Pakistan official says China halts work on two projects after deadly attack

Security personnel inspect the site of a suicide attack near Besham city in the Shangla district of Khyber Pakhtunkhwa province on March 26, 2024. (AFP)
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Updated 29 March 2024
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Pakistan official says China halts work on two projects after deadly attack

  • The companies have demanded Pakistan authorities come up with new security plans before reopening the sites
  • The security of Chinese workers, who are frequently targeted by militants, is a major concern to both countries

PESHAWAR: Chinese contractors have halted construction on two major dam projects in Pakistan after a suicide bomber killed five Chinese engineers and a Pakistani driver this week, a provincial official told AFP on Friday.
The companies have demanded that Pakistan authorities come up with new security plans before reopening the sites where around 1,250 Chinese nationals are working, the official said.
The security of Chinese workers is a major concern to both countries, with nationals frequently targeted by militants hostile to outside influence.
The workers were targeted on Tuesday by a suicide bomber who rammed into their vehicle on a mountainous road near one of the dam sites.
He detonated his explosives on impact, plunging their vehicle into a deep ravine.
A senior official from the Khyber Pakhtunkhwa interior department told AFP on condition of anonymity that since Wednesday, China Gezhouba Group Company has halted work on the Dasu dam in the province and Power China has stopped work on Diamer Bhasha dam, which straddles two provinces.
“They have demanded new security plans from the government,” he said.
“Around 750 Chinese engineers are engaged in the Dasu Dam project, while 500 are working on the Diamer Bhasha Dam,” he added.
He said the movement of Chinese engineers has been restricted to the compounds where they live, close to the sites.
China has not commented, but this week repeatedly urged Pakistan to ensure the safety of its nationals.
Beijing is Islamabad’s closest regional ally, readily providing financial assistance to bail out its often-struggling neighbor.
China has inked more than two trillion dollars in contracts around the world under its Belt and Road investment scheme, with billions pouring into infrastructure projects in Pakistan.
But Pakistanis have long complained that they are not getting a fair share of jobs or wealth created by the projects.
Tuesday’s attack sparked a flurry of diplomatic activity at the Chinese embassy in Islamabad, with Prime Minister Shehbaz Sharif and the foreign and interior ministers offering condolences in quick succession.
China’s foreign ministry declared the countries “iron-clad friends” but asked Pakistan to “take effective measures to ensure the safety and security of Chinese nationals, projects, and institutions.”
Tuesday’s attack came just days after militants attempted to storm offices of the Gwadar deepwater port in the southwest, considered a cornerstone of Chinese investment in Pakistan.
In 2019, gunmen stormed a luxury hotel in Balochistan province overlooking the flagship Chinese-backed deepwater seaport in Gwadar that gives strategic access to the Arabian Sea — killing at least eight people.
In June 2020, Baloch insurgents targeted the Pakistan Stock Exchange, which is partly owned by Chinese companies, in the commercial capital of Karachi.


Islamabad, Beijing discuss bolstering ‘collective response mechanisms’ after India-Pakistan fighting

Updated 6 sec ago
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Islamabad, Beijing discuss bolstering ‘collective response mechanisms’ after India-Pakistan fighting

  • Islamabad’s worst military standoff with New Delhi in decades gave Chinese weapons a rare battle test
  • Pakistan used China’s J10-C Vigorous Dragon and JF-17 Thunder planes, armed with air-to-air missiles

KARACHI: Beijing’s ambassador to Islamabad met the Pakistani air chief on Tuesday evening, with the two leaders vowing to “bolster collective response mechanisms to emerging threats,” the Pakistan army said in a statement, a little over a week after Islamabad’s worst military standoff with New Delhi in decades gave Chinese weapons a rare battle test.

The most striking claim from four days of fighting earlier this month was the contention of the Pakistan Air Force (PAF) that its Chinese-supplied jets had shot down six Indian aircraft — including three French-made Rafale fighters — with some observers seeing this as a symbol of Beijing’s rising military might.

Pakistan accounts for around 63 percent of China’s arms exports, according to Stockholm International Peace Research Institute (SIPRI). 

