KARACHI: The World Bank’s Board of Executive Directors approved $149.7 million in financing for Pakistan to support two projects related to the country’s digital economy and improved flood resilience, according to a statement issued by the international financial institution on Saturday.
The allocated funding of $78 million for the Digital Economy Enhancement Project is expected to enhance financial management through technology-driven solutions and data-driven decision-making. The investment in digital economy is also likely to streamline public services, increase transparency and foster economic growth.
Simultaneously, the $71.7 million allocation for the Sindh Barrages Improvement Project is likely to ensure greater flood resilience, a critical issue for Pakistan that is highly vulnerable to climate change.
“The catastrophic floods that hit Pakistan in 2022 were a tragic reminder of the importance to build resilience to such disasters, including by strengthening barrages and their management,” World Bank Country Director for Pakistan Najy Benhassine said in a statement.
“Also, supporting the growing digital economy in Pakistan is key for economic and social development, broadening connectivity and access to government and financial services for citizens and entrepreneurs, particularly women,” he added.
The World Bank statement highlighted the digital economy project aims to develop digital authentication and data-sharing platforms. The initiative will enable Pakistan to respond more effectively and efficiently to economic and environmental shocks.
Additionally, it will enhance the delivery of e-government services to citizens and firms, supporting regulatory reforms in the sector. These reforms will facilitate increased private sector participation while strengthening personal data protection and online safety.
The project also seeks to promote financial inclusion by enabling women in particular to open bank accounts or apply remotely for credit through a smartphone application. It will also contribute to addressing barriers such as limited mobility and digital literacy.
“The digital economy and demand for digital government services have been growing across the country, increasing the need for connectivity, digital payments and secure and trusted digital transactions,” the project team leader, Shan Rehman, said. “The project takes a whole-of-government approach to digital transformation and will help ensure that digital platforms are inclusive and trusted.”
About the other project, the bank said having safe and effective barrages to convey flood waters downstream was a crucial part of building climate resilience in Sindh.
It informed that its financing would contribute to strengthening the provincial Barrage Management Unit’s technical capacities, promoting women’s participation in emergency preparedness and implementing extensive citizen engagement and stakeholder participation.
“Barrages such as the ones supported by SBIP [Sindh Barrages Irrigation Department] are critical for the livelihoods and climate-resilience of the Sindh Province,” said Francois Onimus, who is spearheading the endeavor. “The project will increase the resilience of the canal systems that are fed from these barrages, reducing the adverse impacts of extreme floods and drought events.”
World Bank approves $149.7 million for Pakistan’s digital and flood resilience projects
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World Bank approves $149.7 million for Pakistan’s digital and flood resilience projects
- The bank has allocated $78 million to improve digital economy and $71.7 million to improve the barrage system in Sindh
- Pakistan has been working to find technology-driven financial solutions and strengthen itself against climate-induced disasters
In meeting with US lawmakers, Pakistani delegation says Delhi resisting dialogue with Islamabad
- Pakistan’s PM set up delegation last month, tasking it to present Islamabad’s perspective on recent India conflict
- Pakistani delegation criticizes India’s suspension of water-sharing agreement, says endangers future of entire region
KARACHI: A Pakistani delegation led by former foreign minister Bilawal Bhutto Zardari met a group of American lawmakers on Thursday, telling them that India is consistently resisting dialogue to resolve bilateral issues.
Prime Minister Shehbaz Sharif set up the delegation last month, tasking it to present Pakistan’s point of view regarding the country’s conflict with India last month. India and Pakistan last month engaged in four days of fighting, striking each other with missiles, drones, artillery and fighter jets before Washington brokered a ceasefire on May 10.
Bhutto Zardari’s delegation has held a series of meetings with top international diplomats since arriving in New York on Monday, urging the global community to help India and Pakistan enter a comprehensive dialogue to peacefully resolve their differences.
On Thursday the delegation met members of the US Congressional Pakistan Caucus in Washington. These included Republican party leaders Jack Bergman and Ryan Zinke and Democratic leaders Tom Suozzi and Ilhan Omar, among others.
“Pakistan remains committed to peace, but sadly, India consistently resists dialogue,” Bhutto Zardari was quoted as saying by Bilawal House, his official residence.
