Pakistan experts decry ‘security failure,’ warn of threat to investments after deadly separatist attacks

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Updated 27 August 2024
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Pakistan experts decry ‘security failure,’ warn of threat to investments after deadly separatist attacks

  • Widespread militant assault in Balochistan province left at least 53 dead on Sunday and Monday
  • Balochistan is host to major China-led infrastructure projects such as a port and a gold-copper mine

KARACHI: Experts have decried a “major security failure” and warned of a threat to foreign investment in Pakistan after separatist militants launched several coordinated attacks in the southwestern province of Balochistan, killing over 53 people, including at least 19 soldiers and police.

In the most widespread assault by ethnic insurgents in years, militants launched attacks in several districts across Pakistan’s largest but most impoverished province. The attacks included pulling passengers off trucks and buses and killing at least 23, attempting to storm a military camp and a paramilitary Levies station, blowing up a bridge, and blocking roads as well as a major highway connecting Balochistan to other provinces.

Balochistan — a key region bordering Iran and Afghanistan and host to major China-led infrastructure projects such as a strategic port and a gold-copper mine — faces a decades-old separatist insurgency, with ethnic Baloch militants fighting for independence, alleging exploitation of the province’s mineral and gas resources by the central government. The Pakistani state denies this and says it is working for the uplift of the region through various development schemes.

Security experts say the fresh attacks highlighted enhanced strategic planning and tactical capabilities of the Baloch Liberation Army (BLA), the most prominent of the separatist groups, and other armed groups operating in the southwestern province. The BLA, they argue, is getting better at mobilizing fighters in different areas.

“Attacks of this magnitude and nature constitute a major security failure,” Abdul Basit Khan at the S. Rajaratnam School of International Studies in Singapore told Arab News, highlighting that militants “effectively choked” strategic entry points into Balochistan.

“They were able to sustain their activities for at least an entire night.”

The effective blockade of key highways leading to the Sindh and Punjab provinces showed that separatist militants in Balochistan numbered around 4,000 now and their operational capabilities have increased “tremendously,” according to Khan. 

He said the attacks would potentially undermine China’s confidence in the capability of Pakistan forces to protect its interests in Balochistan and negatively impact efforts to bring more international investment to Pakistan. The province is home to key mining projects, including Reko Diq, run by mining giant Barrick Gold, and believed to be one of the world’s largest gold and copper mines. China also operates a gold and copper mine in the province and is building a deep sea port at Gwadar as part of the over $60 billion China-Pakistan Economic Corridor.

In the past, the BLA has specifically targeted Chinese interests — in particular the strategic port of Gwadar on the Arabian Sea, accusing Beijing of helping Islamabad exploit the province. It has killed Chinese citizens working in the region and attacked Beijing’s consulate in Karachi. 

The BLA showed its muscle when it audaciously stormed army bases in 2022 and then a navy base later that year. 

Expanding its traditional use of guerrilla gunmen, it has also recently begun using women suicide bombers, seen in an attack on Chinese nationals on a university campus in Karachi.

The group has since targeted both military and Chinese officials, including launching an attack on Gwadar in March.

The BLA was at the center of tit-for-tat strikes earlier this year between Iran and Pakistan over what they called militant bases on each other’s territory, which brought the two neighbors close to war.

Islamabad says it has struck BLA bases inside Iranian territory from where the militants plotted attacks in Pakistan.

“NOT THE FIRST TIME”

Syed Ali Shah, a Quetta-based journalist covering militancy in Balochistan, said this was not the first time BLA had carried out such coordinated attacks, but agreed they would have a “far-reaching impact” on foreign investments at a time the South Asian country is struggling to meet external financial needs as part of a $7 billion bailout loan that is pending approval by the International Monetary Fund (IMF) executive board.

“It will have an impact on the investors, particularly the Chinese,” Shah said. “For investment, the first condition is peace and security. If such incidents are taking place, as currently a surge is seen in such attacks, it would impact Pakistan’s efforts to attract and secure international investment.”

