Pakistan ex-finance chief Dar becomes foreign minister, HBL banker named finance czar 

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This handout photograph taken and released on June 9, 2023 by the Pakistan National Assembly, shows Pakistan's former Finance minister Ishaq Dar presenting the budget 2023-2024 in the national assembly in Islamabad. (AFP/File)
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The photo shows Mr. Muhammad Aurangzeb after officially taking over the responsibility as Finance Minister of Pakistan in Islamabad, Pakistan, on March 11, 2024. (Ministry of Finance)
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Updated 11 March 2024
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Pakistan ex-finance chief Dar becomes foreign minister, HBL banker named finance czar 

  • Ishaq Dar is former four-time finance minister, suggesting a ramped up role for economics in nation’s diplomacy
  • Muhammad Aurangzeb, CEO of HBL bank, takes over when IMF bailout negotiations are at top of national agenda

ISLAMABAD: Pakistan’s former finance minister Ishaq Dar was named on Monday as the country’s foreign minister while Muhammad Aurangzeb, the CEO of Pakistan’s largest bank, was picked as finance minister in the new cabinet. 

Both appointments come at a time when growing economic and security challenges will dominate the nation’s foreign policy.

Dar, 73, a chartered accountant and a seasoned politician, comes from Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) party, which is leading a minority government as part of a ruling coalition. He is also a close relative of, and close aide to, PML-N chief Nawaz Sharif.

The senator is also a previous four-time finance minister, suggesting a ramped up role for economics in the nation’s diplomacy as the country tries to secure another International Monetary Fund Deal and shore up external financing from foreign capitals.

“Economic diplomacy is the need of the hour for sure,” Dar told Reuters.

However, even his political allies have criticized his handling of the economy in his tenure as finance minister in the last coalition set-up, which took over in April 2022 after the removal of former Prime Minister Imran Khan in a parliament vote of confidence.

Inflation spiked as high as 38 percent and interest rates to 22 percent during Dar’s 16-month stint, mostly due to the IMF’s policy requirements.

Dar has defended his actions, saying he had to take tough measures to avert a sovereign default by securing the IMF program, which Khan had scuttled days before leaving his office, an accusation the former cricket-star denies.

However, under Dar, Pakistan struggled for seven months to unlock the remaining tranches of its last $6.5 billion bailout program, and ultimately it took Shehbaz Sharif’s intervention to secure a new last-ditch deal. During that time, Dar regularly criticized the IMF on public platforms in the middle of negotiations. He is best known for favoring market intervention to prop up the Pakistani rupee — something the IMF has warned against.

In his new job, Dar will have to handle delicate relationships, including with China and Gulf countries that are key sources of financing for cash-strapped Pakistan, as well as with Washington.

He also faces prickly neighbors, including arch-rival India, which will go to the polls this year, and Taliban-led Afghanistan, which Pakistan accuses of harboring militants who are increasing attacks on Pakistani soil. The Taliban deny that claim. Dar will have to navigate these challenges in a minority government that will rely on the support of different parties to pass critical legislation, with alliance partner Pakistan Peoples Party saying it would support the government on an issue-to-issue basis.

In the role, he will also likely have to consider the powerful military, which has maintained a huge influence on the country’s foreign policy, although it denies meddling in politics.

“FINANCE MINISTER”

A national election last month resulted in no party holding a majority, after which a coalition alliance elected Shehbaz Sharif as prime minister for a second time to tackle the country’s economic and political crises. 

Sharif has included Muhammad Aurangzeb, chief executive officer of HBL bank, in the cabinet and he will be given the portfolio of finance minister.

“Mr. Muhammad Aurangzeb officially took over the responsibility as Finance Minister of Pakistan after taking oath at the Presidency, today,” the ministry of finance said in a post on X on Monday night.

Aurangzeb was picked over several veterans previously involved in handling the $350 billion economy, including four-time finance minister Ishaq Dar, as the country looks to plot a path out of its economic difficulties.

HBL on Monday informed the Pakistan Stock Exchange of Aurangzeb’s resignation from the bank, in a letter to the bourse.

Aurangzeb was quoted in the statement as saying, “I am excited about the opportunity to serve our country in this new capacity and contribute to the economic growth and development of Pakistan.”

The bank called his stepping down from his position a “remarkable act of national service.”

