Pakistan finance minister cancels US trip due to political crisis

Pakistan finance minister Ishaq Dar gestures during a press briefing in Islamabad on January 4, 2023. (Photo courtesy: Twitter/FinMinistryPak)
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Updated 08 April 2023
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Pakistan finance minister cancels US trip due to political crisis

  • Ishaq Dar denies his decision had anything to do with a holdup in Pakistan’s International Monetary Fund bailout program
  • The minister says he canceled the trip on PM Sharif’s instruction due to the ‘constitutional crisis’ created by the apex court

KARACHI: Pakistan Finance Minister Ishaq Dar on Saturday said he had canceled his trip to Washington for the spring meetings of the International Monetary Fund and World Bank on the orders of the prime minister due to the political situation in the country.

However, Dar said he would attend important bilateral and multilateral meetings virtually and a Pakistani delegation would be present in Washington.

Pakistan is in danger of defaulting on its debt, with an International Monetary Fund bailout program stalled since November, while a bruising political battle is raging between the government and former prime minister Imran Khan.

Dar said that the crisis had been compounded by a recent Supreme Court order striking down plans to delay elections to two provincial assemblies scheduled for next month. The order has created a standoff between the government and the court.

"We are stuck in a strange mess as a country… so under these circumstances, on the orders of the prime minister, I have dropped plans to be there [in Washington] physically," Dar said in a televised address.

The minister rejected reports of the canceled trip being linked to a holdup in Pakistan's IMF bailout program.

He added that a "constitutional crisis" was created by the Supreme Court, which has demanded that the government provide 21 billion Pakistani rupees ($74 million) to the election authorities by Monday to conduct the polls.

IMF BAILOUT

Dar said that Pakistan, on its part, had completed all requirements of the IMF's program review for the release of over $1.1 billion in critical funding for the cash-strapped country.

He said all that remained was a confirmation by one country that it would provide Pakistan $1 billion to shore up its external account requirements. Another country had already confirmed it would provide $2 billion, he added.

While Dar did not name the two countries, Pakistan's junior finance minister on Thursday said Saudi Arabia had conveyed to the IMF its commitment to provide financing to Pakistan.

Local media has widely reported that $2 billion have been committed by Saudi Arabia, while a confirmation of $1 billion was awaited by the United Arab Emirates.

The minister said once the $1 billion was confirmed, a staff level agreement would be reached. He denied that there were any other pending issues.

Pakistan is in dire need of funds with its foreign exchange reserves hovering around $4.2 billion which provides barely one month of import cover.

 


OIC welcomes India-Pakistan ceasefire, calls for ‘constructive dialogue’ to resolve issues

Updated 8 sec ago
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OIC welcomes India-Pakistan ceasefire, calls for ‘constructive dialogue’ to resolve issues

  • India and Pakistan used fighter jets, drones, missiles and artillery to attack each other last week
  • OIC calls on India, Pakistan to engage in dialogue in accordance with UN Security Council resolutions

ISLAMABAD: The Organization of Islamic Cooperation (OIC) this week welcomed the ceasefire between India and Pakistan after days of fighting, calling for the nuclear-armed neighbors to engage in “constructive dialogue” to resolve their outstanding issues, Pakistani state media reported. 

US President Donald Trump on Saturday announced India and Pakistan had agreed to a ceasefire after the two countries were engaged in conflict. The two sides used fighter jets, drones, missiles and artillery to attack each other in the worst fighting between them since the 1999 Kargil war, leaving around 70 people dead on both sides of the border.

“The Organization of Islamic Cooperation today welcomed the ceasefire between Pakistan and India and lauded the countries that brought two sides together to finalize the agreement,” state broadcaster Radio Pakistan reported on Monday. 

The global body of Muslim nations called on the international community to “redouble efforts” and encourage Pakistan and India to engage in a “constructive dialogue” to resolve outstanding issues, including the Kashmir dispute. 

It asked both countries to engage in dialogue through peaceful means and in accordance with the relevant United Nations Security Council Resolutions.

