Pakistan mulls engaging international law firm to seek US waivers for Iran gas pipeline — official

An Iranian worker stands in front of a section of a pipeline after the project was launched during a ceremony with presidents of Iran and Pakistan on March 11, 2013 in the Iranian border city of Chah Bahar. (AFP/File)
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Updated 26 March 2024
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Pakistan mulls engaging international law firm to seek US waivers for Iran gas pipeline — official

  • Failed to complete project may force Pakistan to pay a daily penalty of $1 million to Iran starting from January 1, 2015 under the deal
  • Economists say the gas pipeline will help save precious foreign exchange being spent on LNG import, provide cheaper gas to consumers

ISLAMABAD: The Pakistani government is considering to engage an international law firm to explore options to seek the United States (US) sanction waivers to complete a natural gas pipeline project from neighboring Iran, a Pakistani government official said on Tuesday.

The development comes days after US Assistant Secretary of State Donald Lu told a Congressional hearing that President Joe Biden’s administration was working to prevent the Iran-Pakistan gas pipeline project, which the two countries agreed to in 2009.

However, Prime Minister Shehbaz Sharif’s government is planning to convince the US administration through “logical reasons” to secure waivers to complete the project which was essential to fulfil Pakistan’s energy needs.

“We are exploring different options at the moment to see as to how Pakistan could complete the project without facing US sanctions,” an official of the Pakistani energy ministry, who requested anonymity, told Arab News.

“One of the options is to hire an international legal firm like we did in the past to come up with a cogent plan to avoid US sanctions on the project.”

In July 2019, Pakistan hired a French law firm, Gide Loyrette Nouel, to deal with Iranian threat of moving an international court against Islamabad for its failure to execute the project and to find out a way if the project could be completed without attracting US sanctions.

Under an agreement signed between the two countries in 2009, the project was to be completed by December 2014 and would deliver 21.5 million cubic meters (760,000 million cubic feet) of gas per day to Pakistan. It was to be constructed using a segmented approach, with both countries laying down the pipeline on their respective sides of the border.

“Nothing is finalized yet as different legal and diplomatic options are on the cards to go ahead with the project,” the official said. “Definitely, we will be taking this up with the US citing some logical reasons for the project’s importance to Pakistan.”

The project is expected to boost Pakistan’s energy security and strengthen the local industry that can be assured a sustainable and enhanced gas supply. The construction of the pipeline is also expected to catalyze economic activity in Pakistan’s southwestern Balochistan province.

Syed Atif Zafar, chief economist at the Karachi-based Topline Securities brokerage firm, said Pakistan would get relatively cheaper gas as compared to the imported Liquefied natural gas (LNG), if the project was completed.

“The energy shortages would improve besides saving some foreign exchange that we are currently spending on the LNG import,” he told Arab News.

Zafar said if Pakistan failed to complete the project, it would have to pay a daily penalty of $1 million to Iran starting from January 1, 2015 under a penalty clause of the bilateral agreement.

“Pakistan cannot afford this penalty in any way, so we will have to find out a way to complete the project,” he added.

Tahir Abbas, head of research at the Arif Habib Limited securities and brokerage firm, said Pakistan’s total gas demand was around 6,000 million standard cubic feet per day (mmcfd), while the local production was just 3,300 mmcfd, and the country was importing around 1,000 mmcfd of LNG to meet its demand.

“We have been purchasing the LNG at around $12 per mmbtu and if Iran-Pakistan gas pipeline project is completed, we can get the gas at around $8 per mmbtu,” Abbas told Arab News.

“The IP project will help us save a lot of precious foreign exchange, besides supplying cheaper gas to industrial and residential consumers.”


Pakistan to restrict Iraq pilgrimages to organized groups from 2026, no solo travel allowed 

Updated 14 July 2025
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Pakistan to restrict Iraq pilgrimages to organized groups from 2026, no solo travel allowed 

  • The announcement comes after a conference of Iran, Iraq and Pakistan interior ministers in Tehran
  • Thousands of Pakistanis travel annually to Iran and Iraq, with some of them staying behind illegally

ISLAMABAD: Pakistani Shiite pilgrims will not be able to individually travel to Iraq from next year to visit holy sites, the country’s interior minister announced on Monday, following his meeting with counterparts from Iran and Iraq.

Naqvi said this after attending a tri-nation conference, requested by Islamabad, in Tehran to discuss issues relating to thousands of Pakistani Shiite Muslims, who travel annually to Iran and Iraq.

