Pakistan should reinforce trade partnerships with China, Middle East amid tariff row— think tank

This picture taken on March 8, 2023, shows a cargo ship set to sail from a sea port in Karachi, Pakistan. (Radio Pakistan/File)
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Updated 14 April 2025
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Pakistan should reinforce trade partnerships with China, Middle East amid tariff row— think tank

  • Islamabad was slapped with 29 percent tariff rate this month before Trump temporarily suspended decision days later
  • Think tank urges Pakistan to diversify exports markets, collaborate with countries facing similar tariff challenges

ISLAMABAD: Pakistan should diversify its markets for exports, collaborate with other countries to formulate a multilateral response to Washington and reinforce existing trade partnerships with China and the Middle East in response to tariffs imposed by the United States, a Karachi-based independent think tank said recently. 

US President Donald Trump imposed tariffs on several countries on Apr. 2, defending the measures as necessary to address long-standing trade imbalances and what he described as unfair treatment of American goods abroad. Islamabad would have been slapped with a 29 percent tariff rate before Trump walked back on the announcement on Apr. 9, pausing it for 90 days. A 10 percent blanket duty on almost all US imports will remain in effect. 

A study by the Pakistan Institute of Development Economics (PIDE) entitled ‘Impact of Unilateral Tariff Increase by United States on Pakistani Exports’ said this month when added to the existing 8.6 percent Most Favored Nation (MFN) tariff, the total duty after the imposition of the 29 percent tariff could reach 37.6 percent. This would likely result in a 20-25 percent decline in Pakistani exports to the US, translating into an annual loss of $1.1-1.4 billion, with the textile sector bearing the brunt of the blow.

“Pakistan should work on diversifying its export markets to reduce dependency on the US market,” the Policy Research & Advisory Council, (PRAC) an independent think tank that says it provides input for policies and advocates for economic and business interests, said in its report titled “An Analysis of US Tariff Barriers Impacting Pakistan’s Trade.”

“Establishing trade agreements with emerging economies such as Africa or the Central Asian Republics (CARs), or reinforcing existing partnerships, like those with China or the Middle East, could mitigate the risks of trade losses due to tariff hikes,” it added. 

Pakistan has strengthened its business-to-business (B2B) ties with the Kingdom in recent months, with both sides announcing in October 2024 they had signed 34 memoranda of understanding and agreements worth $2.8 billion to enhance private sector collaboration and commercial partnerships.

China, on the other hand, has invested billions in an infrastructure and energy corridor project that connects China’s Xinjiang province to Pakistan’s Gwadar Port via a network of highways, railways, and pipelines. 

PRAC advised Pakistan to collaborate with other nations facing similar tariff challenges, such as Bangladesh and Vietnam, urging it to formulate a multilateral response to Washington’s tariffs. 

“This approach could involve coordinated advocacy at international trade forums, such as the World Trade Organization (WTO), to mitigate the broader global impact of US tariff policies and promote fairer trade practices,” it said. 

Pakistan’s textile industry is expected to face significant challenges from the tariffs, with potential losses of up to $2 billion in exports estimated by experts if the 29 percent tariff rate is reinstated. 

The think tank urged Islamabad to leverage its competitive advantage in sectors such as wearing apparel, woven fabrics, food products and non-metal wastes where tariff increases for Pakistan are lower compared to Vietnam and Bangladesh. 

It pointed out that when it comes to textile yarn, threads and carpets, despite higher tariffs Pakistan still holds an edge over Vietnam. However, sectors such as medical equipment, plastics and rubber tires benefit from smaller tariff hikes, offering growth potential. 

“By focusing on these sectors, Pakistan can enhance its export basket and capture greater market share,” the report said. 

PRAC advised Pakistan to reduce its reliance on a “narrow” export basket, improve production efficiencies to secure new markets to mitigate the impact of rising tariffs and safeguard its existing exports. 

“Implementing these measures will not only protect the country’s trade interests but also position it for greater resilience and competitiveness in the global market,” it concluded.


Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025

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Pakistan says 25,698 pilgrims to perform Hajj under private quota in 2025

  • The annual pilgrimage is expected to take place between June 4 and June 9 this year
  • Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights

ISLAMABAD: Pakistan’s religious affairs minister, Sardar Muhammad Yousaf, said on Friday only 25,698 pilgrims would be able to perform Hajj this year under the private scheme, after thousands of allocated slots were revoked due to non-compliance by private operators with Saudi booking rules and deadlines.

The kingdom had granted Pakistan a total quota of 179,210 pilgrims for Hajj 2025. Typically, this national quota is evenly split between the government-run and private schemes. However, the private sector failed to meet procedural requirements set by Saudi authorities, leading to a significant cut in their share, down from 89,801 to just over 25,000, leaving more than 67,000 would-be pilgrims affected.

“25,698 people will be able to go for Hajj under the private quota,” Yousaf said while addressing a press conference.

“Up until February 14, only 3,600 pilgrims had submitted their payments, but after a one-week extension, 10,000 more applications were received, bringing the total number to 13,000.”

He highlighted that private Hajj operators had registered 904 companies with the Saudi authorities, based on a list provided by the religious affairs ministry. However, some people ignored this and made payments to unregistered Hajj operators.

Yousaf assured that a committee formed by Prime Minister Shehbaz Sharif would investigate the issue.

He said Pakistan International Airlines, Saudi Airlines, Air Sial, Airblue, and Serene Air would be transporting Pakistani pilgrims for Hajj.

Earlier in May, a ministry spokesperson issued guidelines for Hajj pilgrims, including verifying the authenticity and quota approval of private tour operators before making payments, visiting the ministry’s official website to confirm registration and avoiding reliance on unverified advertisements or information.

The ministry strongly urged all prospective pilgrims to exercise utmost caution when booking Hajj packages through private tour operators.

Some registered private organizations also failed to pay dues within the timeline set by Saudi authorities, prompting Sharif to intervene and request an extension of the deadline, which was approved.

This year’s annual pilgrimage is expected between June 4 and June 9, with nearly 89,000 Pakistanis traveling to Saudi Arabia under the government scheme.

Pakistan launched its Hajj flight operation on April 29.

Around 55,642 Pakistani Hajj pilgrims have landed in Saudi Arabia so far via 244 flights.


Karachi hospital reports four COVID-19 deaths amid surprise summer surge

Updated 11 min 46 sec ago
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Karachi hospital reports four COVID-19 deaths amid surprise summer surge

  • A senior physician says all those who succumbed to the disease in the past fortnight were elderly individuals
  • Health experts say the recent surge in coronavirus cases during the summer months is an unusual trend

KARACHI: At least four people with underlying health conditions have died of COVID-19 at a major Karachi hospital in the past two weeks, as experts report an unusual spike in infections during the city’s peak summer season.

All four fatalities occurred at the Aga Khan University Hospital (AKUH), where doctors say they are seeing a steady increase in admissions linked to the coronavirus— a trend they describe as “unexpected” at this time of year.

“In the past two to three weeks, we have seen a significant increase in COVID cases,” Prof. Dr. Syed Faisal Mahmood, a professor of infectious diseases at AKUH, told Arab News, confirming the death of four people during the past two weeks.

The surge, he said, was happening in late spring with temperatures exceeding 40 degrees Celsius.

COVID-19, caused by the SARS-CoV-2 virus, is a highly contagious respiratory illness that was first detected in late 2019 and declared a global pandemic within months. While the virus typically spreads more easily in colder months due to increased indoor activity and lower humidity, experts say its spread during summer in Karachi is a rare deviation from past seasonal patterns.

Mahmood said most infected individuals have been coming to the hospital with mild symptoms, such as sore throat, cough, body aches, and fever, but the virus remains dangerous for older adults and those with weakened immune systems.

“Like in previous years, this year the severe cases of COVID are mostly being seen in people who are older, especially those above 65, or those with weak immune systems,” he said.

“Among these COVID cases, there are some patients who have been hospitalized, and there have also been some deaths,” he added.

Mahmood added that while routine testing is no longer required for everyone with symptoms, caution is essential.

