ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa province has signed an agreement with a private firm to establish a power transmission line in the province, an official said on Saturday.
The power transmission line will be established in one and a half year with a cost of Rs8 billion ($28.8 million), according to Muhammad Ali Saif, KP chief minister’s adviser on information.
In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat to supply power to local industries and national grid.
“Industries will be provided very cheap electricity through the transmission line,” Saif said in a statement. “The completion of its first phase generate Rs7 billion for the province.”
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses.
In January 2023, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months.
In November last year, the Asian Development Bank (ADB) approved $250 million loan for Pakistan to help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Khyber Pakhtunkhwa and Punjab provinces.
Pakistan’s Khyber Pakhtunkhwa to establish power transmission line costing $28 million
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Pakistan’s Khyber Pakhtunkhwa to establish power transmission line costing $28 million
- Official says this will be the first time ever that a province will lay a transmission line on its own
- In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat
Pakistan sees tax-to-GDP ratio hitting 10.6% by June as reform efforts continue
- The country’s tax-to-GDP ratio was among the lowest in the region and stood at 8.8% in FY2023-24
- Pakistan’s finance chief projects foreign exchange reserves to reach $14 billion by the end of June
KARACHI: Pakistan’s finance chief said on Friday the country’s tax-to-GDP ratio was expected to reach 10.6% by the end of the current fiscal year, according to an official statement, as the government works to build on economic progress made under recent International Monetary Fund (IMF) loan programs.
Pakistan’s tax-to-GDP ratio, one of the lowest in the region, stood at around 8.8% in fiscal year 2023-24. Finance Minister Muhammad Aurangzeb has repeatedly warned that such low levels of revenue mobilization are unsustainable and pose long-term risks to fiscal stability.
Aurangzeb shared the projection while briefing representatives of Standard & Poor’s Global Ratings as part of Pakistan’s ongoing sovereign ratings review.
“The Finance Minister presented a detailed overview of the government’s macroeconomic reform agenda and reaffirmed Pakistan’s commitment to achieving sustainable and inclusive economic growth by enhancing productivity and promoting exports,” the finance ministry said in a statement after the meeting.
He said Pakistan’s external portfolio was well-managed, with foreign exchange reserves projected to reach $14 billion by the end of June.
“He further stated that the tax-to-GDP ratio was expected to reach 10.6 percent by the end of June, which would mark progress toward the government’s target of raising it to 13 percent by the conclusion of the 37-month Extended Fund Facility (EFF) with the International Monetary Fund (IMF),” the statement said.
Pakistan has taken several steps to improve revenue collection, including the automation of processes at the Federal Board of Revenue (FBR), the operationalization of the National Tax Council and the imposition of agricultural income tax.
It has also separated the Tax Policy Office from the FBR to better align tax policymaking with broader economic goals.
Aurangzeb also highlighted recent surpluses in both the primary balance and the current account, along with falling inflation and current account deficit figures, which he said were contributing to improved economic fundamentals.
During last month’s IMF-World Bank Spring Meetings in Washington, the Pakistani finance chief held over 70 engagements with rating agencies, development finance institutions, investors and think tanks.
The government also maintains the international community broadly supports Pakistan’s reform agenda, as it tries to maintain its overall economic momentum.
India asks IMF to review loans to Pakistan, Indian government source says
- The adviser to Pakistan’s finance minister says the IMF program is ‘well on track’
- The soaring tensions between the two states has drawn calls for cooling tempers
NEW DELHI/KARACHI: India has asked the International Monetary Fund to review loans disbursed to Pakistan, an Indian government source told Reuters on Friday, as tensions between the South Asian neighbors escalated following a deadly attack in Kashmir.
India and Pakistan have announced a raft of measures after an attack on Hindu tourists in Indian-administered Kashmir last week killed 26 men and there is a fear that the latest crisis between the nuclear-armed rivals could spiral into a military conflict.
New Delhi has identified the three attackers, including two it says are Pakistani nationals, as “terrorists.” Islamabad has denied any role and called for a neutral investigation.
India suspended a critical river water sharing treaty and the two countries have closed their airspace to each other’s airlines.
Pakistan secured a $7 billion bailout program from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
The program is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.
India raised concerns with the IMF on its loans to Pakistan, asking for a review, a government source told Reuters without elaborating.
The IMF and India’s finance ministry did not immediately respond to a request for comment.
The adviser to Pakistan’s finance minister said the IMF program is “well on track.”
