Pakistan eyes new export markets in Afghanistan, Central Asia

This picture taken on February 15, 2023, shows a general view of the Karachi seaport. (AN Photo/File)
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Updated 30 July 2024
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Pakistan eyes new export markets in Afghanistan, Central Asia

  • Pakistan’s exports have historically been inclined toward western economies, China and Gulf Cooperation Council region
  • Pakistan now seeks to explore new export markets including the landlocked Central Asian Republics, South African region

ISLAMABAD: Pakistani Minister for Commerce Jam Kamal Khan chaired a meeting in Islamabad on exploring new export markets, saying the potential for trade with Afghanistan and Central Asia could be enhanced by addressing “political and connectivity challenges.”

Pakistan’s exports have historically been inclined toward western economies, China and the Gulf Cooperation Council region. However, the country is now seeking to explore new export markets including the landlocked Central Asian Republics (CARs) as well as the South African region for the purpose of export diversification. 

Pakistan’s exports to five Central Asian countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, rose by 21.17 percent to $158.07 million in July-February 2024 from $130.45 million in the same period the previous year.

“Khan emphasized leveraging Pakistan’s natural assets, including mining, minerals, agro-products, gems, and fisheries, to increase exports,” Radio Pakistan reported about the commerce minister’s meeting where he recommended opening new trade missions in regions with significant trade potential.

“He also observed that export potential to Afghanistan and Central Asian countries could be significantly increased by addressing political and connectivity challenges.”

Pakistan wants to position itself as a regional trade hub and to leverage its strategic geopolitical position and enhance its role as a pivotal trade and transit hub connecting the landlocked CARs with the rest of the world. In recent months, there has been a flurry of visits, investment talks, and economic activity between Pakistan and Central Asian states and meetings with leaders from Uzbekistan, Azerbaijan, Tajikistan, and Turkmenistan.

Afghanistan too is a landlocked country reliant on Pakistan for transit and bilateral trade but tense political and diplomatic ties have put a strain on the development of formal trade. 

One of the major issues in trade with the CARs for Pakistan is that the region is landlocked, and the latter has not focused on the logistics of ground transportation up until the recent past. 

Pakistan’s export products are usually transported through Afghanistan to the CARs where the Afghan government places a restriction on Pakistani transporters for directly taking cargo from Afghanistan to the CARs. Pakistani transporters must therefore have an Afghan partner to transport their cargo, which has given rise to informal trade as Pakistani exports are often smuggled into the CARs, or to any other country, on Afghan trucks. 

These difficulties, combined with expensive transportation logistics, have meant Pakistan’s importance in the Central Asian region is not on par with other regional competitors. 


US vice president hopes Kashmir attack won’t spark wider conflict

Updated 11 sec ago
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US vice president hopes Kashmir attack won’t spark wider conflict

  • JD Vance says Pakistan should deal with militants that ‘sometimes operate’ in its territory
  • US has expressed support for India after the April 22 attack without directly blaming Pakistan

WASHINGTON: US Vice President JD Vance said on Thursday Washington hoped Pakistan would cooperate with India to hunt down Pakistan-based militants, and that India’s response to the recent Islamist militant attack in India-administered Kashmir does not lead to a broader regional conflict.
“Our hope here is that India responds to this terrorist attack in a way that doesn’t lead to a broader regional conflict,” Vance said in an interview on Fox News’ “Special Report with Bret Baier” show.
“And we hope, frankly, that Pakistan, to the extent that they’re responsible, cooperates with India to make sure that the terrorists sometimes operating in their territory are hunted down and dealt with,” Vance added.
Vance’s comments are the closest the US government has come since the April 22 attack — in which 26 people were killed — to potentially linking Pakistan to extremism in India.
Top US leaders, including President Donald Trump, have condemned the attack, calling it “terror” and “unconscionable,” while expressing support for India without directly blaming Pakistan.
India is an important US partner as Washington aims to counter China’s rising influence. Pakistan remains Washington’s ally even as its importance diminished after the 2021 US withdrawal from neighboring Afghanistan.
In recent days, Washington urged India and Pakistan to work with each other to de-escalate tensions and arrive at a “responsible solution.”
India has blamed Pakistan for the attack. Islamabad denies responsibility and is calling for a neutral probe.
The US State Department has said it was in touch with the nuclear-armed Asian neighbors at multiple levels and Secretary of State Marco Rubio held calls on Wednesday with Indian Foreign Minister Subrahmanyam Jaishankar and Pakistani Prime Minister Shehbaz Sharif.
Hindu nationalist Indian Prime Minister Narendra Modi vowed to punish those responsible and Jaishankar has told Rubio that the perpetrators should be brought to justice. Pakistan says military action by India was imminent.
Muslim-majority Kashmir is claimed in full by both Hindu-majority India and Islamic Pakistan, with each controlling only part of it and having fought wars over it.
After the attack, India suspended a treaty regulating water-sharing, and both countries closed airspace to each other’s airlines. They also exchanged fire across their border.