“The OIC also reaffirmed its principled and firm position, calling for a peaceful resolution to Jammu and Kashmir issue,” Radio Pakistan added. 

At the heart of India and Pakistan’s dispute lies the Himalayan territory of Kashmir. The disputed region is claimed in full by both India and Pakistan, who only govern parts of it separated by a de facto border known as the Line of Control. 

India and Pakistan have fought two wars out of three since 1947 over Kashmir. India has for years insisted Kashmir is a bilateral issue and not allowed any third-party mediation.

Tensions, however, remain high since Saturday’s announcement by Indian Foreign Secretary Vikram Misri that the 1960 World Bank-brokered treaty would remain in abeyance, signaling deeper diplomatic rifts despite the temporary cessation of hostilities between the two neighbors.

India suspended the treaty, which ensures water for 80 percent of Pakistani farms, a day after the April 22 attack in Indian-administered Kashmir. Islamabad described the Indian move to suspend the treaty as an “act of war.”


Pakistan Hajj mission chief says Saudi digital innovations have ‘revolutionized’ pilgrimage experience

Updated 19 min 35 sec ago
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Pakistan Hajj mission chief says Saudi digital innovations have ‘revolutionized’ pilgrimage experience

  • Saudi Arabia has several apps in recent years to streamline booking, health, travel and other services
  • More than 112,000 Pakistani pilgrims will benefit from the innovation during this year’s pilgrimage

ISLAMABAD: Saudi Arabia has “revolutionized” spiritual experience of Hajj pilgrims by means of various mobile applications and digital platforms, Pakistan’s Hajj mission chief said on Monday.

Over the last few years, Saudi Arabia has launched mobile apps like Nusuk, Hajj Navigator, Tawakkalna and Asefny to streamline services, making the Hajj experience smoother by offering real-time guidance and ensuring pilgrim safety.

The Nusuk app offers permit issuance, booking services, interactive maps, real-time updates and health facility access — all in multiple languages. Tawakkalna provides information and services related to the pilgrimage, Hajj Navigator offers real-time maps, crowd updates and traffic alerts. Asefny allows requests for emergency medical services.

“These innovations have made the pilgrimage significantly easier, providing services at the click of a button and eliminating the need to wait in long queues,” Director-General of Pakistan Hajj Mission Abdul Wahab Soomro told Arab News from Makkah.

He said the applications have assisted all foreign missions with early bookings and other arrangements, contributing to better Hajj planning.

“There is an e-Hajj portal where all Hajj contracts, such as those for buildings, camps and service providers are uploaded which has helped complete payments and other formalities through a unified platform,” Soomro said.

About arrangements for Pakistani pilgrims, the official said around 89,000 Pakistani pilgrims are performing Hajj under the government scheme this year and all of them have been accommodated near the Prophet’s Mosque in Madinah.

In Makkah, he said, pilgrims were given residence in the “best hotels and buildings” in Azizia and Batha Quraish neighborhoods.

“For the first time in Pakistan’s history, the Mina arrangements for government scheme pilgrims are done in fully air-conditioned camps, with sofa-cum-beds replacing mattresses and shields provided for bag storage,” he added.

Pakistan’s Hajj medical mission includes one hospital each in Makkah and Madinah, along with two dispensaries in Madinah and nine in Makkah, according to the official. All of these are fully functional.

On April 29, Pakistan launched its Hajj flight operation which will continue till May 31. However, the operations witnessed some disruptions last week due to the closure of Pakistani airspace, amid a military standoff with India.

Soomro shared that they were trying to address the flight disruptions by arranging special flights.

“More than 25,000 Pakistani pilgrims have arrived in Saudi Arabia so far; 11,543 in Makkah and 13,477 in Madinah,” he said.

The annual pilgrimage is expected to take place between June 4 and June 9 this year.

Besides the 89,000 individuals performing Hajj under the government scheme, 23,620 Pakistanis will perform the pilgrimage through private tour operators this year.


