Pakistan bows out of US-led democracy summit, says will engage with Washington bilaterally

This file photo, taken on February 19, 2015, shows a State Department contractor adjusting Pakistan national flag before a meeting at the State Department in Washington. (Photo courtesy: REUTERS/File)
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Updated 28 March 2023
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Pakistan bows out of US-led democracy summit, says will engage with Washington bilaterally

  • Pakistan did not attend last year’s democracy summit reportedly over Biden’s cold shoulder to then PM Khan
  • Biden to co-host Summit for Democracy with Costa Rica, Netherlands, Korea and Zambia from March 29-30

ISLAMABAD: Pakistan’s foreign office on Tuesday confirmed that the South Asian country will not attend a Washington-led democracy summit, adding that it would instead “engage bilaterally” with the US and other co-hosts of the summit, which kicks off today.

US President Joe Biden will co-host the second “Summit for Democracy” with the governments of Costa Rica, Netherlands, Republic of Korea, and Republic of Zambia, on March 29-30. The second summit “will assemble world leaders in a virtual, plenary format, followed by gatherings in each of our countries with representatives from government, civil society, and the private sector,” according to the US State Department.

Pakistan also did not participate in last year’s US democracy summit as ties between Washington and Islamabad soured after the Taliban takeover of Afghanistan. US officials blamed Pakistan for sheltering Taliban fighters, an allegation that Islamabad vehemently denied. Ties between the two nations were further strained when US President Joe Biden refused to engage with former Pakistani prime minister Imran Khan, reportedly causing Islamabad to reject the summit invite.

This year, however, the U.S. vexed China by snubbing it and instead, inviting Beijing's longstanding nemesis Taiwan to the democracy summit. China considers Taiwan, a self-ruled island, an inalienable part of its territory and has not ruled out the possible use of force to “reunify” the country. Pakistan, historically a close ally of Washington, has become increasingly close to China, which has provided billions in loans and is Islamabad’s largest single creditor. Pakistan faces a crippling economic crisis, with decades-high inflation and critically low foreign exchange reserves depleted by continued debt repayment obligations.

In a press statement, Pakistan’s foreign office spokesperson thanked Washington for the summit invite, adding that its friendship with the US had “widened and expanded substantially” under the Biden administration.

“Pakistan has not been part of the Summit process, that commenced in 2021 and required countries to make certain national commitments.” the foreign office spokesperson said. “The Summit process is now at an advanced stage and therefore, Pakistan would engage bilaterally with the United States and co-hosts of the Summit to promote and strengthen democratic principles and values and work toward advancing human rights and the fight against corruption.”

The decision by Pakistan comes at an important time for Islamabad as it desperately seeks to revive a stalled $6.5 billion loan program with the International Monetary Fund (IMF) to escape a balance of payments crisis. Pakistan also seeks closer economic cooperation and an improvement in its ties with the US as it grapples with an economic crisis that has seen its foreign exchange reserves dwindle and its national currency plummet to historic lows against the US dollar in recent months.


Pakistan says armed forces ‘fully alert’ amid Israel’s ongoing conflict with Iran

Updated 16 June 2025
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Pakistan says armed forces ‘fully alert’ amid Israel’s ongoing conflict with Iran

  • Israel attacked Iran’s nuclear facilities and military leadership last week, raising tensions in Middle East
  • Deputy PM Ishaq Dar assures lawmakers Pakistan’s nuclear facilities remain safe amid ongoing conflict

ISLAMABAD: Deputy Prime Minister Ishaq Dar said on Monday that Pakistan’s armed forces were “fully alert” amid Israel’s ongoing military conflict with Iran, vowing to safeguard the country’s nuclear assets. 

Dar’s statement came as the military conflict between Iran and Israel entered its fourth day on Monday, with no signs of the two sides letting up. The worst fighting between the regional foes began late Friday when Israel carried out strikes against Iran’s nuclear facilities and military leadership. So far, Iran says 224 people have been killed due to Israeli strikes while Tel Aviv has said at least 18 people have been killed by Iran. 

