Pakistani FM says Islamabad and Washington entering new engagement after years of strain

Pakistani Foreign Minister Bhutto Zardari speaks during his meeting with Secretary of State Antony Blinken at UN headquarters, May 18, 2022. (AP)
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Updated 21 May 2022
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Pakistani FM says Islamabad and Washington entering new engagement after years of strain

  • Bilawal Bhutto Zardari says United States and his country must move beyond past tensions over neighboring Afghanistan
  • Recalls legacy of his mother and grandfather, calls them “towering figures on world stage” and says he feels “burden of history”

UNITED NATIONS: Pakistan’s new foreign minister says the United States and his country must move beyond past tensions over Afghanistan and are entering a new engagement after years of strained relations under former Prime Minister Imran Khan.

Bilawal Bhutto Zardari, the 33-year-old son of assassinated former Prime Minister Benazir Bhutto, spoke in an interview with The Associated Press in New York, where he was attending meetings this week on the global food crisis at UN headquarters. He has also held talks with top diplomats, including a one-hour discussion with US Secretary of State Antony Blinken.

Bhutto Zardari called the meeting with Blinken “very encouraging and very positive and productive.”

“We believe that Pakistan must continue to engage with the United States at all levels,” he said. “This meeting was indeed an important first step.”

Bhutto Zardari co-chairs one of the two largest parties in Pakistan’s disparate governing coalition, which spans the political spectrum from the left to the radically religious. The coalition removed Khan in a no-confidence vote on April 10. Shahbaz Sharif, the leader of the other major party, replaced Imran Khan as prime minister.

US-Pakistani ties deteriorated under Khan, who as prime minister tapped into anti-American sentiment in Pakistan that has spread ever since the 9/11 terrorist attacks by Al-Qaeda, and the US war on terror. The 2011 American raid that killed Al-Qaeda leader Osama bin Laden in Pakistan angered many hard-liners in the country.

Khan accused the Biden administration of colluding with the opposition to oust him, a claim the administration denies.

Afghanistan also raised mistrust between the two countries. Washington felt Islamabad did too little to help ensure peace as the US and NATO withdrew their troops from Afghanistan; Pakistan insists it did all it could to broker peace and blamed the abrupt US pullout. During the final weeks of the American withdrawal, the Taliban overran Kabul in mid-August and seized power.

Bhutto Zardari said the Pakistan-US relationship in the past had been “too colored by the events in Afghanistan, of the geopolitical considerations, and it’s time for us to move beyond that to engage in a far broader, deeper and more meaningful relationship.”

Under Khan, Pakistan pushed hard for the world to engage with Afghanistan’s new Taliban rulers, and Bhutto Zardari said his country continues to do so.

“Regardless of what we feel about the regime in Afghanistan,” the world can’t abandon the Afghan people and must immediately address the country’s humanitarian crisis and crumbling economy, he said. A total collapse of the Afghan economy would be a disaster for Afghans, Pakistan and the international community, he said, expressing concern that many Afghans would flee the country.

Pakistan is also insisting the Taliban live up to their international commitments that the country not be used for terrorism, that girls and women be able to pursue education, and that they form an inclusive government, he said.

The Taliban, however, have taken a more hard-line turn in recent weeks, imposing new restrictions on women. At the same time, tensions have grown between the Taliban and Pakistan over militants based in Afghanistan carrying out attacks in Pakistan.

Bhutto Zardari said the more the humanitarian crisis is alleviated and the economy is saved from collapse, “the more likely we are to succeed in our pursuit for women’s rights and the more likely we are to succeed in our efforts against terrorism.”

He said his focus in talks with Blinken was on increasing trade, particularly in agriculture, information technology and energy. He said he is looking forward to working with the US on an initiative to empower women, including women entrepreneurs.

On economic, defense and military coordination, “if we continue to engage, then we can move forward in a more positive direction,” Bhutto Zardari said.

Asked about Khan’s anti-US rhetoric, Bhutto Zardari dismissed the ex-premier’s accusation of American collusion, calling it a “fanciful conspiracy theory based on a big lie” to explain his removal.

