Saudi development agency signs $100 million in loans with Pakistan for hydropower projects in Kashmir

Saudi development agency signs $100 million in loans with Pakistan for hydropower projects in Kashmir
Pakistan Prime Minister Shehbaz Sharif (second left), Saudi Fund for Development (SFD) CEO Sultan Al-Marshad (left), and the delegation are pictured after a meeting at the PM Office in Islamabad, Pakistan on March 22, 2024. (Government of Pakistan)
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Updated 22 March 2024
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Saudi development agency signs $100 million in loans with Pakistan for hydropower projects in Kashmir

Saudi development agency signs $100 million in loans with Pakistan for hydropower projects in Kashmir
  • The projects are expected to prevent deforestation in areas where people still rely on wood for energy
  • The two projects will generate 70 megawatts of electricity that will be transmitted to the national grid

ISLAMABAD: A visiting Saudi Fund for Development (SFD) delegation signed two loan agreements of about $100 million with Pakistan’s economic affairs ministry on Friday to finance two important hydropower projects in Azad Jammu and Kashmir (AJK).

The SFD is a Saudi government agency that provides development assistance and financial aid to developing countries in the form of loans and grants. It aims to support these countries in implementing projects that promote economic stability and growth, improve infrastructure and enhance living standards.

The SFD has also been instrumental in aiding Pakistan’s economy by depositing money in the country’s central bank to help boost its foreign exchange reserves. Additionally, it has funded various development projects in Pakistan, including infrastructure, education and health initiatives to contribute to the country’s socio-economic development.

The Saudi agency has now agreed to bankroll two hydropower projects in Azad Kashmir to support Pakistan’s efforts for energy sustainability and economic growth.

“To enhance development cooperation, #SFD CEO, H.E. Mr. Sultan Al-Marshad, signed today with Pakistan’s Secretary Ministry of Economic Affairs, H.E. Dr. Kazim Niaz, two development loan agreements to finance Shounter Hydropower Project worth $66 Million & Jagran-IV Hydropower Project worth $35 Million,” the SFD announced in a social media post.

Earlier, the delegation met Pakistan’s economic affairs minister Ahad Khan Cheema who witnessed the signing of the agreements.

According to a statement released by his office, the two projects “aim at harnessing the indigenously available hydropower potential and generating 70 MW hydropower which will be transmitted to national grid.”

“Moreover, it will help in eradicating the menace of deforestation by providing electricity as an alternative to the energy needs of the local communities, who hitherto are entirely dependent on forest wood,” it added, “and create economic opportunities for socioeconomic uplift of the people of AJK.”

Cheema also appreciated the role and support of SFD to Pakistan at a challenging time and emphasized further strengthening of ties in the future.

The top SFD official leading the delegation also assured the Saudi agency’s continued support to Pakistan.

Later, the SFD delegation met with Prime Minister Shehbaz Sharif who appreciated the support of the Saudi agency while highlighting the need to expedite the processing of new projects.


Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks

Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks
Updated 09 February 2025
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Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks

Islamabad says IMF mission will visit Pakistan to assess governance, corruption risks
  • The report will recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance
  • The South Asian country, bolstered by a $7 billion IMF facility granted in September, is navigating an economic recovery

A three-member International Monetary Fund (IMF) mission will visit Pakistan to conduct a Governance and Corruption Diagnostic Assessment under the country's 2024 Extended Fund Facility program, the finance ministry said on Sunday, without specifying dates.
The ministry added that the report will recommend actions for addressing corruption vulnerabilities and strengthening integrity and governance, noting that the findings would help shape structural reforms.
"The focus of the mission will be to examine the severity of corruption vulnerabilities across six core state functions. These include fiscal governance, central bank governance and operations, financial sector oversight, market regulation, rule of law, and AML-CFT," the ministry said in the statement.
Pakistan’s government welcomed the IMF’s technical support, saying the assessment would aid efforts to promote transparency and institutional capacity.
The South Asian country, currently bolstered by a $7 billion facility from the International Monetary Fund (IMF) granted in September, is navigating an economic recovery.
The IMF is set to review Pakistan's progress by March, with the government and central bank expressing confidence about meeting its targets.
 


