Pakistan finance minister meets US envoy, shares plans to meet international financial obligations

Pakistan’s Finance Minister Ishaq Dar (right) and US Ambassador Donald Blome meet in Islamabad, Pakistan on May 26, 2023. (Photo courtesy: @MIshaqDar50/Twitter)
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Updated 27 May 2023
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Pakistan finance minister meets US envoy, shares plans to meet international financial obligations

  • The meeting comes as Pakistan makes desperate attempts to secure crucial IMF funds before budget in June
  • Negotiations over key budget targets are one of the last hurdles before the IMF approves a $1.1 billion bailout

ISLAMABAD: Pakistan’s Finance Minister Ishaq Dar on Friday called on US Ambassador Donald Blome and shared with him the government’s policies for growth and stability, Pakistani state media reported, amid an economic meltdown in the South Asian country.

Pakistan has been making desperate efforts to secure a $1.1 billion loan tranche from the International Monetary Fund (IMF), with its forex reserves dropping to critically low levels, currency depreciating and inflation hovering at a historic high. The funding is a part of a $6.5 billion bailout package the IMF approved in 2019, which is due to end in June, prior to the budget.

Negotiations over key budget targets such as the fiscal deficit are one of the last hurdles before the IMF approves a staff-level agreement to release $1.1 billion in funding, which has been delayed since November, that is crucial for Pakistan to resolve an acute balance of payments crisis.

During the meeting, Dar and Blome discussed matters of mutual interest and enhancing the existing bilateral relations between both countries, the state-run APP news agency reported.

“He (Dar) shared economic policies and priorities of the government to address the challenging economic environment and set the economy to stability and growth,” the report read.

“He informed Ambassador Blome about the government’s pragmatic plans related to revenues and expenditures for meeting its national as well as international financial obligations.”

Since January, several rounds of talks between the IMF and Pakistan have failed to revive the program, leaving the cash-strapped South Asian nation with barely a month’s cover for import payments.

The situation has led to fears of a default on the country’s international financing obligations as the IMF program nears its expiry on June 30.

Ambassador Blome expressed confidence in the policies and programs of the government for economic sustainability and socio-economic uplift of the masses, according to the report.

He extended his support to further promote bilateral economic, investment and trade relations between both countries.


Pakistanis call on Delhi, Islamabad to engage in ‘serious dialogue’ over Kashmir

Updated 14 May 2025
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Pakistanis call on Delhi, Islamabad to engage in ‘serious dialogue’ over Kashmir

  • Attack in Indian-administered Kashmir sparked armed conflict between India, Pakistan last week
  • Root cause of the conflict between two nations is disputed territory of Kashmir claimed by both

KARACHI: Residents in Pakistan’s largest city Karachi said on Wednesday that India and Pakistan must engage in serious dialogue over the Kashmir issue, as they resumed their daily routines four days after a ceasefire agreement between the two countries.

The spark for the latest chaos was an April 22 attack in Indian Kashmir that killed 26 people, most of them tourists.

New Delhi blamed the incident on “terrorists” backed by Pakistan, a charge denied by Islamabad. India and Pakistan have fought three major wars and been at loggerheads since their independence.

“The foremost matter is Kashmir itself. We, Pakistan, are clearly stating that we are ready to talk, and India must approach this with sincerity,” said Karachi resident Shams Keerio.

“Without serious dialogue that includes negotiations over Kashmir, these talks will not succeed.”

Another Karachi resident, Amir Nisar, said the issue should be resolved according to UN resolutions. He also called on India to respect the ceasefire brokered by Washington between the two states.

“If they do not respect it, then I believe that if a real war breaks out between Pakistan and India, it can lead to the loss of lives of millions of people,” he said.

“[Indian PM] Narendra Modi, being from a big country, should be aware that he should refrain from war.”

The two nuclear-armed nations have fought two out of three wars over the disputed Himalayan territory of Kashmir. India and Pakistan both claim territory in full but govern only parts of it.