“I am particularly anti the politics of hate, division and polarization,” the foreign minister said. “If we consistently pursue the politics of `you’re with us or against us,’ whether that’s on an international level or a domestic level, I don’t believe it serves the interests of the people of Pakistan.”

He said he believes Pakistanis understand their country needs to engage with the US and all countries, in order to become democratic and progress economically.

President Joe Biden has strengthened ties with Pakistan’s arch-rival India, but Bhutto Zardari said Pakistan is not “jealous” of their relationship. “We believe the world is big enough for both Pakistan and India,” he said.

Biden will meet Indian Prime Minister Narendra Modi and the leaders of Australia and Japan at a summit in Tokyo on May 24 of the so-called Quad, an Indo-Pacific alliance which China sees as an attempt to contain its economic growth and influence.

Pakistan has a very close economic and military relationship with neighboring China, where Bhutto Zardari is heading to on Saturday. He told the AP he didn’t think the growing relationship with the US would hurt its ties to Beijing.

Pakistan has abstained on UN General Assembly resolutions condemning Russia’s invasion of Ukraine and withdrawal of its troops. Bhutto Zardari said Pakistan used to rely a lot on Ukrainian wheat and fertilizer and has been affected by rising food prices and calls for diplomacy to end the war.

The lives of the Bhutto Zardari family have in many ways reflected their country’s turbulence. Bhutto Zardari took over his mother’s Pakistan People’s Party after she was killed in a suicide bombing in December 2007.

The daughter of Pakistan’s first democratically elected prime minister, Zulfikar Ali Bhutto, who led Pakistan in the 1970s and was overthrown and executed by the military, Benazir Bhutto was Pakistan’s first woman premier and twice served as head of government.

At the time of her assassination, she was rallying in a third bid for premiership. Bhutto Zardari’s life in politics was also shaped by his father, Asif Ali Zardari, who served as Pakistan’s president from 2008 to 2013.

In the interview with the AP, Bhutto Zardari recalled the legacy of his mother and grandfather. He called them “towering figures on the world stage,” and said he feels “the burden of history.”

“What motivates and drives me is the pursuit of their unfulfilled mission,” he said. “I hope that we live up to the expectations of the people of Pakistan” who have longed for true democracy and struggled for their economic, political and human rights.

“These are the ideals that we hold dear and we work toward every day,” Bhutto Zardari said.


‘Solid agreements worth billions’ to be signed soon with Saudi Arabia — Pakistani PM 

Updated 06 May 2024
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‘Solid agreements worth billions’ to be signed soon with Saudi Arabia — Pakistani PM 

  • Sharif was hosting dinner for 50-member Saudi delegation visiting Pakistan to discuss private sector investments 
  • Representatives of 30 Saudi firms from IT, telecom, energy, aviation, construction, mining, agriculture are visiting 

ISLAMABAD: Pakistan and Saudi Arabia will sign “solid agreements worth billions of dollars” soon, Prime Minister Shehbaz Sharif said on Monday during a dinner held in honor of a high-level Saudi business delegation visiting the Pakistani capital of Islamabad.

A 50-member delegation, led by the Kingdom’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan on Sunday, with representatives of some 30 Saudi firms from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development.

Speaking at the dinner, Sharif expressed satisfaction over what he called “tangible progress” at a Pakistani-Saudi Arabia investment conference held in Islamabad earlier in the day.

“Today, B2B (business-to-business) interactions have been most productive,” he said. “That time is coming very fast, when we will, God willing, witness agreements, solid agreements worth billions of dollars. That will set the ball rolling.”

Sharif said his government was determined to remove hurdles in the way of the speedy achievement of targets.

“And I want to assure you that in that, we are fully resolved and committed,” the PM said, adding that the Saudi side had expressed confidence in the working of Pakistan’s Special Investment Facilitation Council (SIFC), set up last year to oversee all foreign investments in the country.