Pakistan’s current IMF program expires next month, and Sharif has said his government would look to negotiate a new, longer term bailout to keep the country’s economy stable amidst high inflation and external financing requirements.

Aurangzeb does not have a seat in parliament but local laws say he can hold a post of minister for up to six months without one.

Reuters reported that Sharif’s Pakistan Muslim League-Nawaz (PML-N) party planned to give Aurangzeb a Senate seat soon.


Pakistan repels Afghan-based militant incursion amid escalating tensions — security sources

Updated 55 min 39 sec ago
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Pakistan repels Afghan-based militant incursion amid escalating tensions — security sources

  • Sources accuse Afghan Taliban of ‘persistently assisting’ armed militants instead of apprehending them
  • They say no fatalities happened on Pakistan’s side, but over 15 militants and Afghan Taliban were killed

KARACHI: Pakistan’s security forces thwarted an attempted cross-border incursion by militants allegedly facilitated by Afghan Taliban authorities, security sources said on Saturday after Afghanistan’s defense ministry claimed its forces targeted several locations in Pakistan in response to airstrikes earlier this week.
Pakistan has repeatedly accused Kabul of sheltering Tehreek-e-Taliban Pakistan (TTP) militants and has urged Afghan officials not to allow armed factions to use their soil to target neighboring states. Afghan authorities deny these allegations, saying Pakistan’s security challenges are its internal matter.
On Thursday, Afghan authorities reported airstrikes by Pakistan’s military in an eastern border town that they said had killed 46 people. The strikes came days after the TTP claimed responsibility for killing 16 Pakistani soldiers near the Afghan border.
“On the night of December 27-28, 20 to 25 khawarij [TTP militants], using Afghan Taliban border posts, attempted to infiltrate Pakistan at two locations in Kurram and North Waziristan,” Pakistani security sources said. “Pakistani forces acted promptly, thwarting the incursion.”
They reported yet another incursion in the morning, saying it was also repelled.
“In retaliation, khawarij and Afghan Taliban jointly opened unprovoked heavy fire on Pakistani posts,” they added.
Pakistan’s forces responded decisively, reportedly inflicting significant losses on the attackers.
“Initial reports indicate that over 15 khawarij and Afghan Taliban personnel were killed, with many others injured,” the sources said. “Effective counter-fire forced the Afghan Taliban to abandon six posts.”
No fatalities were reported on the Pakistani side, though three soldiers sustained injuries. Security sources also noted Afghanistan’s unwillingness to control TTP elements operating freely on its soil, saying it strained bilateral relations.
“Instead of curbing these terrorist elements, the Afghan Taliban persistently assist them,” the sources maintain. “TTP militants operate with impunity in Afghanistan, using its territory for anti-Pakistan activities.”


Pakistan launches landmark trade route linking China to UAE via Khunjerab Pass

Updated 28 December 2024
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Pakistan launches landmark trade route linking China to UAE via Khunjerab Pass

  • Consignment from China is expected to reach the UAE in 10 days as compared to 30 days via sea-route
  • Traders welcome the development, hoping the arrangement will turn Pakistan into a major hub of trade

KHAPLU, Gilgit-Baltistan: In a first, Pakistan’s National Logistics Corporation (NLC) has launched its maiden multimodal Transports Internationaux Routiers (TIR) transportation, linking China to the United Arab Emirates via the Khunjerab Pass, in a move hailed as a “good omen” for Pakistan’s trade and logistics sectors.
The TIR system, an international customs transit framework, streamlines cross-border trade by enabling goods to move through multiple countries with minimal customs interference.
At over 4,600 meters above sea level, the Khunjerab Pass connects Pakistan’s Gilgit-Baltistan region with China’s Xinjiang province, serving as a strategic gateway for trade between South Asia and Europe.
The pass, situated in the Karakoram Range, has only facilitated bilateral trade in the past, with China primarily importing textiles, agricultural products and daily commodities, while exporting plants and herbs.
“This achievement signifies a major leap forward in the operationalization of the China-Pakistan Economic Corridor (CPEC), utilizing the shortest and most efficient route from China to the Gulf region via Pakistan,” the NLC said in a statement.