The former foreign minister criticized India’s decision to hold in abeyance the Indus Waters Treaty, a decades-old water-sharing agreement with Pakistan.
“India has weaponized water, endangering the future of not only Pakistan but the entire region,” he said.
He warned that if Indian hostility is not curbed in time, it could “seriously jeopardize regional peace.” The Pakistani politician reaffirmed his country’s desire for constructive engagement based on mutual respect and peaceful resolution of disputes, the statement said.
“The members of Congress welcomed the delegation, listened carefully to Pakistan’s concerns, and expressed willingness to strengthen bilateral engagement and regional stability,” the statement concluded.
Tensions between the arch-rivals began on April 22 when militants attacked a resort in Indian-administered Kashmir’s Pahalgam area, killing 26 tourists.
India blamed Pakistan for supporting militants involved in the attack, a charge Pakistan vehemently denied and called for a transparent, international probe into the incident.
Pakistan and India, bitter rivals, have fought two out of three wars over the disputed territory of Kashmir that they both claim in full but govern only parts of.
India accuses Pakistan of supporting militants in the part of Kashmir it administers. Islamabad denies the allegation and says it extends only diplomatic and moral support to the people of Kashmir.
Washington says Pakistan needs to address barriers to American exports, companies
- Islamabad, Washington last week kicked off negotiations after President Trump announced tariffs on countries, including Pakistan
- Talks expected to “sail through” but Pakistan’s textile industry may take a hit if they fail, warns financial analyst Shankar Talreja
KARACHI: Pakistan’s government needs to address its tariff and non-tariff barriers against American exports and companies, a spokesperson at the US consulate general in Karachi said on Thursday as both nations seek to forge closer trade ties through negotiations.
Reva Gupta, the spokesperson at the US consulate general in Karachi, made the comments a week after Pakistan and the US started what the official described as “dynamic” negotiations with Finance Minister Muhammad Aurangzeb on Washington’s imposition of tariffs.
The talks take place as US President Donald Trump imposed steep tariffs on a number of countries earlier this year, a move widely viewed as a setback for the global economy still recovering from the coronavirus pandemic. Pakistan faces a potential 29 percent tariff, currently under a 90-day pause announced in April, on its exports to the US due to a $3 billion trade surplus with the world’s biggest economy.
“In our bilateral engagements with Pakistan, we always message the need to jointly tackle challenges to our trade relationship, including the need for Pakistan to address its longstanding tariff and non-tariff barriers against US exports and companies,” Gupta told Arab News.
The tariffs could be a setback to Islamabad’s hectic efforts aimed at navigating a tricky path to economic recovery. Pakistan hopes to achieve sustainable economic growth driven by exports.
The US is Pakistan’s largest export destination. American exports to Pakistan were valued at $2.1 billion in 2024, up 4.4 percent ($90.9 million) from 2023, according to US government data. The import of goods from Pakistan to the US totaled $5.1 billion in 2024, up 4.9 percent ($238.7 million) from 2023.
“The United States and Pakistan share a robust economic relationship going back decades, of which trade and investment are key elements,” Gupta said. “That the United States remains Pakistan’s largest export market globally is a testament to this strong partnership”.
Gupta, however, referred to US Trade Representative’s (USTR) National Trade Estimate Report which highlights significant foreign barriers to US exports in various countries, including Pakistan.
The USTR details tariff and non-tariff hurdles ranging from Pakistan charging higher tariffs to US businesses to the closure of Internet services, imposing a ban on US beef imports and “perceived politicization” of the anti-graft National Accountability Bureau body.
“US companies have cited concerns that Pakistan has been imposing high tariff rates and, in some cases, additional duties, on products such as automobiles and finished goods,” the report said.
Qamar Sarwar Abbasi, a spokesperson of Pakistan’s finance ministry, did not respond to Arab News’ request for comment.
Some prominent American companies operating in Pakistan include Pepsi-Cola, General Electric International, Procter and Gamble, Pfizer and DuPont, according to the International Trade Administration, a US government agency.
Experts have warned the tariffs could harm Pakistan’s competitiveness in the global market, especially if regional exporters such as China, Bangladesh and Vietnam redirect more goods to Europe, intensifying competition in alternative markets.
