Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’

Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’
In this file photograph, taken and released by the Ministry of Foreign Affairs on February 3, 2024, Mumtaz Zahra Baloch, the spokesperson of Pakistan’s Ministry of Foreign Affairs, speaks during a press briefing in Islamabad. (Photo courtesy: MOFA/File)
Short Url
Updated 01 August 2024
Follow

Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’

Pakistan says Iran’s statement on Parachinar clashes ‘unwarranted’
  • Warring tribes last week clashed over property dispute in Pakistan’s Kurram district, leaving at least 32 dead, 190 injured
  • Pakistan says Iran’s statement condemning violence based on “incomplete picture” of situation in Parachinar town

ISLAMABAD: Pakistan’s foreign office spokesperson on Thursday rejected Iran’s recent statement condemning violent clashes in its northwestern Parachinar town, saying it was “unwarranted” and based on an “incomplete picture” of the situation.
At least 32 people were killed and over 190 injured in clashes that erupted last week in Pakistan’s northwestern Kurram district, particularly its capital Parachinar town.
The Kurram tribal district has witnessed deadly conflicts among tribes and religious groups as well as sectarian clashes and militant attacks over the years. The latest clashes broke out over a property dispute last week and quickly spread to nearby villages and settlements before the warring tribes agreed to a ceasefire on Sunday.
In a statement on Wednesday, Iran’s Foreign Ministry Spokesperson Nasser Kanaani condemned the “terrorist attack,” saying it had targeted Shia Muslims in Pakistan. He stressed the need for decisive action against militant groups to protect the lives of the people of Parachinar. 
“Such statements about Pakistan’s domestic affairs are therefore unwarranted,” Mumtaz Zahra Baloch, the spokesperson of Pakistan’s Ministry of Foreign Affairs, (MoFA) said during a weekly press briefing. 
“While details may be sought from the Ministry of Interior, we believe that these statements are based on an incomplete picture of the situation in Parachinar,” she added.
Baloch said Pakistan values the life, dignity and prosperity of all of its nationals as a multicultural and multifaith society.
“Pakistan is fully determined to foster social harmony, tolerance, and mutual respect,” she said.
Pakistan and Iran have had a history of rocky relations despite several commercial pacts. Their highest profile agreement is a stalled gas supply deal signed in 2010 to build a pipeline from Iran’s Fars gas field to Pakistan’s southern provinces of Balochistan and Sindh.
Pakistan and Iran also find themselves at odds due to the instability along their shared porous border, with their leaders routinely trading blame after militant attacks in their respective territories.
Earlier this year in January, the two countries exchanged airstrikes, with each government claiming to have targeted militant hideouts in the other country. Both states have since made peace overtures and restored bilateral ties through multiple high-level visits.


Pakistan economy moving in ‘right direction’ — IMF chief

Pakistan economy moving in ‘right direction’ — IMF chief
Updated 35 sec ago
Follow

Pakistan economy moving in ‘right direction’ — IMF chief

Pakistan economy moving in ‘right direction’ — IMF chief
  • Pakistan, which averted a default in 2023, is currently navigating a path to economic recovery under a $7 billion IMF program
  • Finmin says Pakistan has achieved a primary surplus on the fiscal side, with overall debt-to-GDP ratio having declined to mid-60s

