Trump’s renewed interest in Pakistan has India recalibrating China ties

Trump’s renewed interest in Pakistan has India recalibrating China ties
Men watch a televison broadcast at a shop in Islamabad on November 6, 2024, featuring US President Donald Trump as he addresses an election night event at Florida. (AFP/File)
Short Url
Updated 21 July 2025
Follow

Trump’s renewed interest in Pakistan has India recalibrating China ties

Trump’s renewed interest in Pakistan has India recalibrating China ties
  • Trump’s lunch meeting with Pakistan’s army chief prompted private diplomatic protest from Delhi, say officials
  • Last week, India’s Jaishankar made first visit to Beijing since 2020 border clash between Indian, Chinese troops

NEW DELHI, India: US President Donald Trump’s lunch meeting with Pakistan’s military chief prompted a private diplomatic protest from India in a warning to Washington about risks to their bilateral ties while New Delhi is recalibrating relations with China as a hedge, officials and analysts said.

The meeting and other tensions in the US-India relationship, after decades of flourishing ties, have cast a shadow in trade negotiations, they said, as Trump’s administration weighs tariffs against one of its major partners in the Indo-Pacific.

India blames Pakistan, especially its military establishment, for supporting what it calls cross-border terrorism and has told the US it is sending the wrong signals by wooing Field Marshal Asim Munir, three senior Indian government officials directly aware of the matter told Reuters.

It has created a sore spot that will hamper relations going forward, they said.

Pakistan denies accusations that it supports militants who attack Indian targets and that New Delhi has provided no evidence that it is involved.

US-India ties have strengthened in the past two decades despite minor hiccups, at least partly because both countries seek to counter China.

The current problems are different, said Michael Kugelman, a Washington-based senior fellow at the Asia Pacific Foundation think tank.

“The frequency and intensity with which the US is engaging with Pakistan, and seemingly not taking Indian concerns into account, especially after India’s recent conflict with Pakistan, has contributed to a bit of a bilateral malaise.”

“The concern this time around is that one of the triggers for broader tensions, that being Trump’s unpredictability, is extending into the trade realm with his approach to tariffs,” he said.

Prime Minister Narendra Modi’s office and India’s foreign ministry did not respond to a request for comment. The foreign ministry has previously said that it had “taken note” of the Trump-Munir meeting.

A US official said they do not comment on private diplomatic communications and that the United States enjoys strong relationships with both India and Pakistan.

“These relationships stand on their own merits, and we do not compare our bilateral relationships with one another,” the US official said.

LUNCH AT THE WHITE HOUSE

The US seems to have taken a different tack on Pakistan after a brief conflict broke out between the nuclear-armed rivals in May when India launched strikes on what it called terrorist targets across the border in response to a deadly attack on tourists from the majority Hindu community in Indian Kashmir the previous month.

After four days of aerial dogfights, missile and drone attacks, the two sides agreed to a ceasefire. Hindu-majority India and Islamic Pakistan have skirmished regularly and fought three full-scale wars since independence in 1947, two of them over the disputed Kashmir region.

A few weeks after the May fighting, Trump hosted Munir for lunch at the White House, a major boost in ties with the country, which had largely languished under Trump’s first term and Joe Biden.

It was the first time a US president had hosted the head of Pakistan’s army, considered the most powerful man in the country, at the White House unaccompanied by senior Pakistani civilian officials.

Indian leaders have said Munir’s view of India and Pakistan is steeped in religion. 

“Tourists were murdered in front of their families after ascertaining their faith,” Indian foreign minister Subrahmanyam Jaishankar said in May, referring to the Kashmir attack.

“To understand that, you’ve got to also see...you have a Pakistani leadership, especially their army chief, who is driven by an extreme religious outlook.”

Pakistan says it is Modi who is driven by religious extremism, and that his brand of Hindu nationalism has trampled on the rights of India’s large Muslim minority.

Modi and the Indian government say they do not discriminate against minorities.

Munir’s meeting in the White House added to India’s chagrin over Trump’s repeated insistence that he averted nuclear war between the two nations by threatening to stop trade negotiations with them.

The comment drew a sharp response from Modi, who told Trump that the ceasefire was achieved through talks between army commanders of the two nations, and not US mediation.

In the days following his June 18 meeting with Munir, people from Modi’s office and India’s national security adviser’s office made separate calls to their US counterparts to register a protest, two of the officials said.

The protest has not been previously reported.