‘LIKELY TO SAIL THROUGH’
However, economist Shankar Talreja, who is also the director of research at Topline Securities Ltd. brokerage form, said talks between Washington and Islamabad are likely to “sail through.”
“Pak-US trade talks are likely to sail through as Pakistan exports are primarily based on labor-intensive industry such as textile,” Talreja told Arab News.
He said Pakistan is likely to increase its import of agricultural commodities such as cotton and petroleum products from the US to fill the trade deficit.
But if talks fail, Pakistani textile exports may be adversely affected, he said.
“If talks are not successful, Pakistan textile exports may get hurt in future assuming other countries will successfully negotiate with the US,” the analyst warned.
The textile industry attracts the largest amount of foreign exchange for Pakistan, fetching $17 billion for the cash-strapped nation in FY2024.
Pakistan’s Met Office forecasts ‘severe’ heatwave during Eid Al-Adha holidays
- High pressure likely to develop over country on June 7, expected to grip most areas from June 8
- Day temperatures likely to remain 5°C to 7°C above normal from June 7-12 in country’s upper half
ISLAMABAD: The Pakistan Meteorological Department (PMD) on Thursday forecast a “severe” heatwave in the country during the Eid Al-Adha holidays from June 7 to 12, urging the public to take precautionary measures.
Pakistan ranks among the top ten countries most vulnerable to climate change and has faced increasingly frequent extreme weather events in recent years, including deadly heatwaves and devastating floods.
“Met Office predicted that high pressure is likely to develop over the country on June 7 and is expected to grip most parts from June 8,” the PMD said in a statement.
“Day temperatures are likely to remain 5°C to 7°C above normal in the upper half (central & upper Punjab, Islamabad, Khyber-Pakhtunkhwa, Kashmir, Gilgit-Baltistan) from June 7 to June 12.”
Dust storms and gusty winds are expected across the plains of the country due to intense heat, it added.
The Met Office advised women, the elderly and children to avoid direct sunlight during the day and stay hydrated at all times as precautionary moves.
Farmers were urged to manage their crop activities according to the latest weather conditions and to take care of their livestock.
The Met Office urged authorities to remain vigilant and take necessary measures to prevent any adverse situations arising from the heatwave conditions.
Pakistan experienced its most recent heatwave in May but no loss of life was reported.
In June 2024, nearly 700 people died in less than a week during a severe heatwave in the country, with most fatalities reported in the port city of Karachi and other parts of the southern Sindh province.
A similar heatwave in 2015 claimed over 2,000 lives in Pakistan’s largest city Karachi alone, while catastrophic floods in 2022 left more than 1,700 people dead and displaced over 33 million across the country.
Pakistan says ‘no formal decision’ taken on abrogating bilateral agreements with India
- Pakistan’s defense minister earlier said Simla Agreement with India “has no worth or value”
- Pakistan, India agreed to resolve Kashmir dispute bilaterally in the 1972 Simla Agreement
ISLAMABAD: Pakistan has so far not made any decision to abrogate any bilateral agreement with India, a senior official of the country’s foreign office said on Thursday, hours after Defense Minister Khawaja Asif stated the provisions of Islamabad’s Simla Agreement with Delhi were no longer applicable.
India and Pakistan signed the Simla Agreement in 1972 after the 1971 war between the two countries, which New Delhi won and led to the creation of Bangladesh. One of its main clauses was that India and Pakistan both agreed to bilaterally discuss and resolve the issue of the disputed Himalayan territory of Kashmir.
Another clause of the agreement was that both countries renamed the Ceasefire Line, the de facto border separating Pakistan-administered Kashmir from the one governed by India, to the “Line of Control” (LoC). Both India and Pakistan agreed not to change it unilaterally.
After India suspended a decades-old water-sharing treaty with Pakistan following an attack in Indian-administered Kashmir in April, Pakistan announced a raft of tit-for-tat measures against Delhi. Islamabad said it had the right to hold all bilateral agreements with India, including the Simla Agreement, in abeyance.
Speaking to Geo News, Asif said the “sanctity” of the agreement had ended due to India’s steps and that all of its provisions were no longer applicable. The defense minister said the bilateral agreement as a whole after India and Pakistan’s May military confrontation, “has no worth or value.”
