Pakistan urges peaceful coexistence as India’s Modi begins historic third term

Indian Prime Minister Narendra Modi gestures, at the Bharatiya Janata Party (BJP) headquarters in New Delhi, India, on June 4, 2024. (REUTERS/File)
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Updated 09 June 2024
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Pakistan urges peaceful coexistence as India’s Modi begins historic third term

  • Foreign office spokesperson says Pakistan has always desired cooperative relations with all its neighbors 
  • Experts expect Modi’s third term to be ‘less hostile’ for Pakistan, due to his weakened political position

ISLAMABAD: Pakistan’s Foreign Office on Sunday urged peaceful coexistence and expressed hope that India would foster an environment conducive to peace, dialogue and the resolution of longstanding disputes, including Kashmir, as Narendra Modi appeared set to take oath for a historic third term.

Modi is leading a coalition that won most seats in the recent election. His Bharatiya Janata Party (BJP), part of the National Democratic Alliance (NDA), governed India for a decade, but lost its absolute majority and is now relying on allies to form a government.

The Muslim-majority Himalayan region of Kashmir has been a flashpoint between Pakistan and India since their independence from the British rule in 1947. Both countries rule part of the Himalayan territory, but claim it in full and have fought two wars over the disputed region.

Modi’s government canceled the limited autonomy Kashmir had under India’s constitution in 2019, a move accompanied by a huge security clampdown, mass arrests of local political leaders and a months-long telecommunications blackout.

Pakistani Foreign Office spokesperson Mumtaz Zahra Baloch said Pakistan always desired cooperative relations with all its neighbors, including India, and consistently advocated constructive dialogue and engagement to resolve Kashmir and all outstanding issues.

“Pakistan believes in peaceful coexistence,” Baloch told Arab News on Sunday. “We want peace and stability in the region and Pakistan has been acting in a responsible manner, notwithstanding the difficulties and rhetoric coming from India.” 

She expressed hope that India would take steps to create a “conducive environment for advancement of peace and dialogue” and resolution of longstanding disputes for the mutual benefit of the two peoples.

Pakistani foreign affairs and political experts expect India to be “less hostile” to Pakistan under Modi’s third term due to his weakened political position and strong influence of allied parties.

“Pakistanis are quite happy that Modi has been cut down to size in the elections so it will be a more chastened and somewhat weakened Modi now sitting in the Prime Minister’s office in Delhi, dependent on his political survival on regional allies who are not much hostile to Muslims or Pakistan,” Mushahid Hussain Syed, a former senator and political expert, told Arab News.

“Pakistan hopes and expects a less hostile India with a more subdued Indian approach to Pakistan in terms of tone and rhetoric.” 

Though, he said, Pakistan would not be expecting any major change or breakthrough in ties with India after the elections. 

“However, India could extend an olive branch to both China and Pakistan on some lowkey steps toward normalization like restoration of ambassadorial ties with Pakistan or dropping opposition to Pakistan hosting the SAARC (South Asian Association for Regional Cooperation) Summit,” Syed added.

Aizaz Ahmad Chaudhry, a former Pakistani foreign secretary, said India’s foreign policy under Modi’s third term was expected to remain consistent, balancing its relations with major powers like the US, Russia, and China, while strengthening ties with the Gulf nations.

He said Modi had severed connections with Pakistan across all domains, displaying “extreme hostility” toward Pakistan during his election campaign.

“It appears that in his third term, Modi might not take any positive initiative toward Pakistan, even though he wants a stable western border to continue his focus on his economic vision and goals,” Chaudhry told Arab News.

He said Pakistan’s government would be wise to wait for an initiative from the Modi administration. “Should he change his mind and approach Pakistan for limited cooperation, we should respond positively,” Chaudhry added.

Dr. Salma Malik, an assistant professor at Department of Defense and Strategic Studies in Islamabad’s Quaid-i-Azam University, said it could be a “Catch 22 situation.”

“Modi might adopt a harder approach toward Pakistan to regain support from the conservative Hindu lobby, or he might take a softer approach if any of his allies advocate for it,” she told Arab News.

“If any of the alliance partners are open to having a meaningful dialogue with Pakistan then there could be a space.”

Abdul Basit Khan, a research fellow at the S. Rajaratnam School of International Studies in Singapore, said Modi would rely more on the US on the external front during his third term.

“A weak PM Modi will be heavily relying on the United States and a pro-US Modi will be more anti-China as he will have to go ahead with the American agenda,” he told Arab News. “For Pakistan, it can be more pragmatic and less hostile due to US influence.” 

