ISLAMABAD: The chairman of the Pakistan Telecommunication Authority (PTA), Major General (r) Hafeezur Rehman, said this week the body would facilitate the “positive use” of virtual private network (VPN) services even as the government was determined to move ahead with plans to block unregistered VPNs by the end of this month.
The PTA says businesses and freelancers can continue to legally use VPNs by registering with the government, but unregistered VPNs will be blocked in Pakistan after Nov. 30. Authorities say the measures are meant to deter militants and other suspects who use VPNs to conceal their identities and spread “anti-state propaganda” and promote “blasphemous” or other illegal content online.
Digital rights activists say the move is part of government attempts to block vital tools that allow users to bypass restrictions amid a wave of digital crackdowns, particularly since the use of VPNs has sharply risen in Pakistan since February this year when the government banned X.
The federal government is also moving to implement a nationwide firewall to block malicious content, protect government networks from attacks, and allow the government to identify IP addresses associated with what it calls “anti-state propaganda” and terror attacks. Internet speeds have dropped by up to 30-40 percent over the past few months due to the firewall, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP).
“We don’t say to block the VPNs but to regulate the VPNs,” the PTA chairman said on Thursday during an address at Youth Safety Summit Pakistan, jointly organized by TikTok and the PTA.
“If somebody needs VPN for the business purposes, for some positive use, nobody will stop him, let me reassure you, we will facilitate him.”
Rehman said the authority issued its first letter for VPN registration back in December 2010.
“It is now 15 years,” he said. “We have been pushing people to please register with us so that their business is not disturbed.”
The PTA chairman urged TikTok and other social media platforms to use artificial intelligence tools to “block anti-state and blasphemous content.”
“This summit marks a significant step in our mission to secure a safe and inclusive digital environment for Pakistan’s youth,” Rehman said. “PTA remains steadfast in its efforts to implement innovative measures that protect children online and promote a digitally responsible society.”
Emir Gelen, the director of government relations and public policy at TikTok for the Middle East, Turkiye, Africa, Pakistan and South Asia, reaffirmed TikTok’s commitment to online safety at the summit.
“At TikTok, we are committed to ensuring the online safety and well-being of our users, particularly children and youth,” he said.
“We believe that this summit marks an important step toward creating a safer online environment in Pakistan … We’re dedicated to promoting digital literacy and online safety through our initiatives, and we look forward to continuing our collaboration with the PTA to achieve this goal.”
In August, the Pakistan Business Council (PBC) warned that frequent Internet disruptions and low speeds caused by poor implementation of the national firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.” The Pakistan Software Houses Association (P@SHA), the country’s top representative body for the IT sector, warned this week Internet slowdowns and the restriction of VPN services could lead to financial losses and closures and increase operational costs for the industry by up to $150 million annually.
Pakistan’s IT and ITeS exports have been growing at an average of 30 percent per year, and are on the way to achieve over $15 billion in the next 5 years, according to industry data, provided the government ensures continuity in export, fiscal, financial, SME, infrastructure and IT policies.
“If the VPNs are blocked, most of IT companies, Call Centers, BPO [business process outsourcing] organizations of Pakistan will lose all the major Fortune 500 clients, as well as others – as data protection and cybersecurity are of paramount importance to our clients, and connecting to client systems through VPN is a global norm and standard, and is a basic requirement and expectation of clients around the world,” P@SHA Chairman Sajjad Mustafa Syed said in a statement released on Tuesday.
“Additionally, no international company of any size tolerates any intrusion into their security protocols by any private or public institution.”