In the recent fighting with India, Pakistan used the J10-C Vigorous Dragon and JF-17 Thunder planes, armed with air-to-air missiles. It was the first time the J10-C has been used in active combat. Islamabad’s air defenses also used Chinese kit — including the HQ-9P long-range surface-to-air missile system — and deployed Chinese radar as well as armed and reconnaissance drones.

On Tuesday evening, Chinese Ambassador to Pakistan, Jiang Zaidong, called on Air Chief Marshal Zaheer Ahmed Baber Sidhu, Chief of the Air Staff, Pakistan Air Force, and engaged in a “comprehensive and in-depth discussion on a range of matters including corporate-level engagements, defense cooperation and the evolving geostrategic environment in the region.”

“They underscored the importance of cohesive & collaborative approaches in responding to emerging challenges, emphasizing the necessity of maintaining peak operational readiness and swift coordination amidst the prevailing regional security dynamics,” the Pakistan army said in a statement released after the meeting. 

Sidhu commended China’s role in assisting Pakistan’s defense modernization and technological advancement.

“Both the dignitaries reaffirmed their pledge to institutionalize regular high-level exchanges through expanded joint operational exercises and exploration of multilateral frameworks that bolster collective response mechanisms to emerging threats,” the Pakistan army said.

The statement said the Chinese ambassador lauded the “unmatched operational excellence” demonstrated by PAF personnel during the recent standoff with India, terming it a reflection of PAF’s “high standards and unwavering commitment to national defense.” 

“He praised Pakistan Air Force for its exemplary professionalism and commendable utilization of Chinese-origin equipment & technology to thwart enemy aggression,” the Pakistan army said. 

“The dignitary also acknowledged PAF’s operational effectiveness and strategic acumen in employing indigenous solutions and advanced systems to safeguard national interests and deter potential threats under the current leadership.”

The ambassador assured “full technical assistance” to PAF to bolster its aerial defense capabilities, adding that continued focus on homegrown technological development would further elevate the country’s defense capabilities. 

Nuclear-armed neighbors Pakistan and India halted their worst fighting in nearly three decades after agreeing to a ceasefire on May 10, following diplomacy and pressure from the United States.

On Tuesday, China’s Foreign Minister Wang Yi sad Beijing welcomed and supported efforts by Pakistan and India to handle their differences through dialogue and to achieve a “comprehensive and lasting” ceasefire.

With inputs from AFP and Reuters
 


Pakistan says open to talks with India after IMF flags tensions as loan risk

Updated 21 May 2025
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Pakistan says open to talks with India after IMF flags tensions as loan risk

  • The development comes days after Indian Defense Minister Rajnath Singh said the IMF should reconsider a $1 billion loan to Pakistan
  • Finance adviser Schehzad says structural benchmarks mentioned in the lender’s latest report not new but continuation of 37-month facility

KARACHI: Pakistan on Tuesday hinted that it was open to “constructive diplomatic and economic engagement” with India as the International Monetary Fund (IMF) said prevailing tensions between the two archfoes had increased enterprise risks to Islamabad’s ongoing loan program.

The development comes days after Indian Defense Minister Rajnath Singh said the IMF should reconsider a $1 billion loan to Pakistan alleging it was “funding terror,” a move denounced by Islamabad as proof of New Delhi’s desperation.

India and Pakistan this month clashed in the worst military violence in decades, killing around 70 people before agreeing a ceasefire on May 10. The conflict was sparked by an attack on tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad, a charge it denies.

Khurram Schehzad, adviser to Pakistan’s finance minister, said the Washington-based lender had not imposed any new “conditions” on Pakistan, which continues to pursue stability and responsible governance that supports long-term growth for itself and the region alike.

“Constructive diplomatic and economic engagement in the region, including with neighbors, remains essential,” Schehzad told Arab News, when asked about the recent developments on the fiscal front.

The IMF last week approved a loan program review for Pakistan, unlocking a $1 billion payment which the State Bank of Pakistan said had been received. A fresh $1.4 billion loan was also approved under the IMF’s climate resilience fund.

But the lender last week said the rising India-Pakistan tensions, if sustained or deteriorated further, could heighten enterprise risks to the fiscal, external and reform goals of its $7 billion ongoing loan program for cash-strapped Pakistan.