In Pakistan, ceasefire with India seen as military victory, fueling surge of nationalistic fervor

Updated 12 May 2025
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In Pakistan, ceasefire with India seen as military victory, fueling surge of nationalistic fervor

  • Pakistan has trumpeted successes in the skies, claiming its pilots shot down five Indian fighter jets in aerial battles
  • India has released satellite images showing serious damage to air strips and radar stations at Pakistani military bases

ISLAMABAD: Pakistani officials and the public on Monday celebrated a ceasefire with India as a victory in their latest military confrontation which had raised widespread concerns that the two nuclear powers could end up in all-out war before a sudden truce was called.
Tensions between India and Pakistan over an attack in Indian-administered Kashmir that New Delhi blamed on Islamabad escalated last Wednesday, with India striking multiple Pakistani cities with missiles. Islamabad said 31 civilians were killed while India insisted it had hit “terrorist” infrastructure.
This followed nearly four days of the two nations hitting each other with missiles, drones and artillery in which dozens were killed, until Saturday evening when US President Donald Trump announced a surprise ceasefire that has largely held, except for a few alleged violations in the disputed Kashmir regions on both sides.
Pakistan has said its pilots shot down five Indian fighter jets in aerial battles, including three advanced French-made Rafales. India has released new satellite images showing serious damage to air strips and radar stations at what Indian defense officials say are multiple Pakistani military bases crippled by massive Indian airstrikes. Pakistan itself admitted India had tried to hit three air bases, including one in Rawalpindi, where the military’s highly fortified headquarters are located.
In both nations, political and military leaders are spinning the latest conflict as a victory.
On Monday, Pakistani Premier Sharif announced that his country would annually observe May 10 as ‘Youm-e-Marka-e-Haq,’ which means the Day of the Battle of Truth, to celebrate the success of Pakistan’s retaliatory strikes against India.
“The professional capabilities of our brave forces have made us proud,” Sharif said in a statement. “Youm-e-Marka-e-Haq will be celebrated every year across the country with enthusiasm and spirit of national unity.”
Even before the announcement of the commemoration day, crowds have gathered daily in the streets of several Pakistani cities since the ceasefire to celebrate what Sharif described as “military history” achieved by “our brave army in a spectacular fashion.” Parades have also been held at a land border crossing to shower the military with petals.
During a visit to a hospital where soldiers and civilians wounded during the four-day standoff were recovering, Pakistani army chief, General Asim Munir, said Pakistan’s retaliatory strikes were a “defining chapter” in the country’s military history, lauding the army’s “resolute and unified response” and the “steadfast support of the Pakistani people.”
Pakistan’s parliament also passed a resolution on Monday commending the army for its “victory.”
“[The House] commends the valiant armed forces of Pakistan for their exemplary professionalism, vigilance and courage in defending the sovereignty of Pakistan in response to unprovoked Indian aggression with exceptional restraint and responsibility, and through a measured and befitting response,” the resolution said.
“This House congratulates the entire nation which rose above all differences and stood united behind its leadership across the political spectrum with one voice.”
“HISTORY OF CONFLICT“
In India, premier Narendra Modi said New Delhi had only “paused” its military action and would “retaliate on its own terms” if there is any future militant attack on the country.
At a press briefing on Sunday, Indian military spokespeople offered more details on the offensive against Pakistan and claimed it was Pakistan that had first requested a ceasefire.
India said five of its soldiers were killed by Pakistani firing over the border and claimed Pakistan lost about 40 soldiers in firing along the line of control. It also claimed to have killed 100 terrorists living over the border in Pakistan. The numbers could not be verified.
