Pakistan will continue to meet international financial obligations, finance minister assures US delegation

Robert Kaproth (L), Deputy Assistant Secretary of the US Department of the Treasury for Asia meeting the Federal Finance Minister Senator Mohammad Ishaq Dar on January 25, 2023, in Islamabad, Pakistan. (Photo courtesy: @FinMinistryPak/Twitter)
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Updated 26 January 2023
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Pakistan will continue to meet international financial obligations, finance minister assures US delegation

  • Ishaq holds a meeting with US treasury department officials, apprise them on the country’s economic outlook
  • A US official indicated earlier this week Pakistan was free to benefit from discounted Russian energy supplies

ISLAMABAD: Pakistan’s finance minister Ishaq Dar told a visiting United States delegation on Wednesday the government was doing it best to put the country’s economy on a positive trajectory and would continue to fulfil its international financial obligations.

The delegation was led by the deputy assistant secretary of the US Department of Treasury, Robert Kaproth, and included macroeconomists and other US officials.

Pakistan is facing huge economic challenges with a mounting current account deficit, depleting foreign exchange reserves and depreciating national currency. The country has also been reeling from last year’s devastating floods that caused damages of more than $30 billion while striving to generate money from friendly nations and international lending agencies.

Dar welcomed Kaproth and his team at the Finance Division in Islamabad and briefed them on the country’s overall economic outlook. He maintained the government had inherited a weak economy and was trying to reform energy sector and capital market to achieve growth and development.

“The finance minister apprised them on the economic priorities of the government to fix the economy to the right path while fulfilling its international obligations,” said a statement issued by his office after the meeting.

Dar also told the US team about damages caused by the recent floods in Pakistan and how they had impacted the country’s economy. He added the government was handling “all challenges with complete commitment.”

The finance ministry statement said the US official expressed confidence in the policies and programs of the government to bring about economic and financial stability in Pakistan.

He also extended his country’s support and cooperation to the government to deal with the prevailing economic challenges.

Earlier in the week, US State Department spokesperson Ned Price told a media briefing that Washington had been encouraging countries to benefit from discounted oil offered by Russia while answering a question about Pakistan.

Officials in Islamabad have been trying to reduce the country’s import bill by bringing down its energy costs that stood at about $23 billion in the last fiscal year.

Pakistan has also been seeking US help for the resumption of an International Monetary Fund (IMF) bailout program which requires it to carry out painful economic reforms.
 


Pakistan says three militants killed trying to infiltrating its border with Afghanistan

Updated 23 January 2025
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Pakistan says three militants killed trying to infiltrating its border with Afghanistan

  • Islamabad frequently accuses Afghanistan of sheltering, supporting militant groups that launch cross-border attacks
  • Afghan officials deny state complicity, insisting Pakistan’s security issues are an internal matter of Islamabad

ISLAMABAD: Pakistani security forces have killed six militants attempting to enter the country through its border with Afghanistan in the southwestern Balochistan province, the Pakistan military said on Thursday.
Islamabad frequently accuses neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. The Taliban government in Kabul says it does not allow Afghan soil to be used by militants, insisting that Pakistan’s security issues are an internal matter of Islamabad.
In the latest incident, the Pakistan army said security forces had picked up on the movement of a group of militants who were attempting to infiltrate the Pakistan-Afghanistan border on the night between Jan 22. and 23 in Balochistan’s Zhob District. Six militants were killed, it said, and a large quantity of weapons, ammunition and explosives was recovered.
“Pakistan has consistently been asking Interim Afghan Government to ensure effective border management on their side of the border,” the army said. “Interim Afghan Government is expected to fulfill its obligations and deny the use of Afghan soil by Khwarij for perpetuating acts of terrorism against Pakistan.”
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have frequently targeted Pakistani forces in the northwestern Khyber Pakhtunkhwa province. The group also has some presence in Balochistan, the site of a low-level insurgency for decades by separatists fighting for the province’s independence. 
On Jan. 19, Pakistani security forces killed five militants as they tried to infiltrate Pakistan’s border in Zhob district.