The conference concluded with an agreement to establish a joint working group to oversee coordination and operational matters, ensuring safe and seamless travel of the pilgrims to the two countries.

“From January 1, 2026, we will not be allowing any Pakistani to leave for Iraq without zaireen [pilgrims] group organizer, which means that we will register people who will be allowed to take the groups to Iraq,” Naqvi said in televised comments after the conference.

Last month, Pakistan evacuated over 260 nationals from Iraq and another 450 Pakistanis who had been stranded in Iran during the Tehran-Israeli conflict, according to the country’s foreign ministry. There was no confirmation of the number of evacuees who had traveled legally and those who had been staying in the two countries illegally.

The group organizers will be bound to bring back all pilgrims going with them, according to the Pakistani interior minister. The move is aimed at discouraging overstay of Pakistani pilgrims in Iraq.

“The people who are overstaying there, the people who have started working there, we need to stop this,” Naqvi said, adding they would need support from Iran and Iraq to implement the decision.


Pakistan joins SCO foreign ministers’ summit as Delhi-Islamabad tensions simmer

Updated 14 July 2025
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Pakistan joins SCO foreign ministers’ summit as Delhi-Islamabad tensions simmer

  • Regional tensions, particularly between India and Pakistan, simmer after New Delhi’s refusal to sign a recent SCO joint statement
  • New Delhi said the SCO statement was ‘pro-Pakistan’ in not mentioning an April attack on tourists in Indian-administered Kashmir

ISLAMABAD: Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, has arrived in China to attend a meeting of the Shanghai Cooperation Organization’s (SCO) Council of Foreign Ministers (CFM), the Pakistani foreign ministry said on Monday, amid prevailing regional tensions.

The meeting comes amid simmering regional tensions, particularly between India and Pakistan, following New Delhi’s refusal to sign a recent SCO joint statement over its omission of a deadly April attack in Indian-administered Kashmir.

The SCO, a trans-regional bloc comprising China, Russia, Pakistan, India, Iran, and Central Asian states, is expected to deliberate on pressing regional and global security, connectivity, and economic issues at the CFM meeting in Tianjin on July 15-16.

Upon arrival in Beijing, Dar was received by Ambassador Yu Hong, a member of the Chinese’s foreign ministry’s Department of Asian Affairs, and Pakistan’s Ambassador to China, Khalil-ur-Rehman Hashmi, along with other Chinese foreign ministry officials.

“DPM/FM will lead Pakistan’s delegation to the SCO Council of Foreign Ministers Meeting in Tianjin tomorrow, call on the President of China along with other SCO Foreign Ministers, and hold bilateral meetings with his counterparts from SCO member states,” the Pakistani foreign ministry said.

The CFM is the third highest forum in the SCO format that focuses on the issues of international relations as well as foreign and security policies of China-backed SCO.

Last month, Beijing’s bid for enhanced regional leadership suffered a setback when India rejected signing a joint statement put before defense ministers of the SCO, seen by some Western analysts as a regional grouping by China and Russia to counter United States influence in Asia, with New Delhi saying it was “pro-Pakistan” in not mentioning April’s attack on tourists in Indian-administered Kashmir.

India blamed Pakistan for backing the gunmen behind the April 22 killing of 26 people. Islamabad denies the charge. In May, India and Pakistan exchanged fighter jet, missile, drone and artillery strikes for four days over the Kashmir attack, killing around 70 people on both sides before agreeing to US-brokered ceasefire.

Separately, India’s foreign minister Subrahmanyam Jaishankar told his Chinese counterpart Wang Yi in Beijing that the two countries must resolve friction along their border, pull back troops and avoid “restrictive trade measures” to normalize their relationship, Reuters reported on Monday.

Jaishankar arrived in Beijing on his first trip to China since 2020, when a deadly border clash between their troops led to a four-year military standoff and damaged ties until a thaw began in October, when they agreed to step back.

“It is now incumbent on us to address other aspects related to the border, including de-escalation,” Jaishankar was quoted as saying.

Jaishankar met Chinese Vice President Han Zheng earlier in the day, the official Chinese news agency Xinhua reported. Han told Jaishankar that India and China should steadily advance practical cooperation and respect each other’s concerns.


