RAWALPINDI: At a small tea shop in Pakistan’s garrison city of Rawalpindi, Nazar Hussain pours piping hot tea from a kettle into small cups and hands them away to eager customers, many of them regulars who have been frequenting the shop for decades.
This is the scene from a typical evening at Ludhiana Tea Shop, located in the narrow streets of Rawalpindi’s old Lal Kurti area. The tea shop takes its name after the northwestern Indian city of Ludhiana, from where its owners migrated to Rawalpindi in 1947.
“My grandfather named this business in the memory of his hometown in India,” Hussain, who took charge of the shop in 1976, told Arab News, adding that he also sold dairy products and ghee.
“We are a family of milk sellers,” he said. “In India, we used to do the same. We were milk sellers and we used to own buffaloes.”
The shop has been serving tea to customers for the past 77 years. Agha Asghar Saeed, 72, is one of them and has been coming here since he was young.
“I was born here. I spent my childhood here, my youth and now my old age as well,” he told Arab News. “I’ve been having this tea since then.”
During the Muslim holy month of Ramadan, Saeed would break his fast at home but have tea at Ludhiana Tea Shop.
“I am addicted to this tea,” he explained.
But what inspires such loyalty in customers?
“You have to buy good quality milk,” Hussain said, adding that he purchased pure and organic milk for his shop that was a bit expensive. “Not everyone knows how to buy good milk.”
He maintained that most milk sellers in Pakistan did not sell pure milk, making him take several sips while buying to check the fat content.
Just like the milk, he continued, the quality of the tea leaves was also important.
The price of one cup of tea used to be around five paisas several years ago.
“Now, we sell it for Rs60 (22 cents),” he added.
The rich taste of Ludhiana Tea Shop means Muhammad Hasnain and his friends visit it every day rather than go to other tea shops in the neighborhood.
“Obviously, everybody wants a good bang for their buck,” Hasnain told Arab News. “The most important thing for anyone is that the quality should be good, and both quality and quantity are good here.”
Ludhiana Tea Shop offers customers deep-fried sweet and savory snacks, such as pakoras, samosas, jalebis and spring rolls, delectable items popularly consumed in Pakistan with tea.
Muhammad Shoaib Khan, a man in his 30s, informed he visited the shop with his friends at least a couple of times every day.
“We come on our bikes and travel for at least 1.5 kilometer on every trip,” Khan told Arab News. “It roughly adds up to 6 kilometers.”
Despite the cost of petrol, which has surged in recent times, Khan said he visited the shop for tea because it was worth it.
Hussain said he understood why customers came from far-off places just to have a cup of tea at his 77-year-old shop.
“Everyone cannot make good tea,” he said. “They don’t pour their heart in it. They lack passion. Making good tea is something that can only be done from the heart.”
In Rawalpindi, 77-year-old tea shop named after India’s Ludhiana is still a hit with customers
https://arab.news/v7ng4
In Rawalpindi, 77-year-old tea shop named after India’s Ludhiana is still a hit with customers
- Ludhiana Tea Shop owners migrated from India’s northwestern city at the time of Partition in 1947
- Customers say they come from far-off places to relish the taste of tea at the shop which they find unique
Pakistani generals vow to ‘decimate’ militants a day after school bus bombing kills four children
- The meeting terms the attack a ‘reprehensible violation’ of international norms due to the deliberate targeting of children
- Field Marshal Asim Munir describes the people of Pakistan as the military’s ‘greatest strength’ following the India standoff
ISLAMABAD: Pakistan’s top generals on Thursday vowed to “decimate” militant groups operating in its western provinces of Balochistan and Khyber Pakhtunkhwa, a day after a vehicle-borne improvised explosive device targeted a school bus in the Khuzdar district in the southwest, killing four children and two adults.
The military’s pledge follows a sharp escalation in militant violence across Pakistan, particularly in Balochistan, where separatist groups like the Baloch Liberation Army (BLA) have launched increasingly coordinated attacks on civilians and security forces. Earlier this year, a BLA assault on a passenger train led to a hostage situation, reflecting the growing scale and sophistication of the insurgency.
