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

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

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 pauses controversial canals project amid protests in Sindh

Pakistan pauses controversial canals project amid protests in Sindh
Updated 16 sec ago
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Pakistan pauses controversial canals project amid protests in Sindh

Pakistan pauses controversial canals project amid protests in Sindh
  • Nationalist parties, civil society members in fear project to build canals on River Indus will trigger water shortages
  • Shehbaz Sharif says there will be no further progress on canals until all provinces reach a consensus over the matter

ISLAMABAD: Prime Minister Shehbaz Sharif announced on Thursday that the federal government will pause constructing new canals on River Indus until a consensus develops between Pakistan’s provinces on the matter, following outrage and sit-in protests in Sindh.
Pakistan’s government launched an ambitious agricultural project in February to build a network of six canals on River Indus. The government says it aims to irrigate millions of acres of barren lands and ensure food security for the 240-million strong country.
However, critics say the project would trigger water shortages in the southern parts of the country, especially Sindh. Lawyers, members of the civil society and supporters of nationalist parties in Sindh have disrupted trade and traffic on the province’s National Highway since last Friday, staging sit-in protests over the issue.
Pakistan Peoples Party (PPP), a key ally of the ruling coalition led by Sharif and the largest party in Sindh, has led protests against the project. PPP Chairman Bilawal Bhutto Zardari met Sharif on Thursday to discuss the canals issue and Pakistan’s prevailing tensions with India.
“We must resolve this issue through mutual consent and dialogue,” Sharif said with Bhutto Zardari by his side. “And today, in the meeting held between the Pakistan Peoples Party and the Pakistan Muslim League (Nawaz), we have mutually agreed that no new canals will be constructed until a decision is reached via consensus in the Council of Common Interests (CCI).”
The CCI is a constitutional body whose members are appointed by the president on the advice of the prime minister. The council resolves power-sharing and other disputes between the federation and the provinces.
Sharif said the center had decided that there will be “no further progress” on canal-related matters unless a consensus is developed among provinces. 
“Therefore, we have decided today that a meeting of the Council of Common Interests will be convened on Friday, May 2, in which the Pakistan Peoples Party and the Pakistan Muslim League-Nawaz, and the federal government’s decisions will be endorsed,” he added.
Bhutto Zardari thanked the prime minister for listening to his concerns regarding the issue, saying that the CCI meeting will endorse the decision that no new canals would be constructed without consensus on the matter. 
“Today, we are not taking a decision together but are merely agreeing that without consensus on water-related matters, no new canals are being made,” he said. 
The PPP last week threatened to withdraw its support for Sharif’s ruling coalition government if it decided to go ahead with building the new canals. Bhutto Zardari’s party, which emerged as the second-largest political party after the controversial 2024 general election in Pakistan, Sharif get elected prime minister last year.
The PPP settled for the presidency and governorships in Punjab and Khyber Pakhtunkhwa (KP) provinces, areas where it performed poorly in the national polls.


Islamabad says India planning ‘wave of terrorism’ in Pakistani cities, vows ‘tit-for-tat’ response

Islamabad says India planning ‘wave of terrorism’ in Pakistani cities, vows ‘tit-for-tat’ response
Updated 6 min 50 sec ago
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Islamabad says India planning ‘wave of terrorism’ in Pakistani cities, vows ‘tit-for-tat’ response

Islamabad says India planning ‘wave of terrorism’ in Pakistani cities, vows ‘tit-for-tat’ response
  • Suspected militants killed 26 people at a popular tourist attraction in Indian-administered Kashmir’s Pahalgam area
  • Both countries have since taken slew of retaliatory measures including closing only land border, suspending special visas

ISLAMABAD: Defense Minister Khawaja Muhammad Asif on Thursday accused India of preparing to launch a “wave of terrorism” in Pakistani cities, warning that Islamabad would retaliate with a “tit-for-tat” response as relations between the nuclear-armed rivals plummeted following a deadly militant attack in Kashmir.
On Tuesday, gunmen killed 26 men at a tourist site in the Pahalgam area of Indian-administered Kashmir in the worst attack on civilians in the country in nearly two decades. India alleged cross-border involvement, without offering proof, and announced a raft of measures to downgrade ties on Wednesday including suspending a six-decade-old river-sharing treaty as well as closing the only land crossing between the neighbors. Pakistan followed with its own actions that included shutting its airspace to Indian planes and rejecting New Delhi’s suspension of the critical water agreement. 
Islamabad warned Delhi the suspension of the Indus Waters Treaty would be seen as an “act of war” to which Pakistan would respond with “full force across the complete spectrum of national power.”
The nuclear-armed nations, who have both fought two out of three wars over the disputed region of Kashmir since 1947, frequently accuse each other of carrying out cross-border attacks.
“According to our information, India is preparing to launch a wave of terrorism in various Pakistani cities instead of opting for an all-out war,” Asif told reporters at a news briefing.

