ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif and Chinese President Xi Jinping on Wednesday agreed to enhance cooperation on the China-Pakistan Economic Corridor (CPEC) and strengthen bilateral strategic partnership during their meeting, the Prime Minister’s Office (PMO) said in a statement.
Sharif arrived in Beijing on Tuesday on his maiden two-day official visit to the country since assuming office in April. Pakistan’s prime minister is in Beijing to meet the Chinese leadership and discuss the $65 billion economic corridor in Pakistan that connects China to the Arabian sea.
Sharif is one of the first foreign leaders to visit China since President Xi Jinping secured an unprecedented third term as general secretary at the Chinese Communist Party’s 20th party congress this month.
A delegation consisting of federal ministers, special assistants, and senior government officials is accompanying the prime minister on his visit to China.
CPEC, a flagship project of Beijing’s Belt and Road infrastructure initiative, is a $65 billion network of roads, railways, pipelines, and ports in Pakistan that will connect China to Pakistan’s ports and help Islamabad expand and modernize its economy and meet major energy needs.
“In the meeting, mutual cooperation between China and Pakistan, especially in economic fields, was discussed,” the PMO said, adding both leaders met at the Great Hall of the People in Beijing. “Both sides agreed to increase multilateral cooperation, including CPEC, between China and Pakistan and further strengthen strategic partnership,” the statement added.
As per the PMO, Sharif thanked Jinping for China’s assistance to Pakistan to recover from devastating floods that have killed over 1,700 in the country since mid-June.
The Chinese president assured Sharif that Beijing would continue to extend its support to Pakistan for sustainable economic development and to harness its potential as a geo-economic hub.
He also announced an additional assistance package of RMB 500 million for Pakistan’s post-flood relief and rehabilitation efforts, the PMO said.
PM Sharif invited President Jinping to visit Pakistan at an early date, to which the Chinese president agreed, the PMO said.
In a separate meeting with Chinese investors and representatives of Chinese companies, PM Sharif invited them to invest in drinking water supply and solar power projects in Pakistan.
Sharif’s government alleges that the CPEC project was slowed down during the tenure of ousted former premier Imran Khan, a charge the latter denies.
“I am aware that there have been many problems in the past for which we apologize but after assuming power on April 11, 2022, we have solved the majority of the problems,” Sharif said during the meeting.
“160 billion rupees owed to Chinese companies have been paid and a revolving fund has been created from 50 billion rupees by the State Bank,” he added.
Sharif said that the best possible security measures were being undertaken to protect safety of Chinese residents in Pakistan.
PM Sharif is scheduled to meet his Chinese counterpart, Li Keqiang, later in the day.
PM Sharif, President Xi agree to enhance cooperation on CPEC, strategic partnership
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PM Sharif, President Xi agree to enhance cooperation on CPEC, strategic partnership
- Sharif is on a two-day visit to China with a high-level delegation to discuss debt, CPEC project
- Xi Jinping announces RMB 500 million in flood aid for Pakistan, says Prime Minister’s Office
Pakistan condemns India’s ‘unprovoked’ military action during talks with UK foreign secretary
- Pakistan plans to phase out key import duties over five years to boost export competitiveness
- Analysts say the decision is driven by local budget proposals, not tariff pressure from Washington
KARACHI: Pakistan on Friday approved a major reduction in import tariffs as part of its broader effort to revive the economy, boost exports and attract foreign investment, an official statement circulated by the Prime Minister’s office said.
The move comes as Pakistan emerges from a prolonged economic crisis and shifts from restrictive import controls, previously used to protect dwindling foreign currency reserves, toward policies aimed at sustaining growth and attracting investment. With inflation easing and macroeconomic indicators improving, the government is working on tariff reforms to boost industrial productivity.
Pakistani exports, especially in textiles, engineering and pharmaceuticals, rely heavily on imported inputs, making import duties a key factor in export competitiveness. The issue came up for decision during a high-level meeting on the National Tariff Policy, chaired by Prime Minister Shehbaz Sharif in Islamabad.
“In line with the government’s economic recovery plan, the prime minister has taken a historic step by approving a gradual but significant reduction in import tariffs,” the statement said, calling it “a key milestone” in achieving economic stability and enabling export-led growth.
Under the approved changes, Pakistan will phase out additional customs duties, currently ranging from two to seven percent, along with regulatory duties, between five and 90 percent, over the next four to five years.
The government will also cap general customs duties at 15 percent, compared to current rates that sometimes exceed 100 percent, and limit tariff slabs to four categories to reduce complexity and ensure a level playing field across industries.
“It’s too early to comment whether the focus of the government is to reduce or abolish these duties on raw materials or finished products,” Shankar Talreja, head of research at Topline Securities, told Arab News.
“If duties are abolished on raw materials, it may generate the desired results of increase in exports,” he added.
Talreja maintained some industries in Pakistan needed these duties to remain in place to continue being viable businesses.
He noted that in the absence of them, Chinese products could inundate the market, which could adversely impact the local industry.