“We have communicated to the US our position on cross-border terrorism, which is a red line for us,” said a senior Indian official. “These are difficult times ... Trump’s inability to understand our concerns does create some wrinkle in ties,” he added, seeking anonymity due to the sensitivity of the matter.

Trump and Munir discussed continuation of a counter-terrorism collaboration, under which the US has previously provided weapons to Pakistan, a non-NATO US ally, and talked about ways to further strengthen ties, a Pakistani readout of the meeting said.

That raised concern in New Delhi that any arms Pakistan receives from the US could be turned on India if the neighbors end up in conflict again, two of the officials said.

HARDER STANCE

Despite what used to be public displays of bonhomie between Trump and Modi, India has been taking a slightly harder stance against the US in recent weeks, while trade discussions have also slowed, the Indian officials and an Indian industry lobbyist said.

Modi declined an invitation from Trump to visit Washington after the G7 meeting in Canada in June.

Earlier this month, New Delhi proposed retaliatory duties against the US at the World Trade Organization, showing trade talks were not going as smoothly as they were before the India-Pakistan clashes.

India, like other nations, is trying to figure out a way to deal with Trump and is recalibrating ties with China as a hedge, said Harsh Pant, foreign policy head at India’s Observer Research Foundation think tank.

“Certainly there is an outreach to China,” he said. “And I think it is mutual...China is also reaching out.”

Last week, India’s Jaishankar made his first visit to Beijing since a deadly 2020 border clash between Indian and Chinese troops.

India is also making moves to ease restrictions on investments from China that were imposed following the 2020 clash.

The thaw comes despite India’s prickly relations with China and Beijing’s close ties and military support to Pakistan.

But New Delhi’s concern about Trump’s own engagement with China, which has ranged

from conciliatory to confrontational, appears to have contributed to its shift in stance on Beijing.

“With an unpredictable dealmaker in the White House, New Delhi cannot rule out Sino-US rapprochement,” said Christopher Clary, an associate professor of political science at the University at Albany, New York.

“India is troubled by Chinese help to Pakistan and growing Chinese influence elsewhere in India’s near abroad, such as Bangladesh. Yet New Delhi has largely concluded that it should respond to creeping Chinese influence by focusing its pressures on its nearest neighbors and not on China.”

 


Pakistan suspends cricketer Haider Ali over UK police criminal investigation

Pakistan suspends cricketer Haider Ali over UK police criminal investigation
Updated 07 August 2025
Follow

Pakistan suspends cricketer Haider Ali over UK police criminal investigation

Pakistan suspends cricketer Haider Ali over UK police criminal investigation
  • PCB says probe being conducted over incident that reportedly occurred during Pakistan Shaheen’s recent tour of England
  • Board says it has ensured that Haider Ali has received “appropriate legal support” to protect his rights during the investigation

Islamabad: Pakistan Cricket Board (PCB) said on Thursday it has decided to place cricketer Haider Ali under provisional suspension, saying it was informed that the Greater Manchester Police was conducting a criminal investigation against the athlete. 

Without sharing details of the investigation, the PCB said the probe relates to an incident that reportedly occurred during the Pakistan Shaheens’ cricket team’s recent tour of England.

The board said in line with its duty to ensure the welfare and legal rights of all its players, the PCB has ensured that Haider Ali has received “appropriate legal support” to protect his rights throughout this process. The cricket board added that it respects the legal procedures and processes of the UK and acknowledges the importance of allowing the investigation to run its due course.

“Accordingly, the PCB has decided to place Haider Ali under provisional suspension, effective immediately, pending the outcome of the ongoing investigation,” it added. 

The cricket board said that once the legal proceedings conclude and all facts have been duly established, the PCB reserves the right to take “appropriate action” under its Code of Conduct.

“Until such time as the legal process reaches its conclusion, the PCB will not offer further comment on the matter,” the board concluded. 

Ali, 24, is a right-handed aggressive batter who has featured for Pakistan in only two ODIs but 35 T20Is and 164 T20s. In T20Is, he has scored 505 runs at an average of 17.41 and made three half-centuries. In T20s, the batter has scored 3,141 runs and scored 17 fifties.

He has played for renowned Pakistan Super League franchises such as Islamabad United and Peshawar Zalmi. 


