center kills over 60

  • Iraqi officials say several remain missing after huge fire broke out at Iraq’s Kut city on Wednesday night
  • Prime Minister Shehbaz Sharif prays for speedy recovery of injured, offers condolences to victims’ families

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday expressed solidarity with the people and government of Iraq after a fire erupted at a shopping center in Kut city, killing more than 60 people while others remained missing.

Iraqi officials say at least 61 people have been killed and several remain missing after a huge fire broke out at a hypermarket in eastern Iraq’s Kut city on Wednesday night.

Videos on social media showed flames engulfing a five-story building in Kut overnight, where firefighters were trying to contain the fire. The mall, which had opened only a week earlier, also contained a restaurant and supermarket.

“Deeply saddened by the tragic fire in Al-Kut, Iraq, that has caused tragic loss of lives of innocent people,” the Pakistani premier wrote on social media platform X.

“My heartfelt condolences to the families who lost their loved ones in this tragedy. May the injured recover swiftly. Pakistan stands in solidarity with the people of Iraq in this hour of grief.”

Iraq’s federal cabinet on Thursday announced three days of mourning over the loss of lives. The government has also launched an investigation into the incident, saying that results will be released within 48 hours.

Unregulated buildings have caused tragic fires in Iraq in the past. In July 2021, a blaze at a hospital in Nasiriyah killed over 60.

Subsequent investigations showed the building was fueled by a highly flammable, low-cost type of “sandwich panel” cladding illegal in Iraq.