Pakistan urges Saudi Arabia to help de-escalate tensions with India over Kashmir attack

Updated 40 min 6 sec ago
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Pakistan urges Saudi Arabia to help de-escalate tensions with India over Kashmir attack

  • Public anger has swelled in India since the attack and PM Narendra Modi has vowed to pursue the attackers ‘to the ends of the earth’
  • The Pakistani information minister says New Delhi has offered no evidence of Pakistan’s involvement in the attack that killed 26 people

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday sought Saudi Arabia’s assistance in de-escalating heightened tensions with India over an attack in the disputed Kashmir region that killed 26 tourists last week, Sharif’s office said.
New Delhi has accused Pakistan of backing the deadliest attack in Indian-administered Kashmir since 2000. Islamabad denies it and has offered to participate in a credible international probe. The two nuclear-armed neighbors have since exchanged gunfire, diplomatic barbs, expelled each other’s citizens and shut border in a series of punitive measures against each other.
Top Pakistani leaders have reached out to senior officials in China, Saudi Arabia, Iran, Egypt and other countries, amid fears that India’s possible actions over the attack in Pahalgam may lead to a wider conflict in the region, and on Friday, Sharif met with Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.
He shared Pakistan’s perspective on recent developments in South Asia after the Kashmir incident and said Pakistan had rendered great sacrifices in its counter-terrorism efforts over the years not only to protect itself but the entire world, rejecting the “baseless Indian accusations” linking Islamabad with the April 22 assault.
“The prime minister said it was inconceivable for Pakistan to act in an irresponsible manner to jeopardize its achievements and derail the country from the path of economic progress,” Sharif’s office said. “He urged brotherly countries, including Saudi Arabia, to impress upon India to de-escalate and defuse tensions. He reaffirmed Pakistan’s desire for peace and stability in South Asia.”
Pakistan is treading a long, tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default on its foreign debt obligations in 2023. Islamabad has reached out to countries in Central Asia and beyond to boost trade as economic indicators significantly improved in the South Asian country.
Public anger has swelled in India and Prime Minister Narendra Modi has vowed to pursue the attackers “to the ends of the earth.” A Pakistani minister has said that Pakistan has “credible intelligence” that India is planning to attack it within days.
Since the attack, Pakistani and Indian troops have exchanged fire along their de facto border in Kashmir, driving tensions between both sides to their highest point in recent years. The disputed region is split between India and Pakistan and claimed by both in its entirety. The two countries have fought two wars and one limited conflict over the Himalayan territory.
During his conversation with the Saudi envoy, the Pakistan premier reiterated his call for a transparent and neutral international investigation into the April 22 incident.
“The Saudi ambassador thanked the prime minister for sharing his views on this important issue and said that Saudi Arabia wanted to work with Pakistan for peace and security in the region,” Sharif’s office said.
The United Nations (UN) has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, along with other countries has called on both sides to “exercise restraint.”


Pakistan stocks rebound as investor confidence steadies amid calls to ease India tensions

Updated 54 sec ago
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Pakistan stocks rebound as investor confidence steadies amid calls to ease India tensions

  • Tensions with India flared after New Delhi accused Pakistan of backing the April 22 Kashmir attack that killed 26
  • Analysts say weekend diplomacy and regional signals will determine if Friday’s market gains hold next week

ISLAMABAD: The Pakistan Stock Exchange (PSX) bounced back strongly on Friday as investor confidence returned amid calls from the United States and the United Nations for de-escalation of India-Pakistan tensions over Kashmir, traders and analysts said, with the market gaining more than 2,500 points during the intraday trade.
Relations between the neighbors have plummeted after India accused Pakistan of backing an attack in Kashmir that killed 26 tourists on April 22. Islamabad denies the accusation.
The benchmark KSE-100 index gained 2,787.36 points, or 2.5 percent and closed at 114,113.93 on Friday, compared to the previous day’s close of 111,326.57 points.
Stock analysts attributed the bullish sentiment to calls from the UN, US and other countries to de-escalate tensions between the two countries and offers to mediate the crisis.
“Stocks showed sharp recovery after the US and the UN urged Pakistan and India to defuse tensions,” Ahsan Mehanti, CEO of Arif Habib Group, told Arab News.
“Reports of 0.3 percent year-on-year Consumer Price Index (CPI) inflation for April 25 likely to further ease SBP [State Bank of Pakistan] policy and expected receipt of IMF tranche [of $1 billion] this month played catalyst role in record bullish activity at PSX.”
Pakistan is currently navigating an economic recovery program under a $7 billion International Monetary Fund (IMF) program.
But tensions with India over Kashmir saw the Pakistani stock market shedding over 3,500 points on Wednesday. The US State Department said it was in contact with India and Pakistan, while State Secretary Marco Rubio on Wednesday held telephonic conversations with Prime Minister Shehbaz Sharif and Indian Foreign Minister Subrahmanyam Jaishankar in a bid to ease tensions.
The UN has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, this week repeated its call on both sides to “exercise restraint.”
Saudi Arabia has said Riyadh is trying to “prevent an escalation,” while Iran has offered to mediate the crisis.
“The developments over the weekend are likely to be closely watched and will dictate whether today’s bounce spills over into next week also,” Raza Jafri, head of research at Intermarket Securities, told Arab News.