Pakistan says satellite launch with China reflects friendship ‘higher than the skies’

Pakistan says satellite launch with China reflects friendship ‘higher than the skies’
Updated 07 August 2025
Follow

Pakistan says satellite launch with China reflects friendship ‘higher than the skies’

Pakistan says satellite launch with China reflects friendship ‘higher than the skies’
  • China launched Pakistani satellite (PRSS-1) from Xichang Satellite Launch Center in southwest China on Jul. 31
  • Satellite, used land surveys and disaster prevention, will help promote Pakistan’s development, says minister

BEIJING: Pakistan’s Planning Minister Ahsan Iqbal said recently that Islamabad and Beijing’s collaboration, which resulted in the successful launch of a Pakistani Remote Sensing Satellite, shows that the bilateral friendship between the two nations is “higher than the skies.”

China launched the Pakistan satellite (PRSS-1) from the Xichang Satellite Launch Center in southwest China’s Sichuan Province on Jul. 31.

The satellite, being primarily used in the fields of land resource surveys and disaster prevention and mitigation, will help promote the development of Pakistan, Iqbal said in a recent interview with the China Central Television (CCTV).

“This [satellite] is becoming a very important tool for development of mankind in future,” Iqbal said. “Because through satellite technology and communication, you can observe earth to prevent or to manage disasters.”

He said one can manage the agriculture sector “better” with the use of satellites and even cities as well. The Pakistani minister said there are so many economic applications that satellites offer and promise, adding that “this is key to our futures.”

“With this launch of satellite, I can proudly say that Pakistan-China friendship, which used to be higher than the Himalayas, now is higher than the sky,” he concluded. 

The satellite launch marked another step in Pakistan’s growing engagement with outer space with Chinese assistance. The two countries are also preparing to send the first Pakistani astronaut into space aboard China’s Tiangong space station, with training programs currently underway.


Pakistan’s anti-graft body auctions three properties owned by top real estate firm

Pakistan’s anti-graft body auctions three properties owned by top real estate firm
Updated 07 August 2025
Follow

Pakistan’s anti-graft body auctions three properties owned by top real estate firm

Pakistan’s anti-graft body auctions three properties owned by top real estate firm
  • Three out of six properties linked to Bahria Town, Malik Riaz Hussain, remained unsold due to lack of qualifying bids
  • Anti-graft body says auction was part of efforts to recover “defrauded funds” from a court-approved plea bargain

KARACHI: Pakistan’s national anti-graft body said it auctioned three properties owned by top real estate firm Bahria Town and its founder Malik Riaz Hussain on Thursday, saying the move was part of its efforts to recover “defrauded funds” from a court-approved plea bargain. 

The auction was held a day after the Islamabad High Court dismissed a petition by the firm against the planned auction of its properties by the National Accountability Bureau (NAB). The six properties up for auction include one in Islamabad and five in Rawalpindi.

NAB said the sale aims to recover unpaid amounts from a settlement deal linked to the £190 million case involving Hussain, the founder of Bahria Town. Hussain has spoken publicly for months about being pressured due to “political motives” and facing financial losses as NAB opens cases against his property development projects across Pakistan.

Farooq H. Naik, Bahria Town’s counsel, told Arab News on Wednesday the firm plans to challenge the high court’s decision in the Supreme Court. 

“NAB Islamabad/Rawalpindi today conducted a public action of six commercial properties linked to Malik Riaz/Bahria Town, in efforts to recover defrauded funds from a court-approved plea bargain of 2019,” NAB said in a press release. 

The anti-graft body said three out of the six properties remained unsold due to a lack of qualifying bids, adding that a re-auction for them will be announced “soon.”

Listing the details of the properties that were auctioned, NAB said Rubaish Marquee in Islamabad was successfully auctioned for Rs508 million [$1.78 million], which it said was Rs20 million [$70,000] higher than the reserved price.

It said the payment and transfer process for the property is underway.

Meanwhile, Bahria Town’s Corporate Office-I received conditional offers of Rs876 million [$3.07 million], disclosing that its final approval is pending from NAB’s competent authority.

The third property, named Corporate Office-II, received conditional offers of Rs881.5 million [$3.09 million]. The anti-graft body said its final approval is pending from NAB. 

“NAB remains committed to transparent recovery of public funds and strict enforcement of accountability laws,” it added. 

AL-QADIR TRUST

Pakistan’s government has launched a high-profile crackdown against Hussain in recent months. On Wednesday, Information Minister Attaullah Tarar said the Federal Investigation Agency (FIA) had uncovered evidence of Hussain’s and

Bahria Town’s involvement in money laundering of billions of rupees. 

Hussain and Bahria Town have so far not responded to the allegations. 