The latest attacks coincided with the 18th anniversary of the killing of Nawab Akbar Khan Bugti, a prominent Baloch politician and a tribal chief who was killed in a military operation in August 2006, inflaming the insurgency in Balochistan. The province saw major attacks till 2012, followed by a period of relative calm for around seven years when reconciliation efforts resulted in many separatist leaders laying down arms. 

“But the militants have again intensified their activities in Balochistan,” Shah said.

The surge in violence also comes amid protests led by young ethnic Baloch against what they describe as a pattern of enforced disappearances and other human rights abuses by security forces, who deny the charge. 

The insurgency and the protests continue to keep the mineral rich province of some 15 million people unstable and have created security concerns around Pakistan’s plans to access untapped resources under Balochistan’s desert and mountainous terrain.

Speaking to Arab News, a Pakistani intelligence official who requested anonymity, accused “hostile intelligence agencies,” a veiled reference mostly to India and Afghanistan but also Iran, of conspiring to disrupt investments and development in Balochistan.

“Enemies of peace want to disrupt the stability in Balochistan with agenda-driven moves to sabotage the development projects under CPEC,” he said.

Separatists, he added, wanted to push the province into the “stone age” by destroying roads, highways and other infrastructure.

“On behest of inimical and hostile forces, these cowardly acts of terrorism were aimed at disrupting the peaceful environment and development of Balochistan by targeting mainly the innocent civilians,” the Pakistan army said in a statement on Monday. 

“Security forces and law enforcement agencies of Pakistan in step with the nation, remain determined to thwart attempts at sabotaging peace, stability and progress of Balochistan.”


Pakistan’s Punjab puts security on ‘high alert’ amid surge in militant attacks in northwest

Updated 09 March 2025
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Pakistan’s Punjab puts security on ‘high alert’ amid surge in militant attacks in northwest

  • Pakistan is the world’s second-most affected country by militancy, according to Global Terrorism Index 2025
  • Pakistan accuses Afghanistan of sheltering militant groups attacking its western regions, Kabul denies this

ISLAMABAD: Pakistan’s most populous Punjab province has put security on “high alert” and ordered intelligence-based search-and-sweep operations across the region, a police spokesperson said on Sunday, amid surge in militant attacks in the neighboring Khyber Pakhtunkhwa (KP) province in the country’s northwest.
Pakistan has witnessed a surge in militant violence in its KP and Balochistan provinces that border Afghanistan, including a twin suicide bombing that killed 18 people in KP’s Bannu district on March 4.
The attacks have prompted provincial authorities in Punjab to carry out intelligence-based operations and mock exercises to thwart any untoward incident in the eastern Pakistani province.
“During the last 24 hours, 436 search and sweep operations were conducted, along with eight mock exercises across Punjab,” Punjab police spokesperson Mubasher Hussain told Arab News, adding that 38 proclaimed offenders and 123 other suspects were arrested during these operations.
According to the 2025 Global Terrorism Index (GTI), Pakistan is now the world’s second-most affected country by militant violence, with deaths rising 45 percent to 1,081 in 2024.
The 12th annual GTI report, published by Australian-based think tank Institute for Economics and Peace, ranked 163 countries in 2024, covering 99.7 percent of the world’s population and analyzing the impact of militant activities worldwide. Pakistan is second only to West African country Burkina Faso on the list.
Officials in Islamabad accuse Afghanistan of harboring anti-Pakistan groups that launch cross-border attacks in Pakistan’s western regions. Kabul denies the allegation and insists Pakistan’s security is an internal matter of Islamabad.
The Punjab police spokesperson said the search-and-sweep operations are part of measures to combat militants and criminal elements.
“Authorities have recovered 2 Kalashnikovs, 12 rifles, 20 handguns, and hundreds of bullets from the arrested suspects,” he added.


