National Assembly passes $62 billion Pakistan budget for next fiscal year

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday called for the establishment of low-emission corridors and a regional carbon market to mobilize climate finance across member states of the Economic Cooperation Organization (ECO), warning that climate change was threatening food security and livelihoods of millions in the region.

Addressing the 17th ECO Summit in Khankendi, Azerbaijan, the Pakistani prime minister highlighted the devastating impacts of climate change and urged regional cooperation to mitigate these risks.

The summit focused on trade, sustainable development and enhanced regional connectivity.

“Like the rest of the world, ECO member states are facing far-reaching impacts of climate change, from melting glaciers, desertification, extreme heat waves, devastating floods and declining agricultural productivity,” Sharif said in his speech. “These challenges threaten the food security and livelihoods of millions of our people. Pakistan remains among the top 10 countries that are most vulnerable to climate change.”

“Pakistan proposes the development of low-emission corridors, an ECO-wide carbon market platform and regional disaster resilience systems,” he continued. “A dedicated framework to mobilize climate finance along with regional clean energy corridors and eco-tourism initiatives can further drive inclusive, sustainable growth, creating green jobs, especially for youth and women and supporting livelihoods in vulnerable regions.”

The prime minister cited the catastrophic 2022 floods in Pakistan as a grim example of climate vulnerability, recalling that over 33 million people were affected, with widespread damage to lives, livelihoods and infrastructure.

He also referenced recent flash floods during the current monsoon season that have claimed over 60 lives, noting that climate-induced disasters now pose an existential challenge for many ECO countries.

TRADE, TOURISM, CONNECTIVITY

The prime minister also urged ECO member states to expedite the implementation of the ECO Trade Agreement, originally envisioned as a cornerstone of regional integration under the ECO Vision 2025.

“Promotion of trade and investment holds the key to securing our common goals for strengthening regional connectivity,” he said, citing the need to activate transport corridors, ensure energy security and foster intra-regional tourism and economic growth.

While the agreement was reached during the 13th ECO Summit in Islamabad in 2017, it is yet to be operationalized.

Sharif called for renewed efforts to build on the region’s shared heritage and historic Silk Road synergies.

“As members of the ECO family, sharing strong commonalities of history and geography, of faith and culture, we have a firm basis for lasting cooperative relationships,” he added. “Let us … channel our collective energies toward a future that guarantees our people’s life of peace, progress and prosperity.”

NEW DELHI: India will launch a $234 million incentive program for civil and military drone makers to reduce their reliance on imported components and counter rival Pakistan’s program built on support from China and Turkiye, three sources told Reuters.

India’s push to build more home-grown drones stems from its assessment of the four-day clash with Pakistan in May that marked the first time New Delhi and Islamabad utilized unmanned aerial vehicles at scale against each other. The nuclear-armed neighbors are now locked in a drones arms race.

New Delhi will launch a 20 billion Indian rupees ($234 million) program for three years that will cover manufacture of drones, components, software, counter drone systems, and services, two government and one industry source, who did not want to be named, told Reuters.

Details of the program have not been previously reported and its planned expenditure is higher than the modest 1.2 billion rupees production-linked incentive scheme New Delhi launched in 2021 to promote drone start-ups, which have struggled to raise capital and invest in research.

India’s civil aviation ministry, which is leading the incentives program, and defense ministry did not immediately respond to emails seeking comment.

Reuters previously reported that India plans to invest heavily in local industry and could spend as much as $470 million on unmanned aerial vehicles over the next 12 to 24 months, in what government and military officers said would be a staggered approach.

In the past, India has mainly imported military drones from its third-largest arms supplier, Israel, but in recent years its nascent drone industry has scaled up its cost-effective offerings, including for the military, although reliance on China continues for certain components such as motors, sensors and imaging systems.

Through the incentives, India is aiming to have at least 40 percent of key drone components made in the country by the end of fiscal year 2028 (April-March), the two government sources said.

“During (the India-Pakistan) conflict there was quite a lot of use of drones, loitering munitions and kamikaze drones on both sides,” Indian Defense Secretary Rajesh Kumar Singh said last week.

“The lesson that we’ve learned is that we need to double down on our indigenization efforts to ensure that we build a large, effective, military drone manufacturing ecosystem.”

India bans import of drones but not their components and the government has planned additional incentives for manufacturers that procure parts from within the country, the two government sources said.

The state-run Small Industries Development Bank of India would also support the incentive program by providing cheap loans for working capital, research and development needs for the firms, the government sources added.

Currently, there are more than 600 drone manufacturing and associated companies in India, according to estimates shared by an industry source involved in the discussions for the incentives program.