Russia to collaborate with Pakistan on modernization of steel mill — state media

Russia to collaborate with Pakistan on modernization of steel mill — state media
Labourers work on molten steel rods at a mill in Islamabad on April 30, 2024. (AFP/File)
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Updated 12 February 2025

Russia to collaborate with Pakistan on modernization of steel mill — state media

Russia to collaborate with Pakistan on modernization of steel mill — state media
  • A team of technical experts from Russia was in Pakistan last month to evaluate Pakistan Steel Mills
  • PSM among dozens of loss-making public entities Pakistan wants to sell as part of IMF reforms program 

ISLAMABAD: Russian Ambassador to Pakistan Albert P. Khorev has announced cooperation with Islamabad this year in the energy and industrial sectors, including the modernization of a state-owned steel mill, Pakistani state media reported on Wednesday.

A team of technical experts from Russia was in Pakistan last month to assess Pakistan Steel Mills (PSM), one of several firms Pakistan wants to sell to revive loss-making entities as it strives to deliver reforms under a $7 billion International Monetary Fund bailout.

Islamabad has for years been pumping billions of dollars into cash-bleeding state enterprises to keep them afloat, including one of the largest loss-making enterprises, Pakistan International Airline, and PSM, once the producer of almost half the country’s steel needs but which has been in decline since 2008 due to corruption, mismanagement, and a lack of investment. 

As of August 2024, the accumulated losses of the mills stood at over $800 million. PSM has not produced steel at its 19,000-acre facility since June 2015.

“Ambassador Khorev has said that Russia and Pakistan will focus on cooperation in energy and industry including the modernization of the Steel Mills, agriculture and transport in 2025,” state news agency, the Associated Press of Pakistan (APP), said. 

Pakistan and Russia, once Cold War rivals, have strengthened their relationship in recent years through increased dialogue and trade, including in 2023 when Pakistan began purchasing discounted Russian crude oil that had been banned from European markets due to Russia’s war on Ukraine. Islamabad also received its first shipment of liquified petroleum gas from Russia that year. 

It is targeting 100,000 bpd of imports from Russia, compared with the total 154,000 bpd of crude it imported in 2022, in the hopes that will lower its import bill, address a foreign exchange crisis and keep a lid on inflation.

However, the benefits are being offset by increased shipping costs and lower quality refined products compared with the fuels produced with crude from Pakistan’s main suppliers, and the United Arab Emirates.

Energy imports make up the majority of the South Asian country’s external payments.

“Russia stands ready to intensify cooperation with Pakistan on the use of international transport corridors,” APP quoted the Russian ambassador as saying. 

These include the Pakistan Stream gas project, also known as the North-South gas pipeline, which is to be built in collaboration with Russian companies. The 1,100 km (683 mile)-long pipeline will deliver imported LNG from Karachi on the Arabian Sea coast to power plants in the northeastern province of Punjab. Another corridor is the Trans-Afghan Multimodal Transport Corridor, which will run from northeastern Kazakhstan via Uzbekistan, Afghanistan, and Pakistan, and onward by sea to the port of Jebel Ali in the United Arab Emirates.

The statement also quoted Khorev as saying Russia was considering being involved in the modernization of the Quetta-Taftan railway line, one of the main railway lines in Pakistan. and increasing maritime cargo transportation.


Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles

Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles
Updated 28 sec ago

Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles

Pakistan to cut auto tariffs over 5 years, eyes car exports after tractors and motorcycles
  • Commerce minister forms committee with key ministries to address auto industry challenges
  • US tariff reduction deal seen as creating new opportunities for Pakistani auto exports

ISLAMABAD: Pakistan will gradually cut tariffs on the auto sector over the next five years and work on a strategy to expand exports, Commerce Minister Jam Kamal Khan told industry representatives on Wednesday, as the government seeks to strengthen the local market and boost overseas sales.

Khan met auto industry stakeholders in Islamabad and announced the formation of a committee, comprising officials from the Commerce Ministry, the Federal Board of Revenue and the Ministry of Industries, to address sector challenges. The minister invited the industry to participate in the upcoming industrial policy and said healthy competition was increasing in Pakistan’s auto market.