One killed, 10 wounded in grenade attack on pro-army rally in Pakistan

Updated 14 May 2025
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One killed, 10 wounded in grenade attack on pro-army rally in Pakistan

  • About 150 people in cars, motorcycles in Quetta were celebrating Pakistan's retaliatory strikes against India
  • No group immediately claimed responsibility but suspicion is likely to fall on separatist Baloch Liberation Army

QUETTA: A suspected militant on a motorcycle threw a hand grenade at participants of a pro-army rally in southwestern Pakistan on Wednesday, killing at least one person and wounding 10 others, police and hospital officials said.

The attack occurred in Quetta, the capital of Balochistan province, said local police chief Mohammad Malghani.

He said about 150 people in cars and on motorcycles were heading to a hockey ground in the city for a government-organized event to celebrate the military’s recent retaliatory strikes inside India when the man threw a grenade at them.

Wasim Baig, a spokesman at the Civil Hospital, said at least two of those wounded were in critical condition.

No group immediately claimed responsibility, but suspicion is likely to fall on the Baloch Liberation Army, a separatist group that has waged a years-long insurgency in the province.

Pro-army rallies have been held across Pakistan since Sunday, when the United States brokered a cease-fire between Pakistan and India, which were engaged in one of their most serious confrontations in decades.


Pakistan resolves to enhance UAE ties into ‘mutually beneficial economic partnership’

Updated 14 May 2025
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Pakistan resolves to enhance UAE ties into ‘mutually beneficial economic partnership’

  • Shehbaz Sharif speaks to UAE President Sheikh Mohammed bin Zayed Al-Nahyan
  • Pakistan PM thanks UAE for playing constructive role to defuse South Asia tensions

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday reaffirmed his country’s resolve to strengthen Pakistan’s ties with the United Arab Emirates (UAE) into a “mutually beneficial economic partnership,” his office said in a statement.

Sharif’s government has moved closer to the UAE in recent months in its efforts to attract international investment and ensure stability for Pakistan’s fragile $350 billion economy.

In January last year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said.

Sharif spoke to UAE President Sheikh Mohammed bin Zayed Al-Nahyan over the telephone, the Pakistani Prime Minister’s Office (PMO) said. He noted “with great satisfaction” that bilateral cooperation between the two countries was progressing, especially in the areas of economy and investment.

“He [Sharif] renewed his strong resolve to transform the existing Pakistan-UAE ties into a mutually beneficial economic partnership,” the statement said.

Both leaders discussed Pakistan’s recent tensions with India which triggered an armed conflict between the two nations recently.

India and Pakistan pounded each other with missiles, drones, and artillery fire last week. The conflict erupted when India fired missiles into Pakistan last Wednesday after weeks of tensions over an attack on tourists in Indian-administered Kashmir on Apr 22. New Delhi blamed the attack on Pakistan, while Islamabad denied involvement.

US President Donald Trump announced Washington had brokered a ceasefire between the two states on Saturday after Pakistan launched retaliatory strikes.

“During their warm and cordial conversation, the Prime Minister conveyed profound gratitude for UAE’s diplomatic efforts and constructive role to defuse the recent crisis in South Asia,” the PMO said.

“He added the UAE had always stood by Pakistan, through thick and thin.”

Sharif’s office said he reaffirmed Pakistan’s commitment to uphold the ceasefire understanding, as well as its resolve to defend its sovereignty and territorial integrity at all costs.

“The UAE President welcomed the ceasefire understanding, while appreciating Pakistan’s efforts for peace,” the PMO said.

Separately, Sharif also spoke to UN chief Antonio Guterres to thank him for his efforts to defuse tensions in South Asia, the PMO said.

The UAE holds immense importance for Pakistan, given that it is Islamabad’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 foreign ministry.

It is also home to more than a million Pakistani expatriates. Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.


Pakistan says willing to work with India, global partners to counter ‘terrorism’

Updated 14 May 2025
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Pakistan says willing to work with India, global partners to counter ‘terrorism’

  • Islamabad has always denied New Delhi's allegations it supports militants who launch attacks against it
  • Disputed Kashmir territory has been the root cause of conflict between India and Pakistan since 1947

ISLAMABAD: Pakistan's Foreign Minister Ishaq Dar on Wednesday said Islamabad was willing to work with New Delhi and global partners to counter "terrorism," as his country's fragile ceasefire with India continues to hold after last week's armed conflict.

