Trump aid cut imperils water scheme in Pakistan’s hottest city

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Updated 21 February 2025
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Trump aid cut imperils water scheme in Pakistan’s hottest city

  • Sun-parched Jacobabad city in Sindh province sometimes surpasses 50°C in increasing heatwaves causing health problems like dehydration, heat-stroke
  • In 2012, USAID committed a $66 million grant to uplift Sindh’s municipal services, including renovation of a plant pumping and purifying water from a canal

JACOBABAD: In Pakistan’s hottest city, fresh and filtered water can quench the searing onslaught of climate change — but US President Donald Trump’s foreign aid freeze threatens its vital supply, an NGO says.
Sun-parched Jacobabad city in southern Sindh province sometimes surpasses 50 degrees Celsius (122 degrees Fahrenheit) in increasing heatwaves causing critical health problems like dehydration and heat-stroke.
In 2012, USAID committed a $66 million grant to uplift Sindh’s municipal services, including the flagship renovation of a plant pumping and purifying water from a canal 22 kilometers (14 miles) away.
But Pakistani non-profit HANDS says Trump’s aid embargo has blocked $1.5 million earmarked to make the scheme viable in the long-term, putting the project at risk “within a few months.”
“This has transformed our lives,” 25-year-old Tufail Ahmed told AFP in Jacobabad, where wintertime temperatures are already forecast to pass 30C next week.
“If the water supply is cut off it will be very difficult for us,” he added. “Survival will be challenging, as water is the most essential thing for life.”
Between September and mid-January Sindh saw rainfall 52 percent below average according to the Pakistan Meteorological Department, with “moderate drought” predicted in the coming months.
Heatwaves are becoming hotter, longer and more frequent due to climate change, scientists say.
The project pipes in 1.5 million gallons (5.7 million liters) daily and serves about 350,000 people in Jacobabad, HANDS says — a city where grinding poverty is commonplace.
HANDS said it discovered Trump’s 90-day freeze on foreign assistance through media reports with no prior warning.
“Since everything is just suspended we have to withdraw our staff and we have to withdraw all services for this water project,” HANDS CEO Shaikh Tanveer Ahmed told AFP.
Forty-seven staff, including experts who manage the water purification and service the infrastructure, have been sent home.
The service will likely stop functioning “within the next few months,” Ahmed predicted, and the project will be “a total failure” unless another funder steps in.
The scheme is currently in the hands of the local government who lack the technical or revenue collection expertise HANDS was developing to fund the supply from bill payments, rather than donations.
The international aid community has been in a tailspin over Trump’s campaign to downsize or dismantle swathes of the US government — led by his top donor and the world’s richest man Elon Musk.
The most concentrated fire has been on Washington’s aid agency USAID, whose $42.8 billion budget represents 42 percent of humanitarian aid disbursed worldwide.
But it accounts for only between 0.7 and 1.4 percent of total US government spending in the last quarter century, according to the Pew Research Center.
Trump has claimed USAID is “run by radical lunatics” while Musk has described it as a “criminal organization” needing to be put “through the woodchipper.”
In Jacobabad, 47-year-old local social activist Abdul Ghani pleaded for its work to continue.
“If the supply is cut off it will severely affect the public,” he said. “Poverty is widespread here and we cannot afford alternatives.”
Residents complain the Jacobabad supply is patchy but still describe it as an invaluable service in a city where the alternative is buying water from private donkey-drawn tankers.
Eighteen-year-old student Noor Ahmed said before “our women had to walk for hours” to collect water.
HANDS says the private tankers have a monthly cost of up to 10 times more than their rate of 500 rupees ($1.80) and often contain contaminants like arsenic.
“The dirty water we used to buy was harmful to our health and falling ill would cost us even more,” said 55-year-old Sadruddin Lashari.
“This water is clean. The supply cannot be stopped,” he added.
Pakistan — home to more than 240 million people — ranks as the nation most affected by climate change, according to non-profit Germanwatch’s Climate Risk Index released this year and analizing data from 2022.
That year a third of the country was inundated by unprecedented monsoon floods killing more than 1,700 and causing an estimated $14.9 billion in damages after a punishing summer heatwave.
Jacobabad’s water system also suffered heavy damage in the 2010 floods which killed almost 1,800 and affected 21 million.
Pakistan produces less than one percent of global greenhouse gas emissions which scientists say are driving human-made climate change.
Islamabad has consistently called for countries which emit more to contribute to aid for its population suffering on the front line of climate change.
“It’s incredibly hot here year-round,” said Lashari. “We need water constantly.”


Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

Updated 5 sec ago
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Pakistan regulator unveils new measures to strengthen Shariah-compliant market intermediaries

  • SECP has outlined phased approach encouraging institutional investors to engage with Shariah-compliant brokers
  • Islamic financial institutions being urged to channel takaful, investment activities through specialized intermediaries

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) is proposing new measures aimed at strengthening the presence and operations of Shariah-compliant intermediaries within the capital market, the regulator said in a statement this week.

Pakistan’s Federal Shariat Court (FSC) directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027. Following the order, the government and the State Bank have taken several measures ranging from changing laws to issuing sukuk bonds to replace interest-based treasury bills and investment bonds.

However, documents seen by Arab News earlier this year showed Pakistan’s government had failed to achieve a target set by the central bank to increase the share of Islamic banking deposits in the country by 50 percent by January this year.

“The paper proposes a phase-wise approach for Shariah-compliant institutional investors to route their business through Shariah-compliant brokers based on a plan to be prepared by their respective boards of directors,” the SECP said about the latest proposal. 

“The paper encourages Islamic financial institutions, including providers of Islamic window services, to utilize Shariah-compliant intermediaries for takaful and investment purposes in situations where they are not obligated to do so.”
 
Other proposed measures include creating a specific category for Shariah-compliant intermediaries for greater visibility on the Centralized Gateway Portal and a dedicated list of Shariah-compliant asset management companies on EMLAAK Financials, Pakistan’s first digital mutual fund aggregator. The platform brings together multiple Asset Management Companies (AMCs) and their mutual funds under one roof. It is a venture of ITMinds Limited, a wholly owned subsidiary of the Central Depository Company of Pakistan (CDC).

In order to facilitate Roshan Digital Account (RDA) clients, creating a separate category of Shariah-compliant intermediaries on the websites and mobile apps of Islamic banks would also be explored in coordination with relevant stakeholders, the SECP said.


Pakistan navy thwarted Indian aircraft carrier threat during latest standoff — PM

Updated 29 min 54 sec ago
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Pakistan navy thwarted Indian aircraft carrier threat during latest standoff — PM

  • PM Shehbaz Sharif says Indian aircraft carrier Vikrant reached close to Pakistan by 400 nautical miles before retreating
  • During latest standoff, Indian navy had deployed at least 36 warships which included INS Vikrant-led Carrier Battle Group

ISLAMABAD: Prime Minister Shehbaz Sharif said on Monday an Indian aircraft carrier that had reached as close as 400 nautical miles to Pakistan retreated after realizing the country’s navy was prepared to “respond vigorously” during a military confrontation between the two nations earlier this month. 

The United States played a major role in de-escalating the worst fighting in decades between the two nuclear-armed South Asian rivals, who fired missiles and drones onto each other’s territory and fought with gunfire on their de facto border following weeks of tensions after a deadly April 22 attack on tourists in Indian-administered Kashmir that New Delhi blamed on Islamabad. Pakistan denies involvement.. 

On Monday, the Pakistani PM visited the Naval Dockyard in Karachi to pay tribute to the Pakistan navy for its role in Operation Bunyan-um Marsoos, the code-name given by the Pakistan army to what it calls a retaliatory strike launched in the early hours of May 10 after India attacked at least three of its air bases with missiles. 

“The Prime Minister particularly praised the Navy’s critical role in safeguarding sea lines of communication and ensuring the uninterrupted flow of maritime trade, while maintaining absolute maritime sovereignty through a layered and assured seaward defense,” state broadcaster Radio Pakistan reported.

In his address, Sharif said Indian aircraft carrier Vikrant had retreated after “sensing the preparedness” of the Pakistan Navy. 