Pakistan telecom regulator affirms support for ‘positive use’ as VPN ban deadline looms
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Pakistan telecom regulator affirms support for ‘positive use’ as VPN ban deadline looms
- PTA says businesses can use VPNs by registering with government but unregistered VPNs will be blocked after Nov. 30
- Rights activists say government wants to block vital tools that allow users to bypass restrictions amid digital crackdown
Pakistan’s top oil refineries push ahead with investments, plant upgrades to boost domestic production
- CEOs of refineries call on Finance Minister Muhammad Aurangzeb to discuss investment plans
- Oil imports amounted to $5.1 billion in 2024, April data from Pakistan’s central bank showed
KARACHI: The chief executive officers (CEOs) of leading oil refineries on Monday called on Finance Minister Muhammad Aurangzeb and discussed with him investment plans, including multi-billion-dollar plant upgrades aimed at enhancing the domestic production capacity of petrol and diesel.
Pakistan produces some petrol and diesel domestically, but it is not sufficient to meet the country’s total demand. The country imports significant quantities of crude oil and refined petroleum products to supplement domestic production. Pakistan’s five oil refineries have a combined capacity to process 450,000 barrels of crude oil per day.
In the first four months of fiscal year 2025, petrol production was up by 4.50 percent and high-speed diesel by 7.85 percent, compared to the same period last year. This increase is attributed to rising demand in the transport and agriculture sectors.
On Monday, a delegation a CEOs of top oil refineries briefed the finance minister and his team on their upcoming investment plans, which include multi-billion-dollar plant upgrades aimed at enhancing domestic production.
“The delegation highlighted that these upgrades, once implemented, have the potential to save the country close to $1 billion annually in foreign exchange by reducing reliance on imported refined fuels,” a statement from the finance division said.
The refinery representatives also raised concerns regarding the change in the sales tax regime on petroleum products, specifically the shift from zero-rated to exempt supplies.
“They explained that this change has led to a significant increase in both operational and capital expenditure for the refining sector, adversely impacting the financial viability of their planned upgrades,” the statement added.
This change in the sales tax regime, introduced by the Finance Act 2024, means that certain petroleum products like motor spirit (petrol), high-speed diesel, kerosene, and light diesel oil are now exempt from sales tax instead of being zero-rated. This change has raised concerns from refineries, who worry about increased operational and capital costs due to the disallowance of input sales tax claims.
Aurangzeb assured the CEOs that the government would carefully review their concerns, especially those relating to the sales tax exemptions, and added that the issue would be addressed in a manner that supports the continued growth and modernization of the domestic refining industry.
“The meeting concluded with a reaffirmation of the government’s commitment to enabling long-term investment in the energy sector and promoting sustainable industrial development,” the finance division said.
Pakistan imported 137,000 barrels per day of crude in 2024, mostly light grades from the Middle East, with Saudi Arabia and the United Arab Emirates among its top suppliers, data from analytics firm Kpler showed. Oil imports amounted to $5.1 billion in 2024, data from Pakistan’s central bank showed.
In February, Saudi Arabia, through the Saudi Fund for Development (SFD), extended a $1.2 billion financing facility to Pakistan for the import of oil products for a year.
The SFD has provided approximately $6.7 billion to Islamabad for oil products since 2019.
Army says one soldier, eight militants killed in multiple engagements in Pakistan’s northwest
- The encounters took place in North and South Waziristan, Khyber and Bannu districts of Khyber Pakhtunkhwa province
- Pakistan has seen a surge in militancy in KP since its fragile truce with the Pakistani Taliban broke down in late 2022
ISLAMABAD: The Pakistan army said on Monday one soldier had died while security forces killed eight Pakistani Taliban militants in multiple engagements in the northwestern Khyber Pakhtunkhwa (KP) province.
Three militants were killed in an encounter in the North Waziristan district that borders Afghanistan, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing.
Two militants and a Pakistani troop were killed in an intelligence-based operation in the neighboring South Waziristan district. Security forces gunned down another three militants in two engagements in Khyber and Bannu districts.
“Weapons, ammunition and explosives were also recovered from the killed khwarij, who remained actively involved in numerous terrorist activities,” the ISPR said in a statement. “Sanitization operations are being conducted to eliminate any other Kharji [Pakistani Taliban militant] found in the area.”