India fired missiles into what it says were "terrorist" camps in Pakistan last Wednesday, stoking tensions between the two neighbors. India targeted Pakistani cities in Azad Kashmir and Punjab after weeks of tensions over an attack in Indian-administered Kashmir on April 22. New Delhi blamed the attack on Pakistan, while Islamabad denied involvement.

Pakistan said it downed five Indian fighter jets last Wednesday and conducted retaliatory strikes on Saturday. Hours later, US President Donald Trump announced both sides had agreed to a ceasefire brokered by Washington.

India accuses Pakistan of sheltering militants that launch attacks on its soil, especially in the part of the disputed Kashmir territory that New Delhi administers. Pakistan denies the allegations and urges Delhi to give Kashmiris the right to self-determination.

"I think we can work together because if they [Indian authorities] are so allergic not to work together against this [terrorism] menace, we can have two, three more partners," Dar, who also serves as Pakistan's deputy prime minister, told BBC News Hindi.

https://x.com/BBCHindi/status/1922288613078806945

Dar did not elaborate on which countries he meant when he said "partners."

"Global partners to deal with it," the minister added.

He pointed out that Pakistan had suffered from militant attacks and was a "frontline ally" in the so-called War on Terror.

"We have lost 90,000 people but then it takes two to tango," he continued. "We have to work together to eliminate the menace of terrorism."

Kashmir has been the root cause of conflicts between India and Pakistan since both countries gained independence from British rule in 1947.

India and Pakistan have fought two out of three wars over Kashmir. Both countries claim the Himalayan region in full but administer only parts of it.

India accuses Pakistan of arming and funding separatist militants in Kashmir. Islamabad denies the allegations and says it only provides moral and diplomatic support to Kashmiris.


Saudi crown prince hopes India-Pakistan ceasefire restores ‘calm’ between neighbors

Updated 14 May 2025
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Saudi crown prince hopes India-Pakistan ceasefire restores ‘calm’ between neighbors

  • India and Pakistan exchanged missiles, drone attacks and artillery fire last week before agreeing to ceasefire
  • Saudi Arabia was one of several countries that defused tensions between nuclear-armed India and Pakistan

ISLAMABAD: Saudi Crown Prince Mohammed bin Salman on Wednesday hoped the recent ceasefire agreement between India and Pakistan would contain escalation and “restore calm” between the two neighbors, the Saudi Press Agency (SPA) reported.

Pakistan has credited Saudi Arabia and several other nations for playing a constructive role in defusing its tensions with India last week after fighting erupted between the two. US President Donald Trump announced on Saturday that Washington had brokered a ceasefire between India and Pakistan, calming fears of an all-out war between the nuclear-armed states.

The Saudi crown prince welcomed the ceasefire during his opening address at the GCC-USA summit in Riyadh on Wednesday, which was held in Trump’s presence.

“We welcome the ceasefire agreement between Pakistan and India and hope that it will contain escalation and restore calm between the two countries,” the crown prince said as per the SPA.

The Saudi crown prince said the Kingdom aimed to work with Trump and GCC countries to de-escalate tensions in the region, end the war in Gaza and seek a “lasting and comprehensive solution” to the Palestinian cause.

“Our objective is to ensure security and peace for the peoples of the region,” he said. “We reiterate our support for all endeavors aimed at resolving crises and halting conflicts through peaceful means.”

The fragile ceasefire has temporarily halted hostilities with India and Pakistan trading blame for the conflict.

The flare-up between Pakistan and India, one of the most serious in recent years, followed a deadly attack in Indian-administered Kashmir last month and escalated into missile strikes, drone attacks and cross-border fire over the past week.

India and Pakistan claim the Kashmir region in full but administer only parts of it. Both countries, bitter rivals, have fought two out of three wars over Kashmir since securing independence from British colonial India in 1947.