This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows officials launching country’s maiden multimodal Transports Internationaux Routiers transportation route at the Khunjerab Pass, Gilgit-Baltistan. (Photo courtesy: NLC)

“This milestone also reflects a significant step toward ensuring year-round functionality of the Khunjerab Pass, a vital gateway for regional trade,” it added.
The NLC said the journey commenced with one of its trucks, laden with electronic equipment, departing from Kashgar, China, en route to the Jebel Ali Port in Dubai. The first stop was at NLC Dry Port in Sost, where a ceremony marked the historic occasion, it added.
“The cargo container, after being transported via NLC trucks from Kashgar to Karachi, will embark on the sea leg of its journey to its final destination at Jebel Ali Port,” the statement informed.

This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows a general view of the Kashi Free Trade Zone in Kashi, Xinjiang. (Photo courtesy: NLC)

The consignment from China is expected to reach the UAE in 10 days as compared to 30 days via sea-route.
Traders and local business leaders associated with the Khunjerab Pass welcomed the launch.
“This is a good omen for Pakistan’s economy,” Imran Ali, a former president of the Gilgit-Baltistan Chambers of Commerce, told Arab News over the phone, adding it would particularly benefit the traders in the region and the local community.
“Pakistan will become a major trade hub as China gets access to the Middle East through this route,” he continued. “The economic activities in Gilgit-Baltistan and Gwadar will get a boost and unemployment will end in the region.”
Muhammad Iqbal, president of the Gilgit-Baltistan Importers and Exporters Association, agreed with him.

This handout photograph, released by Pakistan’s National Logistics Corporation on December 28, 2024, shows a Pakistani truck crossing the checkpoint at the Kashi Free Trade Zone in Kashi, Xinjiang. (Photo courtesy: NLC)

“The launching of TIR between China and the Middle East through Pakistan will change the fate of the country,” he told Arab News. “The country will make more revenue and the economic conditions of traders and locals will improve.”
According to the Gilgit-Baltistan Collectorate of Customs, a record revenue of Rs9.5 billion ($34.87 million) was collected from the Sost Dry Port during the first two quarters of the fiscal year 2024-25, compared to Rs6.5 billion ($23.4 million) during the same period last year.
Additionally, the anti-smuggling team confiscated goods worth Rs600 million ($2.16 million).


Rain washes out first session on Day 3 of first test between South Africa and Pakistan

Updated 28 December 2024
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Rain washes out first session on Day 3 of first test between South Africa and Pakistan

  • South Africa wants a victory for a place in next year’s World Test Championship final
  • The host team claimed a 90-run lead after Markram and Bosch scored half centuries

CENTURION, South Africa: Rain delayed the start of the third day’s play in the first cricket test between South Africa and Pakistan with no play possible before lunch on Saturday.
The entire first session was washed out at SuperSport Park with Pakistan scheduled to resume its second innings at 88-3 – still trailing South Africa by two runs.
South Africa has plenty of time left to press its bid for a place in next year’s World Test Championship (WTC) final.
The home team needs to win one of the two test matches against Pakistan for a guaranteed place in next June’s WTC final at Lord’s.
South Africa claimed a 90-run first innings lead on the back of half centuries from Aiden Markram and debutant Corbin Bosch, who smashed an unbeaten 81 on a dream debut.
Bosch's scintillating knock, which featured 15 fours, was the highest score by a No. 9 batter on debut in test history.
Pakistan had been bowled out for 211 as Bosch claimed a wicket with his first ball and finished with impressive figures of 4-63.
Paceman Dane Paterson took 5-61 on a wicket where both teams have packed their line-ups with four fast bowlers each, going into the game without a specialist spinner.


Afghanistan says its forces targeted ‘several points’ in Pakistan in retaliation for this week’s airstrikes

Updated 28 December 2024
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Afghanistan says its forces targeted ‘several points’ in Pakistan in retaliation for this week’s airstrikes

  • The skirmishes mark the latest spike in hostilities on the frontier between Afghanistan and Pakistan
  • A Pakistani defense source says fighting along the border led to ‘heavy casualties’ on the Afghan side