However, the official statement said the policy shift was expected to support the government’s goals of curbing unemployment, containing inflation further and providing dignified employment opportunities, particularly for educated youth.
Rao Aamir Ali, deputy head of research at Arif Habib Limited, said the government’s decision related to the import duties was not in response to the United States’ “reciprocal tariffs.”
“This move is not related to Pakistan’s tariff issue with the US,” he told Arab News.
“It is part of the budget proposals from various industrial sectors seeking reduction in customs duties to cut their input costs,” he added.
Sharif ordered the formation of an implementation committee to oversee the rollout of the tariff reforms during the meeting and reiterated that economic revival remained his administration’s top priority.
Pakistan moves to cut import tariffs in bid to boost exports, attract investment
- Pakistani exports rely heavily on imported inputs, making import duties important for export competitiveness
- Government plans to phase out additional customs and regulatory duties in Pakistan in the next five years
KARACHI: Pakistan on Friday approved a major reduction in import tariffs as part of its broader effort to revive the economy, boost exports and attract foreign investment, an official statement circulated by the Prime Minister’s office said.
The move comes as Pakistan emerges from a prolonged economic crisis and shifts from restrictive import controls, previously used to protect dwindling foreign currency reserves, toward policies aimed at sustaining growth and attracting investment. With inflation easing and macroeconomic indicators improving, the government is working on tariff reforms to boost industrial productivity.
Pakistani exports, especially in textiles, engineering and pharmaceuticals, rely heavily on imported inputs, making import duties a key factor in export competitiveness. The issue came up for decision during a high-level meeting on the National Tariff Policy, chaired by Prime Minister Shehbaz Sharif in Islamabad.
“In line with the government’s economic recovery plan, the prime minister has taken a historic step by approving a gradual but significant reduction in import tariffs,” the statement said, calling it “a key milestone” in achieving economic stability and enabling export-led growth.
Under the approved changes, Pakistan will phase out additional customs duties, currently ranging from two to seven percent, along with regulatory duties, between five and 90 percent, over the next four to five years.
The government will also cap general customs duties at 15 percent, compared to current rates that sometimes exceed 100 percent, and limit tariff slabs to four categories to reduce complexity and ensure a level playing field across industries.
The policy shift is expected to support the government’s goals of curbing unemployment, containing inflation further and providing dignified employment opportunities, particularly for educated youth.
Sharif also ordered the formation of an implementation committee to oversee the rollout of the tariff reforms and reiterated that economic revival remained his administration’s top priority.
Pakistan says agreed with India on ‘phased de-escalation’ after last week’s strikes
- The latest conflict between India and Pakistan had sparked global concerns that it could spiral into a full-blown war
- Four days of intense drone, missile and artillery strikes left around 70 people, including civilians, dead on both sides
ISLAMABAD: Pakistan has agreed with India for “phased de-escalation” after last week’s military conflict between the nuclear-armed neighbors, the Pakistani foreign office said on Friday, adding that military officials from both countries had been in “periodic contacts.”
The latest conflict between India and Pakistan had sparked global concerns that it could spiral into a full-blown war before a ceasefire was announced by United States President Donald Trump. Fighting began when India launched strikes on May 7 against what it called “terrorist camps” in Pakistan following an April attack in Indian-administered Kashmir which killed 26 people.
New Delhi blamed Islamabad for backing the militants it claimed were behind the attack — the deadliest on civilians in Kashmir in decades. Pakistan denies the charge and has demanded a credible, international probe into the assault. Four days of intense drone, missile and artillery exchanges left around 70 people, including dozens of civilians, dead on both sides.
Speaking at a press briefing in Islamabad, Pakistani foreign office spokesman Shafqat Ali Khan said the ceasefire between both nations was achieved through “facilitation of several friendly nations,” reiterating Islamabad’s support for President Trump’s announcement of engaging with Pakistan and India to seek a resolution to the Kashmir dispute.
“I would like to highlight that Directors General of Military Operations of Pakistan and India have maintained periodic contacts since 10th May 2025. Both sides have agreed on a structured mechanism for phased de-escalation,” he said, adding that Pakistan was committed to the ceasefire.
“As a goodwill gesture, Pakistan handed over an Indian Border Security Force constable on May 14, 2025. In return, India released a sepoy of Pakistan Rangers.”
There was no immediate response from New Delhi to Khan’s statement but it came hours after Indian Defense Minister Rajnath Singh said the International Monetary Fund (IMF) should reconsider a one-billion-dollar loan to Pakistan, alleging Islamabad was “funding terror.” Both India and Pakistan, who are members of the International Atomic Energy Agency, have also accused each other of failing to control their nuclear weapons.
“I believe a big portion of the $1 billion coming from IMF will be used for funding terror infrastructure,” Singh told troops at an air force base in western India. “I believe any economic assistance to Pakistan is nothing less than funding terror.”
The IMF last week approved a loan program review for Pakistan, unlocking a $1 billion payment which the state bank said has already been received. A fresh $1.4 billion loan was also approved for Pakistan under the IMF’s climate resilience fund.