Pakistan braces for new monsoon wave after rains kill 111 since late June

Updated 14 July 2025
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Pakistan braces for new monsoon wave after rains kill 111 since late June

  • Monsoon brings South Asia 70 to 80 percent of its annual rainfall, arriving in late June in Pakistan and lasting through Sept.
  • The annual rains, vital for agriculture and livelihoods, bring with them flooding, landslides and cause buildings to collapse

ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Monday warned of another wet spell in the country from July 15 till July 17, with the death toll from monsoon rain-floods rising to 111 since June 26.

The toll includes 40 deaths in Punjab, Pakistan’s most populous province, followed by 37 in Khyber Pakhtunkhwa (KP), 17 in Sindh, 16 in Balochistan and one fatality in Azad Kashmir, according to official figures. Another 212 people have been injured in rain-related incidents.

In its fresh alert, the disaster authority said a low-pressure area, presently located over India’s Madhya Pradesh state, is likely to affect Pakistan in the next 24 to 72 hours.

“Under the influence of this weather system, strong monsoon currents are expected to penetrate central and upper parts [of Pakistan],” it said. “A westerly wave is also present over upper parts of the country.”

The system may result in heavy rains and flash floods in Islamabad, Rawalpindi, Murree, Galiyat, Dera Ghazi Khan and northeastern Punjab.

“Rains may trigger landslides in Murree and hilly areas,” the NDMA said. “Heavy downpour may cause urban flooding in low-lying areas of Islamabad, Rawalpindi, Gujranwala, Lahore, Sialkot and Faisalabad.”

It called on provincial and district administrations to prepare emergency response teams, ensure the availability of rescue machinery and clear drainage systems in urban areas.

“Avoid outdoor exposure in rains and windy weather,” the authority said. “Tourists and travelers visiting mountainous areas are advised to remain cautious of flash floods, avalanche, glaciers, landslides, rock fall/tree fall, derbies/mud flow during the period.”

Monsoon season brings South Asia 70 to 80 percent of its annual rainfall, arriving in early June in India and late June in Pakistan, and lasting through until September.

The annual rains are vital for agriculture and food security, and the livelihoods of millions of farmers. But the season brings with it flooding, landslides and causes buildings to collapse.

South Asia is getting hotter and in recent years has seen shifting weather patterns, but scientists are unclear on how exactly a warming planet is affecting the highly complex monsoon.

Pakistan is one of the world’s most vulnerable countries to the effects of climate change, and its 240 million residents are facing extreme weather events with increasing frequency.

In 2022, unprecedented monsoon floods submerged a third of Pakistan and killed 1,700 people, with some areas yet to recover from the damage. In May, at least 32 people were killed in severe storms, including strong hailstorms.


UK, Pakistan agree to set up new business advisory council at inaugural trade dialogue

Updated 14 July 2025
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UK, Pakistan agree to set up new business advisory council at inaugural trade dialogue

  • The Pakistan-UK trade in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, compared to the previous year
  • The dialogue reaffirms the UK’s commitment to open and fair trade and to deepening economic ties with Pakistan, high commission says