Speaking at the dinner, the Saudi assistant investment minister said Pakistan was a “strategic” partner and friend.

“The private sectors have interacted very quickly. We have spoken to them, only a few days after we have spoken to them, everybody showed interest,” he added. “The relationship with Pakistan has always been strong, but we look for it to be even stronger, and we can do great things together. I am sure we can achieve both countries’ aspirations and visions.”

Pakistan and Saudi Arabia have been working closely in recent weeks to increase bilateral trade and investment deals, with Crown Prince Mohammed bin Salman last month reaffirming the Kingdom’s commitment to expedite an investment package of $5 billion.

The Saudi business delegation’s visit comes on the heels of one by Sharif to Riyadh from Apr. 27-30 to attend a special two-day meeting of the World Economic Forum.

On the sidelines of the WEF conference, the Pakistani PM met and discussed bilateral investment and economic partnerships with the crown prince and the Saudi ministers of finance, industries, investment, energy, climate, and economy and planning, the adviser of the Saudi-Pakistan Supreme Coordination Council and the presidents of the Saudi central bank and Islamic Development Bank.

This was Sharif’s second meeting with the crown prince in a month. Before that, he also met him when he traveled to the Kingdom on April 6-8. The Saudi foreign minister was also in Pakistan last month, a trip during which Pakistan pitched projects worth at least $20 billion to Riyadh, according to the Pakistani foreign ministry. 

Pakistan and Saudi Arabia enjoy strong trade, defense, and cultural ties. The Kingdom is home to over 2.7 million Pakistani expatriates and serves as a top source of remittances to the cash-strapped South Asian country.

INVESTMENT CONFERENCE

Speaking at the investment conference on Monday morning, Al-Mubarak said this was his second visit to Pakistan in two weeks and many influential leaders from globally renowned Saudi companies were part of his delegation.

“To the Saudi government and Saudi companies, Pakistan is considered a high-priority economic investment and business opportunity,” Al-Mubarak said.

 

 

“Today, we want to connect you [Pakistan] all to Saudi companies who desire to continue building their international presence, for Saudi Arabia’s ambitions do not stop at our borders and we would like to see Pakistan as one of our leading international partners,” the Saudi official added. 

“So, this gathering provides a wonderful opportunity for them [Saudi companies] to develop a deeper understanding of the great opportunities available for investment in Pakistan and to learn about related regulations, requirements, and incentives.”

Addressing a press conference in Islamabad, Petroleum Minister Dr. Musadik Malik said 125 Pakistani companies were negotiating with the Saudi companies who were visiting Islamabad. 

“First, there were government-to-government agreements during the visit of the Saudi foreign minister [last month] and now there will be business-to-business agreements,” he said.

“To facilitate the visiting Saudi companies, the Pakistani commerce ministry has affiliated one focal person with each Saudi company.”

Minister for Commerce Jam Kamal Khan said high officials of more than 32 Saudi companies were in Pakistan. 

 

 

“Pakistani companies are present here, in the energy sector, in the food sector, in the construction sector, in the renewable section, in the ports and shipping section, and the IT services and general services,” Khan told reporters. 

He said the visit by the Saudi delegation was “just the beginning” and now a Pakistani delegation would visit the Kingdom nect “to move forward toward the implementation phase.”


Major Pakistan coalition partner opposes privatization of national airline ahead of IMF talks

Updated 06 May 2024
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Major Pakistan coalition partner opposes privatization of national airline ahead of IMF talks

  • The government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term IMF program to support the economy
  • The IMF has recommended privatization of state entities, increasing tax revenue and reducing duplicated expenditures for a new program

KARACHI: The Pakistan Peoples Party (PPP), one of the coalition partners in the Pakistani government, on Monday said it would resist privatization of the country’s national airline and other state entities regardless of its potential impact on the government’s talks with the International Monetary Fund (IMF) this month for a new bailout program.