“The latest review has been done well and we are completely on track,” adviser Khurram Schehzad told Reuters, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
“We did about 70 meetings ... interest has been very high for investing and supporting Pakistan as the economy turns around,” Schehzad said.
The soaring tensions between the two countries has drawn global attention and calls for cooling tempers.
Muslim-majority Kashmir is claimed in full by both Hindu-majority India and Islamic Pakistan, but each rules it in parts.
While New Delhi accuses Pakistan of backing an uprising in Indian Kashmir since 1989, Pakistan says it only offers diplomatic and moral support to a Kashmiri demand for self-determination.
Pakistani generals link Kashmir attack to India’s ‘governance failures,’ vow to defend sovereignty
- Army says India uses such incidents for political gains like suspending Indus Waters Treaty
- The generals says the Pahalgam attack was to help ‘Indian terror proxies’ targeting Pakistan
KARACHI: Pakistan’s top generals on Friday blamed last month’s tourist shootings in Indian-administered Kashmir on New Delhi’s “governance failures” and its strategy of using such incidents for political gain, while warning Pakistani security forces were ready to respond to any attack on the country’s sovereignty, according to an official statement.
India blamed Pakistan for the April 22 attack in the scenic town of Pahalgam, in Kashmir’s Anantnag district, where gunmen killed 26 people in one of the deadliest assaults on civilians in nearly two decades.
Pakistan denied involvement, though tensions escalated as India expelled Pakistani diplomats and nationals, closed a key border crossing and suspended the decades-old Indus Waters Treaty (IWT), which has governed the distribution of river waters between the two countries since 1960.
Pakistan’s top general gathered at the General Headquarters (GHQ) in Rawalpindi earlier today to review the geo-strategic environment, with particular focus on the Pakistan-India standoff and the broader regional security situation, the military’s media wing, Inter-Services Public Relations (ISPR), said.
“The Forum noted, with serious concern, India’s consistent pattern of exploitation of crises to achieve political and military objectives,” the ISPR said. “They have been following a predictable template — whereby internal governance failures are externalized.”
“These incidents have often coincided with unilateral moves by India to alter the status quo, as seen in 2019 when India similarly exploited the Pulwama incident to unilaterally alter the status quo of Indian Illegally Occupied Jammu & Kashmir, through revocation of Article 370,” it added.
The 2019 Pulwama attack killed 40 Indian paramilitary personnel and was also blamed on Pakistan before New Delhi revoked the region’s special constitutional status to integrate it in the Indian union, a move repeatedly condemned by Islamabad.
The generals expressed concern that India was now using the Pahalgam shootings to undermine the IWT and “usurp Pakistan’s legitimate and inalienable water rights.”
The statement called the move a dangerous attempt to “weaponize water,” threatening the livelihoods of more than 240 million Pakistanis and increasing strategic instability in South Asia.
The commanders also voiced alarm over what they described as credible evidence of Indian military and intelligence involvement in orchestrating militant violence inside Pakistan.
They accused New Delhi of using the Kashmir attack to divert attention from its own domestic challenges and to provide “operational breathing space” to what they called “Indian terror proxies” targeting Pakistan.
While reaffirming Pakistan’s commitment to regional peace and stability, the generals warned that any attempt to impose conflict would be met with a “sure and decisive” response.
Chief of Army Staff General Asim Munir praised the operational readiness and morale of Pakistan’s armed forces and emphasized the need for vigilance and proactive readiness across all fronts.
“Deliberate destabilization efforts by the Indian government will be confronted and defeated with resolve and clarity,” the ISPR said.
US vice president hopes Kashmir attack won’t spark wider conflict
- JD Vance says Pakistan should deal with militants that ‘sometimes operate’ in its territory
- US has expressed support for India after the April 22 attack without directly blaming Pakistan
WASHINGTON: US Vice President JD Vance said on Thursday Washington hoped Pakistan would cooperate with India to hunt down Pakistan-based militants, and that India’s response to the recent Islamist militant attack in India-administered Kashmir does not lead to a broader regional conflict.
“Our hope here is that India responds to this terrorist attack in a way that doesn’t lead to a broader regional conflict,” Vance said in an interview on Fox News’ “Special Report with Bret Baier” show.
“And we hope, frankly, that Pakistan, to the extent that they’re responsible, cooperates with India to make sure that the terrorists sometimes operating in their territory are hunted down and dealt with,” Vance added.