“No formal decision on abrogation of any bilateral agreement with India has so far been made,” a senior official of Pakistan’s Ministry of Foreign Affairs (MoFA) told Arab News in response to questions.
Asif had reiterated Pakistan’s position that India’s move to hold the Indus Waters Treaty (IWT) in abeyance was illegal as the terms dictated that neither of the two parties could alter its status unilaterally.
Signed in 1960, the treaty allocates the six Indus Basin rivers between India and Pakistan, with the World 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.
India can use the western rivers for limited purposes such as power generation and irrigation, without storing or diverting large volumes
Asif said neither the World Bank nor any other institution had any “interference or patronage” in the Simla Agreement when it was signed in 1972.
“So then, the Control Line will once again shift to its original status of Ceasefire Line,” the minister said.
While the fragile ceasefire between India and Pakistan announced on May 10 by US President Donald Trump -persists, tensions remain high as delegations by both nuclear-armed neighbors head to world capitals and blame each other for the May conflict.
Kashmir has always remained the root cause of conflict between India and Pakistan. The two countries claim the region in full but administer only parts of it. They have fought two out of three wars since 1947 over the territory.
Delhi blames Islamabad for fomenting militancy in the part of Kashmir it administers. Pakistan denies the allegations and says it only extends diplomatic support to the people of Kashmir it says are living under “occupation.”
Pakistan PM arrives in Saudi Arabia on two-day visit to bolster bilateral ties
- During his stay on June 5 and 6, Sharif will celebrate Eid Al-Adha, hold bilateral meeting with Crown Prince Mohammed bin Salman
- Discussions are expected to focus on enhancing cooperation in trade, investment and regional security, welfare of Muslim Ummah
ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif arrived in Jeddah on Thursday on a two-day official visit to Saudi Arabia at the invitation of Crown Prince and Prime Minister Mohammed bin Salman, Sharif’s office said, to strengthen bilateral relations between the two longstanding allies.
Sharif’s office earlier on Wednesday said during his stay on June 5 and 6, the Pakistani prime minister will celebrate Eid Al-Adha in the Kingdom and hold a bilateral meeting with Crown Prince Mohammed bin Salman. The discussions are expected to focus on enhancing cooperation in trade, investment and regional security.
Upon arrival in Jeddah, Sharif was received by the Governor of Jeddah, Prince Saud bin Abdullah Jalawi, Saudi Arabia’s Ambassador to Pakistan Nawaf bin Saeed Al-Malki, Pakistan’s Ambassador to Saudi Arabia and senior diplomatic officials.
“The prime minister and the Pakistani delegation departed from Jeddah to Makkah to perform Umrah,” the Prime Minister’s Office (PMO) said.
In an earlier statement, the PMO said Sharif and the Saudi crown prince will discuss ways to further strengthen bilateral cooperation in various fields, including trade and investment, welfare of the Muslim Ummah, and regional peace and security.
Sharif is also expected to express gratitude to the Saudi leadership for their role in de-escalating recent tensions between Pakistan and India.
Last month, following the worst military confrontation between India and Pakistan in decades, Saudi Arabia, along with other Gulf nations, played a key role in mediating between the two nuclear-armed neighbors, helping to avert a potential war.
The visit also comes amid deepening economic ties between Pakistan and Saudi Arabia. In recent months, the two countries have signed multiple agreements aimed at boosting bilateral trade and investment. Notably, Saudi Arabia has committed to a $5 billion investment package to support Pakistan’s economy, which has been grappling with a balance of payments crisis.
Last year, Saudi and Pakistani businessmen signed 34 memorandums of understanding worth $2.8 billion, covering sectors such as industry, technology, and agriculture. Additionally, Saudi Arabia’s Manara Minerals is in talks to acquire a 10-20 percent stake in Pakistan’s $9 billion Reko Diq copper and gold mining project, one of the largest of its kind globally.
Defense cooperation is also a key component of the bilateral relationship. The two nations have a history of military collaboration, with Saudi Arabia providing support to Pakistan during times of regional tension and Pakistan training Saudi forces.
Pakistan has a 2.7 million-strong diaspora in Saudi Arabia, which accounts for the highest remittance inflow, a crucial lifeline for the country’s economy.