No talks with India on resumption of trade, Pakistan foreign office says

Updated 23 January 2025
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No talks with India on resumption of trade, Pakistan foreign office says

  • In 2019, Indian PM Modi withdrew Indian-administered Kashmir’s autonomy to tighten grip over the territory
  • Move provoked outrage in Pakistan and the downgrading of diplomatic ties and suspension of bilateral trade

KARACHI: The Pakistani Foreign Office said on Thursday Islamabad and New Delhi were not holding talks to resume trade, suspended in 2019 when India revoked the special status of the part of Kashmir that it controls and split the region into two federally administered territories.
The disputed Himalayan region is claimed in full, though ruled in part by both India and Pakistan since their independence from Britain in 1947, with the nuclear-armed neighbors having fought two of their three wars over the territory.
In 2019, Indian Prime Minister Narendra Modi withdrew Indian-administered Kashmir’s autonomy in order to tighten his grip over the territory, provoking outrage in Pakistan and the downgrading of diplomatic ties and suspension of bilateral trade.
Speaking to reporters at the Indian embassy in Washington this week, Indian Foreign Minister Dr. Subrahmanyam Jaishankar said no talks on trade resumption had been held between his country and Pakistan.
“Pakistan decided to suspend bilateral trade in response to India’s illegal and unilateral actions of 5 August 2019 relating to ... Kashmir,” Shafqat Ali Khan, the spokesperson for Pakistan’s Ministry of Foreign Affairs, told Arab News when asked to respond to the Indian minister’s comments. 
“High level engagement between Pakistan and India remains suspended at the moment. In that backdrop, both sides are not holding talks on resumption of trade.”
Khan said the volume of bilateral trade between Pakistan and India stood at $1.907 billion in the financial year 2018-19. He said India had in 2019 withdrawn the Most-Favored Nation status granted to Pakistan and imposed 200 percent duty on all Pakistani items, “posing a serious setback to Pakistan’s exports.”
Speaking on Wednesday, Jaishankar said it was Pakistan that had suspended trade.
“Their [Pakistan] government took a decision in 2019 not to conduct trade with India, that was from their side,” Jaishankar said. 
“Our concern regarding this issue from the beginning was that we should get MFN status. We used to give MFN status to Pakistan, they didn’t give [it] to us.”
For decades, the armies of India and Pakistan have faced off over the the Line of Control (LoC), a UN-monitored ceasefire line agreed in 1972, that divides the areas each administers.
The foes fought a 1999 battle along the LoC that some analysts described as an undeclared war. Their forces exchanged regular gunfire over the LoC until a truce in late 2003, which has largely held since.


PM launches World Bank’s $20 billion Country Partnership Framework for Pakistan

Updated 23 January 2025
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PM launches World Bank’s $20 billion Country Partnership Framework for Pakistan

  • 10-year-plan will focus on development issues like impact of climate change and boosting private-sector growth
  • Last year, Pakistan secured $7 billion IMF loan deal though Sharif has vowed to reduce dependence on foreign loans

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday launched the World Bank’s Country Partnership Framework (CPF) for Pakistan, a plan to focus $20 billion in loans to the cash-strapped nation over the coming decade on development issues like the impact of climate change and boosting private-sector growth.
Pakistan in 2023 nearly defaulted on the payment of foreign debts when the International Monetary Fund rescued it by agreeing to a $3 billion bailout to Pakistan. Last year, Islamabad secured a new $7 billion loan deal from the IMF. Since then, the country’s economy has started improving with weekly inflation coming down from 27 percent in 2023 to 1.8 percent earlier this month. Sharif has vowed to reduce dependence on foreign loans in the coming years.
The World Bank’s lending for Pakistan will start in 2026 and focus on six outcomes: improving education quality, tackling child stunting, boosting climate resilience, enhancing energy efficiency, fostering inclusive development and increasing private investment.
“Together, this partnership fosters a unified and focused vision for your county around six outcomes with clear, tangible and ambitious 10-year targets,” Martin Raiser, the World Bank vice president for South Asia, said in an address at the launch ceremony of the loan program. 