“If you suspect that you have COVID or any other cold or cough-related infection, it is better that you wear a mask,” he advised. “We recommend wearing a mask for at least five to ten days so that others do not get infected.”

The infectious diseases expert also urged caution for those in close contact with the elderly.

“If you are caring for someone who is elderly, then please do not visit them if you are feeling unwell, or at least wear a mask,” he said. “Please take care of yourself, and we hope that there will not be a major further increase in COVID cases.”


Pakistan extends airspace ban on Indian aircraft until June 24 amid ongoing tensions

Updated 23 May 2025
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Pakistan extends airspace ban on Indian aircraft until June 24 amid ongoing tensions

  • The restriction was originally imposed on April 24 after an attack in Kashmir killed 26 tourists
  • The airspace closure impacted Indian airlines, particularly on long-haul international routes

KARACHI: Pakistan has extended its ban on Indian aircraft using its airspace until June 24, the Pakistan Airports Authority (PAA) announced on Friday, amid continued bilateral tensions following recent military clashes this month.

The restriction was first imposed on April 24, only two days after an attack in Indian-administered Kashmir that killed 26 people. India blamed Pakistan for the attack despite Islamabad’s denials. The administration in New Delhi also downgraded bilateral diplomatic ties and took other steps like suspending visas for Pakistanis and shutting border crossings.

In response, Pakistan took its own measures, including the closure of its airspace to Indian aircraft, including commercial and military flights.

“The ban on Indian aircraft flying through Pakistani airspace has been extended until 4:59 AM on June 24, 2025,” the PAA said.

“All aircraft that are Indian-registered, operated, owned or leased will remain subject to the ban,” it added.

The airspace closure has significantly impacted Indian airlines, particularly on long-haul international routes.

Air India, which operates numerous flights to Europe and North America, has been forced to reroute flights, leading to increased fuel consumption, longer flight times, and additional operational costs.

The airline estimates that the ban could result in approximately $600 million in additional expenses over a year and has sought compensation from the Indian government.

Despite a ceasefire agreement announced on May 10, which has held according to Pakistani Deputy Prime Minister Ishaq Dar, the extension of the airspace ban indicates ongoing diplomatic strains.

The situation was further exacerbated by a recent school bus bombing in Pakistan that killed four children, an incident Islamabad has blamed on New Delhi. However, the Indian authorities have denied the charge.


Pakistan calls for Gaza aid access amid Israeli push for full control

Updated 23 May 2025
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Pakistan calls for Gaza aid access amid Israeli push for full control

  • Israel’s war on Gaza has killed around 53,000 Palestinians and displaced two million
  • Pakistan says it opposes any attempts to displace Palestinians from their ancestral lands

ISLAMABAD: Pakistan’s foreign office on Friday called for the unimpeded delivery of humanitarian aid to millions of Palestinians after Israeli Prime Minister Benjamin Netanyahu announced his country’s plan to press ahead with its military campaign and take full control of the Gaza Strip.

Israel imposed a total blockade of the war-torn Palestinian territory in March, cutting off the entry of food, medicine, fuel and other essential supplies. The move triggered a deepening humanitarian crisis, with aid agencies warning of widespread malnutrition and a looming famine, particularly among children.

The blockade has drawn international condemnation, with the United Nations and human rights groups urging its immediate lifting on legal and humanitarian grounds. While Israel permitted limited aid deliveries this month, UN officials described the efforts as “a drop in the ocean” for Gaza’s 2.1 million residents.

“The expansion of Israeli ground operations in Gaza, as well as its announcement to take control of all of Gaza, poses a grave threat to efforts aimed toward achieving peace and stability in the region,” the foreign office spokesperson, Ambassador Shafqat Ali Khan, said during his weekly media briefing. “In addition, Israel also continues to deliberately obstruct critical humanitarian aid from reaching millions in dire need.”

“Pakistan reiterates its call on the international community for an immediate end to Israel’s genocidal campaign and to ensure a lasting ceasefire in Gaza,” he continued. “It also urges concrete steps toward provision of unimpeded humanitarian supplies to millions of Palestinians in dire need, as well as to hold Israel accountable for its egregious crimes.”