The IMF loan is vital for Pakistan which is trying to revive its debt-ridden economy that is expected to expand 2.68 percent by June, about one percent lower than the government’s earlier projection.

“Yes, the IMF report identifies regional tensions as a potential risk, as is customary in such assessments,” Schehzad said, adding that at the same time, the Fund had noted that Pakistan’s stocks market had reacted to the conflict modestly and retained most of its recent gains.

“We view this as a reflection of investor confidence in Pakistan’s macroeconomic path.”

Pakistan’s stocks, which rose more than 80 percent last year, have largely resisted selling pressures in recent weeks, despite the country’s conflict with India that saw the two sides strike each other with missiles, drones and artillery.

Schehzad rejected the impression that Pakistan had increased its defense budget and said it remained constant at 1.9 percent of the gross domestic product this fiscal year starting in June 2024.

“The Rs2.414 trillion defense budget cited in the IMF’s staff report is an absolute projection,” he said.

After debt servicing, defense spending is the second biggest drain on Pakistan’s revenues that the country is trying to improve by withdrawing energy subsidies and taxing incomes from agriculture, retail and real estate sectors as one of the conditions set by the IMF under its 37-month Extended Fund Facility (EFF) secured in September.

BUDGET DISCUSSIONS

An IMF team is currently discussing with Pakistan the upcoming federal budget that the country is expected to unveil early next month, said IMF officials privy to the discussions, requesting anonymity as they were not authorized to speak to media.

The talks are expected to conclude “this week” after which the IMF would issue a concluding statement, they told Arab News, without explaining what exactly the two sides were discussing.

The IMF’s latest country report, issued last week, mentioned certain structural benchmarks for Pakistan’s economic reform program that Schehzad said represented the natural progression of the measures already agreed upon, when Pakistan signed the Memorandum for Economic and Financial Policies (MEFP) in September.

“There are not newly introduced conditions. Each step builds logically on the foundations laid in earlier phases of the program,” he said, adding that each structural benchmark the IMF’s report mentioned was part of a sequenced approach to reforms that was designed in phases and built upon progress achieved in the country’s earlier reviews.

Pakistan on May 9 secured the IMF board’s nod for its first review that saw the release of about $1 billion to the cash-strapped country and the approval of the country’s request for a 28-month, $1.4 billion Resilience and Sustainability Facility (RSF) to cope with environmental vulnerabilities.

“These benchmarks are not surprises. They are deliberate follow-ons to earlier milestones,” Schehzad said, citing Pakistan’s parliamentary approval of the next budget in line with the IMF staff agreement as a second step toward the country’s goal of achieving a primary surplus of 2 percent of GDP by FY27.

“The first step was the FY25 budget [presented in June last year], which targeted a 1.0 percent surplus.”

Terming several other IMF structural benchmarks as a continuation of what has been agreed upon with the lender, Schehzad said some new benchmarks were introduced in response to recent developments.

“The plan to publish a post-2027 financial sector strategy and the move to remove the cap on the debt service surcharge are based on new realities, including the recent constitutional amendment and the government’s evolving energy sector reform strategy,” he said.

Other reforms, according to the adviser, included phasing out incentives in Pakistan’s special technology zones and industrial parks by 2035 to ensure a level-playing field, and lifting a ban on the import of used cars to reduce trade barriers was consistent with the trade liberalization goals outlined in the September 2024 MEFP.

The finance adviser confirmed that the remaining 13 actions fall under the separate climate resilience-focused facility, RSF, that were approved by the IMF’s executive board.

“These measures reflect Pakistan’s steady and sovereign commitment to economic reform and transparency, not externally imposed demands,” he said. 