Islamabad has repeatedly accused India of backing these groups to destabilize the country, an allegation New Delhi has denied, attributing Pakistan’s security troubles to internal failures.
Thursday’s statement followed a meeting of Pakistan’s top army leadership to review the country’s internal and external security environment. The huddle, chaired by Field Marshal Asim Munir, was the first since a recent military standoff with India, during which both sides exchanged missile and drone attacks.
“The Forum deliberated in depth on the threat posed by India-backed terrorist proxies operating in Balochistan and Khyber Pakhtunkhwa,” the military’s media wing, Inter-Services Public Relations (ISPR), said in a statement.
“The Forum resolved that Pakistan will never allow its peace to be compromised by externally sponsored terrorism,” it continued. “The Armed Forces, in close synergy with intelligence and law enforcement agencies, will pursue all proxies and facilitators of terrorism with unrelenting resolve. These hostile elements, trained and financed to incite chaos and fear, will be dismantled and decimated with full force of national will and institutional strength.”
The generals condemned the Khuzdar attack as a “reprehensible violation” of international norms, particularly due to the deliberate targeting of children.
They also offered prayers for victims of both the Khuzdar bombing and recent casualties from Operation Bunyanum Marsoos, the military campaign launched in response to Indian strikes.
Field Marshal Munir reiterated Pakistan’s strategic stance on national defense, declaring that “no one can coerce Pakistan through the use or threat of force.”
He also praised the professionalism and readiness of the armed forces and lauded the resilience of Pakistani civilians, youth and political leadership during recent hostilities.
“The people of Pakistan are our greatest strength,” he said during the meeting. “We remain committed to their trust and expectations in our shared struggle against any foreign aggression, terrorism and extremism.”
Pakistan seeks World Bank’s technical help to fast track $20 billion development framework
- The Country Partnership Framework was approved by the World Bank’s executive directors in January
- It aims to support Pakistan’s development by promoting private sector-led growth, climate resilience
KARACHI: Pakistan on Thursday sought the World Bank’s technical assistance to fast track the implementation of the Country Partnership Framework (CPF) discussed between the two sides earlier this year, according to an official statement circulated by the finance ministry.
The World Bank’s Board of Executive Directors endorsed the framework in January, aiming to support Pakistan’s long-term development by building human capital, promoting private sector-led growth and enhancing climate resilience through up to $20 billion in pledged lending over the next decade.
A World Bank delegation led by Managing Director for Operations Anna Bjerde met with Finance Minister Muhammad Aurangzeb in Islamabad during the day to review the Bank’s financing portfolio and strengthen bilateral cooperation.
“We are focused on ensuring that climate resilience and sustainable development remain at the heart of our economic planning,” Aurangzeb said, according to the statement. “The CPF represents an important opportunity, and we aim to implement it with full coordination across key ministries and stakeholders.”
The finance ministry said Aurangzeb requested the visiting delegation “to provide technical leadership and assistance to streamline processes and ensure a prioritized and focused rollout of the CPF.”
Bjerde praised Pakistan for continuing with difficult economic reforms under challenging circumstances and for aligning its growth with environmental sustainability.
She also reiterated the Bank’s support for initiatives in areas such as taxation, energy and social protection, while emphasizing girls’ education and women’s empowerment as critical to human capital and economic resilience.
Later in the day, the delegation also met Prime Minister Shehbaz Sharif.
According to a separate statement circulated by Sharif’s office, the prime minister welcomed the delegation and thanked the World Bank for playing a key role in the country’s development.
“We are grateful to the World Bank for the Country Partnership Framework, under which development investments exceeding $20 billion will be made in Pakistan,” he said.
Bjerde, in turn, commended Pakistan’s macroeconomic performance and recent stabilization efforts, describing the CPF as a “model” for other countries.
The meeting was also attended by federal ministers, advisers, parliamentarians and senior government officials along with World Bank Country Director Najy Benhassine.
Pakistan says open to dialogue with India, with Saudi Arabia, UAE among neutral venue options
- Pakistan’s deputy prime minister says dialogue with India has to take place and will cover all outstanding issues
- Ishaq Dar says ceasefire is holding between the two states, with troops moving back to pre-standoff positions
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar said on Thursday composite talks with India would be held at a neutral venue, such as Saudi Arabia, the United Arab Emirates (UAE) or any other mutually acceptable country, once New Delhi was ready for dialogue.