Huawei trains over 20,000 Pakistani youth in AI, cybersecurity and cloud computing

Updated 09 March 2025
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Huawei trains over 20,000 Pakistani youth in AI, cybersecurity and cloud computing

  • Pakistan and Huawei last year signed an agreement to train 300,000 Pakistani youth in advanced information and communication technologies
  • Islamabad views ICT as a driver of economic change and seeks to transform the sector into a cornerstone of its strategy for financial stability

ISLAMABAD: Huawei, a leading Chinese multinational corporation and technology company, has trained more than 20,000 Pakistani youngsters in advanced information and communication technology (ICT) skills, Prime Minister Shehbaz Sharif’s office said on Sunday, amid Islamabad’s efforts to develop a more technologically skilled workforce.
These youngsters have been trained under an agreement signed between Pakistan and Huawei last year to train 300,000 Pakistani youth in ICT skills to match international standards.
The Chinese tech firm is providing training to Pakistani youth in artificial intelligence (AI), cybersecurity, cloud computing and other advanced technologies under the initiative.
“Huawei Technologies has trained 20,315 students so far. The program is upskilling students, trainers and those working in ICT technologies,” Sharif’s office said, following his meeting with a Huawei delegation in Lahore on Sunday.
“The master trainers trained by Huawei Technologies will provide training to youth at the local level.”
Pakistan views ICT as a driver of economic change and seeks to transform the sector into a cornerstone of its strategy for financial stability, courting foreign investment from countries like China and the Gulf states.
In Jan., the Pakistani IT ministry and Huawei launched a training portal to develop a more technologically skilled workforce in Pakistan, aimed at enabling the Pakistani youth to contribute to the country’s development.
During Sunday’s meeting, Sharif asked officials to ensure speedy implementation of IT training projects.
“The prime minister directed to make the ICT training portal accessible to maximum number of people, and expand the project to all provinces, including Azad Kashmir and Gilgit-Baltistan,” Sharif’s office said.


Pakistan plans to adopt cryptocurrency as ‘strategic asset,’ adviser says

Updated 09 March 2025
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Pakistan plans to adopt cryptocurrency as ‘strategic asset,’ adviser says

  • Pakistan has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees
  • Last month, Islamabad announced its plans to set up a national crypto council to establish a digital financial ecosystem in the country

ISLAMABAD: Pakistan is planning to adopt cryptocurrency as a “strategic asset” to bring about a digital financial revolution, an adviser to the Pakistani finance minister said this week, after Islamabad signaled its intent to formalize digital asset regulations.
Pakistan’s finance division said last month that it was mulling a national crypto council to establish a financial ecosystem in the country that would allow safe investments in digital assets.
This month, the finance division announced the appointment of Bilal bin Saqib, a Forbes-recognized entrepreneur and Web3 investor, as chief adviser to the finance minister for the Pakistan Crypto Council.
“The Pakistan Crypto Council recognizes Pakistan’s strong position as one of the top 10 nations globally in crypto adoption,” Saqib said on X.
“Moving forward, it will be our priority to recognize crypto as a strategic asset, develop comprehensive and forward-thinking regulatory frameworks, and ensure compliance to position Pakistan as a leader in the digital financial revolution.”
Pakistan’s central bank previously declared virtual currencies, including Bitcoin, Litecoin, Pakcoin, OneCoin, DasCoin and Pay Diamond, illegal and prohibited their sale, purchase and exchange in trading.
The country currently has over 20 million active users in the digital asset market who face significant challenges, including high transaction fees, according to the finance division.
Saqib noted that the United States (US) had just made a “historic” move to establish a Bitcoin Strategic Reserve, which marked a pivotal moment for the global economy.
“It signals a shift in how nations perceive value, moving beyond traditional assets like gold and oil to embrace the digital future,” he said.
“For the world, this decision brings greater legitimacy to crypto as a store of value, accelerates institutional adoption, and strengthens the foundation of the digital economy. It also sets a precedent for other nations to follow, reshaping the future of global finance.”
Last month, Pakistan’s Finance Minister Muhammad Aurangzeb directed stakeholders to formulate a comprehensive framework for a digital asset ecosystem that ensures security, transparency, regulatory compliance and economic viability. He was presiding over a high-level meeting to discuss global evolution of cryptocurrency and potential impact of digital assets on Pakistan’s economy.
“This crypto council will oversee policy development, address regulatory challenges, and ensure that Pakistan’s digital asset ecosystem evolves in a secure, compliant, and sustainable manner,” the finance division said after the meeting on Feb 25.
“The Council will also collaborate with friendly countries to develop standardized frameworks for international digital economic engagement.”