Vance’s comments are the closest the US government has come since the April 22 attack — in which 26 people were killed — to potentially linking Pakistan to extremism in India.
Top US leaders, including President Donald Trump, have condemned the attack, calling it “terror” and “unconscionable,” while expressing support for India without directly blaming Pakistan.
India is an important US partner as Washington aims to counter China’s rising influence. Pakistan remains Washington’s ally even as its importance diminished after the 2021 US withdrawal from neighboring Afghanistan.
In recent days, Washington urged India and Pakistan to work with each other to de-escalate tensions and arrive at a “responsible solution.”
India has blamed Pakistan for the attack. Islamabad denies responsibility and is calling for a neutral probe.
The US State Department has said it was in touch with the nuclear-armed Asian neighbors at multiple levels and Secretary of State Marco Rubio held calls on Wednesday with Indian Foreign Minister Subrahmanyam Jaishankar and Pakistani Prime Minister Shehbaz Sharif.
Hindu nationalist Indian Prime Minister Narendra Modi vowed to punish those responsible and Jaishankar has told Rubio that the perpetrators should be brought to justice. Pakistan says military action by India was imminent.
Muslim-majority Kashmir is claimed in full by both Hindu-majority India and Islamic Pakistan, with each controlling only part of it and having fought wars over it.
After the attack, India suspended a treaty regulating water-sharing, and both countries closed airspace to each other’s airlines. They also exchanged fire across their border.
Pakistan seeks Saudi, UAE and Kuwaiti mediation to de-escalate tensions with India
- PM Sharif says it’s inconceivable Pakistan will jeopardize its achievements by backing militant attacks
- He maintains that his country will never take any action that could ‘imperil regional peace and security’
ISLAMABAD: Prime Minister Shehbaz Sharif on Friday sought the assistance of Saudi Arabia, the United Arab Emirates (UAE) and Kuwait in de-escalating tensions with India over an attack that killed 26 tourists in the disputed Kashmir region, his office said.
New Delhi has accused Pakistan of backing one of the deadliest attacks in Indian-administered Kashmir in decades, though Islamabad has denied the allegation and suggested a neutral and credible international probe. The two nuclear-armed neighbors have also exchanged gunfire, traded diplomatic barbs, expelled each other’s citizens and closed their border as part of a series of punitive and reciprocal measures.
Sharif met with Saudi Ambassador to Pakistan Nawaf bin Said Al-Malki, UAE Ambassador Hamad Obaid Ibrahim Salem Al-Zaabi and Kuwaiti Ambassador Nasser Abdulrahman Jasser during the day amid growing concerns of a wider regional conflict following potential Indian actions in response to the Pahalgam attack.
Sharif shared Pakistan’s perspective on recent developments in South Asia following the Kashmir incident, highlighting that his country has made significant sacrifices in its counter-terrorism efforts over the years, not only to safeguard itself but also to contribute to global security. He also rejected the “baseless Indian accusations” linking Islamabad to the April 22 attack.
“The prime minister said it was inconceivable for Pakistan to act in an irresponsible manner to jeopardize its achievements and derail the country from the path of economic progress,” the PM Office said in a statement. “He urged brotherly countries, including Saudi Arabia, to impress upon India to de-escalate and defuse tensions. He reaffirmed Pakistan’s desire for peace and stability in South Asia.”
During his conversation with the Middle Eastern envoys, the Pakistan premier reiterated his call for a transparent and neutral international investigation into the April 22 incident.
He highlighted how Pakistan has been the biggest victim of militant violence and suffered 90,000 casualties with over $152 billion in economic losses.
Sharif said Pakistan would never take any action that could “imperil regional peace and security,” highlighting that his government was focused on consolidating the hard-earned economic gains of the past fifteen months that were achieved with the support of friendly countries like Saudi Arabia and the UAE.
The Saudi, UAE and Kuwaiti ambassadors thanked Sharif for sharing Pakistan’s stance and reaffirmed their support for maintaining regional peace and security, the PM Office added.
Since last week, top Pakistani leaders have also reached out to senior officials in China, Iran, Egypt and other countries regarding the recent South Asian developments.
The disputed Himalayan region of Kashmir is split between India and Pakistan and claimed by both in its entirety. The two countries have fought two wars and one limited conflict over the territory.
The United Nations has urged the two arch-rivals to talk to each other, while China, which shares a border with both India and Pakistan, and other countries have called on both sides to “exercise restraint.”