Pakistan last month completed a short-term, $3 billion IMF program, which helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

An IMF mission is expected to visit Pakistan in the mid of May to discuss the upcoming budget, policies and reforms under a potential new program. Pakistan’s financial year runs from July to June and its budget for fiscal year 2025, the first by Sharif’s new government, has to be presented before June 30.

Pakistan’s Finance Minister Muhammad Aurangzeb on Monday said he was hopeful that the Pakistan International Airlines (PIA) and other privatization deals would get through the “finishing line” by early July.

“The IMF is not in our ten points, IMF is not part of our manifesto,” said Senator Taj Haider, a senior PPP figure, when asked if his party had assessed repercussions of its opposition to the government’s privatization move.

“Those who are the slaves of the IMF should be worried. We must stand on our own feet and not look toward the outsiders.”

The PPP, whose co-chairman Asif Ali Zardari is currently serving as the president of Pakistan, has formed a three-member committee to engage with the government on privatization issues. 

Haider said his party had already offered the government to hand over the Pakistan Steel Mills to the Sindh government which had the capacity to run it, while the PIA should be run through public-private partnership (PPP).

“Government entities, including the PIA and the Steel Mills, should not be privatized because they will sell their valuable properties and won’t make them sustainable like we have witnessed in the past,” he said. 

“No privatization has been successful, and no public-private partnership (PPP) has been unsuccessful.”

In the past, Haider said, privatization drives remained unsuccessful because the process had only been aimed at selling state properties.

“The PIA’s problem is an outcome of mismanagement,” he said. “If other airlines are making profit, then why PIA cannot do it.”

Speaking at a conference in Islamabad on Monday, Finance Minister Aurangzeb outlined reforms under a new IMF deal, saying the government had to broaden its tax base and increase the tax-to-GDP ratio.

“And the third one is the SOE [state-owned enterprises] reform,” Aurangzeb said. “Our prime minister has been very clear that the government has no business being in business … We need to and we will accelerate the privatization agenda.”

Hidayatullah Khan, president of a union of PIA employees, lamented that private airlines had been given several domestic routes of the PIA, while the aircraft of the national airline were left standing.

“If PIA is not making profit, it’s an issue of the management, whose policies have destroyed the airline,” Khan said, adding the airline employees would stage protests in Karachi and Islamabad to stop the privatization of the airline.

Ali Khizar, an Islamabad-based financial and development consultant, said the privatization of the PIA was not the “primary concern” of the IMF. 

“IMF has advocated for the privatization, including that of PIA, for quite some time, but its primary concerns are increasing taxation and reducing duplicated expenditures,” Khizar told Arab News.

“While privatization won’t greatly affect talks with the IMF, I believe PIA should indeed be privatized.”

Last week, Pakistan pushed back the deadline for companies to express interest in buying PIA to May 18, a day before the expressions had originally been due. The privatization commission says 10 companies have already expressed an interest.

Pakistan’s government has previously said it was putting on the block a stake of between 51 percent and 100 percent in the loss-making airline.

The disposal of the flag carrier is a step that past elected governments have steered away from as it is likely to be highly unpopular, but progress on privatization is key to helping cash-strapped Pakistan pursue further funding talks with the IMF.


US envoy meets parliamentary leader of Pakistan’s opposition, a key Imran Khan aide

Updated 06 May 2024
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US envoy meets parliamentary leader of Pakistan’s opposition, a key Imran Khan aide

  • Khan, who leads the PTI party, has accused Washington of siding with generals and political rivals to orchestrate his 2022 ouster
  • The PTI says it used the meeting with the envoy as an opportunity to remind the US that it had to respect Pakistan’s constitution

ISLAMABAD: United States (US) Ambassador to Pakistan Donald Blome on Monday held his first meeting with Omar Ayub Khan, the parliamentary leader of the opposition in the National Assembly and a key aide to former prime minister Imran Khan, the US embassy said.

Khan is the founder of Pakistan’s main opposition party, the Pakistan Tehreek-e-Insaf (PTI), which has accused Washington of siding with the powerful military and Khan’s political rivals to orchestrate his ouster from the PM’s office in April 2022. All three have denied the accusation.