Pakistan has struggled to contain a surging militancy in KP in recent years, where the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), have mounted their attacks against security forces and police since their fragile, months-long truce with Islamabad broke down in late 2022. Islamabad has frequently accused Afghanistan of supporting the Pakistani Taliban and other militant groups, an allegation denied by Kabul.
The latest operations follow the killing of five TTP militants and the arrest of two others in KP, while the military said late last month it had killed 71 militants while infiltrating Pakistan’s border with Afghanistan in North Waziristan.
The number was usually high in Pakistan’s battle against militancy and instability along its border with Afghanistan during the nearly four years since the United States withdrew its military support from the country and the Taliban took over Kabul.
The South Asian country is also facing an intensifying insurgency by armed separatist groups in its southwestern Balochistan province.
Pakistan dispatches another shipment carrying 97 tons of relief goods for Gaza
- The development comes as death toll from Israel’s war on Gaza rises to 52,567
- Pakistan has sent a total of 1,615 tons of relief aid for the war-torn Palestinians
ISLAMABAD: Pakistan has dispatched 97 tons of humanitarian aid for the war-affected people of Gaza, its National Disaster Management Authority (NDMA) said on Monday, as Israel voted to scale up the offensive against Hamas in Gaza to the point of seizing the entire enclave.
The death toll in the Gaza Strip due to the ongoing Israel-Hamas war has reached 52,567, according to Palestinian authorities. In the past 24 hours alone, 32 people were reportedly killed and 119 others injured, bringing the total number of injuries to over 118,600.
Pakistan’s NDMA said the latest shipment, which is the 16th aid consignment for Gaza and the overall 27th sent to the Middle East, was dispatched as part of Pakistan’s ongoing humanitarian efforts.
“The latest consignment, sent in collaboration with Al-Khidmat Foundation, comprises approximately 85 tons of canned food, 10 tons of rice and two tons of powdered milk,” the NDMA said.
“The aid was transported via a chartered flight from Jinnah International Airport, Karachi, to Amman (Jordon) for onward distribution to the people of Palestine.”
Israel ended its months-long ceasefire with Hamas by launching a surprise bombardment on Mar. 18 and has been carrying out daily waves of strikes since then. Israeli forces have expanded a buffer zone, encircled the southern city of Rafah, and now control around 50 percent of the territory.
Israel has also sealed off the territory’s two million Palestinians from all imports, including food and medicine, for nearly 60 days. Aid groups say supplies will soon run out and that thousands of children are malnourished.
Pakistan, which does not have diplomatic ties with Israel, has consistently condemned Israeli military actions and called for the uninterrupted flow of humanitarian aid into Palestinian territory.
The South Asian country has dispatched a total of 1,615 tons of relief aid exclusively for Palestine, according to the NDMA. Overall, Pakistan has sent 2,142 tons of humanitarian aid, including 416 tons for Lebanon and 111 tons for Syria.
“The Government of Pakistan remains steadfast in its commitment to standing with the people of Palestine and will continue to provide humanitarian assistance based on the evolving needs of those affected by the ongoing crisis,” the authority said.
Pakistan leads journalists’ group to Azad Kashmir, aiming to debunk Indian claims on militant camps
- Indian media has since last week alleged presence of terror training camps in Azad Kashmir, raising fears India may launch strikes on them
- Information minister leads supervised visit of group of journalists to Bella Noor Shah near Muzaffarabad, the main city in Azad Kashmir
Bela Noor Shah, Muzaffarabad: The Pakistan government on Monday arranged a visit for local and foreign journalists to areas of the part of the disputed Kashmir region it governs, saying it was aiming to counter claims by Indian media that militant training camps were operating there.