Egyptian president has accepted invitation for official visit to Pakistan — PM Sharif

Updated 20 May 2025
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Egyptian president has accepted invitation for official visit to Pakistan — PM Sharif

  • Pakistan and Egypt have cordial relations and both countries have resolved in recent years to enhance their bilateral trade
  • PM thanks President El-Sisi for Egypt’s proactive diplomacy that helped Pakistan, India reach a truce after this month’s standoff

ISLAMABAD: Egyptian President Abdel Fattah El-Sisi has accepted an invitation to visit Pakistan, Prime Minister Shehbaz Sharif said on Tuesday, following a telephonic conversation between the two leaders.
Pakistan and Egypt have cordial ties and both countries have resolved in recent years to enhance bilateral trade by facilitating businessmen with visas, exchanging trade-related information and promoting private-sector contacts.
During their conversation, PM Sharif conveyed his profound gratitude to President El-Sisi for Egypt’s constructive role and proactive diplomacy that helped Pakistan and India reach a truce after a four-day standoff.
“Expressing satisfaction on Pakistan-Egypt relations, the prime minister highlighted the need to enhance bilateral trade and investment,” Sharif’s office said.
“The prime minister extended a most cordial invitation to the Egyptian president to undertake an official visit to Pakistan which was graciously accepted.”
Friendly ties between Pakistan and Egypt can be traced back to 1947, when the former gained independence and its founder, Muhammad Ali Jinnah, visited Egypt on the special invitation of King Fuad II.
In July last year, Pakistan’s then religious affairs minister Chaudhry Salik Hussain and Egyptian Ambassador to Pakistan Dr. Ihab Abdelhamid Hassan agreed to enhance cooperation between the two countries in religious education and other areas of mutual interest.
During the call on Tuesday, PM Sharif and President El-Sisi also discussed developments in the Middle East, particularly the situation in Gaza.
“The prime minister urged the international community to ensure consistent and timely delivery of badly needed humanitarian assistance to the people of Gaza,” Sharif’s office said.


Bangladesh T20 tour to Pakistan confirmed after India ceasefire

Updated 20 May 2025
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Bangladesh T20 tour to Pakistan confirmed after India ceasefire

  • Bangladesh were initially scheduled to play five T20 internationals from May 25
  • Conflict with India also forced Pakistan to reschedule its Twenty20 cricket league

KARACHI: Pakistan has confirmed that Bangladesh will go ahead with a Twenty20 tour after it was put in jeopardy following cross-border conflict with India earlier this month.
Bangladesh were scheduled to play five T20 internationals from May 25, but will instead play three matches from a date yet to be confirmed.
Earlier this month India and Pakistan clashed for four days — their worst conflict in decades — before a ceasefire agreement.
Pakistan was also forced to reschedule its Twenty20 league — the Pakistan Super League (PSL) — after a ten-day break.
The Indian Premier League — the world’s richest cricket tournament — was also interrupted.
The Pakistan Cricket Board (PCB) said negotiations with their Bangladesh counterparts were successful, after some touring players had raised security concerns.
“PCB chairman Mohsin Naqvi... convinced them of full security and the series now comprises three T20Is instead of five,” a board press release said.
All three T20Is will be played in Lahore, likely after the PSL final on May 25.


Heatwave forces early school closures in Pakistan’s largest province

Updated 20 May 2025
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Heatwave forces early school closures in Pakistan’s largest province

  • Class times have also been changed, with all educational institutes instructed to close two hours early at 11:30am
  • Pakistan, one of the most vulnerable countries to global warming, has been experiencing unusually high temperatures

LAHORE: Rising temperatures in Pakistan’s most populous province have forced the provincial government to close all private and public schools for summer vacations early, officials said on Tuesday.

Punjab province’s education minister Rana Sikander Hayat said summer vacations will now start from May 28 instead of June 1.

Class times have also been changed, with all educational institutes instructed to close two hours early at 11:30am “due to a constant heatwave,” a notification issued by the education department said.

Pakistan, one of the countries most vulnerable to the effects of global warming, has been experiencing unusually high temperatures after a particularly dry winter.

Temperatures soared to near-record highs for the month of April, reaching as high as 46.5 degrees Celsius (115.7 degrees Fahrenheit) in parts of Punjab.

An alert issued on Monday by the national meteorological agency forecast that northern parts of the province, currently in the grip of a heatwave, will see daytime temperatures rise “5 to 7C above normal.”

An Education Department representative told AFP the early closures were announced because of the weather.

“We had to move up the summer vacation schedule because of these heatwaves,” the representative said.

Schools in the province that serve tens of millions of children also closed for a week in May last year because of excessive heat, and for several weeks in November because of high levels of toxic smog that blanketed several cities.