It also claimed to have “downed a few Pakistani planes,” though it did not elaborate further. Asked about claims made by Pakistan, and backed up by expert analysis of debris, that Pakistani missiles had downed at least three Indian military jets during the offensive on Wednesday, including multimillion-dollar Rafale jets, India said, “losses are a part of combat” and that all its pilots had returned home.
The hostilities between the nuclear-armed rivals began after a deadly attack on tourists in Kashmir that killed 26 tourists last month. India accused Pakistan of backing the militants, a charge Islamabad denied.
Here is a look at multiple conflicts between the two countries since 1947:
1947 — Months after British India is partitioned into a predominantly Hindu India and a Muslim-majority Pakistan, the two young nations fight their first war over control of Muslim-majority Kashmir, then a kingdom ruled by a Hindu monarch. The war killed thousands before ending in 1948.
1949 — A UN-brokered ceasefire line leaves Kashmir divided between India and Pakistan, with the promise of a UN-sponsored vote that would enable the region’s people to decide whether to be part of Pakistan or India. That vote has never been held.
1965 — The rivals fight their second war over Kashmir. Thousands are killed in inconclusive fighting before a ceasefire is brokered by the Soviet Union and the United States. Negotiations in Tashkent ran until January 1966, ending in both sides giving back territories they seized during the war and withdrawing their armies.
1971 — India intervenes in a war over the independence of East Pakistan, which ends with the territory breaking away as the new country of Bangladesh. An estimated 3 million people are killed in the conflict.
1972 — India and Pakistan sign a peace accord, renaming the ceasefire line in Kashmir as the Line of Control. Both sides deploy more troops along the frontier, turning it into a heavily fortified stretch of military outposts.
1989 — Kashmiri dissidents launch a bloody rebellion against Indian rule. Indian troops respond with brutal measures, intensifying diplomatic and military skirmishes between New Delhi and Islamabad. India says Pakistan supports the insurgency, which it denies.
1999 — Pakistani soldiers and Kashmiri fighters seize several Himalayan peaks on the Indian side. India responds with aerial bombardments and artillery. At least 1,000 combatants are killed over 10 weeks, and a worried world fears the fighting could escalate to nuclear conflict. The US eventually steps in to mediate, ending the fighting.
2016 — Militants sneak into an army base in Indian-controlled Kashmir, killing at least 18 soldiers. India responds by sending special forces inside Pakistani-held territory, later claiming to have killed multiple suspected rebels in “surgical strikes.” Pakistan denies that the strikes took place, but it leads to days of major border skirmishes. Combatants and civilians on both sides are killed.
2019 — The two sides again come close to war after a Kashmiri insurgent rams an explosive-laden car into a bus carrying Indian soldiers, killing 40. India carries out airstrikes in Pakistani territory and claims to have struck a militant training facility. Pakistan later shoots down an Indian warplane and captures a pilot. He is later released, de-escalating tensions.
2025 — Militants attack Indian tourists in the region’s resort town of Pahalgam and kill 26 men, most of them Hindus. India blames Pakistan, which denies it. India vows revenge on the attackers as tensions rise to their highest point since 2019.
Both countries cancel visas for each other’s citizens, recall diplomats, shut their only land border crossing and close their airspaces to each other. New Delhi also suspends a crucial water-sharing treaty.
Days later, India strikes what it calls nine “terror” hideouts across Pakistan and Azad Kashmir with precision missiles. Islamabad retaliates and fires missiles and swarms of drones across multiple northern and western Indian cities, targeting military installations and air bases. India then targets Pakistan’s multiple air bases, radar systems and military installations. As the situation intensifies, the US holds talks with leadership of the two countries, and President Donald Trump announces a ceasefire has been reached.
— With inputs from AP


