Pakistan’s deputy PM arrives in Saudi Arabia for OIC meeting on proposed Palestinian displacement

Update Pakistan’s deputy PM arrives in Saudi Arabia for OIC meeting on proposed Palestinian displacement
A woman carrying some personal items walks along a devastated street as she leaves the Nur Shams camp for Palestinian refugees, where Israeli forces allowed residents to retrieve belongings after issuing reported demolition notifications for several houses, in the occupied West Bank on March 5, 2025. (AFP)
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Updated 06 March 2025
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Pakistan’s deputy PM arrives in Saudi Arabia for OIC meeting on proposed Palestinian displacement

Pakistan’s deputy PM arrives in Saudi Arabia for OIC meeting on proposed Palestinian displacement
  • The foreign office calls the proposal of uprooting Palestinians from their ancestral homeland ‘immoral’
  • Ishaq Dar is expected to reaffirm Pakistan’s unwavering support for the Palestinian people, their just cause

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar arrived in Saudi Arabia on Thursday to attend a special Organization of Islamic Cooperation (OIC) meeting focused on the situation in Palestine, state-run media reported. 
Dar, who also holds the diplomatic portfolio, will participate in the OIC foreign ministers’ session, scheduled to be held in Jeddah on Friday.
US President Donald Trump announced a plan to permanently uproot more than 2 million Palestinians from Gaza after assuming office, saying his country would turn the area into an international beach resort.
The plan was widely denounced by majority-Muslim nations and global rights organizations, as the US suggested that the Palestinian population could relocate to neighboring Egypt and Jordan.
“Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar arrived in Medina Al-Munawwarah on Thursday,” the state-run Associated Press of Pakistan (APP) said. 
“He offered prayers at the Masjid-e-Nabawi, seeking the welfare, prosperity, and progress of Pakistan and the Muslim Ummah.”




Pakistan Foreign Minister and Deputy Prime Minister Ishaq Dar (1L) offers prayers at the Prophet’s Mosque in Madinah, Saudi Arabia on March 6, 2025. (Photo courtesy: MOFA)

Pakistan’s foreign office earlier said in a social media post that Dar will discuss the deteriorating situation in Palestine and the ensuing humanitarian crisis, and the “illegal and immoral proposals of displacement of Palestinians from their ancestral homeland” at the OIC meeting. 
“At the conference, the DPM/FM will reaffirm Pakistan’s unwavering support for the Palestinian people and their just cause,” the foreign office said. 
Radio Pakistan reported earlier this week the Pakistani deputy prime minister will advocate for Israel’s full withdrawal from all occupied territories, including Jerusalem, and denounce the proposal for further Palestinian displacement.
Dar will also call for the restoration of the “inalienable rights” of the Palestinian people, including their right to return to their homeland and the establishment of a viable, contiguous and sovereign Palestinian state based on pre-June 1967 borders, with Al-Quds Al-Sharif as its capital.
Earlier this week, Arab leaders adopted an Egyptian reconstruction plan for Gaza worth $53 billion, which seeks to avoid Palestinian displacement, in contrast to Trump’s “Middle East Riviera” vision.
Egyptian President Abdel Fattah El-Sisi said on Tuesday Egypt, in cooperation with Palestinians, had worked on creating an administrative committee of independent, professional Palestinian technocrats to govern Gaza after the Israel-Gaza war ends.
Prime Minister Shehbaz Sharif welcomed the Arab League’s approval of the Egyptian plan, urging the United Nations to ensure the implementation of its resolutions calling for a two-state solution in the Middle East.


Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 

Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 
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Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 

Pakistani experts divided over impact of IMF’s ongoing review on cenbank’s interest rate policy 
  • Pakistani analyst says central bank may maintain policy rate due to IMF’s demand of higher taxes
  • Pakistan’s Monetary Policy Committee (MPC) is set to meet on Mar. 10 to review borrowing rate 

KARACHI: Financial experts on Thursday remained divided over whether the International Monetary Fund’s (IMF) ongoing first review of Pakistan’s $7 billion bailout program will lead to the central bank increasing or decreasing the interest rate next week. 

The central bank’s Monetary Policy Committee (MPC) is set to meet and review the interest rate on Mar. 10. The development takes place as a delegation of the IMF is reviewing Pakistan’s economic performance in Islamabad under its $7 billion Extended Fund Facility program.