Khan believed Modi would not have the same amount of power that he exercised in the last two terms. “So, the body language and the flamboyance that we saw in the first two terms will be missing in this term,” he said.


China’s ADM Group announces $250 investment to set up EV manufacturing plant in Pakistan

Updated 22 January 2025
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China’s ADM Group announces $250 investment to set up EV manufacturing plant in Pakistan

  • ADM Group last year announced an investment of $350 million in Pakistan’s electric vehicle sector
  • Group will set up manufacturing plant, over 3,000 electric vehicle charging stations across Pakistan

ISLAMABAD: China’s ADM Group will invest $250 to set up an electric vehicle manufacturing plant in Pakistan, state media reported on Wednesday, as Islamabad seeks for Beijing to collaborate in setting up industrial zones to manufacture electronic cars.

The government of Pakistan approved an ambitious National Electric Vehicles Policy (NEVP) in 2019 with the goal of electric vehicles comprising 30 percent of all passenger vehicle and heavy-duty truck sales by 2030, and an even more ambitious target of 90 percent by 2040. For two- and three-wheelers, as well as buses, the policy set a goal of achieving 50 percent of new sales by 2030 and 90 percent by 2040.

“Chinese Company ADM Group has announced an investment of two hundred and fifty million dollars to set up an EV manufacturing plant in Pakistan.,” Radio Pakistan reported, saying the initiative was part of efforts by the Special Investment Facilitation Council set up last year to attract foreign investment. 

“Transition to EVs is expected to cut fuel import costs, saving billions of dollars.”

Last year, ADM Group announced an investment of $350 million in Pakistan’s EV sector, saying it would establish more than 3,000 electric vehicle charging stations across the South Asian country.

Earlier this month, Pakistan said it would cut the power tariff for operators of electric vehicle charging stations by 45 percent as part of the ongoing reform of the energy sector designed to boost demand. The government is also planning to introduce financing schemes for e-bikes and the conversion of two- and three-wheeled petrol vehicles.

The cabinet on Jan. 15 approved a reduced tariff of 39.70 rupees ($0.14) per unit, down from 71.10 rupees previously, which will be in place within a month. The government expects an internal rate of return of more than 20 percent for investors in the sector.

According to a report submitted to the government by power ministry adviser Ammar Habib Khan and reported by Reuters, there are currently more than 30 million two- and three-wheeled vehicles in Pakistan, which consume more than $5 billion worth of petroleum annually.

The ministry plans to convert 1 million two-wheelers to electric bikes in a first phase, at an estimated net cost of 40,000 rupees per bike, according to the report, saving around $165 million in fuel import costs annually.

BYD Pakistan, a partnership between China’s BYD and Pakistani car group Mega Motors, told Reuters in September that up to 50 percent of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets.


President of Azad Kashmir invites China to explore investments in disputed region

Updated 22 January 2025
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President of Azad Kashmir invites China to explore investments in disputed region

  • Move is likely to draw the ire of archrival India which like Pakistan claims the Kashmir region in full 
  • Since 1947, Pakistan and India have fought three wars over Kashmir, engaged in regular border skirmishes 

ISLAMABAD: Azad Jammu and Kashmir (AJK) President Sultan Mahmood Chaudhry has invited Chinese businesses and companies to invest in different sectors of the Pakistan-controlled disputed region, state media reported on Wednesday, in a move that is likely to draw the ire of archrival India. 

The Muslim-majority Kashmir region has long been a source of tensions between nuclear-armed neighbors India and Pakistan, leading them to fight three wars since winning independence from the British Empire in 1947. The scenic mountain region is divided between India, which rules the populous Kashmir Valley and the Hindu-dominated region around Jammu city, Pakistan, which controls a wedge of territory in the west called AJK, and China, which holds a thinly populated high-altitude area in the north. Besides Pakistan, India also has an ongoing conflict with China over their disputed frontier.

Since both India and Pakistan tested nuclear weapons in 1998, Kashmir has become one of the world’s most dangerous flashpoints. Islamabad says a UN-mandated referendum should take place to settle the dispute over the region, expecting that the majority of Kashmiris would opt to join Pakistan.

On Tuesday, the president of AJK, which is administered by Pakistan as a nominally self-governing entity, met Li Ping, the director of China’s Yunnan Sunny Road and Bridge Company, and briefed him about “massive investment opportunities” in the region, APP reported. 