While Hussain has not explicitly named who was pressuring him or why, media and analysts widely speculate the crackdown relates to the Al-Qadir Trust case, which involves accusations former prime minister Imran Khan and his wife, during his premiership from 2018-2022, were given land by Hussain as a bribe in exchange for illegal favors.

In January, a court sentenced Khan to 14 years imprisonment in the Al-Qadir Trust case.

In 2019, Britain’s National Crime Agency (NCA) said Hussain had agreed to hand over £190 million held in Britain to settle a UK investigation into whether the money was from the proceeds of crime.

The agency said the assets would be passed to the government of Pakistan and the settlement with Hussain was “a civil matter, and does not represent a finding of guilt.”

The case made against Hussain and ex-PM Khan was that instead of putting the tycoon’s settlement money in Pakistan’s treasury, Khan’s government used the money to pay fines levied by a court against Hussain for illegal acquisition of government lands at below-market value for development in Karachi.

Hussain, who hasn’t appeared before an anti-graft agency to submit his reply to the summons issued to him, has denied any wrongdoing. Khan and his wife have also pleaded innocence.

The latest development marks another escalation in the legal troubles facing Hussain, widely regarded for years as Pakistan’s most influential businessman, known for close ties with political, media and military elites.

On Tuesday, Hussain said in a statement on social media platform X his property empire was on the brink of collapse due to what he termed a politically motivated crackdown. He claimed Bahria Town’s bank accounts had been frozen, vehicles seized and dozens of employees arrested, forcing a near shutdown of operations.

Earlier this year in January, NAB put out a public notice cautioning people against investing in Hussain’s new real estate venture to build luxury apartments in Dubai.


Pakistan says US doubling tariffs on India presents ‘strategic opening’ 

Pakistan says US doubling tariffs on India presents ‘strategic opening’ 
Updated 07 August 2025
Follow

Pakistan says US doubling tariffs on India presents ‘strategic opening’ 

Pakistan says US doubling tariffs on India presents ‘strategic opening’ 
  • After finalizing new trade deal with US, Pakistan has one of the lowest tariff profiles in the region
  • Businessmen say taxes, high electricity, interest rates “major obstacles” to taking advantage of deal 

KARACHI: US President Donald Trump’s move to double tariffs on Indian goods presents a “strategic opening” for Islamabad to deepen its trade partnership with Washington, Pakistan’s finance adviser Khurram Schehzad said on Thursday. 

Trump signed an executive order on Wednesday to place an additional 25 percent tariff on India on top of a 25 percent tariff that went into effect on Thursday. The move made India one of the most heavily taxed US trading partners in Asia. 

Pakistan, India’s traditional arch-rival, has meanwhile improved its ties with Washington. Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump.

 “The US tariff hike on Indian goods presents a strategic opening for Pakistan,” Schehzad told Arab News. 

Washington’s 19 percent tariff on Pakistani goods makes them less expensive than Indian goods, making Pakistan one of the countries with the lowest tariff profiles in the region.

“We see this as a moment of opportunity to deepen trade and economic ties with the United States,” the finance official added. 

The US is Pakistan’s largest export destination, State Minister for Finance Bilal Azhar Kayani said on Thursday. He added that out of $32 billion of Pakistan’s exports in the last fiscal year, $6 billion went to the US.

Pakistan’s tariff deal with the US took place at a time when Islamabad is pushing for an economic revival, buoyed by a $7 billion financial bailout package by the International Monetary Fund (IMF).

Pakistan has undertaken financial reforms over the past two years. Prime Minister Shehbaz Sharif has tasked authorities to ensure Islamabad’s $32 billion annual exports surge to over $60 billion by fiscal year 2028-29.

Pakistan, having one of the lowest regional tariff profiles and also attracting a growing US investment interest, is positioned to expand its exports, particularly in textiles, pharmaceuticals, agriculture, technology, mining & minerals, and other value-added manufacturing, Schehzad said. 

 

“This agreement will help us realize the long-term export targets we have set under Uraan Pakistan program,” he said, referring to the government’s economic plan that aims to make Pakistan a trillion-dollar economy by 2035. 

‘MAJOR OBSTACLES’

Pakistani businesspersons, especially those related to textiles, think otherwise. 

 

Atif Ikram Sheikh, president of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), said the US has imposed the lowest trade tariffs in the region on Pakistan, which Islamabad should take full advantage of.

However, he said higher production costs in Pakistan could neutralize this benefit.

 

“Taxes and high electricity and gas prices for the industry are major obstacles to taking advantage of low tariffs,” Sheikh said. 

