Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly

President Donald Trump signs an executive order in the Oval Office of the White House in Washington on January 20, 2025. (AP/File)
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Updated 28 January 2025
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Experts say Washington’s move to suspend foreign aid won’t impact Pakistan significantly

  • US last week paused all foreign assistance to countries, saying will review if they are consistent with foreign policy
  • Washington has invested in Pakistan’s critical energy, economic development and agriculture sectors over the years

KARACHI: Pakistani economists and former diplomats on Tuesday brushed aside the new American administration’s decision to suspend foreign assistance for countries around the world including Pakistan, saying it will not have a significant impact on the South Asian country and could even force Islamabad to undertake much-needed economic reforms. 

US State Department confirmed on Sunday that Washington has paused all US foreign assistance funded by or through the State Department and US Agency for International Development (USAID), adding that America would review all foreign assistance programs to ensure if they are efficient and consistent with US foreign policy.

The program affects all recipient countries, including Pakistan, where numerous US-funded programs are currently in progress. For over 70 years, the US-Pakistan development partnership has been instrumental in supporting sectors such as energy, economy, agriculture, education and health. The South Asian country has been grappling with an economic crisis that in 2023 almost pushed it toward a sovereign default. 

Washington has invested over $205 million in Pakistan’s energy sector, as per USAID’s website and has also provided assistance to economic development programs such as the Investment Promotion Activity ($16.8 million) and the Pakistan Private Investment Initiative ($43.5 million), aimed at enhancing Pakistan’s business climate and supporting small and medium enterprises (SMEs).

“I’m not sure if the suspension of aid will be very harmful because the real harm to the economy is coming from our own policy governance,” Kaiser Bengali, a leading Pakistani economist, told Arab News. 

“On the whole at the macro level, we have seen that in the last 40 years, foreign assistance has not contributed to the economy.”

Bengali said Pakistan’s current economic issues were largely self-created.

“We have created this deficit, balance of trade, balance of payments [crisis],” he said. “We have created a huge debt burden, borrowing loan after loan for the past thirty years and not investing debt funds to increase the productivity of the economy.” 

Pakistan’s Information Minister Ataullah Tarar and Khurram Schehzad, adviser to the government on finance, did not respond to Arab News’ request for comment. Pakistan’s foreign officer spokesperson Shafqat Ali Khan said he would address the queries during the foreign office’s weekly press briefing.

Zamir Akram, a former Pakistani ambassador, agreed with Bengali. He said Washington’s assistance to Pakistan is “limited” and its overall impact on the country’s economy is “negligible.”

“Since the US assistance for Pakistan is less and its funding is very low, it doesn’t have great impact,” Akram told Arab News. “We don’t know the amount of project-based assistance but its overall national assistance for Pakistan is negligent. So that’s why it won’t make any impact.”

However, Ahmed Bilal Mehboob, founder and president of Islamabad-based think tank Pakistan Institute of Legislative Development and Transparency (PILDAT), emphasized that the suspension could have significant consequences for Pakistan’s civil society and development sectors. 

Mehboob said an estimated 10,000 to 15,000 people were working in organizations working to protect democracy and human rights in Pakistan.

“If funding is halted in the future, not only will thousands be left unemployed but governance and human rights work will also be severely affected,” Mehboob told Arab News. 

However, he cited India’s example where civil rights groups grew indigenously, saying that they began receiving minimal foreign funding much later. 

“Sincere people will continue their work using local resources,” he said. 

Bengali said there might be a silver lining to the suspension of foreign assistance, adding that it may prompt Pakistan to seek local solutions and implement necessary reforms.

“If the entire world stopped funding Pakistan, that would actually be a big favor to the country,” Bengali said. “It would force us to make the necessary reforms and find our own solutions.”


Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy

Updated 7 min 41 sec ago
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Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy

  • Pakistan had been due to host the tournament in 2008 but was thrown into cricketing isolation by a security crisis
  • Major teams have toured Pakistan as security improved, opening way for cricket-mad nation to stage the tournament.

KARACHI: Pakistan skipper Mohammad Rizwan said on Tuesday the Champions Trophy would be a “historic occasion” for the country, a day before the hosts kick the tournament off against New Zealand.
The Champions Trophy is the first major cricket event hosted by Pakistan in nearly three decades and is regarded as second only to the World Cup in the one-day game.
“A global event has come to Pakistan after 29 years so I think the whole nation should enjoy this historic occasion,” Rizwan told a news conference on the eve of the tournament, which runs until March 9.
Pakistan had been due to host the tournament in 2008 but was thrown into cricketing isolation by a security crisis as violence spilled over from the long-running war in neighboring Afghanistan.
Gunmen then attacked a bus carrying Sri Lanka’s team in Lahore the following year, wounding several players and killing eight policemen and civilians.
However, major teams have toured Pakistan in the past five years as security improved, opening the way for the cricket-mad nation to stage the tournament.
“Pakistan has suffered enough and for a long time, but we have also won during this phase like the 2017 Champions Trophy and the 2009 Twenty20 World Cup,” Rizwan said.
Still, the build-up has not been without problems after neighbors and arch-rivals India refused to play in Pakistan over long-standing political tensions. India will instead play their matches in Dubai.
Pakistan’s opponents in the tournament opener in Karachi beat them twice this month during a tri-series event that included South Africa.
“There shouldn’t be any doubts on our performance,” Rizwan said. “We may not have played on our abilities but we all want to win the event for the country and people.”
Rizwan hoped to have pace bowler Haris Rauf on the pitch after he suffered chest muscle strain in the match against New Zealand in Lahore last week.
“Haris bowled 80 percent yesterday and today he is bowling at his full rhythm and told us that he is not feeling any discomfort, so I hope he is fully fit,” Rizwan said.


Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

Updated 5 sec ago
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Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

  • Pakistan has signed MoUs to ensure business-to-business collaborations with Gulf countries
  • Muhammad Aurangzeb Pakistan wants trade, investment to be the engines of economic growth

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb has said Pakistan sees huge potential in the Gulf Cooperation Council (GCC) market, as the country plans to double its exports in the next three to five years, according to details of his media interviews shared on Tuesday officially.
The minister and the governor of Pakistan’s central bank, Jameel Ahmad, traveled to Saudi Arabia last Saturday to attend the two-day Alula Conference for Emerging Market Economies 2025, which brought together global financial leaders, including the managing director of the International Monetary Fund, Kristalina Georgieva.
Pakistan has already taken several steps to benefit from the Middle Eastern and Chinese markets, signing memorandums of understanding to ensure business-to-business collaborations and setting up special economic zones to attract foreign investment for greater employment and industrial development.
“Our ambition is that we are roughly about $30 billion plus in terms of exports, and we want to double in the next sort of three to five years,” Aurangzeb said in interviews with Asharq Business and Bloomberg on the sidelines of the Alula Conference in Saudi Arabia.
According to the Pakistan Bureau of Statistics, the country sold $30.7 billion worth of goods in the international market by the end of the last fiscal year in June 2024, showing an 11 percent growth over the $27.7 billion in exports made in 2023.
In the first seven months of the current fiscal year until January, Pakistan’s exports rose 10 percent to $19.6 billion compared with $17.8 billion in the corresponding period a year ago.
The finance minister said his country had progressed in terms of macroeconomic stability in the past 12 to 14 months, pointing out that it was now trying to turn trade and investment into the engines of its economic growth.
“Going forward, I see GCC [Gulf Cooperation Council], where we are sitting right now, we see huge export potential in these markets,” he continued.
The GCC is a regional organization comprising Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman.
Pakistan’s fragile economy has shown signs of stability in the past year, with inflation easing to 2.41 percent in January, creating room for the central bank to reduce borrowing rates by a cumulative 1,000 basis points since June to 12 percent to spur growth.
The State Bank of Pakistan expects 2.5 to 3.5 percent growth in the current fiscal year ending in June.
“We want to now consolidate and use this and the fiscal space which is available to prioritize expenditures that can then help our trajectory as we move forward,” said the minister.


Boy fishmonger in Karachi becomes internet sensation

Updated 16 min 43 sec ago
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Boy fishmonger in Karachi becomes internet sensation

  • Huzaifa Khan’s vlogs feature conversations with father on daily runs buying and selling fish
  • Speech impediment for which Khan is seeking therapy has not deterred him from making videos

KARACHI: On a Sunday morning earlier this month, twelve-year-old Huzaifa Khan walked through the narrow alleys of Karachi’s Frontier Colony, a portable microphone in his hand as his father pushed a wooden cart laden with fish.

The duo had just brought the catch fresh from the port city’s bustling seafood market and were now on their way to sell it in neighborhood markets and also make home deliveries. 

Along the way, as the father-son make their daily journey, Khan records conversations between them, talking about their lives as fishmongers and small businessmen trying to seek a living on Karachi’s mean streets. The videos, which Khan began posting in February last year, have made him an instant Internet hit. Vlogs uploaded to the ‘Khanvlogs240’ Instagram page have thousands and sometimes millions of views, with the comments full of people praising him and his father for working to make an honest living. 

Innocent questions from the bespectacled Khan, and a speech impediment that causes a minor stutter, has endeared him to a sizable online audience, which has in turn been a boon for fish sales.

“Earlier, my father used to buy fish from here [fish market] and sell it on a cart only but since online orders started coming in, we now also take fish and deliver it to people’s homes,” Khan told Arab News. 

“People call and ask us to bring some specific fish, so we provide them with the fish they want.”

Selling fish isn’t an easy task, especially when one is also a student and a vlogger. 

Khan says he wakes up every day at the crack of dawn, offers his prayers, attends school and then joins his father in the afternoon to sell fish. On the weekends, when there’s no school, he accompanies his father and elder brother Talha Ubaid on early morning runs to the fish market 14 kilometers away from their home to make purchases. 

In the evenings, he also helps his father and brother run a cart selling French fries. 

“I WILL BECOME AN ENGINEER”

Khan’s journey to social media success began in October 2023 after the family arrived in the southern port city of Karachi from a remote village in the northwestern city of Swat. His first video, called “Chhoti Si Dukan,” or small shop, was posted in February 2024. 