Prime Minister Shehbaz Sharif chairs a meeting of the National Security Committee in Islamabad, Pakistan on April 24, 2025. (PID)

“And I want to make it absolutely clear that we are fully prepared to counter this wave of terrorism.”
Asif and three other federal ministers were briefing the media on Pakistan’s retaliatory measures, including that Islamabad would exercise the right to hold all bilateral agreements with India, including but not limited to the 1972 Simla Agreement, in abeyance. In the absence of the Simla deal, India loses its rationale for wanting the Kashmir dispute to be treated as a bilateral dispute that must be settled only through bilateral negotiations. Under the treaty, New Delhi has consistently denied any third party intervention in the conflict, even from the United Nations.
Pakistan also closed the Attari-Wagah land border, the only operational land port between the two nations, with immediate effect and suspended all cross-border transit from India through this route “without exception.” 
With no direct flights operating between the two countries, the move cuts all transport links between them.
Islamabad also suspended all visas under the SAARC Visa Exemption Scheme (SVES) issued to Indian nationals, deeming them canceled with immediate effect, with the exception of Sikh pilgrims who frequently travel to Pakistan to visit religious sites. Pakistan gave Indian nationals currently in Pakistan under SVES 48 hours to leave, and said Indian defense, naval and air advisers in Islamabad had been declared “persona non grata.”


“Our response will be tit-for-tat, four citizens are targeted, Indian citizens will also not remain safe in their cities,” the defense minister said.
Asif warned that even if a single Pakistani citizen was killed in an Indian-planned “terrorist” attack, Delhi would “pay for it.”
“This should be absolutely clear to them,” he said.
“BLAME GAME”
The Indus Waters Treaty, brokered by the World Bank in 1960, allocates the six Indus Basin rivers between India and Pakistan, with the Bank acting as its guarantor.
Pakistan has rights to the western rivers — Indus, Jhelum, and Chenab — for irrigation, drinking, and non-consumptive uses like hydropower. India controls the eastern rivers — Ravi, Beas, and Sutlej — for unrestricted use but must not significantly alter their flow.
Law Minister Azam Nazeer Tarar, who addressed the news conference alongside Asif, said the treaty was “sacred” for Pakistan and could not legally be “unilaterally” terminated.
“Pakistan has all the avenues and options available at the international level under the Indus Waters Treaty and the Vienna Convention and will exercise them if the treaty is unilaterally suspended,” he said.

Activists of Pakistan Markazi Muslim League shout slogans during an anti-India protest in Karachi on April 24, 2025. (AFP)

Pakistan and India both claim Kashmir in full but rule it in part. India has long accused Pakistan of helping Islamist separatists who have battled security forces in its part of the territory, accusations Islamabad denies.
Indian officials have said Tuesday’s attack had “cross-border linkages” and Kashmiri police, in notices identifying three people “involved” in the violence, said two of them were Pakistani nationals. India has not elaborated on the links or shared proof.
Pakistan has said India’s accusations were made without any “credible investigation” or “verifiable evidence,” saying they are “frivolous” and “devoid of rationality.”
It has also called on India to refrain from a “reflexive blame game” and to take responsibility for its “failure to provide security” to people.


Hundreds protest in Pakistan over India’s threats

Hundreds protest in Pakistan over India’s threats
Updated 24 April 2025
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Hundreds protest in Pakistan over India’s threats

Hundreds protest in Pakistan over India’s threats
  • A protest called by a religious party was attended by around 700 people Lahore
  • Around 300 people holding anti-India placards marched through Muzaffarabad

LAHORE: Hundreds of Pakistanis joined protests across the country on Thursday, including in Kashmir, to rage against Indian threats after a deadly attack on tourists across the contested border.
Prime Minister Narendra Modi vowed to pursue and punish the gunmen responsible for killing 26 civilians in the tourist hotspot of Pahalgam on Tuesday, accusing Pakistan of supporting “cross-border terrorism.”
The attack in Indian-administered, Muslim-majority Kashmir was the deadliest for a quarter of a century and marked a dramatic shift with the targeting of civilians instead of Indian security forces.
“If India wants to go to war, then come forward openly,” businessman Ajmal Baloch told AFP at a protest called by a religious party and attended by around 700 people Lahore, where the main border crossing with India is located.
India has said it will suspend the Indus Water Treaty, which shares critical water between the two nuclear-armed neighbors, although it has no major means of restricting the river’s flow downstream to Pakistan.
However, protesters including Baloch raged against the “unacceptable” threat.
“Water is our right and, God willing, we will reclaim it, even if that means through war. We will not back down,” 25-year-old Muhammad Owais said.
Around 300 people brandishing placards carrying anti-India slogans marched through the main city of Muzaffarabad in Pakistan-administered Kashmir.
“If India makes the mistake of attacking, the Pakistani Kashmiris will fight on the frontline, we’re ready to die for Pakistan,” said Shoukat Javed Mir, a senior leader of the Pakistan People’s Party in the region.
In Quetta, the capital of Balochistan province, around 150 people staged a protest.