Prime Minister Shehbaz Sharif (center) being briefed by Commander Pakistan Fleet about Pakistan Navy’s strategic orientation, operational preparedness and contributions during the ongoing operation, on board PNS TAIMUR at Naval Dockyard in Karachi. 19 May 2025. (Government of Pakistan)

During the latest standoff, the Indian navy had deployed at least 36 warships which included an INS Vikrant-led Carrier Battle Group including 8 to 10 warships

“Indian Navy’s [aircraft carrier] Vikrant had reached close to Pakistan by 400 nautical miles, but after suffering immense losses inflicted by Paki­stan Air Force and Pakistan Army [in May 10 retaliatory strikes], Vikrant retreated, sensing the preparedness of the Pakistan Navy to respond vigorously,” Sharif said. 

India’s navy is believed to hold significant advantage over Pakistan’s, boasting a larger fleet and more diverse capabilities. India’s navy includes aircraft carriers, destroyers, and a substantial submarine fleet, allowing it to project power beyond regional waters, whereas Pakistan’s navy is primarily focused on coastal defense in the Arabian Sea. 

India’s navy comprises over 293 vessels, including two aircraft carriers, 13 destroyers, and 18 submarines, making it a “blue-water” navy with the ability to operate in global maritime zones. INS Vikramaditya and INS Vikrant give India the capability for air power projection and anti-ship operations. 

Pakistan’s navy operates 121 ships, with no aircraft carriers or destroyers. 


Pakistan cenbank launches ‘cashless’ Eid Al-Adha campaign to promote digital payments

Updated 20 May 2025
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Pakistan cenbank launches ‘cashless’ Eid Al-Adha campaign to promote digital payments

  • Campaign aims to streamline sale and purchase of sacrificial animals in 54 designated cattle markets
  • Campaign aims to streamline sale and purchase of sacrificial animals in 54 designated cattle markets

KARACHI: Pakistan’s central bank this week announced it has launched a “Go Cashless” nationwide campaign aimed at promoting digital payments and reducing reliance on cash transactions within designated cattle markets in the days leading up to Eid Al-Adha.

The State Bank of Pakistan (SBP) has undertaken efforts recently to encourage digital transactions in line with Pakistan’s broader economic reforms, which are aimed at strengthening financial systems and increasing transparency in the country. 

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted using cash. 

Millions of Pakistanis are expected to buy sacrificial animals this year at thousands of cattle markets across the country before the Eid Al-Adha festival in June. These cattle are bought mostly via cash each year. 

“The State Bank of Pakistan (SBP) has initiated a nationwide ‘Go Cashless’ campaign to promote digital payments and reduce reliance on cash transactions within cattle markets during the upcoming Eid-ul-Azha,” the SBP said in a statement on Monday. 

It said the initiative is in line with the central bank’s goal of fostering digital financial inclusion throughout Pakistan, and will run from May 20 until June 6 or the night of Eid Al-Adha.

“In partnership with the banking industry, the campaign aims to streamline the sale and purchase of sacrificial animals in 54 designated cattle markets across the country,” the statement said. 

The central bank said within these cattle markets, digital payment solutions can be utilized for various transactions, including the purchase of sacrificial animals, payment for necessities such as water and feed, and settlement of parking fees. 

The SBP said to support buyers and merchants, it has temporarily raised transaction limits effective from May 19 to June 15, 2025 for the following accounts:

For branchless banking level-1 accounts, Asaan Account/Asaan Digital Account and Merchant Accounts, the SBP said it has eliminated daily transaction limits and increased the per-month limit to Rs5,000,000 [$17,694].

“The public is strongly encouraged to take advantage of these convenient and secure digital financial services during the Eid-ul-Azha period,” the central bank said.

Pakistan has witnessed significant growth in digital transactions in recent years. The SBP said in a statement last month that its instant payment system, Raast, processed over 892 million transactions amounting to Rs20 trillion ($72 billion) since its launch in 2021. 

In the second quarter of fiscal year 2025 alone, Raast handled 795.7 million transactions worth Rs6.4 trillion ($23.04 billion)., it added. 