Since then, he has posted hundreds of videos on different social media platforms.

“Now that I’m making videos, I feel good,” the boy said, as he shushed flies away from the fish on top of his father’s cart. 

In the evenings, fans arrive to meet him at the fries stall and Khan rarely disappoints them.

“When my fans come and take selfies with me, I feel very good,” he said with a smile. 

But despite his newfound online fame, the young fishmonger said education was his priority.

“I help my father and also study,” he said. “I will go to school and become an engineer.”

His father, Nadir Khan, who has two other children, said he always pushed Khan to never neglect his education.

“First of all, there are studies. Studies first and hard work later,” he told Arab News, expressing his gratitude for the recognition his son had received. 

“I am very happy that God has given him so much respect. He comes on screens all over the world,” Nadir said. “When he makes videos with me and conducts my interview, I feel very good.”

Khan hopes to pay it back someday. 

“When I grow up, I won’t let my father work, I’ll only give him rest,” he said. 

“I will earn money and give it to him and ask him and my mother to sit back and relax.”


New Zealand fast bowler Lockie Ferguson to miss the Champions Trophy with a foot injury

Updated 18 February 2025
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New Zealand fast bowler Lockie Ferguson to miss the Champions Trophy with a foot injury

  • Coach Gary Stead calls Ferguson key part of the bowling group who was excited about the tournament
  • His place will be taken by Kyle Jamieson, who played his most-recent ODI match in September, 2023

WELLINGTON, New Zealand: New Zealand has had another setback ahead of the International Cricket Council’s Champions Trophy in Pakistan, losing fast bowler Lockie Ferguson to a foot injury.
Ferguson was injured in a warm-up match against Afghanistan on Sunday. He will return home immediately and his place in the New Zealand squad will be taken by Kyle Jamieson, who played his most-recent one-day international in September, 2023.
The injury to Ferguson follows the loss of another fast bowler, Ben Sears, to a hamstring injury.
“We’re really disappointed for Lockie,” New Zealand coach Gary Stead said. “Lockie is a key part of the bowling group and brings a lot of major tournament experience and we know how much he was looking forward to representing New Zealand at another major event.
“We wish him well for his recovery and hope he is back firing soon.”

Stead said Jamieson has a skill set which makes him an effective replacement for Ferguson.
“Kyle brings plenty of pace and extra bounce which will suit the conditions here in Pakistan,” Stead said. “He’s shown since returning in the (New Zealand domestic cricket) how effective he can be in the shorter forms of the game and he’s bowled with real pace and energy, which is what you’re looking for.”
New Zealand plays its first match in the Champions Trophy against host Pakistan on Wednesday.

 


Pakistan to hold week-long Qur’an recitation event at Shah Faisal Mosque in Ramadan

Updated 20 min 16 sec ago
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Pakistan to hold week-long Qur’an recitation event at Shah Faisal Mosque in Ramadan

  • Fourteen Qur’an reciters from all over the country to take part in competition from Ramadan 21-27
  • Shabeena is an event in which holy Qur’an, which has over 6,000 verses, is recited in up to three nights 

ISLAMABAD: Pakistan’s religion ministry announced on Tuesday it will hold a week-long Qur’an recitation event or ‘Mehfil Shabeena’ at the iconic Shah Faisal Mosque in Islamabad from Ramadan 21-27, saying that renowned reciters of the holy book from all over the country will partake in it. 

Shabeena is an annual event in which the entire holy Qur’an, which has over 6,000 verses, is recited in up to three nights during the last days of Ramadan. Muslims around the world visit mosques frequently in the last ten nights of Ramadan, considered the most blessed of the holy month and in which believers around the world spend late hours saying voluntary prayers and reading the Qur’an.

Among one of these odd-numbered nights, Muslims believe, is the “Night of Power” in which Islam says the first verses of the holy Qur’an were revealed to Prophet Muhammad (peace be upon him). Ramadan in Pakistan is expected to begin either at the end of February or beginning of March, depending on the sighting of the moon.

“Preparations are underway to hold the national Mehfil Shabeena from Ramadan 21-27 under the Ministry of Religious Affairs,” the religion ministry said in a statement.

It said that out of a total of 56 nominated Qur’an reciters from Pakistan’s four provinces, Islamabad, Gilgit-Baltistan and Azad Kashmir areas, only 14 have been selected to take part in the event. 

The ministry said four Qur’an reciters from Punjab, two each from Sindh, Khyber Pakhtunkhwa and Balochistan provinces have been selected for the event. One Qur’an reciter each from GB and Azad Kashmir have been selected. 

The Faisal Mosque is a landmark of Pakistan’s capital Islamabad, spread over 54,000 square feet that can accommodate over 250,000 people at a time.

It is the largest mosque in Pakistan and the fourth largest in the world, breaking from traditional Islamic structures like domes and instead built along clean modern lines resembling the tents used by nomadic Arab Bedouin tribes, with sloping roofs and a unique angular body.