Pakistan says no basis for US objection to construction of Iran gas pipeline

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Updated 07 March 2024
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Pakistan says no basis for US objection to construction of Iran gas pipeline

  • On February 23, the Pakistani cabinet approved the construction of an 80-kilometer segment of the gas pipeline
  • $7.5-billion project has faced repeated delays since it was conceived in 1990s to connect Iran to Pakistan and India

ISLAMABAD: Pakistan said on Thursday it had decided to initiate work on an 80-kilometer-long segment of the Pakistan-Iran pipeline, with “no room for any objections” from a third party like the United States since the project was being constructed within Pakistani territory.

The $7.5-billion project for 2,775-kilometer (1,724 mi) pipeline has faced repeated delays since it was conceived in the 1990s to connect Iran’s giant South Pars gas field to consumers in energy-hungry Pakistan and India.

Pakistan has pursued the pipeline as a way of alleviating severe energy shortages that have crippled the economy. At the same time, Islamabad badly needs the billions of dollars it receives in aid from the United States, which has steadfastly opposed the project, saying it could violate sanctions imposed on Iran over nuclear activities Washington suspects are aimed at developing an atom bomb. Iran denies this.

On February 23, Pakistan approved construction of part of the pipeline amid fears of a potential $18 billion penalty for failing to complete the project on time.

“The cabinet of Pakistan decided, a few days ago, to start work on 80 kilometers of Pakistan-Iran pipeline, and this is the beginning of construction of the pipeline and it is in conformity with our commitment to the Iran-Pakistan pipeline,” Mumtaz Zahra Baloch, foreign office spokesperson, said at a weekly briefing on Thursday, in response to a question on whether Islamabad had contacted Washington on the decision to begin constructing the pipeline.

“And since this pipeline is being constructed inside Pakistani territory, we do not believe there is room for any objections by any third party at this stage.”

India, unlike Pakistan, quit the project in 2009, citing costs and security issues — a year after it signed a nuclear deal with Washington.

Pakistan, for its part, has made little progress on its section of the line for lack of funds and warnings it could be in violation of US sanctions on Iran, which sits on the world’s largest reserves of gas. Iran has spent hundreds of millions of dollars and nearly completed the 900-km (560 mile) pipeline to the Pakistan border.

WAR IN GAZA

Speaking on the situation in Gaza, Baloch said Pakistan welcomed the extraordinary session of the Council of Foreign Ministers (CFM) held on Wednesday in Jeddah, and supported CFM’s “strong condemnation” of Israeli aggression against civilians in the Gaza Strip and the Palestinian Territory.

Israel has killed over 30,000 Palestinian men, women, and children since October 2023, according to the Gaza Health Ministry, while over 72,100 Palestinians have been injured in the war, which Israel refuses to call off despite growing calls from Muslim states, the United Nations, and global peace activists.

“The CFM has held the occupying power fully responsible for the ongoing genocide of civilians in Gaza and we join their call for an immediate and unconditional ceasefire and cessation of Israeli aggression and the provision of unimpeded and adequate humanitarian, medical, and relief programs,” the spokesperson said, adding that Pakistan had also called for the provision of water and electricity and the opening of humanitarian corridors to deliver urgent aid.

“As we move toward the holy month of Ramadan, we call for urgent relief to the people of Palestine and unrestricted access to Palestinians to pray in the holy Al-Aqsa Mosque,” she added.

Baloch said Pakistan believed that the UN Security Council was mandated under the UN Charter to play its role in bringing an end to Israeli aggression. 

“We have been engaged with all members of the United Nations Security Council and we have urged them to play their part in bringing an end to this atrocity,” she added.

The spokesperson said the main hurdle in the provision of assistance was Israeli authorities who had closed the normal routes for the provision of assistance, including the Rafah border.

Baloch said Pakistan has sent six shipments of humanitarian assistance to Gaza, five of them through the Rafah border and one which was airdropped with the help of Jordanian authorities. 

“Our assistance has been in the form of medicines, tents, and food,” she added.


Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence

Updated 28 June 2025
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Pakistan tops global emerging market rankings in sovereign risk improvement — Bloomberg Intelligence

  • Government calls the development ‘a resounding signal’ to investors about Pakistan’s improving economy
  • It attributes the new outlook to economic stabilization, structural reforms and successful IMF engagement

KARACHI: Pakistan has recorded the world’s sharpest decline in sovereign default risk over the past year, topping Bloomberg Intelligence’s Global Emerging Market (EM) Rankings for credit risk improvement, according to new data cited by a senior finance official on Saturday.

The data, published by Bloomberg’s research arm, showed that Pakistan’s credit default swap-implied probability of default fell from 59 percent to 47 percent over the past 12 months, a drop of 11 percentage points. The change marks the biggest reduction among tracked emerging markets, outpacing countries like Argentina, Tunisia and Nigeria, as default risk rose in others such as Egypt, Gabon and Turkiye.

Credit default swaps (CDS) are insurance-like financial contracts that allow investors to hedge against the risk of a government failing to repay its debt. Issued and traded by large financial institutions, these contracts pay out in the event of a default. The higher the cost of a CDS, the greater the perceived risk. Bloomberg Intelligence uses CDS pricing to assess a country’s sovereign risk in its Global EM Rankings.

“Pakistan stands out globally as the most improved economy in terms of reduction in sovereign default risk,” said Khurram Schehzad, adviser to the finance minister, in a social media post. “This is a resounding signal to global investors: Pakistan is not only back on the map— it is moving forward with stability, credibility, and reform at its core,” he added.

Bloomberg Intelligence is a highly regarded financial data and media company widely used by global investors, analysts and institutions.

The improvement in Pakistan’s risk profile comes after the South Asian nation narrowly avoided a sovereign default in 2023. With dwindling reserves and mounting debt repayments, Islamabad secured a short-term bailout from the International Monetary Fund (IMF) with the support of key allies including Saudi Arabia, the United Arab Emirates and China.

Since then, Pakistan has undertaken a series of IMF-recommended structural reforms and fiscal adjustments aimed at stabilizing the economy.

Credit rating agencies such as Standard & Poor’s and Fitch have acknowledged the progress with improved outlooks, while the government has prioritized timely debt servicing and macroeconomic discipline.

Schehzad attributed the improved outlook to “macroeconomic stabilization, structural reforms, successful IMF engagement and timely debt repayments,” noting that investor confidence had begun to return.


Rains and floods kill 19 in Khyber Pakhtunkhwa, 12 in Punjab as extreme weather hits Pakistan

Updated 27 min 28 sec ago
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Rains and floods kill 19 in Khyber Pakhtunkhwa, 12 in Punjab as extreme weather hits Pakistan

  • Authorities in KP call Swat the most affected district where 13 people lost their lives in flash floods
  • The Met Office warns the risk of heavy rains and floods remains high until the middle of the next week

PESHAWAR/KARACHI: At least 19 people have been killed and six injured in the past 48 hours in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province while heavy rains claimed another 12 lives in the most populous Punjab province, provincial disaster authorities said on Saturday.

KP’s Provincial Disaster Management Authority (PDMA) said that a total of 56 houses had been damaged in the region — 50 partially and six completely — while rain-related incidents were reported from various districts including Swat, Abbottabad, Charsadda, Malakand, Shangla, Lower Dir and Torghar.

“In the past 48 hours, rain, strong winds, flash floods and landslides in Khyber Pakhtunkhwa province have resulted in the deaths of 19 people and injuries to 6 others,” the PDMA said in a statement.

A rescue worker rows a raft while searching for survivors, after tourists, who were on a picnic, were swept away by overflowing floodwaters in the Swat River, in Swat Valley in Pakistan on June 27, 2025. (REUTERS)

“The most affected district was Swat, where 13 people died and six others were injured,” it added.

The overall casualties in the province included six men, five women and eight children.

Local administrations have been instructed to provide immediate relief to affected families and ensure medical care for the injured.

The ongoing spell of rains, which began on June 25, has also claimed 12 lives in Punjab, the country’s most populous province, and caused delays in railway operations in the southern Sindh province.