World Bank Vice President for South Asia Martin Raiser (right) presents a copy of booklet of World Bank’s Country Partnership Framework for Pakistan to Prime Minister Shehbaz Sharif during the launching ceremony in Islamabad on January 23, 2025. (Photo courtesy: PMO)

 “We hope that the CPF will serve as an anchor for this engagement to keep us on the right track. Partnerships will equally be critical. More resources will be needed to have the impact at the scale that we wish to achieve and this will require close collaboration with all the development partners.”
Speaking at the ceremony, PM Sharif said the CPF was a “vision to transform Pakistan’s economy, building climate resilient projects, alleviating poverty and unemployment and promoting digitization, agriculture and IT led initiatives.”
Separately, Raiser met Ahad Cheema, Pakistani minister for economic affairs, to discuss in detail the framework’s next steps and its implementation. 
“The two leaders also discussed the need to address key challenges in project implementation, such as land acquisition, project start-up delays, and ensuring compliance with social safeguards,” Cheema’s office said in a statement.
“Cheema stressed that effective coordination between the World Bank and other development partners, as well as streamlined approval processes, would be essential to overcoming these hurdles.”
Cheema also called on the World Bank to enhance Pakistan’s allocation of concessional resources, especially in support of climate change mitigation and foreign debt management.


Afghans in Pakistan awaiting US resettlement feel betrayal after Trump order

Updated 23 January 2025
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Afghans in Pakistan awaiting US resettlement feel betrayal after Trump order

  • Nearly 1,660 Afghans cleared by US government to resettle are having flights canceled 
  • President Trump on inauguration day passed an order suspending US refugee programs

ISLAMABAD: A decision by President Donald Trump’s administration to halt visa processing for refugees has caused uncertainty and shock at an English school for Afghans in Islamabad who are awaiting resettlement in the United States.
Normally enthusiastic students were quiet or crying in class after the news broke on Tuesday, said Sayed Hasseb Ullah, a 20-year-old teacher whose application for resettlement in the US is in process.
Some feel betrayed, with many — including those who fled Taliban rule in Afghanistan — having already spent years in limbo.
“It was really a horrible moment for us. We have been waiting for almost three years and there is no hope anymore,” he told Reuters at the school in Pakistan’s capital.
The sudden delay has upended the plans of many Afghans in Pakistan and left them in despair after undergoing extensive vetting and making preparations for new lives in the US

Syed Hasseb Ullah, 20-year-old Afghan citizen and a teacher, who is in the process for resettlement in the US speaks during an interview with Reuters on the outskirts of Islamabad, Pakistan on January 22, 2025. (REUTERS)

In an intermediate language class, about half of which had US visa applications in process, a 16-year-old girl broke down in tears.
“I feel very bad from this news,” she said, unable to focus on her work — practicing a list of English phrases for giving formal presentations that was written on the class whiteboard.
She hopes to enroll in high school in the US after being barred from pursuing her education at school in Afghanistan.
The tutoring academy, which has roughly 300 students, is one of the few spaces available for studying for many Afghans waiting for US visas. They cannot legally work or formally study in Pakistan.
Shawn VanDiver, the founder of #AfghanEvac, the leading coalition of resettlement and veterans groups, said there were 10,000-15,000 Afghans in Pakistan waiting for special immigration visas or resettlement in the US as refugees.
Many have waited for years after being instructed when applying to travel to a third country for processing. For many the only option was Pakistan, which borders Afghanistan but, facing economic and security crises, began deporting tens of thousands of Afghans in 2023.
A spokesperson for Pakistan’s foreign ministry did not immediately respond to request for comment on the US announcement.
FLIGHTS CANCELLED?
Nearly 1,660 Afghans cleared by the US government to resettle in the US, including family members of active-duty US military personnel, are having their flights canceled under the order suspending US refugee programs, Reuters reported on Monday.
One of Hasseb Ullah’s students, Fatima, has no idea whether an official email she received on Jan. 14 — and seen by Reuters — seeking documents to proceed with her family’s travel arrangements for the US is still valid.
The 57-year-old women’s rights and development advocate who worked for years for US-funded organizations in central Daikundi province began learning English a few months ago.
She said she had previously never imagined leaving Afghanistan and that she and many others had trusted the US — which spent two decades leading foreign forces in Afghanistan, backing the now-collapsed government and spending billions of dollars on human rights and development programs.
“You supported us at that time and raised us up so we worked with you and after that you invited us to a third country (for visa processing) and now you are doing something like this,” she said.
In addition to concerns about her own safety following her advocacy work, Fatima is particularly worried about her 15-year-old daughter. She hopes she can enroll in school in the US after years out of high school, and that her 22-year-old daughter can complete her engineering degree.
Many students and teachers said they had contacted UN agencies and the US embassy this week and were sharing any information they could find on the Internet in WhatsApp groups. But there were few clear answers.
The US embassy and State Department did not immediately provide comment in request to a question from Reuters on whether the new order would affect Afghans waiting in Pakistan for visas.
“We have been living here for three years with a hope of going to America to be safe but now when President Donald Trump came ... and told us we will not process these case or maybe we will delay it, indeed you feel betrayed,” Hasseb Ullah said.
“I just wanted to tell them respectfully that we have helped you and now we expect help back from you.”