New Delhi has blamed Islamabad of involvement in an attack in Indian-administered Kashmir last week in which 26 people were killed, the deadliest in the region in decades. Islamabad denied the allegations and has asked for evidence of its involvement, which Delhi has not publicly shared. However, Indian media has since the April 22 assault variously alleged the presence of militant training camps in Azad Jammu and Kashmir (AJK), the part of the disputed valley governed by Pakistan, raising fears that India may launch attacks near the border to take out the camps.
The nuclear-armed neighbors have also since the attack announced a raft of punitive measures against each other, while their forces have exchanged fire for 10 consecutive days across the Line of Control (LOC), the de facto border that divides disputed Kashmir between the two nations.
For the first time since the attack on the tourist site in Pahalgam, Pakistani authorities allowed a group of journalists working for local and foreign news organizations access to the mountain village of Bella Noor Shah, near Muzaffarabad, the main city in Azad Kashmir. The journalists flew by helicopter to Muzaffarabad and then drove around 50 minutes by jeep to Bella Noor Shah where they spent around two hours before bad weather cut short the trip.
“There were numerous contradictions and inconsistencies in their [Indian] claims, and they failed to substantiate them and we are proactively present at one of the locations India has alleged to be a terrorist camp,” Information Minister Attaullah Tarar, who led the visit, told journalists at Bela Noor Shah.
“The Indian allegations regarding [militant camps in] the areas of Bela Noor Shah and Pir Chinasi in Azad Kashmir are fabricated and baseless, as not only is the local population living a normal life, but educational institutions are functioning and tourism is continuing as usual,” he added.
Speaking to Arab News at Bela Noor Shah, Muzaffarabad Commissioner Ghuftar Hussain denied the presence of militant camps in the entire area.
“This is a tourist spot and very peaceful area where people from all over Kashmir and Pakistan came for recreation,” he told Arab News.
Residents of the village also told reporters they had never seen such camps in the area.
“I am a university student in Muzaffarabad and have frequently visited various places in the area with friends, but I have never seen any camps anywhere in these regions,” Ameer Ali, 23, a resident of the nearby village Sawan Pani who had come for recreation at the top of the hill, said.
Shafaat Qadri, a 45-year-old local resident and madrassah teacher, agreed.
“Today, I brought a visiting friend to this picnic spot who is here from Rawalakot University,” he added. “Visiting this place has been part of our routine, and if there were any suspicious activities here, they could not go unnoticed by the locals.”
The LoC, along which India claims terror camps operate, runs 742km (460 miles). The military frontline, which passes through inhospitable terrain, is heavily militarized with both Indian and Pakistani forces even in times of peace and has separated hundreds of families and even divided villages and mountains.
Monday’s trip was reminiscent of one in 2019, when Pakistani authorities allowed a group of journalists working for foreign news organizations, and foreign diplomats based in Islamabad, access to the site of a madrassa on a remote hilltop in Balakot, a town located in the northwestern province of Khyber Pakhtunkhwa province in northern Pakistan. Weeks ago, India had alleged it had struck the school and killed hundreds of "terrorists" and their trainers and associates. Pakistan rejected the accusations.
During that standoff, Pakistani jets shot down an Indian aircraft in actions spread over two days.
Pakistan cuts interest rate to spur growth as ‘geopolitical’ tensions pose economic challenges
- Monday’s decision came against the backdrop of soaring tensions with neighboring India following a deadly attack on tourists in Indian Kashmir
- The central bank expects the economy to settling between 2.5 and 3.5%, mainly because of low agricultural output and industrial outturns
KARACHI: Pakistan’s central bank on Monday slashed the key policy rate by 100 basis points 11% to spur growth, amid challenges posed by trade tariffs and geopolitical tensions with archrival India.
The State Bank of Pakistan (SBP) said global uncertainty surrounding trade tariffs and geopolitical developments warranted a “measured monetary policy stance,” espite the favorable inflation outlook. This is the lowest rate since December 2021.