“Seeking Chinese companies investment in different economic sectors of the State including mining and tourism, he said that the AJK government was ready to offer all kinds of facilities and support to investors,” state media said, as Sultan briefed the visiting Chinese business leader about the tourism potential of the region as well as its abundance of natural resources and precious stones, especially rubies and other minerals.

Director of China’s Yunnan Sunny Road and Bridge Company, Li Ping (right) calls on Azad Jammu and Kashmir (AJK) President Sultan Mahmood Chaudhry in Muzaffarabad on January 21, 2025. (Radio Pakistan) 

Li gave a detailed briefing to Sultan about the aims, objectives and business activities of his company, which specializes in tunnels, highways and other construction sectors.

“He also expressed his company’s desire to start its projects in Azad Kashmir,” APP said. “The President expressed satisfaction over Yunnan Sunny Company’s desire and said that the AJK government would welcome foreign investment.”

Beijing has already pledged investments in AJK under the China Pakistan Economic Corridor scheme, including the Karot and Kohala hydropower projects, the construction of M-4 motorway, and a Special Economic Zone at Mirpur.

After the partition of the subcontinent in 1947, Kashmir was expected to go to Pakistan, as other Muslim majority regions did. Its Hindu ruler wanted to stay independent but, faced with an invasion by Muslim tribesmen from Pakistan, hastily acceded to India in October 1947 in return for help against the invaders.

The dispute over the former princely state sparked the first two of three wars between India and Pakistan after independence. They fought a second in 1965, and a third, largely over what became Bangladesh, in 1971.

A UN-monitored ceasefire line agreed in 1972, called the Line of Control (LOC), splits Kashmir into two areas — one administered by India, one by Pakistan. Their armies have for decades faced off over the LOC. In 1999, the two were involved in a battle along the LOC that some analysts called an undeclared war. Their forces exchanged regular gunfire over the LOC until a truce in late 2003, which has largely held since.

India accuses Pakistan of backing a separatist insurgency in its portion of Kashmir that began in 1989, in particular by arming and training fighters. Pakistan denies this, saying it only offers political support to the Kashmiri people.


Pakistan issues drought alert for multiple regions due to scarce rainfall

Updated 22 January 2025
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Pakistan issues drought alert for multiple regions due to scarce rainfall

  • Rainfall was 40 percent lower than normal across Pakistan from Sept. 1, 2024, to Jan. 15, 2025
  • In Sindh, rainfall was 52 percent lower than normal, Balochistan 45 percent, Punjab 42 percent

ISLAMABAD: The Pakistan Meteorological Department (PMD) has issued a drought alert for several parts of the country, warning of worsening conditions due to below-normal rainfall and rising temperatures, state-run APP reported on Wednesday. 

Pakistan has the fourth-highest rate of water consumption in the world. The country’s agriculture sector uses the most amount of fresh water than any other sector. Rainfall has steadily declined over the past few decades and experts have been warning for years the country will approach “absolute scarcity” of water by 2025.

According to the PMD advisory, which followed one issued on Dec. 9, rainfall from Sept. 1, 2024, to Jan. 15, 2025, was 40 percent below normal across Pakistan, with Sindh, Balochistan, and Punjab being the most affected provinces where rainfall deficits of 52 percent, 45 percent, and 42 percent respectively have been recorded. 

“The drought is particularly affecting rain-fed areas,” APP said. “Drought conditions are likely to aggravate in the coming months due to limited rainfall and above-normal temperatures, which may lead to moderate drought in some regions. Flash droughts are also anticipated.”

The advisory said in Punjab province, mild drought conditions had been observed in Attock, Chakwal, Rawalpindi/Islamabad, Bhakkar, Layyah, Multan, Rajanpur, Bahawalnagar, Bahawalpur, Faisalabad, Sargodha, Khushab, Mianwali, and Dera Ghazi Khan. 

Sindh province was experiencing similar conditions in Ghotki, Jacobabad, Larkana, Sukkur, Karachi, Hyderabad, and Tharparkar, while in Balochistan, affected areas included Ormara, Kharan, Turbat, Panjgur, Lasbela, Dalbandin, and adjacent regions.

The results of the latest census in 2023 counted 241.49 million people across Pakistan with a growth rate of 2.55 percent. Linked to that, per capita water availability has been on a downward trend for decades. 