The PTI has since sought support from US lawmakers in investigating alleged rights abuses and crackdown on its supporters in the wake of Khan’s unprecedented campaign of defiance against the country’s powerful military.

“US Ambassador Donald Blome met today with Leader of the Opposition in the National Assembly Omar Ayub Khan and other senior members of the opposition to discuss a broad range of issues important to the bilateral relationship, including US support for continued economic reforms, human rights, and regional security,” the US embassy said in a statement.

The PTI said it had used the meeting as an opportunity to remind the US that it had to respect Pakistan’s constitution.

“Our leader Imran khan has always told us one thing that you must hold dialogue on a level of equality. What we wanted to make clear was that the international community, which includes America too, should respect the constitution of Pakistan,” Omar Ayub said in televised comments.

“We have clarified this that we do not demand anything from anyone we only demand that the constitution of Pakistan is respected and accepted by the whole world.”

During the meeting, the US embassy said, Ambassador Blome highlighted the importance of long-term reforms for sustainable economic growth of Pakistan.

“Ambassador Blome underscored the United States’ support for Pakistan to engage constructively with the IMF on its reform program,” it said.

Pakistan last month completed a short-term, $3 billion program, which helped stave off a sovereign default, but the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program.

The PTI, in a letter written to the IMF earlier this year, had asked the global lender to factor in the country’s political stability in any further bailout talks with Pakistan, according to party members familiar with the matter.

Khan’s opponents previously accused him of scuttling an IMF deal under a $6 billion Extended Fund Facility days before leaving his office, a charge he denies.

Pakistan narrowly averted default last summer, and its $350 billion economy has stabilized after the completion of the last IMF program, with inflation coming down to around 17 percent in April from a record high 38 percent last May.

It is still dealing with a high fiscal shortfall and while it has controlled its external account deficit through import control mechanisms, it has come at the expense of stagnating growth, which is expected to be around 2 percent this year compared to negative growth last year.

Pakistan and the IMF are expected to begin formal talks for a fresh program after the arrival of an IMF team in Islamabad in the mid of May. Islamabad has said it expects a staff-level agreement by July.


Babar hoping paceman Rauf will regain full fitness and make an impact for Pakistan at T20 World Cup

Updated 06 May 2024
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Babar hoping paceman Rauf will regain full fitness and make an impact for Pakistan at T20 World Cup

  • Fast bowler Rauf has been included in an 18-man squad for the upcoming tours of Ireland and England
  • Pakistan has done well in last two T20 World Cups, reaching semifinals in 2021, final at 2022 tournament 

ISLAMABAD: Pakistan captain Babar Azam is hoping Haris Rauf will regain full fitness after a shoulder injury and make an impact at next month’s T20 World Cup.

Fast bowler Rauf has been included in an 18-man squad for the upcoming tours of Ireland and England, with Pakistan delaying its 15-strong party for the World Cup in the United States and West Indies until May 22.

The fitness of Rauf, Mohammad Rizwan, Irfan Khan and Azam Khan will be assessed during the seven T20s against Ireland and England.

“I wasn’t expecting that he (Rauf) would recover so early and start bowling again,” Babar told reporters in Lahore on Monday as the team prepared to fly out to Ireland, where the first T20 will be played in Dublin on Friday.

“There’s pressure on him to make a comeback. There’s lot of talk going around on his injury and how he will respond to it. But I think he will make a good response because when you give yourself proper rest mentally and physically, you can make a different impact.”

Rauf has been out since dislocating his shoulder in late February during the Pakistan Super League. Since then he has gone through rehabilitation at the National Cricket Academy in Lahore.

The seven-member selection committee, which also includes Babar, have named fast bowler Hasan Ali, who last played a T20 international in 2022, as backup for Rauf.

Babar backed the inclusion of Hasan after pace bowlers Zaman Khan, Mohammad Wasim and the PSL’s top wicket-taker Mohammad Ali were omitted.