Pakistan foils bid to smuggle donkey hides worth Rs80 million to China

Updated 02 May 2025
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Pakistan foils bid to smuggle donkey hides worth Rs80 million to China

  • Pakistan is frequently listed as one of the countries with highest number of donkey populations worldwide
  • The animal’s meat and hide, used in the Ejiao traditional medicinal remedy, are quite popular in China

KARACHI: Pakistan Customs has foiled an attempt to smuggle donkey hides, worth around Rs80 million ($283,862), to China, a customs spokesperson said on Friday.
The staff deployed on the Risk Management Profiling System of the Karachi customs collectorate detected a container number SEGU-3154225 cleared from the South Asia Pakistan Port (SAPT) terminal in Karachi, whose export documents showed 285 packages of leather products were being sent to China by Messrs. Wow Trading.
The container was allowed to be loaded on a ship after the export collectorate issued a permit, but customs authorities conducted a detailed inspection after being informed by the Anti-Smuggling Organization (ASO) staff and found the prohibited donkey hides in the container.
“[The inspection] resulted in the recovery of 14,000 kilograms of prohibited donkey hides, declared under the guise of leather products, in the container, the export of which is prohibited under the export policy of the Government of Pakistan,” Irfan Ali, a customs spokesperson, said in a statement.
“A case has been registered against the exporter under the relevant provisions of the Customs Act. Further investigation is underway.”
Pakistan is frequently listed as one of the countries with the highest number of donkey populations worldwide, with Islamabad reporting its donkey population had increased to 5.9 million during the fiscal year 2023-24 from 5.5 million in 2019-2020, according to the Pakistan Economic Survey (PES) 2023-24.
The animal’s meat and hides are quite popular in China. Gelatin derived from donkey hides is highly sought after in China for its use in Ejiao, a traditional medicinal remedy. Several Chinese eateries sell donkey meat and burgers for consumption.
The seizure of donkey hides comes amid a Pakistani government crackdown on smuggling of various goods.
“Karachi Customs Enforcement Collector Moinuddin Wani appreciated and praised the performance of the officers and staff of the enforcement collectorate for this successful operation,” Ali added.


Threat of war with India empties scenic Pakistani valley of summer tourists

Updated 02 May 2025
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Threat of war with India empties scenic Pakistani valley of summer tourists

  • Gunmen last week killed 26 people in the Indian-administered Kashmir’s resort town of Pahalgam
  • The attack has fueled tensions after India blamed Pakistan for the attack, Islamabad denies charge

MUZAFFARABAD: Neelum Valley in northern Pakistan attracts some 300,000 tourists each summer who marvel at its natural beauty. But the threat of war with nearby India has emptied its hotels.
Gunmen last week killed 26 people in the Indian-administered Kashmir’s resort town of Pahalgam, fueling tensions between the nuclear-armed nations after India blamed Pakistan for the attack, a charge Pakistan denies.
Neelum Valley is less than 3 kilometers (1.8 miles) from the Line of Control, the de facto border that divides the disputed region of Kashmir, making it vulnerable to any military activity.
Hotel owner Rafaqat Hussain said Thursday the crisis has hit the tourism industry hard.
“Most tourists have left and returned to their cities because there is a risk of war,” he said.
Authorities in the Indian-controlled part of Kashmir temporarily shuttered dozens of tourist resorts following the attack as a precaution.
No such order has come from Pakistani authorities. Bazaars in the Pakistani border town of Chakothi were open for business, although people were concerned.
“First of all, our prayer is for peace, as war always affects civilians first,” shop owner Bashir Mughal told The Associated Press, saying he would fight alongside the army in the event of conflict.
Pakistan used to help residents build bunkers near their homes during periods of intense cross-border firing. But the population has grown and some homes lack shelters.
“Local casualties could be devastating if war breaks out,” Mughal warned.
Saiqa Naseer, also from Chakothi, shuddered at the childhood memories of frequent firing across the border.
“Now, as a mother, I find myself facing the same fears,” she said.
She remembered Indian shells striking the picturesque valley when the two countries came close to war in 2019. She has a bunker at her home.
“If war comes, we will stay here. We won’t run away,” she said.