Militants kill three Pakistani paramilitary troops in restive northwestern district — police

Updated 09 March 2025
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Militants kill three Pakistani paramilitary troops in restive northwestern district — police

  • Kurram has been the flashpoint for sectarian tensions, with clashes between Shia and Sunni tribes claiming over 150 lives since Nov.
  • The attack follows an ambush on an aid convoy that killed five Pakistani troops and a truck driver in the restive district last month

PESHAWAR: At least three Pakistani paramilitary troops were killed when unidentified militants attacked a security checkpoint in the northwestern Kurram district, a police official said on Sunday.
Kurram, a tribal district of around 600,000 that borders Afghanistan, has been the flashpoint for sectarian tensions between Shia and Sunni tribes, with clashes between both sides claiming more than 150 lives since Nov. last year.
In the latest incident, militants attacked a security checkpoint that killed three personnel of the Frontier Constabulary (FC) paramilitary force and injured four others, according to Kurram police spokesman Riaz Khan.
“Security forces were targeted by unidentified miscreants at around 5:15am within the limits of Chinarak police station in the ​​Tukre Patti area of Central Kurram,” Khan told Arab News. “Further surveillance is ongoing.”
No group immediately claimed responsibility for the attack.
Last month, five Pakistani troops and a truck driver were killed after insurgents attacked trucks carrying aid to the restive district that has been cut off from the rest of the country since Nov., according to Abbas Majid, a senior police official. Authorities blocked roads following clashes between heavily armed tribes, causing a shortage of food and medicines in the district.
Shiite Muslims dominate parts of Kurram, although they are a minority in the rest of Pakistan, which is majority Sunni. The warring tribes reached a peace agreement on Jan. 1, but sporadic violence has continued in Kurram and both sides have occasionally engaged in battles with machine guns and heavy weapons.
Authorities have been airlifting the injured and ailing from Kurram to the provincial capital of Peshawar, and airdropping essential supplies in the region via helicopters since Jan. this year.
Last year was the deadliest in a decade for Pakistan, home to 250 million people, with a surge in attacks that killed more than 1,600 people, according to the Center for Research and Security Studies, an Islamabad-based analysis group.


Women investors await Pakistan-IMF talk results to decide on stock investments

Updated 09 March 2025
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Women investors await Pakistan-IMF talk results to decide on stock investments

  • IMF has sent a team of experts to see if the South Asian nation is complying with the conditions it has set under the $7 billon program
  • A successful review will not only lead to the release of about $1 billion to cash-strapped Pakistan, but also open new avenues for investors