His statement followed a US-brokered ceasefire announced by President Donald Trump on May 10 to halt missile, drone and artillery exchanges between the two nuclear-armed neighbors in the wake of a deadly gun attack in Indian-administered Kashmir last month that killed 26 tourists. New Delhi blamed Pakistan for the assault, though Islamabad denied involvement.
US Secretary of State Marco Rubio subsequently mentioned after the ceasefire the two South Asian rivals had agreed to address a broad range of issues in a meeting at a neutral venue. However, the Indian authorities maintained any dialogue with Pakistan would be limited to the issue of “terrorism” and have not shown any interest so far in the said diplomatic engagement.
“The venue of the talks will be the place acceptable to both,” Dar said during a media briefing in Islamabad. “There are many candidates for it. It can be Saudi Arabia, the United Arab Emirates or any other country.”
Dar maintained talks had to be held between the two countries, adding Pakistan was ready to engage whenever India was prepared.
“We are not in a hurry and will initiate dialogue when India will be ready,” he continued. “The venue will also be decided at that time.”
The deputy prime minister said the dialogue would cover all issues between the two countries.
“It will be a composite dialogue including everything,” he informed. “Terrorism will be part of it as we are ready to talk on this with all countries because we also want to eliminate the menace of terrorism as we are the biggest victim of it.”
Dar said the ceasefire was holding, though he expressed concern over “irresponsible statements” from Indian officials.
“I think the political compulsion is coming in front of them [the Indian leaders],” he said, adding the ceasefire was maintained by the armed forces of the two countries, with the director generals of military operations on both sides in regular communication with each other.
He also informed both countries were gradually restoring their forces to the pre-standoff positions.
“It won’t take months, it will be completed within the next few days,” he added.
Dar also spoke about his recent visit to China, where he attended a trilateral dialogue with China and Afghanistan, saying both countries had agreed to strengthen their diplomatic relations.
Since the Taliban takeover of Kabul, Pakistan-Afghanistan relations have remained strained, marked by border tensions, security concerns and a lack of trust.
Diplomatic engagement between Kabul and Islamabad have also remained limited, with both countries maintaining ties at the chargé d’affaires level rather than through full ambassadors.
“On the request of China, both countries agreed to enhance our diplomatic relations, though it will take time to complete procedures,” he added.
The deputy prime minister reiterated Pakistan and China had agreed to extend their joint multibillion-dollar corridor project to Afghanistan, including the construction of a road from Peshawar to Kabul to improve connectivity.
Pakistan FY26 budget to continue fiscal consolidation, focus on IMF guidelines — analysis
- Islamabad is currently holding budget talks with the IMF, likely to conclude this week
- Government has committed to fiscal consolidation in FY26 budget to ensure debt sustainability
KARACHI: Pakistan will continue fiscal consolidation, focus on IMF guidelines and bring untaxed and low tax areas into the tax net as it announces its federal budget for fiscal year 2025-26 next month, a top Pakistani brokerage house said in a budget review
Islamabad is currently holding budget talks with the IMF, which earlier this month 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.
“We expect this budget to continue fiscal consolidation, focus on IMF guidelines and bring untaxed/low tax areas in tax net,” Topline Securities said in a budget review.
The brokerage house said the government had committed with the IMF to continue with fiscal consolidation in the FY26 budget to ensure debt sustainability.
“The government targets primary surplus of 1.6% of GDP (vs. 2.0-2.1% of GDP in FY25), a surplus for the third consecutive year after two decades. The government has also committed to use any windfall dividend expected from the central bank over and above 1% of GDP to retire debt,” the review said.
The analysis predicted the Federal Board of Revenue’s FY26 tax revenue growth target could be the lowest in six years.
“FBR revenue target is expected at Rs14.1-14.3 trillion, up 16-18% YoY, which will be the lowest percent growth in the last 6 years,” it said.
The FBR has achieved a five-year revenue Compound Annual Growth Rate of 25% from FY21-25.