Two soldiers killed as militants ambush security forces convoy in northwest Pakistan— army 

Updated 19 May 2025
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Two soldiers killed as militants ambush security forces convoy in northwest Pakistan— army 

  • Nine militants killed by security forces in Lakki Marwat, Bannu and North Waziristan districts, says military 
  • Islamabad has struggled to contain militancy since a 2022 truce between state, Pakistani Taliban collapsed

ISLAMABAD: Pakistan military’s media wing said on Monday that two soldiers were killed were militants ambushed a security forces’ convoy in the country’s northwestern province bordering Afghanistan. 

The Inter-Services Public Relations (ISPR) said it conducted an intelligence-based operation (IBO) in the northwestern Lakki Marwat district on Sunday night, where five Pakistani Taliban militants were killed. In the second IBO in the northwestern Bannu district, the military said two militants were killed by security forces. 

However, in the North Waziristan district, Pakistani Taliban militants ambushed a security forces convoy in which two militants were killed and also two soldiers. 

“However, during the intense fire exchange, two brave sons of soil, Sepoy Farhad Ali Turi (age: 29 years, resident of District Kurram) and Lance Naik Sabir Afridi (age: 32 years, resident of District Kohat) having fought gallantly, paid the ultimate sacrifice and embraced shahadat [martyrdom],” the ISPR said. 

The military’s media wing said sanitization operations were being conducted to eliminate any other “Khawarji” found in the area, the term the army uses for Tehreek-e-Taliban Pakistan (TTP) or Pakistani Taliban militants. 

“Security forces of Pakistan are determined to wipe out the menace of terrorism perpetrated by Indian proxies, and such sacrifices of our brave soldiers further strengthen our resolve,” the ISPR said. 

The Pakistan military described TTP militants as “Indian-sponsored,” emphasizing its earlier allegations that New Delhi funds and arms militants in Pakistan. 

India, however, denies using militant proxies in Pakistan. 

Pakistan has struggled to contain a surge in militancy in KP since a fragile truce between the Pakistani Taliban and Islamabad broke down in November 2022. The TTP and other militant groups have frequently targeted security forces convoys and check-posts, besides carrying out targeted killings and kidnappings of law enforcers and government officials in recent months.

Pakistan says the takeover of Kabul by the Afghan Taliban in 2021 has emboldened the TTP as it is able to operate out of and launch attacks from safe havens in neighboring Afghanistan. Kabul denies the allegation.


Pakistan says $2 billion received since creation of special investment council 

Updated 19 May 2025
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Pakistan says $2 billion received since creation of special investment council 

  • Pakistan formed Special Investment Facilitation Council in 2023 to attract foreign investment in priority sectors
  • Minister says SIFC plays crucial role in removing “bureaucratic hurdles” that earlier discouraged investors 

ISLAMABAD: Pakistan’s Federal Minister for Parliamentary Affairs Dr. Tariq Fazal Chaudhry said on Monday that the country has received $2 billion in foreign investment since the Special Investment Facilitation Council (SIFC) was formed in 2023. 

Pakistan’s government formed the SIFC in June 2023 to attract international investment in key economic sectors such as tourism, livestock, trade, infrastructure, mining and minerals. 

The government decided to form the hybrid civil-military forum after Islamabad narrowly avoided a sovereign default in 2023 before it was saved by a last-gasp bailout program by the International Monetary Fund (IMF). 

“Since its inception, more than $2 billion in foreign investment has flowed into Pakistan, and our economic indicators are improving,” Chaudhry informed lawmakers during a question hour at the National Assembly, the lower house of Pakistan’s parliament. 

Responding to a question by lawmaker Shazia Marri, Chaudhry said the SIFC played a crucial role in removing “bureaucratic hurdles” that previously discouraged international investors. 

Answering a supplementary question from lawmaker Arshad Abdullah, the minister acknowledged that Pakistan’s bureaucratic processes had long deterred global investors. 

“In our system, even setting up a petrol pump requires 21 NOCs (no objection certificates), while in Indonesia, only one NOC is needed to establish an industry,” Chaudhry said. 

He stressed that the SIFC’s goal is to eliminate such inefficiencies. 

“We are moving from manual to automated systems to streamline investment processes,” he shared. 

Since its inception in 2023, the SIFC has also been instrumental in ensuring several trade and investment deals were signed between Pakistan and its regional allies Saudi Arabia and the United Arab Emirates were signed.