The State Bank of Pakistan (SBP) has reduced borrowing rates by a cumulative 1,000 basis points since June 2024 to 12 percent to spur economic growth. Shankar Talreja, director of research at brokerage firm Topline Securities, told Arab News he expected the central bank to maintain the interest rate at 12 percent and not introduce a further cut. 

“We expect the central bank to remain prudent and observe the status quo in upcoming meeting,” Talreja told Arab News. 

Talreja explained that since Pakistan is facing a revenue shortfall and to achieve the desired tax-to-GDP ratio, the IMF can push the government to impose additional tax measures. These in turn can lead to inflation which would cause the SBP to maintain the interest rate at 12 percent rather than slash it further. 

The IMF has expressed concern over Pakistan facing a revenue shortfall of about Rs600 billion in this fiscal year.

The international lender wants cash-strapped Pakistan to increase its revenues by scrapping energy subsidies and imposing taxes on agriculture, real estate and retail sectors.

Talreja said the anticipated tax measures may bring pause to the interest rate easing cycle “for a few months.”

He said certain tax measures were already outlined in the IMF’s detailed report, such as the increase in advance income tax on imports of machinery, withholding tax on supplies and increase in federal excise duty on sugary drinks.

“Any shortfall over and above Rs500 billion will trigger additional tax measures to be taken by the government in its new budget for the financial year 2026,” Talreja explained. 

A majority of market participants said they expected a rate cut ranging from 50 basis points to 150 basis points, a survey conducted by Topline Securities said last week. 

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Pakistan’s top trade body, on Wednesday called for a 500-basis-point (bps) cut in the policy rate. The body said businesses remained dissatisfied with monetary policy and demanded a cut due to easing inflation. 

Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., disagreed with Talreja. He said the IMF can set a lower tax target for Pakistan, which would not trigger further inflation. 

“We believe that the IMF review and the miss in tax collection targets will not impact the SBP’s decision,” Ghani told Arab News.

Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February. 

If the IMF approves the first review of the loan, the country is in line to receive about $1 billion as the second installment of the loan package.


Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack

Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack
Updated 06 March 2025
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Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack

Pakistan army chief slams Afghanistan for ‘harboring’ militants after deadly Bannu attack
  • Five soldiers, 13 civilians killed on Tuesday in attack on military base in Bannu city in northwestern Pakistan
  • Military says attack was orchestrated from neighboring Afghanistan whose Taliban rulers deny allowing militant activity

ISLAMABAD: Pakistan army chief General Syed Asim Munir said on Thursday Afghanistan continued to be a “safe haven” for militants, a day after the military said an attack on a cantonment in the country’s northwest had been planned and orchestrated from the neighboring country, 

Suicide bombers drove two vehicles packed with explosives into a military base in Bannu city in an attack staged by more than a dozen militants on Tuesday. The army said five soldiers and 13 civilians had been killed in the assault, which caused a partial collapse of the military compound’s outer wall and damaged nearby infrastructure, including a mosque and residential building.

Pakistan is battling a surge in attacks by its own chapter of the Taliban movement, known as Tehreek-e-Taliban Pakistan (TTP), on police and military in areas near the Afghan border. Islamabad says the militants operate from neighboring Afghanistan, whose rulers deny the charge.

“Terrorist groups … continued to operate from Afghan soil against Pakistan,” the military said in a statement, quoting Munir after he visited Bannu on Thursday. “The use of foreign weapons and equipment in recent terrorist attacks was clear evidence that Afghanistan remained a safe haven for such elements.”

The army chief added that “no entity would be allowed to disrupt Pakistan’s peace and stability.”

The Afghan government has not responded to Pakistan’s accusations. 

In a statement released on Wednesday, the military said intelligence reports had “unequivocally confirmed the physical involvement of Afghan nationals” in the Bannu attack, adding that evidence proved the attack was orchestrated and directed by insurgents operating from Afghanistan.

“Pakistan expects the Interim Afghan Government to uphold its responsibilities and deny its soil for terrorist activities against Pakistan. Pakistan reserves the right to take necessary measures in response to these threats emanating from across the border,” the military said.

Jaish-e-Fursan Muhammad, a militant faction affiliated with the Pakistani Taliban (TTP), claimed responsibility for the attack in a statement released to media.