“Twelve people died and 39 were injured in various accidents,” the Punjab PDMA said in a statement. “Majority of deaths were caused by the collapse of roofs and walls.”

A youngster rides his bicycle on a street during heavy rainfall, in Rawalpindi, Pakistan, on June 27, 2025. (AP)

Punjab PDMA chief Irfan Ali Kathia urged citizens to avoid unnecessary travel and not to stay in dilapidated homes during bad weather.

Commuters make their way through a flooded street following heavy rainfall in Hyderabad, in Sindh province on June 27, 2025. (AFP)

The Pakistan Meteorological Department has warned that the risk of heavy rains and possible flash floods will remain high until at least Tuesday.

Babar Raza, a spokesperson for Pakistan Railways, told Arab News the weather had affected the railway signaling system, while the speed of trains had been reduced for safety reasons.

“As a result, some trains are reaching their destinations with a delay of three to four hours,” he said. “No trains have been canceled so far.”

Pakistan, home to over 240 million people, is considered one of the world’s most vulnerable countries to the effects of climate change and faces extreme weather events with increasing frequency.

Last month, at least 24 people were killed in severe storms across the country, which has already experienced multiple extreme weather incidents this year, including hailstorms and spring downpours.


Pakistan arrests two for defrauding citizens with fake jobs in Saudi Arabia, United Kingdom

Updated 28 June 2025
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Pakistan arrests two for defrauding citizens with fake jobs in Saudi Arabia, United Kingdom

  • The suspects arrested in the Pakistani city of Multan have been accused of human smuggling
  • The Federal Investigation Agency says both men extorted money and were involved in visa fraud

KARACHI: Pakistani authorities have arrested two men accused of human smuggling after they defrauded citizens with false promises of jobs in Saudi Arabia and the United Kingdom, officials said on Saturday, as the country intensifies its crackdown on trafficking networks following a series of deadly migrant boat disasters.

The arrests, made by the Federal Investigation Agency (FIA) in Multan, come amid Pakistan’s broader campaign to curb human smuggling. The issue has drawn significant attention following recent tragedies in the Mediterranean, including shipwrecks off Greece, Libya and Morocco involving scores of Pakistani nationals.

“The accused, Muhammad Muzammil and Sher Khan, extorted large sums of money from citizens by falsely promising overseas employment opportunities,” the FIA said in a statement. “Muzammil took Rs852,000 [$2,982] from a victim under the pretense of securing a job in Saudi Arabia, while Sher Khan collected Rs2 million [$7,000] by offering fake employment in the UK,” it continued. “Both failed to deliver and went into hiding after collecting the money.”

The statement noted that the suspects were also involved in visa fraud.

Prime Minister Shehbaz Sharif has vowed to crack down on the criminal networks exploiting vulnerable people with false hopes of better lives abroad. His administration began focusing on the issue after more than 200 Pakistanis were presumed dead in a shipwreck off Greece among hundreds of other illegal migrants trying to reach European shores.

Earlier this year, over 40 Pakistanis were feared drowned near Morocco’s coast, while the International Organization for Migration said at least 60 migrants, including Pakistanis, were feared dead after a pair of shipwrecks off the coast of Libya in June.

The FIA said on Saturday that both suspects were arrested from separate locations in Multan and have been taken into custody for further investigation. It added that its crackdown on human smugglers remains ongoing.


Pakistani province probes alleged sale of UNICEF-tagged soap for anti-polio campaign

Updated 35 min 47 sec ago
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Pakistani province probes alleged sale of UNICEF-tagged soap for anti-polio campaign

  • The development comes days after officials seized over 200 UNICEF-tagged soap bars from Peshawar market
  • UNICEF’s communication specialist did not respond to multiple queries seeking a comment on the matter

PESHAWAR: Authorities in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province are probing the alleged sale of soap bars, which were provided by the United Nations Children’s Fund (UNICEF) for the country’s campaign against polio, at a market in Peshawar, officials said on Friday.

The comments came after the seizure of over 200 soap bars at the Faqeerabad market in the provincial capital, which bore the “not-for-sale” marking, according to Additional Assistant Commissioner Azimullah Mehsud.