“After tractors and motorcycles, we will now also export cars,” Khan said, adding that the government would prepare “a strategy for the development and exports of the auto sector” and that tariffs “will be gradually reduced over the next five years.”

Khan said imported used cars should meet quality and environment-friendly standards and linked new export prospects to a recently signed US tariff reduction agreement. Under the deal, Washington has cut import duties on Pakistani goods to 19 percent, a move the government says will improve competitiveness for products including automobiles. 

“The tariff reduction agreement with the US has created new opportunities for auto exports,” the minister said.

Industry representatives told the meeting that new technologies had increased production costs, and urged protection for local manufacturers from the import of used vehicles.

Pakistan’s automobile industry is one of the fastest-growing sectors, contributing around 7 percent of Large Scale Manufacturing (LSM) and accounting for 7–16 percent of the manufacturing GDP depending on the metric used. It employs millions, and local assembly is dominated by established players like Honda, Toyota, Suzuki, Hyundai, Kia, and newcomers such as MG and Haval.

The market includes motorcycles, tractors, cars, and commercial vehicles, but remains highly concentrated among a few brands.

The fiscal year 2025–26 budget introduced several changes impacting the auto industry. A new Green Tax was applied to internal combustion engine vehicles, ranging from 1 percent to 3 percent of vehicle value depending on engine size and origin .

The industry also flagged an imbalance in GST rates — 8.5 percent on hybrid electric vehicles versus 18 percent on fully electric vehicles — raising concerns over a policy disconnect with the Automotive Industry Development and Export Policy (AIDEP) 2021–2026 provisions.

Experts warn that high taxes, policy uncertainty, and weak industrial support were curbing demand. Recent vehicle sales dropped 49 percent month-on‑month in July 2025, partly due to pre-budget rushes and subsequent tax adjustments  .

The sector also faces structural challenges including limited localization of parts, high production costs, and fragile capacity utilization (around 24 percent). Policy instability, particularly regarding tariff reductions and fiscal incentives, risks discouraging investment, and experts say long-term industrial support is necessary to prevent local manufacturing decline.

Inflation, currency volatility, and macroeconomic uncertainty further weigh on consumer demand and financing.


Pakistan unveils national AI policy to boost innovation, jobs and ethical governance

Pakistan unveils national AI policy to boost innovation, jobs and ethical governance
Updated 17 min 56 sec ago

Pakistan unveils national AI policy to boost innovation, jobs and ethical governance

Pakistan unveils national AI policy to boost innovation, jobs and ethical governance
  • Policy sets up National AI Fund, aims to train one million people in AI skills by 2027
  • Framework to align with UN goals and ensure ethical and responsible AI use

KARACHI: Pakistan has announced its first National Artificial Intelligence Policy, a wide-ranging plan seen by Arab News to develop AI infrastructure, train one million people in related skills and ensure responsible, ethical use of the technology in line with global standards.

The Ministry of IT & Telecom shared a copy of the new policy with media on Wednesday and said the policy is designed to transform the country into a “knowledge-based economy” through investment in research, innovation, and skills, while safeguarding personal data and human rights.

The “National Artificial Intelligence Policy – 2025” lays out a six-pillar framework covering AI innovation, public awareness, secure systems, sectoral transformation, infrastructure and international partnerships. It creates a National AI Fund by permanently allocating 30 percent of the R&D Fund managed by Ignite, a government-run technology financing body that supports research, startups and innovation in Pakistan’s ICT sector.

The policy also establishes Centers of Excellence in AI in major cities and sets targets for 90 percent public awareness of AI by 2026.

The plan aligns with the “AI for Good” initiative of the International Telecommunication Union and the UN Sustainable Development Goals.

“The Artificial Intelligence (AI) Policy 2025 is a pivotal milestone for transforming Pakistan into a knowledge-based economy,” the foreword to the policy document says, adding that it will “establish an ecosystem necessary for AI adoption … by ensuring responsible and ethical use of AI.”