Pakistan has repeatedly accused the Taliban authorities in Kabul of facilitating cross-border militant attacks, a charge Afghan authorities deny. 

The TTP was formed in 2007 as an umbrella organization of various hard-line groups operating individually in Pakistan.

The TTP pledges allegiance to, and gets its name from, the Afghan Taliban, but is not directly a part of the group that now rules Afghanistan. Its stated aim is to impose Islamic religious law in Pakistan, as the Taliban have done in Afghanistan.

The TTP is responsible for some of the bloodiest attacks in Pakistan, including on churches and schools and the shooting of Malala Yousafzai, who survived the 2012 attack after she was targeted for her campaign against the Taliban’s efforts to deny women education.

Militants have targeted Bannu several times in the past also. Last November, a suicide car bomb killed 12 troops and wounded several others at a security post. In July, a suicide bomber detonated his explosives-laden vehicle and other militants opened fire near the outer wall of the military facility.


International hockey returns to Pakistan as German junior team arrives in Islamabad 

International hockey returns to Pakistan as German junior team arrives in Islamabad 
Updated 06 March 2025
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International hockey returns to Pakistan as German junior team arrives in Islamabad 

International hockey returns to Pakistan as German junior team arrives in Islamabad 
  • Pakistan marked first international hockey match played in the country for 7 years when it played series against China in 2011 
  • Before that, Pakistan had last staged an international match in 2004 when it hosted the Champions Trophy in Lahore 

ISLAMABAD: The German Junior Hockey Team, world champions, arrived in Pakistan on Thursday for a four-match series, marking the return of international hockey to Pakistan after nearly a decade and a half, the government’s press department said in a statement. 

Pakistan marked the first international hockey match played in the country for seven years when Chinese played four matches here in what was dubbed as the ‘Friendship Series’.

Before that, Pakistan had last staged an international match in 2004 when it hosted the Champions Trophy in Lahore but after that foreign teams refused to play in the country due to security concerns.

Since the September 11 attacks in the United States, foreign teams have been reluctant to travel to Pakistan in many sports and the South Asian country was left completely isolated as a sporting venue after militants attacked the Sri Lankan cricket team in Lahore in March 2009.

“Under the vision of Prime Minister Shehbaz Sharif, this initiative aims to provide Pakistani junior players with international exposure and reestablish Pakistan as a hub for global hockey,” PID said about the four-math series between Pakistan and Germany.

“The series will feature one match in Islamabad and three in Lahore, promising a thrilling competition for fans.”

The two teams will face each other in Lahore on Mar. 6, 8 and 11 while one match will be played in Islamabad on Mar. 13.

“The series holds great significance for both teams as they prepare for the Hockey Junior World Cup being played 2025 in India,” state media reported. 

Field hockey, Pakistan’s national sport, once propelled the country to Olympic gold and global glory, but the game has waned in popularity and participation over the past two decades. Poor management, lack of infrastructure and the rise of cricket has contributed to the decline. The failure to adapt to modern demands, including fitness and artificial turfs, has further deepened the crisis.

According to the latest rankings released by the International Hockey Federation, Pakistan is ranked number 15 in the world in field hockey.


Pakistan says privatization of PIA to be completed in three months 

Pakistan says privatization of PIA to be completed in three months 
Updated 06 March 2025
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Pakistan says privatization of PIA to be completed in three months 

Pakistan says privatization of PIA to be completed in three months 
  • Pakistan is looking to offload 51-100 percent stake in PIA, part of reforms under $7 billion IMF bailout program 
  • Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential

ISLAMABAD: Federal Minister for Privatization Abdul Aleem Khan said on Thursday the privatization process of loss-making national carrier Pakistan International Airlines (PIA) would be completed in three months. 

Cash-strapped Pakistan is looking to offload a 51-100 percent stake in debt-ridden PIA to raise funds and reform state-owned enterprises as envisaged under a $7 billion International Monetary Fund program approved last year. A final bidding process for the airline’s privatization last October attracted just one bid of $36 million for a 60 percent stake in the national flag carrier. The government had pre-qualified six groups in June, but only real-estate development company Blue World City participated in the bidding process, placing a bid that is below the government-set minimum price of 85 billion Pakistani rupees.