The local administration acted on a tip-off about UNICEF-tagged soap bars being “diverted” to the open market. A preliminary investigation suggested the consignment originated in the southern Sindh province.

Authorities arrested a shopkeeper on June 25, who was selling these soap bars on Facebook and in the local market in the northwestern Pakistani city.

“According to initial investigations, he [the suspect] told us that they got this supply [of soaps] from Sindh,” Mehsud told Arab News. “The person we have arrested told us he gives this [to people] on Facebook marketplace and said, ‘I’m an Afghan national’.”

This handout photo, released by the Office of the Deputy Commissioner Peshawar, shows Additional Assistant Commissioner Peshawar Azimullah Mehsud with cartons of UNICEF-tagged soap bars allegedly recovered during a raid at the Faqeerabad market in Peshawar, Pakistan on June 25, 2025. (Handout)

Mehsud said the authorities recovered three cartons during the raid, with a total of 216 soap bars. He said the suspect claimed to have additional stock.

“Here people used to buy [a soap bar] from him at a cost of Rs40 or Rs45 and then used to change its packaging at Rs3, and then [they were] being supplied to Jalalabad, Afghanistan and here in Pakistan, I think, including D.I. Khan and many other places,” he said.

“When we contacted him, he [suspect] told us to come tomorrow and he will arrange 3,000 more [soap bars] for us. Then we told the anti-corruption to locate the link to his network.”

This handout photo, released by the Office of the Deputy Commissioner Peshawar, shows UNICEF-tagged soap bars allegedly recovered during a raid at the Faqeerabad market in Peshawar, Pakistan on June 25, 2025. (Handout)

Arab News reached out to UNICEF’s communication specialist, Zia-ur-Rehman, but did not receive a response to its queries seeking comment on the matter.

Polio is a paralyzing disease with no cure, making prevention through vaccination critical. After a significant decline over the past decades, Pakistan witnessed an intense resurgence of the poliovirus in 2024, with 74 cases reported. According to Pakistan’s polio program, the country has reported 13 cases of the virus so far this year.

This handout photo, released by the Office of the Deputy Commissioner Peshawar, shows UNICEF-tagged soap bars allegedly recovered during a raid at the Faqeerabad market in Peshawar, Pakistan on June 25, 2025. (Handout)

The KP anti-corruption department plans to send an open letter to UNICEF and the Sindh provincial administration to further investigate the matter.

Humayun Khan, the Peshawar circle officer of the anti-corruption department, confirmed to Arab News that his department had launched an investigation into the case.

“It [investigation] will go ahead properly with a procedure,” he said. “It will take time.”


Suicide attack kills 13 soldiers in Pakistan’s northwest — officials

Updated 28 June 2025
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Suicide attack kills 13 soldiers in Pakistan’s northwest — officials

  • The attack injured 29 others, including civilians, in North Waziristan district 
  • Hafiz Gul Bahadur group of the Pakistan Taliban claimed the suicide attack

PESHAWAR: A suicide attack claimed by the Pakistani Taliban killed 13 soldiers and wounded 29 people, including civilians, local government officials and police officers told AFP.

“A suicide bomber rammed an explosive-laden vehicle into a military convoy. The blast killed 13 soldiers, injured 10 army personnel and 19 civilians,” said a local government official in North Waziristan district of Khyber Pakhtunkhwa province, who asked not to be named because he was not authorized to speak to the media.

“The explosion also caused the roofs of two houses to collapse, injuring six children,” a police officer posted in the district told AFP.

The condition of four injured soldiers is critical, an administrative official added.

The attack was claimed by the suicide bomber wing of the Hafiz Gul Bahadur armed group, a faction of the Pakistan Taliban.

Pakistan has witnessed a sharp rise in violence in its regions bordering Afghanistan since the Taliban returned to power in Kabul in 2021, with Islamabad accusing its western neighbor of allowing its soil to be used for attacks against Pakistan — a claim the Taliban deny.

Around 290 people, mostly security officials, have been killed in attacks since the start of the year by armed groups fighting the government in both Khyber Pakhtunkhwa and Balochistan, according to an AFP tally.