ISLAMABAD: Pakistan and the United Kingdom (UK) decided to form a new business advisory council as officials from both countries met in London at the inaugural UK-Pakistan Trade Dialogue, the British high commission in Islamabad said on Monday.
The development came during the dialogue co-chaired by UK Minister for Trade Policy and Economic Security Douglas Alexander and Pakistan’s Commerce Minister Jam Kamal Khan, who is on an official visit to the UK from July 14 till July 20.
The UK maintains zero-tariff access of Pakistan’s exports post-Brexit, making it Pakistan’s largest European and third-largest individual export partner, according to the Pakistani foreign ministry.
The UK-Pakistan Business Advisory Council will bring together senior business leaders and government officials to provide strategic advice on policy reform, offer a confidential forum for engagement, and help promote commercial opportunities by addressing market access challenges and sharing best practices. 
“Today’s Dialogue marks the next step in our long-standing relationship with Pakistan, taking our trading partnership to the next level and unlocking new opportunities for businesses in both our countries,” Alexander was quoted as saying by the British high commission.
 “By deepening cooperation in key sectors like health care and digital technology – areas central to the UK’s Industrial Strategy – we can drive growth, foster innovation, and create jobs.”
The high commission did not share an exact date about the establishment of the new advisory council.
Bilateral trade between the two countries in goods and services reached £4.7 billion in 2024, an increase of 7.3 percent, or £320 million, compared to the previous year, according to the UK government data. Of this £4.7 billion, UK exports to Pakistan amounted to £2.2 billion, while its imports from Pakistan amounted to £2.5 billion.
Khan, whose visit aims to deepen bilateral commercial ties and strengthen institutional frameworks, said the dialogue laid the foundation for a more structured and forward-looking trade relationship between both sides.
“The UK remains one of Pakistan’s most important economic partners,” he was quoted as saying. “By strengthening collaboration and aligning our priorities, we can expand bilateral trade, attract greater investment, and create sustainable economic opportunities that benefit both nations.”
Britain also announced up to £200,000 to support Pakistan’s aspirations to attract investment from the UK.
“The funds will provide technical assistance for investor outreach, and support matchmaking between Pakistani investors and UK-based opportunities,” the British high commission said in its statement.
“This initiative reflects the UK’s commitment to supporting Pakistan’s ambitions to increase outbound investment and to strengthening the bilateral investment relationship.”
Khan’s visit comes at a time when Pakistan is striving to draw overseas investment amid a gradually healing macroeconomic environment after a prolonged downturn that forced Islamabad to seek external financing from friendly nations and multiple loan programs from the International Monetary Fund (IMF).
The British high commission said Monday’s discussions focused on key sectors, including information technology and health care, under the UK’s Industrial Strategy, which presents a “significant opportunity” for businesses and investors.
“The UK is committed to making it easier, faster, and more predictable for international firms to operate in its market. This includes reforms in skills development, innovation, regulation, and planning – creating a more dynamic and open business environment,” it said.
“Through the alignment of the UK’s Industrial Strategy and the UK–Pakistan Trade Dialogue, we are reaffirming our commitment to open and fair trade, and to deepening economic ties with key partners like Pakistan.”


Pakistan targets Gulf remittances with new PayPak digital solution for overseas workers

Updated 14 July 2025
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Pakistan targets Gulf remittances with new PayPak digital solution for overseas workers

  • The initiative aims to facilitate secure and structured remittance flows from non-resident Pakistani workers who are based abroad
  • Pakistan received over $38.3 billion remittances in last fiscal year, with Pakistanis residing in Gulf contributing a major share

KARACHI: The Pakistani government is planning to facilitate overseas Pakistanis, particularly those in Gulf countries, by providing a technological solution that would enable them to send remittances through a domestic payment scheme, PayPak, the 1Link payment gateway system said on Monday, citing the Prime Minister Youth Programme (PMYP) chief said on Monday.

PMYP Chairman Rana Mashhood Ahmad Khan said this in a recent meeting with stakeholders, including 1Link CEO Najeeb Agrawalla and Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin, in the country’s commercial capital of Karachi.

Pakistan received over $38.3 billion in remittances from different countries in the financial year ending in June, with Pakistanis residing in Gulf countries contributing a major share to this amount.

Khan said the government was working extensively to serve Pakistanis in the country and overseas by addressing their core issues through innovative, technological and affordable means.

“The government is keen to explore strategic collaboration on empowering overseas Pakistani youth through digital remittance services and expanding PayPak’s reach under the Prime Minister’s Youth Programme,” he was quoted as saying by 1Link.

Khan said Pakistanis living abroad were playing commendable role in contributing to the economy and the PM Digital Youth Hub was exploring various options to honor their services with dedicated facilities and offerings.

Launched in 2016 by 1Link, PayPak is Pakistan’s first and the only domestic payment scheme (DPS), making Pakistan the 28th country in the world to have its own domestic payment system. It aims to spur financial inclusion and digitization across the country.

“We aim to take initiatives to facilitate secure and structured remittance flows from non-resident Pakistani workers, especially those based in Saudi Arabia, UAE and other Gulf countries, while also promoting the use of PayPak for Hajj, Umrah, and other cross-border transactions including 1Bill service for non-resident Pakistanis,” 1Link CEO Agrawalla said.

As a major payment service provider, he said, 1Link proposed extending its technological expertise and platform capabilities to support the development and implementation of both initiatives.

PAFLA Chairman Amin said there were over 4 million Pakistanis residing in Gulf countries who had been contributing to the economy through their hard-earned income, adding that many of them lacked access to reliable, user-friendly technological payment solutions.

“PAFLA, in collaboration with Pakistani diplomatic missions, Pakistan’s banks, and different agencies, will do its best efforts to approach freelancers, blue- and white-collar Pakistani workers through outreach and engagement efforts across Gulf countries,” he said.