Pakistani security forces kill seven militants in restive northwest

Pakistani security forces kill seven militants in restive northwest
Updated 09 February 2025
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Pakistani security forces kill seven militants in restive northwest

Pakistani security forces kill seven militants in restive northwest
  • The militants were killed in intelligence-based operations in Dera Ismail Khan and North Waziristan districts
  • Islamabad blames a surge in militancy on militant groups operating out of Afghanistan, Kabul denies allegation

ISLAMABAD: Security forces have killed seven militants in separate engagements in the country’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Sunday.

Pakistan has seen a surge in militancy in KP since a fragile truce between the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), and the state broke down in November 2022. The militants have stepped up attacks against police and security forces in recent months, with the military reporting deaths of 383 soldiers and 925 militants in various clashes in the country in 2024.

In the latest incident, three militants were killed and two others injured in an intelligence-based operation in KP’s Dera Ismail Khan district, according to the Inter-Services Public Relations (ISPR), the Pakistani military’s media wing. Four suspected militants were killed in a gunfight in the North Waziristan district, which borders Afghanistan, while three others were injured.

“Sanitization operations are being conducted to eliminate any other Kharji [militant] found in the area,” the ISPR said in a statement.

The development came a day after militants attacked a police check-post in KP’s Bannu district, leaving two policemen dead and two others injured, according to a local police official.

No group immediately claimed for Saturday’s attack, but suspicion was likely to fall on the Pakistani Taliban, who have frequently targeted security forces and police convoys and check-posts, besides targeted killings and kidnappings of law enforcers and government officials in the region.

Islamabad has frequently blamed the surge in militancy on Afghanistan, accusing it of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement and insist that Pakistan’s security issues are an internal matter of Islamabad.


Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia

Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia
Updated 09 February 2025
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Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia

Pakistan condemns Israeli PM’s ‘irresponsible’ statement on establishing Palestinian state in Saudi Arabia
  • Pakistan says Netanyahu’s remarks “deeply offensive,” undermine legitimate rights of Palestinian people
  • Pakistan stands in solidarity with Saudi Arabia, commends its steadfast support for Palestinians, says Deputy PM Dar

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Sunday strongly condemned Israeli PM Benjamin Netanyahu’s statement calling for the establishment of a Palestinian state in Saudi Arabia, describing it as “irresponsible, provocative and thoughtless.”

Saudi Arabia’s Foreign Ministry on Sunday responded sharply to Netanyahu’s remarks, saying that it rejected “such statements that aim to divert attention from the continuous crimes committed by the Israeli occupation against the Palestinian brothers in Gaza.”

“Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar stated that the Israeli remark is irresponsible, provocative and thoughtless, which is not only deeply offensive but also undermines and disregards the legitimate rights of the Palestinian people to self-determination and an independent State on their own historical and legitimate territory,” Pakistan’s foreign ministry said. 

Dar said Pakistan stands in solidarity with Saudi Arabia and commends its steadfast support for Palestinians and their cause. 

“Any attempt to undermine Saudi Arabia’s unwavering position and misrepresentation of its commitment to the Palestinian cause are deeply regrettable,” he was quoted as saying by the foreign ministry. 

The deputy prime minister said Pakistan supports the right of Palestinians to establish an independent and sovereign state based on the pre-1967 borders, with Al Quds Al Sharif as its capital. 

“Any proposal that seeks to displace or relocate the Palestinian people from their ancestral homeland is unacceptable and constitutes a blatant violation of international law, United Nations resolutions and the principles of justice and fairness,” the statement said. 

Dar said Pakistan reiterates its “unflinching support” for the Palestinian cause and will continue to work closely with Saudi Arabia and other members of the international community to advocate for the rights of the Palestinian people. 

He called for a “just, comprehensive and lasting solution to the Palestinian issue.”

“Pakistan urges the international community to denounce this provocative remark and hold Israel accountable for its continued attempts to undermine the peace process,” the statement said. 

Netanyahu’s remarks come amid an uneasy six-week truce reached between Hamas and Israel last month which ended 15 months of war.

The truce included the gradual withdrawal of Israeli forces from central Gaza and the return of displaced Palestinians to northern Gaza.

Netanyahu’s comments follow US President Donald Trump’s suggestion earlier this month that Palestinians residing in Gaza should be resettled in Egypt, Jordan or other countries.

The proposal was rejected by both Egypt and Jordan and countries including Pakistan, prompting condemnation from various international rights groups as well.


Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
Updated 09 February 2025
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Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
  • Aman Dialogue brings together chiefs of navies, coast guards and defense forces from Feb. 9-10
  • Conference to focus on piracy, narco-trafficking and resource exploitation maritime challenges

ISLAMABAD: Pakistan held the inaugural session of the Aman Dialogue 2025 in Karachi on Sunday to foster international maritime cooperation among several countries around the world, stressing the importance of “unhindered activity” in seas to promote economic cooperation. 

The Aman Dialogue is being held from Feb. 9-10 and brings together chiefs of navies, coast guards and defense forces. It aims to provide them an opportunity to exchange views on global and regional security and adopt innovative solutions. 

This year’s conference is themed: “Secure Seas, Prosperous Future,” and focuses on security challenges in the Indian Ocean. These include strategic competition, piracy, narco-trafficking, non-state actors, resource exploitation, climate change, emerging technologies such as AI and unmanned systems, the blue economy and the need for global collaboration to ensure stability and prosperity.

“The global economic system is almost wholly dependent upon unhindered activity in the maritime domain,” Defense Minister Khawaja Asif said at an event held to mark the opening of the dialogue. 

“The uninterrupted use of seas and oceans remain the strategic interests of all nations,” he added. 

Asif called on countries to synergize their efforts to extract greater economic gains, saying that the maritime domain is at a “critical crossroads.”

“Our oceans carrying over 80 percent of global trade represent not only shipping lanes but the arteries of global prosperity,” the minister said, adding that the Indian Ocean alone holds over 50 percent of global oil and gas reserves. 

The dialogue coincides with the AMAN-25 multinational naval exercise, which kicked off on Friday in Karachi. Pakistan Navy’s fleet commander lauded the participation of 60 nations on Friday, hailing it as a testament to the world community’s desire for peace.

The Pakistan Navy has conducted the AMAN maritime exercise every two years since 2007 under the theme “Together For Peace,” involving ships, aircraft and special operations forces.


Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 

Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 
Updated 09 February 2025
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Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 

Pakistan PM to attend World Governments Summit in UAE from Feb. 10-11 
  • Shehbaz Sharif to deliver keynote address, highlight Pakistan’s vision for economic growth and governance reforms at summit
  • Pakistani premier to meet world leaders, UAE leadership and CEOs of major multinational companies at summit, says foreign office 

Islamabad: Pakistan’s Prime Minister Shehbaz Sharif will visit the United Arab Emirates (UAE) from Feb. 10-11 to take part in the World Governments Summit (WGS), the foreign office said on Sunday, adding that the premier will engage in discussions with world leaders about the future of governance and international cooperation. 

According to the WGS’ official website, over 400 ministers and thousands of industry leaders, experts, and policymakers will head to Dubai for the summit which will be held from Feb. 11-13. As per the WGS, the event will also welcome more than 80 international, regional and intergovernmental organizations to join in the discussion on the future of governance, global challenges and their innovative solutions. 

This will be Sharif’s second visit to the UAE since assuming office in March last year, the foreign office said. He will be accompanied by a high-level delegation including Deputy Prime Minister and Foreign Minister Ishaq Dar and other key members of the federal cabinet. 

“During his visit, the Prime Minister will deliver a keynote address at the WGS, highlighting Pakistan’s vision for inclusive economic growth, digital transformation and governance reforms,” the foreign office said. 

“He will also hold bilateral meetings with the UAE leadership as well as engage with Heads of State/Government from participating countries and leading CEOs of major multinational companies.”

The statement said Sharif’s visit underscores Pakistan’s unwavering commitment to further strengthening its ties with the UAE, fostering greater economic collaboration and exploring new avenues of partnership for mutual prosperity.

The UAE is Pakistan’s third-largest trading partner after China and the United States, and a major source of foreign investment valued at over $10 billion in the last 20 years, according to the UAE’s foreign ministry.

Policymakers in Pakistan consider the UAE an optimal export destination due to its geographical proximity, which minimizes transportation and freight costs while facilitating commercial transactions.

It is also home to more than a million Pakistani expatriates, making it the second-largest Pakistani expatriate community worldwide, as per the foreign office, and a major source of foreign workers’ remittances for Pakistan. 

Pakistan and UAE have stepped up efforts in recent years to strengthen their business and investment relations. In January 2024, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos for the World Economic Forum’s summit.