Under the plan, the Centers of Excellence will “facilitate demand-driven research and development in AI and allied technologies that align with national priorities,” provide access to advanced computing labs and run incubation and training programs.

On security, the government will develop AI-integrated security guidelines for end-to-end protection during the development and deployment of AI systems and mandate “transparency and disclosure of the use of AI systems” in the public sector.

Internationally, Pakistan will seek bilateral and multilateral agreements with AI-leading nations, participate in global AI forums, and “align Pakistan’s AI regulations and standards with international best practices to ensure interoperability, data privacy, and security.”

The Ministry of IT & Telecom said the policy’s implementation would be overseen by an AI Council chaired by the federal IT minister, with representation from academia, industry, provincial governments and civil society.

Pakistan is trying to make strides in modernizing its digital infrastructure and fostering an innovation-driven economy.

Under the “Uraan Pakistan” five-year National Economic Transformation Plan (2024–29), the government is prioritizing digital transformation by expanding ICT exports, supporting freelancing, and establishing a “Quantum Valley” focused on high-tech innovation.

This broader strategy is reinforced by efforts to digitize governance and public services: projects such as AI‑powered surveillance systems in Islamabad’s “Safe City” program, the rollout of a Power Equipment Manufacturing Dashboard, and the launch of Zong’s locally hosted AI-powered cloud platform exemplify the push to modernize both security and enterprise infrastructure.

Complementing these, the State Bank of Pakistan is piloting a central bank digital currency (digital rupee), with legislation nearly finalized to license and regulate virtual assets, aiming to integrate digital payments into the mainstream financial ecosystem.

On the cryptocurrency front, Pakistan is trying to evolve from regulatory ambiguity to institutional innovation. In March 2025, the government established the Pakistan Crypto Council (PCC) to shape blockchain policy and digital asset regulation, with key figures like Bilal Bin Saqib as CEO and strategic adviser Changpeng Zhao, Binance co‑founder, contributing technical and governance expertise.

In May, Pakistan unveiled a Strategic Bitcoin Reserve, committing to hold bitcoin in a sovereign wallet without plans to sell, while also earmarking 2,000 MW of surplus electricity for bitcoin mining and AI data centers — part of a broader push to convert energy surplus into digital economy infrastructure.

The Virtual Assets Act, 2025, enacted in July, created the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee crypto businesses under FATF-aligned standards .

Meanwhile, adoption is accelerating. Crypto users are projected to surpass 27 million by year-end, with digital asset revenues approaching $1.6 billion.

Reports also suggest that Pakistan is fast-tracking crypto integration into formal sectors like banking, foreign exchange, and even gold trading, signaling a strategic leap toward mainstream crypto incorporation.


US report says India acts minimally, Pakistan rarely acts against rights abuses

US report says India acts minimally, Pakistan rarely acts against rights abuses
Updated 13 August 2025

US report says India acts minimally, Pakistan rarely acts against rights abuses

US report says India acts minimally, Pakistan rarely acts against rights abuses
  • Trump administration scaled back annual US government report on human rights worldwide, dramatically softening criticism of allies
  • Indian and Pakistani embassies in DC had no immediate comment on report released on Tuesday, which documented instances in 2024

WASHINGTON: The US government noted abuses in India and Pakistan in a shortened human rights report released on Tuesday that said India “took minimal credible steps” to combat the abuses while Pakistan “rarely took credible steps.”

The Trump administration scaled back the annual US government report on human rights worldwide, dramatically softening criticism of some allies and countries that have been President Donald Trump’s partners.

The State Department human rights documentation for India and Pakistan was also much shorter and scaled back this year.
India has been an important US partner in recent years in Washington’s effort to counter China’s rise, although relations have been tense over Trump’s imposition of a 50 percent tariff on goods from India. Pakistan is a non-NATO US ally.

About India, the report said: “The government took minimal credible steps or action to identify and punish officials who committed human rights abuses.”

On Pakistan, it added: “The government rarely took credible steps to identify and punish officials who committed human rights abuses.”

Indian and Pakistani embassies in Washington had no immediate comment on the report released on Tuesday, which documented instances in 2024.