During a senate session, opposition lawmaker Shibli Faraz questioned whether Pakistan’s nuclear facilities were safe in light of Israel’s recent strikes against Iran, urging the government not to be complacent in safeguarding them. 

“Israel dare not look to Pakistan,” Dar said in response. “By the grace of god, Pakistan has the strength to respond to a brick with a stone, to any mala fide [intentions].

“I assure my brother the armed forces of Pakistan are fully alert. As they were alert during the India-Pakistan conflict,” he added. 

The deputy prime minister was referring to India and Pakistan’s military conflict last month. The two countries pounded each other with missiles, drone strikes, fighter jets and artillery fire in a military conflict that lasted for four days before Washington brokered a ceasefire on May 10.

Dar said the Pakistani nation had developed its nuclear and missile defense system at a great cost and would protect them. 

“These are the nation’s assets, these are the nation’s trust. This is the trust for the coming generation,” he said. “It is our responsibility to safeguard it unitedly, which we will do, are doing and will do it together.”

Israel sees Iran’s nuclear program as a threat to its existence. It said its strikes on Friday were designed to avert the last steps to the production of an Iranian nuclear weapon.

Tehran insists its nuclear program is entirely civilian and it does not seek an atomic bomb. The UN nuclear watchdog, however, reported Iran last week as violating obligations under the global non-proliferation treaty.

Pakistan has criticized Israel in strong words and repeatedly said Iran has the right to retaliate under the UN Charter. Islamabad has also vowed to offer diplomatic support to Iran at international forums.


Pakistani delegation wraps up diplomatic tour to convince Western capitals after India conflict

Updated 16 June 2025
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Pakistani delegation wraps up diplomatic tour to convince Western capitals after India conflict

  • Bilawal Bhutto Zardari-led delegation urges Europe to steer region ‘away from the brink’ of war
  • Before Brussels, delegation also visited New York, Washington and London on diplomatic blitz

ISLAMABAD: A Pakistani delegation formed by Prime Minister Shehbaz Sharif to present Islamabad’s perspective on its recent conflict with India wrapped up its Brussels tour on Monday, the chief of the mission said in a statement, calling on European leaders to help steer the region back “from the brink” of war. 

Former foreign minister Bilawal Bhutto Zardari was heading the high-powered Pakistani delegation that visited the United States and the United Kingdom before arriving in Brussels last week. 

India and Pakistan both dispatched delegations of diplomats and parliamentarians to world capitals. Both Islamabad and New Delhi engaged the international community following their days-long armed conflict in May, which ended in a fragile ceasefire on May 10 brokered by Washington. 

During his visit to Brussels, the delegation met the European Union parliament, the EU Commission, the Belgian leadership, members of international think tanks and foreign media. Bhutto Zardari pushed for dialogue and counterterrorism cooperation with India during the tour, warning of the dangers of a nuclear-armed conflict between the two nations. 

“Europe, as a champion of the rules-based international order and international law, must help steer the region back from the brink,” Bhutto Zardari wrote on social media platform X. 

The former foreign minister highlighted that during his visit to Brussels, the Pakistani delegation called for restraint and dialogue after a “fragile ceasefire.” He said the delegation had also warned of the lowest-ever conflict threshold in South Asia and India’s” weaponization” of water and global mechanisms. 

Bhutto Zardari in recent weeks severely criticized India’s move to suspend a decades-old water-sharing treaty with Pakistan in April. The Indus Waters Treaty of 1960 governs the usage of the Indus river system. The accord has not been revived despite the rivals agreeing on a ceasefire on May 10.

Islamabad had said after India suspended the Indus Waters Treaty that it considered any attempt to stop or divert the flow of water belonging to Pakistan to be an “act of war.”

About 80 percent of Pakistani farms depend on the Indus system, as do nearly all hydropower projects serving the country of some 250 million.

Former information minister Sherry Rehman, a prominent member of the delegation, said some members would head back to Pakistan while others would next visit the French city of Strasbourg. 

“When the world needs diplomacy, multilateralism and the power of intl law to return to its centerstage, the rules that support order are under strain like never before,” she wrote on social media platform X.