KARACHI: Afghan Taliban forces targeted “several points” in neighboring Pakistan in retaliation for Pakistani airstrikes this week, Afghanistan’s defense ministry said on Saturday, marking the latest surge in hostilities along the disputed frontier between the two nations.
The Durand Line, established as the boundary between Afghanistan and British India in 1893, has been a persistent source of contention, with no Afghan government ever recognizing it as an international border. Tensions along this frontier further escalated since the Taliban takeover of Kabul in 2021, further straining relations between the two countries.
The Afghan defense ministry statement did not mention Pakistan, but said the strikes were conducted “beyond the assumptive lines,” an expression used by the authorities in Kabul to refer to the country’s border with Pakistan.
A Pakistani security source acknowledged the attack, saying the skirmishes had injured three soldiers and resulted in “heavy casualties” on the Afghan side.
“Several points beyond the assumptive lines where the attacks in Afghanistan were organized and coordinated from wicked elements’ hideaways, centers and supporters; were targeted in retaliation from the southern side of the country,” the Afghan defense ministry said on X.
The Pakistani security source said around 20-25 members of “Fitna Al-Khwarij,” a reference to the banned Tehreek-e-Taliban Pakistan (TTP), attempted to infiltrate Pakistan’s border in Kurram and North Waziristan districts while “using border posts of the Afghan Taliban.”
The TTP leadership is reportedly based in Afghanistan. Pakistan has frequently accused the Taliban government of facilitating attacks by the militant network against its security forces and civilians, urging Kabul to prevent its territory from being used by such armed factions.
The Afghan Taliban, however, deny these allegations, asserting that Pakistan’s security problems are internal matters that require attention from the Islamabad government.
“Upon failure of the infiltration attempt, TTP members and the Afghan Taliban [forces] opened fire on Pakistani posts using heavy weapons early morning on Dec. 28,” the Pakistani security source said. “Pakistani forces retaliated to this unprovoked fire and there were reports of deaths of more than 15 TTP members and Afghan Taliban forces.”
The border skirmish followed Pakistan’s reported airstrikes in an eastern town of Afghanistan, which targeted alleged TTP hideouts, amid allegations by Pakistani officials of cross-border militant attacks.
Afghan authorities claimed the victims of the strikes included residents from Pakistan’s border regions, who were uprooted during military operations against TTP fighters in recent years, with the United Nations (UN) expressing concern over civilian casualties and urging an investigation.
The Pakistan military, however, pledged to dismantle “terrorist networks” to safeguard its citizens, without acknowledging the airstrikes.


Pakistan weekly inflation increases for third week in a row

Updated 28 December 2024
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Pakistan weekly inflation increases for third week in a row

  • Pakistan’s annual consumer inflation slowed to 4.9 percent in November, lower than the government’s forecast
  • Major increase observed in prices of chicken, tomatoes, sugar, vegetable ghee, liquefied petroleum gas and soap

ISLAMABAD: Short-term inflation, measured by the Sensitive Price Index (SPI), has risen to 5.08 percent in Pakistan on a year-on-year basis, the country’s statistics bureau said this week, with an increase observed in prices of edible items.
The SPI, which comprises 51 essential items collected from 50 markets in 17 cities, is computed on a weekly basis to assess the price movement of essential commodities at shorter interval of time so as to review the price situation in the country.
The SPI for the week ending on Dec. 26 increased by 0.80 percent as compared to the previous week, according to the Pakistan Bureau of Statistics (PBS). This is the third time short-term has increased in the South Asian country. Weekly inflation last decreased by 0.34 percent in Pakistan in the week ending on Dec. 5.
“During the week, out of 51 items, prices of 17 (33.33 percent) items increased, 10 (19.61 percent) items decreased and 24 (47.06 percent) items remained stable,” it said in a report.
Major increase was observed in prices of chicken (22.47 percent), tomatoes (20.75 percent), sugar (2.19 percent), vegetable ghee 1 kilogram (1.17 percent), firewood (0.95 percent), cooking oil 5 liter (0.74 percent), cooked beef and mustard oil (0.69 percent) each, liquefied petroleum gas (0.18 percent) and washing soap (0.09 percent).
The items that recorded a decrease in prices included onions (8.13 percent), potatoes (2.38 percent), bananas (0.68 percent), rice (0.50 percent) and eggs (0.30 percent).
Pakistan’s annual consumer inflation slowed to 4.9 percent in November, lower than the government’s forecast, according to the PBS. The finance ministry had projected inflation would slow to 5.8 percent-6.8 percent in November and ease to 5.6 percent-6.5 percent in December.
Consumer inflation cooled from 7.2 percent in October, a sharp drop from a multi-decade high of nearly 40 percent in May 2023.