Amnesty International and Human Rights Watch fault Indian Prime Minister Narendra Modi’s government for its treatment of minorities.

They point to rising hate speeches, a religion-based citizenship law the UN calls “fundamentally discriminatory,” anti-conversion legislation that challenges freedom of belief, the 2019 removal of Muslim-majority Kashmir’s special status, and the demolition of properties owned by Muslims.

Modi denies discrimination and says his policies, such as food subsidy programs and electrification drives, benefit everyone.
In Pakistan, Amnesty International says government authorities fail to protect minorities, including Christians, and use “excessive and unnecessary force” against civil society voices and protesters.

In particular, rights groups, the UN, and Western governments raised concerns over the 2024 Pakistani elections. A UN working group said last year that former Prime Minister Imran Khan’s detention violated international law. Khan remains in jail.

Islamabad says its elections were fair and dismisses allegations of rigging and foul play.

Washington and New Delhi have not reached a trade deal, while the United States has reached an agreement in recent weeks with Pakistan.

Trump angered India by taking credit for an India-Pakistan ceasefire in May after hostilities between the neighbors following an April attack in India-administered Kashmir. India says New Delhi and Islamabad should resolve their ties directly without outside involvement.


Pakistan skittled for 92 as West Indies wins third ODI by 202 runs for historic 2-1 series win

Pakistan skittled for 92 as West Indies wins third ODI by 202 runs for historic 2-1 series win
Updated 13 August 2025

Pakistan skittled for 92 as West Indies wins third ODI by 202 runs for historic 2-1 series win

Pakistan skittled for 92 as West Indies wins third ODI by 202 runs for historic 2-1 series win
  • It was the first bilateral ODI series won by West Indies against Pakistan since 1991
  • Game ended run of home series defeats across test and T20 formats to Australia and Pakistan

TAROUBA, Trinidad and Tobago: Shai Hope helped deliver some long overdue good news for the West Indies with a century to inspire the Caribbean cricketers to a series-clinching, 202-run win Tuesday over Pakistan.

It was the first bilateral ODI series won by West Indies against Pakistan since 1991 and ended a run of home series defeats across the test and Twenty20 formats to Australia and Pakistan.

Hope stroked an unbeaten 120 before pace bowler Jayden Seales destroyed Pakistan’s chase with six wickets in the third and final one-day cricket international.

The West Indies captain said he was extremely proud of his team.

Hope added there’d been a lot of stress on negatives in the game but now there was “positives to shout about” for West Indies cricket.

The big win came in the wake of a two-day emergency summit for Caribbean cricket. Hope attended part of the summit, along with greats including Brian Lara and Clive Lloyd, to help create strategies to lift West Indies back toward the top of the international game.

The summit was called after a West Indian lineup scored just 27 runs in its second innings – one run short of the all-time test record for low totals — while losing the third of three tests to Australia.

After losing eight straight matches to Australia and then losing a Twenty20 series 2-1 to Pakistan in Florida, West Indies lost the ODI series-opener to Pakistan last week by five wickets.

West Indies leveled the series with a five-wicket victory in the second ODI to stoke hope of a revival and dominated the third.
Pakistan was dismissed for 92 in 29.2 overs Tuesday after West Indies posted 294-6 at Brian Lara Stadium in Tarouba, Trinidad and Tobago.

Hope hit five sixes and 10 fours in his 94-ball knock, sharing an unbroken seventh-wicket stand with Justin Greaves of 110 runs in around eight overs.

Greaves was 43 not out in only 24 deliveries, including two sixes and four fours.

Pakistan collapsed early in its chase to 23-4 in the ninth over, with three ducks from its top four batters. Opener Saim Ayub was caught behind on the third ball of the innings, Abdullah Shafique also failed to score, and Pakistan was 8-3 when captain Mohammad Rizwan was bowled by Seales for a golden duck in the third over.

Seales took his fourth wicket by trapping Babar Azam (9) lbw. Seales finished with figures of 6-18 from 7.2 overs.