Pakistan holds key rate at 11 percent as Mideast conflict overshadows growth push

Updated 16 June 2025
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Pakistan holds key rate at 11 percent as Mideast conflict overshadows growth push

  • Central bank maintains cautious stance as heightened geopolitical tensions, volatile global oil prices add new inflation risks 
  • Bank paused its easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22 percent

ISLAMABAD: Pakistan’s central bank kept its key policy rate unchanged at 11 percent on Monday, maintaining a cautious stance as heightened geopolitical tensions and volatile global oil prices add new risks to inflation and the fragile external sector.

A Reuters poll released earlier on Monday had shown analysts revising their expectations for a rate cut in light of Israel’s military strikes on Iran that began on Friday and have since intensified, pushing up global commodity prices.

“The [Monetary Policy] Committee noted some potential risks to the external sector amidst the sustained widening in the trade deficit and weak financial inflows. Moreover, some of the proposed FY26 budgetary measures may further widen the trade deficit by increasing imports,” the central bank said, announcing its decision to leave the rate unchanged.

“In this regard, the Committee deemed today’s decision appropriate to sustain the macroeconomic and price stability.” 

Inflation in Pakistan has slowed markedly since peaking at around 40 percent in May 2023. However, last month it rose to 3.5 percent year-on-year, above the finance ministry’s projection of up to 2 percent, partly due to the fading of favorable base effects. The central bank projects average inflation between 5.5 percent and 7.5 percent for the fiscal year ending this month.

The bank paused its easing cycle in March, following cumulative cuts totaling 1,000 basis points from a record high of 22 percent, and resumed it with a 100-basis-point reduction in May.

Monday’s meeting came days after the government presented a tight annual budget, which increased defense spending by 20 percent but reduced overall expenditure by 7 percent. It projects GDP growth at 4.2 percent for the next fiscal year, up from a provisional estimate of 2.7 percent for the current year.

The MPC noted that despite the widening trade deficit, the current account remained broadly balanced in April, and foreign exchange reserves rose to $11.7 billion as of June 6 after the completion of the first review under the International Monetary Fund’s Extended Fund Facility.

Revised budget estimates show the primary surplus at 2.2 percent of GDP for FY25, up from 0.9 percent last year, with a higher target of 2.4 percent for the upcoming fiscal year.

Global oil prices have rebounded sharply, driven by the evolving Middle East crisis and some easing of US-China trade tensions, the MPC noted.

“Taking stock of these developments and potential risks, the Committee assessed that the real interest rate remains adequately positive to stabilize inflation within the target range of 5–7 percent,” the statement said.

It added that timely foreign inflows, planned fiscal consolidation, and structural reforms remained essential to maintain macroeconomic stability and achieve sustainable growth.


Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets

Updated 16 June 2025
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Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets

  • Committee to monitor petroleum pricing and supply in response to Israel’s attack on Iran holds inaugural meeting
  • Pakistan relies heavily on imported oil, global price swings can drain its foreign reserves and fuel domestic inflation

KARACHI: Pakistan currently holds adequate stocks of petroleum products and faces no immediate risk of supply disruption, the finance ministry said on Monday, while warning that continued vigilance was needed as Middle East tensions pushed oil markets into fresh volatility.

The statement came after the inaugural meeting of a committee formed by Prime Minister Shehbaz Sharif last week to monitor petroleum pricing and supply in response to an ongoing military confrontation between Israel and Iran. 

Oil markets have been volatile amid the escalation, with Brent crude prices jumping about 7 percent last Friday to near $75 per barrel, but edging down on Monday, as renewed military strikes by both nations over the weekend left oil production and export facilities unaffected.

Concern is focused on potential disruptions in the Strait of Hormuz, through which roughly one‑fifth of global oil transits, and weak supply growth from Iran, which produces about 3.3 million barrels per day. Analysts caution any sustained spike could drive up global freight rates, insurance premiums and inflation, particularly in energy‑importing countries like Pakistan.

“The committee expressed satisfaction that Pakistan currently holds adequate stocks of petroleum products and there is no immediate risk of supply disruption. Nonetheless, members emphasized the need for continued vigilance given the rapidly changing regional context,” the finance ministry said after the first meeting of the committee, chaired by Finance Minister Muhammad Aurangzeb.