“There’s no injustice with anyone. We debated a lot on the World Cup combination and Hasan is there as backup for Rauf because of his experience,” Babar said. “Zaman and Ali are new-ball bowlers but we already have enough new-ball bowling options.”

Fast bowler Mohammad Amir, who played in two T20s against New Zealand after ending his retirement, Shaheen Shah Afridi, Naseem Shah and Abbas Afridi are Pakistan’s pace options.

Under Babar, Pakistan has done well in the last two T20 World Cups, reaching the semifinals in 2021 at the United Arab Emirates and losing to England in the final at the 2022 tournament in Australia.

The chairman of the Pakistan Cricket Board, Mohsin Naqvi, has promised a cash award of $100,000 to every player if the team wins the tournament.

“What happened in the past is in the past, unfortunately we couldn’t finish the way we wanted,” Babar said. “We’re doubly confident and believe we can bring the trophy home.”

Pakistan starts its campaign against host United States in Dallas on June 6 before taking on arch-rival India in New York three days later.

White-ball head coach Gary Kirsten will likely join the team in England after completing his Indian Premier League assignment with Gujarat Titans.


Pakistan stocks continue to rally on Saudi investment optimism, decline in inflation

Updated 06 May 2024
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Pakistan stocks continue to rally on Saudi investment optimism, decline in inflation

  • A 50-member delegation led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak arrived in Pakistan on Sunday
  • Pakistan and Saudi Arabia have seen a flurry of bilateral visits in recent weeks that have fueled hopes of investment in South Asian country

KARACHI: Pakistan’s benchmark share index closed at another all-time high by registering a 1.2 percent gain as bulls celebrated the arrival of a high-level investment delegation from Saudi Arabia, analysts said on Monday.

The KSE-100 index witnessed a bullish trend, gaining an intraday high of 1,158.65 points that marked a 1.61 percent increase. It closed at 72,764.24 points, up by 1.20 percent.

Stock analysts said the major contributing factor behind the bullish close was the arrival of a 50-member Saudi business delegation in Pakistan for potential investments and a drop in inflation.

“Today’s all the bullish activity was because of the Saudi delegation visiting Pakistan to explore investment opportunities,” Sheheryar Butt, portfolio manager at Darson Securities, told Arab News. 

The delegation, led by Saudi Arabia’s Assistant Minister of Investment Ibrahim Al-Mubarak, arrived in Pakistan on Sunday. It comprises representatives of some 30 Saudi companies from the fields of IT, telecom, energy, aviation, construction, mining exploration, agriculture and human resource development.

Butt said the encouraging remarks by the visiting Saudi investment minister on Monday also played a key role in keeping the market in the green zone.

Addressing an investment summit in Islamabad, the Saudi minister said Pakistan was a “high priority” economic opportunity and the Kingdom believed in the potential of Pakistan’s economy, demographics and talent as well as location and natural resources.

Speaking at the summit, Pakistan Finance Minister Muhammad Aurangzeb said foreign investment was vital to macroeconomic stability in Pakistan and the visit of Saudi investors was a link in this chain.

Auzrangzeb said Prime Minister Shehbaz Sharif’s successful visit to Saudi Arabia opened the way for economic cooperation between the two countries.

“The visit of a delegation of Saudi investors to Pakistan is also a part of paving the way for this economic cooperation,” the minister said. “The government is now moving toward privatization and PIA [Pakistan International Airlines] will also be privatized.”

He said export-led growth, foreign direct investment (FDI) and excess to capital were top priorities of the government, and it was working on short, medium and long-term strategies as well as structural economic reforms.

Ali Nawaz, CEO of Chase Securities, attributed the bullish trend at the stock market to the arrival of the Saudi investment delegation.

“This news likely injected optimism into the market as it suggests potential for increased foreign investment, bolstering investor confidence,” Nawaz said.

Other factors, he said, included a decline in inflation that fueled a positive sentiment.

“Lower inflation rates typically indicate a healthier economic environment, fostering expectations of potential interest rate cuts in the future,” he added.