Khan said at a time when the international community was actively promoting regional peace and stability, India’s rhetoric reflected a “persistent tendency to distort facts, justify aggression, and cast unwarranted aspersions” on Pakistan’s nuclear assets.
“Pakistan as a responsible state remains committed to the ceasefire and to taking necessary steps toward de-escalation and regional stability,” he said.
“Given India’s belligerent posture, we call upon our international partners to ensure that India honors its commitments and refrains from further aggression. Should India resume hostilities, Pakistan will have no choice but to respond.”
Bitter rivals India and Pakistan have fought three wars, including two over the disputed region of Kashmir, since gaining independence from British rule in 1947. Both claim the Himalayan territory in its entirety but rule it in part.
India has long battled an insurgency on the side it rules by armed separatists fighting for independence or a merger with Pakistan. New Delhi accuses Pakistan of backing the militants, Islamabad says it only offers political and diplomatic support to the Kashmiris.
The region has long been described as the “nuclear flashpoint” of South Asia and prompted President Trump last week to offer Washington’s mediation to resolve the issue.
“Pakistan firmly believes in peaceful coexistence. We prioritize dialogue and diplomacy over conflict and confrontation. We have consistently advocated for meaningful engagement and result-oriented dialogue to resolve all outstanding issues, including the core dispute of Jammu and Kashmir,” Khan said.
“A just and peaceful settlement of these disputes remains indispensable for lasting peace in South Asia.”
India has for years insisted Kashmir is a bilateral issue and not allowed any third-party mediation.
UK, Pakistan foreign ministers meet after India conflict
- The conflict between nuclear-armed neighbors India, Pakistan sparked global concerns that it could spiral into a full-blown war
- Four days of intense drone, missile and artillery exchanges, killed around 70 people, including dozens of civilians, on both sides
ISLAMABAD: UK Foreign Secretary David Lammy met with his Pakistani counterpart in Islamabad on Friday, a week after the country’s most serious military confrontation with India in decades.
The latest conflict between nuclear-armed neighbors India and Pakistan had sparked global concerns that it could spiral into a full-blown war before a ceasefire was announced by United States President Donald Trump.
Lammy was received by Pakistan’s Foreign Minister Ishaq Dar at the Foreign Office, images broadcast by state television showed.
The United Kingdom was among several nations to urge de-escalation after last week’s clashes, and Prime Minister Keir Starmer said at the time that Britain was “urgently engaging” with both countries.
Iran’s Foreign Minister Abbas Araghchi and Saudi Arabia’s Minister of State for Foreign Affairs, Adel Al-Jubeir, separately visited both countries last week offering to mediate.
Fighting began when India launched strikes on May 7 against what it called “terrorist camps” in Pakistan following an April attack in Indian-administered Kashmir which killed 26 people.
New Delhi blamed Islamabad for backing the militants it claimed were behind the attack — the deadliest on civilians in Kashmir in decades. Pakistan denies the charge.
Four days of intense drone, missile and artillery exchanges ensued, leaving around 70 people, including dozens of civilians, dead on both sides.
Both India and Pakistan are members of the International Atomic Energy Agency and have accused each other of failing to control their nuclear weapons.
Flydubai begins operations in Pakistan’s northwest as first flight lands in Peshawar
- Peshawar is one of the oldest cities in South Asia, which features several cultural and historical landmarks
- Flydubai will operate daily flights between Dubai and Peshawar, offering customers ‘more options for travel’
ISLAMABAD: Flydubai, an Emirati government-owned airline, has launched its daily flights to the northwestern Pakistani city of Peshawar, the Pakistani Airports Authority (PAA) said on Friday.
Peshawar in Pakistan’s northwestern Khyber Pakhtunkhwa province has a rich history that makes it one of the oldest cities in South Asia. Peshawar features cultural landmarks like the historic Bala Hisar Fort and the Qissa Khwani Bazaar, which once served as a gathering places for traders and poets.
The inaugural flydubai flight arrived at Peshawar’s Bacha Khan International Airport at around 12:30am on Friday, carrying 164 passengers, according to the PAA. It was given a water cannon salute upon arrival at the airport, followed by a ceremony to mark the start of airline operations in Peshawar.
“Flight FZ-375 departed back to Dubai at 2:20am with 184 passengers,” the PAA said in a statement. “Flydubai will operate seven flights a week.”
Flydubai has built a growing network of more than 130 destinations, 97 of which were underserved markets and did not previously have direct air links to Dubai, according to the airline, which has a fleet of 89 Boeing 737 aircraft.
The airline first started operating flights to Pakistan in 2010 with the launch of flights to the southern port city of Karachi. In addition to Islamabad and Lahore, the carrier also flies to Faisalabad, Multan, Quetta and Sialkot cities of Pakistan.
Flydubai this month said its flights to Peshawar airport will operate from Terminal 2 at Dubai International (DXB).
“Flydubai will operate a daily service between Dubai and Peshawar, offering customers from the UAE and the region more options for travel,” it said.