Hasan Nawaz (13) advanced and was stumped against the bowling of Gudakesh Motie and Roston Chase bowled Hussain Talat (1), leaving Pakistan on 62-6 in the 21st over. Salman Agha top-scored for Pakistan with a 49-ball 30.

The match and series ended with another golden duck when Abrar Ahmed was run out by Chase.


Pakistan issues high alert as seventh spell of monsoon rains set to intensify

Pakistan issues high alert as seventh spell of monsoon rains set to intensify
Updated 13 August 2025

Pakistan issues high alert as seventh spell of monsoon rains set to intensify

Pakistan issues high alert as seventh spell of monsoon rains set to intensify
  • PDMA warns of “widespread rain-wind/thundershower” with possible urban and flash flooding from Aug. 13–21
  • Monsoon incidents in Punjab have killed 164 people and injured 582 since mid-June, over 300 people have died nationwide

ISLAMABAD: Authorities in Pakistan’s Punjab province on Wednesday issued a high alert for heavy rains and possible flooding, warning that the seventh spell of the summer monsoons is forecast to be stronger than earlier phases and will persist through much of next week.

Pakistan’s government has reported over 300 deaths and 1,600 damaged houses due to the floods, heavy rain and other weather since June 26.

On Wednesday, the Provincial Disaster Management Authority (PDMA) said “widespread rain-wind/thundershower (with scattered heavy falls at times very heavy) is expected” in upper Punjab from Aug. 13 to 17, with showers spreading to most plains districts from Aug. 18 to 21.

Areas at risk include Murree, Galiyat, Attock, Chakwal, Jhelum, Mandi Bahauddin, Gujrat, Gujranwala, Hafizabad, Lahore, Sheikhupura, Sialkot, Narowal, Kasur, Faisalabad, and Sahiwal, among others.

“More rain-wind/thundershower is predicted in the country in coming days; monsoon activity is likely to intensify during the upcoming week,” the PDMA advisory said, citing the Pakistan Meteorological Department.

Moist currents from the Bay of Bengal are forecast to strengthen from Aug. 17, with a westerly wave influencing upper parts of the country.

People wade through the flooded street after during the monssoon rain in Rawalpindi, Pakistan July 17, 2025. (Reuters/File)

DG PDMA Punjab Irfan Ali Kathia instructed all commissioners and deputy commissioners to remain “alert” and keep emergency control rooms staffed round the clock.

The agency warned of “urban flooding in low-lying areas of Rawalpindi, Gujranwala, Lahore and Sialkot” and possible flash floods in rivers and hill torrents of Dera Ghazi Khan from Aug. 18 to 21.

Landslides are also possible in Murree and Galiyat, while heavy winds could damage weak structures, rooftops and power infrastructure.

Hydrological data from Aug. 13 showed low flood levels in the Indus River at Kalabagh, Tarbela and Chashma, and in the Chenab at Khanki, with normal flows in the Jhelum, Ravi and Sutlej. Mangla Dam was at 65 percent capacity and Tarbela at 96 percent, while Indian reservoirs were around 70 percent full.

Since late June, monsoon-related incidents in Punjab have killed 164 people, injured 582, damaged 216 homes and killed 121 livestock, according to PDMA records.

The agency urged the public to follow safety instructions, keep children away from rivers and canals, and avoid crossing flowing water during floods.

People remove the wreckage of a van from a drainage after heavy monsoon rains in Islamabad on July 21, 2025. (AFP/File)

Pakistan’s June–September monsoon brings around 70 percent of annual rainfall, but climate change is making seasonal patterns more erratic and intense. Scientists say warmer air holds more moisture, increasing the risk of extreme downpours, while glacial melt and poor drainage heighten flood vulnerability.

In 2022, record monsoon rains and glacial floods inundated a third of the country, killing at least 1,700 people and causing damage estimated at more than $30 billion.

Last week, a study by World Weather Attribution, a group of international scientists who study global warming’s role in extreme weather, found that rainfall from June 24 to July 23 in Pakistan was 10 percent to 15 percent heavier because of climate change, leading to many building collapses in urban and rural Pakistan.