Among concerns raised by potential bidders for the PIA stake include policy continuity, honoring contracts, inconsistent government communication, unattractive terms and taxes on the sector, and the flag carrier’s legacy issues and reputation.

Officials say PIA’s cumulative losses alone are close to $3 billion, with the total asset valuation of the airline standing at approximately $572 million.

“Federal Minister further mentioned that to make PIA’s privatization more attractive, a new roadmap is being provided and it is expected that all stages of this privatization process will be completed within the next three months,” Khan’s office said in a statement after he met the Australian High Commissioner to Pakistan and discussed the privatization of PIA. 

Last year, PIA resumed operations in Europe, after a 2020 ban by the European Union Aviation Safety Agency (EASA) over concerns about the ability of Pakistani authorities and its Civil Aviation Authority (PCAA) to ensure compliance with international aviation standards. EASA and UK authorities both suspended permission for PIA to operate in the region after Pakistan began investigating the validity of pilots’ licenses following a deadly plane crash that killed 97 people.

Pakistan hopes new European routes and flying approval to the UK will boost PIA’s selling potential.

“The privatization minister emphasized that there is an expectation of better expressions of interest from investors this time around as the introduction of PIA flights to Europe has made the privatization environment even more lucrative and favorable,” the statement said. “Due to recent measures, the national airline is ready to become profitable again.”

Khan added that PIA flights to the UK would also begin in three months. 


Four Afghanistan-based militants arrested in southwest Pakistan, were planning ‘major attack’ — state media

Four Afghanistan-based militants arrested in southwest Pakistan, were planning ‘major attack’ — state media
Updated 06 March 2025
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Four Afghanistan-based militants arrested in southwest Pakistan, were planning ‘major attack’ — state media

Four Afghanistan-based militants arrested in southwest Pakistan, were planning ‘major attack’ — state media
  • One “terrorist” confessed they entered Pakistan from Afghanistan three days ago, says state-run media 
  • Pakistan accuses Afghanistan of sheltering militants who launch attacks on its soil, which Taliban deny

ISLAMABAD: Pakistani security forces have arrested four “terrorists” in the southwestern Balochistan province who entered from Afghanistan, state-run media reported on Thursday, adding that they were planning to launch a major attack in the country. 

Pakistan has faced a surge in militant attacks in its western provinces bordering Afghanistan, Khyber Pakhtunkhwa (KP) and Balochistan since the Afghan Taliban seized Kabul in 2021. Islamabad accuses the Taliban government in Afghanistan of providing shelter to Pakistani Taliban militants, a charge Kabul denies.

The operation took place near the Pakistan-Afghanistan border in Toba Kakri area of the southwestern Balochistan province, state broadcaster Radio Pakistan said. 
 
“The arrested terrorists confessed to planning a major terrorist attack,” Radio Pakistan reported. “In his confessional statement, one arrested terrorist said they entered Pakistan three days ago from Afghanistan.”

Citing security sources, the state-run media said weapons such as Kalashnikovs, hand grenades and other firearms were recovered from the “terrorists.”

“The security sources said the local population played a significant role in the success of this operation against the terrorists,” Radio Pakistan said. 
The report said that defense experts are of the view that the primary reason for the surge in “terrorism” in Pakistan is the presence of militant organizations that are “flourishing” on Afghan soil. 
“They said Afghanistan has become a haven for terrorists and immediate international action is needed,” the state broadcaster said. 
Ties between Pakistan and Afghanistan deteriorated in 2023 after Islamabad launched a deportation drive against what it said were “undocumented” residents living in its country. The drive mostly affected hundreds of thousands of Afghan refugees in Pakistan, whom Islamabad blamed for a surge in suicide attacks in the country. 
Pakistan has vowed to crack down on all militants operating in the country. Prime Minister Shehbaz Sharif on Wednesday acknowledged the role Pakistani security forces played in arresting senior Daesh commander Mohammad Sharifullah from Afghanistan and handing him over to the US. 
Sharifullah allegedly helped carry out the 2021 suicide bombing outside Kabul airport during the chaotic US military withdrawal from Afghanistan. The blast at the Abbey Gate killed at least 170 Afghans as well as 13 US troops who were securing the airport’s perimeter.
The Pakistani prime minister confirmed Sharifullah was an Afghan national, saying that he was arrested after a successful operation in the Pakistan-Afghanistan border region.