The ministry added that to ensure timely response and effective coordination, a working group would monitor developments on a daily basis, and the full committee would meet weekly to review the situation and submit recommendations to the prime minister. 

“The Government of Pakistan remains fully committed to maintaining energy security, stabilizing markets, and protecting the national interest during this critical time,” the statement added.

The committee has been entrusted with monitoring the forward/futures prices of petroleum products and the predictability of supply chains, determining the foreign reserve implications of price volatility in the short and medium term, suggesting a plan, if and when required, to ensure there were no supply disruptions and the market was well supplied, and carrying out a detailed analysis of the fiscal impact in the event of a protracted conflict.

Pakistan relies heavily on imported oil, and any sustained spike in prices could widen its current account deficit and push inflation higher at a time when the country is struggling with low foreign reserves and slow growth.

The Israel-Iran conflict started on Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict. Over 220, mostly civilians have been killed in Iran so far, while Israel has reported 23 deaths in retaliatory strikes by Tehran.

Pakistan and Iran share a 909 kilometer (565 mile) long international boundary that separates Iran’s southeastern Sistan-Baluchestan province from Pakistan’s southwestern Balochistan province. 

“Israel-Iran conflict presents complex challenges for Pakistan as rising oil prices may increase import costs and inflation, influencing monetary policy and growth, while disruptions to key routes like the Strait of Hormuz can affect energy supplies and critical projects,” Khaqan Najeeb, an economist and former finance ministry adviser, told Arab News last week. 

“It can potentially affect consumer purchasing power and production costs ... Possible disruptions to shipping routes and higher freight charges might result in delays to imports and exports, thereby exerting additional pressure on Pakistan’s external sector.”


Rain predicted in parts of Punjab in next 24 hours as heatwave eases

Updated 16 June 2025
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Rain predicted in parts of Punjab in next 24 hours as heatwave eases

  • Met Office said on June 10 heatwave in several parts of the country was expected to continue well into middle of the month
  • Heat wave has begun to subside with rainfall in many areas of Punjab in the last 24 hours, disaster management officials say

ISLAMABAD: Light rain is forecast in several divisions of Pakistan’s Punjab province over the next 24 hours, provincial disaster management officials said on Monday, as a prolonged heat wave begins to ease in some areas.

The Pakistan Meteorological Department (PMD) said on June 10 an ongoing heatwave in several parts of the country was expected to continue well into the middle of the month, with temperatures soaring above normal, disrupting daily life and raising health concerns.

However, the heat wave has begun to subside, a spokesperson for the Provincial Disaster Management Authority (PDMA) said in a situation report, and in the past 24 hours, Bahawalnagar recorded 8 millimeters of rain, Sahiwal 3 mm, and Toba Tek Singh up to 2 mm.

Rainfall was also reported in Multan, Sialkot, Jhang, Kasur, Faisalabad and Rawalpindi districts.

“Rain is predicted in Lahore, Rawalpindi, Faisalabad, Multan, Bahawalpur, Sargodha, Gujranwala, D.G. Khan, and Sahiwal divisions in the next 24 hours,” the PDMA spokesperson said.

Five people were injured in a roof collapse caused by rain in Kasur district in the last 24 hours, the PDMA confirmed. 

PDMA Director General Irfan Ali Kathia “instructed to provide the best medical assistance to the injured” and urged residents to exercise caution during unstable weather.

“Citizens are requested to take precautionary measures in bad weather conditions,” Kathia said in the statement. “Stay in safe places in bad weather conditions. Never go out under the open sky during thunderstorms.”

Pakistan ranks among the top ten countries most vulnerable to climate change and has faced increasingly frequent extreme weather events in recent years, including deadly heat waves and floods.

Temperatures in the upper parts of the country including parts of Punjab, Islamabad, northwestern Khyber Pakhtunkhwa and the northern regions of Kashmir and Gilgit-Baltistan remained 5°C to 7°C above normal this past week. Temperatures in the southern Sindh, eastern Punjab and southwestern Balochistan provinces stayed 4°C to 6°C above normal.