 

The textile industry is Pakistan’s biggest foreign exchange earner, fetching $18 billion during the last fiscal year, most of which came from the US.

 

Kamran Arshad, chairman of the All Pakistan Textile Mills Association (APTMA), was also unsure whether the new trade agreement with the US would benefit Pakistan significantly. 

 

“The costly power and high interest rates would not allow us to compete (in the global textile market) at this 19 percent tariff,” Arshad told Arab News.

Last week, Pakistan’s central bank kept the policy rate unchanged at 11 percent, adopting a cautious approach. 

 

According to the APTMA, Pakistan has a higher interest rate of 11 percent, compared to India’s 5.5 percent, Bangladesh’s 10 percent, Vietnam’s 4.5 percent, Sri Lanka’s 7.75 percent, Indonesia’s 5.25 percent and Cambodia’s 3 percent.

 

The power tariff for industries in Pakistan, meanwhile, stands at $0.16 kilowatt per hour as compared to $0.096 in India, $0.10 in Bangladesh, $0.08 in Vietnam, $0.06 in Sri Lanka, $0.07 in Indonesia and $0.135 in Cambodia, the data shows.

 

Pakistani businesses are paying 29 percent corporate income tax and as much as 10 percent super tax compared to the 27.5 percent preferential taxes their competitors from India, Bangladesh, Vietnam, Sri Lanka, Indonesia and Cambodia are paying on incomes.

 

“Pakistan’s corporate tax, policy rate, labor costs, electricity rate put us at a disadvantage with India, Bangladesh, Vietnam, Sri Lanka and Indonesia,” Arshad noted.

Shankar Talreja, head of research at Karachi-based brokerage firm Topline Securities, said the US is a “big market” for pharmaceuticals, textiles and food products.

 “If Pakistan gets preferential treatment in the US market, this will help our companies grow further,” he said. 

 


Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism
Updated 07 August 2025
Follow

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism

Pakistan stocks surge to all-time high as economic gains, US trade deal drive optimism
  • KSE-100 Index touched intraday high of 146,081.02 before settling at 145,647.13
  • Energy, fertilizer and banking stocks led gains by adding 738 points collectively

ISLAMABAD: Pakistan’s benchmark stock index extended its bullish run and closed at an all-time high on Thursday, with analysts attributing the surge to rising investor confidence over Pakistan’s new tariff deal with the US and economic gains such as surging exports and currency stabilization. 

The KSE-100 Index touched an intraday high of 146,081.02 before settling at 145,647.13, up by 558.64 points or 0.39 percent from the previous close of 145,088.49.

Energy, fertilizer and banking stocks led the gains, with Pakistan Petroleum Limited (PPL), Habib Bank Limited (HBL), Engro Fertilizers Limited (EFERT), Oil and Gas Development Company Limited (OGDC) and Systems Limited (SYS) adding 738 points collectively, as per the Pakistan Stock Exchange’s data. 

Ahsan Mehanti, chief executive officer of Arif Habib Commodities, said the stocks closed on a new record high as investors weighed the 17 percent year-on-year surge in exports data for July this year, the first month of the new fiscal year. 

“Rupee stability, surging global crude oil prices, surging global equities and expected positive outcome of favorable US-Pak tariff deal played catalyst role in bullish close at PSX,” Mehanti told Arab News.

The stock market rally takes place as Pakistan shows signs of macroeconomic recovery following the IMF Executive Board’s approval of a new $7 billion loan program in September 2024. The program, which succeeded a short-term Stand-By Arrangement, focuses on structural reforms, energy sector overhauls, and fiscal consolidation.

Pakistan and the US finalized a trade agreement last week under which a 19 percent tariff was imposed on a wide range of Pakistani goods. The new rate marked a considerable reduction from the initially proposed 29 percent under a sweeping executive order signed by Trump.

The country’s economic outlook has also been bolstered by the rupee rebounding sharply in recent weeks, buoyed by steady remittance inflows and an aggressive crackdown on the dollar black market launched in mid-2024. Foreign exchange reserves have crossed $11.3 billion, according to central bank data, their highest level in nearly three years.

Karachi-based top brokerage firm Topline Securities said the bullish momentum from previous sessions carried through on Thursday, fueled by strong institutional inflows. These inflows came particularly from local mutual funds, it added. 

 

“Market participation remained vibrant, with total traded volume reaching 711 million shares and a robust traded value of Rs55.6 billion,” it continued.

“PPL led the volumes chart, with 33 million shares exchanging hands during the session.”