In 1947, when Pakistan was created, the figure stood at about 5,000 cubic meters per person, according to the World Bank. Today it is 1,000 cubic meters. It will decline further with the population expected to double in the next 50 years, climate change experts say, pointing out that Pakistan needs intervention on a range of water-related issues: from the impact of climate change to hydropower, from transboundary water-sharing to irrigated and rain-fed agriculture, and from drinking water to sanitation.
 


Pakistan finmin, Saudi National Bank chairman discuss financial cooperation, banking sector partnerships

Updated 22 January 2025
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Pakistan finmin, Saudi National Bank chairman discuss financial cooperation, banking sector partnerships

  • Muhammad Aurangzeb meets SNB chairman at sidelines of World Economic Forum summit in Davos 
  • Pakistan’s finmin meets Egypt’s planning minister, discusses ongoing projects between two countries 

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb met Saudi National Bank Chairman Saeed bin Mohammed Al-Ghamdi on Tuesday to discuss financial cooperation and strengthening banking sector partnerships between the two countries, Pakistan’s finance ministry said. 

The meeting between the two officials took place during the sidelines of the World Economic Forum (WEF) summit in Davos, which will be held till Jan. 24 under the theme: ‘Collaboration for the Intelligent Age’.

Pakistan and Saudi Arabia are close regional partners and economic allies, with both countries signing 34 agreements worth $2.8 billion in October 2024. 

“The two leaders discussed potential financial cooperation between Pakistan and Saudi Arabia, particularly focusing on strengthening partnerships in the banking sector,” the finance ministry said in a statement. 

Aurangzeb briefed Ghamdi about Pakistan’s economic progress and the improvements made by the South Asian nation in its international financial rankings.

“Both sides expressed their commitment to further deepen economic ties for mutual benefit,” the ministry said. 

Meanwhile, the Saudi Export-Import Bank and Pakistan’s Bank Alfalah also signed a $15 million financing agreement, strengthening access to Pakistani markets and boosting trade and economic ties. 

Separately, Aurangzeb also met Egyptian Minister of Planning, Dr. Rania Al-Mashat at the sidelines of the summit. The two ministers discussed ongoing programs and projects between Pakistan and Egypt, the finance ministry said. 

“The two ministers agreed to continue discussions on economy and finance and learn from each other’s experiences,” the statement said. 


Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade

Updated 21 January 2025
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Saudi EXIM Bank signs $15m deal with Pakistan’s Bank Alfalah to boost trade

  • Agreement designed to enhance Kingdom’s exporters access to Pakistani markets
  • In October, businesses from both countries signed agreements worth $2.8 billion

RIYADH: The Saudi Export-Import Bank and Pakistan’s Bank Alfalah have inked a $15 million financing agreement, designed to enhance Kingdom’s exporters access to Pakistani markets and foster stronger trade and economic ties.

The new credit line deal seeks to increase the flow and competitiveness of the Kingdom’s non-oil exports as well as unveil new trade horizons between the two countries, the Saudi Press Agency reported.

This falls in line with Pakistan’s efforts to strengthen trade and investment ties with the Kingdom, with the Saudi government reaffirming its commitment in September to fast-track a $5 billion investment package for the Asian country.

This also aligns with Saudi EXIM’s goal of diversifying the Kingdom’s economy by offering financing and insurance products for non-oil exports in support of Vision 2030.

“The agreement comes within the bank’s efforts to strengthen strategic relations with international banks and financial institutions to provide financing solutions that contribute to the development of Saudi non-oil exports and enhance their competitiveness in Pakistani markets, by encouraging importers from Pakistan to import Saudi products and services, which opens up broad prospects for the development of trade and investment between the two countries, and creates more promising trade and investment opportunities,” said General Director of the Finance Department at Saudi EXIM Bank Abdul Latif bin Saud Al-Ghaith.

The Group Head of Corporate, Investment Banking, and International Business at Bank Alfalah, Farooq Ahmed Khan, said: “The agreement between Saudi EXIM Bank and Bank Alfalah Ltd. is a milestone in strengthening trade relations between the Kingdom and Pakistan.”

He added: “The financing line will enable Pakistani companies to access high-quality products in the Kingdom and will also enhance the volume of trade exchange between the two countries. 

“We at Bank Alfalah are proud to play a pivotal role in promoting trade and investment opportunities that are in line with the shared vision to strengthen and grow the economies of both countries.”

In October, Saudi businessmen expressed hope for successful collaborations in Pakistan, saying the country’s economic stability and improved regulatory framework had made it an attractive investment destination, following the signing of over two dozen deals between companies from both nations.