Pakistan parliament passes controversial bill to amend cybercrime law

Updated 23 January 2025
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Pakistan parliament passes controversial bill to amend cybercrime law

  • Bill proposes Social Media Protection and Regulatory Authority to block illegal online content
  • Disinformation will be punishable by three years in prison and fine of $7,150 under new law

ISLAMABAD: Pakistan's National Assembly on Thursday passed a bill to amend the country’s cybercrime law amid a walkout by opposition parties and journalists who fear the new legislation will be used to censor social media platforms. 
Pakistan adopted the much-criticized Pakistan Electronic Crimes Act (PECA) in 2016, granting sweeping powers to regulators to block private information they deemed illegal. The law provided for up to seven years in prison for “recruiting, funding and planning of terrorism” online. It also allowed “authorized officers” to require anyone to unlock any computer, mobile phone or other device during an investigation.
The government said at the time restrictions under the new law were needed to ensure security against growing threats, such as terrorism, and to crackdown on unauthorized access, electronic fraud and online harassment. However, journalists and rights activists complain that the law has been largely used to go after journalists, bloggers and other people critical of the government and state institutions like the military. 
The new amendment bill now proposes the establishment of the Social Media Protection and Regulatory Authority to perform a range of functions related to social media, including awareness, training, regulation, enlistment and blocking. SMPRA would be able to order the immediate blocking of unlawful content targeting judges, the armed forces, parliament or provincial assemblies or material which promotes and encourages terrorism and other forms of violence against the state or its institutions. The law also makes spreading disinformation a criminal offense punishable by three years in prison and a fine of two million rupees ($7,150).
“Whoever intentionally disseminates, publicly exhibits, or transmits any information through any information system, that he knows or has reason to believe to be false or fake and likely to cause or create a sense of fear, panic or disorder or unrest in general public or society shall be punished with imprisonment which may extend up to three years or with fine which may extend to Rs2m or with both,” a copy of the bill says.
The bill was presented in the National Assembly on Thursday by Federal Minister Rana Tanveer Hussain from the ruling Pakistan Muslim League-Nawaz party of premier Shehbaz Sharif. 
“The bill will not harm but protect working journalists,” Information Minister Ataullah Tarar told reporters after the passage of the bill. “This is the first time the government has defined what social media is. There is already a system in place for print and electronic media and complaints can be registered against them.”
He said “working journalists” should not feel threatened by the bill, which had to be passed because the Federal Investigation Agency, previously responsible for handling cybercrime, “does not have the capacity to handle child pornography or AI deep fake cases.”
Tarar said the government was also aiming to bring social media journalists, including those operating YouTube accounts, under the tax framework.
The operative part of the new bill outlines that the Social Media Protection and Regulatory Authority would have the power to issue directions to a social media platform for the removal or blocking of online content if it was against the ideology of Pakistan, incited the public to violate the law or take the law in own hands with a view to coerce, intimidate or terrorize the public, individuals, groups, communities, government officials and institutions, incited the public to cause damage to governmental or private property or coerced or intimidated the public and thereby prevented them from carrying on their lawful trade and disrupted civic life.
The authority will also crackdown on anyone inciting hatred and contempt on a religious, sectarian or ethnic basis as well as against obscene or pornographic content and deep fakes.  
Rights activists say the new bill is part of a widespread digital crackdown that includes a ban on X since February last year, restrictions on VPN use and the implementation of a national firewall. The government says the measures are not aimed at censorship.