KARACHI: International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday acknowledged Pakistan’s economic progress, saying the country was moving in the “right direction” by staying the course of IMF-backed structural reforms.
She said this while moderating a panel discussion, titled “A Path for Emerging Market Resilience,” on the second day of AlUla Conference for Emerging Market Economies in Saudi Arabia. The discussion featured Pakistan’s finance minister, Muhammad Aurangzeb, and his counterparts from Türkiye, Brazil and Egypt.
Pakistan, which averted a default in 2023, is currently navigating a path to economic recovery under a $7 billion IMF program and has undertaken several reforms in taxation, energy and others sectors as well as with regard to better management of loss-making state-owned enterprises (SOEs).
Aurangzeb shared the South Asian nation had achieved a primary surplus on the fiscal deficit front with its overall debt-to-GDP ratio having declined to mid-60s from more than 73 percent, thanks to “prudent fiscal management.”
“This is indeed the right trajectory, the right direction to travel and I want to thank you for your dedication to stay the course,” Georgieva said after Aurangzeb detailed his government’s efforts to keep the fiscal and current account deficits in check.
The statement by the IMF chief comes days before the arrival of a team of IMF experts to review Pakistan’s performance under the ongoing loan program. A successful review would lead to the release of around $1 billion to the cash-strapped South Asian nation.
Georgieva lauded Pakistan for “improving the overall performance of the economy” through privatization and trying to reform the loss-making SOEs, especially the government’s failed attempt to sell off its stake in the Pakistan International Airlines (PIA).
“You rightly pointed out the bane of our country has been the twin deficits,” Aurangzeb said, adding that Pakistan’s tax-to-GDP ratio was languishing between 9 percent to 10 percent, the lowest in the region, but the government was able to increase it to 10.8 percent in end-December by mobilizing local resources.
In its 37-month loan agreement with the Washington-based lender, Pakistan has agreed to increase the country’s tax-to-GDP level to 13.5 percent to join the comity of nations and to bring a certain level of sustainability to the primary surplus that it has achieved.
Aurangzeb said his country was working and making “tough policy choices with respect to what is a good cost and bad cost.”
The government of Prime Minister Shehbaz Sharif is trying to rid Pakistan’s economy of the recurring boom-and-bust cycles by enticing overseas Pakistanis to remit their earnings through formal banking channels as well as increasing exports. Pakistan expects worker remittances to rise above $35 billion this year through June.
“If we have to grow sustainably it has to be export-led growth. And we have to change fundamentally the DNA of the economy and we are working toward that,” Aurangzeb said.
“We just need to make sure we make it sustainable as we go forward.”
To a question, the minister said developing economies like Pakistan were relatively in a good place as they had entered 2025 on a “relatively strong note” in terms of market stability, resilience of the banking system, and the bold and structural reforms, which a number of economies were undertaking at this point.
“Therefore, a lot is in our control in terms of staying the course,” Aurangzeb said, adding Pakistan’s recent 10-year agreement with the World Bank Group would allow it to look at the existential issues of population control and climate change.
The use of artificial intelligence (AI) is going to become a huge enabler and game changer for a productivity-led economic growth in Pakistan, according to the finance minister. The use of agri-tech and AI-inspired precision farming will hike crop yields by 5 percent to 20 percent, while AI-powered digital banking and other services have already begun to help increase Pakistan’s IT exports by 25 percent.
“What we need to do is to ensure that the third largest freelancer population in the country gets the requisite resources,” he added.


Pakistan win bronze at 22nd Asian Junior Squash Team Championships

Pakistan win bronze at 22nd Asian Junior Squash Team Championships
Updated 45 min 35 sec ago
Follow

Pakistan win bronze at 22nd Asian Junior Squash Team Championships

Pakistan win bronze at 22nd Asian Junior Squash Team Championships
  • Republic of Korea made national sporting history as their men’s team won the tournament for the first time
  • In women’s event, Hong Kong ended Malaysia’s decade of dominance by claiming title for first time in 14 years

ISLAMABAD: The Pakistan team has won a bronze medal at the 22nd Asian Junior Squash Team Championships held in Hong Kong, state media reported on Monday.

The Asian Junior Team Championships have been held biennially since 1983.

“South Korea secured the gold medal while Malaysia got silver,” Radio Pakistan reported. “Pakistan and India won bronze medals.”

The Republic of Korea made national sporting history as their men’s team won the tournament for the first time, while in the women’s event, hosts Hong Kong ended Malaysia’s decade of dominance by claiming the title for the first time in 14 years.