“We believe, out of this required 16-18% growth, approximately 12% would be achieved through autonomous growth driven by real GDP growth of 3.6% and inflation of 7.7%. The remaining 4-5% growth translates into additional tax measures of Rs500-600 billion,” the analysis estimated.
Revenue measures expected include a change in the GST calculation price of sugar, the likely introduction of taxes on pension, retailers and wholesalers and a likely increase in federal excise duty on cigarettes, fertilizer products and pesticides by 500bps. A tax on the income of freelancers, vloggers and YouTubers is also expected.
“Government is expected to announce some relief measures namely (1) extension in exemption limit on salary or reduction of tax rate by 2.5% for all salary brackets, (2) rationalization of duties on trade, (3) likely housing finance subsidy, (4) inflation adjustment in minimum salary and unconditional cash transfer, and (5) some rationalization in super tax,” the analysis said.
It said the government would reportedly set a GDP growth target of 3.5-4.5% “while we expect GDP growth target for FY26 at 3.5-4.0% led by services.”
The analysis predicted the budget was likely to be neutral for the stock market in the short-term, neutral to positive for cement, steel, oil and gas, consumers, and independent power producers, and neutral for oil marketing firms, IT, banks, pharma, autos and textile.
Pakistan’s 37-month $7 billion IMF loan program, approved on Sept. 25, 2024, aims to build resilience and enable sustainable growth. Key priorities include entrenching macroeconomic sustainability through implementation of sound macro policies, including rebuilding international reserve buffers and broadening of the tax base; advancing reforms to strengthen competition and raise productivity and competitiveness; reforming state-owned enterprises and improving public service provision and energy sector viability; and building climate resilience.
Highlighting progress in Pakistani policies to stabilize the economy, the IMF said earlier this month when it approved the latest tranche that Pakistan’s fiscal performance had been strong, with a primary surplus of 2.0% of GDP achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1% of GDP.
“Inflation fell to a historic low of 0.3% in April, and progress on disinflation and steadier domestic and external conditions, have allowed the State Bank of Pakistan to cut the policy rate by a total of 1100 bps since June 2025,” the IMF added.
“Gross reserves stood at $10.3 billion at end-April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by end-June 2025 and continue to be rebuilt over the medium term.”
Pakistan’s second biggest city Lahore sizzles amid scorching heatwave
- Met Office warns of heatwave from May 20-24, temperatures to be 4-6 degrees above average in three main provinces
- In June 2024, almost 700 people died in heatwave in less than a week, 2015 heatwave claimed over 2,000 lives in Karachi alone
LAHORE: Pakistan’s second biggest city, Lahore, sizzled under scorching heat this week as residents tried to stay hydrated in temperatures of 43 degrees Celsius (109 Fahrenheit).
The Pakistani Meteorological Office on Monday issued a heatwave alert saying temperatures would be four to six degrees above average in the Sindh, Punjab and Balochistan provinces from May 20-24.
The Met Office also advised people to avoid prolonged exposure to direct sunlight and stay hydrated.
“The heat is so intense in Lahore at the moment that it is difficult to go out. People should take caution, wear caps soaked in water, and they should drink plenty of water,” resident Wasif Khan said.
“They should use sunglasses. There are juice stalls at different places, they can consume that. Anyway, they should protect themselves from heat.”
Pakistan experiences a long and hot summer season.
“The work cannot stop. We have to carry out our work in any circumstances,” resident Mohammad Shehzad said as he poured a bottle of cold water on his head.
“I am drinking juices and trying to remain under shade to protect myself from the heat. You know, the work goes on whether it is intense heat or it is very cold.”
The current heatwave comes amid increasingly erratic climate patterns across South Asia, with cities in Pakistan experiencing more frequent and intense heat waves in recent years, a trend climate experts link to global warming and climate change.
A 2015 heatwave claimed over 2,000 lives in Karachi alone while floods in 2022 left more than 1,700 dead and over 33 million displaced nationwide.
In June 2024, almost 700 people died in a heat wave in less than a week, with most deaths recorded in the port city of Karachi and other cities of the southern province of Sindh, according to the Edhi Foundation charity.