Pakistan finance minister says conflict with India won’t have large fiscal impact

Updated 12 May 2025
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Pakistan finance minister says conflict with India won’t have large fiscal impact

  • On Monday, US President Donald Trump said the US is ready to help India and Pakistan after a ceasefire agreement
  • Pakistan faces a 29 percent tariff on exports to the US due to a $3 billion trade surplus, currently under a 90-day pause

KARACHI/ISLAMABAD: The recent military escalation with arch-rival India won’t have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment, Pakistan’s Finance Minister said in an interview with Reuters on Monday.
Trade talks with the United States – which had played a key role mediating a ceasefire between the two countries – would likely have progress in “short order” and that Pakistan could import more high-quality cotton, more soy beans and was also exploring other asset classes, including hydrocarbons, Finance Minister Muhammad Aurangzeb said in the online interview.
On Monday, US President Donald Trump said the US is ready to help India and Pakistan after a ceasefire agreement, claiming trade was a big reason they “stopped fighting.”
Pakistan faces a 29 percent tariff on exports to the US due to an approximate $3 billion trade surplus, but this is currently under a 90-day pause announced in April.
The International Monetary Fund (IMF) on Friday approved a $1 billion loan disbursement to Pakistan as part of a larger $7 billion bailout agreement.
Aurangzeb said Islamabad would receive the tranche disbursement on Tuesday.
The IMF executive board also approved a fresh $1.4 billion loan to Pakistan under its climate resilience facility.
The federal budget for the next fiscal year, starting July, will be finalized within the next three to four weeks, with scheduled budget talks with the IMF to take place from May 14-23, he said.
Regarding the India-Pakistan conflict, Aurangzeb described it as a “short duration escalation” with minimal fiscal impact, stating it can be “accommodated within the fiscal space which is available to the government of Pakistan.”
When questioned about potential increased military spending in the upcoming budget, Aurangzeb deferred comment, saying it was premature to discuss specific plans. However, he said: “Whatever we need to do in terms of ensuring that our defense requirements are met will be met.”
Aurangzeb said he expects the Indus Water Treaty, which India unilaterally suspended, to be reinstated and rolled back to where it was.
He said there is not going to be any immediate impact from India’s suspension and Pakistan does not “even want to consider any scenario which does not take into account the reinstatement of this treaty.”
Tensions between India and Pakistan began mounting after the April 22 attack in Indian-administered Kashmir on Hindu tourists that killed 26 people, sparking the worst clashes between the nuclear-armed neighbors in more than two decades.
On Saturday, a ceasefire in the Himalayan region was announced by Trump, following four days of fighting and diplomacy and pressure from Washington.


Army chief, PM to fund reconstruction of Pakistan mosque damaged by Indian strikes — minister

Updated 12 May 2025
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Army chief, PM to fund reconstruction of Pakistan mosque damaged by Indian strikes — minister

  • India last week struck multiple Pakistani cities with missiles over an attack in the disputed Kashmir region
  • Four missiles struck a mosque and an adjacent house in Muridke, killing three civilians and injuring two others

KARACHI: Prime Minister Shehbaz Sharif and Army Chief General Asim Munir will personally finance the reconstruction of a mosque damaged by an Indian missile strike in the Muridke city of Punjab’s Sheikhupura district, a Pakistani federal minister announced on Monday.
India last week struck multiple Pakistani cities with missiles over an attack in the disputed Kashmir region. The strikes drew a “precise, proportionate” response from Islamabad.
However, four Indian missiles hit a mosque and an adjacent house within a complex in Muridke that New Delhi said belonged to a militant group, an allegation Pakistan has denied.
On Monday, Food Minister Rana Tanveer Hussain, Punjab Chief Minister Maryam Nawaz, Gen Munir and other officials paid a visit to the Government Jamia Ummul Qura Mosque in the eastern Pakistani city.
“Announcing the government’s decision to reconstruct the mosque, he (Hussain) stated that the PM and the army chief have pledged to rebuild the mosque at their personal expense,” the Pakistani Ministry of National Food Security and Research said in a statement.
The Indian strikes had killed three Pakistani civilians and injured two others, according to Pakistani media.
During Monday’s visit, Pakistani officials met with the injured civilians and inquired about their well-being, according to the national food ministry. They announced top-tier medical care along with support for the families of the martyrs.
The visit came as director generals of military operations from India and Pakistan held talks, Reuters reported, following a US-brokered ceasefire that stopped four days of intense drone, missile and artillery fire.
Last week’s hostilities were triggered by a militant attack in Indian-administered Kashmir’s Pahalgam resort town that killed 26 tourists on April 22. New Delhi blamed Pakistan for the assault, Islamabad denied it.
Kashmir has remained a flashpoint between India and Pakistan since their independence in 1947, with both claiming the region in full but ruling it in part. Both countries have fought two of their three wars over the region.