KARACHI: Woman investors in Pakistan are “cautiously” looking at the country’s ongoing talks with the International Monetary Fund (IMF) and will buy more shares in companies listed on the bourse, if the negotiations succeed.
Woman investors in Pakistan’s commercial capital of Karachi hope that Islamabad’s negotiations with the global lender for a review of its $7 billion program would end on a positive note, thus allowing the market sentiments to boost.
The Washington-based lender has sent a team of experts, led by Nathan Porter, to see if the South Asian nation is complying with the conditions it has set under its reforms-oriented extended fund facility (EFF).
A successful review would not only lead to the release of about $1 billion to cash-strapped Pakistan, but also open new avenues for investors who have been buying and selling company shares at the Pakistan Stock Exchange (PSX).
“I will be putting more money into the stock market for sure and I would be advising my clients to do the same,” said Saniya Bilal Doni, a 33-year-old CFA charter holder who has been actively investing in Pakistan’s stocks, real estate and gold markets for the last four years.
The mother of two holds a finance degree from the University of Toronto and prefers to make long-term, dividend-based investments in what she called “well performing” banking, real estate, fertilizers and technology stocks that make her portfolio keep growing. Doni though did not quote any numbers to show how big her investment portfolio is.
Having worked for various asset management funds in Canada and Abu Dhabi after completing her graduation in 2013, Doni now is managing her family’s portfolio as well as advising high net-worth individuals on how they should manage their investment portfolios.
She expects more money to come into Pakistan’s economy as a result of a successful IMF review that would help the stocks market increase more.
“All the stocks should technically go up. Yes, that has an impact because as an economy we are unfortunately dependent on IMF’s funding,” she said.
“I am paying attention to all of that, especially as I, you know, make changes to the portfolio, if any, and also if I advise clients.”
Inflation-hit Pakistan has about 350,000 registered individuals who invest in stocks, according to Najeeb Ahmed Khan Warsi, head of online trading at Foundation Securities Ltd.
This number looks dismal given the fact that Pakistan is the world’s fifth most populous nation, with more than 240 million people. The number of woman investors at 5 percent is even negligible.
Like others, these woman investors are also concerned about the outcome of Pakistan’s talks with the IMF, which usually take a couple of weeks to conclude.
“As an investor I am very cautious at the moment. I am holding on to my stocks. I am holding on to my investments. I am very careful with that,” said Isra Ghous Rasool, a 22-year-old business management student who bought some Shariah-compliant stocks a year and half ago to prove that women too can invest in stocks.
Pakistan’s central bank has almost halved the interest rates to 12 percent since June last year and made the booming stocks market an attractive place for investors like Doni and Rasool. The stock gauge KSE-100 Index almost doubled last year and gained 87 percent in US dollars terms to make Pakistan one of the world’s best performing markets.
Women like Doni and Rasool think that being investors makes them financially independent and empowered enough to have more control over their finances and choices without depending on their male relatives.
“I have a better relationship with money. I am able to dictate what I want in life and be able to actually pay for it,” said Doni, who sees another rate cut coming on March 10 when Pakistan’s central bank is scheduled to revise the borrowing rate.
“I am definitely looking for more opportunities in the stock market.”
Doni thinks investments help people hedge inflation which though now has eased to a single digit, but was seen peaking to 38 percent in May 2023.
Despite such good examples, Pakistan remains a male-dominated society where women tend to stay away from financial markets and use traditional saving methods like running committees.
Maham Alavi, a 40-year-old Pakistani brand manager, is running an all-women group of investors on Facebook from the Saudi capital Riyadh for the past decade.
Her Facebook group, Women Investment Forum, has now expanded to 15,000 members, about half of them being confident investors or analysts working in different fields in and outside Pakistan.
Alavi herself vets all the Facebook profiles to avoid an online scam.
“I started this group in Sep 2016 with the intent to learn myself and gather as many women as I could because the PSX had always been a male-dominated field in Pakistan,” she told Arab News from Riyadh.
Women Investment Forum is an educational group and does not tell its members where to invest or what to buy.
“That is their decision to make. We try to empower them so they can make decisions themselves,” said Alavi, a mother of two.
Pakistan’s stock exchange also organizes workshops and awareness sessions to promote financial literacy among women that makes them financially independent. One such event is being organized by the PSX on March 10 in Karachi to celebrate the International Women’s Day.
Both Doni and Rasool are equally critical of the prevailing political uncertainty in the country that by and large keeps investor sentiments dampened in Pakistan.
Pakistan is facing a political crisis since April 2022, when prime minister Imran Khan was ousted from power through a parliamentary no-trust vote. Khan remains in jail and his Pakistan Tehreek-e-Insaf party keeps agitating on roads across Pakistan demanding the release of its political prisoners, including Khan.
“Political noise does play a huge role and whenever I’m trying to, you know, encourage, overseas Pakistanis to invest into Pakistani stock market or, you know, real estate, this is their number one concern,” said Doni, while sitting in her home office in Karachi’s Clifton area.
Rasool said political uncertainty has a huge impact on stock fundamentals. Recalling how the stock market had reacted to the arrest of Khan, she said a lot of stocks were oversold and a lot of investors had opted for selling their holdings in panic.
In their Women’s Day message, Alavi, Doni and Rasool said women, who make up half of Pakistan’s total population, should at least start learning about making investments in stocks for long-term gains.
“The IMF guys are right now in the country, so things are on the upward trajectory. If you’re still on the fence, on the sidelines, at least equip yourself with the right knowledge,” Doni urged.