Khan condemned Israeli attacks on hospitals and other critical infrastructure during its military campaign.

He also maintained that Pakistan opposed any attempts to displace Palestinians from their ancestral lands, expand illegal Israeli settlements or annex any part of the occupied Palestinian territories.

The war in Gaza began in October 2023 and has so far killed about 53,000 Palestinians and displaced nearly all of Gaza’s two million residents.


Pakistan says initial probe confirms Indian involvement in school bus attack in Balochistan

Updated 23 May 2025
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Pakistan says initial probe confirms Indian involvement in school bus attack in Balochistan

  • Balochistan has been the site of an insurgency for decades, though it has intensified more recently
  • Islamabad says Indian ‘terror proxies’ have been tasked to accentuate their attacks in Balochistan

ISLAMABAD: Pakistan said on Friday that its initial probe into an attack on a school bus in the Balochistan province has confirmed the involvement of “Indian terror proxies,” promising to defeat the “nefarious” designs.

Balochistan has been the site of an insurgency for decades, though it has intensified more recently, with groups like the Baloch Liberation Army (BLA) carrying out high-profile attacks on civilians and security forces.

On Wednesday, at least seven people, including six children, were killed when a vehicle-borne improvised explosive device targeted the school bus en route to an army-run school in Balochistan’s Khuzdar.

Speaking at a press conference alongside a Pakistani military spokesman, Interior Secretary Khurram Muhammad Agha called the Khuzdar bombing an attack on “our values, our education and on the very fabric of our society.”

“Initial findings confirm that this attack is in continuity of a broader pattern of violence sponsored by India through Fitna Al-Hindustan (FAH) operating under the tutelage and the patronage of the Indian intelligence agency R&AW,” he said, without offering any proof to link New Delhi to Wednesday’s assault.

The Indian administration has distanced itself from the Khuzdar school bus bombing, attributing such acts of violence to Pakistan’s “internal failures.”

The FAH comprises several separatist groups and independently operating cells who have been operating in the insurgency-hit southwestern Pakistani province, according to the Pakistani officials. These cells, after having suffered immense casualties in past few years, have now resorted to hitting “soft targets.”

“The terror proxies of Hindustan [India] have been tasked to accentuate their heinous attacks of terrorism in Balochistan and elsewhere, sabotage development in the region, incite fear among the population and derail the journey of peace and development in an attempt to repeat their playbook of 1971 [a reference to the fall of Dhaka],” he said.

During the presser, Pakistani military spokesman Lt. Gen. Ahmed Sharif Chaudhry detailed various incidents of violence that he said were carried out by India-backed groups.

“Very recently the media international media has seen self-given confessions and acknowledgements of multiple surrendered terrorists of this Fitna Al-Hindustan who told that how Hindustan is funding, planning and carrying out terrorist acts in Balochistan,” he noted.

Relations between Pakistan and India touched a new low last month, when gunmen killed 26 people in Indian-administered Kashmir in an attack India blamed on Pakistan. Islamabad denies complicity and Lt Gen Chaudhry said New Delhi had still not provided any evidence to back up its accusation.

A day earlier, Pakistan’s top diplomat at the United Nations (UN) said they would raise the school bus attack at the UN and present evidence of Indian involvement to the international community.

“This was a heinous terrorist act directed against children, against students, [which is] totally unacceptable and condemnable,” Ambassador Asim Iftikhar Ahmad told Arab News in an interview.

Interior Secretary Agha said Pakistan and its people, particularly those in Balochistan, reject such “nefarious designs” and Islamabad had the capacity and will to dismantle these networks and to bring the perpetrators and their handlers to justice.

“I assure you that the state in collaboration with the provincial governments and the state apparatus will defeat them,” he said.

“These Indian sponsored terrorists have no place in Pakistan. We have the wherewithal and the commitment to bring an end to this violence. Our resolved is firm and our response will be decisive.”

Pakistan and India have a history of bitter relations and frequently accuse each other of fomenting militancy in the other’s territory. Both countries have fought three wars, two of them over Kashmir.