Prior to Sunday’s conclusion at Hong Kong Squash Center, Republic of Korea had never reached the final of the Asian Junior Team Championships.

Completing the medals in the men’s event were No.6 seeds Pakistan, who beat No.5 seeds Japan in the quarterfinals but lost to Republic of Korea in the semis, and No.4 seeds India, who upset hosts Hong Kong, China in the quarter-final before losing out to Malaysia in the semis.

Completing the medals in the women’s event were No.3 seeds India and No.5 seeds Singapore, with India finishing second in Pool B after comprehensive wins over China, Macau – China, and Mongolia, before losing out to the hosts in the semifinals, and Singapore coming second in Pool A after wins over No.4 seeds Republic of Korea as well as Sri Lanka and Chinese Taipei before eventually exiting to Malaysia in the last four.


Nearly 250 Pakistani firms showcase agro-based products at Gulfood trade exhibition in Dubai

Nearly 250 Pakistani firms showcase agro-based products at Gulfood trade exhibition in Dubai
Updated 17 February 2025
Follow

Nearly 250 Pakistani firms showcase agro-based products at Gulfood trade exhibition in Dubai

Nearly 250 Pakistani firms showcase agro-based products at Gulfood trade exhibition in Dubai
  • Since its inception in 1987, Gulfood has become a powerful trade forum and has been driving the global food and beverage industry forward
  • Pakistani companies are presenting rice, meat, dairy, spices, cheese, processed food, bakery items, salt, and others products at the event

ISLAMABAD: Nearly 250 Pakistani firms are participating in the 30th edition of Gulfood trade exhibition in Dubai and are showcasing various Pakistani agro-based products to global buyers, the Pakistani consulate said on Monday.
Since its inception in 1987, Gulfood has become a powerful trade forum and has been driving the global food and beverage industry forward. The event, running from Feb. 17 till Feb. 21, will be featuring over 5,500 exhibitors from 129 countries.
Pakistan’s Ambassador Faisal Niaz Tirmizi inaugurated the Pakistan Pavilion at the exhibition held at the Dubai World Trade Center on Monday, where 45 Pakistani companies are showcasing rice, cereals, meat, dairy, spices, cheese, processed food, bakery items, salt, herbal products, honey, horticulture, juices and beverages.
These companies are participating under the umbrella of the Trade Development Authority of Pakistan (TDAP), while another 200 Pakistani firms are participating privately in Gulfood 2025, reflecting the country’s growing presence in the global food market, according to the Pakistani consulate.
“It is a matter of great pride that 45 companies under TDAP, along with a total of 200 Pakistani companies privately, are participating in this prestigious event,” Ambassador Tirmizi said after the launch of Pakistan Pavilion.
“Our stalls are ideally designed and strategically located, with increased space to attract local and global buyers. There is significant interest in our products, including basmati rice, spices, pink salt and cheese.”
He highlighted the upward trend in Pakistan’s agro-based exports, particularly to the Middle East and North Africa (MENA) region, and emphasized the United Arab Emirates’ (UAE) role as one of Pakistan’s key trading partners.
“Gulfood offers an unparalleled platform for collaboration and innovation, enabling Pakistani exporters to maximize business-to-business opportunities through knowledge exchange, networking and collaboration with global business leaders,” the ambassador said.
The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry. Policymakers in Pakistan consider the Gulf country an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.
Ali Zeb Khan, the trade and investment counselor at the Pakistani consulate, shared that Pakistan’s agri-food exports had reached $8 billion globally in fiscal year 2023-24, which ended in June, marking a 37 percent increase compared to the previous year.
“This growth was driven by significant increases in the exports of rice, maize, sesame, meat, edible fruits, and vegetables,” he said.
On the occasion, Shabbir Merchant, president of the Pakistan Business Council Dubai, pledged full support to Pakistani exhibitors, emphasizing the council’s commitment to promoting Pakistani products in the UAE and beyond.


Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says

Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says
Updated 17 February 2025
Follow

Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says

Pakistan to revamp trade bodies in bid to boost export-led growth, commerce minister says
  • Record inflation, high interest rates and uncertain investment climate led to economic slowdown in Pakistan in last two years
  • Commerce Minister Jam Kamal Khan credits joint efforts by the government and the private sector for the economic stability

KARACHI: Pakistan’s commerce minister, Jam Kamal Khan, on Monday said his government was working to revamp the country’s trade institutions to make them more efficient, amid Islamabad’s efforts to boost export-led growth in the country.
Pakistan is currently navigating a path to economic recovery under a $7 billion International Monetary Fund (IMF) program, secured in September 2024, and has signed several trade and investment agreements Gulf and Central Asian states as well as other countries.
The organizations the government is restructuring include the Trade Development Authority of Pakistan (TDAP), Export Development Fund, Export Facilitation Scheme and the Directorate General of Trade Organizations, according to Khan.
“In the last six months, TDAP has done a very wonderful job given its current capacity,” he said, addressing a pre-budget seminar. “We are working to enhance its efficiency further.”
Pakistan nearly defaulted in 2023 on the payment of foreign debts and the International Monetary Fund (IMF) rescued it by agreeing to a $3 billion bailout. The South Asian country is now keeping its current account in check primarily through containing imports. The country’s exports rose 10 percent to $19.6 billion in the last seven months till January, while it is keeping tabs on imports that increased by 7 percent to $33 billion, according to Pakistan Bureau of Statistics.
“Despite tough [economic] conditions, our exports have not declined but progressed if not having increased significantly,” Khan noted.
In a statement, the Pakistani commerce ministry said Monday’s seminar provided a platform for stakeholders to discuss economic challenges and the roadmap for tariff rationalization.
“The more this ministry would engage the industry, the more we would know how to address the industry and its issues,” Khan said, acknowledging financial difficulties in the last two years, but appreciated the resilience of the industry.
“We have been partially successful despite many challenges. The industry has survived tough times, and I congratulate all stakeholders for their efforts. Their contributions have been effective in steering the economy toward stability.”
Khan said severe challenges, including inflation that peaked to 38 percent in May 2023, high interest rates, and an uncertain investment climate, had led to an economic slowdown, but credited joint efforts by the government and the private sector for economic stability. Inflation came down to 1.8 percent in January, while the Pakistani central bank has slashed interest rates to 12 percent from an all-time high of 22 percent in June last year.
“If we compare today’s situation with two years ago, it is evident that stability has returned. This achievement is the result of the industry’s contribution alongside government initiatives,” he said.
Commerce Secretary Jawad Paul emphasized the seminar’s importance in shaping economic policy and fostering export-led growth, highlighting the role of tariff rationalization in reducing production costs, boosting competitiveness and attracting foreign investment.
Transparent tariff policies enhance investor confidence and economic integration through trade agreements. The National Tariff Policy (NTP) 2019-24 successfully rationalized 85.75 percent of tariff lines, providing Rs92 billion ($330 million) in relief to businesses, according to the official.
The new NTP 2025-30 aims to further support small-medium enterprises (SMEs), green initiatives and emerging technologies like artificial intelligence (AI) and robotics. The commerce ministry was committed to stakeholder engagement and targeted reforms to ensure sustainable economic growth and global trade integration.
“We have decided to initiate extensive consultations well before the budget,” Paul said. “This is just the first session and within two to three months, we will be in a stronger position to make informed decisions.”
Commerce Minister Khan assured the business community would be involved at every stage to ensure policy alignment.
“Whatever policies we formulate, the business community will be on board. We will strive for a consensus on majority of issues,” he said.
Joint Secretary Muhammad Ashfaq gave a detailed presentation at the seminar on NTP 2025-30, presenting an impact analysis of NTP 2019-24 and contours of the new draft.
Speaking about structural reforms, Khan highlighted the involvement of 17 sectoral councils in policy recommendations, drawing parallels with the National Economic Development Board (NEDB).
“Although our focus remains on increasing exports, we will ensure that local industries remain competitive,” he shared. “We aim to manage tariffs effectively to support domestic businesses while integrating them into the international market.”
Khan reaffirmed the government’s commitment to inclusive and transparent policymaking at the seminar, which was a continuation of a weeklong consultative session between the government and industry representatives.
“The private sector has the potential to drive our economy forward. Over the past six to eight months, we have actively engaged with stakeholders, taken ownership of various business-to-business (B2B) meetings, and strengthened trade mechanisms,” Khan said.
“This pre-budget seminar marks the beginning of a continuous dialogue. We started this process with consensus, and we will conclude it with consensus, ensuring that our economic policies reflect the collective vision of all stakeholders.”