Monday’s decision came against the backdrop of soaring tensions with neighboring India following a deadly attack on tourists in Indian Kashmir. The nuclear-armed neighbors have announced measures meant to harm each other’s economy.
It also came ahead of an imminent decision by the International Monetary Fund to release the next tranche of $1 billion to Islamabad from its $7 billion bailout program, with the previously “sticky” core inflation easing to 8% in April.
“The committee noted that inflation declined sharply during March and April, mainly due to a reduction in administered electricity prices and continued downtrend in food inflation,” the central bank said in a statement after a meeting of its monetary policy committee (MPC).
Prime Minister Shehbaz Sharif government’s efforts to revive Pakistan’s debt-ridden economy with the help of International Monetary Fund (IMF) received repeated setbacks after the US imposed 29% tariffs on its imports, followed by a military standoff with neighboring India that holds Islamabad responsible for the recent Kashmir attack. Given this the central bank decided to maintain a measured monetary policy stance.
The IMF has sharply downgraded its 2025 and 2026 growth projections for advanced and emerging economies because of the prevailing global uncertainty around tariffs that has triggered heightened financial market volatility and a sharp decline in global oil prices.
“Considering the evolving developments and risks, the MPC viewed that the real policy rate remains adequately positive to stabilize inflation in the target range of 5 – 7%, while ensuring that the economy grows on a sustainable basis,” the SBP said.
The government expects the economy to expand 3.6% this fiscal year ending in June, while the central bank sees it settling between 2.5% to 3.5%, mainly because of low agricultural output and “below expectation” outturns in industrial production.
The central bank expects the economy to expand next fiscal year but warned of risks emanating from global uncertainty.
Shahid Ali Habib, chief executive officer at Arif Habib Corporation Ltd., termed the central bank decision “very good” and said lower borrowing costs will create economic activity in the South Asian nation where the full-year inflation is expected to remain at 5%, the current account to post nearly $1.3 billion surplus and international oil prices to range between $60 and $62 a barrel.
“The State Bank wants to spur some growth as our large-scale manufacturing growth remains very low at around 1.9%,” Habib told Arab News. “This is a very good decision to kick off economic growth in the country.”
Debt-ridden Pakistan, which had repaid or rolled over most of the $26 billion foreign loans it had to repay this year, expects its foreign exchange reserves to increase to $14 billion by the end of next month on the back of expected realization of planned official inflows.
The IMF’s executive board is scheduled to meet later this week to approve the release of about $1 billion tranche to Pakistan. The board’s approval has most of the time been a formality after the signing of a staff-level agreement between the Washington-based lender and the authorities in Islamabad.
The country’s trade deficit though sharply rose to $3.4 billion in April, but the central bank said easing global oil prices were moderating Pakistan’s overall import bill.
Last month, Pakistan’s trade deficit widened by 55% to $3.39 billion, marking the highest monthly trade gap in three years, according to Topline Securities Ltd.
“Going forward, the MPC expects this build-up in FX reserves to continue in FY26, based on a moderate current account deficit and improved financial inflows,” the SBP said.
The record inflow of worker remittances and the SBP’s purchases of dollars partially cushioned the impact of large ongoing debt repayments on the central bank’s forex reserves that have declined to $10.2 billion.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the country’s top representative body of trade and industries, expressed disappointment over the SBP’s decision.
“The policy rate continues to be 11.0% as of today – which reflects a premium of 1,070 basis points (bps) as compared to inflation and it makes no economic sense,” FPCCI President Atif Ikram Sheikh said in a statement, demanding a cut of 500 basis points.
Monday’s cut was higher than market expectations as majority of the economists were expecting a 50 basis points cut, according to Mohmmed Sohail, chief executive officer at Topline Securities Ltd., which last month conducted a poll on rate cut expectations.
“We will see gradual economic growth led by lower rates,” said Sohail, who expected another 100 basis points reduction in the interest rate by December.