Pakistani Olympic gold medalist Arshad Nadeem declines invitation to India championship 

Pakistani Olympic gold medalist Arshad Nadeem declines invitation to India championship 
Updated 24 April 2025
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Pakistani Olympic gold medalist Arshad Nadeem declines invitation to India championship 

Pakistani Olympic gold medalist Arshad Nadeem declines invitation to India championship 
  • Indian javelin star Neeraj Chopra has invited Nadeem to participate in Bengaluru Classic Throwing Championship on May 24
  • Nadeem cites participation at 26th Asian Athletics Championships in South Korea from May 27-31 for skipping Indian event

KARACHI: Pakistani Olympic gold medalist Arshad Nadeem this week declined Indian javelin star Neeraj Chopra’s invitation to participate in the Bengaluru Classic Throwing Championship due to prior commitments.

The Bengaluru Classic Throwing Championship, also known as the Neeraj Chopra Classic, is an international javelin event set to be held on May 24 as part of the World Athletics Gold Label series to promote elite competition in India.

Nadeem, 28, cited participation at the 26th Asian Athletics Championships scheduled from May 27-31 in Gumi, South Korea, as the reason for skipping the Indian event.

“Yes, I am not going,” he told Arab News in a text message. “Because I am going to the Asian Championships.”

According to the official Olympics website, Nadeem said Chopra’s event was scheduled for May 24 while he had to leave for South Korea on May 22.

“I have been training hard for the Asian Championship,” it quoted him as saying. “I am grateful to Chopra for inviting me to the event.”

Nadeem made history at the Paris 2024 Olympics by winning Pakistan’s first-ever athletics gold with a record-breaking javelin throw of 92.97 meters. His throw not only set a new Olympic and Asian record but also ended Pakistan’s 32-year Olympic medal drought. 

He has since become a national hero, inspiring millions with his journey from humble beginnings in smalltown Mian Channu to the top of the Olympic podium.


Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India

Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India
Updated 20 min 4 sec ago
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Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India

Pakistan’s stocks, dollar bonds plunge amid investor concerns over surging tensions with India
  • Pakistani stocks lose two percent of their index value at close of market, dollar bonds decline by more than four cents
  • Tensions between India and Pakistan surged this week after Delhi blamed Islamabad for an attack in Jammu and Kashmir

KARACHI: Pakistan’s stocks and dollar-denominated bonds plunged in value on Thursday, which financial experts attributed to investor concerns over surging tensions between Islamabad and New Delhi. 

Pakistan’s stocks shed two percent of their index value when the market closed on Thursday, as per data from the Pakistan Stock Exchange (PSX). The benchmark KSE-100 Index plummeted to 114,661 points but managed to recover some ground before closing at 115,019.81 points. 

Pakistan’s dollar-denominated bonds maturing in 2036 also declined by more than four cents to 74 cents, international news agency Reuters reported, citing data from Tradeweb. Pakistani financial experts attributed the plunges to increasing investor concerns after renewed tensions between Islamabad and New Delhi. 

New Delhi on Wednesday blamed Pakistan for being involved in an attack this week in Indian-administered Kashmir. Gunmen killed 26 men at a tourist site in the Anantnag district in Indian-administered Kashmir, following which India announced it was suspending its decades-old water-sharing treaty with Pakistan, among a raft of measures that included downgrading ties with Islamabad on Wednesday. Pakistan denied involvement in the attack and reciprocated with similar measures on Thursday. 

“Both the KSE-100 and Nifty-50 are in the red today due to pressure from rising Pakistan-India tensions following the Pahalgam incident,” Najeeb Ahmed Khan Warsi, head of online trading at brokerage firm Foundation Securities Ltd., told Arab News.

The Nifty-50 is India’s National Stock Exchange index, representing the float-weighted average of the country’s 50 largest listed companies.

Warsi said investor sentiment remained “cautious” despite corporate earnings largely aligning with market expectations, noting that trading at Asian markets had also subdued with global recovery losing momentum amid uncertainty over the US–China tariff policy.

“Geopolitical and global economic concerns continue to overshadow market fundamentals,” he said. 

Kamal Ahmed, an analyst at AKD Securities Ltd., said whenever border tensions arise, stock markets in both countries experience uncertainty. This prompts investors to take safer positions that impacts the market negatively. 

“The market sentiment going forward will depend on how long this standoff lasts,” Ahmed explained. “Investors will remain cautious and the market could decline further if the situation escalates.”

Top brokerage firm Topline Securities said the plunge reflected “heightened investor caution.”

“Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 505 million shares and a turnover of Rs24.44 billion ($87.94 million), underscoring continued investor engagement amid macro and geopolitical overhangs,” Topline Securities said in a statement. 

Despite being supported by strong earnings, Pakistan’s stock index has lost 2.9 percent since Tuesday, when the attack took place. Pakistan’s stock market has been performing impressively, gaining more than 80 percent last year in both dollar and rupee terms. This surge was primarily driven by investor optimism surrounding a positive review by the International Monetary Fund, whose executive board is expected to approve a $1 billion tranche for Pakistan next month.

Further positive developments, such as global ratings agency Fitch recently upgrading Pakistan’s credit rating, are expected to support the growth of the country’s equities.