Pakistan says will privatize over 50 state entities within four years

Pakistan says will privatize over 50 state entities within four years
Updated 17 February 2025
Follow

Pakistan says will privatize over 50 state entities within four years

Pakistan says will privatize over 50 state entities within four years
  • The statement comes after Economic Affairs Minister Ahad Cheema’s meeting with a World Bank delegation
  • Divestment of state entities is key component of Pakistan’s reform agenda under $7 billion IMF program

ISLAMABAD: Economic Affairs Minister Ahad Cheema has said that Pakistan plans to privatize more than 50 state-owned enterprises (SOEs) within the next four years as part of its efforts to overhaul public entities and improve their performance, the Pakistani government said on Monday.
Cheema said this during his meeting with a delegation of top officials of the World Bank Group (WBG), according to the Press Information Department (PID) of the Pakistani government. The visit aims to enhance understanding of Pakistan’s economic, political, social and governance landscape, while exploring opportunities for future development support.
The development comes months after Prime Minister Shehbaz Sharif announced his government would privatize all state entities, except those considered “strategically important” or essential. In 2023, the International Monetary Fund (IMF), as part of Pakistan’s $3 billion bailout, had stressed the need for stronger governance of SOEs, whose losses were heavily impacting the government finances.
Last year Pakistan’s Cabinet Committee on Privatization (CCOP), responsible for the Privatization Program 2024-29, approved the privatization of 24 entities. However, it decided that the inclusion of other state entities would be determined after a review to assess their categorization as strategic or essential enterprises.
“In the first phase, the government is focusing on the privatization of power distribution companies (DISCOS) and in the second phase, Pakistan International Airlines (PIA) and other SOEs are to be privatized,” Cheema was quoted as saying by the PID, following his meeting with the World Bank delegation.
“The minister shared that the government aims to privatize up to 50 SOEs over the next 3-4 years.”
The minister informed the delegation about the challenges faced by the power sector, including high tariffs for consumers, inefficiencies in line losses and efforts to achieve full cost of recovery, according to the statement.
The World Bank delegates commended Pakistan’s efforts in addressing critical challenges and expressed their support for Pakistan’s newly launched Country Partnership Framework (CPF) for 2026-2035 to help achieve its development goals, with an unprecedented commitment of $40 billion. It would include sovereign lending of $20 billion by the International Development Association (IDA) and International Bank for Reconstruction & Development (IBRD). IFC will mobilize another $20 billion to foster private sector investments in Pakistan.
Last week, Pakistan also signed a financial advisory agreement with a consortium, led by Dubai-based Alvarez & Marsal Middle East Limited, to privatize three major power distribution companies.
The agreement is part of the government’s broader effort to reform the power sector which has long struggled with circular debt, operational inefficiencies and power theft. The divestment of state-run power companies is a key component of Pakistan’s economic reform agenda as outlined by the IMF in its current $7 billion loan program.